☑ | |||||
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 84-3755666 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Two Penn Plaza | New York,NY | 10121 | |||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock | MSGE | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Class A Common Stock par value $0.01 per share | — | 27,093,988 | ||||||
Class B Common Stock par value $0.01 per share | — | 6,866,754 |
Explanatory Note | ||
Part I—Item 1A. | Risk Factors | |
Part II—Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Part II—Item 8. | Financial Statements and Supplementary Data | |
Part II—Item 9A. | Controls and Procedures | |
Part IV—Item 15. | Exhibits and Financial Statement Schedules |
Base Period 4/20/20 | 6/30/20 | 6/30/21 | ||||||||||||||||||||||||||||||
Madison Square Garden Entertainment Corp. | $ | 100.00 | $ | 114.80 | $ | 128.53 | ||||||||||||||||||||||||||
Russell 3000 Index | 100.00 | 111.76 | 161.11 | |||||||||||||||||||||||||||||
Bloomberg Americas Entertainment Index | 100.00 | 123.07 | 283.23 |
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 647,510 | $ | 685,797 | $ | (38,287) | (6) | % | ||||||||||||||||||
Direct operating expenses | 262,859 | 282,837 | (19,978) | (7) | % | |||||||||||||||||||||
Selling, general and administrative expenses | 115,339 | 100,829 | 14,510 | 14 | % | |||||||||||||||||||||
Depreciation and amortization | 7,335 | 7,163 | 172 | 2 | % | |||||||||||||||||||||
Operating income (loss) | $ | 261,977 | $ | 294,968 | $ | (32,991) | (11) | % |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 647,510 | $ | 685,797 | $ | (38,287 | ) | (6 | )% | |||||||
Direct operating expenses | 262,859 | 282,837 | (19,978 | ) | (7 | )% | ||||||||||
Selling, general and administrative expenses | 115,339 | 100,829 | 14,510 | 14 | % | |||||||||||
Depreciation and amortization | 7,335 | 7,163 | 172 | 2 | % | |||||||||||
Operating income (loss) | $ | 261,977 | $ | 294,968 | $ | (32,991 | ) | (11 | )% |
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Operating income | $ | 261,977 | $ | 294,968 | $ | (32,991) | (11) | % | ||||||||||||||||||
Share-based compensation | 17,667 | 19,235 | ||||||||||||||||||||||||
Depreciation and amortization | 7,335 | 7,163 | ||||||||||||||||||||||||
Adjusted operating income | $ | 286,979 | $ | 321,366 | $ | (34,387) | (11) | % |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Operating income | $ | 261,977 | $ | 294,968 | $ | (32,991 | ) | (11 | )% | |||||||
Share-based compensation | 17,667 | 19,235 | ||||||||||||||
Depreciation and amortization | 7,335 | 7,163 | ||||||||||||||
Adjusted operating income | $ | 286,979 | $ | 321,366 | $ | (34,387 | ) | (11 | )% |
Years Ended June 30, | Change (a) | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 180,401 | $ | 762,936 | $ | (582,535) | (76) | % | ||||||||||||||||||
Direct operating expenses | 171,924 | 508,122 | (336,198) | (66) | % | |||||||||||||||||||||
Selling, general and administrative expenses (“SG&A”) | 322,714 | 344,637 | (21,923) | (6) | % | |||||||||||||||||||||
Depreciation and amortization | 114,664 | 104,899 | 9,765 | 9 | % | |||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 105,817 | (105,817) | (100) | % | |||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements (b) | — | (240,783) | 240,783 | 100 | % | |||||||||||||||||||||
Restructuring charges (b) | 21,299 | — | 21,299 | NM | ||||||||||||||||||||||
Operating loss | (450,200) | (59,756) | (390,444) | NM | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Loss in equity method investments | (6,858) | (4,433) | (2,425) | (55) | % | |||||||||||||||||||||
Interest income (expense), net | (33,825) | 15,693 | (49,518) | NM | ||||||||||||||||||||||
Miscellaneous income, net | 51,062 | 38,855 | 12,207 | 31 | % | |||||||||||||||||||||
Loss from operations before income taxes | (439,821) | (9,641) | (430,180) | NM | ||||||||||||||||||||||
Income tax benefit (expense) | 9,371 | (5,046) | 14,417 | NM | ||||||||||||||||||||||
Net loss | (430,450) | (14,687) | (415,763) | NM | ||||||||||||||||||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269) | (30,387) | 14,118 | 46 | % | |||||||||||||||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099) | (1,534) | (565) | (37) | % | |||||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (412,082) | $ | 17,234 | $ | (429,316) | NM |
Years Ended June 30, | Change (a) | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 180,401 | $ | 762,936 | $ | (582,535 | ) | (76 | )% | |||||||
Direct operating expenses | 171,924 | 508,122 | (336,198 | ) | (66 | )% | ||||||||||
Selling, general and administrative expenses (“SG&A”) | 322,714 | 344,637 | (21,923 | ) | (6 | )% | ||||||||||
Depreciation and amortization | 114,664 | 104,899 | 9,765 | 9 | % | |||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 105,817 | (105,817 | ) | (100 | )% | ||||||||||
Gain on disposal of assets held for sale and associated settlements (b) | — | (240,783 | ) | 240,783 | 100 | % | ||||||||||
Restructuring charges (b) | 21,299 | — | 21,299 | NM | ||||||||||||
Operating loss | (450,200 | ) | (59,756 | ) | (390,444 | ) | NM | |||||||||
Other income (expense): | ||||||||||||||||
Loss in equity method investments | (6,858 | ) | (4,433 | ) | (2,425 | ) | (55 | )% | ||||||||
Interest income (expense), net | 1,065 | 17,753 | (16,688 | ) | NM | |||||||||||
Miscellaneous income, net | 51,062 | 38,855 | 12,207 | 31 | % | |||||||||||
Loss from operations before income taxes | (404,931 | ) | (7,581 | ) | (397,350 | ) | NM | |||||||||
Income tax benefit (expense) | 9,371 | (5,046 | ) | 14,417 | NM | |||||||||||
Net loss | (395,560 | ) | (12,627 | ) | (382,933 | ) | NM | |||||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269 | ) | (30,387 | ) | 14,118 | 46 | % | |||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099 | ) | (1,534 | ) | (565 | ) | (37 | )% | ||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (377,192 | ) | $ | 19,294 | $ | (396,486 | ) | NM | |||||||
(a) | The consolidated statements of operations for Fiscal Year 2021 and the activities from April 18, 2020 to June 30, 2020 included on the statement of operations for Fiscal Year 2020 are presented on a consolidated basis, as the Company became a standalone public company on April 17, 2020. The financial information for the period of July 1, 2019 to April 17, 2020 that is included in the Company’s combined statements of operations for Fiscal Year 2020 was prepared on a standalone basis derived from the consolidated financial statements and accounting records of the Company’s former parent, MSG Sports, and is presented on the basis of carve-out financial statements as the Company was not a standalone public company prior to the Entertainment Distribution. In addition, the Company’s operating results were materially impacted during Fiscal Year 2021 and part of Fiscal Year 2020 by theCOVID-19 pandemic and government actions taken in response. See “— Introduction — Business Overview — Impact of theCOVID-19 Pandemic on Our Business” for more information. |
(b) | See “Business Segment Results - Entertainment” for a more detailed discussion of the company’s gain on disposal of assets held for sale and associated settlements and impairment for intangibles, long-lived assets, and goodwill in Fiscal Year 2020. |
Changes attributable to | Revenues | Direct operating expenses (b) | SG&A (c) | Depreciation and amortization | Impairment for intangibles, long-lived assets, and goodwill | Gain on disposal of assets held for sale and associated settlements | Restructuring charges | Operating loss | ||||||||||||||||||||||||||||||||||||||||||
Entertainment segment(a) | $ | (502,927) | $ | (285,554) | $ | (13,338) | $ | (4,147) | $ | — | $ | 240,783 | $ | 21,299 | $ | (461,970) | ||||||||||||||||||||||||||||||||||
Tao Group Hospitality segment (a) | (80,035) | (50,047) | (9,015) | 799 | (94,946) | — | — | 73,174 | ||||||||||||||||||||||||||||||||||||||||||
Purchase accounting adjustments | — | (1,027) | (6) | 13,113 | (10,871) | — | — | (1,209) | ||||||||||||||||||||||||||||||||||||||||||
Inter-segment eliminations | 427 | 430 | 436 | — | — | — | — | (439) | ||||||||||||||||||||||||||||||||||||||||||
$ | (582,535) | $ | (336,198) | $ | (21,923) | $ | 9,765 | $ | (105,817) | $ | 240,783 | $ | 21,299 | $ | (390,444) |
Changes attributable to | Revenues | Direct operating expenses (b) | SG&A (c) | Depreciation and amortization | Impairment for intangibles, long-lived assets, and goodwill | Gain on disposal of assets held for sale and associated settlements | Restructuring charges | Operating loss | ||||||||||||||||||||||||
Entertainment segment (a) | $ | (502,927 | ) | $ | (285,554 | ) | $ | (13,338 | ) | $ | (4,147 | ) | $ | — | $ | 240,783 | $ | 21,299 | $ | (461,970 | ) | |||||||||||
Tao Group Hospitality segment (a) | (80,035 | ) | (50,047 | ) | (9,015 | ) | 799 | (94,946 | ) | — | — | 73,174 | ||||||||||||||||||||
Purchase accounting adjustments | — | (1,027 | ) | (6 | ) | 13,113 | (10,871 | ) | — | — | (1,209 | ) | ||||||||||||||||||||
Inter-segment eliminations | 427 | 430 | 436 | — | — | — | — | (439 | ) | |||||||||||||||||||||||
$ | (582,535 | ) | $ | (336,198 | ) | $ | (21,923 | ) | $ | 9,765 | $ | (105,817 | ) | $ | 240,783 | $ | 21,299 | $ | (390,444 | ) | ||||||||||||
(a) | See “Business Segment Results” for a more detailed discussion of the operating results of our segments. |
(b) | Direct operating expenses primarily include: |
(c) | SG&A primarily consist of administrative costs, including compensation, professional fees, sales and marketing costs, including non-event related advertising expenses, and business development costs, as well as costs associated with the development of MSG Sphere, including technology and content development costs. |
Tao Group Hospitality Segment | Purchase accounting adjustments | Total | ||||||||||||||||||
Intangibles | $ | — | $ | 3,541 | $ | 3,541 | ||||||||||||||
Long-lived assets | 6,363 | 7,330 | 13,693 | |||||||||||||||||
Goodwill | 88,583 | — | 88,583 | |||||||||||||||||
$ | 94,946 | $ | 10,871 | $ | 105,817 |
Tao Group Hospitality Segment | Purchase accounting adjustments | Total | ||||||||||
Intangibles | $ | — | $ | 3,541 | $ | 3,541 | ||||||
Long-lived assets | 6,363 | 7,330 | 13,693 | |||||||||
Goodwill | 88,583 | — | 88,583 | |||||||||
$ | 94,946 | $ | 10,871 | $ | 105,817 | |||||||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Operating loss | $ | (450,200) | $ | (59,756) | $ | (390,444) | NM | |||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026) | — | ||||||||||||||||||||||||
Share-based compensation | 52,917 | 42,190 | ||||||||||||||||||||||||
Depreciation and amortization (a) | 114,664 | 104,899 | ||||||||||||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||||||||||||
Impairment of intangibles, long-lived assets and goodwill | — | 105,817 | ||||||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783) | ||||||||||||||||||||||||
Other purchase accounting adjustments | 3,334 | 4,367 | ||||||||||||||||||||||||
Adjusted operating loss | $ | (271,012) | $ | (43,266) | $ | (227,746) | NM |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Operating loss | $ | (450,200 | ) | $ | (59,756 | ) | $ | (390,444 | ) | NM | ||||||
Non-cash portion of arena license fees from MSG Sports | (13,026 | ) | — | |||||||||||||
Share-based compensation | 52,917 | 42,190 | ||||||||||||||
Depreciation and amortization (a) | 114,664 | 104,899 | ||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||
Impairment of intangibles, long-lived assets and goodwill | — | 105,817 | ||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783 | ) | |||||||||||||
Other purchase accounting adjustments | 3,334 | 4,367 | ||||||||||||||
Adjusted operating loss | $ | (271,012 | ) | $ | (43,266 | ) | $ | (227,746 | ) | NM | ||||||
NM | — Percentage is not meaningful |
(a) | Depreciation and amortization included purchase accounting adjustments of $25,567 and $12,454 for the years ended June 30, 2021 and 2020, respectively. The increase in purchase accounting adjustments related depreciation and amortization for Fiscal Year 2021 include $14,280 of accelerated amortization expense for certain Tao Group Hospitality venue management contracts that were converted to operating leases. |
Increase in adjusted operating loss of the Entertainment segment | $ | 210,655 | ||
Increase in adjusted operating loss of the Tao Group Hospitality segment | 16,652 | |||
Inter-segment eliminations | 439 | |||
$ | 227,746 | |||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 82,281 | $ | 585,208 | $ | (502,927) | (86) | % | ||||||||||||||||||
Direct operating expenses | 103,089 | 388,643 | (285,554) | (73) | % | |||||||||||||||||||||
Selling, general and administrative expenses | 268,705 | 282,043 | (13,338) | (5) | % | |||||||||||||||||||||
Depreciation and amortization | 80,142 | 84,289 | (4,147) | (5) | % | |||||||||||||||||||||
Restructuring charges | 21,299 | — | 21,299 | NM | ||||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783) | 240,783 | NM | ||||||||||||||||||||||
Operating income (loss) | $ | (390,954) | $ | 71,016 | $ | (461,970) | NM | |||||||||||||||||||
Reconciliation to adjusted operating loss: | ||||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026) | — | ||||||||||||||||||||||||
Share-based compensation | 47,633 | 41,227 | ||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 84,289 | ||||||||||||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783) | ||||||||||||||||||||||||
Adjusted operating loss | $ | (254,906) | $ | (44,251) | $ | (210,655) | NM |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 82,281 | $ | 585,208 | $ | (502,927 | ) | (86 | )% | |||||||
Direct operating expenses | 103,089 | 388,643 | (285,554 | ) | (73 | )% | ||||||||||
Selling, general and administrative expenses | 268,705 | 282,043 | (13,338 | ) | (5 | )% | ||||||||||
Depreciation and amortization | 80,142 | 84,289 | (4,147 | ) | (5 | )% | ||||||||||
Restructuring charges | 21,299 | — | 21,299 | NM | ||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783 | ) | 240,783 | NM | |||||||||||
Operating income (loss) | $ | (390,954 | ) | $ | 71,016 | $ | (461,970 | ) | NM | |||||||
Reconciliation to adjusted operating loss: | ||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026 | ) | — | |||||||||||||
Share-based compensation | 47,633 | 41,227 | ||||||||||||||
Depreciation and amortization | 80,142 | 84,289 | ||||||||||||||
Restructuring charges | 21,299 | — | ||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783 | ) | |||||||||||||
Adjusted operating loss | $ | (254,906 | ) | $ | (44,251 | ) | $ | (210,655 | ) | NM | ||||||
NM |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended June 30, | Change | |||||||||||||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||||||||||||
Revenues | $ | 100,166 | $ | 180,201 | $ | (80,035) | (44) | % | ||||||||||||||||||
Direct operating expenses | 66,591 | 116,638 | (50,047) | (43) | % | |||||||||||||||||||||
Selling, general and administrative expenses | 54,034 | 63,049 | (9,015) | (14) | % | |||||||||||||||||||||
Depreciation and amortization | 8,955 | 8,156 | 799 | 10 | % | |||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | (94,946) | (100) | % | |||||||||||||||||||||
Operating loss | $ | (29,414) | $ | (102,588) | $ | 73,174 | 71 | % | ||||||||||||||||||
Reconciliation to adjusted operating income (loss): | ||||||||||||||||||||||||||
Share-based compensation | 5,284 | 963 | ||||||||||||||||||||||||
Depreciation and amortization | 8,955 | 8,156 | ||||||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | ||||||||||||||||||||||||
Adjusted operating income (loss) | $ | (15,175) | $ | 1,477 | $ | (16,652) | NM |
Years Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Amount | Percentage | |||||||||||||
Revenues | $ | 100,166 | $ | 180,201 | $ | (80,035 | ) | (44 | )% | |||||||
Direct operating expenses | 66,591 | 116,638 | (50,047 | ) | (43 | )% | ||||||||||
Selling, general and administrative expenses | 54,034 | 63,049 | (9,015 | ) | (14 | )% | ||||||||||
Depreciation and amortization | 8,955 | 8,156 | 799 | 10 | % | |||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | (94,946 | ) | (100 | )% | ||||||||||
Operating loss | $ | (29,414 | ) | $ | (102,588 | ) | $ | 73,174 | 71 | % | ||||||
Reconciliation to adjusted operating income (loss): | ||||||||||||||||
Share-based compensation | 5,284 | 963 | ||||||||||||||
Depreciation and amortization | 8,955 | 8,156 | ||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | ||||||||||||||
Adjusted operating income (loss) | $ | (15,175 | ) | $ | 1,477 | $ | (16,652 | ) | NM | |||||||
Decrease in revenues due to the closure of certain venues as a result of the COVID-19 pandemic | $ | (57,874 | ) | |
Decrease in revenues due to capacity restrictions at re-opened venues | (36,743 | ) | ||
Decrease in revenues associated with the permanent closing of Vandal and Avenue in New York | (12,619 | ) | ||
Increase in revenues due to the Hakkasan acquisition in April 2021 | 27,604 | |||
Other net decreases | (403 | ) | ||
$ | (80,035 | ) | ||
Decrease in employee compensation and related benefits as a result of (i) a reduction in headcount at re-opened venues, (ii) the elimination of venue line staff and manager positions at closed venues, and (iii) the permanent closure of Vandal and Avenue, all as a result of theCOVID-19 pandemic | $ | (24,916 | ) | |
Decrease in (i) costs of food and beverage, and (ii) costs of venue entertainment, both as a result of the closure of certain venues, capacity restrictions at re-opened venues and the permanent closure of Vandal and Avenue, all due to theCOVID-19 pandemic | (23,370 | ) | ||
Decrease in direct operating expenses associated with rent expense, primarily due to rent concessions received and the permanent closure of Vandal and Avenue | (7,514 | ) | ||
Increase in direct operating expenses due to the Hakkasan acquisition in April 2021 | 12,278 | |||
Other net decreases, due to lower credit card fees | (6,525 | ) | ||
$ | (50,047 | ) | ||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Net loss | $ | (430,450) | $ | (14,687) | ||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | 132,793 | 122,357 | ||||||||||||||||||
Subtotal | $ | (297,657) | $ | 107,670 | ||||||||||||||||
Changes in working capital assets and liabilities | 8,177 | (11,639) | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (289,480) | $ | 96,031 | ||||||||||||||||
Net cash used in investing activities | (84,440) | (389,657) | ||||||||||||||||||
Net cash provided by financing activities | 633,333 | 122,938 | ||||||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 8,027 | 2,927 | ||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 267,440 | $ | (167,761) |
Years Ended June 30, | ||||||||
2021 | 2020 | |||||||
Net loss | $ | (395,560 | ) | $ | (12,627 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | 132,793 | 122,357 | ||||||
Subtotal | $ | (262,767 | ) | $ | 109,730 | |||
Changes in working capital assets and liabilities | 8,177 | (11,639 | ) | |||||
Net cash provided by (used in) operating activities | $ | (254,590 | ) | $ | 98,091 | |||
Net cash used in investing activities | (119,330 | ) | (391,717 | ) | ||||
Net cash provided by financing activities | 633,333 | 122,938 | ||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 8,027 | 2,927 | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 267,440 | $ | (167,761 | ) | |||
Payments Due by Period | ||||||||||||||||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | More Than 5 Years | ||||||||||||||||||||||||||||
Leases (a) | $ | 410,377 | $ | 71,346 | $ | 124,559 | $ | 63,999 | $ | 150,473 | ||||||||||||||||||||||
Debt repayments (b) | 691,137 | 12,750 | 51,137 | 627,250 | — | |||||||||||||||||||||||||||
Other (c) (d) | 120,425 | 120,132 | 236 | 57 | — | |||||||||||||||||||||||||||
$ | 1,221,939 | $ | 204,228 | $ | 175,932 | $ | 691,306 | $ | 150,473 | |||||||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||
Total | Year 1 | Years 2-3 | Years 4-5 | More Than 5 Years | ||||||||||||||||
Leases (a) | $ | 410,377 | $ | 71,346 | $ | 124,559 | $ | 63,999 | $ | 150,473 | ||||||||||
Debt repayments (b) | 691,137 | 12,750 | 51,137 | 627,250 | — | |||||||||||||||
Other (c) (d) | 120,425 | 120,132 | 236 | 57 | — | |||||||||||||||
$1,221,939 | $204,228 | $175,932 | $691,306 | $150,473 | ||||||||||||||||
(a) | Includes contractually obligated minimum lease payments for operating leases having an initial noncancelable term in excess of one year for the Company’s venues, including the Tao Group Hospitality venues and various corporate offices. These commitments are presented exclusive of the imputed interest used to reflect the payment’s present value. See Note 10 to the consolidated and combined financial statements included in Item 8 of this Annual Report on Form 10-K for more information. Lease liabilities as of June 30, 2021 above did not include $293,458 of lease payments, of which $1,125 is expected to be due in Fiscal Year 2022, for additional lease obligations related to the amendment and extension of the Radio City Music Hall lease agreement in July 2021 and a new lease in Burbank, California for premises that the Company has not taken possession of yet. |
(b) | See Note 14 to the consolidated and combined financial statements included in Item 8 of this Annual Report on Form 10-K for more information surrounding the principal repayments required under the Tao Senior Secured Credit Facilities and a note with respect to a $637 loan received by BCE from its noncontrolling interest holder that is due in April 2023. |
(c) | Includes accrued expense of approximately $98,000 associated with the development and construction of MSG Sphere in Las Vegas, all due within Fiscal Year 2022. |
(d) | Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 14 to the consolidated and combined financial statements included in Item 8 of this Annual Report on Form 10-K for more information on the future funding requirements under our pension obligations. |
Goodwill | $ | 77,687 | ||
Indefinite-lived intangible assets | 63,801 | |||
Amortizable intangible assets, net of accumulated amortization | 171,451 | |||
Property and equipment, net | 2,148,575 | |||
Right-of-use | 268,568 | |||
$ | 2,730,082 | |||
Entertainment | $ | 74,309 | ||
Tao Group Hospitality | 3,378 | |||
$ | 77,687 | |||
Trademarks | $ | 61,881 | ||
Photographic related rights | 1,920 | |||
$ | 63,801 | |||
Useful Lives | Value | ||||||||||||||||
Estimated Useful Lives | Net Carrying Value | |||||||
Trade names | 2 years to 25 years | $ | 95,395 | |||||
Venue management contracts | 5.67 years to 20 years | 68,182 | ||||||
Non-compete agreements | 5.75 years | 2,087 | ||||||
Festival rights | 15 years | 5,384 | ||||||
Other intangibles | 15 years | 403 | ||||||
$ | 171,451 | |||||||
Net Periodic Benefit Cost | Benefit Obligation | ||||||||||
Healthcare cost trend rate assumed for next year | 6.50% | 6.25% | |||||||||
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 |
Net Periodic Benefit Cost | Benefit Obligation | |||||||
Healthcare cost trend rate assumed for next year | 6.50 | % | 6.25 | % | ||||
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 |
Page | |||||||||||
The following documents are filed as part of this report: | |||||||||||
1. | The financial statements as indicated in the index set forth on page | F- 1 | |||||||||
2. | Financial statement schedule: | ||||||||||
Schedule supporting consolidated and combined financial statements: | |||||||||||
81 | |||||||||||
Schedules other than that listed above have been omitted, since they are either not applicable, not required or the information is included elsewhere herein. | |||||||||||
3. | Exhibits: |
The following materials from Madison Square Garden Entertainment Corp. Annual Report on Form 10-K/A for the year ended June 30, 2021, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) consolidated balance sheets, (ii) consolidated and combined statements of operations, (iii) consolidated and combined statements of comprehensive income (loss), (iv) consolidated and combined statements of cash flows, (v) consolidated and combined statements of equity and redeemable noncontrolling interests, and (vi) notes to consolidated and combined financial statements. | ||||||||
104 | The cover page form the Company’s Annual Report on Form 10-K/A for the year ended June 30, 2021 formatted in Inline XBRL and contained in Exhibit 101. |
(Additions) / Deductions | |||||||||||||||||||||||||||||||||||||||||
Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period | |||||||||||||||||||||||||||||||||||||
Year ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (9,135) | $ | (468) | $ | — | $ | 4,026 | $ | (5,577) | (a) | ||||||||||||||||||||||||||||||
Deferred tax valuation allowance | (34,646) | (123,011) | (3,929) | — | (161,586) | ||||||||||||||||||||||||||||||||||||
$ | (43,781) | $ | (123,479) | $ | (3,929) | $ | 4,026 | $ | (167,163) | ||||||||||||||||||||||||||||||||
Year ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (1,814) | $ | (9,945) | $ | — | $ | 2,624 | $ | (9,135) | |||||||||||||||||||||||||||||||
Deferred tax valuation allowance | (117,679) | 13,352 | 69,681 | (b) | — | (34,646) | |||||||||||||||||||||||||||||||||||
$ | (119,493) | $ | 3,407 | $ | 69,681 | $ | 2,624 | $ | (43,781) | ||||||||||||||||||||||||||||||||
Year ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (777) | $ | (1,456) | $ | — | $ | 419 | $ | (1,814) | |||||||||||||||||||||||||||||||
Deferred tax valuation allowance | (131,104) | (375) | 13,800 | — | (117,679) | ||||||||||||||||||||||||||||||||||||
$ | (131,881) | $ | (1,831) | $ | 13,800 | $ | 419 | $ | (119,493) |
(Additions) / Deductions | ||||||||||||||||||||
Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Period | ||||||||||||||||
Year ended June 30, 2021 | ||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (9,135 | ) | $ | (468 | ) | $ | — | $ | 4,026 | $ | (5,577 | ) (a) | |||||||
Deferred tax valuation allowance (c) | (29,952 | ) | (111,297 | ) | (3,929 | ) | — | (145,178 | ) | |||||||||||
$ | (39,087 | ) | $ | (111,765 | ) | $ | (3,929 | ) | $ | 4,026 | $ | (150,755 | ) | |||||||
Year ended June 30, 2020 | ||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (1,814 | ) | $ | (9,945 | ) | $ | — | $ | 2,624 | $ | (9,135 | ) | |||||||
Deferred tax valuation allowance (c) | (113,661 | ) | 14,028 | 69,681 | (b) | — | (29,952 | ) | ||||||||||||
$ | (115,475 | ) | $ | 4,083 | $ | 69,681 | $ | 2,624 | $ | (39,087 | ) | |||||||||
Year ended June 30, 2019 | ||||||||||||||||||||
Allowance for doubtful accounts / credit losses | $ | (777 | ) | $ | (1,456 | ) | $ | — | $ | 419 | $ | (1,814 | ) | |||||||
Deferred tax valuation allowance (c) | (130,314 | ) | 2,673 | 13,800 | — | (113,841 | ) | |||||||||||||
$ | (131,091 | ) | $ | 1,217 | $ | 13,800 | $ | 419 | $ | (115,655 | ) | |||||||||
(a) | Allowance for credit losses as of June 30, 2021 did not include balances associated with the acquisition of Hakkasan in April 2021 in accordance with ASC 805-20-30-4. |
(b) | Prior to the Entertainment 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. The tax recognition on most of these deferred revenues was accelerated to the date of the Entertainment Distribution and is the responsibility of MSG Sports. The Company will not reimburse MSG Sports for such taxes. At the time of the Entertainment Distribution, the Company recorded a deferred tax asset of $57,230 and a corresponding valuation allowance of $57,230 with regard to the deferred revenue acceleration for income tax purposes. |
(c) | Deferred tax valuation allowance was revised as a result of the capitalization of interest for all periods which increased previously reported deferred tax liabilities and reduced the valuation allowance by $11,714, $676 and $3,048 as of the years ended June 30, 2021, 2020 and 2019, respectively. For a more detailed description of the correction of this accounting error, refer to Note 23 – to the consolidated and combined financial statements of the Company included in Part II-Item 8 of this Form10-K/A. |
(Principal Executive Officer) and Director | ||||||||||||||
Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
Principal Accounting Officer | ||||||||||||||
Madison Square Garden Entertainment Corp. | ||||||||||||||
Title: | ||||||||||||||
Executive Vice President and Chief Financial Officer |
○ | Read the Company’s minutes from meetings of the Board of Directors and related committees of the Board of Directors; |
○ | Inspected annual compliance questionnaires completed by the Company’s directors and officers; |
○ | Read publicly available sources including the Company’s public filings and press releases as well as certain analyst and industry reports; and |
○ | Listened to or read transcripts of the Company’s quarterly investor relations calls. |
○ | Developing a range of independent estimates of the discount rate and long-term growth rate and comparing those to the rates selected by management; |
○ | Testing the reasonableness of the valuation inputs against observable market data and generally accepted valuation methodologies; and |
○ | Testing the mathematical accuracy of the calculations. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Current Assets: | ||||||||||||||
Cash and cash equivalents | $ | 1,168,760 | $ | 906,555 | ||||||||||
Restricted cash | 22,984 | 17,749 | ||||||||||||
Short-term investments | — | 337,192 | ||||||||||||
Accounts receivable, net | 85,955 | 57,184 | ||||||||||||
Net related party receivables | 36,378 | 23,062 | ||||||||||||
Prepaid expenses | 60,493 | 62,127 | ||||||||||||
Other current assets | 37,779 | 22,633 | ||||||||||||
Total current assets | 1,412,349 | 1,426,502 | ||||||||||||
Investments in nonconsolidated affiliates | 45,969 | 52,622 | ||||||||||||
Property and equipment, net | 2,099,347 | 1,646,115 | ||||||||||||
Right-of-use lease assets | 268,568 | 220,328 | ||||||||||||
Amortizable intangible assets, net | 171,451 | 150,426 | ||||||||||||
Indefinite-lived intangible assets | 63,801 | 63,801 | ||||||||||||
Goodwill | 77,687 | 74,309 | ||||||||||||
Other assets | 128,169 | 85,103 | ||||||||||||
Total assets | $ | 4,267,341 | $ | 3,719,206 | ||||||||||
See accompanying notes to consolidated and combined financial statements. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||
CONSOLIDATED BALANCE SHEETS (Continued) | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||||||||
Current Liabilities: | ||||||||||||||
Accounts payable | $ | 23,933 | $ | 17,258 | ||||||||||
Net related party payables, current | 57,616 | 18,418 | ||||||||||||
Current portion of long-term debt, net of deferred financing costs | 5,728 | 5,429 | ||||||||||||
Accrued liabilities: | ||||||||||||||
Employee related costs | 68,242 | 68,837 | ||||||||||||
Other accrued liabilities | 181,636 | 125,452 | ||||||||||||
Operating lease liabilities, current | 68,544 | 53,388 | ||||||||||||
Collections due to promoters | 37,877 | 31,879 | ||||||||||||
Deferred revenue | 209,501 | 189,308 | ||||||||||||
Total current liabilities | 653,077 | 509,969 | ||||||||||||
Long-term debt, net of deferred financing costs | 655,093 | 28,126 | ||||||||||||
Operating lease liabilities, noncurrent | 224,729 | 174,219 | ||||||||||||
Defined benefit and other postretirement obligations | 28,847 | 26,132 | ||||||||||||
Other employee related costs | 15,629 | 15,591 | ||||||||||||
Collections due to promoters, noncurrent | 6,625 | — | ||||||||||||
Deferred tax liabilities, net | 11,972 | 12,450 | ||||||||||||
Other liabilities | 73,790 | 78,279 | ||||||||||||
Total liabilities | 1,669,762 | 844,766 | ||||||||||||
Commitments and contingencies (see Note 12) | 0 | 0 | ||||||||||||
Redeemable noncontrolling interests | 137,834 | 20,600 | ||||||||||||
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | ||||||||||||||
Class A common stock, par value $0.01, 120,000 shares authorized; 19,618 and 19,493 shares outstanding as of June 30, 2021 and 2020, respectively | 196 | 195 | ||||||||||||
Class B common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of June 30, 2021 and 2020 | 45 | 45 | ||||||||||||
Preferred stock, par value $0.01, 15,000 shares authorized; none outstanding as of June 30, 2021 and 2020 | — | — | ||||||||||||
Additional paid-in capital | 2,744,866 | 2,751,318 | ||||||||||||
Retained earnings (accumulated deficit) | (270,146) | 141,936 | ||||||||||||
Accumulated other comprehensive loss | (27,120) | (51,857) | ||||||||||||
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 2,447,841 | 2,841,637 | ||||||||||||
Nonredeemable noncontrolling interests | 11,904 | 12,203 | ||||||||||||
Total equity | 2,459,745 | 2,853,840 | ||||||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 4,267,341 | $ | 3,719,206 |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except per share data) | ||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 1,168,760 | $ | 906,555 | ||||
Restricted cash | 22,984 | 17,749 | ||||||
Short-term investments | 0 | 337,192 | ||||||
Accounts receivable, net | 85,955 | 57,184 | ||||||
Net related party receivables | 36,378 | 23,062 | ||||||
Prepaid expenses | 60,493 | 62,127 | ||||||
Other current assets | 37,779 | 22,633 | ||||||
Total current assets | 1,412,349 | 1,426,502 | ||||||
Investments in nonconsolidated affiliates | 45,969 | 52,622 | ||||||
Property and equipment, net | 2,148,575 | 1,660,453 | ||||||
Right-of-use | 268,568 | 220,328 | ||||||
Amortizable intangible assets, net | 171,451 | 150,426 | ||||||
Indefinite-lived intangible assets | 63,801 | 63,801 | ||||||
Goodwill | 77,687 | 74,309 | ||||||
Other assets | 128,169 | 85,103 | ||||||
Total assets | $ | 4,316,569 | $ | 3,733,544 | ||||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||
CONSOLIDATED BALANCE SHEETS (Continued) | ||||||||
(in thousands, except per share data) | ||||||||
June 30, | ||||||||
2021 | 2020 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 23,933 | $ | 17,258 | ||||
Net related party payables, current | 57,616 | 18,418 | ||||||
Current portion of long-term debt, net of deferred financing costs | 5,728 | 5,429 | ||||||
Accrued liabilities: | ||||||||
Employee related costs | 68,242 | 68,837 | ||||||
Other accrued liabilities | 181,636 | 125,452 | ||||||
Operating lease liabilities, current | 68,544 | 53,388 | ||||||
Collections due to promoters | 37,877 | 31,879 | ||||||
Deferred revenue | 209,501 | 189,308 | ||||||
Total current liabilities | 653,077 | 509,969 | ||||||
Long-term debt, net of deferred financing costs | 655,093 | 28,126 | ||||||
Operating lease liabilities, noncurrent | 224,729 | 174,219 | ||||||
Defined benefit and other postretirement obligations | 28,847 | 26,132 | ||||||
Other employee related costs | 15,629 | 15,591 | ||||||
Collections due to promoters, noncurrent | 6,625 | 0 | ||||||
Deferred tax liabilities, net | 11,972 | 12,450 | ||||||
Other liabilities | 73,790 | 78,279 | ||||||
Total liabilities | 1,669,762 | 844,766 | ||||||
Commitments and contingencies (see Note 12) | ||||||||
Redeemable noncontrolling interests | 137,834 | 20,600 | ||||||
Madison Square Garden Entertainment Corp. Stockholders’ Equity: | ||||||||
Class A common stock, par value $0.01, 120,000 shares authorized; 19,618 and 19,493 shares outstanding as of June 30, 2021 and 2020, respectively | 196 | 195 | ||||||
Class B common stock, par value $0.01, 30,000 shares authorized; 4,530 shares outstanding as of June 30, 2021 and 2020 | 45 | 45 | ||||||
Preferred stock, par value $0.01, 15,000 shares authorized; NaN outstanding as of June 30, 2021 and 2020 | 0 | 0 | ||||||
Additional paid-in capital | 2,758,843 | 2,765,295 | ||||||
Retained earnings (accumulated deficit) | (234,895 | ) | 142,297 | |||||
Accumulated other comprehensive loss | (27,120 | ) | (51,857 | ) | ||||
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 2,497,069 | 2,855,975 | ||||||
Nonredeemable noncontrolling interests | 11,904 | 12,203 | ||||||
Total equity | 2,508,973 | 2,868,178 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 4,316,569 | $ | 3,733,544 | ||||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Revenues (a) | $ | 180,401 | $ | 762,936 | $ | 1,048,909 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Direct operating expenses (b) | 171,924 | 508,122 | 670,641 | |||||||||||||||||
Selling, general and administrative expenses (c) | 322,714 | 344,637 | 314,522 | |||||||||||||||||
Depreciation and amortization | 114,664 | 104,899 | 109,343 | |||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 105,817 | — | |||||||||||||||||
Gain on disposal of assets held for sale and associated settlements | — | (240,783) | — | |||||||||||||||||
Restructuring charges | 21,299 | — | — | |||||||||||||||||
Operating loss | (450,200) | (59,756) | (45,597) | |||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Earnings (loss) in equity method investments | (6,858) | (4,433) | 7,062 | |||||||||||||||||
Interest income (d) | 1,273 | 17,993 | 30,163 | |||||||||||||||||
Interest expense | (35,098) | (2,300) | (15,262) | |||||||||||||||||
Miscellaneous income (expense), net (e) | 51,062 | 38,855 | (6,061) | |||||||||||||||||
10,379 | 50,115 | 15,902 | ||||||||||||||||||
Loss from operations before income taxes | (439,821) | (9,641) | (29,695) | |||||||||||||||||
Income tax benefit (expense) | 9,371 | (5,046) | (443) | |||||||||||||||||
Net loss | (430,450) | (14,687) | (30,138) | |||||||||||||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269) | (30,387) | (7,299) | |||||||||||||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099) | (1,534) | (4,945) | |||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (412,082) | $ | 17,234 | $ | (17,894) | ||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders (f) | $ | (17.39) | $ | 0.72 | $ | (0.75) | ||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders (f) | $ | (17.39) | $ | 0.72 | $ | (0.75) | ||||||||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||||||
Basic (f) | 24,205 | 23,998 | 23,992 | |||||||||||||||||
Diluted (f) | 24,205 | 24,017 | 23,992 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenues (a) | $ | 180,401 | $ | 762,936 | $ | 1,048,909 | ||||||
Operating expenses: | ||||||||||||
Direct operating expenses (b) | 171,924 | 508,122 | 670,641 | |||||||||
Selling, general and administrative expenses (c) | 322,714 | 344,637 | 314,522 | |||||||||
Depreciation and amortization | 114,664 | 104,899 | 109,343 | |||||||||
Impairment for intangibles, long-lived assets, and goodwill | 0 | 105,817 | 0 | |||||||||
Gain on disposal of assets held for sale and associated settlements | 0 | (240,783 | ) | 0 | ||||||||
Restructuring charges | 21,299 | 0 | 0 | |||||||||
Operating loss | (450,200 | ) | (59,756 | ) | (45,597 | ) | ||||||
Other income (expense): | ||||||||||||
Earnings (loss) in equity method investments | (6,858 | ) | (4,433 | ) | 7,062 | |||||||
Interest income (d) | 1,273 | 17,993 | 30,163 | |||||||||
Interest expense | (208 | ) | (240 | ) | (5,587 | ) | ||||||
Miscellaneous income (expense), net (e) | 51,062 | 38,855 | (6,061 | ) | ||||||||
45,269 | 52,175 | 25,577 | ||||||||||
Loss from operations before income taxes | (404,931 | ) | (7,581 | ) | (20,020 | ) | ||||||
Income tax benefit (expense) | 9,371 | (5,046 | ) | (443 | ) | |||||||
Net loss | (395,560 | ) | (12,627 | ) | (20,463 | ) | ||||||
Less: Net loss attributable to redeemable noncontrolling interests | (16,269 | ) | (30,387 | ) | (7,299 | ) | ||||||
Less: Net loss attributable to nonredeemable noncontrolling interests | (2,099 | ) | (1,534 | ) | (4,945 | ) | ||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (377,192 | ) | $ | 19,294 | $ | (8,219 | ) | ||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders (f) | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders (f) | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
Weighted-average number of common shares outstanding: | ||||||||||||
Basic (f) | 24,205 | 23,998 | 23,992 | |||||||||
Diluted (f) | 24,205 | 24,017 | 23,992 |
(a) | Includes revenues from related parties of $49,969, $18,408 and $18,259 for the years ended June 30, 2021, 2020 and 2019, respectively. |
(b) | Includes net charges from (to) related parties of $(9,866), $57,741 and $94,014 for the years ended June 30, 2021, 2020 and 2019, respectively. |
(c) | Includes net charges to related parties of $(41,935), $(119,389) and $(119,666) for the years ended June 30, 2021, 2020 and 2019, respectively. |
(d) | Interest income includes interest income from nonconsolidated affiliates of $3,105 for the year ended June 30, 2019. |
(e) | Miscellaneous income (expense), net includes charges to related parties of $(178) and $(451) for the years ended June 30, 2020 and 2019, respectively. |
(f) | On April 17, 2020 (the “Entertainment Distribution Date”), 23,992 shares of common stock were distributed to stockholders of Madison Square Garden Sports Corp. (“MSG Sports,” formerly known as The Madison Square Garden Company) as of April 13, 2020. This share amount is being utilized for the calculation of basic and diluted earnings (loss) per share for both the years ended June 30, 2019 and for the period prior to April 17, 2020 in the year ended June 30, 2020 because Madison Square Garden Entertainment Corp. was a wholly-owned subsidiary of MSG Sports. prior to the Entertainment Distribution Date. |
Years Ended June 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||
Net loss | $ | (430,450) | $ | (14,687) | $ | (30,138) | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), before income taxes: | ||||||||||||||||||||||||||||||||||||||
Pension plans and postretirement plan: | ||||||||||||||||||||||||||||||||||||||
Net unamortized losses arising during the period | $ | — | $ | (45) | $ | (2,565) | ||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss included in net periodic benefit cost | 1,191 | 1,342 | 1,286 | |||||||||||||||||||||||||||||||||||
Amortization of net prior service credit included in net periodic benefit cost | (5,168) | — | (7) | |||||||||||||||||||||||||||||||||||
Curtailments | 156 | — | — | |||||||||||||||||||||||||||||||||||
Settlement loss | 870 | (2,951) | 67 | 1,364 | 52 | (1,234) | ||||||||||||||||||||||||||||||||
Cumulative translation adjustments | 27,688 | (7,692) | (4,341) | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), before income taxes | 24,737 | (6,328) | (5,575) | |||||||||||||||||||||||||||||||||||
Income tax expense related to items of other comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | 24,737 | (6,328) | (5,575) | |||||||||||||||||||||||||||||||||||
Comprehensive loss | (405,713) | (21,015) | (35,713) | |||||||||||||||||||||||||||||||||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | (16,269) | (30,387) | (7,299) | |||||||||||||||||||||||||||||||||||
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (2,099) | (1,534) | (4,945) | |||||||||||||||||||||||||||||||||||
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (387,345) | $ | 10,906 | $ | (23,469) |
Years Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Net loss | $ | (395,560 | ) | $ | (12,627 | ) | $ | (20,463 | ) | |||||||||||||||
Other comprehensive income (loss), before income taxes: | ||||||||||||||||||||||||
Pension plans and postretirement plan: | ||||||||||||||||||||||||
Net unamortized losses arising during the period | $ | 0 | $ | (45 | ) | $ | (2,565 | ) | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss: | ||||||||||||||||||||||||
Amortization of net actuarial loss included in net periodic benefit cost | 1,191 | 1,342 | 1,286 | |||||||||||||||||||||
Amortization of net prior service credit included in net periodic benefit cost | (5,168 | ) | 0 | (7 | ) | |||||||||||||||||||
Curtailments | 156 | 0 | 0 | |||||||||||||||||||||
Settlement loss | 870 | (2,951 | ) | 67 | 1,364 | 52 | (1,234 | ) | ||||||||||||||||
Cumulative translation adjustments | 27,688 | (7,692 | ) | (4,341 | ) | |||||||||||||||||||
Other comprehensive income (loss), before income taxes | 24,737 | (6,328 | ) | (5,575 | ) | |||||||||||||||||||
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 | |||||||||||||||||||||
Other comprehensive income (loss), net of income taxes | 24,737 | (6,328 | ) | (5,575 | ) | |||||||||||||||||||
Comprehensive loss | (370,823 | ) | (18,955 | ) | (26,038 | ) | ||||||||||||||||||
Less: Comprehensive loss attributable to redeemable noncontrolling interests | (16,269 | ) | (30,387 | ) | (7,299 | ) | ||||||||||||||||||
Less: Comprehensive loss attributable to nonredeemable noncontrolling interests | (2,099 | ) | (1,534 | ) | (4,945 | ) | ||||||||||||||||||
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (352,455 | ) | $ | 12,966 | $ | (13,794 | ) | ||||||||||||||||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss | $ | (430,450) | $ | (14,687) | $ | (30,138) | ||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | 114,664 | 104,899 | 109,343 | |||||||||||||||||
Impairment of intangibles, long-lived assets and goodwill | — | 105,817 | — | |||||||||||||||||
Share-based compensation expense | 52,917 | 42,190 | 35,401 | |||||||||||||||||
Amortization of deferred financing costs | 4,656 | 310 | 1,212 | |||||||||||||||||
(Earnings) loss in equity method investments, net of income distributions | 6,858 | 4,433 | (6,312) | |||||||||||||||||
Benefit from deferred income taxes | (480) | (10,521) | (371) | |||||||||||||||||
Unrealized and realized (gain) loss on equity investment with readily determinable fair value | (51,178) | (37,628) | 3,496 | |||||||||||||||||
Provision for doubtful accounts / credit losses | 468 | 9,945 | 1,456 | |||||||||||||||||
Gain on sale of the Forum, excluding associated settlement | — | (100,288) | — | |||||||||||||||||
Other non-cash adjustments | 4,888 | 3,200 | 727 | |||||||||||||||||
Change in assets and liabilities, net of acquisitions: | ||||||||||||||||||||
Accounts receivable, net | (25,032) | 15,392 | (345) | |||||||||||||||||
Net related party receivables | 25,882 | (20,596) | 4,387 | |||||||||||||||||
Prepaid expenses and other assets | (29,057) | (21,816) | (11,325) | |||||||||||||||||
Accounts payable | (5,268) | (6,316) | (4,311) | |||||||||||||||||
Accrued and other liabilities | 3,454 | 51,783 | 2,790 | |||||||||||||||||
Collections due to promoters | 12,623 | (35,333) | (22,301) | |||||||||||||||||
Deferred revenue | 15,356 | 52 | 3,775 | |||||||||||||||||
Operating lease right-of-use assets and lease liabilities | 10,219 | 5,195 | 4,240 | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | (289,480) | $ | 96,031 | $ | 91,724 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures, net of acquisitions | (452,154) | (452,426) | (184,002) | |||||||||||||||||
Purchase of short-term investments | — | (443,154) | (112,693) | |||||||||||||||||
Proceeds from maturity of short-term investment | 339,110 | 208,204 | — | |||||||||||||||||
Proceeds from sale of Forum, excluding associated settlement | — | 210,521 | — | |||||||||||||||||
Proceeds from sale of equity securities | 22,079 | 7,659 | — | |||||||||||||||||
Investments in nonconsolidated affiliates | — | (1,050) | (52,707) | |||||||||||||||||
Proceeds from sales of nonconsolidated affiliates | — | 18,000 | 125,750 | |||||||||||||||||
Loan repayment received from subordinated debt | — | 58,735 | 4,765 | |||||||||||||||||
Cash received (paid) for notes receivable | 6,328 | 3,378 | (9,176) | |||||||||||||||||
Other investing activities | 197 | 476 | — | |||||||||||||||||
Net cash used in investing activities | $ | (84,440) | $ | (389,657) | $ | (228,063) | ||||||||||||||
See accompanying notes to consolidated and combined financial statements. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (Continued) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of term loan, net of issuance discount | $ | 630,500 | $ | — | $ | 40,000 | ||||||||||||||
Proceeds from revolving credit facility | 15,000 | — | 15,000 | |||||||||||||||||
Taxes paid in lieu of shares issued for equity-based compensation | (6,060) | — | — | |||||||||||||||||
Noncontrolling interest holders’ capital contributions | 18,537 | 4,300 | 6,310 | |||||||||||||||||
Distributions to noncontrolling interest holders | — | (4,062) | (2,186) | |||||||||||||||||
Loans from noncontrolling interest holders | — | — | 606 | |||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | (1,771) | — | — | |||||||||||||||||
Repayment of revolving credit facility | — | (15,000) | — | |||||||||||||||||
Repayment on long-term debt | (8,250) | (6,250) | (109,312) | |||||||||||||||||
Payments for extinguishment of debt | — | — | (1,151) | |||||||||||||||||
Payments for financing costs | (14,623) | — | (1,488) | |||||||||||||||||
Net transfers from Madison Square Garden Sports Corp. and its subsidiaries | — | 143,950 | 43,600 | |||||||||||||||||
Net cash provided by (used in) financing activities | $ | 633,333 | $ | 122,938 | $ | (8,621) | ||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 8,027 | 2,927 | 4,669 | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 267,440 | (167,761) | (140,291) | |||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 924,304 | 1,092,065 | 1,232,356 | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,191,744 | $ | 924,304 | $ | 1,092,065 | ||||||||||||||
Non-cash investing and financing activities: | ||||||||||||||||||||
Non-cash redemption of redeemable noncontrolling interests | $ | — | $ | 37,715 | $ | — | ||||||||||||||
Non-cash (contribution) received from noncontrolling interests | (59,763) | — | — | |||||||||||||||||
Capital expenditures incurred but not yet paid | 106,574 | 78,508 | 31,938 | |||||||||||||||||
Tenant improvement paid by landlord | — | 195 | 14,528 | |||||||||||||||||
Share-based compensation capitalized in property and equipment | 5,467 | 5,051 | 3,946 | |||||||||||||||||
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (395,560 | ) | $ | (12,627 | ) | $ | (20,463 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 114,664 | 104,899 | 109,343 | |||||||||
Impairment of intangibles, long-lived assets and goodwill | 0 | 105,817 | 0 | |||||||||
Share-based compensation expense | 52,917 | 42,190 | 35,401 | |||||||||
Amortization of deferred financing costs | 4,656 | 310 | 1,212 | |||||||||
(Earnings) loss in equity method investments, net of income distributions | 6,858 | 4,433 | (6,312 | ) | ||||||||
Benefit from deferred income taxes | (480 | ) | (10,521 | ) | (371 | ) | ||||||
Unrealized and realized (gain) loss on equity investment with readily determinable fair value | (51,178 | ) | (37,628 | ) | 3,496 | |||||||
Provision for doubtful accounts / credit losses | 468 | 9,945 | 1,456 | |||||||||
Gain on sale of the Forum, excluding associated settlement | 0 | (100,288 | ) | 0 | ||||||||
Other non-cash adjustments | 4,888 | 3,200 | 727 | |||||||||
Change in assets and liabilities, net of acquisitions: | ||||||||||||
Accounts receivable, net | (25,032 | ) | 15,392 | (345 | ) | |||||||
Net related party receivables | 25,882 | (20,596 | ) | 4,387 | ||||||||
Prepaid expenses and other assets | (29,057 | ) | (21,816 | ) | (11,325 | ) | ||||||
Accounts payable | (5,268 | ) | (6,316 | ) | (4,311 | ) | ||||||
Accrued and other liabilities | 3,454 | 51,783 | 2,790 | |||||||||
Collections due to promoters | 12,623 | (35,333 | ) | (22,301 | ) | |||||||
Deferred revenue | 15,356 | 52 | 3,775 | |||||||||
Operating lease right-of-use | 10,219 | 5,195 | 4,240 | |||||||||
Net cash provided by (used in) operating activities | $ | (254,590 | ) | $ | 98,091 | $ | 101,399 | |||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures, net of acquisitions | (452,154 | ) | (452,426 | ) | (184,002 | ) | ||||||
Capitalized interest | (34,890 | ) | (2,060 | ) | (9,675 | ) | ||||||
Purchase of short-term investments | 0 | (443,154 | ) | (112,693 | ) | |||||||
Proceeds from maturity of short-term investment | 339,110 | 208,204 | 0 | |||||||||
Proceeds from sale of Forum, excluding associated settlement | 0 | 210,521 | 0 | |||||||||
Proceeds from sale of equity securities | 22,079 | 7,659 | 0 | |||||||||
Investments in nonconsolidated affiliates | 0 | (1,050 | ) | (52,707 | ) | |||||||
Proceeds from sales of nonconsolidated affiliates | 0 | 18,000 | 125,750 | |||||||||
Loan repayment received from subordinated debt | 0 | 58,735 | 4,765 | |||||||||
Cash received (paid) for notes receivable | 6,328 | 3,378 | (9,176 | ) | ||||||||
Other investing activities | 197 | 476 | 0 | |||||||||
Net cash used in investing activities | $ | (119,330 | ) | $ | (391,717 | ) | $ | (237,738 | ) | |||
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTERESTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | — | $ | 2,525,031 | $ | — | $ | — | $ | (46,918) | $ | 2,478,113 | $ | 11,505 | $ | 2,489,618 | $ | 76,684 | ||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU No. 2016-01 | — | (5,570) | — | — | 5,570 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASC 606 | — | 33,669 | — | — | — | 33,669 | — | 33,669 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | (17,894) | — | — | — | (17,894) | (4,945) | (22,839) | (7,299) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (5,575) | (5,575) | — | (5,575) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (23,469) | (4,945) | (28,414) | (7,299) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 82,947 | — | — | — | 82,947 | — | 82,947 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 8,446 | 8,446 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (428) | (428) | (1,758) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | 788 | — | — | — | 788 | (788) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | — | $ | 2,618,971 | $ | — | $ | — | $ | (46,923) | $ | 2,572,048 | $ | 13,790 | $ | 2,585,838 | $ | 67,627 | ||||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to consolidated and combined financial statements. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTERESTS (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | — | $ | 2,618,971 | $ | — | $ | — | $ | (46,923) | $ | 2,572,048 | $ | 13,790 | $ | 2,585,838 | $ | 67,627 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | (124,702) | — | 141,936 | — | 17,234 | (1,534) | 15,700 | (30,387) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,328) | (6,328) | — | (6,328) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | 10,906 | (1,534) | 9,372 | (30,387) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 12,430 | — | — | 12,430 | — | 12,430 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding associated with shares issued for equity-based compensation | — | — | (165) | — | — | (165) | — | (165) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 178,280 | — | — | — | 178,280 | — | 178,280 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | (16,939) | (3,647) | — | — | (20,586) | — | (20,586) | 20,586 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments related to the transfer of certain assets and liabilities as a result of the Entertainment Distribution | — | 49,615 | — | — | 1,394 | 51,009 | — | 51,009 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Madison Square Garden Sports Corp. Investment | 240 | (2,742,940) | 2,742,700 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (4,062) | (4,062) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests from acquisition | — | 37,715 | — | — | — | 37,715 | — | 37,715 | (37,715) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contribution from noncontrolling interest holders | — | — | — | — | — | — | 4,009 | 4,009 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 240 | $ | — | $ | 2,751,318 | $ | 141,936 | $ | (51,857) | $ | 2,841,637 | $ | 12,203 | $ | 2,853,840 | $ | 20,600 | ||||||||||||||||||||||||||||||||||||||||||||
See accompanying notes to consolidated and combined financial statements. |
MADISON SQUARE GARDEN ENTERTAINMENT CORP. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED AND COMBINED STATEMENTS OF EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AND REDEEMABLE NONCONTROLLING INTERESTS (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 240 | $ | — | $ | 2,751,318 | $ | 141,936 | $ | (51,857) | $ | 2,841,637 | $ | 12,203 | $ | 2,853,840 | $ | 20,600 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (412,082) | — | (412,082) | (2,099) | (414,181) | (16,269) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 24,737 | 24,737 | — | 24,737 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (387,345) | (2,099) | (389,444) | (16,269) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests, non-cash acquisition | — | — | — | — | — | — | — | — | 76,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | — | (46,425) | — | — | (46,425) | — | (46,425) | 46,425 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 56,035 | — | — | 56,035 | — | 56,035 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 2,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding associated with shares issued for equity-based compensation | 1 | — | (6,061) | — | — | (6,060) | — | (6,060) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | — | — | (1,273) | — | — | (1,273) | — | (1,273) | (498) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | — | — | (8,728) | — | — | (8,728) | — | (8,728) | 8,728 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 1,800 | 1,800 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 241 | $ | — | $ | 2,744,866 | $ | (270,146) | $ | (27,120) | $ | 2,447,841 | $ | 11,904 | $ | 2,459,745 | $ | 137,834 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of term loan, net of issuance discount | $ | 630,500 | $ | 0 | $ | 40,000 | ||||||
Proceeds from revolving credit facility | 15,000 | 0 | 15,000 | |||||||||
Taxes paid in lieu of shares issued for equity-based compensation | (6,060 | ) | 0 | 0 | ||||||||
Noncontrolling interest holders’ capital contributions | 18,537 | 4,300 | 6,310 | |||||||||
Distributions to noncontrolling interest holders | 0 | (4,062 | ) | (2,186 | ) | |||||||
Loans from noncontrolling interest holders | 0 | 0 | 606 | |||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | (1,771 | ) | 0 | 0 | ||||||||
Repayment of revolving credit facility | 0 | (15,000 | ) | 0 | ||||||||
Repayment on long-term debt | (8,250 | ) | (6,250 | ) | (109,312 | ) | ||||||
Payments for extinguishment of debt | 0 | 0 | (1,151 | ) | ||||||||
Payments for financing costs | (14,623 | ) | 0 | (1,488 | ) | |||||||
Net transfers from Madison Square Garden Sports Corp. and its subsidiaries | 0 | 143,950 | 43,600 | |||||||||
Net cash provided by (used in) financing activities | $ | 633,333 | $ | 122,938 | $ | (8,621 | ) | |||||
Effect of exchange rates on cash, cash equivalents and restricted cash | 8,027 | 2,927 | 4,669 | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 267,440 | (167,761 | ) | (140,291 | ) | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 924,304 | 1,092,065 | 1,232,356 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,191,744 | $ | 924,304 | $ | 1,092,065 | ||||||
Non-cash investing and financing activities: | ||||||||||||
Non-cash redemption of redeemable noncontrolling interests | $ | 0 | $ | 37,715 | $ | 0 | ||||||
Non-cash (contribution) received from noncontrolling interests | (59,763 | ) | 0 | 0 | ||||||||
Capital expenditures incurred but not yet paid | 106,574 | 78,508 | 31,938 | |||||||||
Tenant improvement paid by landlord | 0 | 195 | 14,528 | |||||||||
Share-based compensation capitalized in property and equipment | 5,467 | 5,051 | 3,946 |
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | 0 | $ | 2,527,634 | $ | 0 | $ | 0 | $ | (46,918 | ) | $ | 2,480,716 | $ | 11,505 | $ | 2,492,221 | $ | 76,684 | |||||||||||||||||
Adoption of ASU No. 2016-01 | — | (5,570 | ) | — | — | 5,570 | — | — | — | — | ||||||||||||||||||||||||||
Adoption of ASC 606 | — | 33,669 | — | — | — | 33,669 | — | 33,669 | — | |||||||||||||||||||||||||||
Net loss | — | (8,219 | ) | — | — | — | (8,219 | ) | (4,945 | ) | (13,164 | ) | (7,299 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (5,575 | ) | (5,575 | ) | — | (5,575 | ) | — | ||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (13,794 | ) | (4,945 | ) | (18,739 | ) | (7,299 | ) | |||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 82,947 | — | — | — | 82,947 | — | 82,947 | — | |||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 8,446 | 8,446 | — | |||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (428 | ) | (428 | ) | (1,758 | ) | ||||||||||||||||||||||||
Adjustments to noncontrolling interests | — | 788 | — | — | — | 788 | (788 | ) | — | — | ||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 0 | $ | 2,631,249 | $ | 0 | $ | 0 | $ | (46,923 | ) | $ | 2,584,326 | $ | 13,790 | $ | 2,598,116 | $ | 67,627 | |||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 0 | $ | 2,631,249 | $ | 0 | $ | 0 | $ | (46,923 | ) | $ | 2,584,326 | $ | 13,790 | $ | 2,598,116 | $ | 67,627 | |||||||||||||||||
Net loss | — | (123,003 | ) | — | 142,297 | — | 19,294 | (1,534 | ) | 17,760 | (30,387 | ) | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,328 | ) | (6,328 | ) | — | (6,328 | ) | — | ||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — | — | — | 12,966 | (1,534 | ) | 11,432 | (30,387 | ) | |||||||||||||||||||||||||
Share-based compensation | — | — | 12,430 | — | — | 12,430 | — | 12,430 | — | |||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 489 | |||||||||||||||||||||||||||
Tax withholding associated with shares issued for equity-based compensation | — | — | (165 | ) | — | — | (165 | ) | — | (165 | ) | — | ||||||||||||||||||||||||
Net increase in Madison Square Garden Sports Corp. Investment | — | 178,280 | — | — | — | 178,280 | — | 178,280 | — | |||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | (16,939 | ) | (3,647 | ) | — | — | (20,586 | ) | — | (20,586 | ) | 20,586 | |||||||||||||||||||||||
Adjustments related to the transfer of certain assets and liabilities as a result of the Entertainment Distribution | — | 49,615 | — | — | 1,394 | 51,009 | — | 51,009 | — | |||||||||||||||||||||||||||
Conversion of Madison Square Garden Sports Corp. Investment | 240 | (2,756,917 | ) | 2,756,677 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | (4,062 | ) | (4,062 | ) | — | |||||||||||||||||||||||||
Noncontrolling interests from acquisition | — | 37,715 | — | — | — | 37,715 | — | 37,715 | (37,715 | ) | ||||||||||||||||||||||||||
Contribution from noncontrolling interest holders | — | — | — | — | — | — | 4,009 | 4,009 | — | |||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 240 | $ | 0 | $ | 2,765,295 | $ | 142,297 | $ | (51,857 | ) | $ | 2,855,975 | $ | 12,203 | $ | 2,868,178 | $ | 20,600 | |||||||||||||||||
Common Stock Issued | MSG Sports Corp.’s Investment | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Total Madison Square Garden Entertainment Corp. Stockholders’ Equity | Nonredeemable Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 240 | $ | — | $ | 2,765,295 | $ | 142,297 | $ | (51,857 | ) | $ | 2,855,975 | $ | 12,203 | $ | 2,868,178 | $ | 20,600 | |||||||||||||||||
Net loss | — | — | — | (377,192 | ) | — | (377,192 | ) | (2,099 | ) | (379,291 | ) | (16,269 | ) | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 24,737 | 24,737 | — | 24,737 | — | |||||||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (352,455 | ) | (2,099 | ) | (354,554 | ) | (16,269 | ) | |||||||||||||||||||||||
Redeemable noncontrolling interests, non-cash acquisition | — | — | — | — | — | — | — | — | 76,500 | |||||||||||||||||||||||||||
Redeemable noncontrolling interest adjustment to redemption fair value | — | — | (46,425 | ) | — | — | (46,425 | ) | — | (46,425 | ) | 46,425 | ||||||||||||||||||||||||
Share-based compensation | — | — | 56,035 | — | — | 56,035 | — | 56,035 | — | |||||||||||||||||||||||||||
Accretion of put options | — | — | — | — | — | — | — | — | 2,348 | |||||||||||||||||||||||||||
Tax withholding associated with shares issued for equity-based compensation | 1 | — | (6,061 | ) | — | — | (6,060 | ) | — | (6,060 | ) | — | ||||||||||||||||||||||||
Distribution to related parties associated with the settlement of certain share-based awards granted prior to the Entertainment Distribution | — | — | (1,273 | ) | — | — | (1,273 | ) | — | (1,273 | ) | (498 | ) | |||||||||||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | — | — | (8,728 | ) | — | — | (8,728 | ) | — | (8,728 | ) | 8,728 | ||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | 1,800 | 1,800 | — | |||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 241 | $ | — | $ | 2,758,843 | $ | (234,895 | ) | $ | (27,120 | ) | $ | 2,497,069 | $ | 11,904 | $ | 2,508,973 | $ | 137,834 | ||||||||||||||||
Fair Value (a) | ||||
Cash and cash equivalents | $ | 16,737 | ||
Property and equipment, net | 33,393 | |||
Right-of-use | 44,818 | |||
Amortizable intangible assets, net | 47,170 | |||
Other assets | 12,641 | |||
Accrued expenses and other current liabilities | (15,957 | ) | ||
Operating lease liabilities | (52,025 | ) | ||
Other liabilities | (13,655 | ) | ||
Total identifiable net assets acquired | 73,122 | |||
Goodwill (a) | 3,378 | |||
Redeemable noncontrolling interests (b) | $ | (76,500 | ) |
(a) | Primarily represents expected synergies from combining operations of Hakkasan and Tao Group Hospitality, and is not deductible for income tax purposes. |
(b) | ||||||||||||||||||||
Hakkasan Parent has the right to put its equity interest in Tao Group Sub-Holdings LLC to Tao Group Hospitality for fair market value (subject to a floor value determined based upon a multiple of trailing EBITDA) beginning in 2026 and each second year thereafter by providing notice during a 30 day window starting June 1, 2025 (and each second June 1 thereafter). Consideration paid upon exercise of the put right shall be, at the option of Tao Group Hospitality, in cash, | ||||||||||||||||||||
debt, or stock of the Company or its successor, subject to certain limitations. Additionally, Tao Group Hospitality may elect to satisfy this put obligation through a sale of Tao Group | ||||||||||||||||||||
or a going public transaction with respect to Tao Group |
Year ended June 30, 2021 | ||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 14,062 | $ | 84,325 | $ | (1,522) | $ | 96,865 | ||||||||||||||||||
Sponsorship, signage and suite licenses (b) | 16,308 | 4,736 | (207) | 20,837 | ||||||||||||||||||||||
Other (c) | 27,586 | 11,105 | (317) | 38,374 | ||||||||||||||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 100,166 | $ | (2,046) | $ | 156,076 |
Year ended June 30, 2021 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 14,062 | $ | 84,325 | $ | (1,522 | ) | $ | 96,865 | |||||||
Sponsorship, signage and suite licenses (b) | 16,308 | 4,736 | (207 | ) | 20,837 | |||||||||||
Other (c) | 27,586 | 11,105 | (317 | ) | 38,374 | |||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 100,166 | $ | (2,046 | ) | $ | 156,076 | |||||||
Year ended June 30, 2020 | ||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 390,691 | $ | 161,663 | $ | (507) | $ | 551,847 | ||||||||||||||||||
Sponsorship, signage and suite licenses (b) | 176,798 | 1,640 | (1,091) | 177,347 | ||||||||||||||||||||||
Other (c) | 17,719 | 16,898 | (875) | 33,742 | ||||||||||||||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 180,201 | $ | (2,473) | $ | 762,936 |
Year ended June 30, 2020 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 390,691 | $ | 161,663 | $ | (507 | ) | $ | 551,847 | |||||||
Sponsorship, signage and suite licenses (b) | 176,798 | 1,640 | (1,091 | ) | 177,347 | |||||||||||
Other (c) | 17,719 | 16,898 | (875 | ) | 33,742 | |||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 180,201 | $ | (2,473 | ) | $ | 762,936 | |||||||
Year ended June 30, 2019 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 529,737 | $ | 234,205 | $ | (852 | ) | $ | 763,090 | |||||||
Sponsorship, signage and suite licenses (b) | 243,843 | 1,788 | (873 | ) | 244,758 | |||||||||||
Other (c) | 23,478 | 17,658 | (75 | ) | 41,061 | |||||||||||
Total revenues from contracts with customers | $ | 797,058 | $ | 253,651 | $ | (1,800 | ) | $ | 1,048,909 | |||||||
Year ended June 30, 2019 | ||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||||||||||||
Event-related and entertainment dining and nightlife offerings (a) | $ | 529,737 | $ | 234,205 | $ | (852) | $ | 763,090 | ||||||||||||||||||
Sponsorship, signage and suite licenses (b) | 243,843 | 1,788 | (873) | 244,758 | ||||||||||||||||||||||
Other (c) | 23,478 | 17,658 | (75) | 41,061 | ||||||||||||||||||||||
Total revenues from contracts with customers | $ | 797,058 | $ | 253,651 | $ | (1,800) | $ | 1,048,909 |
(a) | Consists of (i) ticket sales and other ticket-related revenues, (ii) Tao Group Hospitality’s entertainment dining and nightlife offerings, (iii) venue license fees from third-party promoters, and (iv) food, beverage and merchandise sales. Event-related revenues and entertainment, dining and nightlife offerings are recognized at a point in time. As such, these revenues have been included in the same category in the table above. |
(b) | See sections “— Contracts with Customers — Arrangements with Multiple Performance Obligations”, “— Contracts with Customers — Principal versus Agent Revenue Recognition” and “— Contracts with Customers — Entertainment Segment” for further details on the pattern of recognition of sponsorship, signage and suite license revenues. |
(c) | Primarily consists of (i) revenues from sponsorship sales and representation agreements with MSG Sports, (ii) advertising commission revenue from MSG Networks, and (ii) Tao Group Hospitality’s managed venue revenues. |
Year ended June 30, 2021 | ||||||||||||||||||||||||||
Entertainment (d) | Tao Group Hospitality | Eliminations | Total (d) | |||||||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 8,311 | $ | — | $ | — | $ | 8,311 | ||||||||||||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 43,723 | — | (207) | 43,516 | ||||||||||||||||||||||
Revenues from entertainment dining and nightlife offerings (c) | — | 100,166 | (1,839) | 98,327 | ||||||||||||||||||||||
Food, beverage and merchandise revenues | 3,078 | — | — | 3,078 | ||||||||||||||||||||||
Other | 2,844 | — | — | 2,844 | ||||||||||||||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 100,166 | $ | (2,046) | $ | 156,076 |
Year ended June 30, 2021 | ||||||||||||||||
Entertainment (d) | Tao Group Hospitality | Eliminations | Total (d) | |||||||||||||
Ticketing and venue license fee revenues (a) | $ | 8,311 | $ | 0 | $ | 0 | $ | 8,311 | ||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 43,723 | 0 | (207 | ) | 43,516 | |||||||||||
Revenues from entertainment dining and nightlife offerings (c) | 0 | 100,166 | (1,839 | ) | 98,327 | |||||||||||
Food, beverage and merchandise revenues | 3,078 | 0 | 0 | 3,078 | ||||||||||||
Other | 2,844 | 0 | 0 | 2,844 | ||||||||||||
Total revenues from contracts with customers | $ | 57,956 | $ | 100,166 | $ | (2,046 | ) | $ | 156,076 | |||||||
Year ended June 30, 2020 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Ticketing and venue license fee revenues (a) | $ | 310,971 | $ | 0 | $ | 0 | $ | 310,971 | ||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 200,092 | 0 | (1,091 | ) | 199,001 | |||||||||||
Revenues from entertainment dining and nightlife offerings (c) | 0 | 180,201 | (1,382 | ) | 178,819 | |||||||||||
Food, beverage and merchandise revenues | 62,341 | 0 | 0 | 62,341 | ||||||||||||
Other | 11,804 | 0 | 0 | 11,804 | ||||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 180,201 | $ | (2,473 | ) | $ | 762,936 | |||||||
Year ended June 30, 2019 | ||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||
Ticketing and venue license fee revenues (a) | $ | 420,285 | $ | 0 | $ | 0 | $ | 420,285 | ||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 266,204 | 0 | (873 | ) | 265,331 | |||||||||||
Revenues from entertainment dining and nightlife offerings (c) | 0 | 253,651 | (927 | ) | 252,724 | |||||||||||
Food, beverage and merchandise revenues | 83,307 | 0 | 0 | 83,307 | ||||||||||||
Other | 27,262 | 0 | 0 | 27,262 | ||||||||||||
Total revenues from contracts with customers | $ | 797,058 | $ | 253,651 | $ | (1,800 | ) | $ | 1,048,909 | |||||||
Year ended June 30, 2020 | ||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 310,971 | $ | — | $ | — | $ | 310,971 | ||||||||||||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 200,092 | — | (1,091) | 199,001 | ||||||||||||||||||||||
Revenues from entertainment dining and nightlife offerings (c) | — | 180,201 | (1,382) | 178,819 | ||||||||||||||||||||||
Food, beverage and merchandise revenues | 62,341 | — | — | 62,341 | ||||||||||||||||||||||
Other | 11,804 | — | — | 11,804 | ||||||||||||||||||||||
Total revenues from contracts with customers | $ | 585,208 | $ | 180,201 | $ | (2,473) | $ | 762,936 |
Year ended June 30, 2019 | ||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Eliminations | Total | |||||||||||||||||||||||
Ticketing and venue license fee revenues (a) | $ | 420,285 | $ | — | $ | — | $ | 420,285 | ||||||||||||||||||
Sponsorship and signage, suite, and advertising commission revenues (b) | 266,204 | — | (873) | 265,331 | ||||||||||||||||||||||
Revenues from entertainment dining and nightlife offerings (c) | — | 253,651 | (927) | 252,724 | ||||||||||||||||||||||
Food, beverage and merchandise revenues | 83,307 | — | — | 83,307 | ||||||||||||||||||||||
Other | 27,262 | — | — | 27,262 | ||||||||||||||||||||||
Total revenues from contracts with customers | $ | 797,058 | $ | 253,651 | $ | (1,800) | $ | 1,048,909 |
(a) | Amounts include ticket sales, including other ticket-related revenue, and venue license fees from the Company’s events such as (i) concerts, (ii) the presentation of the Christmas Spectacular, and (iii) other live entertainment and sporting events. |
(b) | Beginning in Fiscal Year 2021, Sponsorship and signage, suite, and advertising commission revenues include revenues from sponsorship sales and representation agreements with MSG Sports. |
(c) | Primarily consist of revenues from (i) entertainment dining and nightlife offerings and (ii) venue management agreements. |
(d) | In addition to the various types of revenues disclosed above, total revenues of $180,401 in Fiscal Year 2021 include $24,325 of lease-related revenues recognized under ASC 842 within the Entertainment segment. See “— Lessor Arrangements” under Note 10 for further details. |
June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Receivables from contracts with customers, net (a) | $ | 86,454 | $ | 59,828 | $ | 81,170 | ||||||||||||||
Contract assets, current (b) | 7,052 | 3,850 | 6,873 | |||||||||||||||||
Deferred revenue, including non-current portion (c) | 210,037 | 193,112 | 197,047 |
June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Receivables from contracts with customers, net (a) | $ | 86,454 | $ | 59,828 | $ | 81,170 | ||||||
Contract assets, current (b) | 7,052 | 3,850 | 6,873 | |||||||||
Deferred revenue, including non-current portion(c) | 210,037 | 193,112 | 197,047 |
(a) | Receivables from contracts with customers, which are reported in Accounts receivable, net and Net related party receivables in the Company’s consolidated balance sheets, represent the Company’s unconditional rights to consideration under its contracts with customers. As of June 30, 2021, 2020 and 2019. the Company’s receivables from contracts with customers above included $4,848, $2,644 and $126, respectively, related to various related parties. See Note 20 for further details on these related party arrangements. |
(b) | Contract assets, which are reported as Other current assets in the Company’s consolidated balance sheets, primarily relate to the Company’s rights to consideration for goods or services transferred to the customer, for which the Company does not have an unconditional right to bill as of the reporting date. Contract assets are transferred to accounts receivable once the Company’s right to consideration becomes unconditional. |
(c) | Deferred revenue primarily relates to the Company’s receipt of consideration from a customer in advance of the Company’s transfer of goods or services to that customer. Deferred revenue is reduced and the related revenue is recognized once the underlying goods or services are transferred to the customer. Revenue recognized for the year ended June 30, 2021 and relating to the deferred revenue balance as of June 30, 2020 was $11,204. |
Fiscal year ending June 30, 2022 | $ | 101,393 | ||
Fiscal year ending June 30, 2023 | 96,749 | |||
Fiscal year ending June 30, 2024 | 77,948 | |||
Fiscal year ending June 30, 2025 | 55,945 | |||
Fiscal year ending June 30, 2026 | 43,180 | |||
Thereafter | 57,245 | |||
$ | 432,460 | |||
June 30, 2020 | $ | 0 | ||
Restructuring charges | 21,299 | |||
Payments | (21,118 | ) | ||
June 30, 2021 | $ | 181 | ||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Net income (loss) available to Madison Square Garden Entertainment Corp.’s stockholders (numerator): | ||||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders per statement of operations | $ | (412,082) | $ | 17,234 | $ | (17,894) | ||||||||||||||
Adjustment of redeemable noncontrolling interest to redemption value | (8,728) | — | — | |||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders for EPS: | $ | (420,810) | $ | 17,234 | $ | (17,894) | ||||||||||||||
Weighted-average shares (denominator): | ||||||||||||||||||||
Weighted-average shares for basic EPS (a) | 24,205 | 23,998 | 23,992 | |||||||||||||||||
Dilutive effect of shares issuable under share-based compensation plans (a) | — | 19 | — | |||||||||||||||||
Weighted-average shares for diluted EPS (a) | 24,205 | 24,017 | 23,992 | |||||||||||||||||
Weighted-average anti-dilutive shares (b) | — | 522 | — | |||||||||||||||||
EPS: | ||||||||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (17.39) | $ | 0.72 | $ | (0.75) | ||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (17.39) | $ | 0.72 | $ | (0.75) |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Net income (loss) available to Madison Square Garden Entertainment Corp.’s stockholders (numerator): | ||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders per statement of operations | $ | (377,192 | ) | $ | 19,294 | $ | (8,219 | ) | ||||
Adjustment of redeemable noncontrolling interest to redemption value | (8,728 | ) | 0 | 0 | ||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders for EPS: | $ | (385,920 | ) | $ | 19,294 | $ | (8,219 | ) | ||||
Weighted-average shares (denominator): | ||||||||||||
Weighted-average shares for basic EPS (a) | 24,205 | 23,998 | 23,992 | |||||||||
Dilutive effect of shares issuable under share-based compensation plans (a) | 0 | 19 | 0 | |||||||||
Weighted-average shares for diluted EPS (a) | 24,205 | 24,017 | 23,992 | |||||||||
Weighted-average anti-dilutive shares (b) | 0 | 522 | 0 | |||||||||
EPS: | ||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | $ | (15.95 | ) | $ | 0.81 | $ | (0.35 | ) | ||||
(a) | See the Consolidated and Combined Statements of Operations for how the weighted-average shares were derive d for Fi scal Year 2019 prior to the Entertainment Distribution in Fiscal Year 2020. In addition, weighted-average anti-dilutive shares information for Fiscal Year 2019 was not provided since there was no stock price information and the Company did not have stand-alone restricted stock units and stock options available to compute during that period until the Entertainment Distribution occurred on April 17, 2020. |
(b) | For Fiscal Year 2021, all restricted stock units and stock options were excluded from the above table because the Company reported a net loss for the periods presented and, therefore, their impact on reported loss per share would have been antidilutive. See Note 16 for further detail. |
As of | ||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
Captions on the consolidated and combined balance sheets: | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,168,760 | $ | 906,555 | $ | 1,082,055 | $ | 1,225,645 | ||||||||||||||||||
Restricted cash | 22,984 | 17,749 | 10,010 | 6,711 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash on the consolidated and combined statements of cash flows | $ | 1,191,744 | $ | 924,304 | $ | 1,092,065 | $ | 1,232,356 |
As of | ||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2019 | June 30, 2018 | |||||||||||||
Captions on the consolidated and combined balance sheets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,168,760 | $ | 906,555 | $ | 1,082,055 | $ | 1,225,645 | ||||||||
Restricted cash | 22,984 | 17,749 | 10,010 | 6,711 | ||||||||||||
Cash, cash equivalents and restricted cash on the consolidated and combined statements of cash flows | $ | 1,191,744 | $ | 924,304 | $ | 1,092,065 | $ | 1,232,356 | ||||||||
Ownership Percentage | Investment | ||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||
Equity method investments: | |||||||||||||||||||||||||||||
SACO Technologies Inc. (“SACO”) | 30% | $ | 36,265 | ||||||||||||||||||||||||||
Others | 6,204 | ||||||||||||||||||||||||||||
Equity investments without readily determinable fair values (a) | 3,500 | ||||||||||||||||||||||||||||
Total investments in nonconsolidated affiliates | $ | 45,969 | |||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||
Equity method investments: | |||||||||||||||||||||||||||||
SACO | 30% | $ | 40,461 | ||||||||||||||||||||||||||
Others | 8,661 | ||||||||||||||||||||||||||||
Equity investments without readily determinable fair values (a) (b) (c) | 3,500 | ||||||||||||||||||||||||||||
Total investments in nonconsolidated affiliates | $ | 52,622 |
Ownership Percentage | Investment | |||||||
June 30, 2021 | ||||||||
Equity method investments: | ||||||||
SACO Technologies Inc. (“SACO”) | 30 | % | $ | 36,265 | ||||
Others | 6,204 | |||||||
Equity investments without readily determinable fair values (a) | 3,500 | |||||||
Total investments in nonconsolidated affiliates | $ | 45,969 | ||||||
June 30, 2020 | ||||||||
Equity method investments: | ||||||||
SACO | 30 | % | $ | 40,461 | ||||
Others | 8,661 | |||||||
Equity investments without readily determinable fair values (a) (b) (c) | 3,500 | |||||||
Total investments in nonconsolidated affiliates | $ | 52,622 | ||||||
(a) | In accordance with the ASC Topic 321, Investments—Equity Securities, the Company applies the measurement alternative to its equity investments without readily determinable fair values. Under the measurement alternative, equity securities without readily determinable fair values are accounted for at cost, adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for the identical or a similar investment of the same issuer. For Fiscal Year 2021, the Company did not have impairment charges or change in carrying value recorded to its equity securities without readily determinable fair values. For Fiscal Year 2020, the Company recorded an impairment charge of $533. For Fiscal Year 2019, the Company recorded a $3,738 increase in carrying value from observable price fluctuations and an impairment charge of $398. |
(b) | As of June 30, 2019, the Company’s equity investment in equity without readily determinable fair value included a $9,834 investment in DraftKings Inc. (“DraftKings”). DraftKings became a publicly traded company in April 2020. Accordingly, the Company began accounting for its investment in DraftKings as an equity investment with a readily determinable fair value in accordance the ASC Topic 321, Investments—Equity Securities. See section “Equity Investment with Readily Determinable Fair Values” below for further discussion. |
June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Balance, beginning of period | $ | 3,500 | $ | 13,867 | ||||||||||
Transfer out of Level III to Level I for investment in DraftKings | — | (9,834) | ||||||||||||
Impairment charge | — | (533) | ||||||||||||
Balance, end of period | $ | 3,500 | $ | 3,500 |
(c) | The following tables summarize the changes in the Company’s equity investments without readily determinable fair values for which the Company has used Level III inputs to determine fair value and a reconciliation to the opening and closing balances as of June 30, 2021, and 2020: |
June 30, | ||||||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 3,500 | $ | 13,867 | ||||
Transfer out of Level III to Level I for investment in DraftKings | 0 | (9,834 | ) | |||||
Impairment charge | 0 | (533 | ) | |||||
Balance, end of period | $ | 3,500 | $ | 3,500 | ||||
Balance as of June 30, 2021 | ||||||||||||||||||||
Equity Investment with Readily Determinable Fair Values | Units / Shares Held | Cost Basis | Carrying value / Fair value | |||||||||||||||||
Townsquare Class A common stock | 583 | $ | 4,221 | $ | 7,435 | |||||||||||||||
Townsquare Class C common stock | 2,625 | 19,001 | 33,469 | |||||||||||||||||
DraftKings, common stock | 869 | 6,036 | 45,360 | |||||||||||||||||
Total | $ | 29,258 | $ | 86,264 |
Balance as of June 30, 2020 | ||||||||||||||||||||
Equity Investment with Readily Determinable Fair Value | Units / Shares Held | Cost Basis | Carrying value / fair value | |||||||||||||||||
Townsquare Class A common stock | 3,208 | $ | 23,222 | $ | 14,340 | |||||||||||||||
DraftKings, common stock | 1,280 | 8,798 | 42,589 | |||||||||||||||||
DraftKings, warrant | 9 | 22 | 132 | |||||||||||||||||
Total | $ | 32,042 | $ | 57,061 |
Balance as of June 30, 2021 | ||||||||||||
Equity Investment with Readily Determinable Fair Values | Units / Shares Held | Cost Basis | Carrying value / Fair value | |||||||||
Townsquare Class A common stock | 583 | $ | 4,221 | $ | 7,435 | |||||||
Townsquare Class C common stock | 2,625 | 19,001 | 33,469 | |||||||||
DraftKings, common stock | 869 | 6,036 | 45,360 | |||||||||
Total | $ | 29,258 | $ | 86,264 | ||||||||
Balance as of June 30, 2020 | ||||||||||||
Equity Investment with Readily Determinable Fair Value | Units / Shares Held | Cost Basis | Carrying value / fair value | |||||||||
Townsquare Class A common stock | 3,208 | $ | 23,222 | $ | 14,340 | |||||||
DraftKings, common stock | 1,280 | 8,798 | 42,589 | |||||||||
DraftKings, warrant | 9 | 22 | 132 | |||||||||
Total | $ | 32,042 | $ | 57,061 | ||||||||
June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Unrealized gain (loss) — Townsquare | $ | 26,563 | $ | (2,920) | $ | (3,497) | ||||||||||||||
Unrealized gain — DraftKings | 26,942 | 34,197 | — | |||||||||||||||||
Realized gain (loss) — DraftKings | (2,327) | 6,351 | — | |||||||||||||||||
$ | 51,178 | $ | 37,628 | $ | (3,497) | |||||||||||||||
Supplemental information on realized gain (loss): | ||||||||||||||||||||
Shares of common stock sold — DraftKings | 420 | 197 | — | |||||||||||||||||
Cash proceeds from common stock sold — DraftKings | $ | 22,079 | $ | 7,659 | $ | — |
June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Unrealized gain (loss) — Townsquare | $ | 26,563 | $ | (2,920 | ) | $ | (3,497 | ) | ||||
Unrealized gain — DraftKings | 26,942 | 34,197 | 0 | |||||||||
Realized gain (loss) — DraftKings | (2,327 | ) | 6,351 | 0 | ||||||||
$ | 51,178 | $ | 37,628 | $ | (3,497 | ) | ||||||
Supplemental information on realized gain (loss): | ||||||||||||
Shares of common stock sold — DraftKings | 420 | 197 | 0 | |||||||||
Cash proceeds from common stock sold — DraftKings | $ | 22,079 | $ | 7,659 | $ | 0 |
June 30, | |||||||||||||||||||||||||||||
2021 | 2020 | Estimated Useful Lives | |||||||||||||||||||||||||||
Land | $ | 150,750 | $ | 141,638 | |||||||||||||||||||||||||
Buildings | 996,295 | 993,206 | Up to | 40 years | |||||||||||||||||||||||||
Equipment | 378,086 | 345,314 | 1 year | to | 20 years | ||||||||||||||||||||||||
Aircraft | 38,090 | 38,090 | 20 years | ||||||||||||||||||||||||||
Furniture and fixtures | 38,896 | 42,389 | 1 year | to | 7 years | ||||||||||||||||||||||||
Leasehold improvements | 196,273 | 170,585 | Shorter of term of lease or useful life of improvement | ||||||||||||||||||||||||||
Construction in progress | 1,144,882 | 685,382 | |||||||||||||||||||||||||||
2,943,272 | 2,416,604 | ||||||||||||||||||||||||||||
Less accumulated depreciation and amortization | (843,925) | (770,489) | |||||||||||||||||||||||||||
$ | 2,099,347 | $ | 1,646,115 |
June 30, | ||||||||||
2021 | 2020 | Estimated Useful Lives | ||||||||
Land | $ | 150,750 | $ | 141,638 | ||||||
Buildings | 996,295 | 993,206 | Up to 40 years | |||||||
Equipment | 378,086 | 345,314 | 1 year to 20 years | |||||||
Aircraft | 38,090 | 38,090 | 20 years | |||||||
Furniture and fixtures | 38,896 | 42,389 | 1 year to 7 years | |||||||
Leasehold improvements | 196,273 | 170,585 | Shorter of term of lease or useful life of improvement | |||||||
Construction in progress (a) | 1,194,110 | 699,720 | ||||||||
2,992,500 | 2,430,942 | |||||||||
Less accumulated depreciation and amortization | (843,925 | ) | (770,489 | ) | ||||||
$ | 2,148,575 | $ | 1,660,453 | |||||||
(a) | Interest is capitalized during the construction period for significant long term construction project s . The Company capitalizes interest within the Entertainment segment in connection with the construction of MSG Sphere in Las Vegas.For the fiscal years ended June 30, 2021 and June 30, 2020, the Company capitalized $34,890 and $2,060 of interest, respectively. |
Line Item in the Company’s Consolidated Balance Sheet | June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||||
Right-of-use assets: | ||||||||||||||||||||||||||
Operating leases | Right-of-use lease assets | $ | 268,568 | $ | 220,328 | |||||||||||||||||||||
Lease liabilities: | ||||||||||||||||||||||||||
Operating leases, current | Operating lease liabilities, current | $ | 68,544 | $ | 53,388 | |||||||||||||||||||||
Operating leases, noncurrent | Operating lease liabilities, noncurrent | 224,729 | 174,219 | |||||||||||||||||||||||
Total lease liabilities | $ | 293,273 | $ | 227,607 |
Line Item in the Company’s Consolidated Balance Sheet | June 30, 2021 | June 30, 2020 | ||||||||
Right-of-use | ||||||||||
Operating leases | Right-of-use | $ | 268,568 | $ | 220,328 | |||||
Lease liabilities: | ||||||||||
Operating leases, current | Operating lease liabilities, current | $ | 68,544 | $ | 53,388 | |||||
Operating leases, noncurrent | Operating lease liabilities, noncurrent | 224,729 | 174,219 | |||||||
Total lease liabilities | $ | 293,273 | $ | 227,607 | ||||||
Line Item in the Company’s Consolidated and Combined Statement of Operations | Years Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Operating lease cost | Direct operating expenses | $ | 31,074 | $ | 32,348 | |||||||||||||||||||||
Operating lease cost | Selling, general and administrative expenses | 20,898 | 19,525 | |||||||||||||||||||||||
Short-term lease cost | Direct operating expenses | — | 348 | |||||||||||||||||||||||
Variable lease cost | Direct operating expenses | 1,810 | 4,008 | |||||||||||||||||||||||
Variable lease cost | Selling, general and administrative expenses | 57 | 61 | |||||||||||||||||||||||
Total lease cost | $ | 53,839 | $ | 56,290 |
Line Item in the Company’s Consolidated and Combined Statement of Operations | Years Ended June 30, | |||||||||
2021 | 2020 | |||||||||
Operating lease cost | Direct operating expenses | $ | 31,074 | $ | 32,348 | |||||
Operating lease cost | Selling, general and administrative expenses | 20,898 | 19,525 | |||||||
Short-term lease cost | Direct operating expenses | 0 | 348 | |||||||
Variable lease cost | Direct operating expenses | 1,810 | 4,008 | |||||||
Variable lease cost | Selling, general and administrative expenses | 57 | 61 | |||||||
Total lease cost | $ | 53,839 | $ | 56,290 | ||||||
Fiscal year ending June 30, 2022 | $ | 71,346 | ||
Fiscal year ending June 30, 2023 | 72,248 | |||
Fiscal year ending June 30, 2024 | 52,311 | |||
Fiscal year ending June 30, 2025 | 33,751 | |||
Fiscal year ending June 30, 2026 | 30,248 | |||
Thereafter | 150,473 | |||
Total lease payments | 410,377 | |||
Less imputed interest | 117,104 | |||
Total lease liabilities (a) | $ | 293,273 | ||
(a) | ||||||||
Operating lease payments | ||||||||
Entertainment | Tao Group Hospitality | Total | ||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 76,975 | $ | 88,583 | $ | 165,558 | ||||||||||||||||||||||||||
Allocation to the assets held for sale, subsequently sold (a) | (2,666) | — | (2,666) | |||||||||||||||||||||||||||||
Goodwill impairment (b) | — | (88,583) | (88,583) | |||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 74,309 | $ | — | $ | 74,309 | ||||||||||||||||||||||||||
Acquisition of Hakkasan (c) | — | 3,378 | 3,378 | |||||||||||||||||||||||||||||
Balance as of June 30, 2021 | $ | 74,309 | $ | 3,378 | $ | 77,687 |
Entertainment | Tao Group Hospitality | Total | ||||||||||
Balance as of June 30, 2019 | $ | 76,975 | $ | 88,583 | $ | 165,558 | ||||||
Allocation to the assets held for sale, subsequently sold (a) | (2,666 | ) | 0 | (2,666 | ) | |||||||
Goodwill impairment (b) | 0 | (88,583 | ) | (88,583 | ) | |||||||
Balance as of June 30, 2020 | $ | 74,309 | $ | 0 | $ | 74,309 | ||||||
Acquisition of Hakkasan (c) | 0 | 3,378 | 3,378 | |||||||||
Balance as of June 30, 2021 | $ | 74,309 | $ | 3,378 | $ | 77,687 | ||||||
(a) | In connection with the execution of the MIPA on March 24, 2020, pursuant to which the Company agreed to sell the Forum in Inglewood (see Note 3), the Company allocated $2,666 of goodwill associated with the Forum to assets held for sale in accordance with FASB ASC Topic 350, Intangibles — Goodwill and Other, ASC Subtopics 350-20-40-1 350-20-40-7. |
(b) | During the first quarter of Fiscal Year 2020, the Company performed its annual impairment test of goodwill and determined that there were 0 impairments of goodwill identified for any of its reporting units as of the impairment test date. During the third quarter of Fiscal Year 2020, the Company’s operating results were, and continue to be, materially impacted by the COVID-19 pandemic (see Note 1 — Contracts with Customers Impact of theCOVID-19 Pandemic). While the Company concluded that the effects of theCOVID-19 pandemic would not more likely than not reduce the fair value of its Entertainment reporting unit below its carrying amount, the Company concluded that a triggering event had occurred for its Tao Group Hospitality reporting unit as of March 31, 2020 and performed an interim impairment test. For the interim impairment test, the Company estimated the fair value of the Tao Group Hospitality reporting unit based on a discounted cash flow model (income approach). This approach relied on numerous assumptions and judgments that were subject to various risks and uncertainties. Principal assumptions utilized, all of which are considered Level III inputs under the fair value hierarchy, include the Company’s estimates of future revenue and terminal growth rates, margin assumptions and the discount rate applied to estimate future cash flows. In the fourth quarter of Fiscal Year 2020, the Company completed an evaluation of the subsequent activity. As a result, the Company recorded anon-cash goodwill impairment charge of $88,583 during Fiscal Year 2020. During the first quarter of Fiscal Year 2021, the Company performed its annual impairment test of goodwill and determined that there were 0 impairments of goodwill identified for any of its reporting units as of the impairment test date. |
(c) | The TAO Group’s purchase price allocation for the Hakkasan acquisition is preliminary and could be subject to further revision as additional information related to the fair value of the identifiable net assets and redeemable noncontrolling interests becomes available during the measurement period that concludes in April 2022. Goodwill recognized in this acquisition is not deductible for income tax purposes. See Note 3 for more information on the allocation of the purchase price and goodwill recognized in connection with this acquisition. |
June 30, 2021 | June 30, 2020 | |||||||||||||
Trademarks | 61,881 | 61,881 | ||||||||||||
Photographic related rights | 1,920 | 1,920 | ||||||||||||
$ | 63,801 | $ | 63,801 |
June 30, 2021 | June 30, 2020 | |||||||
Trademarks | 61,881 | 61,881 | ||||||
Photographic related rights | 1,920 | 1,920 | ||||||
$ | 63,801 | $ | 63,801 | |||||
June 30, 2021 | Estimated Useful Lives | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||
Trade names (a) | 2 years | to | 25 years | $ | 121,000 | $ | (25,605) | $ | 95,395 | |||||||||||||||||||||||||||||
Venue management contracts | 5.67 years | to | 20 years | 85,700 | (17,518) | 68,182 | ||||||||||||||||||||||||||||||||
Non-compete agreements | 0 | 5.75 years | 9,000 | (6,913) | 2,087 | |||||||||||||||||||||||||||||||||
Festival rights | 15 years | 8,080 | (2,696) | 5,384 | ||||||||||||||||||||||||||||||||||
Other intangibles (c) | 0 | 15 years | 4,217 | (3,814) | 403 | |||||||||||||||||||||||||||||||||
$ | 227,997 | $ | (56,546) | $ | 171,451 |
June 30, 2021 | Estimated Useful Lives | Gross | Accumulated Amortization | Net | ||||||||||
Trade names (a) | 2 years to 25 years | $ | 121,000 | $ | (25,605 | ) | $ | 95,395 | ||||||
Venue management contracts | 5.67 years to 20 years | 85,700 | (17,518 | ) | 68,182 | |||||||||
Non-compete agreements | 5.75 years | 9,000 | (6,913 | ) | 2,087 | |||||||||
Festival rights | 15 years | 8,080 | (2,696 | ) | 5,384 | |||||||||
Other intangibles (c) | 15 years | 4,217 | (3,814 | ) | 403 | |||||||||
$ | 227,997 | $ | (56,546 | ) | $ | 171,451 | ||||||||
June 30, 2020 | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
Trade names (a) | $ | 97,530 | $ | (20,774) | $ | 76,756 | ||||||||||||||||||||
Venue management contracts (b) | 79,000 | (15,590) | 63,410 | |||||||||||||||||||||||
Non-compete agreements | 9,000 | (5,348) | 3,652 | |||||||||||||||||||||||
Festival rights | 8,080 | (2,156) | 5,924 | |||||||||||||||||||||||
Other intangibles (c) | 4,217 | (3,533) | 684 | |||||||||||||||||||||||
$ | 197,827 | $ | (47,401) | $ | 150,426 |
June 30, 2020 | Gross | Accumulated Amortization | Net | |||||||||
Trade names (a) | $ | 97,530 | $ | (20,774 | ) | $ | 76,756 | |||||
Venue management contracts (b) | 79,000 | (15,590 | ) | 63,410 | ||||||||
Non-compete agreements | 9,000 | (5,348 | ) | 3,652 | ||||||||
Festival rights | 8,080 | (2,156 | ) | 5,924 | ||||||||
Other intangibles (c) | 4,217 | (3,533 | ) | 684 | ||||||||
$ | 197,827 | $ | (47,401 | ) | $ | 150,426 | ||||||
(a) | The increase in trade names of $23,470 in Fiscal Year 2021, is primarily attributable to Tao Group Hospitality’s acquisition of Hakkasan. Such trade names were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models and relief-from-royalty approach with a weighted-average amortization period of approximately 17.7 years. During Fiscal Year 2020, the Company recorded a non-cash impairment charge of $3,541 associated with one venue within Tao Group Hospitality (see Note 1 “Impact of theCOVID-19 Pandemic”). |
(b) | The increase in venue management contracts of $23,700 in Fiscal Year 2021, is attributable to Tao Group Hospitality’s acquisition of Hakkasan. Such contracts were valued using unobservable inputs within Level III of the fair value hierarchy, utilizing the discounted cash flow models with a weighted-average amortization period of approximately 11.8 years. In addition, during the third quarter of Fiscal Year 2021, the Company recorded $14,280 of accelerated amortization expense for certain venue management contracts (gross cost of $17,000) as a result of Tao Group Hospitality converting certain venues to operating leases that were previously under management contracts. |
Fiscal year ending June 30, 2022 | $ | 14,558 | ||
Fiscal year ending June 30, 2023 | 13,350 | |||
Fiscal year ending June 30, 2024 | 12,676 | |||
Fiscal year ending June 30, 2025 | 12,676 | |||
Fiscal year ending June 30, 2026 | 12,668 |
Commitments (a) (b) | ||||||||||||||||||||
Debt Repayments(c) | Other(d) | Total (e) | ||||||||||||||||||
Fiscal year ending June 30, 2022 | $ | 12,750 | $ | 120,132 | $ | 132,882 | ||||||||||||||
Fiscal year ending June 30, 2023 | 17,137 | 118 | 17,255 | |||||||||||||||||
Fiscal year ending June 30, 2024 | 34,000 | 118 | 34,118 | |||||||||||||||||
Fiscal year ending June 30, 2025 | 6,500 | 57 | 6,557 | |||||||||||||||||
Fiscal year ending June 30, 2026 | 620,750 | — | 620,750 | |||||||||||||||||
Thereafter | — | — | — | |||||||||||||||||
$ | 691,137 | $ | 120,425 | $ | 811,562 |
Commitments (a) (b) | ||||||||||||
Debt Repayments (c) | Other (d) | Total (e) | ||||||||||
Fiscal year ending June 30, 2022 | $ | 12,750 | $ | 120,132 | $ | 132,882 | ||||||
Fiscal year ending June 30, 2023 | 17,137 | 118 | 17,255 | |||||||||
Fiscal year ending June 30, 2024 | 34,000 | 118 | 34,118 | |||||||||
Fiscal year ending June 30, 2025 | 6,500 | 57 | 6,557 | |||||||||
Fiscal year ending June 30, 2026 | 620,750 | 0 | 620,750 | |||||||||
Thereafter | 0 | 0 | 0 | |||||||||
$ | 691,137 | $ | 120,425 | $ | 811,562 | |||||||
(a) | The Company’s material off balance sheet arrangements primarily include (i) MSG Sphere in Las Vegas related commitments of approximately $1,025,000 for which the timing of future cash payments is uncertain and may change as development and construction progresses, (ii) $60,458 of operating lease payments for a lease in Burbank (excluding tenant allowance reimbursement of $24,000), which was not recognized on the Consolidated Balance Sheet as of June 30, 2021 since the Company has not yet taken possession of the property, (iii) $60,310 of commitments for capital expenditures, equipment purchases, and services agreements, and (iv) letters of credit of $4,226 obtained by the Company as collateral for lease agreements of the Company and Tao Group Hospitality. |
(b) | See Note 10 for more information regarding the Company’s contractually obligated minimum lease payments for operating leases having an initial noncancelable term in excess of one year for the Company’s venues, including the Tao Group Hospitality venues and various corporate offices. These commitments are presented exclusive of the imputed interest used to reflect the payment’s present value. In addition, see Note 24 Subsequent Events for a discussion of the amendment and extension of the Radio City Music Hall lease, executed in July 2021. |
(c) | See Note 14 for more information regarding the principal repayments required under the National Properties Term Loan Facility and the Tao Senior Secured Credit Facilities and a note with respect to a loan of $637 received by BCE from its noncontrolling interest holder that is due in April 2023. |
(d) | Includes accrued expense of approximately $98,000 associated with the development and construction of MSG Sphere in Las Vegas, all due within Fiscal Year 2022. |
(e) | Pension obligations have been excluded from the table above as the timing of the future cash payments is uncertain. See Note 15 for more information on the future funding requirements under our pension obligations. |
Line Item on Consolidated Balance Sheet | June 30, | |||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Money market accounts (a) | Cash and cash equivalents | $ | 362,237 | $ | — | |||||||||||||||
Time deposits (a) | Cash and cash equivalents | 691,521 | 777 | |||||||||||||||||
U.S. treasury bills (a) | Cash and cash equivalents | — | 699,945 | |||||||||||||||||
Term deposits (b) | Short-term investments | — | 37,250 | |||||||||||||||||
U.S. treasury bills (b) | Short-term investments | — | 299,942 | |||||||||||||||||
Notes receivable (b) | Other current assets | — | 6,328 | |||||||||||||||||
Equity investments with readily determinable fair value (c) | Other assets | 86,264 | 57,061 | |||||||||||||||||
Total assets measured at fair value | $ | 1,140,022 | $ | 1,101,303 |
Line Item on Consolidated Balance Sheet | June 30, | |||||||||
2021 | 2020 | |||||||||
Assets: | ||||||||||
Money market accounts (a) | Cash and cash equivalents | $ | 362,237 | $ | 0 | |||||
Time deposits (a) | Cash and cash equivalents | 691,521 | 777 | |||||||
U.S. treasury bills (a) | Cash and cash equivalents | 0 | 699,945 | |||||||
Term deposits (b) | Short-term investments | 0 | 37,250 | |||||||
U.S. treasury bills (b) | Short-term investments | 0 | 299,942 | |||||||
Notes receivable (b) | Other current assets | 0 | 6,328 | |||||||
Equity investments with readily determinable fair value (c) | Other assets | 86,264 | 57,061 | |||||||
Total assets measured at fair value | $ | 1,140,022 | $ | 1,101,303 | ||||||
(a) | The carrying amount of the Company’s cash equivalents in money market accounts, time deposits, and U.S. treasury bills approximate fair value due to their short-term maturities. |
(b) | As of June 30, 2020, the Company’s short-term investments consisted of investments that (i) had original maturities of greater than three months and (ii) could be converted into cash by the Company within one year. In addition, the Company’s notes receivable were invested with a banking institution as collateral for issuances of letters of credit. The Company’s notes receivable and short-term investments in term deposits were carried at cost, including interest accruals, which approximated fair value and were classified within Level I of the fair value hierarchy. |
(c) | See Note 7 for more information on the Company’s equity investments with readily determinable fair value in Townsquare and DraftKings. |
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Current and non-current portion of long-term debt under National Properties Term Loan Facility (a) | $ | 646,750 | $ | 669,386 | $ | — | $ | — | ||||||||||||||||||
Current and non-current portion of long-term debt under Tao Credit Facilities (a) | 43,750 | 43,851 | 33,750 | 32,367 |
June 30, 2021 | June 30, 2020 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Liabilities | ||||||||||||||||
Current and non-current portion of long-term debt under National Properties Term Loan Facility(a) | $ | 646,750 | $ | 669,386 | $ | 0 | $ | 0 | ||||||||
Current and non-current portion of long-term debt under Tao Credit Facilities(a) | 43,750 | 43,851 | 33,750 | 32,367 |
(a) | On May 23, 2019, Tao Group Intermediate Holdings LLC and Tao Group Operating LLC entered into a $40,000 five-year term loan facility and a $25,000 five-year term revolving facility. On November 12, 2020, MSG National Properties and certain subsidiaries of the Company entered into the National Properties Term Loan Facility, providing a five-year $650,000 term loan facility. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted indices of similar securities for which the inputs are readily observable. See Note 14 for more information and outstanding balances on this long-term debt. |
Tao Term Loan Facility | National Properties Term Loan Facility | Total | |||||||||||||||
Fiscal year ending June 30, 2022 | $ | 6,250 | $ | 6,500 | $ | 12,750 | |||||||||||
Fiscal year ending June 30, 2023 | 10,000 | 6,500 | 16,500 | ||||||||||||||
Fiscal year ending June 30, 2024 (a) | 27,500 | 6,500 | 34,000 | ||||||||||||||
Fiscal year ending June 30, 2025 | — | 6,500 | 6,500 | ||||||||||||||
Fiscal year ending June 30, 2026 | — | 620,750 | 620,750 | ||||||||||||||
Thereafter | — | — | — | ||||||||||||||
$ | 43,750 | $ | 646,750 | $ | 690,500 |
Tao Term Loan Facility | National Properties Term Loan Facility | Total | ||||||||||
Fiscal year ending June 30, 2022 | $ | 6,250 | $ | 6,500 | $ | 12,750 | ||||||
Fiscal year ending June 30, 2023 | 10,000 | 6,500 | 16,500 | |||||||||
Fiscal year ending June 30, 2024 (a) | 27,500 | 6,500 | 34,000 | |||||||||
Fiscal year ending June 30, 2025 | 0 | 6,500 | 6,500 | |||||||||
Fiscal year ending June 30, 2026 | 0 | 620,750 | 620,750 | |||||||||
Thereafter | 0 | 0 | 0 | |||||||||
$43,750 | $646,750 | $690,500 | ||||||||||
(a) | Repayment balance for the fiscal year ending June 30, 2024 includes the $15,000 borrowing outstanding under the Tao Revolving Credit Facility as of June 30, 2021. |
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net (a) | Principal | Unamortized Deferred Financing Costs | Net (a) | |||||||||||||||||||||||||||||||||
Current portion | ||||||||||||||||||||||||||||||||||||||
National Properties Term Loan Facility | $ | 6,500 | $ | (6,783) | $ | (283) | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Tao Term Loan Facility | 6,250 | (239) | 6,011 | 5,000 | (208) | 4,792 | ||||||||||||||||||||||||||||||||
Current portion of long-term debt, net of deferred financing costs (a) | $ | 12,750 | $ | (7,022) | $ | 5,728 | $ | 5,000 | $ | (208) | $ | 4,792 |
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net (a) | Principal | Unamortized Deferred Financing Costs | Net (a) | |||||||||||||||||||||||||||||||||
Noncurrent portion | ||||||||||||||||||||||||||||||||||||||
National Properties Term Loan Facility (a) | $ | 640,250 | $ | (22,819) | $ | 617,431 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
Tao Term Loan Facility | 22,500 | (475) | 22,025 | 28,750 | (624) | 28,126 | ||||||||||||||||||||||||||||||||
Tao Revolving Credit Facility (b) | 15,000 | — | 15,000 | — | — | — | ||||||||||||||||||||||||||||||||
Long-term debt, net of deferred financing costs (a) | $ | 677,750 | $ | (23,294) | $ | 654,456 | $ | 28,750 | $ | (624) | $ | 28,126 |
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net (a) | Principal | Unamortized Deferred Financing Costs | Net (a) | |||||||||||||||||||
Current portion | ||||||||||||||||||||||||
National Properties Term Loan Facility | $ | 6,500 | $ | (6,783 | ) | $ | (283 | ) | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Tao Term Loan Facility | 6,250 | (239 | ) | 6,011 | 5,000 | (208 | ) | 4,792 | ||||||||||||||||
Current portion of long-term debt, net of deferred financing costs (a) | $ | 12,750 | $ | (7,022 | ) | $ | 5,728 | $ | 5,000 | $ | (208 | ) | $ | 4,792 | ||||||||||
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||
Principal | Unamortized Deferred Financing Costs | Net (a) | Principal | Unamortized Deferred Financing Costs | Net (a) | |||||||||||||||||||
Noncurrent portion | ||||||||||||||||||||||||
National Properties Term Loan Facility (a) | $ | 640,250 | $ | (22,819 | ) | $ | 617,431 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Tao Term Loan Facility | 22,500 | (475 | ) | 22,025 | 28,750 | (624 | ) | 28,126 | ||||||||||||||||
Tao Revolving Credit Facility (b) | 15,000 | 0 | 15,000 | 0 | 0 | 0 | ||||||||||||||||||
Long-term debt, net of deferred financing costs (a) | $ | 677,750 | $ | (23,294 | ) | $ | 654,456 | $ | 28,750 | $ | (624 | ) | $ | 28,126 | ||||||||||
(a) | In addition to the outstanding balance associated with the Tao Term Loan Facility, the Tao Revolving Credit Facility and the National Properties Term Loan Facility disclosed above, the Company’ s Long-term debt, net of deferred financing costs in the accompanying consolidated balance sheet of $655,093 as of June 30, 2021 included $637 of the note with respect to a loan received by BCE from its noncontrolling interest holder that is due in April 2023. |
(b) | Unamortized deferred financing costs associated with Tao Revolving Credit Facility are presented under the captions Other current assets and Other assets in the accompanying consolidated balance sheets: |
June 30, 2021 | June 30, 2020 | |||||||
Other current assets | $ | 108 | $ | 85 | ||||
Other assets | 207 | 248 |
June 30, 2021 | June 30, 2020 | |||||||||||||
Other current assets | $ | 108 | $ | 85 | ||||||||||
Other assets | 207 | 248 |
Interest Payments | Loan Principal Repayments | |||||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
National Properties Term Loan Facility | $ | 22,879 | $ | — | $ | — | $ | 3,250 | $ | — | $ | — | ||||||||||||||||||||||||||
Tao Senior Credit Agreement | 1,128 | 1,817 | 13,084 | 5,000 | 21,250 | 109,312 | ||||||||||||||||||||||||||||||||
$ | 24,007 | $ | 1,817 | $ | 13,084 | $ | 8,250 | $ | 21,250 | $ | 109,312 |
Interest Payments | Loan Principal Repayments | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
National Properties Term Loan Facility | $ | 22,879 | $ | 0 | $ | 0 | $ | 3,250 | $ | 0 | $ | 0 | ||||||||||||
Tao Senior Credit Agreement | 1,128 | 1,817 | 13,084 | 5,000 | 21,250 | 109,312 | ||||||||||||||||||
$ | 24,007 | $ | 1,817 | $ | 13,084 | $ | 8,250 | $ | 21,250 | $ | 109,312 | |||||||||||||
�� |
Pension Plans | Postretirement Plan | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 174,892 | $ | 173,569 | $ | 3,658 | $ | 4,307 | |||||||||||||||
Service cost | 96 | 95 | 47 | 56 | |||||||||||||||||||
Interest cost | 3,385 | 5,261 | 45 | 108 | |||||||||||||||||||
Actuarial loss (gain) | 1,981 | 12,670 | (76) | 277 | |||||||||||||||||||
Benefits paid | (4,410) | (6,698) | (390) | (1,090) | |||||||||||||||||||
Curtailments | (91) | — | — | — | |||||||||||||||||||
Plan settlements paid | (3,777) | (551) | — | — | |||||||||||||||||||
Other | (177) | (74) | (66) | — | |||||||||||||||||||
Transfer of liabilities (a) | — | (9,380) | — | — | |||||||||||||||||||
Benefit obligation at end of period | 171,899 | 174,892 | 3,218 | 3,658 | |||||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of period | 151,756 | 132,965 | — | — | |||||||||||||||||||
Actual return on plan assets | 1,969 | 18,221 | — | — | |||||||||||||||||||
Employer contributions | 60 | 7,260 | — | — | |||||||||||||||||||
Benefits paid | (4,409) | (6,690) | — | — | |||||||||||||||||||
Plan settlements paid | (3,724) | — | — | — | |||||||||||||||||||
Fair value of plan assets at end of period | 145,652 | 151,756 | — | — | |||||||||||||||||||
Funded status at end of period | $ | (26,247) | $ | (23,136) | $ | (3,218) | $ | (3,658) |
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Change in benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of period | $ | 174,892 | $ | 173,569 | $ | 3,658 | $ | 4,307 | ||||||||
Service cost | 96 | 95 | 47 | 56 | ||||||||||||
Interest cost | 3,385 | 5,261 | 45 | 108 | ||||||||||||
Actuarial loss (gain) | 1,981 | 12,670 | (76 | ) | 277 | |||||||||||
Benefits paid | (4,410 | ) | (6,698 | ) | (390 | ) | (1,090 | ) | ||||||||
Curtailments | (91 | ) | 0 | 0 | 0 | |||||||||||
Plan settlements paid | (3,777 | ) | (551 | ) | 0 | 0 | ||||||||||
Other | (177 | ) | (74 | ) | (66 | ) | 0 | |||||||||
Transfer of liabilities (a) | 0 | (9,380 | ) | 0 | 0 | |||||||||||
Benefit obligation at end of period | 171,899 | 174,892 | 3,218 | 3,658 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of period | 151,756 | 132,965 | 0 | 0 | ||||||||||||
Actual return on plan assets | 1,969 | 18,221 | 0 | 0 | ||||||||||||
Employer contributions | 60 | 7,260 | 0 | 0 | ||||||||||||
Benefits paid | (4,409 | ) | (6,690 | ) | 0 | 0 | ||||||||||
Plan settlements paid | (3,724 | ) | 0 | 0 | 0 | |||||||||||
Fair value of plan assets at end of period | 145,652 | 151,756 | 0 | 0 | ||||||||||||
Funded status at end of period | $ | (26,247 | ) | $ | (23,136 | ) | $ | (3,218 | ) | $ | (3,658 | ) | ||||
(a) | Represents the benefit obligation related to the MSG Sports Non-Qualified Plans as of April 17, 2020, the date of the Entertainment Distribution. |
Pension Plans | Postretirement Plan | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Current liabilities (included in accrued employee related costs) | $ | (260) | $ | (331) | $ | (369) | $ | (331) | |||||||||||||||
Non-current liabilities (included in defined benefit and other postretirement obligations) | (25,987) | (22,805) | (2,849) | (3,327) | |||||||||||||||||||
$ | (26,247) | $ | (23,136) | $ | (3,218) | $ | (3,658) |
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Current liabilities (included in accrued employee related costs) | $ | (260 | ) | $ | (331 | ) | $ | (369 | ) | $ | (331 | ) | ||||
Non-current liabilities (included in defined benefit and other postretirement obligations) | (25,987 | ) | (22,805 | ) | (2,849 | ) | (3,327 | ) | ||||||||
$ | (26,247 | ) | $ | (23,136 | ) | $ | (3,218 | ) | $ | (3,658 | ) | |||||
Pension Plans | Postretirement Plan | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Actuarial loss | $ | (39,957) | $ | (36,704) | $ | (786) | $ | (1,025) | |||||||||||||||
Pension Plans | Postretirement Plan | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Actuarial loss | $ | (39,957 | ) | $ | (36,704 | ) | $ | (786 | ) | $ | (1,025 | ) |
Pension Plans | Postretirement Plan | |||||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
Service cost | $ | 96 | $ | 95 | $ | 91 | $ | 47 | $ | 56 | $ | 57 | ||||||||||||||||||||||||||
Interest cost | 3,385 | 5,261 | 5,895 | 45 | 108 | 150 | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (5,232) | (5,319) | (3,133) | — | — | — | ||||||||||||||||||||||||||||||||
Recognized actuarial loss | 1,093 | 1,336 | 1,281 | 98 | 6 | 5 | ||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service cost (credit) | — | — | — | — | — | (7) | ||||||||||||||||||||||||||||||||
Settlement loss recognized (a) | 870 | 67 | 52 | — | — | — | ||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | (1,513) | ||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 212 | $ | 1,440 | $ | 4,186 | $ | 190 | $ | 170 | $ | (1,308) | ||||||||||||||||||||||||||
Contributory charge to Madison Square Garden Sports Corp. for participation in the Shared Plans and all allocation of costs related to the corporate employees | — | (173) | (692) | — | (26) | 231 | ||||||||||||||||||||||||||||||||
Net periodic benefit cost reported in the consolidated and combined statements of operations | $ | 212 | $ | 1,267 | $ | 3,494 | $ | 190 | $ | 144 | $ | (1,077) |
Pension Plans | Postretirement Plan | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Service cost | $ | 96 | $ | 95 | $ | 91 | $ | 47 | $ | 56 | $ | 57 | ||||||||||||
Interest cost | 3,385 | 5,261 | 5,895 | 45 | 108 | 150 | ||||||||||||||||||
Expected return on plan assets | (5,232 | ) | (5,319 | ) | (3,133 | ) | 0 | 0 | 0 | |||||||||||||||
Recognized actuarial loss | 1,093 | 1,336 | 1,281 | 98 | 6 | 5 | ||||||||||||||||||
Amortization of unrecognized prior service cost (credit) | 0 | 0 | 0 | 0 | 0 | (7 | ) | |||||||||||||||||
Settlement loss recognized (a) | 870 | 67 | 52 | 0 | 0 | 0 | ||||||||||||||||||
Other | 0 | 0 | 0 | 0 | 0 | (1,513 | ) | |||||||||||||||||
Net periodic benefit cost | $ | 212 | $ | 1,440 | $ | 4,186 | $ | 190 | $ | 170 | $ | (1,308 | ) | |||||||||||
Contributory charge to Madison Square Garden Sports Corp. for participation in the Shared Plans and all allocation of costs related to the corporate employees | 0 | (173 | ) | (692 | ) | 0 | (26 | ) | 231 | |||||||||||||||
Net periodic benefit cost reported in the consolidated and combined statements of operations | $ | 212 | $ | 1,267 | $ | 3,494 | $ | 190 | $ | 144 | $ | (1,077 | ) | |||||||||||
(a) | For Fiscal Year 2021, Fiscal Year 2020 and Fiscal Year 2019, lump-sum payments totaling $52, $551 and $343, respectively, were distributed to vested participants of thenon-qualified excess cash balance plan, triggering the recognition of settlement losses in accordance with ASC Topic 715. Due to these pension settlements, the Company was required to remeasure its pension plan liability as of June 30, 2021 and 2020 and for Fiscal Year 2021, Fiscal Year 2020 and Fiscal Year 2019, respectively. Discount rates used for the projected benefit obligation and interest cost were 1.77% and 1.24% as of June 30, 2021, respectively, 2.95% and 2.83% as of June 30, 2020, respectively, and 3.75% and 3.18% as of June 30, 2019, respectively. Additionally, settlement charges of $870, $67 and $52 were recognized in Miscellaneous income (expense), net for Fiscal Year 2021, Fiscal Year 2020 and Fiscal Year 2019. |
Pension Plans | Postretirement Plan | ||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Actuarial gain (loss), net | $ | (5,244) | $ | 232 | $ | (3,137) | $ | 76 | $ | (277) | $ | 572 | |||||||||||||||||||||||
Recognized actuarial loss | 1,093 | 1,336 | 1,281 | 98 | 6 | 5 | |||||||||||||||||||||||||||||
Recognized prior service credit | — | — | — | — | — | (7) | |||||||||||||||||||||||||||||
Curtailments | 91 | — | — | 65 | — | — | |||||||||||||||||||||||||||||
Settlement loss recognized | 870 | 67 | 52 | — | — | — | |||||||||||||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | (3,190) | $ | 1,635 | $ | (1,804) | $ | 239 | $ | (271) | $ | 570 |
Pension Plans | Postretirement Plan | |||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Actuarial gain (loss), net | $ | (5,244 | ) | $ | 232 | $ | (3,137 | ) | $ | 76 | $ | (277 | ) | $ | 572 | |||||||||
Recognized actuarial loss | 1,093 | 1,336 | 1,281 | 98 | 6 | 5 | ||||||||||||||||||
Recognized prior service credit | 0 | 0 | 0 | 0 | 0 | (7 | ) | |||||||||||||||||
Curtailments | 91 | 0 | 0 | 65 | 0 | 0 | ||||||||||||||||||
Settlement loss recognized | 870 | 67 | 52 | 0 | 0 | 0 | ||||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | (3,190 | ) | $ | 1,635 | $ | (1,804 | ) | $ | 239 | $ | (271 | ) | $ | 570 | |||||||||
Pension Plans | Postretirement Plan | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Discount rate | 2.87 | % | 3.21 | % | 2.17 | % | 2.09 | % | |||||||||||||||
Interest crediting rate | 2.32 | % | 1.37 | % | n/a | n/a | |||||||||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | 6.25 | % | 6.50 | % | |||||||||||||||||
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 | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Discount rate | 2.87 | % | 3.21 | % | 2.17 | % | 2.09 | % | ||||||||
Interest crediting rate | 2.32 | % | 1.37 | % | n/a | n/a | ||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | 6.25 | % | 6.50 | % | ||||||||||
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, | |||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Discount rate—projected benefit obligation | 2.84 | % | 3.58 | % | 4.19 | % | 2.09 | % | 3.18 | % | 4.06 | % | ||||||||||||
Discount rate—service cost | 3.20 | % | 3.78 | % | 4.25 | % | 2.15 | % | 3.45 | % | 4.25 | % | ||||||||||||
Discount rate—interest cost | 1.92 | % | 3.21 | % | 3.90 | % | 1.23 | % | 2.84 | % | 3.67 | % | ||||||||||||
Expected long-term return on plan assets | 4.02 | % | 5.28 | % | 3.72 | % | n/a | n/a | n/a | |||||||||||||||
Interest crediting rate | 1.37 | % | 3.28 | % | 2.82 | % | n/a | n/a | n/a | |||||||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | n/a | 6.50 | % | 6.75 | % | 7.00 | % | |||||||||||||||
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 | 2027 | 2027 |
Pension Plans | Postretirement Plan | ||||||||||||||||||||||||||||||||||
Years Ended June 30, | Years Ended June 30, | ||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Discount rate - projected benefit obligation | 2.84 | % | 3.58 | % | 4.19 | % | 2.09 | % | 3.18 | % | 4.06 | % | |||||||||||||||||||||||
Discount rate - service cost | 3.20 | % | 3.78 | % | 4.25 | % | 2.15 | % | 3.45 | % | 4.25 | % | |||||||||||||||||||||||
Discount rate - interest cost | 1.92 | % | 3.21 | % | 3.90 | % | 1.23 | % | 2.84 | % | 3.67 | % | |||||||||||||||||||||||
Expected long-term return on plan assets | 4.02 | % | 5.28 | % | 3.72 | % | n/a | n/a | n/a | ||||||||||||||||||||||||||
Interest crediting rate | 1.37 | % | 3.28 | % | 2.82 | % | n/a | n/a | n/a | ||||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | n/a | n/a | n/a | 6.50 | % | 6.75 | % | 7.00 | % | ||||||||||||||||||||||||||
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 | 2027 | 2027 |
June 30, | |||||||||||
Asset Classes (a): | 2021 | 2020 | |||||||||
Fixed income securities | 98 | % | 99 | % | |||||||
Cash equivalents | 2 | % | 1 | % | |||||||
100 | % | 100 | % |
June 30, | ||||||||
Asset Classes (a) : | 2021 | 2020 | ||||||
Fixed income securities | 98 | % | 99 | % | ||||
Cash equivalents | 2 | % | 1 | % | ||||
100% | 100% | |||||||
(a) | The Company’s target allocation for pension plan assets is 99% fixed income securities and 1% cash equivalents as of June 30, 2021. |
Fair Value Hierarchy | June 30, | |||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||
U.S. Treasury securities (a) | I | $ | — | $ | 3,825 | |||||||||||||||
U.S. corporate bonds (b) | II | 100,229 | 110,542 | |||||||||||||||||
Foreign issues (c) | II | 20,119 | 13,764 | |||||||||||||||||
Municipal bonds (d) | II | 3,880 | 4,146 | |||||||||||||||||
Money market accounts (e) | I | 2,753 | 1,329 | |||||||||||||||||
Common collective trust (f) | II | 18,669 | 18,150 | |||||||||||||||||
Total investments measured at fair value | $ | 145,650 | $ | 151,756 |
Fair Value Hierarchy | June 30, | |||||||||||
2021 | 2020 | |||||||||||
Fixed income securities: | ||||||||||||
U.S. Treasury securities (a) | I | $ | 0 | $ | 3,825 | |||||||
U.S. corporate bonds (b) | II | 100,229 | 110,542 | |||||||||
Foreign issues (c) | II | 20,119 | 13,764 | |||||||||
Municipal bonds (d) | II | 3,880 | 4,146 | |||||||||
Money market accounts (e) | I | 2,753 | 1,329 | |||||||||
Common collective trust (f) | II | 18,669 | 18,150 | |||||||||
Total investments measured at fair value | $ | 145,650 | $ | 151,756 | ||||||||
(a) | U.S. Treasury Securities 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. |
(b) | U.S. corporate bonds are classified within Level II of the fair value hierarchy as they are valued using quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and evaluations based on various market and industry inputs. |
(c) | Foreign issued corporate bonds are classified within Level II of the fair value hierarchy as they are valued at a price that is based on a compilation of primarily observable market information or a broker quote in a non-active over-the-counter |
(d) | Municipal bonds are classified within Level II of the fair value hierarchy as they are valued at a price that is based on a compilation of primarily observable market information or a broker quote in a non-active over-the-counter |
(e) | Money market fund is 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. |
(f) | Common collective trust (CCT) is classified within Level II of the fair value hierarchy at its net asset value (NAV) as reported by the Trustee. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. The CCT publishes its daily NAV and uses such value as the basis for current transactions. |
Pension Plans | Postretirement Plan | ||||||||||
Fiscal year ending June 30, 2022 | $ | 11,927 | $ | 369 | |||||||
Fiscal year ending June 30, 2023 | 8,305 | 349 | |||||||||
Fiscal year ending June 30, 2024 | 7,904 | 319 | |||||||||
Fiscal year ending June 30, 2025 | 7,977 | 332 | |||||||||
Fiscal year ending June 30, 2026 | 8,540 | 322 | |||||||||
Fiscal years ending June 30, 2027 – 2031 | 43,320 | 1,054 |
Pension Plans | Postretirement Plan | |||||||
Fiscal year ending June 30, 2022 | $ | 11,927 | $ | 369 | ||||
Fiscal year ending June 30, 2023 | 8,305 | 349 | ||||||
Fiscal year ending June 30, 2024 | 7,904 | 319 | ||||||
Fiscal year ending June 30, 2025 | 7,977 | 332 | ||||||
Fiscal year ending June 30, 2026 | 8,540 | 322 | ||||||
Fiscal years ending June 30, 2027 – 2031 | 43,320 | 1,054 |
PPA Zone Status | FIP/RP Status Pending / Implemented | Company Contributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, | Years Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan Name | EIN | Pension Plan Number | 2021 | 2020 | 2021 | 2020 | 2019 | Surcharge Imposed | Expiration Date of CBA | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Fund of Local No. 1 of I.A.T.S.E. | 136414973 | 001 | Green as of 2020-12-31 | Green as of 2019-12-31 | No | $ | 194 | $ | 1,831 | $ | 2,529 | No | 6/30/2021 - 5/1/2023 | ||||||||||||||||||||||||||||||||||||||||||||||
All Other Multiemployer Defined Benefit Pension Plans | 584 | 3,137 | 3,234 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 778 | $ | 4,968 | $ | 5,763 |
PPA Zone Status | Company Contributions | |||||||||||||||||||||||||||||||||||||||
As of June 30, | Years Ended June 30, | |||||||||||||||||||||||||||||||||||||||
Plan Name | EIN | Pension Plan Number | 2021 | 2020 | FIP/RP Status Pending / Implemented | 2021 | 2020 | 2019 | Surcharge Imposed | Expiration Date of CBA | ||||||||||||||||||||||||||||||
Pension Fund of Local No. 1 of I.A.T.S.E. | 136414973 | 001 | | Green as of 2020-12-31 | | | Green as of 2019-12-31 | | No | $ | 194 | $ | 1,831 | $ | 2,529 | No | 6/30/2021 - 5/1/2023 | |||||||||||||||||||||||
All Other Multiemployer Defined Benefit Pension Plans | 584 | 3,137 | 3,234 | |||||||||||||||||||||||||||||||||||||
$ | 778 | $ | 4,968 | $ | 5,763 | |||||||||||||||||||||||||||||||||||
Fund Name | Exceeded 5 Percent of Total Contributions | Year Contributions to Plan Exceeded 5 Percent of Total Contributions | 5 Percent of Total Contributions (As of Plan’s Year-End) | |||||
Pension Fund of Local No. 1 of I.A.T.S.E | True | December 31, 2019, 2018 and 2017 | ||||||
32BJ/Broadway League Pension Fund | True | December 31, 2019, 2018 and 2017 | ||||||
Treasurers and Ticket Sellers Local 751 Pension Fund | True | August 31, 2020, 2019 and 2018 | ||||||
Years Ended June 30, | ||||||||||||||||||||
2021 (b) | 2020 | 2019 | ||||||||||||||||||
Nonperformance and performance based RSUs | $ | 40,195 | $ | 36,811 | $ | 31,509 | ||||||||||||||
Stock options (c) | 12,722 | 5,379 | 3,892 | |||||||||||||||||
Total share-based compensation expense (a) | $ | 52,917 | $ | 42,190 | $ | 35,401 |
Years Ended June 30, | ||||||||||||
2021 (b) | 2020 | 2019 | ||||||||||
Nonperformance and performance based RSUs | $ | 40,195 | $ | 36,811 | $ | 31,509 | ||||||
Stock options (c) | 12,722 | 5,379 | 3,892 | |||||||||
Total share-based compensation expense (a) | $ | 52,917 | $ | 42,190 | $ | 35,401 | ||||||
(a) | The share-based compensation expense reported above includes expense associated with MSG Sports’ RSUs and stock options granted to the Company’s employees prior to the Entertainment Distribution. |
(b) | The Company recorded previously unrecognized share-based compensation expense of $11,129 for Fiscal Year 2021 associated with the cancellation of certain awards pursuant to a settlement agreement related to an executive. |
(c) | Included $2,348 and $489 in accretion of put options within the Tao Group Hospitality reportable segment during Fiscal Year 2021 and Fiscal Year 2020, respectively. |
Number of | Weighted-Average Fair Value Per Share At Date of Grant | ||||||||||||||||
Nonperformance Based Vesting RSUs (In Thousands) | Performance Based Vesting RSUs (In Thousands) | ||||||||||||||||
Unvested award balance as of June 30, 2020 | 277 | 328 | $ | 75.34 | |||||||||||||
Granted | 424 | 343 | $ | 72.81 | |||||||||||||
Vested | (156) | (106) | $ | 70.84 | |||||||||||||
Forfeited | (48) | (54) | $ | 72.46 | |||||||||||||
Cancelled | — | (32) | $ | 88.58 | |||||||||||||
Unvested award balance as of June 30, 2021 | 497 | 479 | $ | 74.42 |
Number of | Weighted- Average Fair Value Per Share At Date of Grant | |||||||||||
Nonperformance Based Vesting RSUs (In Thousands) | Performance Based Vesting RSUs (In Thousands) | |||||||||||
Unvested award balance as of June 30, 2020 | 277 | 328 | $ | 75.34 | ||||||||
Granted | 424 | 343 | $ | 72.81 | ||||||||
Vested | (156 | ) | (106 | ) | $ | 70.84 | ||||||
Forfeited | (48 | ) | (54 | ) | $ | 72.46 | ||||||
Cancelled | 0 | (32 | ) | $ | 88.58 | |||||||
Unvested award balance as of June 30, 2021 | 497 | 479 | $ | 74.42 | ||||||||
Number of Time Vesting Options (In Thousands) | Weighted-Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance as of June 30, 2020 | 543 | $ | 99.68 | ||||||||||||||||||||
Cancelled | (449) | $ | 107.07 | ||||||||||||||||||||
Balance as of June 30, 2021 | 94 | $ | 64.36 | 6.46 | $ | 1,840 | |||||||||||||||||
Exercisable as of June 30, 2021 | 94 | $ | 64.36 | 6.46 | $ | 1,840 |
Number of Time Vesting Options (In Thousands) | Weighted- Average Exercise Price Per Share | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||||||
Balance as of June 30, 2020 | 543 | $ | 99.68 | |||||||||||||
Cancelled | (449 | ) | $ | 107.07 | ||||||||||||
Balance as of June 30, 2021 | 94 | $ | 64.36 | 6.46 | $ | 1,840 | ||||||||||
Exercisable as of June 30, 2021 | 94 | $ | 64.36 | 6.46 | $ | 1,840 |
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | |||||||||||||||
Balance as of June 30, 2020 | $ | (39,322) | $ | (12,535) | $ | (51,857) | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Other comprehensive loss before reclassifications | — | 27,688 | 27,688 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | (2,951) | — | (2,951) | ||||||||||||||
Other comprehensive income (loss), total | (2,951) | 27,688 | 24,737 | ||||||||||||||
Balance as of June 30, 2021 | $ | (42,273) | $ | 15,153 | $ | (27,120) |
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | |||||||||||||||||||||
Balance as of June 30, 2019 | $ | (42,080) | $ | (4,843) | $ | (46,923) | |||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Other comprehensive loss before reclassifications | (45) | (7,692) | (7,737) | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 1,409 | — | 1,409 | ||||||||||||||||||||
Other comprehensive income (loss), total | 1,364 | (7,692) | (6,328) | ||||||||||||||||||||
Adjustment related to the transfer of Pension Plans and Postretirement Plan liabilities as a result of the Entertainment Distribution | 1,394 | — | 1,394 | ||||||||||||||||||||
Balance as of June 30, 2020 | $ | (39,322) | $ | (12,535) | $ | (51,857) |
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | ||||||||||
Balance as of June 30, 2020 | $ | (39,322 | ) | $ | (12,535 | ) | $ | (51,857 | ) | |||
Other comprehensive income (loss): | ||||||||||||
Other comprehensive loss before reclassifications | 0 | 27,688 | 27,688 | |||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | (2,951 | ) | 0 | (2,951 | ) | |||||||
Other comprehensive income (loss), total | (2,951 | ) | 27,688 | 24,737 | ||||||||
Balance as of June 30, 2021 | $ | (42,273 | ) | $ | 15,153 | $ | (27,120 | ) | ||||
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Accumulated Other Comprehensive Loss | ||||||||||
Balance as of June 30, 2019 | $ | (42,080 | ) | $ | (4,843 | ) | $ | (46,923 | ) | |||
Other comprehensive income (loss): | ||||||||||||
Other comprehensive loss before reclassifications | (45 | ) | (7,692 | ) | (7,737 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 1,409 | 0 | 1,409 | |||||||||
Other comprehensive income (loss), total | 1,364 | (7,692 | ) | (6,328 | ) | |||||||
Adjustment related to the transfer of Pension Plans and Postretirement Plan liabilities as a result of the Entertainment Distribution | 1,394 | 0 | 1,394 | |||||||||
Balance as of June 30, 2020 | $ | (39,322 | ) | $ | (12,535 | ) | $ | (51,857 | ) | |||
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Unrealized Gain (Loss) on Available-for-sale Securities (b) | Accumulated Other Comprehensive Loss | |||||||||||||
Balance as of June 30, 2018 | $ | (40,846 | ) | $ | (502 | ) | $ | (5,570 | ) | $ | (46,918 | ) | ||||
Reclassification of unrealized loss on available-for sale securities | 0 | 0 | 5,570 | 5,570 | ||||||||||||
Other comprehensive loss: | ||||||||||||||||
Other comprehensive loss before reclassifications | (2,565 | ) | (4,341 | ) | 0 | (6,906 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | | 1,331 | | 0 | 0 | 1,331 | ||||||||||
Other comprehensive loss, total | (1,234 | ) | (4,341 | ) | 0 | (5,575 | ) | |||||||||
Balance as of June 30, 2019 | $ | (42,080 | ) | $ | (4,843 | ) | $ | 0 | $ | (46,923 | ) | |||||
(a) | Amounts reclassified from accumulated other comprehensive loss represent the amortization of net actuarial loss and net unrecognized prior service credit included in net periodic benefit cost, which is reflected under Miscellaneous income (expense), net in the accompanying consolidated and combined statements of operations (see Note 15). |
Pension Plans and Postretirement Plan | Cumulative Translation Adjustments | Unrealized Gain (Loss) on Available-for-sale Securities (b) | Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Balance as of June 30, 2018 | $ | (40,846) | $ | (502) | $ | (5,570) | $ | (46,918) | |||||||||||||||
Reclassification of unrealized loss on available-for sale securities | — | — | 5,570 | 5,570 | |||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Other comprehensive loss before reclassifications | (2,565) | (4,341) | — | (6,906) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss (a) | 1,331 | — | — | 1,331 | |||||||||||||||||||
Other comprehensive loss, total | (1,234) | (4,341) | — | (5,575) | |||||||||||||||||||
Balance as of June 30, 2019 | $ | (42,080) | $ | (4,843) | $ | — | $ | (46,923) |
(b) | As of July 1, 2018, upon adoption of ASU No. 2016-01, the Company recorded a transition adjustment to reclassify accumulated other comprehensive loss associated with its investment in Townsquare in the amount of $2,466pre-tax ($5,570, net of tax) to Madison Square Garden Sports Corp. Investment. See Note 8 for more information related to its investment in Townsquare. |
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Current expense (benefit): | ||||||||||||||||||||
Federal | $ | (6,400) | $ | 8,558 | $ | — | ||||||||||||||
State and other | (2,491) | 7,009 | 814 | |||||||||||||||||
(8,891) | 15,567 | 814 | ||||||||||||||||||
Deferred expense (benefit): | ||||||||||||||||||||
Federal | (627) | (6,083) | (350) | |||||||||||||||||
State and other | 147 | (4,438) | (21) | |||||||||||||||||
(480) | (10,521) | (371) | ||||||||||||||||||
Income tax expense (benefit) | $ | (9,371) | $ | 5,046 | $ | 443 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Current expense (benefit): | ||||||||||||
Federal | $ | (6,400 | ) | $ | 8,558 | $ | 0 | |||||
State and other | (2,491 | ) | 7,009 | 814 | ||||||||
(8,891) | 15,567 | 814 | ||||||||||
Deferred expense (benefit): | ||||||||||||
Federal | (627 | ) | (6,083 | ) | (350 | ) | ||||||
State and other | 147 | (4,438 | ) | (21 | ) | |||||||
(480) | (10,521) | (371) | ||||||||||
Income tax expense (benefit) | $ | (9,371 | ) | $ | 5,046 | $ | 443 | |||||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Federal tax expense (benefit) at statutory federal rate | $ | (92,362) | $ | (2,024) | $ | (6,236) | ||||||||||||||
State income taxes, net of federal benefit | (44,848) | 4,016 | 951 | |||||||||||||||||
Change in the estimated applicable tax rate used to determine deferred taxes | (3,368) | 1,237 | (454) | |||||||||||||||||
Nondeductible transaction costs | — | 6,961 | — | |||||||||||||||||
Federal tax credits | — | (1,480) | (1,900) | |||||||||||||||||
GAAP income of consolidated partnership attributable to non-controlling interest | 3,857 | 6,701 | 2,571 | |||||||||||||||||
Tax effect of indefinite intangible amortization | 1,072 | 993 | 449 | |||||||||||||||||
Change in valuation allowance | 121,216 | (14,220) | (71) | |||||||||||||||||
Nondeductible officers’ compensation (a) | 5,311 | 4,407 | 7,655 | |||||||||||||||||
Nondeductible expenses | 409 | 690 | 809 | |||||||||||||||||
Excess tax benefit related to shared based-payments awards | (1,066) | (2,276) | (3,376) | |||||||||||||||||
Other | 408 | 41 | 45 | |||||||||||||||||
Income tax expense (benefit) | $ | (9,371) | $ | 5,046 | $ | 443 |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Federal tax expense (benefit) at statutory federal rate | $ | (85,036 | ) | $ | (1,592 | ) | $ | (4,204 | ) | |||
State income taxes, net of federal benefit | (40,546 | ) | 4,259 | 1,996 | ||||||||
Change in the estimated applicable tax rate used to determine deferred taxes | (3,368 | ) | 1,237 | (454 | ) | |||||||
Nondeductible transaction costs | 0 | 6,961 | 0 | |||||||||
Federal tax credits | 0 | (1,480 | ) | (1,900 | ) | |||||||
GAAP income of consolidated partnership attributable to non-controlling interest | 3,857 | 6,701 | 2,571 | |||||||||
Tax effect of indefinite intangible amortization | 1,072 | 993 | 449 | |||||||||
Change in valuation allowance | 109,588 | (14,895 | ) | (3,148 | ) | |||||||
Nondeductible officers’ compensation (a) | 5,311 | 4,407 | 7,655 | |||||||||
Nondeductible expenses | 409 | 690 | 809 | |||||||||
Excess tax benefit related to shared based-payments awards | (1,066 | ) | (2,276 | ) | (3,376 | ) | ||||||
Other | 408 | 41 | 45 | |||||||||
Income tax expense (benefit) | $ | (9,371 | ) | $ | 5,046 | $ | 443 | |||||
(a) | The Tax Cuts and Jobs Act, enacted on December 22, 2017, included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1,000 annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1,000 is generally nondeductible. |
June 30, | |||||||||||
2021 | 2020 | ||||||||||
Deferred tax asset: | |||||||||||
Net operating loss (“NOL”) carryforwards | $ | 166,420 | $ | 1,575 | |||||||
Tax credit carryforwards | 532 | 532 | |||||||||
Accrued employee benefits | 24,825 | 26,538 | |||||||||
Restricted stock units and stock options | 12,527 | 14,267 | |||||||||
Deferred revenue | 42,616 | 45,050 | |||||||||
Right-of-use lease assets and lease liabilities, net | 8,234 | — | |||||||||
Investments | 63,639 | 39,737 | |||||||||
Other | — | 1,062 | |||||||||
Total deferred tax assets | $ | 318,793 | $ | 128,761 | |||||||
Less valuation allowance | (161,586) | (34,646) | |||||||||
Net deferred tax assets | $ | 157,207 | $ | 94,115 | |||||||
Deferred tax liabilities: | |||||||||||
Intangible and other assets | $ | (38,578) | $ | (39,893) | |||||||
Property and equipment | (124,864) | (59,077) | |||||||||
Prepaid expenses | (4,355) | (7,595) | |||||||||
Other | (1,382) | — | |||||||||
Total deferred tax liabilities | $ | (169,179) | $ | (106,565) | |||||||
Net deferred tax liability | $ | (11,972) | $ | (12,450) |
June 30, | ||||||||
2021 | 2020 | |||||||
Deferred tax asset: | ||||||||
Net operating loss (“NOL”) carryforwards | $ | 166,420 | $ | 1,575 | ||||
Tax credit carryforwards | 532 | 532 | ||||||
Accrued employee benefits | 24,825 | 26,538 | ||||||
Restricted stock units and stock options | 12,527 | 14,267 | ||||||
Deferred revenue | 42,616 | 45,050 | ||||||
Right-of-use | 8,234 | 0 | ||||||
Investments | 63,639 | 39,737 | ||||||
Other | 0 | 1,062 | ||||||
Total deferred tax assets | $ | 318,793 | $ | 128,761 | ||||
Less valuation allowance | (145,178 | ) | (29,952 | ) | ||||
Net deferred tax assets | $ | 173,615 | $ | 98,809 | ||||
Deferred tax liabilities: | ||||||||
Intangible and other assets | $ | (38,578 | ) | $ | (39,893 | ) | ||
Property and equipment | (124,864 | ) | (59,077 | ) | ||||
Prepaid expenses | (4,355 | ) | (7,595 | ) | ||||
Capitalized interest related to MSG Sphere | (16,408 | ) | (4,694 | ) | ||||
Other | (1,382 | ) | 0 | |||||
Total deferred tax liabilities | $ | (185,587 | ) | $ | (111,259 | ) | ||
Net deferred tax liability | $ | (11,972 | ) | $ | (12,450 | ) | ||
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Revenues | $ | 49,969 | $ | 18,408 | $ | 18,259 | ||||||||||||||
Operating expenses (credits): | ||||||||||||||||||||
Revenue sharing expenses | $ | 1,025 | $ | 110,002 | $ | 145,723 | ||||||||||||||
Allocation of charges for venue usage to MSG Sports | — | (46,072) | (47,093) | |||||||||||||||||
Reimbursement under Arena License Arrangement | (8,776) | — | — | |||||||||||||||||
Corporate general and administrative — credits with MSG Sports | (36,502) | (116,946) | (116,551) | |||||||||||||||||
Corporate general and administrative — credits with MSG Networks | (9,616) | (9,772) | (10,362) | |||||||||||||||||
Consulting fees | 77 | 214 | 1,792 | |||||||||||||||||
Advertising expenses | — | 506 | 1,037 | |||||||||||||||||
Other operating expenses (credits), net | 1,991 | 420 | (198) |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenues | $ | 49,969 | $ | 18,408 | $ | 18,259 | ||||||
Operating expenses (credits): | ||||||||||||
Revenue sharing expenses | $ | 1,025 | $ | 110,002 | $ | 145,723 | ||||||
Allocation of charges for venue usage to MSG Sports | 0 | (46,072 | ) | (47,093 | ) | |||||||
Reimbursement under Arena License Arrangement | (8,776 | ) | 0 | 0 | ||||||||
Corporate general and administrative — credits with MSG Sports | (36,502 | ) | (116,946 | ) | (116,551 | ) | ||||||
Corporate general and administrative — credits with MSG Networks | (9,616 | ) | (9,772 | ) | (10,362 | ) | ||||||
Consulting fees | 77 | 214 | 1,792 | |||||||||
Advertising expenses | 0 | 506 | 1,037 | |||||||||
Other operating expenses (credits), net | 1,991 | 420 | (198 | ) |
Year ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter-segment eliminations | Total | ||||||||||||||||||||||||||||||||||
Revenues | $ | 82,281 | $ | 100,166 | $ | — | $ | (2,046) | $ | 180,401 | ||||||||||||||||||||||||||||
Direct operating expenses | 103,089 | 66,591 | 3,334 | (1,090) | 171,924 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 268,705 | 54,034 | — | (25) | 322,714 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 8,955 | 25,567 | — | 114,664 | |||||||||||||||||||||||||||||||||
Restructuring charges | 21,299 | — | — | — | 21,299 | |||||||||||||||||||||||||||||||||
Operating loss | (390,954) | (29,414) | (28,901) | (931) | (450,200) | |||||||||||||||||||||||||||||||||
Loss in equity method investments | (6,858) | |||||||||||||||||||||||||||||||||||||
Interest income | 1,273 | |||||||||||||||||||||||||||||||||||||
Interest expense | (35,098) | |||||||||||||||||||||||||||||||||||||
Miscellaneous income, net | (a) | 51,062 | ||||||||||||||||||||||||||||||||||||
Loss from operations before income taxes | $ | (439,821) | ||||||||||||||||||||||||||||||||||||
Reconciliation of operating loss to adjusted operating loss: | ||||||||||||||||||||||||||||||||||||||
Operating loss | $ | (390,954) | $ | (29,414) | $ | (28,901) | $ | (931) | $ | (450,200) | ||||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026) | — | — | — | (13,026) | |||||||||||||||||||||||||||||||||
Share-based compensation expense | 47,633 | 5,284 | — | — | 52,917 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 80,142 | 8,955 | 25,567 | — | 114,664 | |||||||||||||||||||||||||||||||||
Restructuring charges | 21,299 | — | — | — | 21,299 | |||||||||||||||||||||||||||||||||
Other purchase accounting adjustments | — | — | 3,334 | — | 3,334 | |||||||||||||||||||||||||||||||||
Adjusted operating loss | $ | (254,906) | $ | (15,175) | $ | — | $ | (931) | $ | (271,012) | ||||||||||||||||||||||||||||
Other information: | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | (b) | $ | 448,962 | $ | 3,192 | $ | — | $ | — | $ | 452,154 |
Year ended June 30, 2021 | ||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter- segment eliminations | Total | ||||||||||||||||||||
Revenues | $ | 82,281 | $ | 100,166 | $ | 0 | $ | (2,046 | ) | $ | 180,401 | |||||||||||||
Direct operating expenses | 103,089 | 66,591 | 3,334 | (1,090 | ) | 171,924 | ||||||||||||||||||
Selling, general and administrative expenses | 268,705 | 54,034 | 0 | (25 | ) | 322,714 | ||||||||||||||||||
Depreciation and amortization | 80,142 | 8,955 | 25,567 | 0 | 114,664 | |||||||||||||||||||
Restructuring charges | 21,299 | 0 | 0 | 0 | 21,299 | |||||||||||||||||||
Operating loss | (390,954 | ) | (29,414 | ) | (28,901 | ) | (931 | ) | (450,200 | ) | ||||||||||||||
Loss in equity method investments | (6,858 | ) | ||||||||||||||||||||||
Interest income | 1,273 | |||||||||||||||||||||||
Interest expense | (208 | ) | ||||||||||||||||||||||
Miscellaneous income, net | (a) | 51,062 | ||||||||||||||||||||||
Loss from operations before income taxes | $ | (404,931 | ) | |||||||||||||||||||||
Reconciliation of operating loss to adjusted operating loss: | ||||||||||||||||||||||||
Operating loss | $ | (390,954 | ) | $ | (29,414 | ) | $ | (28,901 | ) | $ | (931 | ) | $ | (450,200 | ) | |||||||||
Add back: | ||||||||||||||||||||||||
Non-cash portion of arena license fees from MSG Sports | (13,026 | ) | 0 | 0 | 0 | (13,026 | ) | |||||||||||||||||
Share-based compensation expense | 47,633 | 5,284 | 0 | 0 | 52,917 | |||||||||||||||||||
Depreciation and amortization | 80,142 | 8,955 | 25,567 | 0 | 114,664 | |||||||||||||||||||
Restructuring charges | 21,299 | 0 | 0 | 0 | 21,299 | |||||||||||||||||||
Other purchase accounting adjustments | 0 | 0 | 3,334 | 0 | 3,334 | |||||||||||||||||||
Adjusted operating loss | $ | (254,906 | ) | $ | (15,175 | ) | $ | 0 | $ | (931 | ) | $ | (271,012 | ) | ||||||||||
Other information: | ||||||||||||||||||||||||
Capital expenditures | (b) | $ | 448,962 | $ | 3,192 | $ | 0 | $ | 0 | $ | 452,154 |
Year ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter-segment eliminations | Total | ||||||||||||||||||||||||||||||||||
Revenues | $ | 585,208 | $ | 180,201 | $ | — | $ | (2,473) | $ | 762,936 | ||||||||||||||||||||||||||||
Direct operating expenses | 388,643 | 116,638 | 4,361 | (1,520) | 508,122 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 282,043 | 63,049 | 6 | (461) | 344,637 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 84,289 | 8,156 | 12,454 | — | 104,899 | |||||||||||||||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | 10,871 | — | 105,817 | |||||||||||||||||||||||||||||||||
Gain on disposal of assets held for sale | (240,783) | — | — | — | (240,783) | |||||||||||||||||||||||||||||||||
Operating income (loss) | 71,016 | (102,588) | (27,692) | (492) | (59,756) | |||||||||||||||||||||||||||||||||
Loss in equity method investments | (4,433) | |||||||||||||||||||||||||||||||||||||
Interest income | 17,993 | |||||||||||||||||||||||||||||||||||||
Interest expense | (2,300) | |||||||||||||||||||||||||||||||||||||
Miscellaneous income, net | (a) | 38,855 | ||||||||||||||||||||||||||||||||||||
Loss from operations before income taxes | $ | (9,641) | ||||||||||||||||||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 71,016 | $ | (102,588) | $ | (27,692) | $ | (492) | $ | (59,756) | ||||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 41,227 | 963 | — | — | 42,190 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 84,289 | 8,156�� | 12,454 | — | 104,899 | |||||||||||||||||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | — | 94,946 | 10,871 | — | 105,817 | |||||||||||||||||||||||||||||||||
Gain on disposal of assets held for sale | (240,783) | — | — | — | (240,783) | |||||||||||||||||||||||||||||||||
Other purchase accounting adjustments | — | — | 4,367 | — | 4,367 | |||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | (44,251) | $ | 1,477 | $ | — | $ | (492) | $ | (43,266) | ||||||||||||||||||||||||||||
Other information: | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | (b) | $ | 448,944 | $ | 3,482 | $ | — | $ | — | $ | 452,426 |
Year ended June 30, 2020 | ||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter- segment eliminations | Total | ||||||||||||||||||||
Revenues | $ | 585,208 | $ | 180,201 | $ | 0 | $ | (2,473 | ) | $ | 762,936 | |||||||||||||
Direct operating expenses | 388,643 | 116,638 | 4,361 | (1,520 | ) | 508,122 | ||||||||||||||||||
Selling, general and administrative expenses | 282,043 | 63,049 | 6 | (461 | ) | 344,637 | ||||||||||||||||||
Depreciation and amortization | 84,289 | 8,156 | 12,454 | 0 | 104,899 | |||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | 0 | 94,946 | 10,871 | 0 | 105,817 | |||||||||||||||||||
Gain on disposal of assets held for sale | (240,783 | ) | 0 | 0 | 0 | (240,783 | ) | |||||||||||||||||
Operating income (loss) | 71,016 | (102,588 | ) | (27,692 | ) | (492 | ) | (59,756 | ) | |||||||||||||||
Loss in equity method investments | (4,433 | ) | ||||||||||||||||||||||
Interest income | 17,993 | |||||||||||||||||||||||
Interest expense | (240 | ) | ||||||||||||||||||||||
Miscellaneous income, net | (a) | 38,855 | ||||||||||||||||||||||
Loss from operations before income taxes | $ | (7,581 | ) | |||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||
Operating income (loss) | $ | 71,016 | $ | (102,588 | ) | $ | (27,692 | ) | $ | (492 | ) | $ | (59,756 | ) | ||||||||||
Add back: | ||||||||||||||||||||||||
Share-based compensation expense | 41,227 | 963 | 0 | 0 | 42,190 | |||||||||||||||||||
Depreciation and amortization | 84,289 | 8,156 | 12,454 | 0 | 104,899 | |||||||||||||||||||
Impairment for intangibles, long-lived assets, and goodwill | 0 | 94,946 | 10,871 | 0 | 105,817 | |||||||||||||||||||
Gain on disposal of assets held for sale | (240,783 | ) | 0 | 0 | 0 | (240,783 | ) | |||||||||||||||||
Other purchase accounting adjustments | 0 | 0 | 4,367 | 0 | 4,367 | |||||||||||||||||||
Adjusted operating income (loss) | $ | (44,251 | ) | $ | 1,477 | $ | 0 | $ | (492 | ) | $ | (43,266 | ) | |||||||||||
Other information: | ||||||||||||||||||||||||
Capital expenditures | (b) | $ | 448,944 | $ | 3,482 | $ | 0 | $ | 0 | $ | 452,426 |
Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter-segment eliminations | Total | ||||||||||||||||||||||||||||||||||
Revenues | $ | 797,058 | $ | 253,651 | $ | — | $ | (1,800) | $ | 1,048,909 | ||||||||||||||||||||||||||||
Direct operating expenses | 513,305 | 153,969 | 4,240 | (873) | 670,641 | |||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 239,321 | 75,529 | 524 | (852) | 314,522 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 87,005 | 6,437 | 15,901 | — | 109,343 | |||||||||||||||||||||||||||||||||
Operating income (loss) | (42,573) | 17,716 | (20,665) | (75) | (45,597) | |||||||||||||||||||||||||||||||||
Equity in earnings of equity method investments | 7,062 | |||||||||||||||||||||||||||||||||||||
Interest income | 30,163 | |||||||||||||||||||||||||||||||||||||
Interest expense | (15,262) | |||||||||||||||||||||||||||||||||||||
Miscellaneous expense, net | (a) | (6,061) | ||||||||||||||||||||||||||||||||||||
Loss from operations before income taxes | $ | (29,695) | ||||||||||||||||||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | (42,573) | $ | 17,716 | $ | (20,665) | $ | (75) | $ | (45,597) | ||||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 35,264 | 137 | — | — | 35,401 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 87,005 | 6,437 | 15,901 | — | 109,343 | |||||||||||||||||||||||||||||||||
Other purchase accounting adjustments | — | — | 4,764 | — | 4,764 | |||||||||||||||||||||||||||||||||
Adjusted operating income (loss) | $ | 79,696 | $ | 24,290 | $ | — | $ | (75) | $ | 103,911 | ||||||||||||||||||||||||||||
Other information: | ||||||||||||||||||||||||||||||||||||||
Capital expenditures | (b) | $ | 168,981 | $ | 15,021 | $ | — | $ | — | $ | 184,002 |
Year ended June 30, 2019 | ||||||||||||||||||||||||
Entertainment | Tao Group Hospitality | Purchase accounting adjustments | Inter- segment eliminations | Total | ||||||||||||||||||||
Revenues | $ | 797,058 | $ | 253,651 | $ | 0 | $ | (1,800 | ) | $ | 1,048,909 | |||||||||||||
Direct operating expenses | 513,305 | 153,969 | 4,240 | (873 | ) | 670,641 | ||||||||||||||||||
Selling, general and administrative expenses | 239,321 | 75,529 | 524 | (852 | ) | 314,522 | ||||||||||||||||||
Depreciation and amortization | 87,005 | 6,437 | 15,901 | 0 | 109,343 | |||||||||||||||||||
Operating income (loss) | (42,573 | ) | 17,716 | (20,665 | ) | (75 | ) | (45,597 | ) | |||||||||||||||
Equity in earnings of equity method investments | 7,062 | |||||||||||||||||||||||
Interest income | 30,163 | |||||||||||||||||||||||
Interest expense | (5,587 | ) | ||||||||||||||||||||||
Miscellaneous expense, net | (a) | (6,061 | ) | |||||||||||||||||||||
Loss from operations before income taxes | $ | (20,020 | ) | |||||||||||||||||||||
Reconciliation of operating income (loss) to adjusted operating income (loss): | ||||||||||||||||||||||||
Operating income (loss) | $ | (42,573 | ) | $ | 17,716 | $ | (20,665 | ) | $ | (75 | ) | $ | (45,597 | ) | ||||||||||
Add back: | ||||||||||||||||||||||||
Share-based compensation expense | 35,264 | 137 | 0 | 0 | 35,401 | |||||||||||||||||||
Depreciation and amortization | 87,005 | 6,437 | 15,901 | 0 | 109,343 | |||||||||||||||||||
Other purchase accounting adjustments | 0 | 0 | 4,764 | 0 | 4,764 | |||||||||||||||||||
Adjusted operating income (loss) | $ | 79,696 | $ | 24,290 | $ | 0 | $ | (75 | ) | $ | 103,911 | |||||||||||||
Other information: | ||||||||||||||||||||||||
Capital expenditures | (b) | $ | 168,981 | $ | 15,021 | $ | 0 | $ | 0 | $ | 184,002 |
(a) | Miscellaneous income (expense), net includes the following |
Years Ended June 30, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Realized and unrealized gain (loss) on equity investments with readily determinable fair value, see Note 8 for further detail. | $ | 51,178 | $ | 37,628 | $ | (3,497) | ||||||||||||||
Non-service cost components of net periodic pension and postretirement benefit costs | (264) | (1,239) | (2,276) | |||||||||||||||||
Dividend income from equity investments | — | 722 | 1,202 | |||||||||||||||||
Loss on extinguishment of debt associated with Tao Group Hospitality | — | — | (3,977) | |||||||||||||||||
Measurement alternative adjustments for equity investments without readily determinable fair value | — | (532) | 3,340 | |||||||||||||||||
Others, net, primarily reflects the impact of Tao Group Hospitality three-month lag elimination in Fiscal Year 2020. | 148 | 2,276 | (853) | |||||||||||||||||
$ | 51,062 | $ | 38,855 | $ | (6,061) |
Years Ended June 30, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Realized and unrealized gain (loss) on equity investments with readily determinable fair value, see Note 8 for further detail. | $ | 51,178 | $ | 37,628 | $ | (3,497 | ) | |||||
Non-service cost components of net periodic pension and postretirement benefit costs | (264 | ) | (1,239 | ) | (2,276 | ) | ||||||
Dividend income from equity investments | 0 | 722 | 1,202 | |||||||||
Loss on extinguishment of debt associated with Tao Group Hospitality | 0 | 0 | (3,977 | ) | ||||||||
Measurement alternative adjustments for equity investments without readily determinable fair value | 0 | (532 | ) | 3,340 | ||||||||
Others, net, primarily reflects the impact of Tao Group Hospitality three-month lag elimination in Fiscal Year 2020. | 148 | 2,276 | (853 | ) | ||||||||
$ | 51,062 | $ | 38,855 | $ | (6,061 | ) | ||||||
(b) | The Entertainment segment includes capital expendituresassociated with MSG Sphere in Las Vegas of $389,643, $380,258, and $93,334 for Fiscal Year 2021, Fiscal Year 2020 and Fiscal Year 2019, respectively. |
As of June 30, 2021 | As of June 30, 2020 | |||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | |||||||||||||||||||
Property and equipment, net | $ | 2,099,347 | $ | 49,228 | $ | 2,148,575 | $ | 1,646,115 | $ | 14,338 | $ | 1,660,453 | ||||||||||||
Total assets | 4,267,341 | 49,228 | 4,316,569 | 3,719,206 | 14,338 | 3,733,544 | ||||||||||||||||||
Additional paid-in capital | 2,744,866 | 13,977 | 2,758,843 | 2,751,318 | 13,977 | 2,765,295 | ||||||||||||||||||
Retained earnings (accumulated deficit) | (270,146 | ) | 35,251 | (234,895 | ) | 141,936 | 361 | 142,297 | ||||||||||||||||
Total Madison Square Garden Entertainment Corp. stockholders’ equity | 2,447,841 | 49,228 | 2,497,069 | 2,841,637 | 14,338 | 2,855,975 | ||||||||||||||||||
Total equity | 2,459,745 | 49,228 | 2,508,973 | 2,853,840 | 14,338 | 2,868,178 | ||||||||||||||||||
Total liabilities, redeemable noncontrollinginterests and equity | 4,267,341 | 49,228 | 4,316,569 | 3,719,206 | 14,338 | 3,733,544 |
Year ended June 30, 2021 | Year ended June 30, 2020 | Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | ||||||||||||||||||||||||||||
Interest expense | $ | (35,098 | ) | $ | 34,890 | $ | (208 | ) | $ | (2,300 | ) | $ | 2,060 | $ | (240 | ) | $ | (15,262 | ) | $ | 9,675 | $ | (5,587 | ) | ||||||||||||
Loss from operations before income taxes | (439,821 | ) | 34,890 | (404,931 | ) | (9,641 | ) | 2,060 | (7,581 | ) | (29,695 | ) | 9,675 | (20,020 | ) | |||||||||||||||||||||
Net loss | (430,450 | ) | 34,890 | (395,560 | ) | (14,687 | ) | 2,060 | (12,627 | ) | (30,138 | ) | 9,675 | (20,463 | ) | |||||||||||||||||||||
Net income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | (412,082 | ) | 34,890 | (377,192 | ) | 17,234 | 2,060 | 19,294 | (17,894 | ) | 9,675 | (8,219 | ) | |||||||||||||||||||||||
Basic earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | (17.39 | ) | 1.44 | (15.95 | ) | 0.72 | 0.09 | 0.81 | (0.75 | ) | 0.40 | (0.35 | ) | |||||||||||||||||||||||
Diluted earnings (loss) per common share attributable to Madison Square Garden Entertainment Corp.’s stockholders | (17.39 | ) | 1.44 | (15.95 | ) | 0.72 | 0.09 | 0.81 | (0.75 | ) | 0.40 | (0.35 | ) |
Year ended June 30, 2021 | Year ended June 30, 2020 | Year ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | ||||||||||||||||||||||||||||
Net loss | $ | (430,450 | ) | $ | 34,890 | $ | (395,560 | ) | $ | (14,687 | ) | $ | 2,060 | $ | (12,627 | ) | $ | (30,138 | ) | $ | 9,675 | $ | (20,463 | ) | ||||||||||||
Comprehensive loss | (405,713 | ) | 34,890 | (370,823 | ) | (21,015 | ) | 2,060 | (18,955 | ) | (35,713 | ) | 9,675 | (26,038 | ) | |||||||||||||||||||||
Comprehensive income (loss) attributable to Madison Square Garden Entertainment Corp.’s stockholders | (387,345 | ) | 34,890 | (352,455 | ) | 10,906 | 2,060 | 12,966 | (23,469 | ) | 9,675 | (13,794 | ) |
Year ended June 30, 2021 | Year e nded June 30, 2020 | Year e nded June 30, 2019 | ||||||||||||||||||||||||||||||||||
As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | As Previously Issued | Adjustment | As Revised | ||||||||||||||||||||||||||||
Net loss | $ | (430,450 | ) | $ | 34,890 | $ | (395,560 | ) | $ | (14,687 | ) | $ | 2,060 | $ | (12,627 | ) | $ | (30,138 | ) | $ | 9,675 | $ | (20,463 | ) | ||||||||||||
Net cash provided by (used in) operating activities | (289,480 | ) | 34,890 | (254,590 | ) | 96,031 | 2,060 | 98,091 | 91,724 | 9,675 | 101,399 | |||||||||||||||||||||||||
Capitalized interest | 0 | (34,890 | ) | (34,890 | ) | 0 | (2,060 | ) | (2,060 | ) | 0 | (9,675 | ) | (9,675 | ) | |||||||||||||||||||||
Net cash used in in v esting activities | (84,440 | ) | (34,890 | ) | (119,330 | ) | (389,657 | ) | (2,060 | ) | (391,717 | ) | (228,063 | ) | (9,675 | ) | (237,738 | ) |