Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Entity Registrant Name | MSG Networks Inc. | |
Trading Symbol | MSGN | |
Entity Central Index Key | 1,469,372 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 61,234,541 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 13,588,555 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 170,083 | $ 205,343 |
Accounts receivable, net | 109,519 | 110,657 |
Related party receivables, net | 2,345 | 12,100 |
Prepaid income taxes | 5,773 | 1,134 |
Prepaid expenses | 3,279 | 4,489 |
Other current assets | 5,994 | 4,719 |
Total current assets | 296,993 | 338,442 |
Property and equipment, net | 9,679 | 10,029 |
Amortizable intangible assets, net | 36,338 | 37,203 |
Goodwill | 424,508 | 424,508 |
Other assets | 38,926 | 39,430 |
Total assets | 806,444 | 849,612 |
Current Liabilities: | ||
Accounts payable | 301 | 1,460 |
Related party payables | 1,037 | 785 |
Current portion of long-term debt | 72,414 | 72,414 |
Income taxes payable | 18,507 | 8,460 |
Accrued liabilities: | ||
Employee related costs | 7,703 | 15,342 |
Other accrued liabilities | 6,922 | 8,129 |
Deferred revenue | 4,458 | 4,626 |
Total current liabilities | 111,342 | 111,216 |
Long-term debt, net of current portion | 1,024,914 | 1,118,017 |
Defined benefit and other postretirement obligations | 25,647 | 28,170 |
Other employee related costs | 4,619 | 4,560 |
Other liabilities | 4,100 | 3,974 |
Deferred tax liability | 246,046 | 241,417 |
Total liabilities | 1,416,668 | 1,507,354 |
Commitments and contingencies (see Note 8) | ||
Stockholders' Equity (Deficiency): | ||
Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding | 0 | 0 |
Additional paid-in capital | 0 | 4,067 |
Treasury stock, at cost, 3,024 and 3,242 shares as of September 30, 2018 and June 30, 2018, respectively | (182,714) | (195,881) |
Accumulated deficit | (421,666) | (460,007) |
Accumulated other comprehensive loss | (6,623) | (6,700) |
Total stockholders' deficiency | (610,224) | (657,742) |
Total liabilities and stockholders' deficiency | 806,444 | 849,612 |
Class A Common Stock [Member] | ||
Stockholders' Equity (Deficiency): | ||
Common stock, value issued | 643 | 643 |
Class B Common Stock [Member] | ||
Stockholders' Equity (Deficiency): | ||
Common stock, value issued | $ 136 | $ 136 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 45,000 | 45,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 3,024 | 3,242 |
Commitments and contingencies (see Note 8) | ||
Class A Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 360,000 | 360,000 |
Common stock, shares outstanding | 61,235 | 61,017 |
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 | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 164,464 | $ 157,456 |
Direct operating expenses (including related party expenses of $38,092 and $36,681, respectively) | 66,655 | 63,091 |
Selling, general and administrative expenses (including related party expenses of $3,080 and $2,723, respectively) | 16,903 | 15,561 |
Depreciation and amortization | 2,045 | 2,451 |
Operating income | 78,861 | 76,353 |
Other income (expense): | ||
Interest income | 1,592 | 878 |
Interest expense | (11,922) | (10,643) |
Other components of net periodic benefit cost | (405) | (407) |
Nonoperating expense, Total | (10,735) | (10,172) |
Income from operations before income taxes | 68,126 | 66,181 |
Income tax expense | (21,196) | (25,024) |
Net income | $ 46,930 | $ 41,157 |
Basic [Abstract] | ||
Net income | $ 0.63 | $ 0.55 |
Diluted [Abstract] | ||
Net income | $ 0.62 | $ 0.54 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 74,895 | 75,285 |
Diluted (in shares) | 75,693 | 75,779 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - Continuing Operations [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Direct operating expenses from related party | $ 38,092 | $ 36,681 |
Selling, general and administrative expenses from related party | $ 3,080 | $ 2,723 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net income | $ 46,930 | $ 41,157 |
Amounts reclassified from accumulated other comprehensive loss: | ||
Amortization of net actuarial loss included in net periodic benefit cost | 119 | 149 |
Amortization of net prior service credit included in net periodic benefit cost | (2) | (3) |
Settlement gain | (8) | 0 |
Other comprehensive income before income taxes | 109 | 146 |
Income tax expense related to items of other comprehensive income | (32) | (61) |
Other comprehensive income | 77 | 85 |
Comprehensive income | $ 47,007 | $ 41,242 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net Income | $ 46,930 | $ 41,157 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,045 | 2,451 |
Amortization of deferred financing costs | 751 | 751 |
Share-based compensation expense | 3,676 | 2,921 |
Provision for doubtful accounts | (6) | 74 |
Change in assets and liabilities: | ||
Accounts receivable, net | 1,144 | (769) |
Related party receivables, net | 9,755 | 10,066 |
Prepaid expenses and other assets | 1,095 | 1,517 |
Accounts payable | (1,159) | (651) |
Related party payables, including payable to MSG | 373 | (450) |
Prepaid/payable for income taxes | 5,408 | 3,889 |
Accrued and other liabilities | (11,311) | (8,151) |
Deferred revenue | (168) | 283 |
Deferred income taxes | 4,445 | (669) |
Net cash provided by operating activities | 62,978 | 52,419 |
Cash flows from investing activities: | ||
Capital expenditures | (830) | (484) |
Net cash used in investing activities | (830) | (484) |
Cash flows from financing activities: | ||
Principal repayments on Term Loan Facility (see Note 7) | (93,750) | (18,750) |
Taxes paid in lieu of shares issued for share-based compensation | (3,658) | (1,324) |
Net cash used in financing activities | (97,408) | (20,074) |
Net increase (decrease) in cash and cash equivalents | (35,260) | 31,861 |
Cash and cash equivalents at beginning of period | 205,343 | 141,087 |
Cash and cash equivalents at end of period | $ 170,083 | $ 172,948 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity (Deficiency) And Comprehensive Income (Loss) - USD ($) $ in Thousands | Total | Common Stock Issued [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Jun. 30, 2017 | $ (944,207) | $ 779 | $ 6,909 | $ (198,800) | $ (746,539) | $ (6,556) |
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||
Net income | 41,157 | 41,157 | ||||
Other comprehensive income | 85 | 85 | ||||
Comprehensive income | 41,242 | |||||
Share-based compensation expense | 2,921 | 2,921 | ||||
Tax withholding associated with shares issued for share-based compensation | (2,682) | (2,682) | 0 | 0 | ||
Shares issued upon distribution of Restricted Stock Units | 0 | (7,148) | 10,869 | (3,721) | ||
Balance at Sep. 30, 2017 | (902,726) | 779 | 0 | (187,931) | (709,103) | (6,471) |
Balance at Jun. 30, 2018 | (657,742) | 779 | 4,067 | (195,881) | (460,007) | (6,700) |
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||
Net income | 46,930 | 46,930 | ||||
Other comprehensive income | 77 | 77 | ||||
Comprehensive income | 47,007 | |||||
Share-based compensation expense | 3,676 | 3,676 | ||||
Tax withholding associated with shares issued for share-based compensation | (3,537) | (3,537) | ||||
Shares issued upon distribution of Restricted Stock Units | 0 | (4,206) | 13,167 | (8,961) | ||
Balance at Sep. 30, 2018 | (610,224) | $ 779 | $ 0 | $ (182,714) | (421,666) | $ (6,623) |
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||
Cumulative effect of adoption of ASC 606 | $ 372 | $ 372 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2018 | |
Description of Business And Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | 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+. On September 30, 2015, the Company distributed to its stockholders all of the outstanding common stock of The Madison Square Garden Company (“MSG”) (the “Distribution”). Following the Distribution, the Company no longer consolidates the financial results of MSG for purposes of its own financial reporting. 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. Unaudited Interim Financial Statements The accompanying interim consolidated unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X, and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 . The financial statements as of September 30, 2018 and for the three months ended September 30, 2018 and 2017 presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results that might be expected for future interim periods or for the full year. |
Accounting Policies
Accounting Policies | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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 GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amount of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters, and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the subsequent ASUs that amended and/or clarified the application of ASU No. 2014-09 (collectively, “Topic 606”) on July 1, 2018 (“Adoption Date”). The Company applied the modified retrospective approach for all contracts not completed as of the Adoption Date, and as a result, recorded a decrease to the opening accumulated deficit of $372 , net of tax. The reported results as of and for the three months ended September 30, 2018 reflect the application of Topic 606, while the reported results for prior periods have not been adjusted to reflect Topic 606, and continue to be presented under the prior revenue recognition accounting guidance. The amount by which each financial statement line item has been affected in the current reporting period by the application of Topic 606 compared to historical policies is not material, therefore, comparative disclosures have been omitted. The adoption of Topic 606 did not result in significant changes in the way the Company records revenues. However, as a result of adopting Topic 606, there are certain components of the Company’s revenues where Topic 606 generally results in different recognition of revenue compared to the Company’s historical policies. The following table provides changes to each applicable opening balance on the Company’s consolidated balance sheet resulting from the adoption of Topic 606: June 30, Impact of Adoption July 1, Current assets $ 338,442 $ 585 $ 339,027 Total assets 849,612 760 850,372 Current liabilities 111,216 — 111,216 Total liabilities 1,507,354 388 1,507,742 In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which amends Accounting Standards Codification (“ASC”) Topic 230, Statement of Cash Flows to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows by adding or clarifying guidance on various cash flow issues. This standard was adopted by the Company in the first quarter of fiscal year 2019, and was applied retrospectively. The adoption of this guidance did not have an impact on the Company ’ s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which will effect various areas of accounting including, but not limited to, goodwill and consolidation. This standard was adopted by the Company in the first quarter of fiscal year 2019, and was applied prospectively. The adoption of this guidance did not have an impact on the Company’ s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the measurement of goodwill impairment by eliminating the requirement of performing a hypothetical purchase price allocation. Instead, impairment will be measured using the difference between the carrying amount and fair value of the reporting unit. The amended guidance also eliminates the requirement for any reporting unit with a zero or a negative carrying amount to perform a qualitative assessment and will require disclosure of the amount of goodwill allocated to each reporting unit with a zero or a negative carrying amount of net assets. This standard was early adopted by the Company in the first quarter of fiscal year 2019, and was applied prospectively. Based on the Company’s most recent annual goodwill impairment test completed in the first quarter of fiscal year 2019, the adoption of this guidance did not have an impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The standard is to be applied prospectively to an award modified on or after the adoption date. This standard was adopted by the Company in the first quarter of fiscal year 2019, and will be applied to any future changes to the terms and conditions of stock-based payment awards should they occur. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 , Leases (Topic 842) , and subsequent ASUs that amended and/or clarified the application of ASU No. 2016-02, which supersedes the current guidance in ASC Topic 840, Leases . This ASU requires the recognition of lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The amended guidance also requires additional quantitative and qualitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This standard will be effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted, and the modified retrospective approach required. The Company is currently evaluating the impact this standard will have on its 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 first quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied retroactively to all periods presented. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 3 . 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 revenue recognition policies that describe the nature, amount, timing and uncertainty associated with each major source of revenue from contracts with customers are summarized below. 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 period ended September 30, 2018 . 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, however, 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 to advertisers during its programming, and generally 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. 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 the guaranteed viewer ratings are not met, 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. Given that the Company’s advertising revenue is largely derived from the sale of inventory in its live professional sports programming, a disproportionate share of this revenue has historically been earned in the Company’s second and third fiscal quarters. Principal versus Agent Revenue Recognition The Company has an advertising sales representation agreement with MSG that provides for MSG to act as its advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission. 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 Topic 606 requires 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 September 30, 2018 . However, the guidance provides certain practical expedients that allow companies to omit this disclosure requirement for (i) sales-based or usage-based royalty arrangements, (ii) contracts with an original expected length of one year or less, (iii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and (iv) variable consideration related to a wholly unsatisfied performance obligation. 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. As of September 30, 2018 , other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to remaining performance obligations under these contracts was approximately $15,100 to be recognized over the next five years. 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 as required by Topic 606. 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. As noted above, the primary source of the Company’s deferred revenue relates to the Company not meeting viewer rating guarantees on advertising sales arrangements. The following table provides information about current contract balances from contracts with customers: September 30, June 30, Accounts receivable (including advertising receivable included in related party receivables, net) $ 112,771 $ 125,982 Contract asset, short-term (included in other current assets) 859 — Contract asset, long-term (included in other assets) 41 — Deferred revenue, short-term 4,458 4,626 Deferred revenue, long-term (included in other liabilities) 236 — The amount of revenue recognized for the three months ended September 30, 2018 related to deferred revenue (contract liability) recorded at the Adoption Date was not material to the consolidated financial statements. |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 3 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Common Share | Computation of Earnings per Common Share Basic earnings per common share (“EPS”) is based upon net income 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 restricted stock units (“RSUs”) and exercise of stock options only in the periods in which such effect would have been dilutive. The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS: Three Months Ended September 30, 2018 2017 Weighted-average number of shares for basic EPS 74,895 75,285 Dilutive effect of shares issuable under share-based compensation plans 798 494 Weighted-average number of shares for diluted EPS 75,693 75,779 Anti-dilutive shares 573 157 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Amortizable Intangible Assets During the first quarter of fiscal year 2019 , 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: September 30, 2018 June 30, Affiliate relationships $ 83,044 $ 83,044 Less accumulated amortization (46,706 ) (45,841 ) $ 36,338 $ 37,203 Affiliate relationships have an estimated useful life of 24 years. Amortization expense for intangible assets was $865 for the three months ended September 30, 2018 and 2017 . |
Property and Equipment
Property and Equipment | 3 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of September 30, 2018 and June 30, 2018 , property and equipment consisted of the following assets: September 30, June 30, Equipment $ 36,668 $ 36,027 Furniture and fixtures 1,730 1,728 Leasehold improvements 19,320 19,297 Construction in progress 891 727 58,609 57,779 Less accumulated depreciation and amortization (48,930 ) (47,750 ) $ 9,679 $ 10,029 Depreciation and amortization expense on property and equipment was $1,180 and $1,586 for the three months ended September 30, 2018 and 2017 , respectively. |
Debt
Debt | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On September 28, 2015, 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, MSGN Eden, LLC, an indirect subsidiary of the Company and the general partner of MSGN L.P., Regional MSGN Holdings LLC, a direct subsidiary of the Company and the limited partner of MSGN L.P. (collectively with MSGN Eden, LLC, the “Holdings Entities”), and certain subsidiaries of MSGN L.P. entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders. The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (a) an initial $1,550,000 term loan facility (the “Term Loan Facility”) and (b) a $250,000 revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. In connection with the Distribution, $1,450,000 of the proceeds from the Term Loan Facility was contributed to MSG immediately following the closing of the Senior Secured Credit Facilities. Up to $35,000 of the Revolving Credit Facility is available for the issuance of letters of credit. Subject to the satisfaction of certain conditions and limitations, the Credit Agreement allows for the addition of incremental term and/or revolving loan commitments and incremental term and/or revolving loans. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of MSGN L.P. may be either (a) base rate, representing the higher of: (i) the New York Fed Bank Rate plus 0.50% ; (ii) the U.S. Prime Rate; or (iii) the one-month London Interbank Offered Rate, or LIBOR, plus 1.00% (the “Base Rate”), plus an additional rate ranging from 0.50% to 1.25% per annum (determined based on a total leverage ratio), or (b) a Eurodollar rate (the “Eurodollar Rate”) plus an additional rate ranging from 1.50% to 2.25% per annum (determined based on a total leverage ratio), provided that for the period until the delivery of the compliance certificate for the period ending March 31, 2016, the additional rate used in calculating both floating rates was (i) 1.00% per annum for borrowings bearing interest at the Base Rate, and (ii) 2.00% per annum for borrowings bearing interest at the Eurodollar Rate. Upon a payment default in respect of principal, interest or other amounts due and payable under the Credit Agreement or related loan documents, default interest will accrue on all overdue amounts at an additional rate of 2.00% per annum. The Credit Agreement requires that MSGN L.P. pay a commitment fee of 0.30% in respect of the average daily unused commitments, as well as fronting fees, to banks that issue letters of credit pursuant to the Revolving Credit Facility. The Credit Agreement generally requires the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis to comply with a maximum total leverage ratio of 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. As of September 30, 2018 , the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis were in compliance with the financial covenants of the Credit Agreement. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of September 30, 2018 , there were no letters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of $250,000 . For the three months ended September 30, 2018, the Company made principal repayments of $93,750 , including a voluntary payment of $75,000 . The Company has made principal payments aggregating $447,500 through September 30, 2018 . The Term Loan Facility amortizes quarterly in accordance with its terms through June 30, 2020 with a final maturity date on September 28, 2020 . As of September 30, 2018 , the principal repayments required under the Term Loan Facility are as follows: Remainder of fiscal year ending June 30, 2019 $ 56,250 Fiscal year ending June 30, 2020 114,375 Fiscal year ending June 30, 2021 931,875 $ 1,102,500 All obligations under the Credit Agreement are guaranteed by the Holdings Entities and MSGN L.P.’s existing and future direct and indirect domestic subsidiaries that are not designated as excluded subsidiaries or unrestricted subsidiaries (the “Subsidiary Guarantors,” and together with the Holdings Entities, the “Guarantors”). All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain assets of MSGN L.P. and each Guarantor (collectively, “Collateral”), including, but not limited to, a pledge of the equity interests in MSGN L.P. held directly by the Holdings Entities and the equity interests in each Subsidiary Guarantor held directly or indirectly by MSGN L.P. Subject to customary notice and minimum amount conditions, MSGN L.P. may voluntarily prepay outstanding loans under the Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurodollar loans). MSGN L.P. is required to make mandatory prepayments in certain circumstances, including without limitation from the net cash proceeds of certain sales of assets (including Collateral) or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. In addition to the financial covenants discussed above, the Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative covenants, and events of default. The Credit Agreement contains certain restrictions on the ability of the Holdings Entities and MSGN L.P. and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Credit Agreement, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) changing their lines of business; (vi) engaging in certain transactions with affiliates; (vii) amending specified material agreements; (viii) merging or consolidating; (ix) making certain dispositions; and (x) entering into agreements that restrict the granting of liens. The Holdings Entities are also subject to customary passive holding company covenants. The Company is amortizing its deferred financing costs on a straight-line basis over the five-year term of the Senior Secured Credit Facilities which approximates the effective interest method. The following table summarizes the presentation of the Term Loan Facility and the related deferred financing costs in the accompanying consolidated balance sheets as of September 30, 2018 and June 30, 2018 : Term Loan Facility Deferred Financing Costs Net September 30, 2018 Current portion of long-term debt $ 75,000 $ (2,586 ) $ 72,414 Long-term debt, net of current portion 1,027,500 (2,586 ) 1,024,914 Total $ 1,102,500 $ (5,172 ) $ 1,097,328 June 30, 2018 Current portion of long-term debt $ 75,000 $ (2,586 ) $ 72,414 Long-term debt, net of current portion 1,121,250 (3,233 ) 1,118,017 Total $ 1,196,250 $ (5,819 ) $ 1,190,431 In addition, the Company has deferred financing costs related to the Revolving Credit Facility recorded in the accompanying consolidated balance sheets as summarized in the following table: September 30, 2018 June 30, 2018 Other current assets $ 417 $ 417 Other assets 417 521 The Company made interest payments under the Credit Agreement of $11,122 and $9,857 during the three months ended September 30, 2018 and 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Commitments As more fully described in Notes 8 and 9 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 , the Company’s contractual obligations not reflected on the balance sheet consist primarily of its obligations under media rights agreements and, to a lesser extent, long-term noncancelable operating lease agreements. In addition, see Note 7 for the principal repayments required under the Company’s Term Loan Facility. 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 | 3 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 Assets: Money market accounts $ 16,483 $ — $ — $ 16,483 Time deposits 149,028 — — 149,028 Total assets measured at fair value $ 165,511 $ — $ — $ 165,511 June 30, 2018 Assets: Money market accounts $ 20,398 $ — $ — $ 20,398 Time deposits 184,945 — — 184,945 Total assets measured at fair value $ 205,343 $ — $ — $ 205,343 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 $ 1,091,000 as of September 30, 2018 . The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted prices of such securities for which fair value can be derived from inputs that are readily observable. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 3 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans And Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan As more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 , the Company sponsors (i) a non-contributory, qualified defined benefit pension plan covering certain of its union employees, (ii) an unfunded non-contributory, non-qualified frozen excess cash balance plan covering certain employees who participated in an underlying qualified 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 (collectively the “Pension Plans”). 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”). Components of net periodic benefit cost for the three months ended September 30, 2018 and 2017 are as follows: Pension Plans Postretirement Plan Three Months Ended Three Months Ended September 30, September 30, 2018 2017 2018 2017 Service cost $ 111 $ 128 $ 18 $ 17 Other components of net periodic benefit cost: Interest cost 402 358 38 30 Expected return on plan assets (144 ) (127 ) — — Recognized actuarial loss (a) 119 149 — — Amortization of unrecognized prior service credit (a) — — (2 ) (3 ) Settlement gain (a) (8 ) — — — Net periodic benefit cost $ 480 $ 508 $ 54 $ 44 (a) Reflects amounts reclassified from accumulated other comprehensive loss to other components of net periodic benefit cost in the accompanying consolidated statements of operations. In addition, as more fully described in Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 , 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”). Expenses related to the Savings Plans included in the accompanying consolidated statements of operations were $229 and $213 for the three months ended September 30, 2018 and 2017 , respectively. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation See Note 13 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2018 for more information regarding (i) the MSG Networks Inc. 2010 Employee Stock Plan, as amended (the “Employee Stock Plan”), and (ii) the MSG Networks Inc. 2010 Stock Plan For Non-Employee Directors, as amended (the “Non-Employee Director Plan”). Share-based compensation expense, presented within selling, general and administrative expenses and direct operating expenses, was $3,676 and $2,921 for the three months ended September 30, 2018 and 2017 , respectively. Non-Qualified Stock Options (“NQSOs”) Award Activity The following table summarizes activity relating to holders of the Company’s NQSOs for the three months ended September 30, 2018 : 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, 2018 961 961 $ 19.49 6.14 $ 8,567 Granted 316 316 25.05 Balance as of September 30, 2018 1,277 1,277 $ 20.87 6.27 12,596 Exercisable as of September 30, 2018 498 — $ 18.89 5.73 $ 3,444 During the three months ended September 30, 2018 , the Company granted 632 NQSOs, of which 50% are subject to three-year ratable vesting and the remaining 50% are subject to three-year cliff vesting and the achievement of certain Company performance criteria. These NQSOs have an expiration period of 7.5 years. The Company calculated the fair value of these NQSOs on the date of grant using the Black-Scholes option pricing model, which resulted in a grant date fair value of $7.60 per NQSO. The following were the key assumptions used to calculate the fair value of this award: Risk-free interest rate 2.76 % Expected term 5.25 years Expected volatility 27.44 % 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, par value $0.01 per share (“Class A Common Stock”) at September 30, 2018 and June 30, 2018 , as applicable. Restricted Share Units Award Activity The following table summarizes activity relating to holders of the Company’s RSUs for the three months ended September 30, 2018 : Number of Nonperformance Vesting RSUs Performance Based Vesting RSUs Weighted-Average Fair Value Per Share At Date of Grant Unvested award balance as of June 30, 2018 376 779 $ 20.46 Granted 94 332 25.04 Vested (76 ) (285 ) 20.26 Unvested award balance as of September 30, 2018 394 826 22.07 Nonperformance based vesting RSUs granted under the Employee Stock Plan during the three months ended September 30, 2018 are subject to three-year ratable vesting. Performance based vesting RSUs granted under the Employee Stock Plan during the three months ended September 30, 2018 included 118 RSUs that are subject to three-year ratable vesting, and 214 RSUs subject to three-year cliff vesting. 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, in cash. The fair value of RSUs that vested during the three months ended September 30, 2018 was $8,917 . 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, 144 of these RSUs, with an aggregate value of $3,537 were retained by the Company and the taxes paid during the three months ended September 30, 2018 are reflected as a financing activity in the accompanying consolidated statement of cash flows. |
Stock Repurchase Program (Notes
Stock Repurchase Program (Notes) | 3 Months Ended |
Sep. 30, 2018 | |
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. Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. As of September 30, 2018, the Company had $136,165 of availability remaining under its stock repurchase authorization. The Company did not repurchase shares during the three months ended September 30, 2018 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of September 30, 2018 , members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group (collectively, the “Dolan Family Group”), collectively beneficially own all of the Company’s outstanding Class B common stock, par value $ 0.01 per share (“Class B Common Stock”) and own approximately 3.2% of the Company’s outstanding Class A Common Stock (inclusive of options exercisable within 60 days of the date hereof). Such shares of the Company’s Class A Common Stock and Class B Common Stock, collectively, represent approximately 69.9% of the aggregate voting power of the Company’s outstanding common stock. The Dolan Family Group also controls MSG and AMC Networks Inc. (“AMC Networks”). On June 16, 2016, the Company entered into an arrangement with the Dolan Family Office, LLC (“DFO”), MSG, and AMC Networks providing for the sharing of certain expenses associated with executive office space which is available to Charles F. Dolan (a director of the Company and MSG, and the Executive Chairman and a director of AMC Networks), James L. Dolan (the Executive Chairman and a director of the Company, the Executive Chairman, Chief Executive Officer, and a director of MSG, and a director of AMC Networks), and the DFO, which is controlled by Charles F. Dolan. Beginning in June 2016, the Company agreed to share certain executive support costs, including office space, executive assistants, security and transportation costs for (i) the Company’s Executive Chairman with MSG and (ii) the Company’s Vice Chairman with MSG and AMC Networks. The Company and MSG are also party to an aircraft time sharing agreement, pursuant to which MSG has agreed from time to time to make its aircraft available to the Company for lease on a “time sharing” basis. Additionally, the Company, MSG and AMC Networks have agreed on an allocation of the costs of certain other aircraft, including helicopter, use by shared executives. In connection with the Distribution, the Company entered into various agreements with MSG, including media rights agreements covering the New York Knicks (the “Knicks”) and the New York Rangers (the “Rangers”) games, an advertising sales representation agreement, a trademark license agreement, a tax disaffiliation agreement, a transition services agreement (“TSA”), and certain other arrangements. The TSA expired on September 30, 2017. The Company and MSG entered into a new services agreement (“Services Agreement”) effective July 1, 2017, which replaced the TSA and provided for each party to furnish substantially the same services, as well as the executive support services described above, in exchange for service fees. In connection with the expiration of the Services Agreement on June 30, 2018, the Company entered into an interim agreement with MSG, pursuant to which each party provides the other with the same services on the same terms. The Company expects to enter into a new services agreement this calendar year which will be retroactive to July 1, 2018. The Company has 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 the Knicks and the Rangers, effective as of July 1, 2015, provide the Company with exclusive media rights to team games in their local markets. Rights fees included in the accompanying consolidated statements of operations for the three months ended September 30, 2018 and 2017 were $36,558 and $35,152 , 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 three months ended September 30, 2018 and 2017 were $1,520 and $1,499 , respectively. Commission The Company’s advertising sales representation agreement with MSG, which has a term through June 30, 2022 , provides for MSG to act as the Company’s advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission. The amounts incurred by the Company for the three months ended September 30, 2018 and 2017 were $407 and $427 , respectively. Other operating expenses The Company and its related parties enter into transactions with each other in the ordinary course of business. In addition, the Company outsources certain business functions to MSG. These services currently include information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting, and internal audit. Net amounts incurred by the Company for expenses associated with services provided by MSG, executive office space and certain support costs, and for other related party transactions amounted to $2,687 and $2,326 for the three months ended September 30, 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the enactment of the Tax Cuts and Jobs Act significantly changed the existing U.S. tax laws and included a reduction in the corporate federal tax rate from 35% to 21% effective January 1, 2018. Income tax expense for the three months ended September 30, 2018 of $21,196 differs from the income tax expense derived from applying the statutory federal rate of 21% to pre-tax income due principally to the impact of state and local income taxes (net of federal benefit) of $5,602 . Income tax expense for the three months ended September 30, 2017 of $ 25,024 differs from the income tax expense derived from applying the statutory federal rate of 35% to pre-tax income due principally to the impact of state and local income taxes (net of federal benefit) of $4,516 , partially offset by tax benefits related to the domestic production activities deduction of $1,903 , and other items. The Company made cash income tax payments (net) of $11,343 and $21,805 for the three months ended September 30, 2018 and 2017 , respectively. During the fourth quarter of fiscal year 2017, the Company was notified that the City of New York was initiating a review of the Company’s 2014 and 2015 Unincorporated Business Tax Returns. In August 2018, the Company received a summary notice that the audit has been completed. The audit did not result in a material change to the tax returns. The Company was also notified during the fourth quarter of fiscal year 2017 that the State of New York was commencing an examination of the Company’s New York State income tax returns as filed for the tax years ended December 31, 2013 and 2014. The Company does not expect the examination, when finalized, to result in material changes to the tax returns. 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. The federal and state statute of limitations are currently open with regard to the Company’s 2014 through 2017 and 2013 through 2017 calendar year tax returns, respectively. |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Sep. 30, 2018 | |
Concentration of Risk [Abstract] | |
Concentration Risk Disclosure [Text Block] | Concentrations of Risk Accounts receivable, net on the accompanying consolidated balance sheets as of September 30, 2018 and June 30, 2018 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance: September 30, June 30, Customer A 25 % 24 % Customer B 24 % 24 % Customer C 23 % 23 % Customer D 15 % 15 % Revenues in the accompanying consolidated statements of operations for the three months ended September 30, 2018 and 2017 include amounts from the following individual customers, which accounted for the noted percentages of the total: Three Months Ended September 30, 2018 2017 Customer 1 25 % 26 % Customer 2 25 % 26 % Customer 3 23 % 24 % Customer 4 13 % 11 % The accompanying consolidated balance sheets as of September 30, 2018 and June 30, 2018 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the New Jersey Devils: Reported in September 30, 2018 June 30, Prepaid expenses $ 1,000 $ 3,000 Other current assets 4,000 3,000 Other assets 38,000 39,000 $ 43,000 $ 45,000 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the accounts of MSG Networks Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amount of revenues and expenses. Such estimates include the valuation of accounts receivable, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals, and other liabilities. In addition, estimates are used in revenue recognition, income tax expense, performance and share-based compensation, depreciation and amortization, litigation matters, and other matters. Management believes its use of estimates in the consolidated financial statements to be reasonable. Management evaluates its estimates on an ongoing basis using historical experience and other factors, including the general economic environment and actions it may take in the future. The Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control could be material and would be reflected in the Company’s financial statements in future periods. |
New Accounting Pronouncements | The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and the subsequent ASUs that amended and/or clarified the application of ASU No. 2014-09 (collectively, “Topic 606”) on July 1, 2018 (“Adoption Date”). The Company applied the modified retrospective approach for all contracts not completed as of the Adoption Date, and as a result, recorded a decrease to the opening accumulated deficit of $372 , net of tax. The reported results as of and for the three months ended September 30, 2018 reflect the application of Topic 606, while the reported results for prior periods have not been adjusted to reflect Topic 606, and continue to be presented under the prior revenue recognition accounting guidance. The amount by which each financial statement line item has been affected in the current reporting period by the application of Topic 606 compared to historical policies is not material, therefore, comparative disclosures have been omitted. The adoption of Topic 606 did not result in significant changes in the way the Company records revenues. However, as a result of adopting Topic 606, there are certain components of the Company’s revenues where Topic 606 generally results in different recognition of revenue compared to the Company’s historical policies. The following table provides changes to each applicable opening balance on the Company’s consolidated balance sheet resulting from the adoption of Topic 606: June 30, Impact of Adoption July 1, Current assets $ 338,442 $ 585 $ 339,027 Total assets 849,612 760 850,372 Current liabilities 111,216 — 111,216 Total liabilities 1,507,354 388 1,507,742 In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which amends Accounting Standards Codification (“ASC”) Topic 230, Statement of Cash Flows to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows by adding or clarifying guidance on various cash flow issues. This standard was adopted by the Company in the first quarter of fiscal year 2019, and was applied retrospectively. The adoption of this guidance did not have an impact on the Company ’ s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses, which will effect various areas of accounting including, but not limited to, goodwill and consolidation. This standard was adopted by the Company in the first quarter of fiscal year 2019, and was applied prospectively. The adoption of this guidance did not have an impact on the Company’ s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This standard does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The standard is to be applied prospectively to an award modified on or after the adoption date. This standard was adopted by the Company in the first quarter of fiscal year 2019, and will be applied to any future changes to the terms and conditions of stock-based payment awards should they occur. The adoption of this guidance did not have an impact on the Company’s consolidated financial statements. |
New Accounting Pronouncement, Early Adoption | In January 2017, the FASB issued ASU No. 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which simplifies the measurement of goodwill impairment by eliminating the requirement of performing a hypothetical purchase price allocation. Instead, impairment will be measured using the difference between the carrying amount and fair value of the reporting unit. The amended guidance also eliminates the requirement for any reporting unit with a zero or a negative carrying amount to perform a qualitative assessment and will require disclosure of the amount of goodwill allocated to each reporting unit with a zero or a negative carrying amount of net assets. This standard was early adopted by the Company in the first quarter of fiscal year 2019, and was applied prospectively. Based on the Company’s most recent annual goodwill impairment test completed in the first quarter of fiscal year 2019, the adoption of this guidance did not have an impact on the Company’s consolidated financial statements. |
Recently Issued Acounting Pronouncements Not Yet Adopted [Policy Text Block] | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 , Leases (Topic 842) , and subsequent ASUs that amended and/or clarified the application of ASU No. 2016-02, which supersedes the current guidance in ASC Topic 840, Leases . This ASU requires the recognition of lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The amended guidance also requires additional quantitative and qualitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This standard will be effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted, and the modified retrospective approach required. The Company is currently evaluating the impact this standard will have on its 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 first quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied retroactively to all periods presented. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Accounting Policies Revenue Rec
Accounting Policies Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | The following table provides changes to each applicable opening balance on the Company’s consolidated balance sheet resulting from the adoption of Topic 606: June 30, Impact of Adoption July 1, Current assets $ 338,442 $ 585 $ 339,027 Total assets 849,612 760 850,372 Current liabilities 111,216 — 111,216 Total liabilities 1,507,354 388 1,507,742 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
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: September 30, June 30, Accounts receivable (including advertising receivable included in related party receivables, net) $ 112,771 $ 125,982 Contract asset, short-term (included in other current assets) 859 — Contract asset, long-term (included in other assets) 41 — Deferred revenue, short-term 4,458 4,626 Deferred revenue, long-term (included in other liabilities) 236 — |
Computation of Earnings Per C_2
Computation of Earnings Per Common Share (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted-Average Shares Used in Calculation of Basic and Diluted EPS | The following table presents a reconciliation of the weighted-average number of shares used in the calculations of basic and diluted EPS: Three Months Ended September 30, 2018 2017 Weighted-average number of shares for basic EPS 74,895 75,285 Dilutive effect of shares issuable under share-based compensation plans 798 494 Weighted-average number of shares for diluted EPS 75,693 75,779 Anti-dilutive shares 573 157 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: September 30, 2018 June 30, Affiliate relationships $ 83,044 $ 83,044 Less accumulated amortization (46,706 ) (45,841 ) $ 36,338 $ 37,203 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | As of September 30, 2018 and June 30, 2018 , property and equipment consisted of the following assets: September 30, June 30, Equipment $ 36,668 $ 36,027 Furniture and fixtures 1,730 1,728 Leasehold improvements 19,320 19,297 Construction in progress 891 727 58,609 57,779 Less accumulated depreciation and amortization (48,930 ) (47,750 ) $ 9,679 $ 10,029 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | As of September 30, 2018 , the principal repayments required under the Term Loan Facility are as follows: Remainder of fiscal year ending June 30, 2019 $ 56,250 Fiscal year ending June 30, 2020 114,375 Fiscal year ending June 30, 2021 931,875 $ 1,102,500 |
Schedule of Debt [Table Text Block] | The Company is amortizing its deferred financing costs on a straight-line basis over the five-year term of the Senior Secured Credit Facilities which approximates the effective interest method. The following table summarizes the presentation of the Term Loan Facility and the related deferred financing costs in the accompanying consolidated balance sheets as of September 30, 2018 and June 30, 2018 : Term Loan Facility Deferred Financing Costs Net September 30, 2018 Current portion of long-term debt $ 75,000 $ (2,586 ) $ 72,414 Long-term debt, net of current portion 1,027,500 (2,586 ) 1,024,914 Total $ 1,102,500 $ (5,172 ) $ 1,097,328 June 30, 2018 Current portion of long-term debt $ 75,000 $ (2,586 ) $ 72,414 Long-term debt, net of current portion 1,121,250 (3,233 ) 1,118,017 Total $ 1,196,250 $ (5,819 ) $ 1,190,431 |
Debt Financing Cost [Table Text Block] | In addition, the Company has deferred financing costs related to the Revolving Credit Facility recorded in the accompanying consolidated balance sheets as summarized in the following table: September 30, 2018 June 30, 2018 Other current assets $ 417 $ 417 Other assets 417 521 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 Assets: Money market accounts $ 16,483 $ — $ — $ 16,483 Time deposits 149,028 — — 149,028 Total assets measured at fair value $ 165,511 $ — $ — $ 165,511 June 30, 2018 Assets: Money market accounts $ 20,398 $ — $ — $ 20,398 Time deposits 184,945 — — 184,945 Total assets measured at fair value $ 205,343 $ — $ — $ 205,343 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | Components of net periodic benefit cost for the three months ended September 30, 2018 and 2017 are as follows: Pension Plans Postretirement Plan Three Months Ended Three Months Ended September 30, September 30, 2018 2017 2018 2017 Service cost $ 111 $ 128 $ 18 $ 17 Other components of net periodic benefit cost: Interest cost 402 358 38 30 Expected return on plan assets (144 ) (127 ) — — Recognized actuarial loss (a) 119 149 — — Amortization of unrecognized prior service credit (a) — — (2 ) (3 ) Settlement gain (a) (8 ) — — — Net periodic benefit cost $ 480 $ 508 $ 54 $ 44 (a) Reflects amounts reclassified from accumulated other comprehensive loss to other components of net periodic benefit cost in the accompanying consolidated statements of operations. |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table summarizes activity relating to holders of the Company’s NQSOs for the three months ended September 30, 2018 : 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, 2018 961 961 $ 19.49 6.14 $ 8,567 Granted 316 316 25.05 Balance as of September 30, 2018 1,277 1,277 $ 20.87 6.27 12,596 Exercisable as of September 30, 2018 498 — $ 18.89 5.73 $ 3,444 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following were the key assumptions used to calculate the fair value of this award: Risk-free interest rate 2.76 % Expected term 5.25 years Expected volatility 27.44 % |
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 three months ended September 30, 2018 : Number of Nonperformance Vesting RSUs Performance Based Vesting RSUs Weighted-Average Fair Value Per Share At Date of Grant Unvested award balance as of June 30, 2018 376 779 $ 20.46 Granted 94 332 25.04 Vested (76 ) (285 ) 20.26 Unvested award balance as of September 30, 2018 394 826 22.07 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Concentration of Risk [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Accounts receivable, net on the accompanying consolidated balance sheets as of September 30, 2018 and June 30, 2018 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance: September 30, June 30, Customer A 25 % 24 % Customer B 24 % 24 % Customer C 23 % 23 % Customer D 15 % 15 % Revenues in the accompanying consolidated statements of operations for the three months ended September 30, 2018 and 2017 include amounts from the following individual customers, which accounted for the noted percentages of the total: Three Months Ended September 30, 2018 2017 Customer 1 25 % 26 % Customer 2 25 % 26 % Customer 3 23 % 24 % Customer 4 13 % 11 % The accompanying consolidated balance sheets as of September 30, 2018 and June 30, 2018 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the New Jersey Devils: Reported in September 30, 2018 June 30, Prepaid expenses $ 1,000 $ 3,000 Other current assets 4,000 3,000 Other assets 38,000 39,000 $ 43,000 $ 45,000 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Description of Business And Basis of Presentation [Abstract] | |
Regional Sports and Entertainment Networks | 2 |
Percentage of ownership of MSG business distributed to stockholders | 100.00% |
Number of Reportable Segments | 1 |
Accounting Policies Recently Ad
Accounting Policies Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jul. 01, 2018 | Jun. 30, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of adoption of ASC 606 | $ 372 | ||
Assets, Current | 296,993 | $ 339,027 | $ 338,442 |
Total assets | 806,444 | 850,372 | 849,612 |
Liabilities, Current | 111,342 | 111,216 | 111,216 |
Total Liabilities | 1,416,668 | 1,507,742 | 1,507,354 |
Accounting Standards Update 2014-09 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of adoption of ASC 606 | $ 372 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Assets, Current | 338,442 | ||
Total assets | 849,612 | ||
Liabilities, Current | 111,216 | ||
Total Liabilities | $ 1,507,354 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Assets, Current | 585 | ||
Total assets | 760 | ||
Liabilities, Current | 0 | ||
Total Liabilities | $ 388 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable (including advertising receivable included in related party receivables, net) | $ 112,771 | $ 125,982 |
Contract asset, short-term (included in other current assets) | 859 | 0 |
Contract asset, long-term (included in other assets) | 41 | 0 |
Deferred revenue, short-term | 4,458 | 4,626 |
Deferred revenue, long-term (included in other liabilities | $ 236 | $ 0 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Narrative) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Affiliation Revenue Concentration | 90.00% |
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 | $ 15,100 |
RecognitionPeriodofTransactionPriceAllocatedtoPerformanceObligations | 5 years |
Computation of Earnings Per C_3
Computation of Earnings Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Weighted-average shares for basic EPS (in shares) | 74,895 | 75,285 |
Dilutive effect of shares issuable under share-based compensation plans (in shares) | 798 | 494 |
Weighted-average shares for diluted EPS (in shares) | 75,693 | 75,779 |
Anti-dilutive shares (in shares) | 573 | 157 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Carrying Amount of Goodwill By Reportable Segment) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Line Items] | |
Number of Reportable Segments | 1 |
Impairment of goodwill | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net | $ 36,338 | $ 37,203 | |
Finite-Lived Intangible Asset, Useful Life | 24 years | ||
Finite-Lived Intangible Assets, Amortization Expense | $ 865 | $ 865 | |
Affiliate Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Affiliate Relationships | 83,044 | 83,044 | |
Less accumulated amortization | (46,706) | (45,841) | |
Net | $ 36,338 | $ 37,203 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 58,609 | $ 57,779 |
Less accumulated depreciation and amortization | (48,930) | (47,750) |
Property and equipment, net | 9,679 | 10,029 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 36,668 | 36,027 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,730 | 1,728 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,320 | 19,297 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 891 | $ 727 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 1,180 | $ 1,586 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 24 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 28, 2015 | |
Debt Instrument [Line Items] | ||||
Additional interest Rate when Default | 2.00% | |||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | |||
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 6.00:1.00 from the closing date until September 30, 2016 and a maximum total leverage ratio of 5.50:1.00 from October 1, 2016 until maturity, subject, in each case, to upward adjustment during the continuance of certain events. In addition, there is a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. | |||
Amortization of Deferred Financing Costs | 5 years | |||
Aggregate Repayments of Debt | $ 93,750 | $ 447,500 | ||
Voluntary Debt Repayments | $ 75,000 | |||
Debt Instrument, Maturity Date, Description | The Term Loan Facility amortizes quarterly in accordance with its terms through June 30, 2020 with a final maturity date on September 28, 2020 | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 11,122 | $ 9,857 | ||
Federal Funds Effective Swap Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured revolving credit facility | $ 250,000 | |||
Revolving credit term in years | 5 years | |||
Letters of Credit, maximum capacity | 35,000 | |||
Letters of credit issued and outstanding under the Revolving Credit Facility | $ 0 | 0 | ||
Borrowing capacity | $ 250,000 | $ 250,000 | ||
Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior secured revolving credit facility | 1,550,000 | |||
Revolving credit term in years | 5 years | |||
Cash distributed to stockholder from cash borrowed in connection with spin off | $ 1,450,000 | |||
Minimum [Member] | Eurodollar [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Maximum [Member] | Eurodollar [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
After delivery of Compliance Certificate [Member] | Eurodollar [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 2.00% | |||
After delivery of Compliance Certificate [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Increase (Decrease) | 1.00% |
Debt Schedule of Maturities of
Debt Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,102,500 | $ 1,196,250 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Remainder of fiscal year ending June 30, 2019 | 56,250 | |
Fiscal year ending June 30, 2020 | 114,375 | |
Fiscal year ending June 30, 2021 | 931,875 | |
Long-term Debt, Gross | $ 1,102,500 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||
Amortization of Deferred Financing Costs | 5 years | |
Long-term Debt, Gross | $ 1,102,500 | $ 1,196,250 |
Debt Issuance Costs, Gross | (5,172) | (5,819) |
Debt outstanding, net of deferred financing costs | 1,097,328 | 1,190,431 |
Current portion of long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 75,000 | 75,000 |
Debt Issuance Costs, Gross | (2,586) | (2,586) |
Debt outstanding, net of deferred financing costs | 72,414 | 72,414 |
Long-term debt, net of current portion [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,027,500 | 1,121,250 |
Debt Issuance Costs, Gross | (2,586) | (3,233) |
Debt outstanding, net of deferred financing costs | $ 1,024,914 | $ 1,118,017 |
Debt Financing Costs (Details)
Debt Financing Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Debt Financing Cost [Line Items] | ||
Debt Issuance Costs, Gross | $ 5,172 | $ 5,819 |
Other Current Assets [Member] | ||
Debt Financing Cost [Line Items] | ||
Debt Issuance Costs, Gross | 417 | 417 |
Other Noncurrent Assets [Member] | ||
Debt Financing Cost [Line Items] | ||
Debt Issuance Costs, Gross | $ 417 | $ 521 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 165,511 | $ 205,343 |
Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 165,511 | 205,343 |
Level II [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Long-term Debt, Fair Value | 1,091,000 | |
Level III [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Money market accounts [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 16,483 | 20,398 |
Money market accounts [Member] | Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 16,483 | 20,398 |
Money market accounts [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 accounts [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 | 149,028 | 184,945 |
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 | 149,028 | 184,945 |
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 |
Pension Plans and Other Postr_3
Pension Plans and Other Postretirement Benefit Plan (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plans [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 111 | $ 128 |
Interest cost | 402 | 358 |
Expected return on plan assets | (144) | (127) |
Recognized actuarial loss | 119 | 149 |
Amortization of unrecognized prior service credit | 0 | 0 |
Settlement gain | (8) | 0 |
Net periodic benefit cost | 480 | 508 |
Postretirement Plan [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 18 | 17 |
Interest cost | 38 | 30 |
Expected return on plan assets | 0 | 0 |
Recognized actuarial loss | 0 | 0 |
Amortization of unrecognized prior service credit | (2) | (3) |
Settlement gain | 0 | 0 |
Net periodic benefit cost | 54 | 44 |
Msg Savings Plans [Member] | Continuing Operations [Member] | ||
Defined Contribution Plan [Abstract] | ||
Defined Contribution Plan, Cost | $ 229 | $ 213 |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation | $ 3,676 | $ 2,921 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options, Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Grants in Period | 632 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 3 months 7 days | 6 years 1 month 20 days |
Options, Outstanding, Intrinsic Value | $ 12,596 | $ 8,567 |
Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 8 months 22 days | |
Options, Exercisable, Intrinsic Value | $ 3,444 | |
Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 19.49 | |
Options, Grants in Period, Weighted Average Exercise Price | 25.05 | |
Options, Outstanding, Weighted Average Exercise Price, Ending Balance | 20.87 | $ 19.49 |
Options, Exercisable, Weighted Average Exercise Price | $ 18.89 | |
Non-Performance Vesting | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding, Beginning Balance | 961 | |
Options, Grants in Period | 316 | |
Options, Outstanding, Number, Ending Balance | 1,277 | 961 |
Options, Exercisable, Number | 498 | |
Performance Vesting | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding, Beginning Balance | 961 | |
Options, Grants in Period | 316 | |
Options, Outstanding, Number, Ending Balance | 1,277 | 961 |
Options, Exercisable, Number | 0 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation - Stock Options - Narrative (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
Share-Based Compensation - Stock Options (Narrative) [Line Items] | ||
Options, Grants in Period, Gross | 632 | |
Share-based Payment Award, Expiration Period | 7 years 6 months | |
Stock Options Weighted Average Grant Date Fair Value | $ 7.60 | |
Stock Options | Ratable Vesting [Member] | ||
Share-Based Compensation - Stock Options (Narrative) [Line Items] | ||
Percent of Awards Type | 50.00% | |
Award Vesting Period | 3 years | |
Stock Options | Cliff Vesting [Member] | ||
Share-Based Compensation - Stock Options (Narrative) [Line Items] | ||
Percent of Awards Type | 50.00% | |
Award Vesting Period | 3 years | |
Class A Common Stock [Member] | ||
Share-Based Compensation - Stock Options (Narrative) [Line Items] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Share-Based Compensation Shar_2
Share-Based Compensation Share-Based Compensation (Assumptions) (Details) | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk Free Interest Rate | 2.76% |
Expected Term | 5 years 3 months |
Expected Volatility Rate | 27.44% |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) shares in Thousands | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Weighted-Average Fair Value Per Share at Date of Grant - RSUs (in dollars per share): | |
Unvested award balance (beginning balance) | $ / shares | $ 20.46 |
Granted | $ / shares | 25.04 |
Vested | $ / shares | 20.26 |
Unvested award balance (ending balance) | $ / shares | $ 22.07 |
Non-Performance Vesting | |
Unvested award (in shares): | |
Unvested award balance (beginning balance) | 376 |
Granted | 94 |
Vested | (76) |
Unvested award balance (ending balance) | 394 |
Performance Vesting | |
Unvested award (in shares): | |
Unvested award balance (beginning balance) | 779 |
Granted | 332 |
Vested | (285) |
Unvested award balance (ending balance) | 826 |
Share-Based Compensation Shar_3
Share-Based Compensation Share-Based Compensation - Restricted Stock Units (Narrative) (Details) - Restricted Stock Units (RSUs) shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($)shares | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
RSUs vested in period, fair value | $ | $ 8,917 |
RSUs shares witheld for tax withholding for share-based compensation | 144 |
Value Of Equity Instruments Surrendered By Employees | $ | $ 3,537 |
Non-Performance Vesting | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
RSUs Granted | 94 |
Performance Vesting | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
RSUs Granted | 332 |
Ratable Vesting [Member] | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
Award Vesting Period | 3 years |
Cliff Vesting [Member] | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
Award Vesting Period | 3 years |
Employee Stock Plan [Member] | Ratable Vesting [Member] | Performance Vesting | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
RSUs Granted | 118 |
Employee Stock Plan [Member] | Cliff Vesting [Member] | Performance Vesting | |
Share-Based Compensation - Restricted Stock Units (Narrative) [Line Items] | |
RSUs Granted | 214 |
Stock Repurchase Program Stock
Stock Repurchase Program Stock Repurchase Program (Details) - Class A Common Stock [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 07, 2017 |
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 150,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 136,165 |
Related Party Transactions (Own
Related Party Transactions (Ownership Percentage) (Details) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 |
Related Party Ownership Percentage [Line Items] | ||
Aggregate Voting Power Held By Related Party | 69.90% | |
Class A Common Stock [Member] | ||
Related Party Ownership Percentage [Line Items] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Percentage of Common Stock Owned by Related Party | 3.20% | |
Common Class B [Member] | ||
Related Party Ownership Percentage [Line Items] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Percentage of Common Stock Owned by Related Party | 100.00% |
Related Party Transactions (Tra
Related Party Transactions (Transactions by Type) (Details) - Continuing Operations [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Expenses [Abstract] | ||
Rights fees | $ 36,558 | $ 35,152 |
Origination, master control and technical services | 1,520 | 1,499 |
Commission | 407 | 427 |
Other operating expenses | $ 2,687 | $ 2,326 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Income tax expense | $ (21,196) | $ (25,024) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (5,602) | (4,516) |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | 1,903 | |
Income Taxes Paid | $ 11,343 | $ 21,805 |
Concentration of Risk (Details)
Concentration of Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Concentration Risk [Line Items] | |||
Customer Concentration In Prepaid Expenses | $ 1,000 | $ 3,000 | |
Customer Concentration In Other Current Assets | 4,000 | 3,000 | |
Customer Concentration In Other Assets | 38,000 | 39,000 | |
Customer Concentration | $ 43,000 | $ 45,000 | |
Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration at period end, AR | 25.00% | 24.00% | |
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration at period end, AR | 24.00% | 24.00% | |
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration at period end, AR | 23.00% | 23.00% | |
Customer D [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration at period end, AR | 15.00% | 15.00% | |
Customer 1 [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage Revenues | 25.00% | 26.00% | |
Customer 2 [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage Revenues | 25.00% | 26.00% | |
Customer 3 [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage Revenues | 23.00% | 24.00% | |
Customer 4 [Member] | Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage Revenues | 13.00% | 11.00% |