Cover Cover
Cover Cover $ in Millions | 12 Months Ended |
Jun. 30, 2020USD ($)shares | |
Document Annual Report | true |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Document Type | 10-K |
Document Period End Date | Jun. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Transition Report | false |
Entity File Number | 1-34434 |
Entity Registrant Name | MSG NETWORKS INC. |
Entity Central Index Key | 0001469372 |
Entity Tax Identification Number | 27-0624498 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 11 Pennsylvania Plaza |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10001 |
City Area Code | 212 |
Local Phone Number | 465-6400 |
Title of 12(b) Security | Class A Common Stock |
Trading Symbol | MSGN |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
IcfrAuditorAttestationFlag | true |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Public Float | $ | $ 716 |
Class A Common Stock [Member] | |
Entity Common Stock, Shares Outstanding | 43,122,080 |
Class B Common Stock [Member] | |
Entity Common Stock, Shares Outstanding | 13,588,555 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 196,837 | $ 226,423 |
Accounts receivable, net | 105,549 | 108,349 |
Related party receivables, net | 14,190 | 16,091 |
Prepaid income taxes | 461 | 1,968 |
Prepaid expenses | 11,063 | 2,003 |
Other current assets | 4,541 | 5,286 |
Total current assets | 332,641 | 360,120 |
Property and equipment, net | 8,758 | 9,302 |
Amortizable intangible assets, net | 30,283 | 33,743 |
Goodwill | 424,508 | 424,508 |
Operating lease right-of-use assets | 17,153 | 0 |
Other assets | 37,460 | 39,226 |
Total assets | 850,803 | 866,899 |
Current Liabilities: | ||
Accounts payable | 2,115 | 907 |
Related party payables | 1,472 | 941 |
Current portion of long-term debt | 37,229 | 111,789 |
Current portion of operating lease liabilities | 5,492 | 0 |
Income taxes payable | 641 | 0 |
Accrued liabilities: | ||
Employee related costs | 14,187 | 15,466 |
Other accrued liabilities | 10,116 | 13,898 |
Deferred revenue | 2,753 | 185 |
Total current liabilities | 74,005 | 143,186 |
Long-term debt, net of current portion | 1,043,780 | 906,228 |
Long-term operating lease liabilities | 13,780 | 0 |
Defined benefit and other postretirement obligations | 25,860 | 25,834 |
Other employee related costs | 5,149 | 4,713 |
Other liabilities | 1,536 | 2,310 |
Deferred Income Tax Liabilities, Net | 239,542 | 243,396 |
Total liabilities | 1,403,652 | 1,325,667 |
Commitments and contingencies (see Notes 8, 9 and 10) | ||
Stockholders' Deficiency: | ||
Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding | 0 | 0 |
Additional paid-in capital | 12,731 | 9,916 |
Treasury stock, at cost, 21,137 and 2,972 shares as of June 30, 2020 and 2019, respectively | (457,363) | (179,561) |
Accumulated deficit | (100,792) | (282,414) |
Accumulated other comprehensive loss | (8,204) | (7,488) |
Total stockholders' deficiency | (552,849) | (458,768) |
Total liabilities and stockholders' deficiency | 850,803 | 866,899 |
Class A Common Stock [Member] | ||
Stockholders' Deficiency: | ||
Common stock, value issued | 643 | 643 |
Class B Common Stock [Member] | ||
Stockholders' Deficiency: | ||
Common stock, value issued | $ 136 | $ 136 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 45,000 | 45,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 21,137 | 2,972 |
Class A Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 360,000 | 360,000 |
Common stock, shares outstanding | 43,122 | 61,287 |
Class B Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000 | 90,000 |
Common stock, shares outstanding | 13,589 | 13,589 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | |||
Revenues (including related party revenues of $0, $0 and $230, for the years ended June 30, 2020, 2019, and 2018, respectively) | $ 685,797 | $ 720,845 | $ 696,651 |
Direct operating expenses (including related party expenses of $145,425, $152,136 and $148,580, for the years ended June 30, 2020, 2019, and 2018, respectively) | 282,837 | 300,274 | 291,082 |
Selling, general and administrative expenses (including related party expenses of $23,288, $25,725 and $22,240, for the years ended June 30, 2020, 2019, and 2018, respectively) | 100,829 | 103,274 | 83,073 |
Depreciation and amortization | 7,163 | 7,398 | 9,338 |
Operating income | 294,968 | 309,899 | 313,158 |
Other income (expense): | |||
Interest income | 4,234 | 6,343 | 4,388 |
Interest expense | (36,324) | (47,589) | (43,312) |
Debt refinancing expense | (2,764) | 0 | 0 |
Other components of net periodic benefit cost | (1,030) | 244 | (1,710) |
Nonoperating income, Total | (35,884) | (41,002) | (40,634) |
Income from operations before income taxes | 259,084 | 268,897 | 272,524 |
Income tax benefit (expense) | (73,863) | (82,715) | 16,338 |
Net Income (Loss) Attributable to Parent | $ 185,221 | $ 186,182 | $ 288,862 |
Earnings per share: | |||
Basic | $ 2.93 | $ 2.48 | $ 3.83 |
Diluted | $ 2.92 | $ 2.46 | $ 3.81 |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 63,172 | 75,069 | 75,381 |
Diluted (in shares) | 63,515 | 75,731 | 75,820 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | |||
Related party revenues | $ 0 | $ 0 | $ 230 |
Related party direct operating expenses | 144,655 | 152,136 | 148,580 |
Related party selling, general and administrative | $ 23,288 | $ 25,725 | $ 22,240 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 185,221 | $ 186,182 | $ 288,862 |
Net unamortized gains (losses) arising during the period | (1,544) | (1,587) | 1,163 |
Amortization of net actuarial loss included in net periodic benefit cost | 536 | 483 | 656 |
Amortization of prior service credit included in net periodic benefit cost | (3) | (7) | (13) |
Settlement gain | 0 | 5 | 0 |
Other comprehensive income (loss), before income taxes | (1,011) | (1,116) | 1,806 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 295 | 328 | (559) |
Other comprehensive income (loss) | (716) | (788) | 1,247 |
Comprehensive income | 184,505 | 185,394 | 290,109 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Other comprehensive income (loss) | $ (716) | $ (788) | $ 1,247 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 185,221 | $ 186,182 | $ 288,862 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,163 | 7,398 | 9,338 |
Amortization of deferred financing costs | 1,994 | 3,003 | 3,003 |
Debt refinancing expense | 455 | 0 | 0 |
Share-based compensation expense | 19,235 | 18,087 | 13,979 |
Provision for doubtful accounts | 278 | 930 | 17 |
Change in assets and liabilities: | |||
Accounts receivable, net | 2,582 | 1,371 | (5,391) |
Related party receivables, net | 1,840 | (3,984) | 4,800 |
Prepaid expenses and other assets | (7,129) | 4,464 | 1,398 |
Accounts payable | 82 | (553) | 219 |
Related party payables, including payable to MSGS and MSGE | 531 | 277 | (2,171) |
Prepaid/payable for income taxes | 2,148 | (9,294) | 10,165 |
Accrued and other liabilities | (3,377) | 364 | (2,168) |
Deferred revenue | 2,568 | (4,441) | (445) |
Deferred income taxes | (3,559) | 2,155 | (110,996) |
Net cash provided by operating activities | 210,032 | 205,959 | 210,610 |
Cash flows from investing activities: | |||
Capital expenditures | (2,814) | (2,879) | (3,724) |
Investment in nonconsolidated entity | 0 | (2,000) | 0 |
Net cash used in investing activities | (2,814) | (4,879) | (3,724) |
Cash flows from financing activities: | |||
Principal repayments on term loan facilities (see Note 7) | (35,000) | (175,000) | (125,000) |
Proceeds from senior secured credit facilities (see Note 7) | 100,000 | 0 | 0 |
Payments for financing costs | 3,983 | 0 | 0 |
Payments for Repurchase of Common Stock | (293,531) | 0 | (13,850) |
Taxes paid in lieu of shares issued for share-based compensation | (4,290) | (5,000) | (3,780) |
Net cash used in financing activities | (236,804) | (180,000) | (142,630) |
Net increase (decrease) in cash and cash equivalents | (29,586) | 21,080 | 64,256 |
Cash and Cash Equivalents [Abstract] | |||
Cash | $ 196,837 | $ 226,423 | $ 205,343 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficiency) - USD ($) $ in Thousands | Total | Common Stock Issued [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Jun. 30, 2017 | $ (944,207) | $ 779 | $ 6,909 | $ (198,800) | $ (746,539) | $ (6,556) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 288,862 | 288,862 | ||||
Other comprehensive income | 1,247 | 1,247 | ||||
Comprehensive income | 290,109 | |||||
Share-based compensation expense | 13,979 | 13,979 | ||||
Tax withholding associated with shares issued for share-based compensation | (3,773) | (3,773) | ||||
Shares issued upon distribution of Restricted Stock Units | 0 | (13,048) | 16,769 | (3,721) | ||
Repurchases of Class A common stock | (13,850) | (13,850) | ||||
Reclassification of Stranded Tax Effects | 0 | 1,391 | (1,391) | |||
Balance at Jun. 30, 2018 | (657,742) | 779 | 4,067 | (195,881) | (460,007) | (6,700) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 186,182 | 186,182 | ||||
Other comprehensive income | (788) | (788) | ||||
Comprehensive income | 185,394 | |||||
Share-based compensation expense | 18,087 | 18,087 | ||||
Tax withholding associated with shares issued for share-based compensation | (4,879) | (4,879) | ||||
Shares issued upon distribution of Restricted Stock Units | 0 | (7,359) | 16,320 | (8,961) | ||
Balance at Jun. 30, 2019 | (458,768) | 779 | 9,916 | (179,561) | (282,414) | (7,488) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption of ASC 606 | 372 | 372 | ||||
Net income | 185,221 | 185,221 | ||||
Other comprehensive income | (716) | (716) | ||||
Comprehensive income | 184,505 | |||||
Share-based compensation expense | 19,235 | 19,235 | ||||
Tax withholding associated with shares issued for share-based compensation | (4,290) | (4,290) | ||||
Shares issued upon distribution of Restricted Stock Units | 0 | (12,130) | 15,729 | (3,599) | ||
Repurchases of Class A common stock | (293,531) | (293,531) | ||||
Balance at Jun. 30, 2020 | $ (552,849) | $ 779 | $ 12,731 | $ (457,363) | $ (100,792) | $ (8,204) |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Jun. 30, 2020 | |
Description of Business And Basis of Presentation [Abstract] | |
Description of Business | Description of Business and Basis of Presentation Description of Business MSG Networks Inc. (together with its subsidiaries, the “Company”), incorporated on July 29, 2009, owns and operates two regional sports and entertainment networks, MSG Network and MSG+, collectively “MSG Networks.” MSG Networks feature a wide range of compelling sports content, including exclusive live local games and other programming of the New York Knicks (the “Knicks”) of the National Basketball Association (“NBA”); the New York Rangers (the “Rangers”), New York Islanders (the “Islanders”), New Jersey Devils (the “Devils”) and Buffalo Sabres (the “Sabres”) of the National Hockey League (“NHL”); as well as significant coverage of the New York Giants and Buffalo Bills of the National Football League. On September 30, 2015 (the “Distribution Date”), the Company distributed to its stockholders all of the outstanding common stock of Madison Square Garden Sports Corp. (formerly, The Madison Square Garden Company) (together with its subsidiaries , “MSGS”) (the “Distribution”). The Company operates and reports financial information in one segment. Substantially all revenues and assets of the Company are attributed to or located in the United States and are primarily concentrated in the New York City metropolitan area. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | . Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amount of revenues and expenses. Such estimates include the valuation of accounts receivable, investments, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, rights fees expense, income tax benefit (expense), performance and share-based compensation, depreciation and amortization, litigation matters, and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors. Due to the novel coronavirus (“COVID-19”) pandemic, in March 2020, the 2019-20 NBA and NHL seasons were suspended. On May 26, 2020, the NHL announced that the 2019-20 regular season was complete and that certain teams would return to play post-season games. The Rangers and the Islanders, but not the Devils or the Sabres, participated in such post-season games. On June 4, 2020, the NBA announced that certain teams would return to play for the purpose of determining post-season participation and seeding, but not the Knicks. The NHL and NBA plans for resumption of play would have each league ending its respective post-season in October 2020, which would delay the start of each league's 2020-21 season. Our estimates have been prepared based on these facts, and we will continue to monitor updates made by the NBA and NHL with regards to league play and the impact on the Company’s use of estimates. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control, including government and league actions taken to contain or mitigate the COVID-19 pandemic, could be material and would be reflected in the Company’s financial statements in future periods. Revenue Recognition The Company generates revenues principally from affiliation fees charged to cable, satellite, telephone, and other platforms (“Distributors”) for the right to carry its networks, as well as from the sale of advertising. The Company’s advertising revenue is largely derived from the sale of inventory in its live professional sports programming, as such, a disproportionate share of this revenue has historically been earned in the Company’s second and third fiscal quarters. The Company’s revenue recognition policies that describe the nature, amount, timing and uncertainty associated with each major source of revenue from contracts with customers are described in Note 3 . Direct Operating Expenses Direct operating expenses primarily represent media rights fees, and other direct programming and production costs, such as the salaries of on-air personalities, producers, directors, technicians, writers and other creative staff, as well as expenses associated with location costs, remote facilities and maintaining studios, origination, and transmission services and facilities. The professional team media rights acquired under media rights agreements to telecast various sporting events and other programming for exhibition on MSG Networks are typically expensed on a straight-line basis over the applicable annual contract or license period. Advertising Expenses Advertising costs are typically charged to expense when incurred. The Company enters into nonmonetary transactions, primarily with its Distributors, that involve the exchange of advertising and promotional benefits, for the Company’s services. Total advertising costs classified in selling, general and administrative expenses were $20,406 , $18,249 , and $11,229 for the years ended June 30, 2020 , 2019 , and 2018 , respectively. Income Taxes The Company’s provision for income taxes is based on current period income, changes in deferred tax assets and liabilities, and changes in estimates with regard to uncertain tax positions. Deferred tax assets are subject to an ongoing assessment of realizability. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the realization of its deductible temporary differences. If such estimates and related assumptions change in the future, the Company may be required to record valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company’s consolidated statements of operations. The Company measures its deferred tax liability with regard to MSGN Holdings, L.P. (“MSGN L.P.”), an indirect wholly-owned subsidiary of the Company through which the Company conducts substantially all of its operations, based on the difference between the tax basis and the carrying amount for financial reporting purposes; this is commonly referred to as the outside basis difference. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. The Company accounts for investment tax credits, if any, using the “flow-through” method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. Investment in Nonconsolidated Entity The Company’s investment in a nonconsolidated entity, which is included in other assets in the accompanying consolidated balance sheets, does not have a readily determinable fair value. As such, the Company has elected to account for it at cost, which would be adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for an identical or a similar investment of the same issuer (referred to as the measurement alternative method). Investments accounted for under the measurement alternative method are classified within Level III of the fair value hierarchy. As of June 30, 2020 , the carrying amount of the Company’s equity investment in the nonconsolidated entity was $2,000 , and the Company did not identify any potential adjustments to the cost of its investment through June 30, 2020 . Share-based Compensation The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units (“RSUs”) granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date. The Company has elected to recognize share-based compensation cost for graded vesting awards with only service conditions on a straight-line basis over the requisite service period for the entire award. The Company accounts for forfeitures as they occur. Cash and Cash Equivalents The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets. The Company presents the change in these book cash overdrafts as cash flows from operating activities. Accounts Receivable The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible accounts receivables. The allowance for doubtful accounts is estimated based on the Company’s analysis of receivables aging, specific identification of certain receivables that are at risk of not being paid, historical collection experience and other factors. The Company’s allowance for doubtful accounts was $1,418 and $1,169 as of June 30, 2020 and 2019 , respectively. Long-Lived and Indefinite-Lived Assets The Company’s long-lived and indefinite-lived assets consist of goodwill, amortizable intangible assets, and property and equipment. Goodwill has an indefinite useful life and is not amortized. Identifiable intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Property and equipment is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to leasehold improvements, amortized over the shorter of the lease term or the asset’s estimated useful life. The useful lives of the Company’s long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws. Impairment of Long-Lived and Indefinite-Lived Assets Goodwill is tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company does not need to perform the quantitative goodwill impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, then the Company would perform the quantitative goodwill impairment test. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company has one reporting unit for evaluating goodwill impairment. The Company reviews other long-lived assets (including intangible assets that are amortized and property and equipment) for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value. In assessing the recoverability of the Company’s long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve significant uncertainties and judgments and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets. Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 12 , the Company has both funded and unfunded defined benefit plans, as well as a contributory welfare plan, covering certain full-time employees and retirees. The expense recognized by the Company is determined using certain assumptions, including the discount rate, expected long-term rate of return, and rate of compensation increases, among others. The Company recognizes the funded status of its defined benefit pension and other postretirement plans (other than multiemployer plans) as an asset or liability in the consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). Earnings (Loss) Per Common Share Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of RSUs and exercise of stock options (see Note 13 ) only in the periods in which such effect would have been dilutive. Common Stock Holders of the Company’s Class A common stock, par value $0.01 per share (“Class A Common Stock”) have one vote per share . Holders of the Company’s Class B common stock, par value $0.01 per share (“Class B Common Stock”) have ten votes per share . The Company’s Class A Common Stock has no conversion rights, and the Company’s Class B Common Stock can be converted to Class A Common Stock at any time with a conversion ratio of one share of Class A Common Stock for one share of Class B Common Stock. Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally on a per share basis. All actions submitted to a vote of stockholders are voted on by holders of Class A Common Stock (with one vote per share) and Class B Common Stock (with ten votes per share) voting together as a single class, except for the election of directors. With respect to the election of directors, holders of Class A Common Stock vote together as a separate class and are entitled to elect 25% of the total number of directors constituting the whole Board of Directors and, if such 25% is not a whole number, then the holders of Class A Common Stock, voting together as a separate class, are entitled to elect the nearest higher whole number of directors that is at least 25% of the total number of directors. Holders of Class B Common Stock, voting together as a separate class, are entitled to elect the remaining directors. In addition, members of the Dolan family group are parties to a Stockholders Agreement, which has the effect of causing the voting power of the Class B stockholders to be cast as a block on all matters to be voted on by holders of the Company’s Class B Common Stock. Recently Adopted Accounting Pronouncements The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842 , Leases , on July 1, 2019 (“Adoption Date”), which superseded the lease recognition requirements in ASC Topic 840 , Leases . The Company applied the modified retrospective approach and effective date method. The Company elected the package of practical expedients, permitted under the transition guidance in the new standard, which among other things allowed for the carry forward of the historical classification of leases. The adoption of ASC 842 resulted in the recognition of operating lease liabilities of approximately $18,700 and operating lease right-of-use assets of the same amount as of Adoption Date. The historical net lease liabilities balances as of Adoption Date were eliminated as an offset to the operating lease right-of-use assets, resulting in net lease assets of approximately $16,300 . The new standard did not impact the Company’s consolidated net income or cash flows. See Note 8 for further discussion regarding leases. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses, and subsequent ASUs that amended the application of ASU No. 2016-13, which introduces a new impairment model for most financial assets and certain other instruments. For trade and other receivables, the Company will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model and generally will result in earlier recognition of allowances for losses. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Topic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans , which removes, adds, or clarifies disclosure requirements relating to defined benefit plans to improve disclosure effectiveness. This standard will be effective for the Company beginning in the fourth quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied retroactively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-02, Entertainment — Films — Other Assets — Film Costs (Subtopic 926-20) and Entertainment — Broadcasters — Intangibles — Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , which amends ASC Subtopic 920-350 to align the accounting for production costs of an episodic television series with that for the costs of producing films. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021. The standard is to be applied prospectively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. This standard will be effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The standard is to be applied prospectively to all periods presented. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. This standard was effective upon issuance, and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, if elected. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Notes) | 12 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition Affiliation Fee Revenue Affiliation fee revenue is earned from Distributors for the right to carry the Company’s networks under contracts, commonly referred to as “affiliation agreements.” The Company’s performance obligation under its affiliation agreements is satisfied as the Company provides its programming over the term of the affiliation agreement. Affiliation fee revenue constituted at least 90% of the Company’s consolidated revenues for the year ended June 30, 2020 . Substantially all of the Company’s affiliation agreements are sales-based and usage-based royalty arrangements, which are recognized as the sale or usage occurs. The transaction price is represented by affiliation fees that are generally based upon contractual rates applied to the number of the Distributor’s subscribers who receive or can receive the Company’s programming. Such subscriber information is generally not received until after the close of the reporting period, and in these cases, the Company estimates the number of subscribers. Historical adjustments to recorded estimates have not been material. The Company’s payment terms vary and are generally within 30-60 days after revenue is earned . Advertising Revenue The Company primarily earns advertising revenue through the sale of commercial time and other advertising inventory during its programming. In general, these advertising arrangements either do not exceed one year or are primarily multi-year media banks, the elements of which are agreed upon each year. Advertising revenue is recognized as advertising is aired. In certain advertising arrangements, the Company guarantees specified viewer ratings for its programming. In such cases, the promise to deliver the guaranteed viewer ratings by airing the advertising represents the Company’s performance obligation. A contract liability is recognized as deferred revenue to the extent any guaranteed viewer ratings are not met and the customer is expected to exercise any right for additional advertising time, and is subsequently recognized as revenue either when the Company provides the required additional advertising time, or additional performance requirements become remote, which may be at the time the guarantee obligation contractually expires. The Company’s payment terms vary by the type of customer. Generally, payment terms are 30-60 days after revenue is earned . Principal versus Agent Revenue Recognition The Company has an advertising sales representation agreement with Madison Square Garden Entertainment Corp. (together with its subsidiaries, “MSGE”) that provides for MSGE to act as its advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission (see Note 15 ). The Company reports advertising revenue on a gross basis as it is primarily responsible for the fulfillment of advertising orders. Noncash Consideration The Company enters into nonmonetary transactions, primarily with its Distributors, that involve the exchange of products or services, such as advertising and promotional benefits, for the Company’s services. For arrangements that are subject to sales-based and usage-based royalty guidance, the Company measures noncash consideration that it receives at fair value as the sale or usage occurs. For other arrangements, the Company measures the estimated fair value of the noncash consideration that it receives at contract inception. If the Company cannot reasonably estimate the fair value of the noncash consideration, the Company measures the fair value of the consideration indirectly by reference to the standalone selling price of the services promised to the customer in exchange for the consideration. Transaction Price Allocated to Future Performance Obligations Substantially all of the Company’s affiliation agreements are licenses of functional intellectual property where revenue is derived from sales-based and usage-based royalty arrangements, and generally the Company’s advertising arrangements either do not exceed one year or are primarily multi-year media banks, the elements of which are agreed upon each year. For these types of arrangements, the Company applies a practical expedient that allows it to omit disclosure of the aggregate amount of consideration the Company expects to receive in exchange for transferring services to a customer (transaction price) that is allocated to performance obligations that have not yet been satisfied. As of June 30, 2020 , the aggregate amount of transaction price allocated to remaining performance obligations, other than for contracts that the Company has applied the practical expedient, was $10,930 of which $9,836 will be recognized through fiscal year 2023 and $1,094 thereafter. Contract Balances from Contracts with Customers An account receivable is recorded when there is an unconditional right to consideration based on a contract with a customer. When consideration is received from a customer prior to transferring services to the customer under the terms of a contract, a contract liability (deferred revenue) is recorded. For certain types of contracts with customers, the Company may recognize revenue in advance of the contractual right to invoice the customer, resulting in an amount recorded to contract assets. Once the Company has an unconditional right to consideration under these contracts, the contract assets are reclassified to accounts receivable. Deferred revenue is recognized as revenue when, or as, control of the services is transferred to the customer and all revenue recognition criteria have been met. The following table provides information about current contract balances from contracts with customers: June 30, 2020 2019 Accounts receivable (including advertising receivable included in related party receivables, net) $ 124,325 $ 130,422 Contract asset, short-term (included in other current assets) — 839 Contract asset, long-term (included in other assets) 37 — Deferred revenue, short-term 2,753 185 Deferred revenue, long-term (included in other liabilities) 69 230 The amount of revenue recognized for the year ended June 30, 2020 related to deferred revenue (contract liability) recorded as of June 30, 2019 was approximately $185 . |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Common Share | Computation of Earnings (Loss) per Common Share The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS: Years Ended June 30, 2020 2019 2018 Weighted-average number of shares for basic EPS 63,172 75,069 75,381 Dilutive effect of shares issuable under share-based compensation plans 343 662 439 Weighted-average number of shares for diluted EPS 63,515 75,731 75,820 Anti-dilutive shares 2,793 714 519 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Amortizable Intangible Assets During the first quarter of fiscal year 2020 , the Company performed its annual impairment test of goodwill. As the Company’s one reporting unit had a negative carrying value of net assets, there was no impairment of goodwill identified. The Company’s intangible assets subject to amortization are as follows: June 30, 2020 2019 Affiliate relationships $ 83,044 $ 83,044 Less accumulated amortization (52,761 ) (49,301 ) $ 30,283 $ 33,743 Affiliate relationships have an estimated useful life of 24 years. Amortization expense for intangible assets was $3,460 for the years ended June 30, 2020 , 2019 , and 2018 . The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2021 through 2025 to be as follows: Fiscal year ending June 30, 2021 $ 3,460 Fiscal year ending June 30, 2022 3,460 Fiscal year ending June 30, 2023 3,460 Fiscal year ending June 30, 2024 3,460 Fiscal year ending June 30, 2025 3,460 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of June 30, 2020 and 2019 , property and equipment consisted of the following assets: June 30, Estimated 2020 2019 Useful Lives Equipment $ 28,902 $ 35,642 2 to 10 years Furniture and fixtures 1,726 1,726 5 to 8 years Leasehold improvements 18,585 18,505 Shorter of term of lease or life of improvement Construction in progress 277 1,058 49,490 56,931 Less: accumulated depreciation and amortization (40,732 ) (47,629 ) $ 8,758 $ 9,302 Depreciation and amortization expense on property and equipment was $3,703 , $3,938 , and $5,878 for the years ended June 30, 2020 , 2019 , and 2018 , respectively. |
Operating Leases Leases (Notes)
Operating Leases Leases (Notes) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases The Company has various operating leases for office and studio space, as well as equipment, expiring at various dates through fiscal year 2025. The Company currently has no finance leases. Some leases include options to extend the lease term. The exercise of lease renewal options is generally at the Company’s discretion. The depreciable life of leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. The leases generally provide for fixed annual rentals plus certain other costs. Certain leases include variable payments based on the Company’s use of the respective assets. The Company’s lease agreements do not include any material residual value guarantees or material restrictive covenants. Since the Company’s leases do not provide an implicit interest rate, the Company used its incremental borrowing rate as of Adoption Date to determine the present value of future lease payments for all operating leases that commenced prior to that date. Operating lease cost consists of the following: Years Ended June 30, 2020 2019 2018 Operating lease cost $ 5,556 $ 5,505 $ 5,474 Variable lease cost 1,331 — — Total operating lease cost $ 6,887 $ 5,505 $ 5,474 The following table summarizes the weighted-average remaining lease term and discount rate for operating leases: June 30, Weighted-average discount rate for operating leases 3.33 % Weighted-average remaining operating lease term in years 3.61 As of June 30, 2020 , the maturities of the Company’s operating lease liabilities are as follows: Fiscal year ending June 30, 2021 $ 6,012 Fiscal year ending June 30, 2022 5,310 Fiscal year ending June 30, 2023 4,966 Fiscal year ending June 30, 2024 4,135 Fiscal year ending June 30, 2025 17 Total undiscounted operating lease payments 20,440 Less: imputed interest 1,168 Total operating lease liabilities 19,272 Less: current portion of operating lease liabilities 5,492 Non-current operating lease liabilities $ 13,780 Supplemental cash flow information related to operating leases: June 30, Cash paid for amounts included in the measurement of operating lease liabilities $ 5,940 Cash paid for variable lease payments not included in measurement of operating lease liabilities 1,331 Total $ 7,271 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligations and Off Balance Sheet Arrangements | Commitments and Contingencies As of June 30, 2020 , future cash payments required under contracts entered into by the Company in the normal course of business are as follows: Fiscal year ending June 30, 2021 $ 268,532 Fiscal year ending June 30, 2022 255,153 Fiscal year ending June 30, 2023 262,429 Fiscal year ending June 30, 2024 249,331 Fiscal year ending June 30, 2025 246,013 Thereafter 2,597,887 $ 3,879,345 Contractual obligations above consist primarily of the Company’s obligations under media rights agreements. In addition, see Note 7 for the principal repayments required under the Company’s Term Loan Facility. |
Legal Matters
Legal Matters | 12 Months Ended |
Jun. 30, 2020 | |
Legal Matters [Abstract] | |
Legal Matters | Legal Matters The Company is a defendant in various lawsuits. Although the outcome of these matters cannot be predicted with certainty, management does not believe that resolution of these lawsuits will have a material adverse effect on the Company. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use when pricing the asset or liability. Unobservable inputs are inputs for which market data is not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability. The fair value hierarchy consists of the following three levels: • Level I — Quoted prices for identical instruments in active markets. • Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level III — Instruments whose significant value drivers are unobservable. The following table presents for each of these hierarchy levels, the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents: Level I Level II Level III Total June 30, 2020 Assets: Money market accounts $ 129,609 $ — $ — $ 129,609 Time deposits 65,713 — — 65,713 Total assets measured at fair value $ 195,322 $ — $ — $ 195,322 June 30, 2019 Assets: Money market accounts $ 17,619 $ — $ — $ 17,619 Time deposits 201,524 — — 201,524 Total assets measured at fair value $ 219,143 $ — $ — $ 219,143 Money market accounts and time deposits are classified within Level I of the fair value hierarchy as they are valued using observable inputs that reflect quoted prices for identical assets in active markets. The carrying amount of the Company’s money market accounts and time deposits approximates fair value due to their short-term maturities. Other Financial Instruments The fair value of the Company’s long-term debt (see Note 7 ) was approximately $1,021,080 as of June 30, 2020 . The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted prices of such securities for which fair value can be derived from inputs that are readily observable, including activity in and the state of the capital markets. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan Company Sponsored Plans The Company sponsors (i) a non-contributory, qualified defined benefit pension plan covering certain of its union employees (the “Union Plan”), (ii) an unfunded non-contributory, non-qualified frozen excess cash balance plan covering certain employees who participated in an underlying qualified plan (the “Excess Cash Balance Plan”), and (iii) an unfunded non-contributory, non-qualified frozen defined benefit pension plan for the benefit of certain employees who participated in an underlying qualified plan (the “Excess Plan,” and collectively with the Union Plan and the Excess Cash Balance Plan, the “Pension Plans”). As of December 31, 2015, the Excess Cash Balance Plan was amended to freeze participation and future benefit accruals. Therefore, after December 31, 2015, no employee of the Company who was not already a participant may become a participant in the plan and no further annual pay credits will be made for any future year. Existing account balances under the plan will continue to be credited with monthly interest in accordance with the terms of the plan. As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under this plan. Benefits payable to retirees under the Union Plan are based upon years of service and participants’ compensation. The Company also sponsors a contributory welfare plan which provides certain postretirement healthcare benefits to certain employees hired prior to January 1, 2001 (the “Postretirement Plan”). As of the Distribution Date, the Company and MSGS entered into an employee matters agreement, which determined each company’s obligations after the Distribution with regard to historic liabilities under the Company’s former pension and postretirement plans. The Company has retained liabilities related to (i) its current and former employees who are active participants in the Excess Plan and/or the Excess Cash Balance Plan, (ii) former MSGS employees as of the Distribution Date who were active participants in the Excess Plan and/or the Excess Cash Balance Plan, (iii) its current employees who are eligible for participation in the Postretirement Plan, (iv) its former employees who are retired participants in the Postretirement Plan, and (v) the Union Plan. The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2020 and 2019 based upon actuarial valuations as of those measurement dates. Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of period $ 45,154 $ 41,379 $ 2,360 $ 4,169 Service cost 484 445 40 42 Interest cost 1,413 1,607 60 81 Actuarial loss (gain) 4,310 3,180 (400 ) (107 ) Net benefits paid (1,620 ) (1,457 ) (18 ) 4 Other — — — (1,829 ) Benefit obligation at end of period 49,741 45,154 2,042 2,360 Change in plan assets: Fair value of plan assets at beginning of period 20,510 16,225 — — Actual return on plan assets 3,342 2,061 — — Employer contributions 2,376 3,681 — — Net benefits paid (1,620 ) (1,457 ) — — Fair value of plan assets at end of period 24,608 20,510 — — Funded status at end of period $ (25,133 ) $ (24,644 ) $ (2,042 ) $ (2,360 ) Amounts recognized in the consolidated balance sheets as of June 30, 2020 and 2019 consist of: Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Current liabilities (included in accrued employee related costs) $ (1,204 ) $ (1,061 ) $ (111 ) $ (109 ) Non-current liabilities (included in defined benefit and other postretirement obligations) (23,929 ) (23,583 ) (1,931 ) (2,251 ) $ (25,133 ) $ (24,644 ) $ (2,042 ) $ (2,360 ) Accumulated other comprehensive loss, before tax, as of June 30, 2020 and 2019 consists of the following amounts that have not yet been recognized in net periodic benefit cost: Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Actuarial gain (loss) $ (11,587 ) $ (10,179 ) $ 42 $ (358 ) Prior service credit — — — 3 $ (11,587 ) $ (10,179 ) $ 42 $ (355 ) Components of net periodic benefit cost for the years ended June 30, 2020 , 2019 , and 2018 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Service cost $ 484 $ 445 $ 512 $ 40 $ 42 $ 72 Other components of net periodic benefit cost: Interest cost 1,413 1,607 1,432 60 81 140 Expected return on plan assets (976 ) (574 ) (505 ) — — — Recognized actuarial loss (a) 536 476 596 — 7 60 Amortization of unrecognized prior service credit (a) — — — (3 ) (7 ) (13 ) Other — — — — (1,829 ) — Settlement gain (a) — (5 ) — — — — Net periodic benefit cost $ 1,457 $ 1,949 $ 2,035 $ 97 $ (1,706 ) $ 259 (a) Reflects amounts reclassified from accumulated other comprehensive loss to other components of net periodic benefit cost in the accompanying consolidated statements of operations. Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2020 , 2019 , and 2018 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Actuarial gain (loss) $ (1,944 ) $ (1,694 ) $ 1,482 $ 400 $ 107 $ (319 ) Amounts reclassified from accumulated other comprehensive loss: Recognized actuarial loss 536 476 596 — 7 60 Recognized prior service credit — — — (3 ) (7 ) (13 ) Settlement gain — (5 ) — — — — Total recognized in other comprehensive income (loss) $ (1,408 ) $ (1,223 ) $ 2,078 $ 397 $ 107 $ (272 ) The estimated net loss for the Pension Plans expected to be amortized from accumulated other comprehensive loss and recognized as a component of net periodic benefit cost over the next fiscal year is $506 . Funded Status The accumulated benefit obligation for the Pension Plans aggregated to $49,199 and $44,325 at June 30, 2020 and 2019 , respectively. As of June 30, 2020 , the accumulated benefit obligations include $24,768 for the Company’s unfunded plans, and each of the Company’s Pension Plans had a projected benefit obligation in excess of plan assets. As of June 30, 2019, each of the Pension Plans had an accumulated benefit obligation and a projected benefit obligation in excess of plan assets. Pension Plans and Postretirement Plan Assumptions Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2020 and 2019 are as follows: Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Discount rate 2.69 % 3.53 % 2.14 % 3.23 % Rate of compensation increase 3.00 % 2.00 % n/a n/a Healthcare cost trend rate assumed for next year n/a n/a 6.50 % 6.75 % 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 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2020 , 2019 , and 2018 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Discount rate - service cost 3.68 % 4.25 % 3.92 % 3.42 % 4.24 % 3.90 % Discount rate - interest cost 3.17 % 3.93 % 3.35 % 2.94 % 3.80 % 3.25 % Expected long-term rate of return on plan assets 5.09 % 3.72 % 3.46 % n/a n/a n/a Rate of compensation increase 2.00 % 2.00 % 2.00 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a n/a 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2027 2027 2027 Accumulated and projected benefit obligations reflect the present value of future cash payments for benefits. The Company used the Willis Towers Watson U.S. Rate Link: 40-90 Discount Rate Model (which is developed by examining the yields on selected highly rated corporate bonds) to discount these benefit payments on a plan by plan basis, to select the rates at which the Company believes each plan’s benefits could be effectively settled. The Company’s expected long-term rate of return on plan assets is based on a periodic review and modeling of the plan’s asset allocation structures over a long-term horizon. Expectations of returns for each asset class used in the review and modeling are based on comprehensive reviews of historical data, forward-looking economic outlook, and economic/financial market theory. The expected long-term rate of return was selected from within the reasonable range of rates determined by the expected total returns for the asset classes covered by the investment policy, each comprised of projections of (a) the risk-free rate, or expected return on cash, (b) the passive excess return (beta), or expected excess return from an asset class in excess of the risk-free rate, and (c) the active return (alpha), or expected excess return from active managers’ efforts to outperform their respective indices. Assumed healthcare cost trend rates are also a key assumption used for the amounts reported for the Postretirement Plan. A one percentage point change in assumed healthcare cost trend rates would have the following effects: Increase (Decrease) in Total of Service and Interest Cost Components for the Increase (Decrease) in Benefit Obligation at Years Ended June 30, June 30, 2020 2019 2018 2020 2019 One percentage point increase $ 10 $ 12 $ 28 $ 165 $ 205 One percentage point decrease (9 ) (11 ) (24 ) (150 ) (185 ) Plan Assets and Investment Policy The weighted-average asset allocation of the Union Plan’s assets at June 30, 2020 and 2019 was as follows: June 30, Asset Classes: 2020 2019 Fixed income securities 99 % 83 % Cash equivalents 1 % 17 % 100 % 100 % Investment allocation decisions are formally made by the Company’s Investment and Benefits Committee, which takes into account investment advice provided by the Company’s external investment consultant. The investment consultant takes into account expected long-term risk, return, correlation, and other prudent investment assumptions when recommending asset classes and investment managers to the Company’s Investment and Benefits Committee. The investment consultant also takes into account the Union Plan’s liabilities when making investment allocation recommendations. Those decisions are driven by asset/liability studies conducted by the external investment consultant who combines actuarial considerations and strategic investment advice. The Company’s current target allocation for the Union Plan’s assets is to invest substantially all of the Union Plan's funds in fixed income securities. The major categories of the Union Plan’s assets are long duration fixed income and investment grade fixed income funds, which are marked-to-market on a daily basis. Due to the fact that the Union Plan’s assets are significantly made up of long duration fixed income funds, they are subjected to interest-rate risk; specifically, a rising interest rate environment. However, an increase in interest rates would cause a corresponding decrease to the overall liability of the plans, thus creating a hedge against rising interest rates. Additional risks involving the asset/liability framework include earning insufficient returns to cover future liabilities and imperfect hedging of the liability. In addition, a portion of the fixed income fund portfolio is invested in non-government securities which are subject to credit risk of the bond issuer defaulting on interest and/or principal payments. Plan Assets at Estimated Fair Value The fair value of the Union Plan’s assets at June 30, 2020 and 2019 by asset class are as follows: Fair Value of Plan Assets at June 30, 2020 Level I Level II Level III Total Fixed income securities: Long duration fixed income funds — 17,650 — 17,650 Investment grade fixed income funds — 6,774 — 6,774 Money market accounts 184 — — 184 Total investments measured at fair value $ 184 $ 24,424 $ — $ 24,608 Fair Value of Plan Assets at June 30, 2019 Fixed income securities: U.S. Treasury Securities $ 4,720 $ — $ — $ 4,720 U.S. corporate bonds — 10,645 — 10,645 Foreign issued corporate bonds — 1,600 — 1,600 Municipal bonds — 35 — 35 Money market accounts 3,510 — — 3,510 Total investments measured at fair value $ 8,230 $ 12,280 $ — $ 20,510 Contributions for Qualified Defined Benefit Pension Plan The Company expects to contribute approximately $280 to the Union Plan in fiscal year 2021 . Estimated Future Benefit Payments The following table presents estimated future fiscal year benefit payments for the Pension Plans and Postretirement Plan: Pension Plans Postretirement Plan Fiscal year ending June 30, 2021 $ 2,200 $ 110 Fiscal year ending June 30, 2022 2,310 130 Fiscal year ending June 30, 2023 2,460 150 Fiscal year ending June 30, 2024 2,570 160 Fiscal year ending June 30, 2025 2,680 170 Fiscal years ending June 30, 2026 – 2030 14,420 850 Savings Plans The Company sponsors the MSGN Holdings, L.P. Excess Savings Plan and participates in The Madison Square Garden 401(k) Savings Plan, formerly the MSG Holdings, L.P. 401(k) Savings Plan a multiple employer plan (together, the “Savings Plans”). The Madison Square Garden 401(k) Savings Plan was sponsored by MSGS until the Entertainment Distribution (as defined herein), and thereafter by MSGE. Expenses related to the Savings Plans included the accompanying consolidated statements of operations for the years ended June 30, 2020, 2019, and 2018 were $1,028 , $ 1,057 , and $ 957 , respectively. Multiemployer Plans The Company contributes to a number of multiemployer defined benefit pension plans, multiemployer defined contribution pension plans, and multiemployer health and welfare plans that provide benefits to retired union-represented employees under the terms of collective bargaining agreements (“CBAs”). The multiemployer defined benefit pension plans to which the Company contributes generally provide for retirement and death benefits for eligible union-represented employees based on specific eligibility/participant requirements, vesting periods, and benefit formulas. The risks to the Company of participating in these multiemployer defined benefit pension plans are different from single-employer defined benefit pension plans in the following aspects: • Assets contributed to a multiemployer defined benefit pension plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to a multiemployer defined benefit pension plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If the Company chooses to stop participating in some of these multiemployer defined benefit pension plans, the Company may be required to pay those plans an amount based on the Company’s proportion of the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer defined benefit pension plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. The Company was not listed in any of the multiemployer plans’ Form 5500’s as providing more than 5% of the total contributions. There were no multiemployer defined benefit pension plans, to which the Company contributes, that were in the red zone (which are plans that are generally less than 65% funded) for the most recent Pension Protection Act zone status available as of June 30, 2020. The Company contributed $1,140 , $1,145 , and $1,299 for the years ended June 30, 2020, 2019, and 2018 , respectively, to multiemployer plans, primarily multiemployer defined benefit pension plans. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The Company has two share-based compensation plans (i) the MSG Networks Inc. 2010 Employee Stock Plan, as amended (the “Employee Stock Plan”), which was most recently approved by the Company’s stockholders on December 15, 2016, and (ii) the MSG Networks Inc. 2010 Stock Plan for Non-Employee Directors, as amended (the “Non-Employee Director Plan”), which was most recently approved by the Company’s stockholders on December 6, 2019. Under the Employee Stock Plan, the Company is authorized to grant incentive stock options and non-qualified stock options (“NQSOs”), restricted shares, RSUs and other share-based awards. The Employee Stock Plan provides that the Company may grant awards for up to 12,500 (inclusive of awards granted prior to the December 15, 2016 amendment thereof) shares of the Company’s Class A Common Stock (subject to certain adjustments). NQSOs under the Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). RSUs granted under the Employee Stock Plan will settle in shares of the Company’s Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee of the Board of Directors (“Compensation Committee”), in cash. The terms and conditions of awards granted under the Employee Stock Plan, including vesting and exercisability, are determined by the Compensation Committee and may include performance targets. Under the Non-Employee Director Plan, the Company is authorized to grant NQSOs, RSUs and other share-based awards. The Non-Employee Director Plan provides that the Company may grant awards for up to 400 (inclusive of awards granted prior to the December 6, 2019 amendment thereof) shares of the Company’s Class A Common Stock (subject to certain adjustments). NQSOs under the Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). The terms and conditions of awards granted under the Non-Employee Director Plan, including vesting and exercisability, are determined by the Compensation Committee. Unless otherwise provided in an applicable award agreement, NQSOs granted under the Non-Employee Director Plan will be fully vested and exercisable, and RSUs granted under the Non-Employee Director Plan will be fully vested, upon the date of grant and will settle in shares of the Company’s Class A Common Stock (either from treasury or with newly issued shares), or, at the option of the Compensation Committee, in cash, on the first business day after ninety days from the date the director’s service on the Board of Directors ceases or, if earlier, upon the director’s death. Share-based Compensation Expense Share-based compensation expense, presented within selling, general and administrative expenses and direct operating expenses, was $19,235 , $18,087 and $13,979 for the years ended June 30, 2020 , 2019 , and 2018 , respectively. As of June 30, 2020 , there was $17,664 of unrecognized compensation cost related to unvested RSUs and NQSOs, held by Company employees. The cost is expected to be recognized over a weighted-average period of 2 years for unvested RSUs and NQSOs. There were no costs related to share-based compensation that were capitalized. Tax benefits realized from tax deductions associated with share-based compensation expense for the years ended June 30, 2020 , 2019 and 2018 totaled $2,484 , $3,406 , and $2,814 , respectively. NQSOs Award Activity The following table summarizes activity relating to holders of the Company’s NQSOs for the year ended June 30, 2020 : Number of Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Nonperformance Based Vesting Performance Based Vesting Balance as of June 30, 2019 1,277 1,277 $ 20.87 5.52 $ 3,132 Granted (a) 556 557 14.33 Balance as of June 30, 2020 1,833 1,834 $ 18.88 5.17 — Exercisable as of June 30, 2020 924 536 $ 19.07 4.04 $ — (a) Includes incremental shares of performance based NQSOs that were historically reported at a target payout of 100% . Upon meeting the performance objective, the number of performance based NQSOs vested at a payout of 100.3% of target. Nonperformance based vesting NQSOs granted under the Employee Stock Plan during the year ended June 30, 2020 are subject to three-year ratable vesting. Performance based vesting NQSOs granted under the Employee Stock Plan during the year ended June 30, 2020 are subject to three-year cliff vesting and the achievement of certain Company performance criteria. These NQSOs have an expiration period of 7.5 years. The Company calculated the fair value of these NQSOs on the date of grant using the Black-Scholes option pricing model, which resulted in a grant date fair value of $ 4.32 per NQSO. The following were the key assumptions used to calculate the fair value of this award: Risk-free interest rate 1.4 % Expected term 5.25 years Expected volatility 30.68 % The Company’s computation of expected term was calculated using the simplified method (the average of the vesting period and option term) as prescribed in ASC Topic 718-10-S99. The Company’s computation of expected volatility was based on historical volatility of its common stock. The aggregate intrinsic value is calculated for in-the-money NQSOs as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of the Company’s Class A Common Stock at June 30, 2020 and 2019 , as applicable. Restricted Share Units Award Activity The following table summarizes activity relating to holders of the Company’s RSUs for the year ended June 30, 2020 : Number of Weighted-Average Fair Value Per Share At Date of Grant Nonperformance Based Vesting RSUs Performance Based Vesting Unvested award balance as of June 30, 2019 541 836 $ 23.08 Granted (a) 397 316 14.46 Vested (a) (341 ) (279 ) 20.46 Forfeited (2 ) (3 ) 19.14 Unvested award balance as of June 30, 2020 595 870 20.01 (a) Includes incremental shares of performance based RSUs that were historically reported at a target payout of 100% . Upon meeting the performance objective, the number of performance based RSUs vested at a payout of 100.3% of target. Nonperformance based vesting RSUs granted under the Employee Stock Plan and the Non-Employee Director Plan during the year ended June 30, 2020 are subject to three -year ratable vesting and vest upon date of grant, respectively. Performance based vesting RSUs granted under the Employee Stock Plan during the year ended June 30, 2020 are subject to three -year cliff vesting. The fair value of RSUs that vested during the year ended June 30, 2020 was $9,810 . Upon delivery, RSUs granted under the Employee Stock Plan were net share-settled to cover the required statutory tax withholding obligations and the remaining number of shares were issued from the Company’s treasury shares. To fulfill the employees’ statutory tax withholding obligations for the applicable income and other employment taxes, 269 of these RSUs, with an aggregate value of $4,290 were retained by the Company and the taxes paid during the year ended June 30, 2020 are reflected as a financing activity in the accompanying consolidated statement of cash flows. For the years ended June 30, 2019 and 2018 , the fair value of the Company’s RSUs that vested was $12,779 and $ 9,329 , respectively, determined as of the date of the RSU vesting. The weighted-average fair value per share at date of grant of RSUs granted during the years ended June 30, 2019 and 2018 , was $25.61 and $21.32 |
Stock Repurchase Program Equity
Stock Repurchase Program Equity | 12 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Treasury Stock [Text Block] | Stock Repurchase Program On December 7, 2017, the Company’s Board of Directors authorized the repurchase of up to $150,000 of the Company’s Class A Common Stock. On August 29, 2019, the Board authorized a $300,000 increase to the stock repurchase authorization, which had $136,165 of availability remaining, bringing the total available repurchase authorization for Class A Common Stock to $436,165 as of that date. Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. During the year ended June 30, 2020 , the Company repurchased, including shares repurchased under a modified Dutch auction tender offer, 18,436 shares of its Class A Common Stock for an aggregate purchase price of $290,301 . As of June 30, 2020 , the Company had $145,864 of availability remaining under its stock repurchase authorization. The purchase price of these share repurchases, and the related fees, have been classified as Treasury stock in the accompanying consolidated balance sheet as of June 30, 2020 . There were no shares repurchased by the Company during the year ended June 30, 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of June 30, 2020 , members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group (collectively, the “Dolan Family Group”), collectively beneficially own all of the Company’s outstanding Class B Common Stock and own approximately 7.2% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of the date hereof). Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 77.0% of the aggregate voting power of the Company’s outstanding common stock. On April 17, 2020, MSGS distributed to its stockholders all of the outstanding common stock of MSGE (the “Entertainment Distribution”). The Dolan Family Group also controls MSGS and AMC Networks Inc. (“AMC Networks”), and as a result of the Entertainment Distribution, MSGE. Prior to September 2018, the Company had an arrangement with the Dolan Family Office, LLC (“DFO”), MSG, and AMC Networks providing for the sharing of certain expenses associated with executive office space which was available to Charles F. Dolan (a director of the Company, MSGE and MSGS, and the Executive Chairman and a director of AMC Networks), James L. Dolan (the Executive Chairman and a director of the Company, the Executive Chairman, Chief Executive Officer and a director of MSGE, the Executive Chairman and a director of MSGS, and a director of AMC Networks), and the DFO, which is controlled by Charles F. Dolan. Effective September 2018, the Company is no longer party to this arrangement. The Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for (i) the Company’s Executive Chairman with MSGS and (ii) the Company’s Vice Chairman with MSGS and AMC Networks. Following the Entertainment Distribution, the Company now also shares such costs with MSGE. The Company and MSGE are also party to aircraft time sharing agreements, pursuant to which MSGE has agreed from time to time to make certain aircraft available to the Company for use on a “time sharing” basis. Prior to the Entertainment Distribution, the Company was party to such time sharing agreements with MSGS. Additionally, the Company, MSGS, AMC Networks and, following the Entertainment Distribution, MSGE have agreed on an allocation of the costs of certain other aircraft, including helicopter, use by shared executives. The Company has various agreements with MSGS, including media rights agreements covering Knicks and Rangers games, and a tax disaffiliation agreement. As a result of the Entertainment Distribution, certain of the agreements which were previously between the Company and MSGS are, as of April 17, 2020, between the Company and MSGE, including an advertising sales representation agreement, a trademark license agreement, and certain other arrangements, including a services agreement (the “Services Agreement”) pursuant to which the Company outsources certain business functions. The services currently outsourced include information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting and internal audit , as well as certain executive support services described above. The Company provides certain services to MSGE pursuant to the Services Agreement. In connection with the Entertainment Distribution, the Company entered into a services agreement with MSGS, pursuant to which MSGS provides the Company certain legal services previously provided under the Services Agreement. The Services Agreement expired on June 30, 2020. In connection thereof, the Company entered into an interim agreement with MSGE, pursuant to which each party provides the other with the services on the same terms. The Company expects to enter into a new services agreement which will be retroactive to July 1, 2020. The Company has also entered into various agreements with AMC Networks with respect to a number of ongoing commercial relationships. Related Party Transactions Rights Fees The Company’s media rights agreements with MSGS, effective as of July 1, 2015, provide the Company with the exclusive media rights to Knicks and Rangers games in their local markets. Rights fees included in the accompanying consolidated statements of operations for the years ended June 30, 2020, 2019, and 2018 were $140,058 , $147,483 , and $141,726 , respectively. Origination, Master Control and Technical Services AMC Networks provides certain origination, master control and technical services to the Company. Amounts incurred by the Company for the years ended June 30, 2020, 2019, and 2018 were $4,690 , $4,632 , and $6,138 , respectively. Commission The Company’s advertising sales representation agreement, which has a term through June 30, 2022, provides for MSGE (MSGS prior to the Entertainment Distribution) to act as the Company’s advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission. The amounts incurred by the Company for the years ended June 30, 2020, 2019, and 2018 were $12,591 , $14,945 , and $13,011 , respectively. General and Administrative Expenses Amounts incurred by the Company for expenses associated with the Services Agreement and the services agreement with MSGS, net, amounted to $10,367 , $10,313 , and $8,863 for the years ended June 30, 2020, 2019, and 2018, respectively. Other Operating Expenses The Company and its related parties enter into other transactions with each other in the ordinary course of business. Net amounts incurred by the Company for other related party transactions amounted to $237 , $488 , and $1,082 for the years ended June 30, 2020, 2019, and 2018 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense (benefit) is comprised of the following components: Years Ended June 30, 2020 2019 2018 Current expense: Federal $ 49,971 $ 48,769 $ 64,021 State and other 27,451 31,791 30,651 77,422 80,560 94,672 Deferred expense (benefit): Federal (532 ) 134 (109,145 ) State and other (3,027 ) 2,021 (1,851 ) (3,559 ) 2,155 (110,996 ) Tax benefit relating to uncertain tax positions — — (14 ) Income tax expense (benefit) $ 73,863 $ 82,715 $ (16,338 ) The income tax expense (benefit) differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items: Years Ended June 30, 2020 2019 2018 Federal tax expense at statutory federal rate (a) $ 54,408 $ 56,468 $ 76,470 State and local income taxes, net of federal benefit 21,312 23,910 21,372 Change in the estimated applicable tax rate used to determine deferred taxes (1,899 ) 1,398 (497 ) Impact of Tax Cuts and Jobs Act on deferred taxes — — (106,446 ) Domestic production activities tax deduction — — (3,585 ) Tax benefit relating to uncertain tax positions — — (14 ) Tax return to GAAP provision adjustments (420 ) (1,770 ) (3,411 ) Impact of nondeductible officers’ compensation (b) 2,046 2,989 — Excess tax benefit related to share-based payment awards (1,576 ) (515 ) (312 ) Nondeductible expenses and other (8 ) 235 85 Income tax expense (benefit) $ 73,863 $ 82,715 $ (16,338 ) (a) On December 22, 2017, the enactment of the Tax Cuts and Jobs Act (“TCJA”) significantly changed the U.S. tax laws and included a reduction in the corporate federal tax rate from 35% to 21% effective January 1, 2018. For the year ended June 30, 2018, the Company used a blended statutory federal rate of 28% (based upon the number of days for the fiscal year ended 2018 that it will be taxed at the former rate of 35% and the number of days it will be taxed at the new rate of 21%). (b) The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1 million annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1 million is nondeductible. The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities included in the accompanying consolidated balance sheets as of June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Deferred tax asset (liability) Investment in MSGN L.P. $ (247,786 ) $ (249,143 ) Compensation and benefit plans 8,244 5,747 Net noncurrent deferred tax liability $ (239,542 ) $ (243,396 ) Deferred tax assets have resulted from the Company’s future deductible temporary differences. At this time, based on current facts and circumstances, management believes that it is more likely than not that the Company will realize the benefit for its gross deferred tax assets. During the year ended June 30, 2020 , the Company did not record any uncertain tax positions (including interest and penalties). The Company made cash income tax payments (net) of $75,274 , $89,854 and $84,524 for years ended June 30, 2020 , 2019 , and 2018 , respectively. The Company was notified during the fourth quarter of fiscal year 2017 that the State of New York was commencing an examination of the Company’s New York State income tax returns as filed for the tax years ended December 31, 2013 and 2014. In January 2020, the Company closed the examination with no material changes to the tax returns as filed. The Company was notified during the first quarter of fiscal year 2019 that the City of New York was commencing an examination of the Company’s New York City general corporate income tax returns as filed for the tax years ended December 31, 2015 and 2016. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed. The Company was notified during the fourth quarter of fiscal year 2019 that the City of New York was commencing an examination of the Company’s Unincorporated Business Tax Returns as filed for the tax years ended December 31, 2016 and 2017, and June 30, 2018. In October 2019, the Company closed the examination with no material changes to the tax returns as filed. The Company was notified during the fourth quarter of fiscal year 2019 that the State of New Jersey initiated an audit of the Company’s income tax returns for the tax years ended December 31, 2015 through December 31, 2017. The Company does not expect the examination, when finalized, to result in material changes to the tax returns as filed. The federal and state statute of limitations are currently open on the Company’s tax returns for 2016 and 2015, respectively, and forward. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration Of Risk | Concentrations of Risk Financial instruments that may potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are invested in money market funds and bank time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company’s emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments. Accounts receivable, net on the accompanying consolidated balance sheets as of June 30, 2020 and 2019 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance: June 30, 2020 2019 Customer A 26 % 25 % Customer B 25 % 25 % Customer C 22 % 23 % Customer D 11 % 14 % Affiliation fee revenue constituted approximately 90% of the Company’s consolidated revenues for each of the years ended June 30, 2020 , 2019 , and 2018 . Revenues in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 , and 2018 include amounts from the following individual customers, which accounted for the noted percentages of the total: Years Ended June 30, 2020 2019 2018 Customer 1 26 % 24 % 24 % Customer 2 24 % 23 % 23 % Customer 3 21 % 21 % 22 % Customer 4 9 % 11 % 11 % The accompanying consolidated balance sheets as of June 30, 2020 and 2019 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the New Jersey Devils: June 30, Reported in 2020 2019 Prepaid expenses $ 3,000 $ 1,000 Other current assets 4,000 4,000 Other assets 34,000 36,000 $ 41,000 $ 41,000 As of June 30, 2020 , approximately 500 full-time and part-time employees, who represent approximately 72% of the Company’s workforce, are subject to CBAs and approximately 54% of the Company’s workforce that is subject to a CBA is covered by a CBA that has expired. In addition, as of June 30, 2020 , approximately 41% |
Interim Financial Information
Interim Financial Information | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Interim Financial Information (Unaudited) The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2020 and 2019 : Three Months Ended Year Ended June 30, 2020 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 Revenues $ 160,981 $ 187,730 $ 184,972 $ 152,114 $ 685,797 Operating expenses 92,707 117,767 111,309 69,046 390,829 Operating income $ 68,274 $ 69,963 $ 73,663 $ 83,068 $ 294,968 Net income $ 43,067 $ 39,964 $ 46,270 $ 55,920 $ 185,221 Earnings per share: Basic $ 0.57 $ 0.66 $ 0.77 $ 0.98 $ 2.93 Diluted $ 0.57 $ 0.66 $ 0.77 $ 0.97 $ 2.92 Three Months Ended Year Ended June 30, 2019 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 Revenues $ 164,464 $ 192,914 $ 195,105 $ 168,362 $ 720,845 Operating expenses 85,603 114,564 112,624 98,155 410,946 Operating income $ 78,861 $ 78,350 $ 82,481 $ 70,207 $ 309,899 Net income $ 46,930 $ 43,838 $ 54,235 $ 41,179 $ 186,182 Earnings per share: Basic $ 0.63 $ 0.58 $ 0.72 $ 0.55 $ 2.48 Diluted $ 0.62 $ 0.58 $ 0.72 $ 0.54 $ 2.46 |
Schedule II
Schedule II | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period (Additions) Deductions Charged to Costs and Expenses (Additions) Deductions Charged to Other Accounts Deductions (a) Balance at End of Period Year Ended June 30, 2020 Allowance for doubtful accounts $ (1,169 ) $ (278 ) $ — $ 29 $ (1,418 ) Year Ended June 30, 2019 Allowance for doubtful accounts $ (509 ) $ (930 ) $ — $ 270 $ (1,169 ) Year Ended June 30, 2018 Allowance for doubtful accounts $ (594 ) $ (17 ) $ — $ 102 $ (509 ) _____________________________ (a) Primarily reflects write-offs of uncollectible amounts. |
Debt Debt
Debt Debt | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Former Senior Secured Credit Facilities On September 28, 2015, MSGN L.P., MSGN Eden, LLC, an indirect subsidiary of the Company and the general partner of MSGN L.P., Regional MSGN Holdings LLC, a direct subsidiary of the Company and the limited partner of MSGN L.P. (collectively with MSGN Eden, LLC, the “Holdings Entities”), and certain subsidiaries of MSGN L.P. entered into a credit agreement (the “Former Credit Agreement”) with a syndicate of lenders. The Former Credit Agreement provided MSGN L.P. with senior secured credit facilities (the “Former Senior Secured Credit Facilities”) that consisted of: (a) an initial $1,550,000 term loan facility (the “Former Term Loan Facility”) and (b) a $250,000 revolving credit facility (the “Former Revolving Credit Facility”). Amended and Restated Senior Secured Credit Facilities On October 11, 2019, MSGN L.P., the Holdings Entities and certain subsidiaries of MSGN L.P. amended and restated the Former Credit Agreement in its entirety (the “Credit Agreement”). The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (i) an initial $1,100,000 term loan facility (the “Term Loan Facility”) and (ii) a $250,000 revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. Proceeds from the Term Loan Facility were used by MSGN L.P. to repay outstanding indebtedness under the Former Credit Agreement. Up to $35,000 of the Revolving Credit Facility is available for the issuance of letters of credit. Subject to the satisfaction of certain conditions and limitations, the Credit Agreement allows for the addition of incremental term and/or revolving loan commitments and incremental term and/or revolving loans. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of MSGN L.P. may be either (i) a base rate plus an additional rate ranging from 0.25% to 1.25% per annum (determined based on a total net leverage ratio) (the “Base Rate”), or (ii) a Eurodollar rate plus an additional rate ranging from 1.25% to 2.25% per annum (determined based on a total net leverage ratio) (the “Eurodollar Rate”). Upon a payment default in respect of principal, interest or other amounts due and payable under the Credit Agreement or related loan documents, default interest will accrue on all overdue amounts at an additional rate of 2.00% per annum. The Credit Agreement requires that MSGN L.P. pay a commitment fee ranging from 0.225% to 0.30% (determined based on a total net leverage ratio) in respect of the average daily unused commitments under the Revolving Credit Facility. MSGN L.P. will also be required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit. The Credit Agreement generally requires the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis to comply with a maximum total leverage ratio of 5.50:1.00, subject, at the option of MSGN L.P. to an upward adjustment to 6.00:1.00 during the continuance of certain events. In addition, the Credit Agreement requires a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. As of June 30, 2020 , the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis were in compliance with the applicable financial covenants. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of June 30, 2020 , there were no letters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of $250,000 . The Term Loan Facility amortizes quarterly in accordance with its terms beginning March 31, 2020 through September 30, 2024 with a final maturity date on October 11, 2024. As of June 30, 2020 , the principal repayments required under the Term Loan Facility are as follows: Fiscal year ending June 30, 2021 $ 38,500 Fiscal year ending June 30, 2022 49,500 Fiscal year ending June 30, 2023 66,000 Fiscal year ending June 30, 2024 82,500 Fiscal year ending June 30, 2025 849,750 $ 1,086,250 All obligations under the Credit Agreement are guaranteed by the Holdings Entities and MSGN L.P.’s existing and future direct and indirect domestic subsidiaries that are not designated as excluded subsidiaries or unrestricted subsidiaries (the “Subsidiary Guarantors,” and together with the Holdings Entities, the “Guarantors”). All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain assets of MSGN L.P. and each Guarantor (collectively, “Collateral”), including, but not limited to, a pledge of the equity interests in MSGN L.P. held directly by the Holdings Entities and the equity interests in each Subsidiary Guarantor held directly or indirectly by MSGN L.P. Subject to customary notice and minimum amount conditions, MSGN L.P. may voluntarily prepay outstanding loans under the Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurodollar loans). MSGN L.P. is required to make mandatory prepayments in certain circumstances, including without limitation from the net cash proceeds of certain sales of assets (including Collateral) or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. In addition to the financial covenants discussed above, the Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative covenants, and events of default. The Credit Agreement contains certain restrictions on the ability of MSGN L.P. and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Credit Agreement, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) changing their lines of business; (vi) engaging in certain transactions with affiliates; (vii) amending specified material agreements; (viii) merging or consolidating; (ix) making certain dispositions; and (x) entering into agreements that restrict the granting of liens. The Holdings Entities are also subject to customary passive holding company covenants. The Company is amortizing deferred financing costs of the Term Loan Facility using the effective interest method over its five-year term. The following table summarizes the presentation of the Term Loan Facility and the Former Term Loan Facility, and the related deferred financing costs in the accompanying consolidated balance sheets as of June 30, 2020 and 2019 : Term Loan Facilities Deferred Financing Costs Net June 30, 2020 Current portion of long-term debt $ 38,500 $ (1,271 ) $ 37,229 Long-term debt, net of current portion 1,047,750 (3,970 ) 1,043,780 Total $ 1,086,250 $ (5,241 ) $ 1,081,009 June 30, 2019 Current portion of long-term debt $ 114,375 $ (2,586 ) $ 111,789 Long-term debt, net of current portion 906,875 (647 ) 906,228 Total $ 1,021,250 $ (3,233 ) $ 1,018,017 In addition, the Company has recorded deferred financing costs related to the Revolving Credit Facility and the Former Revolving Credit Facility in the accompanying consolidated balance sheets as summarized in the following table: June 30, 2020 2019 Other current assets $ 343 $ 417 Other assets 1,123 104 Total amortization of deferred financing costs was $1,994 for the year ended June 30, 2020 and $3,003 for the years ended June 30, 2019 and 2018 , respectively, and is included in interest expense in the accompanying consolidated statements of operations. The Company made interest payments under the Credit Agreement and Former Credit Agreement of $34,537 , $43,518 , and $40,106 during the years ended June 30, 2020 , 2019 , and 2018 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amount of revenues and expenses. Such estimates include the valuation of accounts receivable, investments, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, rights fees expense, income tax benefit (expense), performance and share-based compensation, depreciation and amortization, litigation matters, and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors. Due to the novel coronavirus (“COVID-19”) pandemic, in March 2020, the 2019-20 NBA and NHL seasons were suspended. On May 26, 2020, the NHL announced that the 2019-20 regular season was complete and that certain teams would return to play post-season games. The Rangers and the Islanders, but not the Devils or the Sabres, participated in such post-season games. On June 4, 2020, the NBA announced that certain teams would return to play for the purpose of determining post-season participation and seeding, but not the Knicks. The NHL and NBA plans for resumption of play would have each league ending its respective post-season in October 2020, which would delay the start of each league's 2020-21 season. Our estimates have been prepared based on these facts, and we will continue to monitor updates made by the NBA and NHL with regards to league play and the impact on the Company’s use of estimates. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control, including government and league actions taken to contain or mitigate the COVID-19 pandemic, could be material and would be reflected in the Company’s financial statements in future periods. |
Revenue Recognition | The Company generates revenues principally from affiliation fees charged to cable, satellite, telephone, and other platforms (“Distributors”) for the right to carry its networks, as well as from the sale of advertising. The Company’s advertising revenue is largely derived from the sale of inventory in its live professional sports programming, as such, a disproportionate share of this revenue has historically been earned in the Company’s second and third fiscal quarters. The Company’s revenue recognition policies that describe the nature, amount, timing and uncertainty associated with each major source of revenue from contracts with customers are described in Note 3 . |
Direct Operating Expenses | Direct Operating Expenses Direct operating expenses primarily represent media rights fees, and other direct programming and production costs, such as the salaries of on-air personalities, producers, directors, technicians, writers and other creative staff, as well as expenses associated with location costs, remote facilities and maintaining studios, origination, and transmission services and facilities. The professional team media rights acquired under media rights agreements to telecast various sporting events and other programming for exhibition on MSG Networks are typically expensed on a straight-line basis over the applicable annual contract or license period. |
Advertising Expenses | Advertising Expenses Advertising costs are typically charged to expense when incurred. The Company enters into nonmonetary transactions, primarily with its Distributors, that involve the exchange of advertising and promotional benefits, for the Company’s services. Total advertising costs classified in selling, general and administrative expenses were $20,406 , $18,249 , and $11,229 for the years ended June 30, 2020 , 2019 , and 2018 , respectively. |
Income Taxes | Income Taxes The Company’s provision for income taxes is based on current period income, changes in deferred tax assets and liabilities, and changes in estimates with regard to uncertain tax positions. Deferred tax assets are subject to an ongoing assessment of realizability. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the realization of its deductible temporary differences. If such estimates and related assumptions change in the future, the Company may be required to record valuation allowances against its deferred tax assets, resulting in additional income tax expense in the Company’s consolidated statements of operations. The Company measures its deferred tax liability with regard to MSGN Holdings, L.P. (“MSGN L.P.”), an indirect wholly-owned subsidiary of the Company through which the Company conducts substantially all of its operations, based on the difference between the tax basis and the carrying amount for financial reporting purposes; this is commonly referred to as the outside basis difference. Interest and penalties, if any, associated with uncertain tax positions are included in income tax expense. The Company accounts for investment tax credits, if any, using the “flow-through” method, under which the tax benefit generated from an investment tax credit is recorded in the period the credit is generated. |
Investment in Nonconsolidated Entity | Investment in Nonconsolidated Entity The Company’s investment in a nonconsolidated entity, which is included in other assets in the accompanying consolidated balance sheets, does not have a readily determinable fair value. As such, the Company has elected to account for it at cost, which would be adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for an identical or a similar investment of the same issuer (referred to as the measurement alternative method). Investments accounted for under the measurement alternative method are classified within Level III of the fair value hierarchy. As of June 30, 2020 , the carrying amount of the Company’s equity investment in the nonconsolidated entity was $2,000 , and the Company did not identify any potential adjustments to the cost of its investment through June 30, 2020 . |
Share-based Compensation | Share-based Compensation The Company measures the cost of employee services received in exchange for an award of equity-based instruments based on the grant date fair value of the award. Share-based compensation cost is recognized in earnings over the period during which an employee is required to provide service in exchange for the award, except for restricted stock units (“RSUs”) granted to non-employee directors which, unless otherwise provided under the applicable award agreement, are fully vested, and are expensed at the grant date. The Company has elected to recognize share-based compensation cost for graded vesting awards with only service conditions on a straight-line basis over the requisite service period for the entire award. The Company accounts for forfeitures as they occur. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers the balance of its investment in funds that substantially hold highly liquid securities that mature within three months or less from the date the fund purchases these securities to be cash equivalents. The carrying amount of cash and cash equivalents either approximates fair value due to the short-term maturity of these instruments or is at fair value. Checks outstanding in excess of related book balances are included in accounts payable in the accompanying consolidated balance sheets. The Company presents the change in these book cash overdrafts as cash flows from operating activities. |
Accounts Receivable | Accounts Receivable The Company maintains an allowance for doubtful accounts to reserve for potentially uncollectible accounts receivables. The allowance for doubtful accounts is estimated based on the Company’s analysis of receivables aging, specific identification of certain receivables that are at risk of not being paid, historical collection experience and other factors. The Company’s allowance for doubtful accounts was $1,418 and $1,169 as of June 30, 2020 and 2019 , respectively. |
Long-Lived and Indefinite-Lived Assets | Long-Lived and Indefinite-Lived Assets The Company’s long-lived and indefinite-lived assets consist of goodwill, amortizable intangible assets, and property and equipment. Goodwill has an indefinite useful life and is not amortized. Identifiable intangible assets with finite useful lives are amortized on a straight-line basis over their respective estimated useful lives. Property and equipment is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets or, with respect to leasehold improvements, amortized over the shorter of the lease term or the asset’s estimated useful life. The useful lives of the Company’s long-lived assets are based on estimates of the period over which the Company expects the assets to be of economic benefit to the Company. In estimating the useful lives the Company considers factors such as, but not limited to, risk of obsolescence, anticipated use, plans of the Company, and applicable laws. Impairment of Long-Lived and Indefinite-Lived Assets Goodwill is tested annually for impairment as of August 31 st and at any time upon the occurrence of certain events or substantive changes in circumstances. The Company has the option to perform a qualitative assessment to determine if an impairment is more likely than not to have occurred. If the Company can support the conclusion that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company does not need to perform the quantitative goodwill impairment test for that reporting unit. If the Company cannot support such a conclusion or the Company does not elect to perform the qualitative assessment, then the Company would perform the quantitative goodwill impairment test. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The Company has one reporting unit for evaluating goodwill impairment. The Company reviews other long-lived assets (including intangible assets that are amortized and property and equipment) for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. If the undiscounted cash flows from a group of assets being evaluated is less than the carrying value of that group of assets, the fair value of the asset group is determined and the carrying value of the asset group is written down to fair value. In assessing the recoverability of the Company’s long-lived and indefinite-lived assets, the Company must make estimates and assumptions regarding future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. These estimates are subjective in nature and involve significant uncertainties and judgments and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. If these estimates or material related assumptions change in the future, the Company may be required to record impairment charges related to its long-lived and/or indefinite-lived assets. |
Contingencies | Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Defined Benefit Pension Plans and Other Postretirement Benefit Plan | Defined Benefit Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 12 , the Company has both funded and unfunded defined benefit plans, as well as a contributory welfare plan, covering certain full-time employees and retirees. The expense recognized by the Company is determined using certain assumptions, including the discount rate, expected long-term rate of return, and rate of compensation increases, among others. The Company recognizes the funded status of its defined benefit pension and other postretirement plans (other than multiemployer plans) as an asset or liability in the consolidated balance sheets and recognizes changes in the funded status in the year in which the changes occur through other comprehensive income (loss). |
Earnings Per Common Share | Earnings (Loss) Per Common Share Basic earnings (loss) per common share (“EPS”) is based upon net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the effect of the assumed vesting of RSUs and exercise of stock options (see Note 13 ) only in the periods in which such effect would have been dilutive. |
Common Stock | Common Stock Holders of the Company’s Class A common stock, par value $0.01 per share (“Class A Common Stock”) have one vote per share . Holders of the Company’s Class B common stock, par value $0.01 per share (“Class B Common Stock”) have ten votes per share . The Company’s Class A Common Stock has no conversion rights, and the Company’s Class B Common Stock can be converted to Class A Common Stock at any time with a conversion ratio of one share of Class A Common Stock for one share of Class B Common Stock. Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally on a per share basis. All actions submitted to a vote of stockholders are voted on by holders of Class A Common Stock (with one vote per share) and Class B Common Stock (with ten votes per share) voting together as a single class, except for the election of directors. With respect to the election of directors, holders of Class A Common Stock vote together as a separate class and are entitled to elect 25% of the total number of directors constituting the whole Board of Directors and, if such 25% is not a whole number, then the holders of Class A Common Stock, voting together as a separate class, are entitled to elect the nearest higher whole number of directors that is at least 25% of the total number of directors. Holders of Class B Common Stock, voting together as a separate class, are entitled to elect the remaining directors. In addition, members of the Dolan family group are parties to a Stockholders Agreement, which has the effect of causing the voting power of the Class B stockholders to be cast as a block on all matters to be voted on by holders of the Company’s Class B Common Stock. |
Recently Adopted Accounting Pronouncement | Recently Adopted Accounting Pronouncements The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 842 , Leases , on July 1, 2019 (“Adoption Date”), which superseded the lease recognition requirements in ASC Topic 840 , Leases . The Company applied the modified retrospective approach and effective date method. The Company elected the package of practical expedients, permitted under the transition guidance in the new standard, which among other things allowed for the carry forward of the historical classification of leases. The adoption of ASC 842 resulted in the recognition of operating lease liabilities of approximately $18,700 and operating lease right-of-use assets of the same amount as of Adoption Date. The historical net lease liabilities balances as of Adoption Date were eliminated as an offset to the operating lease right-of-use assets, resulting in net lease assets of approximately $16,300 . The new standard did not impact the Company’s consolidated net income or cash flows. See Note 8 for further discussion regarding leases. |
Recently Issued Acounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses, and subsequent ASUs that amended the application of ASU No. 2016-13, which introduces a new impairment model for most financial assets and certain other instruments. For trade and other receivables, the Company will be required to use a forward-looking “expected loss” model that will replace the current “incurred loss” model and generally will result in earlier recognition of allowances for losses. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Topic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans , which removes, adds, or clarifies disclosure requirements relating to defined benefit plans to improve disclosure effectiveness. This standard will be effective for the Company beginning in the fourth quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied retroactively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-02, Entertainment — Films — Other Assets — Film Costs (Subtopic 926-20) and Entertainment — Broadcasters — Intangibles — Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , which amends ASC Subtopic 920-350 to align the accounting for production costs of an episodic television series with that for the costs of producing films. This standard will be effective for the Company beginning in the first quarter of fiscal year 2021. The standard is to be applied prospectively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. This standard will be effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The standard is to be applied prospectively to all periods presented. The Company is currently evaluating the impact this standard will have on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. This standard was effective upon issuance, and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, if elected. |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer, Asset and Liability (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about current contract balances from contracts with customers: June 30, 2020 2019 Accounts receivable (including advertising receivable included in related party receivables, net) $ 124,325 $ 130,422 Contract asset, short-term (included in other current assets) — 839 Contract asset, long-term (included in other assets) 37 — Deferred revenue, short-term 2,753 185 Deferred revenue, long-term (included in other liabilities) 69 230 |
Computation of Earnings Per C_2
Computation of Earnings Per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Shares Used in Calculation of Basic and Diluted EPS | Computation of Earnings (Loss) per Common Share The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS: Years Ended June 30, 2020 2019 2018 Weighted-average number of shares for basic EPS 63,172 75,069 75,381 Dilutive effect of shares issuable under share-based compensation plans 343 662 439 Weighted-average number of shares for diluted EPS 63,515 75,731 75,820 Anti-dilutive shares 2,793 714 519 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: June 30, 2020 2019 Affiliate relationships $ 83,044 $ 83,044 Less accumulated amortization (52,761 ) (49,301 ) $ 30,283 $ 33,743 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The Company expects its aggregate annual amortization expense for existing intangible assets subject to amortization for each fiscal year from 2021 through 2025 to be as follows: Fiscal year ending June 30, 2021 $ 3,460 Fiscal year ending June 30, 2022 3,460 Fiscal year ending June 30, 2023 3,460 Fiscal year ending June 30, 2024 3,460 Fiscal year ending June 30, 2025 3,460 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of June 30, 2020 and 2019 , property and equipment consisted of the following assets: June 30, Estimated 2020 2019 Useful Lives Equipment $ 28,902 $ 35,642 2 to 10 years Furniture and fixtures 1,726 1,726 5 to 8 years Leasehold improvements 18,585 18,505 Shorter of term of lease or life of improvement Construction in progress 277 1,058 49,490 56,931 Less: accumulated depreciation and amortization (40,732 ) (47,629 ) $ 8,758 $ 9,302 |
Operating Leases Summary of Lea
Operating Leases Summary of Lease Costs (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Operating lease cost consists of the following: Years Ended June 30, 2020 2019 2018 Operating lease cost $ 5,556 $ 5,505 $ 5,474 Variable lease cost 1,331 — — Total operating lease cost $ 6,887 $ 5,505 $ 5,474 |
Operating Leases Weighted Avera
Operating Leases Weighted Average Discount Rate and Remaining Term (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Weighted Average Discount Rate and Remaining Term [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | The following table summarizes the weighted-average remaining lease term and discount rate for operating leases: June 30, Weighted-average discount rate for operating leases 3.33 % Weighted-average remaining operating lease term in years 3.61 |
Operating Leases Lessee, Operat
Operating Leases Lessee, Operating Lease Liability, Payments Due (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Lessee, Operating Lease, Liability, Payments, Due [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of June 30, 2020 , the maturities of the Company’s operating lease liabilities are as follows: Fiscal year ending June 30, 2021 $ 6,012 Fiscal year ending June 30, 2022 5,310 Fiscal year ending June 30, 2023 4,966 Fiscal year ending June 30, 2024 4,135 Fiscal year ending June 30, 2025 17 Total undiscounted operating lease payments 20,440 Less: imputed interest 1,168 Total operating lease liabilities 19,272 Less: current portion of operating lease liabilities 5,492 Non-current operating lease liabilities $ 13,780 |
Operating Leases Summary of Sup
Operating Leases Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities [Abstract] | |
Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities [Table Text Block] [Text Block] | Supplemental cash flow information related to operating leases: June 30, Cash paid for amounts included in the measurement of operating lease liabilities $ 5,940 Cash paid for variable lease payments not included in measurement of operating lease liabilities 1,331 Total $ 7,271 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | As of June 30, 2020 , future cash payments required under contracts entered into by the Company in the normal course of business are as follows: Fiscal year ending June 30, 2021 $ 268,532 Fiscal year ending June 30, 2022 255,153 Fiscal year ending June 30, 2023 262,429 Fiscal year ending June 30, 2024 249,331 Fiscal year ending June 30, 2025 246,013 Thereafter 2,597,887 $ 3,879,345 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following table presents for each of these hierarchy levels, the Company’s assets that are measured at fair value on a recurring basis, which include cash equivalents: Level I Level II Level III Total June 30, 2020 Assets: Money market accounts $ 129,609 $ — $ — $ 129,609 Time deposits 65,713 — — 65,713 Total assets measured at fair value $ 195,322 $ — $ — $ 195,322 June 30, 2019 Assets: Money market accounts $ 17,619 $ — $ — $ 17,619 Time deposits 201,524 — — 201,524 Total assets measured at fair value $ 219,143 $ — $ — $ 219,143 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2020 and 2019 based upon actuarial valuations as of those measurement dates. Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of period $ 45,154 $ 41,379 $ 2,360 $ 4,169 Service cost 484 445 40 42 Interest cost 1,413 1,607 60 81 Actuarial loss (gain) 4,310 3,180 (400 ) (107 ) Net benefits paid (1,620 ) (1,457 ) (18 ) 4 Other — — — (1,829 ) Benefit obligation at end of period 49,741 45,154 2,042 2,360 Change in plan assets: Fair value of plan assets at beginning of period 20,510 16,225 — — Actual return on plan assets 3,342 2,061 — — Employer contributions 2,376 3,681 — — Net benefits paid (1,620 ) (1,457 ) — — Fair value of plan assets at end of period 24,608 20,510 — — Funded status at end of period $ (25,133 ) $ (24,644 ) $ (2,042 ) $ (2,360 ) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets as of June 30, 2020 and 2019 consist of: Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Current liabilities (included in accrued employee related costs) $ (1,204 ) $ (1,061 ) $ (111 ) $ (109 ) Non-current liabilities (included in defined benefit and other postretirement obligations) (23,929 ) (23,583 ) (1,931 ) (2,251 ) $ (25,133 ) $ (24,644 ) $ (2,042 ) $ (2,360 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Accumulated other comprehensive loss, before tax, as of June 30, 2020 and 2019 consists of the following amounts that have not yet been recognized in net periodic benefit cost: Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Actuarial gain (loss) $ (11,587 ) $ (10,179 ) $ 42 $ (358 ) Prior service credit — — — 3 $ (11,587 ) $ (10,179 ) $ 42 $ (355 ) |
Schedule of Net Periodic Benefit Cost | Components of net periodic benefit cost for the years ended June 30, 2020 , 2019 , and 2018 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Service cost $ 484 $ 445 $ 512 $ 40 $ 42 $ 72 Other components of net periodic benefit cost: Interest cost 1,413 1,607 1,432 60 81 140 Expected return on plan assets (976 ) (574 ) (505 ) — — — Recognized actuarial loss (a) 536 476 596 — 7 60 Amortization of unrecognized prior service credit (a) — — — (3 ) (7 ) (13 ) Other — — — — (1,829 ) — Settlement gain (a) — (5 ) — — — — Net periodic benefit cost $ 1,457 $ 1,949 $ 2,035 $ 97 $ (1,706 ) $ 259 (a) Reflects amounts reclassified from accumulated other comprehensive loss to other components of net periodic benefit cost in the accompanying consolidated statements of operations. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2020 , 2019 , and 2018 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Actuarial gain (loss) $ (1,944 ) $ (1,694 ) $ 1,482 $ 400 $ 107 $ (319 ) Amounts reclassified from accumulated other comprehensive loss: Recognized actuarial loss 536 476 596 — 7 60 Recognized prior service credit — — — (3 ) (7 ) (13 ) Settlement gain — (5 ) — — — — Total recognized in other comprehensive income (loss) $ (1,408 ) $ (1,223 ) $ 2,078 $ 397 $ 107 $ (272 ) |
Schedule of Assumptions Used | Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2020 and 2019 are as follows: Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Discount rate 2.69 % 3.53 % 2.14 % 3.23 % Rate of compensation increase 3.00 % 2.00 % n/a n/a Healthcare cost trend rate assumed for next year n/a n/a 6.50 % 6.75 % 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 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2020 , 2019 , and 2018 are as follows: Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Discount rate - service cost 3.68 % 4.25 % 3.92 % 3.42 % 4.24 % 3.90 % Discount rate - interest cost 3.17 % 3.93 % 3.35 % 2.94 % 3.80 % 3.25 % Expected long-term rate of return on plan assets 5.09 % 3.72 % 3.46 % n/a n/a n/a Rate of compensation increase 2.00 % 2.00 % 2.00 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a n/a 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2027 2027 2027 |
Schedule of Effect of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rates | Assumed healthcare cost trend rates are also a key assumption used for the amounts reported for the Postretirement Plan. A one percentage point change in assumed healthcare cost trend rates would have the following effects: Increase (Decrease) in Total of Service and Interest Cost Components for the Increase (Decrease) in Benefit Obligation at Years Ended June 30, June 30, 2020 2019 2018 2020 2019 One percentage point increase $ 10 $ 12 $ 28 $ 165 $ 205 One percentage point decrease (9 ) (11 ) (24 ) (150 ) (185 ) |
Schedule of Allocation of Plan Assets | The weighted-average asset allocation of the Union Plan’s assets at June 30, 2020 and 2019 was as follows: June 30, Asset Classes: 2020 2019 Fixed income securities 99 % 83 % Cash equivalents 1 % 17 % 100 % 100 % |
Schedule of Changes in Fair Value of Plan Assets | The fair value of the Union Plan’s assets at June 30, 2020 and 2019 by asset class are as follows: Fair Value of Plan Assets at June 30, 2020 Level I Level II Level III Total Fixed income securities: Long duration fixed income funds — 17,650 — 17,650 Investment grade fixed income funds — 6,774 — 6,774 Money market accounts 184 — — 184 Total investments measured at fair value $ 184 $ 24,424 $ — $ 24,608 Fair Value of Plan Assets at June 30, 2019 Fixed income securities: U.S. Treasury Securities $ 4,720 $ — $ — $ 4,720 U.S. corporate bonds — 10,645 — 10,645 Foreign issued corporate bonds — 1,600 — 1,600 Municipal bonds — 35 — 35 Money market accounts 3,510 — — 3,510 Total investments measured at fair value $ 8,230 $ 12,280 $ — $ 20,510 |
Schedule of Expected Benefit Payments | The following table presents estimated future fiscal year benefit payments for the Pension Plans and Postretirement Plan: Pension Plans Postretirement Plan Fiscal year ending June 30, 2021 $ 2,200 $ 110 Fiscal year ending June 30, 2022 2,310 130 Fiscal year ending June 30, 2023 2,460 150 Fiscal year ending June 30, 2024 2,570 160 Fiscal year ending June 30, 2025 2,680 170 Fiscal years ending June 30, 2026 – 2030 14,420 850 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table summarizes activity relating to holders of the Company’s NQSOs for the year ended June 30, 2020 : Number of Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Nonperformance Based Vesting Performance Based Vesting Balance as of June 30, 2019 1,277 1,277 $ 20.87 5.52 $ 3,132 Granted (a) 556 557 14.33 Balance as of June 30, 2020 1,833 1,834 $ 18.88 5.17 — Exercisable as of June 30, 2020 924 536 $ 19.07 4.04 $ — |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Risk-free interest rate 1.4 % Expected term 5.25 years Expected volatility 30.68 % |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes activity relating to holders of the Company’s RSUs for the year ended June 30, 2020 : Number of Weighted-Average Fair Value Per Share At Date of Grant Nonperformance Based Vesting RSUs Performance Based Vesting Unvested award balance as of June 30, 2019 541 836 $ 23.08 Granted (a) 397 316 14.46 Vested (a) (341 ) (279 ) 20.46 Forfeited (2 ) (3 ) 19.14 Unvested award balance as of June 30, 2020 595 870 20.01 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) is comprised of the following components: Years Ended June 30, 2020 2019 2018 Current expense: Federal $ 49,971 $ 48,769 $ 64,021 State and other 27,451 31,791 30,651 77,422 80,560 94,672 Deferred expense (benefit): Federal (532 ) 134 (109,145 ) State and other (3,027 ) 2,021 (1,851 ) (3,559 ) 2,155 (110,996 ) Tax benefit relating to uncertain tax positions — — (14 ) Income tax expense (benefit) $ 73,863 $ 82,715 $ (16,338 ) |
Schedule of Effective Income Tax Rate Reconciliation | The income tax expense (benefit) differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items: Years Ended June 30, 2020 2019 2018 Federal tax expense at statutory federal rate (a) $ 54,408 $ 56,468 $ 76,470 State and local income taxes, net of federal benefit 21,312 23,910 21,372 Change in the estimated applicable tax rate used to determine deferred taxes (1,899 ) 1,398 (497 ) Impact of Tax Cuts and Jobs Act on deferred taxes — — (106,446 ) Domestic production activities tax deduction — — (3,585 ) Tax benefit relating to uncertain tax positions — — (14 ) Tax return to GAAP provision adjustments (420 ) (1,770 ) (3,411 ) Impact of nondeductible officers’ compensation (b) 2,046 2,989 — Excess tax benefit related to share-based payment awards (1,576 ) (515 ) (312 ) Nondeductible expenses and other (8 ) 235 85 Income tax expense (benefit) $ 73,863 $ 82,715 $ (16,338 ) (a) On December 22, 2017, the enactment of the Tax Cuts and Jobs Act (“TCJA”) significantly changed the U.S. tax laws and included a reduction in the corporate federal tax rate from 35% to 21% effective January 1, 2018. For the year ended June 30, 2018, the Company used a blended statutory federal rate of 28% (based upon the number of days for the fiscal year ended 2018 that it will be taxed at the former rate of 35% and the number of days it will be taxed at the new rate of 21%). (b) The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1 million annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1 million is nondeductible. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities included in the accompanying consolidated balance sheets as of June 30, 2020 and 2019 are as follows: June 30, 2020 2019 Deferred tax asset (liability) Investment in MSGN L.P. $ (247,786 ) $ (249,143 ) Compensation and benefit plans 8,244 5,747 Net noncurrent deferred tax liability $ (239,542 ) $ (243,396 ) |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Revenues in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 , and 2018 include amounts from the following individual customers, which accounted for the noted percentages of the total: Years Ended June 30, 2020 2019 2018 Customer 1 26 % 24 % 24 % Customer 2 24 % 23 % 23 % Customer 3 21 % 21 % 22 % Customer 4 9 % 11 % 11 % The accompanying consolidated balance sheets as of June 30, 2020 and 2019 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the New Jersey Devils: June 30, Reported in 2020 2019 Prepaid expenses $ 3,000 $ 1,000 Other current assets 4,000 4,000 Other assets 34,000 36,000 $ 41,000 $ 41,000 Accounts receivable, net on the accompanying consolidated balance sheets as of June 30, 2020 and 2019 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance: June 30, 2020 2019 Customer A 26 % 25 % Customer B 25 % 25 % Customer C 22 % 23 % Customer D 11 % 14 % |
Interim Financial Information (
Interim Financial Information (Tables) | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Schedule of Quarterly Financial Information | The following is a summary of the Company’s selected quarterly financial data for the years ended June 30, 2020 and 2019 : Three Months Ended Year Ended June 30, 2020 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 Revenues $ 160,981 $ 187,730 $ 184,972 $ 152,114 $ 685,797 Operating expenses 92,707 117,767 111,309 69,046 390,829 Operating income $ 68,274 $ 69,963 $ 73,663 $ 83,068 $ 294,968 Net income $ 43,067 $ 39,964 $ 46,270 $ 55,920 $ 185,221 Earnings per share: Basic $ 0.57 $ 0.66 $ 0.77 $ 0.98 $ 2.93 Diluted $ 0.57 $ 0.66 $ 0.77 $ 0.97 $ 2.92 | Three Months Ended Year Ended June 30, 2019 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 Revenues $ 164,464 $ 192,914 $ 195,105 $ 168,362 $ 720,845 Operating expenses 85,603 114,564 112,624 98,155 410,946 Operating income $ 78,861 $ 78,350 $ 82,481 $ 70,207 $ 309,899 Net income $ 46,930 $ 43,838 $ 54,235 $ 41,179 $ 186,182 Earnings per share: Basic $ 0.63 $ 0.58 $ 0.72 $ 0.55 $ 2.48 Diluted $ 0.62 $ 0.58 $ 0.72 $ 0.54 $ 2.46 |
Schedule II (Tables)
Schedule II (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period (Additions) Deductions Charged to Costs and Expenses (Additions) Deductions Charged to Other Accounts Deductions (a) Balance at End of Period Year Ended June 30, 2020 Allowance for doubtful accounts $ (1,169 ) $ (278 ) $ — $ 29 $ (1,418 ) Year Ended June 30, 2019 Allowance for doubtful accounts $ (509 ) $ (930 ) $ — $ 270 $ (1,169 ) Year Ended June 30, 2018 Allowance for doubtful accounts $ (594 ) $ (17 ) $ — $ 102 $ (509 ) _____________________________ (a) Primarily reflects write-offs of uncollectible amounts. |
Debt Debt (Tables)
Debt Debt (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Fiscal year ending June 30, 2021 $ 38,500 Fiscal year ending June 30, 2022 49,500 Fiscal year ending June 30, 2023 66,000 Fiscal year ending June 30, 2024 82,500 Fiscal year ending June 30, 2025 849,750 $ 1,086,250 |
Schedule of Debt [Table Text Block] | The following table summarizes the presentation of the Term Loan Facility and the Former Term Loan Facility, and the related deferred financing costs in the accompanying consolidated balance sheets as of June 30, 2020 and 2019 : Term Loan Facilities Deferred Financing Costs Net June 30, 2020 Current portion of long-term debt $ 38,500 $ (1,271 ) $ 37,229 Long-term debt, net of current portion 1,047,750 (3,970 ) 1,043,780 Total $ 1,086,250 $ (5,241 ) $ 1,081,009 June 30, 2019 Current portion of long-term debt $ 114,375 $ (2,586 ) $ 111,789 Long-term debt, net of current portion 906,875 (647 ) 906,228 Total $ 1,021,250 $ (3,233 ) $ 1,018,017 |
Debt Financing Cost [Table Text Block] | In addition, the Company has recorded deferred financing costs related to the Revolving Credit Facility and the Former Revolving Credit Facility in the accompanying consolidated balance sheets as summarized in the following table: June 30, 2020 2019 Other current assets $ 343 $ 417 Other assets 1,123 104 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 12 Months Ended | ||
Jun. 30, 2020 | Apr. 17, 2020 | Sep. 21, 2015 | |
Description of Business And Basis of Presentation [Abstract] | |||
Percentage of ownership of business distributed to stockholders in Spin Off | 100.00% | 100.00% | |
Number of reportable segments | 1 | ||
Regional Sports and Entertainment Networks | 2 |
Advertising Costs, Policy (Narr
Advertising Costs, Policy (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | |||
Advertising Expense | $ 20,406 | $ 18,249 | $ 11,229 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jul. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||
Operating Lease, Liability | $ 19,272 | $ 18,700 | |
Operating Lease, Right-of-Use Asset | $ 17,153 | $ 16,300 | $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Common Stock (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 21, 2015 | |
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, Voting Rights | one vote per share | ||
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock, Voting Rights | ten votes per share |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Investment in non-consolidated entity (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Investment in Non Consolidated entity [Abstract] | |
Investment Owned, at Cost | $ 2,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts Receivable [Abstract] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 1,418 | $ 1,169 | $ 509 | $ 594 |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Narrative) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
PaymentTermsAffiliationFeeRevenue | within 30-60 days after revenue is earned |
PaymentTermsAdvertisingRevenue | payment terms are 30-60 days after revenue is earned |
Revenue, Remaining Performance Obligation, Amount | $ 10,930 |
Contract with Customer, Liability, Revenue Recognized | $ 185 |
Minimum [Member] | |
Affiliation Revenue Percentage Concentration Revenue | 90.00% |
Revenue Recognition Revenue fro
Revenue Recognition Revenue from Contract with Customer (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 10,930 | |
Accounts receivable (including advertising receivable included in related party receivables, net) | 124,325 | $ 130,422 |
Contract asset, short-term (included in other current assets) | 0 | 839 |
Contract asset, long-term (included in other assets) | 37 | 0 |
Deferred revenue, short-term | 2,753 | 185 |
Deferred revenue, long-term (included in other liabilities) | $ 69 | $ 230 |
Revenue Recognition Revenue, Re
Revenue Recognition Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 10,930 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 years |
Revenue, Remaining Performance Obligation, Amount | $ 9,836 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Amount | $ 1,094 |
Computation of Earnings Per C_3
Computation of Earnings Per Common Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares for basic EPS (in shares) | 63,172 | 75,069 | 75,381 |
Dilutive effect of shares issuable under share-based compensation plans (in shares) | 343 | 662 | 439 |
Weighted-average shares for diluted EPS (in shares) | 63,515 | 75,731 | 75,820 |
Anti-dilutive shares | 2,793 | 714 | 519 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net | $ 30,283 | $ 33,743 | |
Affiliate relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 83,044 | 83,044 | |
Accumulated Amortization | (52,761) | (49,301) | |
Net | 30,283 | 33,743 | |
Amortization expense | $ 3,460 | $ 3,460 | $ 3,460 |
Finite-Lived Intangible Asset, Useful Life | 24 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Expected Aggregat Annual Amortization) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Fiscal year ending June 30, 2020 | $ 3,460 |
Fiscal year ending June 30, 2021 | 3,460 |
Fiscal year ending June 30, 2022 | 3,460 |
Fiscal year ending June 30, 2023 | 3,460 |
Fiscal year ending June 30, 2024 | $ 3,460 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Cost, Depreciation, Amortization and Depletion | $ 3,703 | $ 3,938 | $ 5,878 |
Property and equipment, gross | 49,490 | 56,931 | |
Less accumulated depreciation and amortization | (40,732) | (47,629) | |
Property and equipment, net | 8,758 | 9,302 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 28,902 | 35,642 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,726 | 1,726 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 18,585 | 18,505 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 277 | $ 1,058 | |
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Maximum [Member] | Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 8 years | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Minimum [Member] | Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Cost, Depreciation, Amortization and Depletion | $ 3,703 | $ 3,938 | $ 5,878 |
Operating Leases Summary of L_2
Operating Leases Summary of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | |||
Finance Lease, Liability | $ 0 | ||
Operating Lease, Cost | 5,556 | $ 5,505 | $ 5,474 |
Variable Lease, Cost | 1,331 | 0 | 0 |
Lease, Cost | $ 6,887 | $ 5,505 | $ 5,474 |
Operating Leases Weighted Ave_2
Operating Leases Weighted Average Discount Rate and Remaining Term (Details) | Jun. 30, 2020 |
Weighted Average Discount Rate and Remaining Term [Abstract] | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.33% |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 7 months 9 days |
Operating Leases Maturity, Oper
Operating Leases Maturity, Operating Lease Liability, Payments Due (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jul. 01, 2019 | Jun. 30, 2019 |
Leases, Cost [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 6,012 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5,310 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 4,966 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 4,135 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 17 | ||
Lessee, Operating Lease, Liability, Payments, Due | 20,440 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 1,168 | ||
Operating Lease, Liability | 19,272 | $ 18,700 | |
Current portion of operating lease liabilities | 5,492 | $ 0 | |
Long-term operating lease liabilities | $ 13,780 | $ 0 |
Operating Leases Summary of S_2
Operating Leases Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities [Abstract] | |
Operating Lease, Payments | $ 5,940 |
Variable Lease, Payment | 1,331 |
Operating Lease, Payments, Use | $ 7,271 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Obligations and Off Balance Sheet Arrangements [Abstract] | |
Fiscal year ending June 30, 2021 | $ 268,532 |
Fiscal year ending June 30, 2022 | 255,153 |
Fiscal year ending June 30, 2023 | 262,429 |
Fiscal year ending June 30, 2024 | 249,331 |
Fiscal year ending June 30, 2025 | 246,013 |
Thereafter | 2,597,887 |
Total contractual obligations | $ 3,879,345 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Level II [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 1,021,080 | |
Money market [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 129,609 | $ 17,619 |
Money market [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 129,609 | 17,619 |
Money market [Member] | Level II [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Money market [Member] | Level III [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Time deposits [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 65,713 | 201,524 |
Time deposits [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 65,713 | 201,524 |
Time deposits [Member] | Level II [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Time deposits [Member] | Level III [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 195,322 | 219,143 |
Estimate of Fair Value Measurement [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 195,322 | 219,143 |
Estimate of Fair Value Measurement [Member] | Level II [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Level III [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 | $ 0 |
Pension Schedule of Net Funded
Pension Schedule of Net Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | $ 20,510 | ||
Fair value of plan assets at end of period | 24,608 | $ 20,510 | |
Pension Plan [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | 45,154 | 41,379 | |
Service cost | 484 | 445 | $ 512 |
Interest cost | 1,413 | 1,607 | 1,432 |
Actuarial loss (gain) | 4,310 | 3,180 | |
Net benefits paid | 1,620 | 1,457 | |
Other | 0 | 0 | 0 |
Benefit obligation at end of period | 49,741 | 45,154 | 41,379 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 20,510 | 16,225 | |
Actual return on plan assets | 3,342 | 2,061 | |
Employer contributions | 2,376 | 3,681 | |
Net benefits paid | (1,620) | (1,457) | |
Fair value of plan assets at end of period | 24,608 | 20,510 | 16,225 |
Funded status at end of period | (25,133) | (24,644) | |
Other Postretirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | 2,360 | 4,169 | |
Service cost | 40 | 42 | 72 |
Interest cost | 60 | 81 | 140 |
Actuarial loss (gain) | (400) | (107) | |
Net benefits paid | 18 | 4 | |
Other | 0 | (1,829) | 0 |
Benefit obligation at end of period | 2,042 | 2,360 | 4,169 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0 | 0 | |
Net benefits paid | 0 | 0 | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Funded status at end of period | $ (2,042) | $ (2,360) |
Pension Schedule of Amounts Rec
Pension Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Amounts Recognized in Consolidated Balance Sheet [Abstract] | ||
Non-current liabilities (included in defined benefit and other postretirement obligations) | $ (25,860) | $ (25,834) |
Pension Plan [Member] | ||
Amounts Recognized in Consolidated Balance Sheet [Abstract] | ||
Current liabilities (included in accrued employee related costs) | (1,204) | (1,061) |
Non-current liabilities (included in defined benefit and other postretirement obligations) | (23,929) | (23,583) |
Liability, Defined Benefit Plan | (25,133) | (24,644) |
Other Postretirement Benefit Plan | ||
Amounts Recognized in Consolidated Balance Sheet [Abstract] | ||
Current liabilities (included in accrued employee related costs) | (111) | (109) |
Non-current liabilities (included in defined benefit and other postretirement obligations) | (1,931) | (2,251) |
Liability, Defined Benefit Plan | $ (2,042) | $ (2,360) |
Pension Schedule of Net Periodi
Pension Schedule of Net Periodic Benefit Cost Not yet Recognized (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Pension Plan [Member] | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Actuarial loss | $ (11,587) | $ (10,179) |
Prior service credit | 0 | 0 |
Total amounts not yet recognized in net periodic benefit cost | (11,587) | (10,179) |
Other Postretirement Benefit Plan | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Actuarial loss | 42 | (358) |
Prior service credit | 0 | 3 |
Total amounts not yet recognized in net periodic benefit cost | $ 42 | $ (355) |
Pension Schedule of Net Perio_2
Pension Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | |||
Schedule of Net Benefit Cost | |||
Service cost | $ 484 | $ 445 | $ 512 |
Other components of net periodic benefit cost: | |||
Interest cost | 1,413 | 1,607 | 1,432 |
Expected return on plan assets | (976) | (574) | (505) |
Recognized actuarial loss | 536 | 476 | 596 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Settlement gain | 0 | (5) | 0 |
Net periodic benefit cost | 1,457 | 1,949 | 2,035 |
Other Postretirement Benefit Plan | |||
Schedule of Net Benefit Cost | |||
Service cost | 40 | 42 | 72 |
Other components of net periodic benefit cost: | |||
Interest cost | 60 | 81 | 140 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized actuarial loss | 0 | 7 | 60 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (3) | (7) | (13) |
Other | 0 | (1,829) | 0 |
Settlement gain | 0 | 0 | 0 |
Net periodic benefit cost | $ 97 | $ (1,706) | $ 259 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefit Plan Pension Plans and Other Postretirement Benefit Plan Narrative (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 49,199,000 | $ 44,325,000 |
Defined Benefit Plan, Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 24,768,000 | |
Union Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 280,000 |
Pension Schedule of Amounts R_2
Pension Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Actuarial gain (loss) | $ 1,544 | $ 1,587 | $ (1,163) |
Amortization of prior service credit included in net periodic benefit cost | (3) | (7) | (13) |
Settlement gain | 0 | 5 | 0 |
Pension Plan [Member] | |||
Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Actuarial gain (loss) | 1,944 | 1,694 | (1,482) |
Defined Benefit Plan, Amortization of Gain (Loss) | 536 | 476 | 596 |
Amortization of prior service credit included in net periodic benefit cost | 0 | 0 | 0 |
Settlement gain | 0 | 5 | 0 |
Total recognized in other comprehensive income (loss) | (1,408) | (1,223) | 2,078 |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 506 | ||
Other Postretirement Benefit Plan | |||
Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||
Actuarial gain (loss) | (400) | (107) | 319 |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 7 | 60 |
Amortization of prior service credit included in net periodic benefit cost | (3) | (7) | (13) |
Settlement gain | 0 | 0 | 0 |
Total recognized in other comprehensive income (loss) | $ 397 | $ 107 | $ (272) |
Pension Schedule of Assumptions
Pension Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.69% | 3.53% | |
Rate of compensation increase | 3.00% | 2.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate- service cost | 3.68% | 4.25% | 3.92% |
Discount rate- interest cost | 3.17% | 3.93% | 3.35% |
Expected long-term return on plan assets | 5.09% | 3.72% | 3.46% |
Rate of compensation increase | 2.00% | 2.00% | 2.00% |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.14% | 3.23% | |
Healthcare cost trend rate assumed for next year | 6.50% | 6.75% | |
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 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate- service cost | 3.42% | 4.24% | 3.90% |
Discount rate- interest cost | 2.94% | 3.80% | 3.25% |
Healthcare cost trend rate assumed for next year | 6.75% | 7.00% | 7.25% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2027 |
Pension Schedule of Health Care
Pension Schedule of Health Care Cost Trend Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
One Percentage Point Increase | $ 10 | $ 12 | $ 28 |
One Percentage Point Decrease | (9) | (11) | $ (24) |
One Percentage Point Increase, Postretirement Benefit Obligation | 165 | 205 | |
One Percentage Point Decrease, Postretirement Benefit Obligation | $ (150) | $ (185) |
Pension Schedule of Allocation
Pension Schedule of Allocation of Plan Assets (Details) | Jun. 30, 2020 | Jun. 30, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100.00% | 100.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 99.00% | 83.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 1.00% | 17.00% |
Pension Schedule of Changes in
Pension Schedule of Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | $ 24,608 | $ 20,510 |
Level I [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 184 | 8,230 |
Level II [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 24,424 | 12,280 |
US Treasury Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 4,720 | |
US Treasury Securities [Member] | Level I [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 4,720 | |
U.S. Corporate bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 10,645 | |
U.S. Corporate bonds [Member] | Level II [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 10,645 | |
Foreign issued corporate bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 1,600 | |
Foreign issued corporate bonds [Member] | Level II [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 1,600 | |
Municipal Bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 35 | |
Municipal Bonds [Member] | Level II [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 35 | |
Long Duration fixed income funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 17,650 | |
Long Duration fixed income funds [Member] | Level II [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 17,650 | |
Investment grade fixed income funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 6,774 | |
Investment grade fixed income funds [Member] | Level II [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 6,774 | |
Money market [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | 184 | 3,510 |
Money market [Member] | Level I [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative Fair Values | $ 184 | $ 3,510 |
Schedule of Expected Benefit Pa
Schedule of Expected Benefit Payments (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Pension Plan [Member] | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
Fiscal year ending June 30, 2020 | $ 2,200 |
Fiscal year ending June 30, 2021 | 2,310 |
Fiscal year ending June 30, 2022 | 2,460 |
Fiscal year ending June 30, 2023 | 2,570 |
Fiscal year ending June 30, 2024 | 2,680 |
Fiscal year ending June 30, 2025 - 2029 | 14,420 |
Other Postretirement Benefit Plan | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |
Fiscal year ending June 30, 2020 | 110 |
Fiscal year ending June 30, 2021 | 130 |
Fiscal year ending June 30, 2022 | 150 |
Fiscal year ending June 30, 2023 | 160 |
Fiscal year ending June 30, 2024 | 170 |
Fiscal year ending June 30, 2025 - 2029 | $ 850 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefit Plan Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Savings Plans [Abstract] | |||
Defined Contribution Plan, Cost | $ 1,028 | $ 1,057 | $ 957 |
Pension Plans and Other Postr_5
Pension Plans and Other Postretirement Benefit Plan Multiemployer Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Multiemployer Plans [Abstract] | |||
Multiemployer Plan, Contributions by Employer | $ 1,140 | $ 1,145 | $ 1,299 |
Share-Based Compensation Share-
Share-Based Compensation Share-based Compensation - Narrative (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based compensation plans | 2 |
Employee Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Number of Shares Authorized (in shares) | 12,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | NQSOs under the Employee Stock Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). |
Non Employee Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation, Number of Shares Authorized (in shares) | 400 |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | NQSOs under the Non-Employee Director Plan must be granted with an exercise price of not less than the fair market value of a share of the Company’s Class A Common Stock on the date of grant and must expire no later than 10 years from the date of grant (or up to one additional year in the case of the death of a holder). |
Non-Performance Vesting [Member] | Non Employee Director Plan [Member] | Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation Arrangement by Share-Based Payment Awards, Settlement Description | on the first business day after ninety days from the date the director’s service on the Board of Directors ceases or, if earlier, upon the director’s death. |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based Compensation Expense | $ 19,235,000 | $ 18,087,000 | $ 13,979,000 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 17,664,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||
Costs related to share-based compensation that were capitalized | $ 0 | ||
Share-based Payment Arrangement, Expense, Tax Benefit | $ 2,484,000 | $ 3,406,000 | $ 2,814,000 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options, Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 2 months 1 day | 5 years 6 months 7 days |
Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 14 days | |
Options, Outstanding, Intrinsic Value | $ 0 | $ 3,132 |
Options, Exercisable, Intrinsic Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Oustanding Weighted Average Exercise Price [Roll Forward] | ||
Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 20.87 | |
Options, Grants in Period, Weighted Average Exercise Price | 14.33 | |
Options, Outstanding, Weighted Average Exercise Price, Ending Balance | 18.88 | $ 20.87 |
Options, Exercisable, Weighted Average Exercise Price | $ 19.07 | |
Non-Performance Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding, Beginning Balance | 1,277 | |
Options, Grants in Period | 556 | |
Options, Outstanding, Ending Balance | 1,833 | 1,277 |
Options, Exercisable, Number | 924 | |
Performance Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Options TARGET PAYOUT | 100.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options, Outstanding, Beginning Balance | 1,277 | |
Options, Grants in Period | 557 | |
Options, Outstanding, Ending Balance | 1,834 | 1,277 |
Options, Exercisable, Number | 536 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Oustanding Weighted Average Exercise Price [Roll Forward] | ||
Share Based Compensation Arrangement By Share Based Payment Award Options ACTUAL PAYOUT | 100.30% |
Share-Based Compensation Shar_2
Share-Based Compensation Share-Based Compensation - Stock Options - Narrative (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-Based Compensation - Stock Options (Narrative) [Line Items] | |
Share-based Payment Award, Expiration Period | 7 years 6 months |
Stock Options Weighted Average Grant Date Fair Value | $ / shares | $ 4.32 |
Stock Options [Member] | Ratable Vesting [Member] | |
Share-Based Compensation - Stock Options (Narrative) [Line Items] | |
Award Vesting Period | 3 years |
Stock Options [Member] | Cliff Vesting [Member] | |
Share-Based Compensation - Stock Options (Narrative) [Line Items] | |
Award Vesting Period | 3 years |
Performance Vesting [Member] | Stock Options [Member] | |
Share-Based Compensation - Stock Options (Narrative) [Line Items] | |
Options, Grants in Period | shares | 557 |
Share-Based Compensation Shar_3
Share-Based Compensation Share-Based Compensation (Assumptions) (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Risk Free Interest Rate, Fair Value Assumptions | 1.40% |
Expected Term, Fair Value Assumptions | 5 years 3 months |
Expected Volatility Rate, Fair Value Assumptions | 30.68% |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Units Award Activity) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Weighted-Average Fair Value Per Share at Date of Grant - RSUs (in dollars per share): | |||
Unvested award balance (beginning balance) | $ 23.08 | ||
Granted | 14.46 | $ 25.61 | $ 21.32 |
Vested | 20.46 | ||
Unvested award balance (ending balance) | 20.01 | $ 23.08 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19.14 | ||
Non-Performance Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested award balance (beginning balance) | 541 | ||
RSUs Granted | 397 | ||
Vested | (341) | ||
Unvested award balance (ending balance) | 595 | 541 | |
Weighted-Average Fair Value Per Share at Date of Grant - RSUs (in dollars per share): | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (2) | ||
Performance Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Granted In Period TARGET PAYOUT | 100.00% | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Granted In Period ACTUAL PAYOUT | 100.30% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Unvested award balance (beginning balance) | 836 | ||
RSUs Granted | 316 | ||
Vested | (279) | ||
Unvested award balance (ending balance) | 870 | 836 | |
Weighted-Average Fair Value Per Share at Date of Grant - RSUs (in dollars per share): | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (3) |
Share-Based Compensation Shar_4
Share-Based Compensation Share-Based Compensation - Restricted Stock Units (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
RSUs vested in period, fair value | $ 9,810 | $ 12,779 | $ 9,329 |
RSUs shares witheld for tax withholding for share-based compensation | 269 | ||
Value Of Equity Instruments Surrendered By Employees | $ 4,290 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 14.46 | $ 25.61 | $ 21.32 |
Restricted Stock Units (RSUs) [Member] | Non-Performance Vesting [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
RSUs Granted | 397 | ||
Restricted Stock Units (RSUs) [Member] | Performance Vesting [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
RSUs Granted | 316 | ||
Ratable Vesting [Member] | Stock Options [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
Award Vesting Period | 3 years | ||
Ratable Vesting [Member] | 3 year vesting [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
Award Vesting Period | 3 years | ||
Ratable Vesting [Member] | 4 year vesting [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
Award Vesting Period | 4 years | ||
Cliff Vesting [Member] | Stock Options [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
Award Vesting Period | 3 years | ||
Cliff Vesting [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |||
Award Vesting Period | 3 years |
Share-Based Compensation Share
Share-Based Compensation Share based compensation arrangement by share based award type (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Performance Vesting [Member] | Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award Options TARGET PAYOUT | 100.00% |
Stock Repurchase Program Stock
Stock Repurchase Program Stock Repurchase Program (Details) - Class A Common Stock [Member] - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Aug. 29, 2019 | Aug. 28, 2019 | Dec. 07, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 290,301 | $ 150,000 | |||
Stock Repurchase Program, Increase in Authorized Amount | $ 300,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 145,864 | $ 436,165 | $ 136,165 | ||
Treasury Stock, Shares, Acquired | 18,436 | 0 |
Related Party Transactions (Own
Related Party Transactions (Ownership Percentage) (Details) - $ / shares | Jun. 30, 2020 | Apr. 17, 2020 | Jun. 30, 2019 | Sep. 21, 2015 |
Related Party Ownership Percentage [Line Items] | ||||
Aggregate Voting Power Held By Related Party | 77.00% | |||
Percentage of ownership of business distributed to stockholders in Spin Off | 100.00% | 100.00% | ||
Class B Common Stock [Member] | ||||
Related Party Ownership Percentage [Line Items] | ||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Percentage of Common Stock Owned by Related Party | 100.00% | |||
Class A Common Stock [Member] | ||||
Related Party Ownership Percentage [Line Items] | ||||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Percentage of Common Stock Owned by Related Party | 7.20% |
Related Party Transactions (Tra
Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related party transactions | |||
Rights Fees | $ 140,058 | $ 147,483 | $ 141,726 |
Origination, master control and technical services | 4,690 | 4,632 | 6,138 |
Commissions | 12,591 | 14,945 | 13,011 |
Other operating expenses | (237) | (488) | (1,082) |
Continuing Operations [Member] | |||
Related party transactions | |||
Related Party Transaction General And Administrative Expenses From Transactions With Related Party | $ 10,367 | $ 10,313 | $ 8,863 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Current expense: | |||
Federal | $ 49,971 | $ 48,769 | $ 64,021 |
State and other | 27,451 | 31,791 | 30,651 |
Current expense total | 77,422 | 80,560 | 94,672 |
Deferred benefit: | |||
Federal | (532) | 134 | (109,145) |
State and other | (3,027) | 2,021 | (1,851) |
Deferred benefit total | (3,559) | 2,155 | (110,996) |
Tax Benefit Relating to Uncertain Tax Positions | 0 | 0 | (14) |
Income tax (benefit) expense | $ 73,863 | $ 82,715 | $ (16,338) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Federal tax expense at statutory federal rate | $ 54,408 | $ 56,468 | $ 76,470 |
State and local income taxes, net of federal benefit | 21,312 | 23,910 | 21,372 |
Change in estimated applicable corporate tax rate used to determine deferred taxes | (1,899) | 1,398 | (497) |
Impact of Tax Act on deferred taxes | 0 | 0 | (106,446) |
Domestic production activities tax deduction | 0 | 0 | (3,585) |
Tax Benefit Relating to Uncertain Tax Positions | 0 | 0 | (14) |
Tax return to GAAP provision adjustments | (420) | (1,770) | (3,411) |
Impact of nondeductible officers' compensation | 2,046 | 2,989 | 0 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | (1,576) | (515) | (312) |
Nondeductible expenses and other | (8) | 235 | 85 |
Income tax (benefit) expense | $ 73,863 | $ 82,715 | $ (16,338) |
Income Taxes Tax Cuts and Jobs
Income Taxes Tax Cuts and Jobs Act Reform (Details) | 12 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
EffectiveIncomeTaxRateReconciliationBookingRateDescription | the Company used a blended statutory federal rate of 28% (based upon the number of days for the fiscal year ended 2018 that it will be taxed at the former rate of 35% and the number of days it will be taxed at the new rate of 21%). |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Compensation and benefit plans | $ 8,244 | $ 5,747 |
Deferred Income Tax Liabilities, Net | 239,542 | 243,396 |
Investment in MSGN L.P. [Member] | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Investment in MSGN L.P. | $ (247,786) | $ (249,143) |
Income Taxes Cash Taxes Paid (D
Income Taxes Cash Taxes Paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income Taxes Paid, Net | $ 75,274 | $ 89,854 | $ 84,524 |
Schedule of Customer Concentrat
Schedule of Customer Concentration (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020USD ($)employee | Jun. 30, 2019USD ($) | Jun. 30, 2018 | |
Concentration Risk [Line Items] | |||
Affiliation Revenue Concentration | 90.00% | 90.00% | 90.00% |
Customer concentration [Abstract] | |||
Prepaid expenses | $ 3,000 | $ 1,000 | |
Other current assets | 4,000 | 4,000 | |
Other assets | 34,000 | 36,000 | |
Customer concentration | $ 41,000 | $ 41,000 | |
Concentration Risks, Types, No Concentration Percentage [Abstract] | |||
Employees Subject to Collective Bargaining Agreements that Will Expire Within Next Twelve Months | employee | 500 | ||
Concentration Risk, Percentage of Employees Labor Subject to Collective Bargaining Arrangements | 72.00% | ||
Concentration Risk, Percentage of Employees Labor Subject to Collective Bargaining Arrangements that already expired as of the current fiscal year end | 54.00% | ||
Concentration Risk, Number of Employees Labor Subject to Collective Bargaining Arrangements that expire within the next fiscal year | 41.00% | ||
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.00% | 25.00% | |
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 25.00% | 25.00% | |
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 23.00% | |
Customer D [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 14.00% | |
Customer 1 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 26.00% | 24.00% | 24.00% |
Customer 2 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 24.00% | 23.00% | 23.00% |
Customer 3 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 21.00% | 22.00% |
Customer 4 [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 9.00% | 11.00% | 11.00% |
Interim Financial Information_2
Interim Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 152,114 | $ 184,972 | $ 187,730 | $ 160,981 | $ 168,362 | $ 195,105 | $ 192,914 | $ 164,464 | $ 685,797 | $ 720,845 | $ 696,651 |
Operating expenses | (69,046) | (111,309) | (117,767) | (92,707) | (98,155) | (112,624) | (114,564) | (85,603) | (390,829) | (410,946) | |
Operating income | 83,068 | 73,663 | 69,963 | 68,274 | 70,207 | 82,481 | 78,350 | 78,861 | 294,968 | 309,899 | 313,158 |
Net income | $ 55,920 | $ 46,270 | $ 39,964 | $ 43,067 | $ 41,179 | $ 54,235 | $ 43,838 | $ 46,930 | $ 185,221 | $ 186,182 | $ 288,862 |
Earnings Per Share, Basic | $ 0.98 | $ 0.77 | $ 0.66 | $ 0.57 | $ 0.55 | $ 0.72 | $ 0.58 | $ 0.63 | $ 2.93 | $ 2.48 | $ 3.83 |
Earnings Per Share, Diluted | $ 0.97 | $ 0.77 | $ 0.66 | $ 0.57 | $ 0.54 | $ 0.72 | $ 0.58 | $ 0.62 | $ 2.92 | $ 2.46 | $ 3.81 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ (1,169) | $ (509) | $ (594) | |
(Additions) Deductions Charged to Costs and Expenses | (278) | (930) | (17) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | 0 | 0 | 0 | |
Deductions | [1] | $ 29 | $ 270 | $ 102 |
[1] | Primarily reflects write-offs of uncollectible amounts. |
Debt Debt (Narrative) (Details)
Debt Debt (Narrative) (Details) - USD ($) $ in Thousands | Oct. 11, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 28, 2015 |
Line of Credit Facility [Line Items] | |||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 34,537 | $ 43,518 | $ 40,106 | ||
Debt Instrument, Restrictive Covenants | The Credit Agreement generally requires the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis to comply with a maximum total leverage ratio of 5.50:1.00, subject, at the option of MSGN L.P. to an upward adjustment to 6.00:1.00 during the continuance of certain events. In addition, the Credit Agreement requires a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. | ||||
Amortization of Deferred Financing Costs | 5 years | ||||
Amortization of Debt Issuance Costs | $ 1,994 | $ 3,003 | $ 3,003 | ||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility Maturity Term In Years | 5 years | ||||
2015 Term Loan Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,550,000 | ||||
2015 Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | ||||
2019 Term Loan Facility [Member] [Domain] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,100,000 | ||||
2019 Revolving Credit Facility [Member] [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | ||||
Letters of Credit, maximum capacity | $ 35,000 | ||||
Letters of Credit Outstanding, Amount | $ 0 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 250 | ||||
2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Additional interest Rate when Default | 2.00% | ||||
Term Loan Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line Of Credit Facility Maturity Term In Years | 5 years | ||||
Minimum [Member] | 2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.225% | ||||
Minimum [Member] | Base Rate [Member] | 2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Minimum [Member] | Eurodollar [Member] | 2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Maximum [Member] | 2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||||
Maximum [Member] | Base Rate [Member] | 2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Maximum [Member] | Eurodollar [Member] | 2019 Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Debt Schedule of Maturities of
Debt Schedule of Maturities of Long Term Debt (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Schedule of Maturities of Long-Term Debt [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 38,500 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 49,500 |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 66,000 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 82,500 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 849,750 |
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 1,086,250 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Debt Financing Cost [Line Items] | ||
Debt outstanding, net of deferred financing costs per ASU 2015-03 | $ 1,081,009 | $ 1,018,017 |
current portion of long-term debt [Member] | ||
Debt Financing Cost [Line Items] | ||
Debt outstanding, net of deferred financing costs per ASU 2015-03 | 37,229 | 111,789 |
Long-term debt, net of current portion [Member] | ||
Debt Financing Cost [Line Items] | ||
Debt outstanding, net of deferred financing costs per ASU 2015-03 | 1,043,780 | 906,228 |
2019 Term Loan Facility [Member] [Domain] | ||
Debt Financing Cost [Line Items] | ||
Long-term Debt, Gross | 1,086,250 | |
Debt Issuance Costs, Gross | 5,241 | |
2019 Term Loan Facility [Member] [Domain] | current portion of long-term debt [Member] | ||
Debt Financing Cost [Line Items] | ||
Long-term Debt, Gross | 38,500 | |
Debt Issuance Costs, Gross | 1,271 | |
2019 Term Loan Facility [Member] [Domain] | Long-term debt, net of current portion [Member] | ||
Debt Financing Cost [Line Items] | ||
Long-term Debt, Gross | 1,047,750 | |
Debt Issuance Costs, Gross | $ 3,970 | |
2015 Term Loan Facility [Member] | ||
Debt Financing Cost [Line Items] | ||
Long-term Debt, Gross | 1,021,250 | |
Debt Issuance Costs, Gross | 3,233 | |
2015 Term Loan Facility [Member] | current portion of long-term debt [Member] | ||
Debt Financing Cost [Line Items] | ||
Long-term Debt, Gross | 114,375 | |
Debt Issuance Costs, Gross | 2,586 | |
2015 Term Loan Facility [Member] | Long-term debt, net of current portion [Member] | ||
Debt Financing Cost [Line Items] | ||
Long-term Debt, Gross | 906,875 | |
Debt Issuance Costs, Gross | $ 647 |
Debt Debt Financing Cost (Detai
Debt Debt Financing Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Financing Cost [Line Items] | |||
Amortization of Debt Issuance Costs | $ 1,994 | $ 3,003 | $ 3,003 |
Other Current Assets [Member] | 2019 Revolving Credit Facility [Member] [Member] | |||
Debt Financing Cost [Line Items] | |||
Debt Issuance Costs, Gross | 343 | ||
Other Current Assets [Member] | 2015 Revolving Credit Facility [Member] | |||
Debt Financing Cost [Line Items] | |||
Debt Issuance Costs, Gross | 417 | ||
Other Noncurrent Assets [Member] | 2019 Revolving Credit Facility [Member] [Member] | |||
Debt Financing Cost [Line Items] | |||
Debt Issuance Costs, Gross | $ 1,123 | ||
Other Noncurrent Assets [Member] | 2015 Revolving Credit Facility [Member] | |||
Debt Financing Cost [Line Items] | |||
Debt Issuance Costs, Gross | $ 104 |
Uncategorized Items - msgnetwor
Label | Element | Value |
Cash | us-gaap_Cash | $ 141,087,000 |