þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] |
Commission File Number | Registrant; State of Incorporation; Address and Telephone Number | IRS Employer Identification No. | ||
1-34434 | MSG NETWORKS INC. | 27-0624498 |
Securities registered pursuant to Section 12(b) of the Act: Title of each class: | Name of each Exchange on which Registered: | |
Class A Common Stock | New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Emerging growth company o |
Page | |
• | Class A Common Stock, which is entitled to one vote per share and is entitled collectively to elect 25% of our Board of Directors. |
• | Class B Common Stock, which is entitled to ten votes per share and is entitled collectively to elect the remaining 75% of our Board of Directors. |
• | the authorization or issuance of any additional shares of Class B Common Stock, and |
• | any amendment, alteration or repeal of any of the provisions of our certificate of incorporation that adversely affects the powers, preferences or rights of the Class B Common Stock. |
Base Period 6/30/13 | 06/30/14 | 06/30/15 | 06/30/16 | 06/30/17 | 06/30/18 | ||||||||||||||||||
MSG Networks Inc. | $ | 100.00 | $ | 105.40 | $ | 140.91 | $ | 96.77 | $ | 141.63 | $ | 151.09 | |||||||||||
Russell 3000 Index | 100.00 | 125.22 | 134.35 | 137.23 | 162.63 | 186.66 | |||||||||||||||||
S&P Composite 1500 Media Index | 100.00 | 129.07 | 145.56 | 139.62 | 162.88 | 162.84 | |||||||||||||||||
Bloomberg Global Entertainment Media Competitive Peer Index (a) | 100.00 | 132.23 | 149.26 | 120.63 | 134.95 | N/A |
Year Ended June 30, 2018 | High | Low | |||||
For the Quarter ended June 30, 2018 | $ | 24.60 | $ | 17.95 | |||
For the Quarter ended March 31, 2018 | 26.30 | 20.35 | |||||
For the Quarter ended December 31, 2017 | 22.08 | 16.15 | |||||
For the Quarter ended September 30, 2017 | 23.45 | 19.75 | |||||
Year Ended June 30, 2017 | |||||||
For the Quarter ended June 30, 2017 | $ | 25.30 | $ | 20.80 | |||
For the Quarter ended March 31, 2017 | 23.95 | 21.15 | |||||
For the Quarter ended December 31, 2016 | 22.85 | 18.20 | |||||
For the Quarter ended September 30, 2016 | 18.98 | 14.73 |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share (b) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (b) | ||||||||||
April 1, 2018 - April 30, 2018 | — | $ | — | — | $ | — | ||||||||
May 1, 2018 - May 31, 2018 | 455 | $ | 19.27 | 455 | $ | 141,221 | ||||||||
June 1, 2018 - June 30, 2018 | 258 | $ | 19.62 | 258 | $ | 136,165 | ||||||||
713 | $ | 19.39 | 713 |
For Years Ended June 30, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Operating Data: | |||||||||||||||||||
Revenues | $ | 696,651 | $ | 675,352 | $ | 658,198 | $ | 631,010 | $ | 714,514 | |||||||||
Direct operating expenses | 291,082 | 271,119 | 267,233 | 215,783 | 258,351 | ||||||||||||||
Selling, general and administrative expenses | 83,073 | 79,040 | 100,752 | 152,706 | 197,763 | ||||||||||||||
Depreciation and amortization (including impairments) | 9,338 | 10,296 | 14,583 | 17,641 | 20,810 | ||||||||||||||
Gain on sale of Fuse | — | — | — | (186,178 | ) | — | |||||||||||||
Operating income | 313,158 | 314,897 | 275,630 | 431,058 | 237,590 | ||||||||||||||
Other income (expense): | |||||||||||||||||||
Interest income | 4,388 | 2,782 | 2,368 | 2,068 | 1,918 | ||||||||||||||
Interest expense | (43,312 | ) | (40,108 | ) | (31,683 | ) | (4,040 | ) | (5,877 | ) | |||||||||
Other components of net periodic benefit cost | (1,710 | ) | (1,633 | ) | (2,044 | ) | (3,747 | ) | (2,797 | ) | |||||||||
Miscellaneous expense | — | — | (2 | ) | (4 | ) | (1,441 | ) | |||||||||||
(40,634 | ) | (38,959 | ) | (31,361 | ) | (5,723 | ) | (8,197 | ) | ||||||||||
Income from continuing operations before income taxes | 272,524 | 275,938 | 244,269 | 425,335 | 229,393 | ||||||||||||||
Income tax benefit (expense) | 16,338 | (108,476 | ) | (80,971 | ) | (176,905 | ) | (86,534 | ) | ||||||||||
Income from continuing operations | 288,862 | 167,462 | 163,298 | 248,430 | 142,859 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes | — | (120 | ) | (155,664 | ) | 6,271 | (27,791 | ) | |||||||||||
Net income | $ | 288,862 | $ | 167,342 | $ | 7,634 | $ | 254,701 | $ | 115,068 | |||||||||
Earnings (loss) per share: | |||||||||||||||||||
Basic | |||||||||||||||||||
Income from continuing operations | $ | 3.83 | $ | 2.23 | $ | 2.17 | $ | 3.22 | $ | 1.85 | |||||||||
Income (loss) from discontinued operations | — | — | (2.07 | ) | 0.08 | (0.36 | ) | ||||||||||||
Net income | 3.83 | 2.22 | 0.10 | 3.30 | 1.49 | ||||||||||||||
Diluted | |||||||||||||||||||
Income from continuing operations | $ | 3.81 | $ | 2.22 | $ | 2.16 | $ | 3.20 | $ | 1.83 | |||||||||
Income (loss) from discontinued operations | — | — | (2.06 | ) | 0.08 | (0.36 | ) | ||||||||||||
Net income | 3.81 | 2.21 | 0.10 | 3.28 | 1.47 | ||||||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||
Basic | 75,381 | 75,213 | 75,152 | 77,138 | 77,142 | ||||||||||||||
Diluted | 75,820 | 75,560 | 75,527 | 77,687 | 78,167 | ||||||||||||||
Balance Sheet Data: | |||||||||||||||||||
Total assets | $ | 849,612 | $ | 805,044 | $ | 806,542 | $ | 3,019,829 | $ | 2,925,961 | |||||||||
Total long-term debt | 1,190,431 | 1,312,845 | 1,477,759 | — | — | ||||||||||||||
Capital lease obligations | — | — | — | — | 1,967 | ||||||||||||||
Total stockholders’ equity (deficiency) | (657,742 | ) | (944,207 | ) | (1,119,958 | ) | 1,723,522 | 1,604,444 |
• | the demand for our programming among cable, satellite, telephone and other platforms (“Distributors”) and the subscribers thereto, and our ability to enter into and renew affiliation agreements with Distributors, as well as the impact of consolidation among Distributors; |
• | the level of our revenues, which depends in part on the popularity and competitiveness of the sports teams whose games are broadcast on our networks and the popularity of other content aired on our networks; |
• | the ability of our Distributors to maintain subscriber levels; |
• | the impact of subscribers selecting Distributors’ packages that do not include our networks or Distributors that do not carry our networks at all; |
• | the security of our program signal and electronic data; |
• | general economic conditions especially in the New York City metropolitan area where we conduct the majority of our operations; |
• | the demand for advertising and sponsorship arrangements and viewer ratings for our networks; |
• | competition, for example, from other regional sports networks; |
• | the relocation or insolvency of professional sports teams with which we have a media rights agreement; |
• | our ability to maintain, obtain or produce content, together with the cost of such content; |
• | our ability to renew or replace our media rights agreements with professional sports teams; |
• | the acquisition or disposition of assets and/or the impact of, and our ability to successfully pursue, acquisitions or other strategic transactions, and the operating and financial performance thereof (including those that we do not control); |
• | the costs associated with, and the outcome of, litigation and other proceedings to the extent uninsured; |
• | the impact of governmental regulations or laws and changes in such regulations or laws; |
• | the impact of sports league rules, regulations and/or agreements and changes thereto; |
• | our dependence on The Madison Square Garden Company (“MSG”), AMC Networks Inc., and other third-party providers for the provision of certain services; |
• | cybersecurity and similar risks which could result in the disclosure of confidential information, disruption of our business or damage to our brands and reputation; |
• | our substantial debt and high leverage; |
• | any reduction in our access to capital and credit markets or significant increases in costs to borrow; |
• | financial community perceptions of our business, operations, financial condition and the industry in which we operate; |
• | the impact of the Tax Cuts and Jobs Act on our income tax benefit (expense) and deferred tax liabilities; |
• | the tax-free treatment of the Distribution; and |
• | the factors described under “Item 1A. Risk Factors” included in this Annual Report on Form 10-K. |
Years Ended June 30, | Increase (Decrease) in Net Income | ||||||||||||||||
2018 | 2017 | ||||||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||||||
Revenues | $ | 696,651 | 100 | % | $ | 675,352 | 100 | % | $ | 21,299 | |||||||
Direct operating expenses | 291,082 | 42 | % | 271,119 | 40 | % | (19,963 | ) | |||||||||
Selling, general and administrative expenses | 83,073 | 12 | % | 79,040 | 12 | % | (4,033 | ) | |||||||||
Depreciation and amortization | 9,338 | 1 | % | 10,296 | 2 | % | 958 | ||||||||||
Operating income | 313,158 | 45 | % | 314,897 | 47 | % | (1,739 | ) | |||||||||
Other income (expense): | |||||||||||||||||
Interest income | 4,388 | 1 | % | 2,782 | NM | 1,606 | |||||||||||
Interest expense | (43,312 | ) | (6 | )% | (40,108 | ) | (6 | )% | (3,204 | ) | |||||||
Other components of net periodic benefit cost | (1,710 | ) | NM | (1,633 | ) | NM | (77 | ) | |||||||||
(40,634 | ) | (6 | )% | (38,959 | ) | (6 | )% | (1,675 | ) | ||||||||
Income from continuing operations before income taxes | 272,524 | 39 | % | 275,938 | 41 | % | (3,414 | ) | |||||||||
Income tax benefit (expense) | 16,338 | 2 | % | (108,476 | ) | (16 | )% | 124,814 | |||||||||
Income from continuing operations | 288,862 | 41 | % | 167,462 | 25 | % | 121,400 | ||||||||||
Loss from discontinued operations, net of taxes | — | NM | (120 | ) | NM | 120 | |||||||||||
Net income | $ | 288,862 | 41 | % | $ | 167,342 | 25 | % | $ | 121,520 |
Increase in affiliation fee revenue | $ | 22,269 | |
Decrease in advertising revenue | (2,801 | ) | |
Other net increases | 1,831 | ||
$ | 21,299 |
Years Ended June 30, | Increase (Decrease) in Adjusted Operating Income | ||||||||||
2018 | 2017 | ||||||||||
Operating income | $ | 313,158 | $ | 314,897 | $ | (1,739 | ) | ||||
Share-based compensation | 13,979 | 9,931 | 4,048 | ||||||||
Depreciation and amortization | 9,338 | 10,296 | (958 | ) | |||||||
Adjusted operating income | $ | 336,475 | $ | 335,124 | $ | 1,351 |
Years Ended June 30, | Increase (Decrease) in Net Income | ||||||||||||||||
2017 | 2016 | ||||||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||||||
Revenues | $ | 675,352 | 100 | % | $ | 658,198 | 100 | % | $ | 17,154 | |||||||
Direct operating expenses | 271,119 | 40 | % | 267,233 | 41 | % | (3,886 | ) | |||||||||
Selling, general and administrative expenses | 79,040 | 12 | % | 100,752 | 15 | % | 21,712 | ||||||||||
Depreciation and amortization | 10,296 | 2 | % | 14,583 | 2 | % | 4,287 | ||||||||||
Operating income | 314,897 | 47 | % | 275,630 | 42 | % | 39,267 | ||||||||||
Other income (expense): | |||||||||||||||||
Interest income | 2,782 | NM | 2,368 | NM | 414 | ||||||||||||
Interest expense | (40,108 | ) | (6 | )% | (31,683 | ) | (5 | )% | (8,425 | ) | |||||||
Other components of net periodic benefit cost | (1,633 | ) | NM | (2,044 | ) | NM | 411 | ||||||||||
Miscellaneous expense | — | NM | (2 | ) | NM | 2 | |||||||||||
(38,959 | ) | (6 | )% | (31,361 | ) | (5 | )% | (7,598 | ) | ||||||||
Income from continuing operations before income taxes | 275,938 | 41 | % | 244,269 | 37 | % | 31,669 | ||||||||||
Income tax expense | (108,476 | ) | (16 | )% | (80,971 | ) | (12 | )% | (27,505 | ) | |||||||
Income from continuing operations | 167,462 | 25 | % | 163,298 | 25 | % | 4,164 | ||||||||||
Loss from discontinued operations, net of taxes | (120 | ) | NM | (155,664 | ) | (24 | )% | 155,544 | |||||||||
Net income | $ | 167,342 | 25 | % | $ | 7,634 | 1 | % | $ | 159,708 |
Increase in affiliation fee revenue | $ | 16,745 | |
Increase in advertising revenue | 542 | ||
Other net decreases | (133 | ) | |
$ | 17,154 |
Years Ended June 30, | Increase (Decrease) in Adjusted Operating Income | ||||||||||
2017 | 2016 | ||||||||||
Operating income | $ | 314,897 | $ | 275,630 | $ | 39,267 | |||||
Share-based compensation | 9,931 | 9,266 | 665 | ||||||||
Depreciation and amortization | 10,296 | 14,583 | (4,287 | ) | |||||||
Adjusted operating income | $ | 335,124 | $ | 299,479 | $ | 35,645 |
Payments Due by Period | |||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | More Than 5 Years | |||||||||||||||
Contractual obligations (a) | $ | 4,346,011 | $ | 247,289 | $ | 508,581 | $ | 505,160 | $ | 3,084,981 | |||||||||
Operating lease obligations (b) | 25,447 | 5,749 | 9,980 | 6,974 | 2,744 | ||||||||||||||
Debt repayment (c) | 1,196,250 | 75,000 | 1,121,250 | — | — | ||||||||||||||
Total | $ | 5,567,708 | $ | 328,038 | $ | 1,639,811 | $ | 512,134 | $ | 3,087,725 |
Goodwill | $ | 424,508 | |
Amortizable intangible assets, net | 37,203 | ||
Property and equipment, net | 10,029 | ||
$ | 471,740 |
• | Macroeconomic conditions; |
• | Industry and market considerations; |
• | Cost factors; |
• | Overall financial performance; |
• | Other relevant company-specific factors such as changes in management, strategy or customers; and |
• | Relevant specific events such as changes in the carrying amount of net assets. |
Net Periodic Benefit Cost | Benefit Obligation | ||||
Healthcare cost trend rate assumed for next year | 7.25 | % | 7.00 | % | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00 | % | 5.00 | % | |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 |
Increase (Decrease) in Total of Service and Interest Cost Components | Increase (Decrease) in Benefit Obligation | ||||||
One percentage point increase | $ | 28 | $ | 482 | |||
One percentage point decrease | (24 | ) | (415 | ) |
Page No. | ||||
The following documents are filed as part of this report: | ||||
1. | The financial statements as indicated in the index set forth on page | |||
2. | Financial statement schedule: | |||
Schedule supporting consolidated financial statements | ||||
3. | Exhibits: |
EXHIBIT NO. | DESCRIPTION | |
2.1 | ||
3.1 | ||
3.1.A | ||
3.1.B | ||
3.2 | ||
4.1 | ||
4.2 | ||
4.3 | ||
4.4 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
10.6 | ||
10.7 | ||
10.8 | ||
10.9 | ||
10.10 | ||
10.11 | ||
10.12 |
EXHIBIT NO. | DESCRIPTION | |
10.13 | ||
10.14 | ||
10.15 | ||
10.16 | ||
10.17 | ||
10.18 | ||
10.19 | ||
10.20 | ||
10.21 | ||
10.22 | ||
10.23 | ||
10.24 | ||
10.25 | ||
10.26 | ||
10.27 | ||
21.1 | ||
23.1 | ||
24.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 |
EXHIBIT NO. | DESCRIPTION | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase. |
+ | Confidential treatment has been granted with respect to certain portions of this exhibit. Omitted portions have been filed separately with the SEC. |
† | This exhibit is a management contract or a compensatory plan or arrangement. |
Balance at Beginning of Period | (Additions) Deductions Charged to Costs and Expenses | (Additions) Deductions Charged to Other Accounts | Deductions (a) | Balance at End of Period | |||||||||||||||
Year Ended June 30, 2018 Allowance for doubtful accounts | $ | (594 | ) | $ | (17 | ) | $ | — | $ | 102 | $ | (509 | ) | ||||||
Year Ended June 30, 2017 Allowance for doubtful accounts | $ | (838 | ) | $ | 242 | $ | — | $ | 2 | $ | (594 | ) | |||||||
Year Ended June 30, 2016 Allowance for doubtful accounts | $ | (273 | ) | $ | (791 | ) | $ | (52 | ) | $ | 278 | $ | (838 | ) |
MSG Networks Inc. | ||
By: | /s/ BRET RICHTER | |
Name: | Bret Richter | |
Title: | Executive Vice President, Chief Financial Officer and Treasurer | |
Name | Title | Date | ||
/s/ ANDREA GREENBERG | President & Chief Executive Officer (Principal Executive Officer) | August 15, 2018 | ||
Andrea Greenberg | ||||
/s/ BRET RICHTER | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | August 15, 2018 | ||
Bret Richter | ||||
/s/ DAWN DARINO-GORKSI | Senior Vice President, Controller and Principal Accounting Officer | August 15, 2018 | ||
Dawn Darino-Gorski | ||||
/s/ JAMES L. DOLAN | Executive Chairman (Director) | August 15, 2018 | ||
James L. Dolan | ||||
/s/ WILLIAM J. BELL | Director | August 15, 2018 | ||
William J. Bell | ||||
/s/ CHARLES F. DOLAN | Director | August 15, 2018 | ||
Charles F. Dolan | ||||
/s/ KRISTIN A. DOLAN | Director | August 15, 2018 | ||
Kristin A. Dolan | ||||
/s/ PAUL J. DOLAN | Director | August 15, 2018 | ||
Paul J. Dolan | ||||
/s/ QUENTIN F. DOLAN | Director | August 15, 2018 | ||
Quentin F. Dolan |
Name | Title | Date | ||
/s/ THOMAS C. DOLAN | Director | August 15, 2018 | ||
Thomas C. Dolan | ||||
/s/ JOSEPH J. LHOTA | Director | August 15, 2018 | ||
Joseph J. Lhota | ||||
/s/ JOEL M. LITVIN | Director | August 15, 2018 | ||
Joel M. Litvin | ||||
/s/ HANK J. RATNER | Director | August 15, 2018 | ||
Hank J. Ratner | ||||
/s/ BRIAN G. SWEENEY | Director | August 15, 2018 | ||
Brian G. Sweeney | ||||
/s/ JOHN L. SYKES | Director | August 15, 2018 | ||
John L. Sykes |
June 30, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 205,343 | $ | 141,087 | |||
Accounts receivable, net | 110,657 | 105,030 | |||||
Related party receivables, net | 12,100 | 17,153 | |||||
Prepaid income taxes | 1,134 | 14,322 | |||||
Prepaid expenses | 4,489 | 6,468 | |||||
Other current assets | 4,719 | 2,343 | |||||
Total current assets | 338,442 | 286,403 | |||||
Property and equipment, net | 10,029 | 11,828 | |||||
Amortizable intangible assets, net | 37,203 | 40,663 | |||||
Goodwill | 424,508 | 424,508 | |||||
Other assets | 39,430 | 41,642 | |||||
Total assets | $ | 849,612 | $ | 805,044 | |||
LIABILITIES AND STOCKHOLDERS' DEFICIENCY | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 1,460 | $ | 1,241 | |||
Related party payables | 785 | 2,963 | |||||
Current portion of long-term debt | 72,414 | 72,414 | |||||
Income taxes payable | 8,460 | 11,483 | |||||
Accrued liabilities: | |||||||
Employee related costs | 15,342 | 14,238 | |||||
Other accrued liabilities | 8,129 | 10,050 | |||||
Deferred revenue | 4,626 | 5,071 | |||||
Total current liabilities | 111,216 | 117,460 | |||||
Long-term debt, net of current portion | 1,118,017 | 1,240,431 | |||||
Defined benefit and other postretirement obligations | 28,170 | 29,979 | |||||
Other employee related costs | 4,560 | 3,930 | |||||
Other liabilities | 3,974 | 5,597 | |||||
Deferred tax liability | 241,417 | 351,854 | |||||
Total liabilities | 1,507,354 | 1,749,251 | |||||
Commitments and contingencies (see Notes 8, 9 and 10) | |||||||
Stockholders' Deficiency: | |||||||
Class A Common Stock, par value $0.01, 360,000 shares authorized; 61,017 and 61,497 shares outstanding as of June 30, 2018 and 2017, respectively | 643 | 643 | |||||
Class B Common Stock, par value $0.01, 90,000 shares authorized; 13,589 shares outstanding as of June 30, 2018 and 2017 | 136 | 136 | |||||
Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding | — | — | |||||
Additional paid-in capital | 4,067 | 6,909 | |||||
Treasury stock, at cost, 3,242 and 2,762 shares as of June 30, 2018 and 2017, respectively | (195,881 | ) | (198,800 | ) | |||
Accumulated deficit | (460,007 | ) | (746,539 | ) | |||
Accumulated other comprehensive loss | (6,700 | ) | (6,556 | ) | |||
Total stockholders' deficiency | (657,742 | ) | (944,207 | ) | |||
Total liabilities and stockholders' deficiency | $ | 849,612 | $ | 805,044 |
Years Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Revenues (including related party revenues of $230, $0 and $162,269, for the years ended June 30, 2018, 2017, and 2016, respectively) | $ | 696,651 | $ | 675,352 | $ | 658,198 | |||||
Direct operating expenses (including related party expenses of $148,580, $142,080 and $137,857, for the years ended June 30, 2018, 2017, and 2016, respectively) | 291,082 | 271,119 | 267,233 | ||||||||
Selling, general and administrative expenses (including related party expenses of $22,240, $21,732 and $28,603, for the years ended June 30, 2018, 2017, and 2016, respectively) | 83,073 | 79,040 | 100,752 | ||||||||
Depreciation and amortization | 9,338 | 10,296 | 14,583 | ||||||||
Operating income | 313,158 | 314,897 | 275,630 | ||||||||
Other income (expense): | |||||||||||
Interest income | 4,388 | 2,782 | 2,368 | ||||||||
Interest expense | (43,312 | ) | (40,108 | ) | (31,683 | ) | |||||
Other components of net periodic benefit cost | (1,710 | ) | (1,633 | ) | (2,044 | ) | |||||
Miscellaneous expense | — | — | (2 | ) | |||||||
(40,634 | ) | (38,959 | ) | (31,361 | ) | ||||||
Income from continuing operations before income taxes | 272,524 | 275,938 | 244,269 | ||||||||
Income tax benefit (expense) | 16,338 | (108,476 | ) | (80,971 | ) | ||||||
Income from continuing operations | $ | 288,862 | $ | 167,462 | $ | 163,298 | |||||
Loss from discontinued operations, net of taxes | — | (120 | ) | (155,664 | ) | ||||||
Net income | $ | 288,862 | $ | 167,342 | $ | 7,634 | |||||
Earnings (loss) per share: | |||||||||||
Basic | |||||||||||
Income from continuing operations | $ | 3.83 | $ | 2.23 | $ | 2.17 | |||||
Loss from discontinued operations | — | — | (2.07 | ) | |||||||
Net income | 3.83 | 2.22 | 0.10 | ||||||||
Diluted | |||||||||||
Income from continuing operations | $ | 3.81 | $ | 2.22 | $ | 2.16 | |||||
Loss from discontinued operations | — | — | (2.06 | ) | |||||||
Net income | 3.81 | 2.21 | 0.10 | ||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | 75,381 | 75,213 | 75,152 | ||||||||
Diluted | 75,820 | 75,560 | 75,527 |
Years Ended June 30, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Net income | $ | 288,862 | $ | 167,342 | $ | 7,634 | ||||||
Other comprehensive income (loss), before income taxes: | ||||||||||||
Pension plans and postretirement plan: | ||||||||||||
Net unamortized gains (losses) arising during the period | $ | 1,163 | $ | 1,144 | $ | (3,910 | ) | |||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||
Amortization of net actuarial loss included in net periodic benefit cost | 656 | 724 | 721 | |||||||||
Amortization of net prior service credit included in net periodic benefit cost | (13 | ) | (24 | ) | (57 | ) | ||||||
Settlement gain | — | (71 | ) | — | ||||||||
Other comprehensive income (loss), before income taxes | 1,806 | 1,773 | (3,246 | ) | ||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (559 | ) | (740 | ) | 823 | |||||||
Other comprehensive income (loss) | 1,247 | 1,033 | (2,423 | ) | ||||||||
Comprehensive income | $ | 290,109 | $ | 168,375 | $ | 5,211 |
Years Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Cash flows from operating activities from continuing operations: | |||||||||||
Net income | $ | 288,862 | $ | 167,342 | $ | 7,634 | |||||
Loss from discontinued operations, net of taxes | — | 120 | 155,664 | ||||||||
Income from continuing operations | 288,862 | 167,462 | 163,298 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: | |||||||||||
Depreciation and amortization | 9,338 | 10,296 | 14,583 | ||||||||
Amortization of deferred financing costs | 3,003 | 3,004 | 3,234 | ||||||||
Share-based compensation expense | 13,979 | 9,931 | 9,266 | ||||||||
Excess tax benefit on share-based awards | — | — | (4,869 | ) | |||||||
Provision for doubtful accounts | 17 | (242 | ) | 791 | |||||||
Change in assets and liabilities: | |||||||||||
Accounts receivable, net | (5,391 | ) | (3,361 | ) | (16,608 | ) | |||||
Related party receivables, net | 4,800 | (1,661 | ) | 11,832 | |||||||
Prepaid expenses and other assets | 1,398 | 8,015 | 8,403 | ||||||||
Accounts payable | 219 | (802 | ) | (9,316 | ) | ||||||
Related party payables, including payable to MSG | (2,171 | ) | (3,154 | ) | 3,796 | ||||||
Prepaid/payable for income taxes | 10,165 | 16,883 | 27,132 | ||||||||
Accrued and other liabilities | (2,168 | ) | (2,694 | ) | (12,261 | ) | |||||
Deferred revenue | (445 | ) | (1,072 | ) | 1,172 | ||||||
Deferred income taxes | (110,996 | ) | (5,447 | ) | (18,605 | ) | |||||
Net cash provided by operating activities from continuing operations | 210,610 | 197,158 | 181,848 | ||||||||
Cash flows from investing activities from continuing operations: | |||||||||||
Capital expenditures | (3,724 | ) | (4,894 | ) | (3,323 | ) | |||||
Net cash used in investing activities from continuing operations | (3,724 | ) | (4,894 | ) | (3,323 | ) | |||||
Cash flows from financing activities from continuing operations: | |||||||||||
Proceeds from Term Loan Facility (see Note 7) | — | — | 1,550,000 | ||||||||
Principal repayments on Term Loan Facility (see Note 7) | (125,000 | ) | (167,500 | ) | (61,250 | ) | |||||
Cash distributed with MSG | — | — | (1,467,093 | ) | |||||||
Payments for financing costs | — | — | (9,860 | ) | |||||||
Proceeds from stock option exercises | — | 2 | 1,010 | ||||||||
Repurchases of common stock | (13,850 | ) | — | (100,027 | ) | ||||||
Taxes paid in lieu of shares issued for share-based compensation | (3,780 | ) | (2,271 | ) | (11,190 | ) | |||||
Excess tax benefit on share-based awards | — | — | 4,869 | ||||||||
Net cash used in financing activities from continuing operations | (142,630 | ) | (169,769 | ) | (93,541 | ) | |||||
Net cash provided by continuing operations | 64,256 | 22,495 | 84,984 | ||||||||
Cash flows of discontinued operations: | |||||||||||
Net cash used in operating activities | — | (976 | ) | (113,691 | ) | ||||||
Net cash used in investing activities | — | — | (70,410 | ) | |||||||
Net cash used in financing activities | — | — | — | ||||||||
Net cash used in discontinued operations | — | (976 | ) | (184,101 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 64,256 | 21,519 | (99,117 | ) | |||||||
Cash and cash equivalents at beginning of period, including cash in both continuing operations and discontinued operations | 141,087 | 119,568 | 218,685 | ||||||||
Cash and cash equivalents at end of period | $ | 205,343 | $ | 141,087 | $ | 119,568 |
Common Stock Issued | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||
Balance as of June 30, 2015 | $ | 779 | $ | 1,084,002 | $ | (143,250 | ) | $ | 807,563 | $ | (25,572 | ) | $ | 1,723,522 | |||||||||
Net income | — | — | — | 7,634 | — | 7,634 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (2,423 | ) | (2,423 | ) | |||||||||||||||
Comprehensive income | 5,211 | ||||||||||||||||||||||
Exercise of stock options | — | (4,770 | ) | 10,345 | (4,565 | ) | — | 1,010 | |||||||||||||||
Share-based compensation expense | — | 10,120 | — | — | — | 10,120 | |||||||||||||||||
Tax withholding associated with shares issued for share-based compensation | — | (11,190 | ) | — | — | — | (11,190 | ) | |||||||||||||||
Shares issued upon distribution of Restricted Stock Units | — | (18,663 | ) | 25,136 | (6,473 | ) | — | — | |||||||||||||||
Repurchases of Class A Common Stock | — | — | (100,027 | ) | — | — | (100,027 | ) | |||||||||||||||
Excess tax benefit on share-based awards | — | 8,720 | — | (3,851 | ) | — | 4,869 | ||||||||||||||||
Distribution of The Madison Square Garden Company | — | (1,067,968 | ) | — | (1,705,189 | ) | 20,406 | (2,752,751 | ) | ||||||||||||||
Adjustments related to the transfer of certain liabilities as a result of the Distribution | — | (251 | ) | — | (471 | ) | — | (722 | ) | ||||||||||||||
Balance as of June 30, 2016 | $ | 779 | $ | — | $ | (207,796 | ) | $ | (905,352 | ) | $ | (7,589 | ) | $ | (1,119,958 | ) | |||||||
Net income | — | — | — | 167,342 | — | 167,342 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 1,033 | 1,033 | |||||||||||||||||
Comprehensive income | 168,375 | ||||||||||||||||||||||
Exercise of stock options | — | (57 | ) | 59 | — | — | 2 | ||||||||||||||||
Share-based compensation expense | — | 9,931 | — | — | — | 9,931 | |||||||||||||||||
Tax withholding associated with shares issued for share-based compensation | — | (1,921 | ) | (423 | ) | (55 | ) | — | (2,399 | ) | |||||||||||||
Shares issued upon distribution of Restricted Stock Units | — | (1,044 | ) | 9,360 | (8,316 | ) | — | — | |||||||||||||||
Adjustments related to the transfer of certain liabilities as a result of the Distribution | — | — | — | (158 | ) | — | (158 | ) | |||||||||||||||
Balance as of June 30, 2017 | $ | 779 | $ | 6,909 | $ | (198,800 | ) | $ | (746,539 | ) | $ | (6,556 | ) | $ | (944,207 | ) | |||||||
Net income | — | — | — | 288,862 | — | 288,862 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 1,247 | 1,247 | |||||||||||||||||
Comprehensive income | 290,109 | ||||||||||||||||||||||
Share-based compensation expense | — | 13,979 | — | — | — | 13,979 | |||||||||||||||||
Tax withholding associated with shares issued for share-based compensation | — | (3,773 | ) | — | — | — | (3,773 | ) | |||||||||||||||
Shares issued upon distribution of Restricted Stock Units | — | (13,048 | ) | 16,769 | (3,721 | ) | — | — | |||||||||||||||
Repurchases of Class A Common Stock | — | — | (13,850 | ) | — | — | (13,850 | ) | |||||||||||||||
Reclassification of stranded tax effects | — | — | — | 1,391 | (1,391 | ) | — | ||||||||||||||||
Balance as of June 30, 2018 | $ | 779 | $ | 4,067 | $ | (195,881 | ) | $ | (460,007 | ) | $ | (6,700 | ) | $ | (657,742 | ) |
Years Ended June 30, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
Revenues (a) | $ | — | $ | — | $ | 150,381 | ||||||
Direct operating expenses | — | — | 71,320 | |||||||||
Selling, general and administrative expenses | — | 120 | 58,283 | |||||||||
Depreciation and amortization | — | — | 23,772 | |||||||||
Operating loss | — | (120 | ) | (2,994 | ) | |||||||
Equity in earnings of equity-method investments | — | — | 2,679 | |||||||||
Interest income | — | — | 635 | |||||||||
Interest expense | — | — | (540 | ) | ||||||||
Loss from discontinued operations before income taxes | — | (120 | ) | (220 | ) | |||||||
Income tax expense | — | — | (155,444 | ) | ||||||||
Loss from discontinued operations, net of taxes | $ | — | $ | (120 | ) | $ | (155,664 | ) |
(a) | Includes rights fees for New York Knicks (“Knicks”) and New York Rangers (“Rangers”) programming prior to the Distribution Date, which were previously eliminated in consolidation. However, the pre-Distribution Date amounts are now presented as revenues in the loss from discontinued operations line with the offsetting expense in direct operating expenses, within continuing operations, in the accompanying consolidated statement of operations for the year ended June 30, 2016. |
Years Ended June 30, | ||||||||
2018 | 2017 | 2016 | ||||||
Weighted-average number of shares for basic EPS | 75,381 | 75,213 | 75,152 | |||||
Dilutive effect of shares issuable under share-based compensation plans | 439 | 347 | 375 | |||||
Weighted-average number of shares for diluted EPS | 75,820 | 75,560 | 75,527 | |||||
Anti-dilutive shares | 519 | 162 | — |
June 30, | ||||||||
2018 | 2017 | |||||||
Affiliate relationships | $ | 83,044 | $ | 83,044 | ||||
Less accumulated amortization | (45,841 | ) | (42,381 | ) | ||||
$ | 37,203 | $ | 40,663 |
Fiscal year ending June 30, 2019 | $ | 3,460 | |
Fiscal year ending June 30, 2020 | 3,460 | ||
Fiscal year ending June 30, 2021 | 3,460 | ||
Fiscal year ending June 30, 2022 | 3,460 | ||
Fiscal year ending June 30, 2023 | 3,460 |
June 30, | Estimated | ||||||||
2018 | 2017 | Useful Lives | |||||||
Equipment | $ | 36,027 | $ | 40,918 | 2 to 10 years | ||||
Furniture and fixtures | 1,728 | 1,695 | 5 to 8 years | ||||||
Leasehold improvements | 19,297 | 19,285 | Shorter of term of lease or life of improvement | ||||||
Construction in progress | 727 | 565 | |||||||
57,779 | 62,463 | ||||||||
Less accumulated depreciation and amortization | (47,750 | ) | (50,635 | ) | |||||
$ | 10,029 | $ | 11,828 |
Fiscal year ending June 30, 2019 | 75,000 | |||
Fiscal year ending June 30, 2020 | 114,375 | |||
Fiscal year ending June 30, 2021 | 1,006,875 | |||
$ | 1,196,250 |
Term Loan Facility | Deferred Financing Costs | Net | ||||||||||
June 30, 2018 | ||||||||||||
Current portion of long-term debt | $ | 75,000 | $ | (2,586 | ) | $ | 72,414 | |||||
Long-term debt, net of current portion | 1,121,250 | (3,233 | ) | 1,118,017 | ||||||||
Total | $ | 1,196,250 | $ | (5,819 | ) | $ | 1,190,431 | |||||
June 30, 2017 | ||||||||||||
Current portion of long-term debt | $ | 75,000 | $ | (2,586 | ) | $ | 72,414 | |||||
Long-term debt, net of current portion | 1,246,250 | (5,819 | ) | 1,240,431 | ||||||||
Total | $ | 1,321,250 | $ | (8,405 | ) | $ | 1,312,845 |
June 30, | ||||||||
2018 | 2017 | |||||||
Other current assets | $ | 417 | $ | 417 | ||||
Other assets | 521 | 938 |
Fiscal year ending June 30, 2019 | $ | 5,749 | |
Fiscal year ending June 30, 2020 | 5,695 | ||
Fiscal year ending June 30, 2021 | 4,285 | ||
Fiscal year ending June 30, 2022 | 3,681 | ||
Fiscal year ending June 30, 2023 | 3,293 | ||
Thereafter | 2,744 | ||
$ | 25,447 |
Fiscal year ending June 30, 2019 | $ | 247,289 | |
Fiscal year ending June 30, 2020 | 252,632 | ||
Fiscal year ending June 30, 2021 | 255,949 | ||
Fiscal year ending June 30, 2022 | 248,349 | ||
Fiscal year ending June 30, 2023 | 256,811 | ||
Thereafter | 3,084,981 | ||
$ | 4,346,011 |
• | Level I — Quoted prices for identical instruments in active markets. |
• | Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
• | Level III — Instruments whose significant value drivers are unobservable. |
Level I | Level II | Level III | Total | ||||||||||||
June 30, 2018 | |||||||||||||||
Assets: | |||||||||||||||
Money market accounts | $ | 20,398 | $ | — | $ | — | $ | 20,398 | |||||||
Time deposits | 184,945 | — | — | 184,945 | |||||||||||
Total assets measured at fair value | $ | 205,343 | $ | — | $ | — | $ | 205,343 | |||||||
June 30, 2017 | |||||||||||||||
Assets: | |||||||||||||||
Money market accounts | $ | 34,128 | $ | — | $ | — | $ | 34,128 | |||||||
Time deposits | 106,482 | — | — | 106,482 | |||||||||||
Total assets measured at fair value | $ | 140,610 | $ | — | $ | — | $ | 140,610 |
Pension Plans | Postretirement Plan | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of period | $ | 42,990 | $ | 43,921 | $ | 3,623 | $ | 3,537 | |||||||
Service cost | 512 | 532 | 72 | 72 | |||||||||||
Interest cost | 1,432 | 1,328 | 140 | 100 | |||||||||||
Actuarial loss (gain) | (2,219 | ) | (1,567 | ) | 319 | (16 | ) | ||||||||
Net benefits paid | (1,336 | ) | (1,224 | ) | 15 | (70 | ) | ||||||||
Benefit obligation at end of period | 41,379 | 42,990 | 4,169 | 3,623 | |||||||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of period | 15,605 | 14,818 | — | — | |||||||||||
Actual return on plan assets | (235 | ) | (24 | ) | — | — | |||||||||
Employer contributions | 2,191 | 2,035 | — | — | |||||||||||
Net benefits paid | (1,336 | ) | (1,224 | ) | — | — | |||||||||
Fair value of plan assets at end of period | 16,225 | 15,605 | — | — | |||||||||||
Funded status at end of period | $ | (25,154 | ) | $ | (27,385 | ) | $ | (4,169 | ) | $ | (3,623 | ) |
Pension Plans | Postretirement Plan | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Current liabilities (included in accrued employee related costs) | $ | (1,015 | ) | $ | (930 | ) | $ | (138 | ) | $ | (99 | ) | |||
Non-current liabilities (included in defined benefit and other postretirement obligations) | (24,139 | ) | (26,455 | ) | (4,031 | ) | (3,524 | ) | |||||||
$ | (25,154 | ) | $ | (27,385 | ) | $ | (4,169 | ) | $ | (3,623 | ) |
Pension Plans | Postretirement Plan | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Actuarial loss | $ | (8,956 | ) | $ | (11,034 | ) | $ | (472 | ) | $ | (214 | ) | |||
Prior service credit | — | — | 10 | 24 | |||||||||||
$ | (8,956 | ) | $ | (11,034 | ) | $ | (462 | ) | $ | (190 | ) |
Pension Plans | Postretirement Plan | ||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Service cost | $ | 512 | $ | 532 | $ | 1,962 | $ | 72 | $ | 72 | $ | 112 | |||||||||||
Other components of net periodic benefit cost: | |||||||||||||||||||||||
Interest cost | 1,432 | 1,328 | 3,418 | 140 | 100 | 206 | |||||||||||||||||
Expected return on plan assets | (505 | ) | (424 | ) | (1,233 | ) | — | — | — | ||||||||||||||
Recognized actuarial loss (a) | 596 | 700 | 721 | 60 | 24 | — | |||||||||||||||||
Amortization of unrecognized prior service cost (credit) (a) | — | — | 14 | (13 | ) | (24 | ) | (71 | ) | ||||||||||||||
Settlement gain (a) | — | (71 | ) | — | — | — | — | ||||||||||||||||
Net periodic benefit cost | $ | 2,035 | $ | 2,065 | $ | 4,882 | $ | 259 | $ | 172 | $ | 247 |
Pension Plans | Postretirement Plan | ||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Actuarial gain (loss) | $ | 1,482 | $ | 1,128 | $ | (3,483 | ) | $ | (319 | ) | $ | 16 | $ | (427 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss: | |||||||||||||||||||||||
Recognized actuarial loss | 596 | 700 | 721 | 60 | 24 | — | |||||||||||||||||
Recognized prior service cost (credit) | — | — | 14 | (13 | ) | (24 | ) | (71 | ) | ||||||||||||||
Settlement gain | — | (71 | ) | — | — | — | — | ||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | 2,078 | $ | 1,757 | $ | (2,748 | ) | $ | (272 | ) | $ | 16 | $ | (498 | ) |
Pension Plans | Postretirement Plan | ||||||||||
June 30, | June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Discount rate | 4.20 | % | 3.80 | % | 4.14 | % | 3.68 | % | |||
Rate of compensation increase | 2.00 | % | 2.00 | % | n/a | n/a | |||||
Healthcare cost trend rate assumed for next year | n/a | n/a | 7.00 | % | 7.25 | % | |||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | 5.00 | % | 5.00 | % | |||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | 2027 | 2027 |
Pension Plans | Postretirement Plan | ||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||
Discount rate | n/a | n/a | 4.47 | % | n/a | n/a | 4.15 | % | |||||||||
Discount rate - service cost | 3.92 | % | 3.73 | % | n/a | 3.90 | % | 3.63 | % | n/a | |||||||
Discount rate - interest cost | 3.35 | % | 3.03 | % | n/a | 3.25 | % | 2.84 | % | n/a | |||||||
Expected long-term rate of return on plan assets | 3.46 | % | 3.38 | % | 4.06 | % | n/a | n/a | n/a | ||||||||
Rate of compensation increase | 2.00 | % | 2.00 | % | 2.98 | % | n/a | n/a | n/a | ||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | n/a | 7.25 | % | 7.25 | % | 7.25 | % | ||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | n/a | n/a | n/a | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||
Year that the rate reaches the ultimate trend rate | n/a | n/a | n/a | 2027 | 2026 | 2021 |
Increase (Decrease) in Total of Service and Interest Cost Components for the | Increase (Decrease) in Benefit Obligation at | ||||||||||||||||||
Years Ended June 30, | June 30, | ||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | |||||||||||||||
One percentage point increase | $ | 28 | $ | 24 | $ | 63 | $ | 482 | $ | 448 | |||||||||
One percentage point decrease | (24 | ) | (21 | ) | (55 | ) | (415 | ) | (382 | ) |
June 30, | |||||
Asset Classes: (a) | 2018 | 2017 | |||
Fixed income securities | 74 | % | 79 | % | |
Cash equivalents | 26 | % | 21 | % | |
100 | % | 100 | % |
Fair Value of Plan Assets at June 30, 2018 | Level I | Level II | Level III | Total | |||||||||||
Fixed income securities: | |||||||||||||||
U.S. Treasury Securities | $ | 2,971 | $ | — | $ | — | $ | 2,971 | |||||||
U.S. corporate bonds | — | 7,729 | — | 7,729 | |||||||||||
Foreign issued corporate bonds | — | 1,311 | — | 1,311 | |||||||||||
Municipal bonds | — | 31 | — | 31 | |||||||||||
Money market accounts | 4,183 | — | — | 4,183 | |||||||||||
Total investments measured at fair value | $ | 7,154 | $ | 9,071 | $ | — | $ | 16,225 | |||||||
Fair Value of Plan Assets at June 30, 2017 | |||||||||||||||
Fixed income securities: | |||||||||||||||
U.S. Treasury Securities | $ | 3,605 | $ | — | $ | — | $ | 3,605 | |||||||
U.S. corporate bonds | — | 7,504 | — | 7,504 | |||||||||||
Foreign issued corporate bonds | — | 1,253 | — | 1,253 | |||||||||||
Municipal bonds | — | 21 | — | 21 | |||||||||||
Money market accounts | 3,222 | — | — | 3,222 | |||||||||||
Total investments measured at fair value | $ | 6,827 | $ | 8,778 | $ | — | $ | 15,605 |
Pension Plans | Postretirement Plan | ||||||
Fiscal year ending June 30, 2019 | $ | 1,690 | $ | 140 | |||
Fiscal year ending June 30, 2020 | 1,900 | 188 | |||||
Fiscal year ending June 30, 2021 | 2,170 | 242 | |||||
Fiscal year ending June 30, 2022 | 2,350 | 267 | |||||
Fiscal year ending June 30, 2023 | 2,440 | 315 | |||||
Fiscal years ending June 30, 2024 – 2028 | 13,550 | 1,640 |
Years Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Continuing operations | $ | 957 | $ | 828 | $ | 863 | |||||
Discontinued operations | — | — | 652 | ||||||||
Total Savings Plans Expense | $ | 957 | $ | 828 | $ | 1,515 |
• | Assets contributed to a multiemployer defined benefit pension plan by one employer may be used to provide benefits to employees of other participating employers. |
• | If a participating employer stops contributing to a multiemployer defined benefit pension plan, the unfunded obligations of the plan may be borne by the remaining participating employers. |
• | If the Company chooses to stop participating in some of these multiemployer defined benefit pension plans, the Company may be required to pay those plans an amount based on the Company’s proportion of the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer defined benefit pension plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. |
Number of | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||||
Nonperformance Based Vesting NQSOs | Performance Based Vesting NQSOs | ||||||||||||||
Balance as of June 30, 2017 | 535 | 534 | $ | 17.81 | 6.71 | 4,960 | |||||||||
Granted | 426 | 427 | 21.60 | ||||||||||||
Balance as of June 30, 2018 | 961 | 961 | $ | 19.49 | 6.14 | 8,567 | |||||||||
Exercisable as of June 30, 2018 | 178 | — | $ | 17.81 | 5.71 | $ | 1,094 |
Risk-free interest rate | 1.76 | % | |
Expected term | 5.25 years | ||
Expected volatility | 24.79 | % |
Number of | Weighted-Average Fair Value Per Share At Date of Grant | ||||||||
Nonperformance Based Vesting RSUs | Performance Based Vesting RSUs | ||||||||
Unvested award balance as of June 30, 2017 | 544 | 597 | $ | 25.79 | |||||
Granted | 185 | 341 | 21.32 | ||||||
Vested | (333 | ) | (132 | ) | 34.40 | ||||
Forfeited | (20 | ) | (27 | ) | 21.44 | ||||
Unvested award balance as of June 30, 2018 | 376 | 779 | 20.46 |
Years Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Current expense: | |||||||||||
Federal | $ | 64,021 | $ | 81,964 | $ | 71,632 | |||||
State and other | 30,651 | 31,977 | 27,977 | ||||||||
94,672 | 113,941 | 99,609 | |||||||||
Deferred benefit: | |||||||||||
Federal | (109,145 | ) | (4,120 | ) | (4,353 | ) | |||||
State and other | (1,851 | ) | (1,327 | ) | (14,252 | ) | |||||
(110,996 | ) | (5,447 | ) | (18,605 | ) | ||||||
Tax benefit relating to uncertain tax positions | (14 | ) | (18 | ) | (33 | ) | |||||
Income tax (benefit) expense | $ | (16,338 | ) | $ | 108,476 | $ | 80,971 |
Years Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Federal tax expense at statutory federal rate | $ | 76,470 | $ | 96,578 | $ | 85,495 | |||||
State and local income taxes, net of federal benefit | 21,372 | 19,489 | 17,709 | ||||||||
Change in the estimated applicable corporate tax rate used to determine deferred taxes | (497 | ) | 85 | (12,717 | ) | ||||||
Impact of Tax Act on deferred taxes | (106,446 | ) | — | — | |||||||
Domestic production activities tax deduction | (3,585 | ) | (7,998 | ) | (6,329 | ) | |||||
Tax benefit relating to uncertain tax positions | (14 | ) | (18 | ) | (33 | ) | |||||
Tax return to book provision adjustments | (3,411 | ) | (208 | ) | (3,271 | ) | |||||
Nondeductible expenses and other | (227 | ) | 548 | 117 | |||||||
Income tax (benefit) expense | $ | (16,338 | ) | $ | 108,476 | $ | 80,971 |
June 30, | |||||||
2018 | 2017 | ||||||
Deferred tax asset (liability) | |||||||
Investment in MSGN L.P. | $ | (245,959 | ) | $ | (356,064 | ) | |
Compensation and benefit plans | 4,542 | 4,210 | |||||
Net noncurrent deferred tax liability | $ | (241,417 | ) | $ | (351,854 | ) |
Balance as of June 30, 2017 | $ | 14 | |
Additions for tax positions related to prior years | — | ||
Decreases for tax positions related to prior years | (14 | ) | |
Balance as of June 30, 2018 | $ | — |
June 30, | |||||
2018 | 2017 | ||||
Customer A | 24 | % | 26 | % | |
Customer B | 24 | % | 25 | % | |
Customer C | 23 | % | 22 | % | |
Customer D | 15 | % | 14 | % |
Years Ended June 30, | ||||||||
2018 | 2017 | 2016 | ||||||
Customer 1 | 24 | % | 25 | % | 25 | % | ||
Customer 2 | 23 | % | 24 | % | 23 | % | ||
Customer 3 | 22 | % | 20 | % | 20 | % | ||
Customer 4 | 11 | % | 11 | % | 10 | % |
June 30, | |||||||
Reported in | 2018 | 2017 | |||||
Prepaid expenses | $ | 3,000 | $ | 3,000 | |||
Other current assets | 3,000 | 2,000 | |||||
Other assets | 39,000 | 41,000 | |||||
$ | 45,000 | $ | 46,000 |
Three Months Ended | Year Ended June 30, 2018 | ||||||||||||||||||
September 30, 2017 | December 31, 2017 | March 31, 2018 | June 30, 2018 | ||||||||||||||||
Revenues | $ | 157,456 | $ | 181,222 | $ | 186,568 | $ | 171,405 | $ | 696,651 | |||||||||
Operating expenses | 81,103 | 105,636 | 105,984 | 90,770 | 383,493 | ||||||||||||||
Operating income | $ | 76,353 | $ | 75,586 | $ | 80,584 | $ | 80,635 | $ | 313,158 | |||||||||
Net income | $ | 41,157 | $ | 155,568 | $ | 46,935 | $ | 45,202 | $ | 288,862 | |||||||||
Earnings per share: | |||||||||||||||||||
Basic | 0.55 | 2.06 | 0.62 | 0.60 | 3.83 | ||||||||||||||
Diluted | 0.54 | 2.05 | 0.62 | 0.60 | 3.81 |
Three Months Ended | Year Ended June 30, 2017 | ||||||||||||||||||
September 30, 2016 | December 31, 2016 | March 31, 2017 | June 30, 2017 | ||||||||||||||||
Revenues | $ | 153,578 | $ | 175,646 | $ | 183,247 | $ | 162,881 | $ | 675,352 | |||||||||
Operating expenses | 78,651 | 95,501 | 99,773 | 86,530 | 360,455 | ||||||||||||||
Operating income | $ | 74,927 | $ | 80,145 | $ | 83,474 | $ | 76,351 | $ | 314,897 | |||||||||
Income from continuing operations | $ | 40,361 | $ | 43,255 | $ | 44,155 | $ | 39,691 | $ | 167,462 | |||||||||
Loss from discontinued operations, net of taxes | (120 | ) | — | — | — | (120 | ) | ||||||||||||
Net income | $ | 40,241 | $ | 43,255 | $ | 44,155 | $ | 39,691 | $ | 167,342 | |||||||||
Earnings per share: | |||||||||||||||||||
Basic | |||||||||||||||||||
Income from continuing operations | $ | 0.54 | $ | 0.58 | $ | 0.59 | $ | 0.53 | $ | 2.23 | |||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||
Net income | 0.54 | 0.58 | 0.59 | 0.53 | 2.22 | ||||||||||||||
Diluted | |||||||||||||||||||
Income from continuing operations | $ | 0.54 | $ | 0.57 | $ | 0.58 | $ | 0.52 | $ | 2.22 | |||||||||
Loss from discontinued operations | — | — | — | — | — | ||||||||||||||
Net income | 0.53 | 0.57 | 0.58 | 0.52 | 2.21 |
1. | Vesting. With respect to any currently outstanding restricted stock units granted to you under the Plan that are scheduled to vest on any date between September 16 - 30, 2018, September 16 - 30, 2019, or September 16 - 30, 2020, each such vesting date will be modified such that the outstanding restricted stock units will vest on September 15 of the given year. |
2. | Acceptance. By electronically accepting this Agreement, you acknowledge and agree that the amendments to the Outstanding Awards set forth in this Annex 3 meet the requirements of Section 13 (Amendment) of each of the Outstanding Awards. |
1. | I have reviewed this Annual Report on Form 10-K of MSG Networks Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Andrea Greenberg |
Andrea Greenberg |
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of MSG Networks Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Bret Richter |
Bret Richter |
Executive Vice President, Chief Financial Officer and Treasurer |
/s/ Andrea Greenberg |
Andrea Greenberg |
President and Chief Executive Officer |
/s/ Bret Richter |
Bret Richter |
Executive Vice President, Chief Financial Officer and Treasurer |
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Document And Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
Dec. 31, 2017 |
|
Entity Registrant Name | MSG Networks Inc. | ||
Entity Central Index Key | 0001469372 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,195,743,546 | ||
Class A Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 61,016,575 | ||
Class B Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 13,588,555 |
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 45,000 | 45,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 3,242 | 2,762 |
Class A Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 360,000 | 360,000 |
Common stock, shares outstanding | 61,017 | 61,497 |
Class B Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000 | 90,000 |
Common stock, shares outstanding | 13,589 | 13,589 |
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement [Abstract] | |||
Revenue from Related Party | $ 230 | $ 0 | $ 162,269 |
Direct operating expenses from related party | 148,580 | 142,080 | 137,857 |
Selling, general and administrative expenses from related party | $ 22,240 | $ 21,732 | $ 28,603 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Net income | $ 288,862 | $ 167,342 | $ 7,634 |
Net unamortized gains (losses) arising during the period | 1,163 | 1,144 | (3,910) |
Amortization of net actuarial loss included in net periodic benefit cost | 656 | 724 | 721 |
Amortization of net prior service credit included in net periodic benefit cost | (13) | (24) | (57) |
Settlement gain | 0 | (71) | 0 |
Other comprehensive income (loss), before income taxes | 1,806 | 1,773 | (3,246) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (559) | (740) | 823 |
Other comprehensive income (loss) | 1,247 | 1,033 | (2,423) |
Comprehensive income | 290,109 | 168,375 | 5,211 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Other comprehensive income (loss) | $ 1,247 | $ 1,033 | $ (2,423) |
Description of Business and Basis of Presentation |
12 Months Ended |
---|---|
Jun. 30, 2018 | |
Description of Business And Basis of Presentation [Abstract] | |
Description of Business | Description of Business and Basis of Presentation Description of Business MSG Networks Inc. (together with its subsidiaries, the “Company”), incorporated on July 29, 2009, owns and operates two regional sports and entertainment networks, MSG Network and MSG+, collectively “MSG Networks”. On September 30, 2015 (the “Distribution Date”), the Company distributed to its stockholders all of the outstanding common stock of The Madison Square Garden Company (“MSG”) (the “Distribution”). In the Distribution, each holder of the Company’s Class A common stock, par value $0.01 per share (“Class A Common Stock”), of record as of the close of business, New York City time, on September 21, 2015 (the “Record Date”), received one share of MSG Class A common stock, par value $0.01 per share, for every three shares of the Company’s Class A Common Stock held on the Record Date. Each holder of the Company’s Class B common stock, par value $0.01 per share (“Class B Common Stock”), of record as of the Record Date received one share of MSG Class B common stock, par value $0.01 per share, for every three shares of the Company’s Class B Common Stock held on the Record Date. Following the Distribution, the Company no longer consolidates the financial results of MSG for purposes of its own financial reporting and the historical financial results of MSG have been reflected in the Company’s consolidated financial statements as discontinued operations for all periods presented through the Distribution Date. The Company operates and reports financial information in one segment. Substantially all revenues and assets of the Company are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area. |
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. See Note 3 for a discussion of rights fees prior to the Distribution Date recognized as revenues by MSG from the licensing of team-related programming to the Company. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amount of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax benefit (expense), performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. Revenue Recognition The Company recognizes revenue when the following conditions are satisfied: (a) persuasive evidence of a sales arrangement exists, (b) delivery occurs or services are rendered, (c) the sales price is fixed or determinable and (d) collectability is reasonably assured. The Company earns affiliation fee revenue from the cable, satellite, telephone and other platforms that carry its programming networks. The Company’s programming networks are delivered throughout the term of the agreements and the Company recognizes this revenue in the period that the programming networks are provided. The Company also earns advertising revenue, which is typically recognized when the advertisements are aired. In certain advertising sales arrangements, the Company guarantees specified viewer ratings for its programming. For these types of transactions, a portion of such revenue is deferred if the guaranteed viewer ratings are not met and is subsequently recognized either when the Company provides the required additional advertising time, the guarantee obligation contractually expires or additional performance requirements become remote. Gross versus Net Revenue Recognition The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. To the extent the Company acts as the principal, revenue is reported on a gross basis. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of several qualitative factors. When the Company acts as an agent, revenue is reported on a net basis. The Company has an advertising sales representation agreement with MSG that provides for MSG to act as its advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on its behalf for a commission. Generally, the Company reports advertising revenue on a gross basis. Nonmonetary Transactions The Company enters into nonmonetary transactions that involve the exchange of goods or services, such as advertising and promotional benefits, for other goods or services. Such transactions are measured and recorded at the fair value of the goods or services surrendered unless the goods or services received have a more readily determinable fair value. In addition, the Company enters into other monetary transactions in which nonmonetary consideration is also included, and the transaction is recorded at fair value. If the fair values cannot be determined for either the asset(s) surrendered or received within reasonable limits, then the nonmonetary transaction is measured and recorded at the book value of the item(s) surrendered which typically is zero. Direct Operating Expenses Direct operating expenses primarily represent media rights fees, and other direct programming and production costs, such as the salaries of on-air personalities, producers, directors, technicians, writers and other creative staff, as well as expenses associated with location costs, remote facilities and maintaining studios, origination, and transmission facilities. The professional team media rights acquired under media rights agreements to telecast various sporting events and other programming for exhibition on MSG Networks are typically expensed on a straight-line basis over the applicable annual contract or license period. Advertising Expenses Advertising costs are typically charged to expense when incurred. The Company incurs advertising expenses for services rendered by third parties, most of which are related to the utilization of advertising and promotional benefits by the Company, with an equal amount being recognized as revenue when the benefits are realized. Total advertising costs classified in selling, general and administrative expenses were $11,229, $11,765, and $10,540 for the years ended June 30, 2018, 2017 and 2016, respectively. Income Taxes The Company’s provision for income taxes is based on current period income, changes in deferred tax assets and liabilities and changes in estimates with regard to uncertain tax positions. Deferred tax assets are subject to an ongoing assessment of realizability. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the realization of its deductible temporary differences. If such estimates and related assumptions change in the future, the Company may be required to record valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company’s consolidated statements of operations. The Company measures its deferred tax liability with regard to MSGN Holdings L.P. (“MSGN L.P.”), an indirect wholly-owned subsidiary of the Company through which the Company conducts substantially all of its operations, based on the difference between the tax basis and the carrying amount for financial reporting purposes; this is commonly referred to as the outside basis difference. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. The Company accounts for investment tax credits using the “flow-through” method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. Share-based Compensation The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units (“RSUs”) granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date. The Company has elected to recognize share-based compensation cost for graded vesting awards with only service conditions on a straight-line basis over the requisite service period for the entire award. The Company accounts for forfeitures as they occur. Cash and Cash Equivalents The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets. The Company presents the change in these book cash overdrafts as cash flows from operating activities. Accounts Receivable Accounts receivable is recorded at net realizable value. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on the Company’s analysis of receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and other factors. The Company’s allowance for doubtful accounts was $509 and $594 as of June 30, 2018 and 2017, respectively. Long-Lived and Indefinite-Lived Assets The Company’s long-lived and indefinite-lived assets consist of goodwill, amortizable intangible assets, and property and equipment. Goodwill has an indefinite useful life and is not amortized. Identifiable intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Property and equipment is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to leasehold improvements, amortized over the shorter of the lease term or the asset’s estimated useful life. The useful lives of the Company’s long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws. Impairment of Long-Lived and Indefinite-Lived Assets In assessing the recoverability of the Company’s long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve significant uncertainties and judgments and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets. Goodwill is tested annually for impairment as of August 31st and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. The Company has one reporting unit for evaluating goodwill impairment. For other long-lived assets, including intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value. Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 12, the Company has both funded and unfunded defined benefit plans, as well as a contributory welfare plan, covering certain full-time employees and retirees. The expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return, discount rate and rate of compensation increases, among others. The Company recognizes the funded status of its defined benefit pension and other postretirement plans (other than multiemployer plans) as an asset or liability in the consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). Earnings (Loss) Per Common Share Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of RSUs and exercise of stock options (see Note 13) only in the periods in which such effect would have been dilutive. Recently Adopted Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard was early adopted by the Company in the first quarter of fiscal year 2018, and was applied retrospectively. The adoption of this standard resulted in the non-service cost components of net periodic benefit cost to be presented separately from the service cost component, and the non-service cost components to no longer be included in the subtotal for operating income in the consolidated statements of operations. The presentation of the service cost component of net periodic benefit cost remains unchanged within selling, general and administrative expenses and direct operating expenses in the consolidated statements of operations. As this standard was applied retrospectively, the Company reclassified $1,633 and $2,044 of net periodic benefit cost from selling, general and administrative expenses and direct operating expenses to a separate line item within other income (expense) in the accompanying consolidated statements of operations for the years ended June 30, 2017 and 2016, respectively. In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard was early adopted by the Company in the third quarter of fiscal year 2018. The adoption of this standard resulted in a reclassification of $1,391 from accumulated other comprehensive loss to accumulated deficit for the stranded tax effects resulting from the reduction of the Company’s deferred tax assets related to its pension plans and other postretirement benefit plan upon the enactment of the new tax legislation, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). See Note 16 for more information. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 for all entities by one year. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which provides clarification on the implementation guidance on principal versus agent considerations outlined in ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which finalized amendments to identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which clarifies assessing collectibility, noncash consideration, presentation of sales taxes, completed contracts and contract modifications at transition. The Company will adopt the standard in the first quarter of fiscal year 2019, using the modified retrospective approach. The Company has substantially completed its evaluation of the impact of the standard and does not expect the adoption to have a material impact on its consolidated revenues. Accordingly, the Company does not expect to record a material adjustment to opening accumulated deficit upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the current guidance in ASC Topic 840, Leases. This ASU requires the recognition of lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The amended guidance also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides amendments and clarifications to ASU No. 2016-02 based on the FASB interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. This standard will be effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which amends ASC Topic 230, Statement of Cash Flows, to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows by adding or clarifying guidance on eight specific cash flow issues. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019 and requires the retrospective approach upon adoption. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which will effect various areas of accounting including, but not limited to, goodwill and consolidation. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The standard is to be applied prospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment by eliminating the requirement of performing a hypothetical purchase price allocation. Instead, impairment will be measured using the difference between the carrying amount and fair value of the reporting unit. The amended guidance also eliminates the requirement for any reporting unit with a zero or a negative carrying amount to perform a qualitative assessment and will require disclosure of the amount of goodwill allocated to each reporting unit with a zero or a negative carrying amount of net assets. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied prospectively. Based on the Company’s most recent annual goodwill impairment test completed in fiscal year 2018, the adoption of this guidance is not expected to have any initial impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The standard is to be applied prospectively to an award modified on or after the adoption date. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Discontinued Operations (Notes) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 3. Discontinued Operations As a result of the Distribution, the results of the Company’s MSG operations through the Distribution Date, as well as transaction costs related to the Distribution, have been classified in the consolidated statements of operations as discontinued operations for all periods presented. No gain or loss was recognized in connection with the Distribution. Operating results related to discontinued operations are summarized below:
Prior to the Distribution, the Company’s collections for ticket sales, sponsorships and suite rentals in advance were recorded as deferred revenue and were recognized as revenues when earned for both accounting and tax purposes. In connection with the reorganization transactions related to the Distribution, the tax recognition on most of these deferred revenues was accelerated to the date of the reorganization. The impact of the acceleration of such deferred revenue is reflected in income tax expense of discontinued operations for the year ended June 30, 2016. The net impact of the Distribution to the Company’s stockholders’ deficiency includes cash distributed with MSG of $1,467,093. |
Computation of Earnings Per Common Share |
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Computation of Earnings per Common Share | Computation of Earnings (Loss) per Common Share The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS:
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Goodwill and Intangible Assets |
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Goodwill And Intangible Assets | Goodwill and Amortizable Intangible Assets During the first quarter of fiscal year 2018, the Company performed its annual impairment test of goodwill, and there was no impairment of goodwill identified. The Company’s intangible assets subject to amortization are as follows:
Affiliate relationships have an estimated useful life of 24 years. Amortization expense for intangible assets for continuing operations was $3,460 for the years ended June 30, 2018, 2017 and 2016. The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2019 through 2023 to be as follows:
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Property and Equipment |
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Property and Equipment | Property and Equipment As of June 30, 2018 and 2017, property and equipment consisted of the following assets:
Depreciation and amortization expense on property and equipment for continuing operations was $5,878, $6,836, and $11,123 for the years ended June 30, 2018, 2017 and 2016, respectively, which for the first quarter of fiscal year 2016 included depreciation expense on certain corporate property and equipment that was transferred to MSG in connection with the Distribution, but which did not qualify for discontinued operations reporting. |
Debt |
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Debt | Debt On September 28, 2015, MSGN L.P., MSGN Eden, LLC, an indirect subsidiary of the Company and the general partner of MSGN L.P., Regional MSGN Holdings LLC, a direct subsidiary of the Company and the limited partner of MSGN L.P. (collectively with MSGN Eden, LLC, the “Holdings Entities”), and certain subsidiaries of MSGN L.P. entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders. The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (a) an initial $1,550,000 term loan facility (the “Term Loan Facility”) and (b) a $250,000 revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. In connection with the Distribution, $1,450,000 of the proceeds from the Term Loan Facility was contributed to MSG immediately following the closing of the Senior Secured Credit Facilities. Up to $35,000 of the Revolving Credit Facility is available for the issuance of letters of credit. Subject to the satisfaction of certain conditions and limitations, the Credit Agreement allows for the addition of incremental term and/or revolving loan commitments and incremental term and/or revolving loans. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of MSGN L.P. may be either (a) base rate, representing the higher of: (i) the New York Fed Bank Rate plus 0.50%; (ii) the U.S. Prime Rate; or (iii) the one-month London Interbank Offered Rate, or LIBOR, plus 1.00% (the “Base Rate”), plus an additional rate ranging from 0.50% to 1.25% per annum (determined based on a total leverage ratio), or (b) a Eurodollar rate (the “Eurodollar Rate”) plus an additional rate ranging from 1.50% to 2.25% per annum (determined based on a total leverage ratio), provided that for the period until the delivery of the compliance certificate for the period ending March 31, 2016, the additional rate used in calculating both floating rates was (i) 1.00% per annum for borrowings bearing interest at the Base Rate, and (ii) 2.00% per annum for borrowings bearing interest at the Eurodollar Rate. Upon a payment default in respect of principal, interest or other amounts due and payable under the Credit Agreement or related loan documents, default interest will accrue on all overdue amounts at an additional rate of 2.00% per annum. The Credit Agreement requires that MSGN L.P. pay a commitment fee of 0.30% in respect of the average daily unused commitments, as well as fronting fees, to banks that issue letters of credit pursuant to the Revolving Credit Facility. The Credit Agreement generally requires the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis to comply with a maximum total leverage ratio of 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. As of June 30, 2018, the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis were in compliance with the financial covenants of the Credit Agreement. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of June 30, 2018, there were no letters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of $250,000. For the year ended June 30, 2018, the Company made principal repayments of $125,000, including a voluntary payment of $50,000. The Company has made principal payments aggregating $353,750 through June 30, 2018. The Term Loan Facility amortizes quarterly in accordance with its terms through June 30, 2020 with a final maturity date on September 28, 2020. As of June 30, 2018, the principal repayments required under the Term Loan Facility are as follows:
All obligations under the Credit Agreement are guaranteed by the Holdings Entities and MSGN L.P.’s existing and future direct and indirect domestic subsidiaries that are not designated as excluded subsidiaries or unrestricted subsidiaries (the “Subsidiary Guarantors,” and together with the Holdings Entities, the “Guarantors”). All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain assets of MSGN L.P. and each Guarantor (collectively, “Collateral”), including, but not limited to, a pledge of the equity interests in MSGN L.P. held directly by the Holdings Entities and the equity interests in each Subsidiary Guarantor held directly or indirectly by MSGN L.P. Subject to customary notice and minimum amount conditions, MSGN L.P. may voluntarily prepay outstanding loans under the Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurodollar loans). MSGN L.P. is required to make mandatory prepayments in certain circumstances, including without limitation from the net cash proceeds of certain sales of assets (including Collateral) or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. In addition to the financial covenants discussed above, the Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative covenants and events of default. The Credit Agreement contains certain restrictions on the ability of the Holdings Entities and MSGN L.P. and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Credit Agreement, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) changing their lines of business; (vi) engaging in certain transactions with affiliates; (vii) amending specified material agreements; (viii) merging or consolidating; (ix) making certain dispositions; and (x) entering into agreements that restrict the granting of liens. The Holdings Entities are also subject to customary passive holding company covenants. The Company is amortizing its deferred financing costs on a straight-line basis over the five-year term of the Senior Secured Credit Facilities which approximates the effective interest method. The following table summarizes the presentation of the Term Loan Facility and the related deferred financing costs in the accompanying consolidated balance sheets as of June 30, 2018 and June 30, 2017:
In addition, the Company has deferred financing costs related to the Revolving Credit Facility recorded in the accompanying consolidated balance sheets as summarized in the following table:
The Company made interest payments under the Credit Agreement of $40,106, $37,005, and $27,691 during the years ended June 30, 2018, 2017, and 2016, respectively. |
Operating Leases |
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Operating Leases Of Lessee Disclosure Text Block [Text Block] | Operating Leases The Company has various long-term noncancelable operating lease agreements, primarily for office and studio space expiring at various dates through 2024. The rent expense associated with such operating leases is recognized on a straight-line basis over the initial lease term. The difference between rent expense and rent paid is recorded as deferred rent. Rent expense under these lease agreements totaled $5,474, $7,184, and $10,393 for the years ended June 30, 2018, 2017 and 2016, respectively, which for the first quarter of fiscal year 2016 included rent expense on certain operating leases that were transferred to MSG in connection with the Distribution, but which did not qualify for discontinued operations reporting. As of June 30, 2018, future minimum rental payments under leases having noncancelable initial lease terms in excess of one year are as follows:
During the years ended June 30, 2018, 2017 and 2016, the Company recorded income of $149, $2,531 and $2,638, respectively, related to the use of certain Company space by third parties. |
Commitments and Contingencies |
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Contractual Obligations and Off Balance Sheet Arrangements | As of June 30, 2018, future cash payments required under contracts entered into by the Company in the normal course of business are as follows:
Contractual obligations above consist primarily of the Company’s obligations under media rights agreements. In addition, see Note 7 for the principal repayments required under the Company’s Term Loan Facility. |
Legal Matters |
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Legal Matters [Abstract] | |
Legal Matters | Legal Matters The Company is a defendant in various lawsuits. Although the outcome of these matters cannot be predicted with certainty, management does not believe that resolution of these lawsuits will have a material adverse effect on the Company. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for which market data is not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy consists of the following three levels:
The following table presents for each of these hierarchy levels, the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents:
Money market accounts and time deposits are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s money market accounts and time deposits approximates fair value due to their short-term maturities. Other Financial Instruments The fair value of the Company’s long-term debt (see Note 7) was approximately $1,184,000 as of June 30, 2018. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted prices of such securities for which fair value can be derived from inputs that are readily observable. |
Pension Plans and Other Postretirement Benefit Plan |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans and Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan Company Sponsored Plans The Company sponsors (i) a non-contributory, qualified defined benefit pension plan covering certain of its union employees (the “Union Plan”), (ii) an unfunded non-contributory, non-qualified frozen excess cash balance plan covering certain employees who participated in an underlying qualified plan (the “Excess Cash Balance Plan”), and (iii) an unfunded non-contributory, non-qualified frozen defined benefit pension plan for the benefit of certain employees who participated in an underlying qualified plan (the “Excess Plan,” and collectively with the Union Plan and the Excess Cash Balance Plan, the “MSGN Pension Plans”). As of December 31, 2015, the Excess Cash Balance Plan was amended to freeze participation and future benefit accruals. Therefore, after December 31, 2015, no employee of the Company who was not already a participant may become a participant in the plan and no further annual pay credits will be made for any future year. Existing account balances under the plan will continue to be credited with monthly interest in accordance with the terms of the plan. As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under this plan. Benefits payable to retirees under the Union Plan are based upon years of service and participants’ compensation. The Company also sponsors a contributory welfare plan which provides certain postretirement healthcare benefits to certain employees hired prior to January 1, 2001 (the “Postretirement Plan”). Prior to the Distribution, the Company also sponsored a non-contributory qualified cash balance retirement plan covering its non-union employees and a non-contributory qualified defined benefit pension plan covering certain of its union employees who work in the MSG businesses (collectively, the “MSG Pension Plans”). As of the Distribution Date, the Company and MSG entered into an employee matters agreement (the “Employee Matters Agreement”) which determined each company’s obligations after the Distribution with regard to historic liabilities under the Company’s former pension and postretirement plans. Under the Employee Matters Agreement, the assets and liabilities of the MSG Pension Plans have been transferred to MSG. In addition, the following have been transferred to MSG: liabilities related to (i) MSG employees as of the Distribution Date who were active participants in the Excess Plan and/or the Excess Cash Balance Plan, (ii) MSG employees as of the Distribution Date who were eligible for participation in the Postretirement Plan, and (iii) former MSG employees as of the Distribution Date who were retired participants in the Postretirement Plan. The Company has retained liabilities related to (i) its current and former employees who are active participants in the Excess Plan and/or the Excess Cash Balance Plan, (ii) former MSG employees as of the Distribution Date who were active participants in the Excess Plan and/or the Excess Cash Balance Plan, (iii) its current employees who are eligible for participation in the Postretirement Plan, (iv) its former employees who are retired participants in the Postretirement Plan, and (v) the Union Plan. The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2018 and 2017 based upon actuarial valuations as of those measurement dates.
Amounts recognized in the consolidated balance sheets as of June 30, 2018 and 2017 consist of:
Accumulated other comprehensive loss, before tax, as of June 30, 2018 and 2017 consists of the following amounts that have not yet been recognized in net periodic benefit cost:
In connection with the Distribution, the Company transferred to MSG the accumulated other comprehensive loss related to the MSG Pension Plans. Components of net periodic benefit cost for the years ended June 30, 2018, 2017 and 2016 are as follows:
(a) Reflects amounts reclassified from accumulated other comprehensive loss to other components of net periodic benefit cost in the accompanying consolidated statements of operations. Net periodic benefit cost presented in the table above for the year ended June 30, 2016 includes $1,963 that was included in loss from discontinued operations in the accompanying consolidated statement of operations. Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2018, 2017 and 2016 are as follows:
The estimated net loss for the MSGN Pension Plans and the Postretirement Plan expected to be amortized from accumulated other comprehensive loss and recognized as a component of net periodic benefit cost over the next fiscal year is $486. The estimated prior service credit for the Postretirement Plan expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $7. Funded Status The accumulated benefit obligation for the MSGN Pension Plans aggregated to $40,782 and $42,190 at June 30, 2018 and 2017, respectively. As of June 30, 2018 and 2017 each of the MSGN Pension Plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets. Pension Plans and Postretirement Plan Assumptions Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2018 and 2017 are as follows:
Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2018, 2017 and 2016 are as follows:
Accumulated and projected benefit obligations reflect the present value of future cash payments for benefits. The Company used the Willis Towers Watson U.S. Rate Link: 40-90 Discount Rate Model (which is developed by examining the yields on selected highly rated corporate bonds) to discount benefit payments on a plan by plan basis, to select the rates at which the Company believes each plan’s benefits could be effectively settled. Effective in the first quarter of fiscal year 2017, the Company began to utilize a method which calculates service and interest costs by applying specific spot rates along the yield curve to the plans’ cash flows instead of using a single weighted-average discount rate. The Company’s expected long-term rate of return on plan assets is based on a periodic review and modeling of the plans’ asset allocation structures over a long-term horizon. Expectations of returns for each asset class used in the review and modeling and are based on comprehensive reviews of historical data, forward-looking economic outlook, and economic/financial market theory. The expected long-term rate of return was selected from within the reasonable range of rates determined by (a) historical real returns, net of inflation, for the asset classes covered by the investment policy and (b) projections of inflation over the long-term period during which benefits are payable to plan participants. Assumed healthcare cost trend rates are also a key assumption used for the amounts reported for the Postretirement Plan. A one percentage point change in assumed healthcare cost trend rates would have the following effects:
Plan Assets and Investment Policy The weighted-average asset allocation of the Union Plan’s assets at June 30, 2018 and 2017 was as follows:
(a) The Company’s target allocation for pension plan assets is 80% fixed income securities and 20% cash equivalents as of June 30, 2018. Investment allocation decisions are formally made by the Company’s Investment and Benefits Committee, which takes into account investment advice provided by the Company’s external investment consultant. The investment consultant takes into account expected long-term risk, return, correlation, and other prudent investment assumptions when recommending asset classes and investment managers to the Company’s Investment and Benefits Committee. The investment consultant also takes into account the Union Plan’s liabilities when making investment allocation recommendations. Those decisions are driven by asset/liability studies conducted by the external investment consultant who combines actuarial considerations and strategic investment advice. The major categories of the Union Plan’s assets are cash equivalents and long duration bonds which are marked-to-market on a daily basis. Due to the fact that the Union Plan’s assets are significantly made up of long duration bonds, they are subjected to interest-rate risk; specifically, a rising interest rate environment. However, an increase in interest rates would cause a corresponding decrease to the overall liability of the plans, thus creating a hedge against rising interest rates. Additional risks involving the asset/liability framework include earning insufficient returns to cover future liabilities and imperfect hedging of the liability. In addition, a portion of the long duration bond portfolio is invested in non-government securities which are subject to credit risk of the bond issuer defaulting on interest and/or principal payments. Plan Assets at Estimated Fair Value The fair value of the Union Plan’s assets at June 30, 2018 and 2017 by asset class are as follows:
Contributions for Qualified Defined Benefit Pension Plan The Company expects to contribute approximately $2,700 to the Union Plan in fiscal year 2019. Estimated Future Benefit Payments The following table presents estimated future fiscal year benefit payments for the MSGN Pension Plans and Postretirement Plan:
Savings Plans In addition, prior to the Distribution, the Company sponsored the MSG Holdings, L.P. 401(k) Savings Plan (the “MSG Savings Plan”) and the MSG Holdings, L.P. Excess Savings Plan (“Excess Savings Plan”). As a result of the Distribution, the MSG Savings Plan was amended to (i) transfer sponsorship of the plan to MSG, and (ii) become a multiple employer plan in which both MSG and the Company will continue to participate. Pursuant to the Employee Matters Agreement, liabilities relating to MSG employees as of the Distribution Date who were active participants in the Company’s Excess Savings Plan have been transferred to MSG. The Excess Savings Plan has been renamed the MSGN Holdings, L.P. Excess Savings Plan (together with the MSG Savings Plan, the “Savings Plans”). Expenses related to the Savings Plans included in the accompanying consolidated statements of operations for the years ended June 30, 2018, 2017 and 2016 are as follows:
Multiemployer Plans The Company contributes to a number of multiemployer defined benefit pension plans, multiemployer defined contribution pension plans, and multiemployer health and welfare plans that provide benefits to retired union-represented employees under the terms of collective bargaining agreements. The multiemployer defined benefit pension plans to which the Company contributes generally provide for retirement and death benefits for eligible union-represented employees based on specific eligibility/participant requirements, vesting periods and benefit formulas. The risks to the Company of participating in these multiemployer defined benefit pension plans are different from single-employer defined benefit pension plans in the following aspects:
The Company was not listed in any of the multiemployer plans’ Form 5500’s as providing more than 5% of the total contributions. There were no multiemployer defined benefit pension plans, to which the Company contributes, that were in the red zone (which are plans that are generally less than 65% funded) for the most recent Pension Protection Act zone status available as of June 30, 2018. The Company contributed $1,299, $1,328, and $1,334 for the years ended June 30, 2018, 2017 and 2016, respectively, to multiemployer plans, primarily multiemployer defined benefit pension plans. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation | Share-based Compensation The Company has two share-based compensation plans (i) the MSG Networks Inc. 2010 Employee Stock Plan, as amended (the “Employee Stock Plan”), which was most recently approved by the Company’s stockholders on December 15, 2016, and (ii) the MSG Networks Inc. 2010 Stock Plan for Non-Employee Directors, as amended (the “Non-Employee Director Plan”), which was most recently approved by the Company’s stockholders on December 11, 2015. Under the Employee Stock Plan, the Company is authorized to grant incentive stock options and non-qualified stock options (“NQSOs”), restricted shares, RSUs and other share-based awards. The Employee Stock Plan provides that the Company may grant awards for up to 12,500 (inclusive of awards granted prior to the December 15, 2016 amendment thereof) shares of the Company’s Class A Common Stock (subject to certain adjustments). NQSOs under the Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). RSUs granted under the Employee Stock Plan will settle in shares of the Company’s Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee of the Board of Directors (“Compensation Committee”), in cash. The terms and conditions of awards granted under the Employee Stock Plan, including vesting and exercisability, are determined by the Compensation Committee and may include performance targets. Under the Non-Employee Director Plan, the Company is authorized to grant NQSOs, RSUs and other share-based awards. The Non-Employee Director Plan provides that the Company may grant awards for up to 300 shares of the Company’s Class A Common Stock (subject to certain adjustments). NQSOs under the Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards granted under the Non-Employee Director Plan, including vesting and exercisability, are determined by the Compensation Committee. Unless otherwise provided in an applicable award agreement, NQSOs granted under the Non-Employee Director Plan will be fully vested and exercisable, and RSUs granted under the Non-Employee Director Plan will be fully vested, upon the date of grant and will settle in shares of the Company’s Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash, on the first business day after ninety days from the date the director’s service on the Board of Directors ceases or, if earlier, upon the director’s death. In connection with the Distribution, each holder of an employee RSU that was granted prior to July 1, 2015 received one MSG RSU in respect of every three RSUs owned on the Record Date and continued to be entitled to a share of the Company’s Class A Common Stock (or cash or other property) for each RSU in accordance with the existing award agreement. In connection with the Distribution, each employee RSU that was granted on or after July 1, 2015 (but prior to the Distribution Date) was adjusted in accordance with its terms, such that (i) each holder who remained employed by the Company following the Distribution continued to hold Company RSUs, with the number of RSUs adjusted to reflect the Distribution to maintain the value of the RSUs, and (ii) each holder who MSG employed following the Distribution received MSG RSUs of the same value as the Company RSUs, and the original Company RSUs were canceled. Any holder of RSUs granted after July 1, 2015 (but prior to the Distribution Date) who was employed by both MSG and the Company following the Distribution held the Company’s RSUs, adjusted to reflect the Distribution, and received MSG RSUs, so that the Company’s RSUs represented 30% of the value of the original awards and MSG RSUs represented 70% of the value of the original RSU award. In connection with the Distribution, one share of MSG Class A Common Stock was issued under the MSG 2015 Non-Employee Director Plan in respect of every three RSUs outstanding under the Company’s Non-Employee Director Plan. In connection with the Distribution, each option to purchase the Company’s Class A Common Stock became two options: one option to acquire MSG Class A Common Stock and one option to acquire the Company’s Class A Common Stock. The existing exercise price was allocated between the existing options and the new MSG options based upon the volume-weighted average prices of the MSG Class A Common Stock and the Company’s Class A Common Stock over the ten trading days immediately following the Distribution as reported by Bloomberg Business, and the underlying share amount took into account the one-to-three distribution ratio (i.e., one share of MSG Class A Common Stock was issued for every three shares of the Company’s Class A Common Stock). Other than the split of the options and the allocation of the existing exercise price, there were no additional adjustments to the existing options in connection with the Distribution. The Company’s RSUs held by MSG employees were not expensed by the Company; however, such RSUs had a dilutive effect on earnings per share available to the Company’s common stockholders. There are no outstanding Company RSUs held by MSG employees, except for those employed by both MSG and the Company, as of June 30, 2018. Share-based Compensation Expense Share-based compensation expense, presented within selling, general and administrative expenses and direct operating expenses, was $13,979, $9,931 and $9,266 for the years ended June 30, 2018, 2017 and 2016, respectively. In addition, share-based compensation expense for the year ended June 30, 2016 of $808 was included in loss from discontinued operations in the accompanying consolidated statement of operations. As of June 30, 2018, there was $17,274 of unrecognized compensation cost related to unvested RSUs and NQSOs, held by Company employees. The cost is expected to be recognized over a weighted-average period of 2 years for unvested RSUs and NQSOs. There were no costs related to share-based compensation that were capitalized. Tax benefits realized from tax deductions associated with share-based compensation expense for the years ended June 30, 2018, 2017 and 2016 totaled $2,814, $1,714, and $12,206, respectively. NQSOs Award Activity The following table summarizes activity relating to holders of the Company’s NQSOs for the year ended June 30, 2018:
In September 2017, the Company granted 853 NQSOs, of which 50% are subject to three-year ratable vesting and the remaining 50% are subject to three-year cliff vesting and the achievement of certain Company performance criteria. These NQSOs have an expiration period of 7.5 years. The Company calculated the fair value of these NQSOs on the date of grant using the Black-Scholes option pricing model, which resulted in a grant date fair value of $5.63 per NQSO. The following were the key assumptions used to calculate the fair value of this award:
The Company’s computation of expected term was calculated using the simplified method (the average of the vesting period and option term) as prescribed in ASC Topic 718-10-S99. The Company’s computation of expected volatility was based on historical volatility of its common stock. The aggregate intrinsic value is calculated for in-the-money NQSOs as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of the Company’s Class A Common Stock at June 30, 2018 and 2017, as applicable. For the years ended June 30, 2017 and 2016, the aggregate intrinsic value of the Company’s NQSOs exercised was $14 and $5,100, respectively, determined as of the date of NQSO exercise. Restricted Share Units Award Activity The following table summarizes activity relating to holders (including Company and MSG employees) of the Company’s RSUs for the year ended June 30, 2018:
Nonperformance based vesting RSUs granted during the year ended June 30, 2018 included 113 RSUs granted under the Employee Stock Plan that are subject to three-year ratable vesting and 72 RSUs granted under the Non-Employee Director Plan which vested upon date of grant. Performance based vesting RSUs granted under the Employee Stock Plan during the year ended June 30, 2018 included 114 RSUs that are subject to three-year ratable vesting, and 227 RSUs subject to three-year cliff vesting. The fair value of RSUs that vested during the year ended June 30, 2018 was $9,329, determined as of the date of vesting. Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations and the remaining number of shares were issued from the Company’s treasury shares. To fulfill the employees’ statutory tax withholding obligations for the applicable income and other employment taxes, 188 of these RSUs, with an aggregate value of $3,773 were retained by the Company and the taxes paid are reflected as a financing activity in the accompanying consolidated statement of cash flows for the year ended June 30, 2018. For the years ended June 30, 2017 and 2016, the fair value of the Company’s RSUs that vested was $5,902 and $17,330, respectively, determined as of the date of the RSU vesting. The weighted-average fair value per share at date of grant of RSUs granted during the years ended June 30, 2017 and 2016 was $19.59 and $55.23, respectively. |
Stock Repurchase Program Stock Repurchase Program |
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Jun. 30, 2018 | |
Stock Based Compensation [Abstract] | |
Treasury Stock [Text Block] | Stock Repurchase Program On December 7, 2017, the Company’s Board of Directors authorized the repurchase of up to $150,000 of the Company’s Class A Common Stock. Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. As of June 30, 2018, the Company had $136,165 of availability remaining under its stock repurchase authorization. For the year ended June 30, 2018, the Company repurchased 713 shares, which are determined based on the settlement date of such trades, for a total cost of $13,850 (including commissions and fees). These acquired shares have been classified as treasury stock. On October 27, 2014, the Company’s Board of Directors authorized the repurchase of up to $500,000 of the Company’s Class A Common Stock. On September 11, 2015, the Company’s Board of Directors terminated the repurchase authorization effective as of the Distribution Date. For the year ended June 30, 2016 (up until the authorization was terminated), the Company repurchased 1,336 shares, which were determined based on the settlement date of such trades, for a total cost of $100,027 (including commissions and fees). These acquired shares have been classified as treasury stock. |
Related Party Transactions |
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Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2018, members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group (collectively, the “Dolan Family Group”), collectively beneficially own all of the Company’s outstanding Class B Common Stock and own approximately 3.2% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of the date hereof). Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 70.0% of the aggregate voting power of the Company’s outstanding common stock. The Dolan Family Group also controls MSG and AMC Networks Inc. (“AMC Networks”). On June 16, 2016, the Company entered into an arrangement with the Dolan Family Office, LLC (“DFO”), MSG and AMC Networks providing for the sharing of certain expenses associated with executive office space which is available to Charles F. Dolan (a director of the Company and MSG, and the Executive Chairman and a director of AMC Networks), James L. Dolan (the Executive Chairman and a director of the Company, the Executive Chairman, Chief Executive Officer, and a director of MSG, and a director of AMC Networks), and the DFO, which is controlled by Charles F. Dolan. Beginning in June 2016, the Company agreed to share certain executive support costs, including office space, executive assistants, security and transportation costs for (i) the Company’s Executive Chairman with MSG and (ii) the Company’s Vice Chairman with MSG and AMC Networks. In connection with the Distribution, the Company entered into various agreements with MSG, including media rights agreements covering Knicks and Rangers games, an advertising sales representation agreement, a trademark license agreement, a tax disaffiliation agreement, a transition services agreement (“TSA”) and certain other arrangements. The Company and MSG entered into a new services agreement (“Services Agreement”) effective July 1, 2017, which provides for each party to furnish substantially the same services, as well as the executive support services described above, in exchange for service fees. In connection with the expiration of the Services Agreement on June 30, 2018, the Company entered into an interim agreement with MSG, pursuant to which each party provides the other with the services on the same terms. The Company has entered into various agreements with AMC Networks with respect to a number of ongoing commercial relationships. Related party transactions included in continuing operations Rights fees The Company’s media rights agreements with the Knicks and the Rangers, effective as of July 1, 2015, provide the Company with exclusive media rights to team games in their local markets. Rights fees included in the accompanying consolidated statements of operations for the years ended June 30, 2018, 2017 and 2016 were $141,726, $135,191, and $130,841, respectively. Origination, master control and technical services AMC Networks provides certain origination, master control and technical services to the Company. Amounts charged to the Company for the years ended June 30, 2018, 2017 and 2016 were $6,138, $6,111, and $5,872, respectively. Commission The Company’s advertising sales representation agreement with MSG, which has a term through June 30, 2022, provides for MSG to act as the Company’s advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission. All of the Company’s advertising sales personnel were transferred to MSG in connection with the Distribution. The amounts charged to the Company for the years ended June 30, 2018, 2017 and 2016 were $13,011, $13,585, and $13,763, respectively. Other operating expenses The Company and its related parties enter into transactions with each other in the ordinary course of business. In addition, pursuant to the Services Agreement, the Company outsources (and prior to the expiration of the TSA, the Company outsourced) certain business functions to MSG. These services currently include information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit. Net amounts charged to the Company for expenses associated with services provided by MSG, executive office space and certain support costs, and for other related party transactions amounted to $9,945, $8,925, and $4,934 for the years ended June 30, 2018, 2017 and 2016, respectively. Related party transactions with Cablevision Systems Corporation Prior to June 21, 2016, members of the Dolan Family Group were also the controlling stockholders of Cablevision Systems Corporation (“Cablevision”). On June 21, 2016, Cablevision was acquired by a subsidiary of Altice N.V. and a change in control occurred which resulted in members of the Dolan Family Group no longer being controlling stockholders of Cablevision (now known as Altice USA). Accordingly, Altice USA is not a related party of the Company. Revenues (primarily from the distribution of programming networks) and operating expenses that relate to Cablevision prior to its sale included in continuing operations in the accompanying consolidated statement of operations for the year ended June 30, 2016 were $161,588 and $11,050, respectively. Related party transactions included in discontinued operations Related party transactions included in loss from discontinued operations in the accompanying consolidated statement of operations for the year ended June 30, 2016 include the following: (i) revenues from related parties of $33,559, (ii) operating expenses charged by related parties of $1,367, (iii) interest income from nonconsolidated affiliates of $635, and (iv) equity in earnings (loss) of equity-method investments of $2,679. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax (benefit) expense attributable to continuing operations is comprised of the following components:
The income tax (benefit) expense attributable to continuing operations differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items:
On December 22, 2017, the enactment of the Tax Act significantly changed the existing U.S. tax laws and included a reduction in the corporate federal tax rate from 35% to 21% effective January 1, 2018. For the year ended June 30, 2018, the Company used a blended statutory federal rate of 28% (based upon the number of days for the fiscal year ended 2018 that it will be taxed at the former rate of 35% and the number of days it will be taxed at the new rate of 21%) to calculate its most recent effective tax rate. The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities included in the accompanying consolidated balance sheets as of June 30, 2018 and 2017 are as follows:
Deferred tax assets have resulted from the Company’s future deductible temporary differences. At this time, based on current facts and circumstances, management believes that it is more likely than not that the Company will realize the benefit for its gross deferred tax assets. The current state tax prepaid asset of $1,134 and $14,322 as of June 30, 2018 and 2017, respectively, and the current federal tax payable of $8,460 and $11,483 as of June 30, 2018 and 2017, respectively, are reflected in the Company’s income tax prepaid and payable balances in the accompanying consolidated balance sheets. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits associated with the Company’s uncertain tax positions:
During the year ended June 30, 2018, the Company recorded a $14 tax benefit related to uncertain tax positions (including interest and penalties) due to the expiration of the applicable statute of limitations. The expense related to uncertain tax positions taken in prior years was comprised of income taxes associated with a state filing position. The Company made cash income tax payments (net) of $84,524, $97,164 and $192,315 for years ended June 30, 2018, 2017 and 2016, respectively. The cash income tax payments for the year ended June 30, 2016 include approximately $120,000 which is reflected in net cash used in operating activities of discontinued operations in the accompanying consolidated statement of cash flows. The income tax payments classified in net cash used in operating activities of discontinued operations primarily reflect a one-time payment related to certain historical activities of the Company’s former subsidiary, MSG, and other offsetting items. During the third quarter of fiscal year 2017, the Internal Revenue Service concluded its fieldwork on the audit of the Company’s federal income tax returns as filed for the tax year ended December 31, 2013. The audit has been completed and the Company received a summary notice. The audit did not result in material changes to the tax returns as filed. The Company was notified during the third quarter of fiscal year 2017 that the City of New York was commencing an examination of the Company’s New York City income tax returns as filed for the tax years ended December 31, 2013 and 2014. The audit has been completed and the Company received a summary notice. The audit did not result in material changes to the tax returns as filed. During the fourth quarter of fiscal year 2017, the Company was notified that the City of New York was initiating a review of the Company’s 2014 and 2015 Unincorporated Business Tax Returns. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed. The Company was also notified during the fourth quarter of fiscal year 2017 that the State of New York was commencing an examination of the Company’s New York State income tax returns as filed for the tax years ended December 31, 2013 and 2014. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed. During the third quarter of fiscal year 2018, the Company was notified that the State of Massachusetts was commencing an examination of the Company’s Massachusetts income tax returns as filed for the tax years ended December 31, 2014 and 2015. The Company was notified during the fourth quarter of fiscal year 2018 that it was no longer subject to the examination. The federal and state statute of limitations are currently open on the Company’s 2014 through 2017 and 2013 through 2017 tax returns, respectively. |
Concentration of Risk |
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Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration Of Risk | Concentrations of Risk Financial instruments that may potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in money market funds and bank time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company’s emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments. Accounts receivable, net on the accompanying consolidated balance sheets as of June 30, 2018 and 2017 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance:
Affiliation fee revenue constituted at least 90% of the Company’s consolidated revenues for each of the years ended June 30, 2018, 2017 and 2016. Revenues from continuing operations in the accompanying consolidated statements of operations for the years ended June 30, 2018, 2017 and 2016 include amounts from the following individual customers, which accounted for the noted percentages of the total:
The accompanying consolidated balance sheets as of June 30, 2018 and 2017 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the New Jersey Devils:
As of June 30, 2018, approximately 590 full-time and part-time employees, who represent approximately 75% of the Company’s workforce, are subject to collective bargaining agreements (“CBAs”). As of June 30, 2018, approximately 4% of the Company’s workforce that is subject to a CBA is covered by a CBA that is expired. In addition, as of June 30, 2018, approximately 87% of the Company’s workforce that is subject to a CBA is covered by a CBA that expires within the next fiscal year. |
Interim Financial Information |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interim Financial Information (Unaudited) | Interim Financial Information (Unaudited) The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2018 and 2017:
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Schedule of PY Quarterly Financial Information |
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Schedule II |
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SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands)
_____________________________ (a) Primarily reflects write-offs of uncollectible amounts. |
Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. See Note 3 for a discussion of rights fees prior to the Distribution Date recognized as revenues by MSG from the licensing of team-related programming to the Company. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amount of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals and other liabilities. In addition, estimates are used in revenue recognition, income tax benefit (expense), performance and share-based compensation, depreciation and amortization, litigation matters and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the following conditions are satisfied: (a) persuasive evidence of a sales arrangement exists, (b) delivery occurs or services are rendered, (c) the sales price is fixed or determinable and (d) collectability is reasonably assured. The Company earns affiliation fee revenue from the cable, satellite, telephone and other platforms that carry its programming networks. The Company’s programming networks are delivered throughout the term of the agreements and the Company recognizes this revenue in the period that the programming networks are provided. The Company also earns advertising revenue, which is typically recognized when the advertisements are aired. In certain advertising sales arrangements, the Company guarantees specified viewer ratings for its programming. For these types of transactions, a portion of such revenue is deferred if the guaranteed viewer ratings are not met and is subsequently recognized either when the Company provides the required additional advertising time, the guarantee obligation contractually expires or additional performance requirements become remote. Gross versus Net Revenue Recognition The Company reports revenue on a gross or net basis based on management’s assessment of whether the Company acts as a principal or agent in the transaction. To the extent the Company acts as the principal, revenue is reported on a gross basis. The determination of whether the Company acts as a principal or an agent in a transaction is based on an evaluation of several qualitative factors. When the Company acts as an agent, revenue is reported on a net basis. The Company has an advertising sales representation agreement with MSG that provides for MSG to act as its advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on its behalf for a commission. Generally, the Company reports advertising revenue on a gross basis. Nonmonetary Transactions The Company enters into nonmonetary transactions that involve the exchange of goods or services, such as advertising and promotional benefits, for other goods or services. Such transactions are measured and recorded at the fair value of the goods or services surrendered unless the goods or services received have a more readily determinable fair value. In addition, the Company enters into other monetary transactions in which nonmonetary consideration is also included, and the transaction is recorded at fair value. If the fair values cannot be determined for either the asset(s) surrendered or received within reasonable limits, then the nonmonetary transaction is measured and recorded at the book value of the item(s) surrendered which typically is zero. |
Direct Operating Expenses | Direct Operating Expenses Direct operating expenses primarily represent media rights fees, and other direct programming and production costs, such as the salaries of on-air personalities, producers, directors, technicians, writers and other creative staff, as well as expenses associated with location costs, remote facilities and maintaining studios, origination, and transmission facilities. The professional team media rights acquired under media rights agreements to telecast various sporting events and other programming for exhibition on MSG Networks are typically expensed on a straight-line basis over the applicable annual contract or license period. |
Advertising Expenses | Advertising Expenses Advertising costs are typically charged to expense when incurred. The Company incurs advertising expenses for services rendered by third parties, most of which are related to the utilization of advertising and promotional benefits by the Company, with an equal amount being recognized as revenue when the benefits are realized. Total advertising costs classified in selling, general and administrative expenses were $11,229, $11,765, and $10,540 for the years ended June 30, 2018, 2017 and 2016, respectively. |
Income Taxes | Income Taxes The Company’s provision for income taxes is based on current period income, changes in deferred tax assets and liabilities and changes in estimates with regard to uncertain tax positions. Deferred tax assets are subject to an ongoing assessment of realizability. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the realization of its deductible temporary differences. If such estimates and related assumptions change in the future, the Company may be required to record valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company’s consolidated statements of operations. The Company measures its deferred tax liability with regard to MSGN Holdings L.P. (“MSGN L.P.”), an indirect wholly-owned subsidiary of the Company through which the Company conducts substantially all of its operations, based on the difference between the tax basis and the carrying amount for financial reporting purposes; this is commonly referred to as the outside basis difference. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. The Company accounts for investment tax credits using the “flow-through” method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. |
Share-based Compensation | Share-based Compensation The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units (“RSUs”) granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date. The Company has elected to recognize share-based compensation cost for graded vesting awards with only service conditions on a straight-line basis over the requisite service period for the entire award. The Company accounts for forfeitures as they occur. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets. The Company presents the change in these book cash overdrafts as cash flows from operating activities. |
Accounts Receivable | Accounts Receivable Accounts receivable is recorded at net realizable value. The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. The allowance for doubtful accounts is estimated based on the Company’s analysis of receivables aging, specific identification of certain receivables that are at risk of not being paid, past collection experience and other factors. The Company’s allowance for doubtful accounts was $509 and $594 as of June 30, 2018 and 2017, respectively. |
Long-Lived and Indefinite-Lived Assets | Long-Lived and Indefinite-Lived Assets The Company’s long-lived and indefinite-lived assets consist of goodwill, amortizable intangible assets, and property and equipment. Goodwill has an indefinite useful life and is not amortized. Identifiable intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Property and equipment is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to leasehold improvements, amortized over the shorter of the lease term or the asset’s estimated useful life. The useful lives of the Company’s long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws. Impairment of Long-Lived and Indefinite-Lived Assets In assessing the recoverability of the Company’s long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve significant uncertainties and judgments and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets. Goodwill is tested annually for impairment as of August 31st and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company would not need to perform the two-step impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment then the first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination. The Company has one reporting unit for evaluating goodwill impairment. For other long-lived assets, including intangible assets that are amortized, the Company evaluates assets for recoverability when there is an indication of potential impairment. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value. |
Contingencies | Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Defined Benefit Pension Plans and Other Postretirement Benefit Plan | Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 12, the Company has both funded and unfunded defined benefit plans, as well as a contributory welfare plan, covering certain full-time employees and retirees. The expense recognized by the Company is determined using certain assumptions, including the expected long-term rate of return, discount rate and rate of compensation increases, among others. The Company recognizes the funded status of its defined benefit pension and other postretirement plans (other than multiemployer plans) as an asset or liability in the consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). |
Earnings Per Common Share | Earnings (Loss) Per Common Share Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of RSUs and exercise of stock options (see Note 13) only in the periods in which such effect would have been dilutive. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This standard was early adopted by the Company in the first quarter of fiscal year 2018, and was applied retrospectively. The adoption of this standard resulted in the non-service cost components of net periodic benefit cost to be presented separately from the service cost component, and the non-service cost components to no longer be included in the subtotal for operating income in the consolidated statements of operations. The presentation of the service cost component of net periodic benefit cost remains unchanged within selling, general and administrative expenses and direct operating expenses in the consolidated statements of operations. As this standard was applied retrospectively, the Company reclassified $1,633 and $2,044 of net periodic benefit cost from selling, general and administrative expenses and direct operating expenses to a separate line item within other income (expense) in the accompanying consolidated statements of operations for the years ended June 30, 2017 and 2016, respectively. In February 2018, the FASB issued ASU No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard was early adopted by the Company in the third quarter of fiscal year 2018. The adoption of this standard resulted in a reclassification of $1,391 from accumulated other comprehensive loss to accumulated deficit for the stranded tax effects resulting from the reduction of the Company’s deferred tax assets related to its pension plans and other postretirement benefit plan upon the enactment of the new tax legislation, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). See Note 16 for more information. |
Reclassification, Policy [Policy Text Block] | The adoption of this standard resulted in a reclassification of $1,391 from accumulated other comprehensive loss to accumulated deficit for the stranded tax effects resulting from the reduction of the Company’s deferred tax assets related to its pension plans and other postretirement benefit plan upon the enactment of the new tax legislation, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). As this standard was applied retrospectively, the Company reclassified $1,633 and $2,044 of net periodic benefit cost from selling, general and administrative expenses and direct operating expenses to a separate line item within other income (expense) in the accompanying consolidated statements of operations for the years ended June 30, 2017 and 2016 |
Recently Issued Acounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 for all entities by one year. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which provides clarification on the implementation guidance on principal versus agent considerations outlined in ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which finalized amendments to identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which clarifies assessing collectibility, noncash consideration, presentation of sales taxes, completed contracts and contract modifications at transition. The Company will adopt the standard in the first quarter of fiscal year 2019, using the modified retrospective approach. The Company has substantially completed its evaluation of the impact of the standard and does not expect the adoption to have a material impact on its consolidated revenues. Accordingly, the Company does not expect to record a material adjustment to opening accumulated deficit upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the current guidance in ASC Topic 840, Leases. This ASU requires the recognition of lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The amended guidance also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, which provides amendments and clarifications to ASU No. 2016-02 based on the FASB interaction with stakeholders. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which amends Leases (Topic 842) to (i) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (ii) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. This standard will be effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which amends ASC Topic 230, Statement of Cash Flows, to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows by adding or clarifying guidance on eight specific cash flow issues. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019 and requires the retrospective approach upon adoption. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which will effect various areas of accounting including, but not limited to, goodwill and consolidation. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The standard is to be applied prospectively. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill impairment by eliminating the requirement of performing a hypothetical purchase price allocation. Instead, impairment will be measured using the difference between the carrying amount and fair value of the reporting unit. The amended guidance also eliminates the requirement for any reporting unit with a zero or a negative carrying amount to perform a qualitative assessment and will require disclosure of the amount of goodwill allocated to each reporting unit with a zero or a negative carrying amount of net assets. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied prospectively. Based on the Company’s most recent annual goodwill impairment test completed in fiscal year 2018, the adoption of this guidance is not expected to have any initial impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting, which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. This standard will be effective for the Company beginning in the first quarter of fiscal year 2019. The standard is to be applied prospectively to an award modified on or after the adoption date. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Discontinued Operations Discontinued Operations (Tables) |
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Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | Operating results related to discontinued operations are summarized below:
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Computation of Earnings Per Common Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Weighted-Average Shares Used in Calculation of Basic and Diluted EPS | The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2019 through 2023 to be as follows:
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Property and Equipment (Tables) |
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Property, Plant and Equipment | As of June 30, 2018 and 2017, property and equipment consisted of the following assets:
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Debt Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | As of June 30, 2018, the principal repayments required under the Term Loan Facility are as follows:
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Schedule of Debt | The following table summarizes the presentation of the Term Loan Facility and the related deferred financing costs in the accompanying consolidated balance sheets as of June 30, 2018 and June 30, 2017:
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Debt Financing Cost | In addition, the Company has deferred financing costs related to the Revolving Credit Facility recorded in the accompanying consolidated balance sheets as summarized in the following table:
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Operating Leases (Tables) |
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of June 30, 2018, future minimum rental payments under leases having noncancelable initial lease terms in excess of one year are as follows:
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Commitments and Contingencies (Tables) |
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Contractual Obligation, Fiscal Year Maturity Schedule | As of June 30, 2018, future cash payments required under contracts entered into by the Company in the normal course of business are as follows:
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets Measured on Recurring Basis | The following table presents for each of these hierarchy levels, the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents:
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Pension Plans and Other Postretirement Benefit Plan (Tables) |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status | The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2018 and 2017 based upon actuarial valuations as of those measurement dates.
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Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets as of June 30, 2018 and 2017 consist of:
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Schedule of Net Periodic Benefit Cost Not yet Recognized | Accumulated other comprehensive loss, before tax, as of June 30, 2018 and 2017 consists of the following amounts that have not yet been recognized in net periodic benefit cost:
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Schedule of Net Periodic Benefit Cost | Components of net periodic benefit cost for the years ended June 30, 2018, 2017 and 2016 are as follows:
(a) Reflects amounts reclassified from accumulated other comprehensive loss to other components of net periodic benefit cost in the accompanying consolidated statements of operations. Net periodic benefit cost presented in the table above for the year ended June 30, 2016 includes $1,963 that was included in loss from discontinued operations in the accompanying consolidated statement of operations. |
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2018, 2017 and 2016 are as follows:
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Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2018 and 2017 are as follows:
Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2018, 2017 and 2016 are as follows:
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Schedule of Effect of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rates | Assumed healthcare cost trend rates are also a key assumption used for the amounts reported for the Postretirement Plan. A one percentage point change in assumed healthcare cost trend rates would have the following effects:
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Schedule of Allocation of Plan Assets | The weighted-average asset allocation of the Union Plan’s assets at June 30, 2018 and 2017 was as follows:
(a) The Company’s target allocation for pension plan assets is 80% fixed income securities and 20% cash equivalents as of June 30, 2018. |
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Schedule of Changes in Fair Value of Plan Assets | The fair value of the Union Plan’s assets at June 30, 2018 and 2017 by asset class are as follows:
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Schedule of Expected Benefit Payments | The following table presents estimated future fiscal year benefit payments for the MSGN Pension Plans and Postretirement Plan:
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Defined Contribution Plan Disclosures [Table Text Block] | Expenses related to the Savings Plans included in the accompanying consolidated statements of operations for the years ended June 30, 2018, 2017 and 2016 are as follows:
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Share-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation, Stock Options, Activity | The following table summarizes activity relating to holders of the Company’s NQSOs for the year ended June 30, 2018:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
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Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes activity relating to holders (including Company and MSG employees) of the Company’s RSUs for the year ended June 30, 2018:
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Income Taxes Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax (benefit) expense attributable to continuing operations is comprised of the following components:
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Schedule of Effective Income Tax Rate Reconciliation | The income tax (benefit) expense attributable to continuing operations differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items:
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Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities included in the accompanying consolidated balance sheets as of June 30, 2018 and 2017 are as follows:
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Schedule of Unrecognized Tax Benefits Rollforward | The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits associated with the Company’s uncertain tax positions:
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Concentration of Risk (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor | Revenues from continuing operations in the accompanying consolidated statements of operations for the years ended June 30, 2018, 2017 and 2016 include amounts from the following individual customers, which accounted for the noted percentages of the total:
Accounts receivable, net on the accompanying consolidated balance sheets as of June 30, 2018 and 2017 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance:
The accompanying consolidated balance sheets as of June 30, 2018 and 2017 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the New Jersey Devils:
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Interim Financial Information(Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 |
Jun. 30, 2017 |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interim Financial Information (Unaudited) | Interim Financial Information (Unaudited) The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2018 and 2017:
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Schedule of PY Quarterly Financial Information |
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Schedule II (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands)
_____________________________ (a) Primarily reflects write-offs of uncollectible amounts. |
Description of Business and Basis of Presentation (Details) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018
$ / shares
|
Jun. 30, 2017
$ / shares
|
Sep. 21, 2015
$ / shares
shares
|
|
Class of Stock [Line Items] | |||
Percentage of ownership of business distributed to stockholders in Spin Off | 100.00% | ||
Number of reportable segments | 1 | ||
Regional Sports and Entertainment Networks | 2 | ||
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares received after Distribution | 1 | ||
Shares ownership of the common stock required to received one share of the new common stock in Distribution at record Date | 3 | ||
Common stock, par value (dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares received after Distribution | 1 | ||
Shares ownership of the common stock required to received one share of the new common stock in Distribution at record Date | 3 | ||
Common stock, par value (dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Advertising Costs, Policy (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Accounting Policies [Abstract] | |||
Advertising Expense | $ 11,229 | $ 11,765 | $ 10,540 |
Summary of Significant Accounting Policies Accounts Receivable (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2015 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 509 | $ 594 | $ 838 | $ 273 |
Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands |
12 Months Ended | 30 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2018 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other components of net periodic benefit cost | $ 1,710 | $ 1,633 | $ 2,044 | |
Reclassification of Stranded Tax Effects | $ 0 | |||
Accounting Standards Update 2017-07 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other components of net periodic benefit cost | $ 1,633 | $ 2,044 | ||
Accounting Standards Update 2018-02 [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Reclassification of Stranded Tax Effects | $ 1,391 |
Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 0 | ||||||
Revenues | 0 | $ 0 | $ 150,381 | ||||
Direct operating expenses | 0 | 0 | 71,320 | ||||
Selling general and administrative expenses | 0 | 120 | 58,283 | ||||
Depreciation and amortization | 0 | 0 | 23,772 | ||||
Operating loss | 0 | (120) | (2,994) | ||||
Equity in earnings (loss) of equity-method investments | 0 | 0 | 2,679 | ||||
Interest income | 0 | 0 | 635 | ||||
Interest expense | 0 | 0 | (540) | ||||
Loss from discontinued operation, before income tax | 0 | (120) | (220) | ||||
Income tax expense | 0 | 0 | (155,444) | ||||
Loss from discontinued operations, net of taxes | $ 0 | $ 0 | $ 0 | $ (120) | 0 | (120) | (155,664) |
Payments of Capital Distribution | $ 0 | $ 0 | $ 1,467,093 |
Computation of Earnings Per Common Share (Details) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Earnings Per Share [Abstract] | |||
Weighted-average shares for basic EPS (in shares) | 75,381 | 75,213 | 75,152 |
Dilutive effect of shares issuable under share-based compensation plans (in shares) | 439 | 347 | 375 |
Weighted-average shares for diluted EPS (in shares) | 75,820 | 75,560 | 75,527 |
Anti-dilutive shares | 519 | 162 | 0 |
Goodwill and Intangible Assets (Details) $ in Thousands |
3 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Net | $ 37,203 | $ 40,663 | |
Affiliate relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 83,044 | 83,044 | |
Accumulated Amortization | (45,841) | (42,381) | |
Net | 37,203 | 40,663 | |
Amortization expense | $ 3,460 | $ 3,460 | $ 3,460 |
Finite-Lived Intangible Asset, Useful Life | 24 years |
Goodwill and Intangible Assets (Schedule of Expected Aggregat Annual Amortization) (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
Fiscal year ending June 30, 2019 | $ 3,460 |
Fiscal year ending June 30, 2020 | 3,460 |
Fiscal year ending June 30, 2021 | 3,460 |
Fiscal year ending June 30, 2022 | 3,460 |
Fiscal year ending June 30, 2023 | $ 3,460 |
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Property, Plant and Equipment [Abstract] | |||
Cost, Depreciation, Amortization and Depletion | $ 5,878 | $ 6,836 | $ 11,123 |
Debt Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,196,250 | $ 1,321,250 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Fiscal Year ending June 30, 2019 | 75,000 | |
Fiscal Year ending June 30, 2020 | 114,375 | |
Fiscal Year ending June 30, 2021 | 1,006,875 | |
Long-term Debt, Gross | $ 1,196,250 |
Debt Schedule of Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,196,250 | $ 1,321,250 |
Debt Issuance Costs, Gross | (5,819) | (8,405) |
Debt outstanding, net of deferred financing costs per ASU 2015-03 | 1,190,431 | 1,312,845 |
Current portion of long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 75,000 | 75,000 |
Debt Issuance Costs, Gross | (2,586) | (2,586) |
Debt outstanding, net of deferred financing costs per ASU 2015-03 | 72,414 | 72,414 |
Long-term debt, net of current portion [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,121,250 | 1,246,250 |
Debt Issuance Costs, Gross | (3,233) | (5,819) |
Debt outstanding, net of deferred financing costs per ASU 2015-03 | $ 1,118,017 | $ 1,240,431 |
Debt Debt Financing Costs (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | $ (5,819) | $ (8,405) |
Other Current Assets [Member] | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | 417 | 417 |
Other Noncurrent Assets [Member] | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | $ 521 | $ 938 |
Operating Leases (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Leases, Operating [Abstract] | |||
Maximum Expiration Date for Operating Leases | 2024 | ||
Rent expense | $ 5,474 | $ 7,184 | $ 10,393 |
Sublease income | $ 149 | $ 2,531 | $ 2,638 |
Operating Leases Schedule of Future Minimum Rental Payments (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Fiscal year ending June 30, 2019 | $ 5,749 |
Fiscal year ending June 30, 2020 | 5,695 |
Fiscal year ending June 30, 2021 | 4,285 |
Fiscal year ending June 30, 2022 | 3,681 |
Fiscal year ending June 30, 2023 | 3,293 |
Thereafter | 2,744 |
Total future minimum rental payments | $ 25,447 |
Commitments and Contingencies (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Obligations and Off Balance Sheet Arrangements [Abstract] | |
Fiscal year ending June 30, 2019 | $ 247,289 |
Fiscal year ending June 30, 2020 | 252,632 |
Fiscal year ending June 30, 2021 | 255,949 |
Fiscal year ending June 30, 2022 | 248,349 |
Fiscal year ending June 30, 2023 | 256,811 |
Thereafter | 3,084,981 |
Total contractual obligations | $ 4,346,011 |
Pension Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Amounts Recognized in Consolidated Balance Sheet [Abstract] | ||
Non-current liabilities (included in defined benefit and other postretirement obligations) | $ (28,170) | $ (29,979) |
Pension Plan [Member] | ||
Amounts Recognized in Consolidated Balance Sheet [Abstract] | ||
Current liabilities (included in accrued employee related costs) | (1,015) | (930) |
Non-current liabilities (included in defined benefit and other postretirement obligations) | (24,139) | (26,455) |
Liability, Defined Benefit Plan | (25,154) | (27,385) |
Other Postretirement Benefit Plan | ||
Amounts Recognized in Consolidated Balance Sheet [Abstract] | ||
Current liabilities (included in accrued employee related costs) | (138) | (99) |
Non-current liabilities (included in defined benefit and other postretirement obligations) | (4,031) | (3,524) |
Liability, Defined Benefit Plan | $ (4,169) | $ (3,623) |
Pension Schedule of Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Pension Plan [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Actuarial loss | $ (8,956) | $ (11,034) |
Prior service credit | 0 | 0 |
Total amounts not yet recognized in net periodic benefit cost | (8,956) | (11,034) |
Other Postretirement Benefit Plan | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Actuarial loss | (472) | (214) |
Prior service credit | 10 | 24 |
Total amounts not yet recognized in net periodic benefit cost | $ (462) | $ (190) |
Pension Plans and Other Postretirement Benefit Plan Pension Plans and Other Postretirement Benefit Plan Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 40,782 | $ 42,190 |
Union Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 2,700 |
Pension Schedule of Health Care Cost Trend Rates (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
One Percentage Point Increase | $ 28 | $ 24 | $ 63 |
One Percentage Point Decrease | (24) | (21) | $ (55) |
One Percentage Point Increase, Postretirement Benefit Obligation | 482 | 448 | |
One Percentage Point Decrease, Postretirement Benefit Obligation | $ (415) | $ (382) |
Schedule of Expected Benefit Payments (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Pension Plan [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
Fiscal year ending June 30, 2019 | $ 1,690 |
Fiscal year ending June 30, 2020 | 1,900 |
Fiscal year ending June 30, 2021 | 2,170 |
Fiscal year ending June 30, 2022 | 2,350 |
Fiscal year ending June 30, 2023 | 2,440 |
Fiscal year ending June 30, 2024 - 2028 | 13,550 |
Other Postretirement Benefit Plan | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
Fiscal year ending June 30, 2019 | 140 |
Fiscal year ending June 30, 2020 | 188 |
Fiscal year ending June 30, 2021 | 242 |
Fiscal year ending June 30, 2022 | 267 |
Fiscal year ending June 30, 2023 | 315 |
Fiscal year ending June 30, 2024 - 2028 | $ 1,640 |
Pension Plans and Other Postretirement Benefit Plan Defined Contribution Plan (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Cost | $ 957 | $ 828 | $ 1,515 |
Continuing Operations [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Cost | 957 | 828 | 863 |
Discontinued Operations [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Cost | $ 0 | $ 0 | $ 652 |
Pension Plans and Other Postretirement Benefit Plan Multiemployer Plans (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Multiemployer Plans [Abstract] | |||
Multiemployer Plan, Contributions by Employer | $ 1,299 | $ 1,328 | $ 1,334 |
Share-Based Compensation Share-based Compensation - Narrative (Details) shares in Thousands |
12 Months Ended |
---|---|
Jun. 30, 2018
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based compensation plans | 2 |
Percentage of the original RSU grant value allocated to the Company's RSU awards in connection with the Distribution | 30.00% |
Percentage of the original RSU grant value allocated to the MSG RSU awards in connection with the Distribution | 70.00% |
StockConversioninDistribution | one-to-three distribution ratio (i.e., one share of MSG Class A Common Stock was issued for every three shares of the Company’s Class A Common Stock) |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
OutstandingRSUheldbyMSGemployees | There are no outstanding Company RSUs held by MSG employees, except for those employed by both MSG and the Company, as of June 30, 2018. |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
OptionSplitinDistribution | In connection with the Distribution, each option to purchase the Company’s Class A Common Stock became two options: one option to acquire MSG Class A Common Stock and one option to acquire the Company’s Class A Common Stock. |
Employee Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Number of Shares Authorized (in shares) | 12,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | NQSOs under the Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). |
Non Employee Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Number of Shares Authorized (in shares) | 300 |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | NQSOs under the Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). |
Non Employee Director Plan [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
StockConversioninDistribution | In connection with the Distribution, one share of MSG Class A Common Stock was issued under the MSG 2015 Non-Employee Director Plan in respect of every three RSUs outstanding under the Company’s Non-Employee Director Plan. |
Non-Performance Vesting [Member] | Non Employee Director Plan [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation Arrangement by Share-Based Payment Awards, Settlement Description | on the first business day after ninety days from the date the director’s service on the Board of Directors ceases or, if earlier, upon the director’s death. |
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 17,274,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||
Costs related to share-based compensation that were capitalized | $ 0 | ||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 2,814,000 | $ 1,714,000 | $ 12,206,000 |
Continuing Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 13,979,000 | $ 9,931,000 | 9,266,000 |
Discontinued Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Expense | $ 808,000 |
Share-Based Compensation Share-Based Compensation (Assumptions) (Details) |
3 Months Ended |
---|---|
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk Free Interest Rate, Fair Value Assumptions | 1.76% |
Expected Term, Fair Value Assumptions | 5 years 3 months |
Expected Volatility Rate, Fair Value Assumptions | 24.79% |
Stock Repurchase Program Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2016 |
Dec. 07, 2017 |
Oct. 27, 2014 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 713 | 1,336 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 13,850 | $ 100,027 | ||
Class A Common Stock [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | $ 500,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 136,165 |
Related Party Transactions (Ownership Percentage) (Details) - $ / shares |
Jun. 30, 2018 |
Jun. 30, 2017 |
Sep. 21, 2015 |
---|---|---|---|
Related Party Ownership Percentage [Line Items] | |||
Aggregate Voting Power Held By Related Party | 70.00% | ||
Class B Common Stock [Member] | |||
Related Party Ownership Percentage [Line Items] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Percentage of Common Stock Owned by Related Party | 100.00% | ||
Class A Common Stock [Member] | |||
Related Party Ownership Percentage [Line Items] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Percentage of Common Stock Owned by Related Party | 3.20% |
Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Related party transactions | |||
Revenue from Related Party | $ 230 | $ 0 | $ 162,269 |
Rights Fees | 141,726 | 135,191 | 130,841 |
Origination, master control and technical services | 6,138 | 6,111 | 5,872 |
Commissions | 13,011 | 13,585 | 13,763 |
Other operating expenses | 9,945 | 8,925 | 4,934 |
Income (loss) from equity method investments | $ 0 | $ 0 | 2,679 |
Continuing Operations [Member] | |||
Related party transactions | |||
Revenue from Related Party | 161,588 | ||
Operating expenses | 11,050 | ||
Discontinued Operations [Member] | |||
Related party transactions | |||
Revenue from Related Party | 33,559 | ||
Operating expenses | 1,367 | ||
Interest Income, Related Party | 635 | ||
Income (loss) from equity method investments | $ 2,679 |
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Current expense: | |||
Federal | $ 64,021 | $ 81,964 | $ 71,632 |
State and other | 30,651 | 31,977 | 27,977 |
Current expense total | 94,672 | 113,941 | 99,609 |
Deferred benefit: | |||
Federal | (109,145) | (4,120) | (4,353) |
State and other | (1,851) | (1,327) | (14,252) |
Deferred benefit total | (110,996) | (5,447) | (18,605) |
Tax Benefit Relating to Uncertain Tax Positions | (14) | (18) | (33) |
Income tax (benefit) expense | $ (16,338) | $ 108,476 | $ 80,971 |
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Federal tax expense at statutory federal rate | $ 76,470 | $ 96,578 | $ 85,495 |
State and local income taxes, net of federal benefit | 21,372 | 19,489 | 17,709 |
Change in estimated applicable corporate tax rate used to determine deferred taxes | (497) | 85 | (12,717) |
Impact of Tax Act on deferred taxes | (106,446) | 0 | 0 |
Domestic production activities tax deduction | (3,585) | (7,998) | (6,329) |
Tax Benefit Relating to Uncertain Tax Positions | (14) | (18) | (33) |
Tax return to book provision adjustments | (3,411) | (208) | (3,271) |
Nondeductible expenses and other | (227) | 548 | 117 |
Income tax (benefit) expense | $ (16,338) | $ 108,476 | $ 80,971 |
Income Taxes Tax Cuts and Jobs Act Reform (Details) |
12 Months Ended |
---|---|
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
EffectiveIncomeTaxRateReconciliationBookingRateDescription | the Company used a blended statutory federal rate of 28% (based upon the number of days for the fiscal year ended 2018 that it will be taxed at the former rate of 35% and the number of days it will be taxed at the new rate of 21%) to calculate its most recent effective tax rate. |
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Compensation and benefit plans | $ 4,542 | $ 4,210 |
Net noncurrent deferred tax liability | (241,417) | (351,854) |
Investment in MSGN L.P. [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Investment in MSGN L.P. | $ (245,959) | $ (356,064) |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jun. 30, 2017 |
---|---|---|
Current Income Tax Liability [Line Items] | ||
Prepaid income taxes | $ 1,134 | $ 14,322 |
Income taxes payable | 8,460 | 11,483 |
State and Local Jurisdiction [Member] | ||
Current Income Tax Liability [Line Items] | ||
Prepaid income taxes | 1,134 | 14,322 |
Federal [Member] | ||
Current Income Tax Liability [Line Items] | ||
Income taxes payable | $ 8,460 | $ 11,483 |
Income Taxes (Reconciliation of Unrecognized Tax Benefits for Uncertain Tax Positions) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits beginnning balance | $ 14 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (14) | ||
Unrecognized tax benefits ending balance | 0 | $ 14 | |
Tax Benefit Relating to Uncertain Tax Positions | $ (14) | $ (18) | $ (33) |
Income Taxes Cash Taxes Paid (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Income Taxes Paid, Net | $ 84,524 | $ 97,164 | $ 192,315 |
AdditionalTaxPaidonAcceleratedRevenue | $ 120,000 |
Interim Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 171,405 | $ 186,568 | $ 181,222 | $ 157,456 | $ 162,881 | $ 183,247 | $ 175,646 | $ 153,578 | $ 696,651 | $ 675,352 | $ 658,198 |
Operating expenses | 90,770 | 105,984 | 105,636 | 81,103 | 86,530 | 99,773 | 95,501 | 78,651 | 383,493 | 360,455 | |
Operating income | 80,635 | 80,584 | 75,586 | 76,353 | 76,351 | 83,474 | 80,145 | 74,927 | 313,158 | 314,897 | 275,630 |
Income from continuing operations | 39,691 | 44,155 | 43,255 | 40,361 | 288,862 | 167,462 | 163,298 | ||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | (120) | 0 | (120) | (155,664) | ||||
Net income | $ 45,202 | $ 46,935 | $ 155,568 | $ 41,157 | $ 39,691 | $ 44,155 | $ 43,255 | $ 40,241 | $ 288,862 | $ 167,342 | $ 7,634 |
Income from Continuing Operations, Per Basic Share | $ 0.53 | $ 0.59 | $ 0.58 | $ 0.54 | $ 3.83 | $ 2.23 | $ 2.17 | ||||
Loss from discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (2.07) | ||||
Earnings Per Share, Basic | $ 0.60 | $ 0.62 | $ 2.06 | $ 0.55 | 0.53 | 0.59 | 0.58 | 0.54 | 3.83 | 2.22 | 0.10 |
Income from Continuing Operations, Per Diluted Share | 0.52 | 0.58 | 0.57 | 0.54 | 3.81 | 2.22 | 2.16 | ||||
Loss from discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (2.06) | ||||
Earnings Per Share, Diluted | $ 0.60 | $ 0.62 | $ 2.05 | $ 0.54 | $ 0.52 | $ 0.58 | $ 0.57 | $ 0.53 | $ 3.81 | $ 2.21 | $ 0.10 |
Schedule II (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ (594) | $ (838) | $ (273) | ||
(Additions) Deductions Charged to Costs and Expenses | (17) | 242 | (791) | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | 0 | 0 | (52) | ||
Deductions | [1] | 102 | 2 | 278 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ (509) | $ (594) | $ (838) | ||
|
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