Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --06-30 | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-34434 | |
Entity Registrant Name | MSG Networks Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0624498 | |
Amendment Flag | false | |
Entity Address, Street Address | 11 Pennsylvania Plaza | |
Entity Address, City | New York | |
Entity Address, State | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 212 | |
Local Phone Number | 465-6400 | |
Title of each class | Class A Common Stock | |
Trading Symbol(s) | MSGN | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001469372 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 43,459,880 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 13,588,555 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 324,067 | $ 196,837 |
Accounts receivable, net | 86,455 | 105,549 |
Related party receivables, net | 25,659 | 14,190 |
Prepaid income taxes | 1,500 | 461 |
Prepaid expenses | 8,385 | 11,063 |
Other current assets | 8,742 | 4,541 |
Total current assets | 454,808 | 332,641 |
Property and equipment, net | 7,258 | 8,758 |
Amortizable intangible assets, net | 27,688 | 30,283 |
Goodwill | 424,508 | 424,508 |
Operating lease right-of-use assets | 13,286 | 17,153 |
Other assets | 44,209 | 37,460 |
Total assets | 971,757 | 850,803 |
Current Liabilities: | ||
Accounts payable | 235 | 2,115 |
Related party payables | 6,210 | 1,472 |
Current portion of long-term debt | 48,239 | 37,229 |
Current portion of operating lease liabilities | 5,125 | 5,492 |
Income taxes payable | 3,116 | 641 |
Accrued liabilities: | ||
Employee related costs | 15,652 | 14,187 |
Other accrued liabilities | 17,434 | 10,116 |
Deferred revenue | 572 | 2,753 |
Total current liabilities | 96,583 | 74,005 |
Long-term debt, net of current portion | 1,007,598 | 1,043,780 |
Long-term operating lease liabilities | 9,960 | 13,780 |
Defined benefit and other postretirement obligations | 25,150 | 25,860 |
Other employee related costs | 5,538 | 5,149 |
Other liabilities | 1,483 | 1,536 |
Deferred tax liability | 244,321 | 239,542 |
Total liabilities | 1,390,633 | 1,403,652 |
Commitments and contingencies (see Note 9) | ||
Stockholders' Deficiency: | ||
Preferred stock, par value $0.01, 45,000 shares authorized; none outstanding | 0 | 0 |
Additional paid-in capital | 17,490 | 12,731 |
Treasury stock, at cost, 20,799 and 21,137 shares as of March 31, 2021 and June 30, 2020, respectively | (450,053) | (457,363) |
Retained earnings (accumulated deficit) | 20,845 | (100,792) |
Accumulated other comprehensive loss | (7,937) | (8,204) |
Total stockholders' deficiency | (418,876) | (552,849) |
Total liabilities and stockholders' deficiency | 971,757 | 850,803 |
Class A Common Stock [Member] | ||
Stockholders' Deficiency: | ||
Common stock, value issued | 643 | 643 |
Class B Common Stock [Member] | ||
Stockholders' Deficiency: | ||
Common stock, value issued | $ 136 | $ 136 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 0 | 45,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 20,799 | 21,137 |
Class A Common Stock [Member] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 360,000 | 360,000 |
Common stock, shares outstanding | 43,460 | 43,122 |
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 | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues (including related party revenues of $180 and $0 for each of the three and nine months ended March 31, 2021 and 2020, respectively) | $ 177,853 | $ 184,972 | $ 481,455 | $ 533,683 |
Direct operating expenses (including related party expenses of $36,692 and $39,876 for the three months ended March 31, 2021 and 2020, respectively, and $112,852 and $118,763 for the nine months ended March 31, 2021 and 2020, respectively) | 74,392 | 83,762 | 196,497 | 236,487 |
Selling, general and administrative expenses (including related party expenses of $9,468 and $8,381 for the three months ended March 31, 2021 and 2020, respectively, and $16,716 and $20,398 for the nine months ended March 31, 2021 and 2020, respectively) | 31,743 | 25,831 | 75,962 | 80,173 |
Depreciation and amortization | 1,833 | 1,716 | 5,463 | 5,123 |
Operating income | 69,885 | 73,663 | 203,533 | 211,900 |
Other income (expense): | ||||
Interest income | 481 | 900 | 1,446 | 3,734 |
Interest expense | (4,958) | (9,419) | (15,320) | (30,168) |
Debt refinancing expense | 0 | 0 | 0 | (2,764) |
Other components of net periodic benefit cost | (207) | (258) | (620) | (774) |
Miscellaneous income | 1,252 | 1,252 | ||
Nonoperating expense, Total | (3,432) | (8,777) | (13,242) | (29,972) |
Income from operations before income taxes | 66,453 | 64,886 | 190,291 | 181,928 |
Income tax expense | (20,870) | (18,616) | (68,174) | (52,627) |
Net income | $ 45,583 | $ 46,270 | $ 122,117 | $ 129,301 |
Earnings per share: | ||||
Basic | $ 0.79 | $ 0.77 | $ 2.13 | $ 1.98 |
Diluted | $ 0.78 | $ 0.77 | $ 2.11 | $ 1.97 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 57,505 | 60,011 | 57,358 | 65,194 |
Diluted (in shares) | 58,235 | 60,315 | 57,775 | 65,553 |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statement of Operations Parenthetical [Abstract] | ||||
Revenue from Related Parties | $ 180 | $ 0 | $ 180 | $ 0 |
Related Party Transaction Direct Operating Expenses From Transactions With Related Party | 36,692 | 39,876 | 112,852 | 118,763 |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 9,468 | $ 8,381 | $ 16,716 | $ 20,398 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 45,583 | $ 46,270 | $ 122,117 | $ 129,301 |
Other comprehensive income (loss) before income taxes: | ||||
Amortization of net actuarial loss included in net periodic benefit cost | 126 | 134 | 378 | 402 |
Amortization of prior service credit included in net periodic benefit cost | 0 | (1) | 0 | (3) |
Amounts reclassified from accumulated other comprehensive loss: | ||||
Other comprehensive income before income taxes | 126 | 133 | 378 | 399 |
Income tax expense related to items of other comprehensive income | (37) | (37) | (111) | (112) |
Other comprehensive income | 89 | 96 | 267 | 287 |
Comprehensive income | $ 45,672 | $ 46,366 | $ 122,384 | $ 129,588 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 122,117 | $ 129,301 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,463 | 5,123 |
Amortization of deferred financing costs | 1,210 | 1,591 |
Debt refinancing expense | 0 | 455 |
Share-based compensation expense | 14,217 | 13,852 |
Provision for doubtful accounts | (277) | 45 |
Change in assets and liabilities: | ||
Accounts receivable, net | 18,760 | (223) |
Related party receivables, net | (11,540) | (12,622) |
Prepaid expenses and other assets | (8,529) | 663 |
Accounts payable | (339) | 364 |
Related party payables, including payable to MSGS and MSGE | 4,738 | 747 |
Prepaid/payable for income taxes | 1,436 | 6,141 |
Accrued and other liabilities | 8,538 | (4,692) |
Deferred revenue | (2,181) | 861 |
Deferred income taxes | 4,870 | (1,635) |
Net cash provided by operating activities | 158,483 | 139,971 |
Cash flows from investing activities: | ||
Capital expenditures | (2,980) | (2,211) |
Net cash used in investing activities | (2,980) | (2,211) |
Cash flows from financing activities: | ||
Principal repayments on term loan facilities (see Note 7) | (26,125) | (28,125) |
Proceeds from senior secured credit facilities (see Note 7) | 0 | 100,000 |
Payments for financing costs | 0 | (3,969) |
Share repurchase costs | 0 | (289,557) |
Taxes paid in lieu of shares issued for share-based compensation | (2,148) | (4,235) |
Net cash used in financing activities | (28,273) | (225,886) |
Net increase (decrease) in cash and cash equivalents | 127,230 | (88,126) |
Cash and cash equivalents at beginning of period | 196,837 | 226,423 |
Cash and cash equivalents at end of period | $ 324,067 | $ 138,297 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity (Deficiency) And Comprehensive Income (Loss) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock [Member] | Common Stock Issued | Additional Paid-In Capital | Treasury Stock | Treasury StockClass A Common Stock [Member] | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Total stockholders' deficiency at Jun. 30, 2019 | $ (458,768) | $ 779 | $ 9,916 | $ (179,561) | $ (282,414) | $ (7,488) | ||||
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||||||
Net income | 129,301 | 129,301 | ||||||||
Other comprehensive income | 287 | 287 | ||||||||
Comprehensive income | 129,588 | |||||||||
Share-based compensation expense | 13,852 | 13,852 | ||||||||
Repurchases of Class A Common Stock | $ (292,470) | $ (292,470) | ||||||||
Tax withholding associated with shares issued for share-based compensation | (4,235) | (4,235) | ||||||||
Shares issued upon distribution of Restricted Stock Units | (12,130) | 15,729 | (3,599) | |||||||
Total stockholders' deficiency at Mar. 31, 2020 | (612,033) | 779 | 7,403 | (456,302) | (156,712) | (7,201) | ||||
Total stockholders' deficiency at Dec. 31, 2019 | (623,012) | 779 | 3,650 | (417,162) | (202,982) | (7,297) | ||||
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||||||
Net income | 46,270 | 46,270 | ||||||||
Other comprehensive income | 96 | 96 | ||||||||
Comprehensive income | 46,366 | |||||||||
Share-based compensation expense | 3,753 | 3,753 | ||||||||
Repurchases of Class A Common Stock | $ (39,140) | $ (39,140) | ||||||||
Total stockholders' deficiency at Mar. 31, 2020 | (612,033) | 779 | 7,403 | (456,302) | (156,712) | (7,201) | ||||
Total stockholders' deficiency at Jun. 30, 2020 | (552,849) | 779 | 12,731 | (457,363) | (100,792) | (8,204) | ||||
Total stockholders' deficiency (Accounting Standards Update 2016-13 [Member]) at Jun. 30, 2020 | (480) | $ (480) | $ (480) | |||||||
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||||||
Net income | 122,117 | 122,117 | ||||||||
Other comprehensive income | 267 | 267 | ||||||||
Comprehensive income | 122,384 | |||||||||
Share-based compensation expense | 14,217 | 14,217 | ||||||||
Tax withholding associated with shares issued for share-based compensation | (2,148) | (2,148) | ||||||||
Shares issued upon distribution of Restricted Stock Units | (7,310) | 7,310 | ||||||||
Total stockholders' deficiency at Mar. 31, 2021 | (418,876) | 779 | 17,490 | (450,053) | 20,845 | (7,937) | ||||
Total stockholders' deficiency at Dec. 31, 2020 | (467,872) | 779 | 14,166 | (450,053) | (24,738) | (8,026) | ||||
Increase (Decrease) in Stockholders' Equity (Deficiency) [Roll Forward] | ||||||||||
Net income | 45,583 | 45,583 | ||||||||
Other comprehensive income | 89 | 89 | ||||||||
Comprehensive income | 45,672 | |||||||||
Share-based compensation expense | 3,324 | 3,324 | ||||||||
Tax withholding associated with shares issued for share-based compensation | 0 | 0 | ||||||||
Total stockholders' deficiency at Mar. 31, 2021 | $ (418,876) | $ 779 | $ 17,490 | $ (450,053) | $ 20,845 | $ (7,937) |
2101102-Accounting Policies
2101102-Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | 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, investments, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals, and other assets and liabilities. In addition, estimates are used in revenue recognition, rights fees expense, 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. Due to the novel coronavirus (“COVID-19”) pandemic, in March 2020, the 2019-20 NHL and NBA seasons were suspended. The leagues resumed play several months later, with the Rangers and Islanders participating in the NHL's return to play. The NHL and NBA subsequently completed their seasons in September and October 2020, respectively, which impacted the start and length of each league’s 2020-21 regular season. The NBA started its regular season on December 22, 2020 with a reduced schedule of 72 games, while the NHL regular season began on January 13, 2021 and has been reduced to a 56-game schedule. Other accrued liabilities in the accompanying consolidated balance sheet as of March 31, 2021 includes accruals for affiliate fee rebates of $5,600. Our estimates have been prepared based on these facts, and we will continue to monitor updates made by the NBA and NHL with regards to league play and the impact on the Company’s use of estimates. T he Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control, including government and league actions taken to contain or mitigate the COVID-19 pandemic, could be material and would be reflected in the Company’s financial statements in future periods. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses and the subsequent ASUs that amended the application of ASU No. 2016-13, which introduces a new impairment model for most financial assets and certain other instruments, including accounts receivable. Under the new standard, the Company is required to use a forward looking “expected loss” model that has replaced the former “incurred loss” model, which generally will result in earlier recognition of allowances for losses. The Company adopted this standard on July 1, 2020 on a modified retrospective basis, recording $480, net of tax, as a cumulative effect adjustment to retained earnings (accumulated deficit). In March 2019, the FASB issued ASU No. 2019-02, Entertainment — Films — Other Assets — Film Costs (Subtopic 926-20) and Entertainment — Broadcasters — Intangibles — Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , which amends Accounting Standards Codification (“ASC”) Subtopic 920-350 to align the accounting for production costs of an episodic television series with that for the costs of producing films. The Company adopted this standard on a prospective basis, effective July 1, 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Topic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans , which removes, adds, or clarifies disclosure requirements relating to defined benefit plans to improve disclosure effectiveness. This standard will be effective for the Company beginning in the fourth quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied retroactively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. This standard will be effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The standard is to be applied prospectively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU, and the subsequent ASU that amended its application, provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. This standard was effective upon issuance, and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, if elected. |
2106102 - Disclosure - Revenue
2106102 - Disclosure - Revenue and Accounts Receivable (Notes) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Accounts Receivable | Revenue and Accounts Receivable The Company generates revenues principally from affiliation fees charged to cable, satellite, telephone and other platforms (“Distributors”) for the right to carry its networks, as well as from the sale of advertising. The Company’s advertising revenue is largely derived from the sale of inventory in its live professional sports programming, and as such, a disproportionate share of this revenue has historically been earned in the Company’s seco nd and third fiscal quarters. Due to the COVID-19 pandemic, the NBA and NHL 2020-21 regular seasons were delayed and are scheduled to primarily occur during the third and fourth quarters of fiscal year 2021. 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 nine months ended March 31, 2021. However, given the timing of advertising revenue as stated above, affiliation fee revenue constituted less than 90% of its consolidated revenues for the three months ended March 31, 2021. Substantially all of the Company’s affiliation agreements are sales-based and usage-based royalty arrangements, which ar e 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. Advertising Revenue The Company primarily earns advertising revenue through the sale of commercial time and other advertising inventory during its programming. In general, these advertising arrangements either do not exceed one year or are primarily multi-year media banks, the elements of which are agreed upon each year. Advertising revenue is recognized as advertising is aired. In certain advertising arrangements, the Company guarantees specified viewer ratings for its programming. In such cases, the promise to deliver the guaranteed viewer ratings by airing the advertising represents the Company’s performance obligation. A contract liability is recognized as deferred revenue to the extent any guaranteed viewer ratings are not met and the customer is expected to exercise any right for additional advertising time, and is subsequently recognized as revenue either when the Company provides the required additional advertising time, or additional performance requirements become remote, which may be at the time the guarantee obligation contractually expires. Principal versus Agent Revenue Recognition The Company has an advertising sales representation agreement with MSGE that provides for MSGE to act as its advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission (see Note 14). The Company reports advertising revenue on a gross basis as it is primarily responsible for the fulfillment of advertising orders. Noncash Consideration The Company enters into nonmonetary transactions, primarily with its Distributors, that involve the exchange of products or services, such as advertising and promotional benefits, for the Company’s services. For arrangements that are subject to sales-based and usage-based royalty guidance, the Company measures noncash consideration that it receives at fair value as the sale or usage occurs. For other arrangements, the Company measures the estimated fair value of the noncash consideration that it receives at contract inception. If the Company cannot reasonably estimate the fair value of the noncash consideration, the Company measures the fair value of the consideration indirectly by reference to the standalone selling price of the services promised to the customer in exchange for the consideration. Transaction Price Allocated to Future Performance Obligations Substantially all of the Company’s affiliation agreements are licenses of functional intellectual property where revenue is derived from sales-based and usage-based royalty arrangements, and generally the Company’s advertising arrangements either do not exceed one year or are primarily multi-year media banks, the elements of which are agreed upon each year. For these types of arrangements, the Company applies a practical expedient that allows it to omit disclosure of the aggregate amount of consideration the Company expects to receive in exchange for transferring services to a customer (transaction price) that is allocated to performance obligations that have not yet been satisfied. As of March 31, 2021, the aggregate amount of transaction price allocated to remaining performance obligations, other than for contracts that the Company has applied the practical expedient, was $3,580, of which $2,578 will be recognized through fiscal year 2022 and $1,002 thereafter. Contract Balances from Contracts with Customers An account receivable is recorded when there is an unconditional right to consideration based on a contract with a customer. The Company’s payment terms generally do not exceed 60 days after revenue is earned. For certain types of contracts with customers, the Company may recognize revenue in advance of the contractual right to invoice the customer, resulting in an amount recorded to contract assets. Once the Company has an unconditional right to consideration under these contracts, the contract assets are reclassified to accounts receivable. 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. Deferred revenue is recognized as revenue when, or as, control of the services is transferred to the customer and all revenue recognition criteria have been met. The following table provides information about current contract balances from contracts with customers: March 31, June 30, Accounts receivable (including advertising receivables, which are included in related party receivables, net) $ 121,018 $ 124,325 Contract asset, short-term (included in other current assets) $ 254 $ — Contract asset, long-term (included in other assets) $ 80 $ 37 Deferred revenue, short-term $ 572 $ 2,753 Deferred revenue, long-term (included in other liabilities) $ — $ 69 Accounts receivable is presented net of an estimate for lifetime expected credit losses. The Company analyzes historical losses, economic conditions, receivables aging, customer specific risks, and other factors to estimate its allowance for credit losses. The Company’s allowance for credit losses was $1,822 and $1,418 as of March 31, 2021 and June 30, 2020, respectively. The amount of revenue recognized during the nine months ended March 31, 2021 related to deferred revenue (contract liability) recorded as of June 30, 2020 was $2,654 . |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 9 Months Ended |
Mar. 31, 2021 | |
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 Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Weighted-average number of shares for basic EPS 57,505 60,011 57,358 65,194 Dilutive effect of shares issuable under share-based compensation plans 730 304 417 359 Weighted-average number of shares for diluted EPS 58,235 60,315 57,775 65,553 Anti-dilutive shares 2,553 2,981 2,912 2,727 |
2113104 - Disclosure Goodwill a
2113104 - Disclosure Goodwill and Amortizable Intagible Assets (Notes) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets During the first quarter of fiscal year 2021, 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: March 31, June 30, Affiliate relationships $ 83,044 $ 83,044 Less: accumulated amortization (55,356) (52,761) $ 27,688 $ 30,283 Affiliate relationships have an estimated useful life of 24 years. Amortization expense for intangible assets was $865 for the three months ended March 31, 2021 and 2020, and $2,595 for the nine months ended March 31, 2021 and 2020. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of March 31, 2021 and June 30, 2020, property and equipment consisted of the following assets: March 31, June 30, Equipment $ 30,242 $ 28,902 Furniture and fixtures 1,764 1,726 Leasehold improvements 18,646 18,585 Construction in progress 206 277 50,858 49,490 Less: accumulated depreciation and amortization (43,600) (40,732) $ 7,258 $ 8,758 Depreciation and amortization expense on property and equipment was $968 and $851 for the three months ended March 31, 2021 and 2020, respectively, and $2,868 and $2,528 for the nine months ended March 31, 2021 and 2020, respectively. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | Debt Former Senior Secured Credit Facilities 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 “Former Credit Agreement”) with a syndicate of lenders. The Former Credit Agreement provided MSGN L.P. with senior secured credit facilities that consisted of: (a) an initial $1,550,000 term loan facility and (b) a $250,000 revolving credit facility. Amended and Restated Senior Secured Credit Facilities On October 11, 2019, MSGN L.P., the Holdings Entities and certain subsidiaries of MSGN L.P. amended and restated the Former Credit Agreement in its entirety (the “Credit Agreement”). The Credit Agreement provides MSGN L.P. with senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of: (i) an initial $1,100,000 term loan facility (the “Term Loan Facility”) and (ii) a $250,000 revolving credit facility (the “Revolving Credit Facility”), each with a term of five years. Proceeds from the Term Loan Facility were used by MSGN L.P. to repay outstanding indebtedness under the Former Credit Agreement. Up to $35,000 of the Revolving Credit Facility is available for the issuance of letters of credit. Subject to the satisfaction of certain conditions and limitations, the Credit Agreement allows for the addition of incremental term and/or revolving loan commitments and incremental term and/or revolving loans. Borrowings under the Credit Agreement bear interest at a floating rate, which at the option of MSGN L.P. may be either (i) a base rate plus an additional rate ranging from 0.25% to 1.25% per annum (determined based on a total net leverage ratio) (the “Base Rate”), or (ii) a Eurodollar rate plus an additional rate ranging from 1.25% to 2.25% per annum (determined based on a total net leverage ratio) (the “Eurodollar Rate”). Upon a payment default in respect of principal, interest or other amounts due and payable under the Credit Agreement or related loan documents, default interest will accrue on all overdue amounts at an additional rate of 2.00% per annum. The Credit Agreement requires that MSGN L.P. pay a commitment fee ranging from 0.225% to 0.30% (determined based on a total net leverage ratio) in respect of the average daily unused commitments under the Revolving Credit Facility. MSGN L.P. will also be required to pay customary letter of credit fees, as well as fronting fees, to banks that issue letters of credit. The Credit Agreement generally requires the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis to comply with a maximum total leverage ratio of 5.50:1.00, subject, at the option of MSGN L.P. to an upward adjustment to 6.00:1.00 during the continuance of certain events. In addition, the Credit Agreement requires a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. As of March 31, 2021, the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis were in compliance with the applicable financial covenants. All borrowings under the Credit Agreement are subject to the satisfaction of customary conditions, including absence of a default and accuracy of representations and warranties. As of March 31, 2021, there wer e no letters of credit issued and outstanding under the Revolving Credit Facility, which provides full borrowing capacity of $250,000. The Term Loan Facility amortizes quarterly in accordance with its terms beginning March 31, 2020 through September 30, 2024 with a final maturity date on October 11, 2024. As of March 31, 2021, the principal repayments required under the Term Loan Facility are as follows: Remainder of fiscal year ending June 30, 2021 $ 12,375 Fiscal year ending June 30, 2022 49,500 Fiscal year ending June 30, 2023 66,000 Fiscal year ending June 30, 2024 82,500 Fiscal year ending June 30, 2025 849,750 $ 1,060,125 All obligations under the Credit Agreement are guaranteed by the Holdings Entities and MSGN L.P.’s existing and future direct and indirect domestic subsidiaries that are not designated as excluded subsidiaries or unrestricted subsidiaries (the “Subsidiary Guarantors,” and together with the Holdings Entities, the “Guarantors”). All obligations under the Credit Agreement, including the guarantees of those obligations, are secured by certain assets of MSGN L.P. and each Guarantor (collectively, “Collateral”), including, but not limited to, a pledge of the equity interests in MSGN L.P. held directly by the Holdings Entities and the equity interests in each Subsidiary Guarantor held directly or indirectly by MSGN L.P. Subject to customary notice and minimum amount conditions, MSGN L.P. may voluntarily prepay outstanding loans under the Credit Agreement at any time, in whole or in part, without premium or penalty (except for customary breakage costs with respect to Eurodollar loans). MSGN L.P. is required to make mandatory prepayments in certain circumstances, including without limitation from the net cash proceeds of certain sales of assets (including Collateral) or casualty insurance and/or condemnation recoveries (subject to certain reinvestment, repair or replacement rights) and the incurrence of certain indebtedness, subject to certain exceptions. In addition to the financial covenants discussed above, the Credit Agreement and the related security agreement contain certain customary representations and warranties, affirmative covenants, and events of default. The Credit Agreement contains certain restrictions on the ability of MSGN L.P. and its restricted subsidiaries to take certain actions as provided in (and subject to various exceptions and baskets set forth in) the Credit Agreement, including the following: (i) incurring additional indebtedness and contingent liabilities; (ii) creating liens on certain assets; (iii) making investments, loans or advances in or to other persons; (iv) paying dividends and distributions or repurchasing capital stock; (v) changing their lines of business; (vi) engaging in certain transactions with affiliates; (vii) amending specified material agreements; (viii) merging or consolidating; (ix) making certain dispositions; and (x) entering into agreements that restrict the granting of liens. The Holdings Entities are also subject to customary passive holding company covenants. The Merger will not result in a change of control or acceleration of debt payments under the Credit Agreement. The Merger Agreement restricts the Company’s ability to redeem, repurchase, prepay, guarantee or otherwise become liable for any material indebtedness without the prior consent of MSGE. The Company is amortizing deferred financing costs of the Term Loan Facility using the effective interest method over its five-year term. The following table summarizes the presentation of the Term Loan Facility, and the related deferred financing costs, in the accompanying consolidated balance sheets as of March 31, 2021 and June 30, 2020: Term Loan Facilities Deferred Financing Costs Net March 31, 2021 Current portion of long-term debt $ 49,500 $ (1,261) $ 48,239 Long-term debt, net of current portion 1,010,625 (3,027) 1,007,598 Total $ 1,060,125 $ (4,288) $ 1,055,837 June 30, 2020 Current portion of long-term debt $ 38,500 $ (1,271) $ 37,229 Long-term debt, net of current portion 1,047,750 (3,970) 1,043,780 Total $ 1,086,250 $ (5,241) $ 1,081,009 In addition, the Company has recorded deferred financing costs related to the Revolving Credit Facility in the accompanying consolidated balance sheets as summarized in the following table: March 31, June 30, Other current assets $ 343 $ 343 Other assets 866 1,123 Total amortization of deferred financing costs was $1,210 and $1,591 for the nine months ended March 31, 2021 and 2020, respectively, and is included in interest expense in the accompanying consolidated statements of operations. The Company made interest payments under the Credit Agreement and Former Credit Agreement of $14,102 and $28,809 during the nine months ended March 31, 2021 and 2020, respectively. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has various operating leases for office and studio space, as well as equipment, expiring at various dates through fiscal year 2025. The Company currently has no finance leases. Some leases include options to extend the lease term, generally at the Company’s discretion. The depreciable life of leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. The leases generally provide for fixed annual rentals plus certain other costs. Certain leases include variable payments based on the Company’s use of the respective assets. The Company’s lease agreements do not include any material residual value guarantees or material restrictive covenants. Since the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of future lease payments. Upon the adoption of ASC Topic 842, Leases , the Company used the incremental borrowing rate on July 1, 2019 for all operating leases that commenced prior to that date. Lease cost consists of the following: Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Operating lease cost $ 1,381 $ 1,412 $ 4,160 $ 4,156 Variable lease cost 611 550 655 1,331 Total lease cost $ 1,992 $ 1,962 $ 4,815 $ 5,487 The following table summarizes the weighted-average remaining lease term and discount rate for operating leases: March 31, March 31, 2021 2020 Weighted-average discount rate for operating leases 3.33 % 3.28 % Weighted-average remaining operating lease term in years 2.96 3.68 As of March 31, 2021, the maturities of the Company’s operating lease liabilities are as follows: Remainder of fiscal year ending June 30, 2021 $ 1,485 Fiscal year ending June 30, 2022 5,241 Fiscal year ending June 30, 2023 4,949 Fiscal year ending June 30, 2024 4,135 Fiscal year ending June 30, 2025 17 Total undiscounted operating lease payments 15,827 Less: imputed interest 742 Total operating lease liabilities 15,085 Less: current portion of operating lease liabilities 5,125 Non-current operating lease liabilities $ 9,960 Supplemental cash flow information related to operating leases: Nine Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,474 $ 4,437 Cash paid for variable lease payments not included in measurement of operating lease liabilities 435 1,227 Total $ 4,909 $ 5,664 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As more fully described in Note 9 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2020, the Company’s contractual obligations not reflected on the consolidated balance sheets consist primarily of its obligations under media rights 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 | 9 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 Assets: Money market accounts $ 143,985 $ — $ — $ 143,985 Time deposits 160,885 — — 160,885 Total assets measured at fair value $ 304,870 $ — $ — $ 304,870 June 30, 2020 Assets: Money market accounts $ 129,609 $ — $ — $ 129,609 Time deposits 65,713 — — 65,713 Total assets measured at fair value $ 195,322 $ — $ — $ 195,322 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 $1,054,800 as of March 31, 2021. The Company’s long-term debt is classified within Level II of the fair value hierarchy as it is valued using quoted prices of such securities for which fair value can be derived from inputs that are readily observable, including activity in and the state of the capital markets. Investment in Nonconsolidated Entity The Company’s investment in a nonconsolidated entity, which is included in other assets in the accompanying consolidated balance sheets, does not have a readily determinable fair value. As such, the Company has elected to account for it at cost, which would be adjusted for impairment and changes resulting from observable price fluctuations in orderly transactions for an identical or a similar investment of the same issuer (referred to as the measurement alternative method). Investments accounted for under the measurement alternative method are classified within Level III of the fair value hierarchy. The carrying amount of the Company’s equity investment in the nonconsolidated entity was $3,252 and $2,000 as of March 31, 2021 and June 30, 2020, respectively. In the third quarter of fiscal year 2021, the Company recorded an unrealized gain of $1,252 as a result of an observable change in the price of this investment, which is included in miscellaneous income in the accompanying consolidated statement of operations and represents the cumulative adjustment to the cost of the investment through March 31, 2021. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefit Plan | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Plans and Other Post Retirement 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, 2020, 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 and nine months ended March 31, 2021 and 2020 are as follows: Pension Plans Postretirement Plan Three Months Ended Three Months Ended March 31, March 31, 2021 2020 2021 2020 Service cost $ 101 $ 121 $ 9 $ 13 Other components of net periodic benefit cost: Interest cost 257 354 9 15 Expected return on plan assets (185) (244) — — Recognized actuarial loss (a) 126 134 — — Amortization of unrecognized prior service credit (a) — — — (1) Net periodic benefit cost $ 299 $ 365 $ 18 $ 27 Pension Plans Postretirement Plan Nine Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Service cost $ 303 $ 363 $ 27 $ 39 Other components of net periodic benefit cost: Interest cost 770 1,062 27 45 Expected return on plan assets (555) (732) — — Recognized actuarial loss (a) 378 402 — — Amortization of unrecognized prior service credit (a) — — — (3) Net periodic benefit cost $ 896 $ 1,095 $ 54 $ 81 (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
Share Based Compensation | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [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, 2020 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 (the “Non-Employee Director Plan”), as amended. Share-based compensation expense, presented within selling, general and administrative expenses and direct operating expenses, was $3,324 and $3,753 for the three months ended March 31, 2021 and 2020, respectively, and $14,217 and $13,852 for the nine months ended March 31, 2021 and 2020, respectively. Non-Qualified Stock Options (“NQSOs”) Award Activity The following table summarizes activity relating to holders of the Company’s NQSOs for the nine months ended March 31, 2021: Number of Weighted- Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Nonperformance Performance Balance as of June 30, 2020 1,833 1,834 $ 18.88 5.17 $ — Adjustment upon final determination of level of performance objective (a) — (2) 21.60 Balance as of March 31, 2021 1,833 1,832 $ 18.88 4.42 $ 800 Exercisable as of March 31, 2021 1,357 961 $ 19.58 3.73 $ 133 (a) Includes an adjustment of awards issued with respect to performance based NQSOs granted in fiscal year 2018 upon certification of the level of achievement of the performance targets for such awards. The aggregate intrinsic value is calculated for in-the-money NQSOs as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of the Company's Class A Common Stock at March 31, 2021 and June 30, 2020, as applicable. Restricted Share Units Award Activity The following table summarizes activity relating to holders of the Company’s RSUs for the nine months ended March 31, 2021: Number of Nonperformance Performance Weighted-Average Unvested award balance as of June 30, 2020 595 870 $ 20.01 Granted 851 720 10.44 Vested (364) (293) 19.54 Adjustment upon final determination of level of performance objective (a) — (1) 21.60 Unvested award balance as of March 31, 2021 1,082 1,296 $ 13.81 (a) Includes an adjustment of awards issued with respect to performance based RSUs granted in fiscal year 2018 upon certification of the level of achievement of the performance targets for such awards. Nonperformance based vesting RSUs granted under the Employee Stock Plan during the nine months ended March 31, 2021 are subject to three three The fair value of RSUs that vested during the nine months ended March 31, 2021 was $6,826. 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, 220 of these RSUs, with an aggregate value of $2,148 were retained by the Company and the taxes paid during the nine months ended March 31, 2021 are reflected as a financing activity in the accompanying consolidated statement of cash flows. |
2149112 - Disclosure - Stock Re
2149112 - Disclosure - Stock Repurchase Program (Notes) | 9 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program On December 7, 2017, the Board authorized the repurchase of up to $150,000 of the Company’s Class A Common Stock. On August 29, 2019, the Board authorized a $300,000 increase to the stock repurchase authorization, which had $136,165 of availability remaining, bringing the total available repurchase authorization for Class A Common Stock to $436,165 as of that date. Under the authorization, shares of Class A Common Stock may be purchased from time to time in open market or private transactions, block trades or such other manner as the Company may determine, in accordance with applicable insider trading and other securities laws and regulations. The timing and amount of purchases will depend on market conditions and other factors. The Merger Agreement provides that, during the periods from the date of the Merger Agreement until the closing of the Merger or termination of the Merger Agreement, the Company is subject to restrictions that, among others, restrict its ability to repurchase, redeem or otherwise acquire shares of Class A Common Stock without the prior consent of MSGE. During the nine months ended March 31, 2020, the Company repurchased, including shares repurchased under a modified Dutch auction tender offer, 18,050 shares of its Class A Common Stock, and committed to purchase an additional 277 shares of its Class A Common Stock that were not settled until April 2020. The purchase price of these share repurchases, and the related fees, have been classified as Treasury stock in the accompanying consolidated balance sheets. There were no shares repurchased by the Company during the nine months ended March 31, 2021. As of March 31, 2021, the Company had $145,864 of availability remaining under its stock repurchase authorization. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of March 31, 2021, members of the Dolan family group, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan family group (collectively, the “Dolan Family Group”), collectively beneficially own all of the Company’s outstanding Class B Common Stock and own approximately 8.3% 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 76.9% of the aggregate voting power of the Company’s outstanding common stock. The Dolan Family Group also controls AMC Networks Inc. (“AMC Networks”), MSGS and MSGE (the outstanding common stock of which was distributed by MSGS to its stockholders on April 17, 2020 (the “Entertainment Distribution”)). The Company shares certain executive support costs, including office space, executive assistants, security and transportation costs for (i) the Company’s Executive Chairman with MSGS and (ii) the Company’s Vice Chairman with MSGS and AMC Networks. Following the Entertainment Distribution, the Company now also shares such costs with MSGE. The Company and MSGE are also party to aircraft time sharing agreements, pursuant to which MSGE has agreed from time to time to make certain aircraft available to the Company for use on a “time sharing” basis. Prior to the Entertainment Distribution, the Company was party to such time sharing agreements with MSGS. Additionally, the Company, MSGS, AMC Networks, and following the Entertainment Distribution, MSGE, have agreed on an allocation of the costs of certain other aircraft, including helicopter, use by shared executives. The Company has various agreements with MSGS that were entered into at the time that the Company distributed to its stockholders all of the outstanding common stock of MSGS, including media rights agreements covering the Knicks and the Rangers games, and a tax disaffiliation agreement. As a result of the Entertainment Distribution, certain agreements which were previously between the Company and MSGS are, as of April 17, 2020, between the Company and MSGE, including an advertising sales representation agreement, a trademark license agreement, and certain other arrangements, including a services agreement (the “Services Agreement”) pursuant to which the Company outsources certain business functions. The services currently outsourced include information technology, accounts payable, payroll, tax, certain legal functions, human resources, insurance and risk management, investor relations, corporate communications, benefit plan administration and reporting and internal audit, as well as certain executive support services described above. The Company provides certain services to MSGE pursuant to the Services Agreement. In connection with the Entertainment Distribution, the Company entered into a services agreement with MSGS, pursuant to which MSGS provides the Company certain legal services previously provided under the Services Agreement. The Company has also entered into various agreements with AMC Networks with respect to a number of ongoing commercial relationships. In addition, see Note 1 for discussion of Merger Agreement. Related Party Transactions Rights Fees The Company’s media rights agreements with MSGS, effective as of July 1, 2015, provide the Company with the exclusive media rights to Knicks and Rangers games in their local markets. Rights fees included in the accompanying consolidated statements of operations for the three months ended March 31, 2021 and 2020 wer e $35,007 and $38,611, respectively, $108,970 and $115,242 for the nine months ended March 31, 2021 and 2020, 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 March 31, 2021 and 2020 were $1,208 and $1,184, respectively, and $3,576 and $3,506 for the nine months ended March 31, 2021 and 2020, respectively. Commission The Company’s advertising sales representation agreement, which has a term through June 30, 2022, provides for MSGE (MSGS prior to the Entertainment Distribution) to act as the Company’s advertising sales representative and includes the exclusive right and obligation to sell certain advertising availabilities on the Company’s behalf for a commission. The amounts incurred by the Company for the three months ended March 31, 2021 and 2020 wer e $6,637 a nd $5,865, respectively, and $8,456 a nd $12,289 for the nine months ended March 31, 2021 and 2020, respectively. General and Administrative Expenses Amounts incurred by the Company for expenses associated with the Services Agreement and the services agreement with MSGS, net, amounte d to $2,571 and $2,499 for the three months ended March 31, 2021 and 2020, respectively, an d $7,713 and $7,813 for the nine months ended March 31, 2021 and 2020, respectively. Other Operating Expenses The Company and its related parties enter into other transactions with each other in the ordinary course of business. Net amounts incurred by the Company for other related party transactions amounted to $737 and $98 for the three months ended March 31, 2021 and 2020, respective ly, and $853 and $311 for t he nine months ended March 31, 2021 and 2020, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes Income tax expense for the three months ended March 31, 2021 of $20,870 differs from the income tax expense derived by applying the statutory federal rate of 21% to pre-tax income principally due to the impact of state and local income taxes (net of federal benefit) of $6,327. Income tax expense for the three months ended March 31, 2020 of $18,616 differs from the income tax expense derived by applying the statutory federal rate of 21% to pre-tax income principally due to the impact of state and local income taxes (net of federal benefit) of $5,405, partially offset by a tax benefit of $643 relating to a tax return to book provision adjustment in connection with the filing of the Company's prior year income tax return. Income tax expense for the nine months ended March 31, 2021 of $68,174 differs from the income tax expense derived from applying the statutory federal rate of 21% to pre-tax income principally due to the impact of state and local income taxes (net of federal benefit) of $18,178, the impact from a change in the estimated applicable tax rate used to determine deferred taxes of $6,850, tax expense related to nondeductible officers’ compensation of $2,199, and tax expense resulting from the vesting of certain share-based compensation awards of $944. The change in the estimated applicable tax rate used to determine deferred taxes was due to a change in state apportionment methodology in accordance with an amendment to a state regulation. Income tax expense for the nine months ended March 31, 2020 of $52,627 differs from the income tax expense derived from applying the statutory federal rate of 21% to pre-tax income principally due to the impact of state and local income taxes (net of federal benefit) of $15,233, partially offset by excess tax benefit of $1,583 related to share-based payment awards. The Company made cash income tax payments (net) of $61,867 and $48,128 for the nine months ended March 31, 2021 and 2020, respectively. 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 for the tax years ended December 31, 2015 and 2016. The examination was settled in April 2021 with favorable terms. The Company was notified during the fourth quarter of fiscal year 2019 that the State of New Jersey initiated an examination of the Company’s income tax returns for the tax years ended December 31, 2015 through December 31, 2017. The Company does not expect the examination, when finalized, to result in material changes to the tax returns. The Company was notified during the second quarter of fiscal year 2021 that the State of New York initiated an audit of the Company’s income tax return for the tax year ended June 30, 2019. 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 on the Company’s tax returns for 2017 and 2015, respectively, and forward. |
2156115 - Disclosure - Concentr
2156115 - Disclosure - Concentrations of Risk (Notes) | 9 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertanties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Accounts receivable, net on the accompanying consolidated balance sheets as of March 31, 2021 and June 30, 2020 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance: March 31, June 30, Customer A 33 % 26 % Customer B 27 % 25 % Customer C 25 % 22 % Customer D 12 % 10 % Revenues in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2021 and 2020 include amounts from the following individual customers, which accounted for the noted percentages of the total: Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Customer 1 25 % 24 % 27 % 25 % Customer 2 23 % 23 % 26 % 23 % Customer 3 18 % 19 % 20 % 20 % Customer 4 8 % 9 % 10 % 9 % The accompanying consolidated balance sheets as of March 31, 2021 and June 30, 2020 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the Devils: Reported in March 31, June 30, Prepaid expenses $ 2,200 $ 3,000 Other current assets 3,700 4,000 Other assets 31,800 34,000 $ 37,700 $ 41,000 As of March 31, 2021, approximately 280 full-time and part-time employees, who represent approximately 59% of the Company’s workforce, are subject to collective bargaining agreements (“CBAs”). As of March 31, 2021, approximately 61% of the Company’s workforce that is subject to a CBA is covered by a CBA that has expired. In addition, as of March 31, 2021, approximately 33% of the Company’s workforce that is subject to a CBA is covered by a CBA that will expire during the next year. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of ConsolidationThe 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, investments, goodwill, other long-lived assets, pension and other postretirement benefit obligations and the related net periodic benefit cost, tax accruals, and other assets and liabilities. In addition, estimates are used in revenue recognition, rights fees expense, 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. Due to the novel coronavirus (“COVID-19”) pandemic, in March 2020, the 2019-20 NHL and NBA seasons were suspended. The leagues resumed play several months later, with the Rangers and Islanders participating in the NHL's return to play. The NHL and NBA subsequently completed their seasons in September and October 2020, respectively, which impacted the start and length of each league’s 2020-21 regular season. The NBA started its regular season on December 22, 2020 with a reduced schedule of 72 games, while the NHL regular season began on January 13, 2021 and has been reduced to a 56-game schedule. Other accrued liabilities in the accompanying consolidated balance sheet as of March 31, 2021 includes accruals for affiliate fee rebates of $5,600. Our estimates have been prepared based on these facts, and we will continue to monitor updates made by the NBA and NHL with regards to league play and the impact on the Company’s use of estimates. T he Company adjusts such estimates when facts and circumstances dictate. However, these estimates may involve significant uncertainties and judgments and cannot be determined with precision. In addition, these estimates are based on management’s best judgment at a point in time and as such, these estimates may ultimately differ from actual results. Changes in estimates resulting from weakness in the economic environment or other factors beyond the Company’s control, including government and league actions taken to contain or mitigate the COVID-19 pandemic, could be material and would be reflected in the Company’s financial statements in future periods. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments — Credit Losses and the subsequent ASUs that amended the application of ASU No. 2016-13, which introduces a new impairment model for most financial assets and certain other instruments, including accounts receivable. Under the new standard, the Company is required to use a forward looking “expected loss” model that has replaced the former “incurred loss” model, which generally will result in earlier recognition of allowances for losses. The Company adopted this standard on July 1, 2020 on a modified retrospective basis, recording $480, net of tax, as a cumulative effect adjustment to retained earnings (accumulated deficit). In March 2019, the FASB issued ASU No. 2019-02, Entertainment — Films — Other Assets — Film Costs (Subtopic 926-20) and Entertainment — Broadcasters — Intangibles — Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , which amends Accounting Standards Codification (“ASC”) Subtopic 920-350 to align the accounting for production costs of an episodic television series with that for the costs of producing films. The Company adopted this standard on a prospective basis, effective July 1, 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-14, Compensation — Retirement Benefits — Defined Benefit Plans — General (Topic 715-20): Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans , which removes, adds, or clarifies disclosure requirements relating to defined benefit plans to improve disclosure effectiveness. This standard will be effective for the Company beginning in the fourth quarter of fiscal year 2021, with early adoption permitted. The standard is to be applied retroactively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions to the general approach in ASC Topic 740 and includes methods of simplification to the existing guidance. This standard will be effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The standard is to be applied prospectively to all periods presented. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU, and the subsequent ASU that amended its application, provide temporary optional expedients and exceptions to the guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. This standard was effective upon issuance, and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact this standard will have on its consolidated financial statements, if elected. |
Revenue Recognition Contract wi
Revenue Recognition Contract with Customer, Asset and Liability (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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: March 31, June 30, Accounts receivable (including advertising receivables, which are included in related party receivables, net) $ 121,018 $ 124,325 Contract asset, short-term (included in other current assets) $ 254 $ — Contract asset, long-term (included in other assets) $ 80 $ 37 Deferred revenue, short-term $ 572 $ 2,753 Deferred revenue, long-term (included in other liabilities) $ — $ 69 |
Computation of Earnings Per C_2
Computation of Earnings Per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Weighted-average number of shares for basic EPS 57,505 60,011 57,358 65,194 Dilutive effect of shares issuable under share-based compensation plans 730 304 417 359 Weighted-average number of shares for diluted EPS 58,235 60,315 57,775 65,553 Anti-dilutive shares 2,553 2,981 2,912 2,727 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Subject to Amortization | The Company’s intangible assets subject to amortization are as follows: March 31, June 30, Affiliate relationships $ 83,044 $ 83,044 Less: accumulated amortization (55,356) (52,761) $ 27,688 $ 30,283 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | As of March 31, 2021 and June 30, 2020, property and equipment consisted of the following assets: March 31, June 30, Equipment $ 30,242 $ 28,902 Furniture and fixtures 1,764 1,726 Leasehold improvements 18,646 18,585 Construction in progress 206 277 50,858 49,490 Less: accumulated depreciation and amortization (43,600) (40,732) $ 7,258 $ 8,758 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | As of March 31, 2021, the principal repayments required under the Term Loan Facility are as follows: Remainder of fiscal year ending June 30, 2021 $ 12,375 Fiscal year ending June 30, 2022 49,500 Fiscal year ending June 30, 2023 66,000 Fiscal year ending June 30, 2024 82,500 Fiscal year ending June 30, 2025 849,750 $ 1,060,125 |
Schedule of Debt [Table Text Block] | 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 March 31, 2021 and June 30, 2020: Term Loan Facilities Deferred Financing Costs Net March 31, 2021 Current portion of long-term debt $ 49,500 $ (1,261) $ 48,239 Long-term debt, net of current portion 1,010,625 (3,027) 1,007,598 Total $ 1,060,125 $ (4,288) $ 1,055,837 June 30, 2020 Current portion of long-term debt $ 38,500 $ (1,271) $ 37,229 Long-term debt, net of current portion 1,047,750 (3,970) 1,043,780 Total $ 1,086,250 $ (5,241) $ 1,081,009 |
Debt Financing Cost [Table Text Block] | In addition, the Company has recorded deferred financing costs related to the Revolving Credit Facility in the accompanying consolidated balance sheets as summarized in the following table: March 31, June 30, Other current assets $ 343 $ 343 Other assets 866 1,123 |
Leases Summary of Lease Costs (
Leases Summary of Lease Costs (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Lease, Cost [Abstract] | |
Lease, Cost | Lease cost consists of the following: Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Operating lease cost $ 1,381 $ 1,412 $ 4,160 $ 4,156 Variable lease cost 611 550 655 1,331 Total lease cost $ 1,992 $ 1,962 $ 4,815 $ 5,487 |
Leases Weighted Average Discoun
Leases Weighted Average Discount Rate and Remaining Term (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Weighted Average Discount Rate and Remaining Term [Abstract] | |
Weighted-average remaining lease term and discount rate for operating leases | The following table summarizes the weighted-average remaining lease term and discount rate for operating leases: March 31, March 31, 2021 2020 Weighted-average discount rate for operating leases 3.33 % 3.28 % Weighted-average remaining operating lease term in years 2.96 3.68 |
Leases Lessee, Operating Lease,
Leases Lessee, Operating Lease, Liability, Payments, Due (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | As of March 31, 2021, the maturities of the Company’s operating lease liabilities are as follows: Remainder of fiscal year ending June 30, 2021 $ 1,485 Fiscal year ending June 30, 2022 5,241 Fiscal year ending June 30, 2023 4,949 Fiscal year ending June 30, 2024 4,135 Fiscal year ending June 30, 2025 17 Total undiscounted operating lease payments 15,827 Less: imputed interest 742 Total operating lease liabilities 15,085 Less: current portion of operating lease liabilities 5,125 Non-current operating lease liabilities $ 9,960 |
Leases Summary of Supplemental
Leases Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Summary of Supplemental Cash Paid for Amounts in the Measurement of Lease Liabilities [Abstract] | |
Supplemental cash flow information related to operating leases | Supplemental cash flow information related to operating leases: Nine Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,474 $ 4,437 Cash paid for variable lease payments not included in measurement of operating lease liabilities 435 1,227 Total $ 4,909 $ 5,664 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 Assets: Money market accounts $ 143,985 $ — $ — $ 143,985 Time deposits 160,885 — — 160,885 Total assets measured at fair value $ 304,870 $ — $ — $ 304,870 June 30, 2020 Assets: Money market accounts $ 129,609 $ — $ — $ 129,609 Time deposits 65,713 — — 65,713 Total assets measured at fair value $ 195,322 $ — $ — $ 195,322 |
Pension Plans and Other Postr_2
Pension Plans and Other Postretirement Benefit Plan (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | Components of net periodic benefit cost for the three and nine months ended March 31, 2021 and 2020 are as follows: Pension Plans Postretirement Plan Three Months Ended Three Months Ended March 31, March 31, 2021 2020 2021 2020 Service cost $ 101 $ 121 $ 9 $ 13 Other components of net periodic benefit cost: Interest cost 257 354 9 15 Expected return on plan assets (185) (244) — — Recognized actuarial loss (a) 126 134 — — Amortization of unrecognized prior service credit (a) — — — (1) Net periodic benefit cost $ 299 $ 365 $ 18 $ 27 Pension Plans Postretirement Plan Nine Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 Service cost $ 303 $ 363 $ 27 $ 39 Other components of net periodic benefit cost: Interest cost 770 1,062 27 45 Expected return on plan assets (555) (732) — — Recognized actuarial loss (a) 378 402 — — Amortization of unrecognized prior service credit (a) — — — (3) Net periodic benefit cost $ 896 $ 1,095 $ 54 $ 81 (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) | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table summarizes activity relating to holders of the Company’s NQSOs for the nine months ended March 31, 2021: Number of Weighted- Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Nonperformance Performance Balance as of June 30, 2020 1,833 1,834 $ 18.88 5.17 $ — Adjustment upon final determination of level of performance objective (a) — (2) 21.60 Balance as of March 31, 2021 1,833 1,832 $ 18.88 4.42 $ 800 Exercisable as of March 31, 2021 1,357 961 $ 19.58 3.73 $ 133 (a) Includes an adjustment of awards issued with respect to performance based NQSOs granted in fiscal year 2018 upon certification of the level of achievement of the performance targets for such awards. |
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 nine months ended March 31, 2021: Number of Nonperformance Performance Weighted-Average Unvested award balance as of June 30, 2020 595 870 $ 20.01 Granted 851 720 10.44 Vested (364) (293) 19.54 Adjustment upon final determination of level of performance objective (a) — (1) 21.60 Unvested award balance as of March 31, 2021 1,082 1,296 $ 13.81 (a) Includes an adjustment of awards issued with respect to performance based RSUs granted in fiscal year 2018 upon certification of the level of achievement of the performance targets for such awards. |
Schedule of Concentrations of R
Schedule of Concentrations of Risk by Risk Factor (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Schedule of Concentration of Risk by Risk Factor [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Accounts receivable, net on the accompanying consolidated balance sheets as of March 31, 2021 and June 30, 2020 include amounts due from the following individual customers, which accounted for the noted percentages of the gross balance: March 31, June 30, Customer A 33 % 26 % Customer B 27 % 25 % Customer C 25 % 22 % Customer D 12 % 10 % Revenues in the accompanying consolidated statements of operations for the three and nine months ended March 31, 2021 and 2020 include amounts from the following individual customers, which accounted for the noted percentages of the total: Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Customer 1 25 % 24 % 27 % 25 % Customer 2 23 % 23 % 26 % 23 % Customer 3 18 % 19 % 20 % 20 % Customer 4 8 % 9 % 10 % 9 % The accompanying consolidated balance sheets as of March 31, 2021 and June 30, 2020 include the following approximate amounts that are recorded in connection with the Company’s license agreement with the Devils: Reported in March 31, June 30, Prepaid expenses $ 2,200 $ 3,000 Other current assets 3,700 4,000 Other assets 31,800 34,000 $ 37,700 $ 41,000 |
Description of Business and Bas
Description of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021USD ($)decimal$ / shares | Mar. 31, 2021USD ($)$ / shares | Jun. 30, 2020$ / shares | |
Regional Sports and Entertainment Networks | 2 | ||
Number of Reportable Segments | 1 | ||
Percentage of ownership of the MSG business that MSGN distributed to stockholders | 100.00% | 100.00% | |
Termination Loans | $ | $ 18,900 | $ 18,900 | |
Class A Common Stock [Member] | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock multiple of merging entities [Line Items] | decimal | 0.172 | ||
Class A Common Stock [Member] | MSGE Common Stock, Par or Stated Value Per Share | |||
Common stock, par value (dollars per share) | $ 0.01 | 0.01 | |
Class B Common Stock [Member] | |||
Common stock, par value (dollars per share) | $ 0.01 | 0.01 | $ 0.01 |
Common Stock multiple of merging entities [Line Items] | decimal | 0.172 | ||
Class B Common Stock [Member] | MSGE Common Stock, Par or Stated Value Per Share | |||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Stockholders' Equity Attributable to Parent | $ (418,876) | $ (467,872) | $ (552,849) | $ (612,033) | $ (623,012) | $ (458,768) |
Accrued Exchange Fee Rebate, Current | $ 5,600 | |||||
Accounting Standards Update 2016-13 [Member] | ||||||
Stockholders' Equity Attributable to Parent | $ (480) |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 3,580 | $ 3,580 | |
Remaining performance obligation recognized through fiscal 2023 | 2,578 | ||
Remaining performance obligation recognized thereafter | $ 1,002 | ||
Payment terms Affiliate and Advertising Revenue | do not exceed 60 days after revenue is earned | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 1,822 | $ 1,822 | $ 1,418 |
Contract with Customer, Liability, Revenue Recognized | $ 2,654 | ||
Maximum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Affiliation Revenue Percentage Concentration Revenue | 90.00% | 90.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable (including advertising receivables, which are included in related party receivables, net) | $ 121,018 | $ 124,325 |
Contract asset, short-term (included in other current assets) | 254 | 0 |
Contract asset, long-term (included in other assets) | 80 | 37 |
Deferred revenue, short-term | 572 | 2,753 |
Deferred revenue, long-term (included in other liabilities) | $ 0 | $ 69 |
Computation of Earnings Per C_3
Computation of Earnings Per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of shares for basic EPS | 57,505 | 60,011 | 57,358 | 65,194 |
Dilutive effect of shares issuable under share-based compensation plans | 730 | 304 | 417 | 359 |
Weighted-average number of shares for diluted EPS | 58,235 | 60,315 | 57,775 | 65,553 |
Anti-dilutive shares | 2,553 | 2,981 | 2,912 | 2,727 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Schedule of Intangible Assets Subject To Amortization) (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of Reportable Segments | 1 | ||||
Impairment of Goodwill | $ 0 | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Net | $ 27,688,000 | $ 27,688,000 | $ 30,283,000 | ||
Affiliate relationships estimated useful life | 24 years | ||||
Finite Lived Intangible Assets, Amortization Expense | 865,000 | $ 865,000 | $ 2,595,000 | $ 1,730,000 | |
Affiliate Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Affiliate relationships | 83,044,000 | 83,044,000 | 83,044,000 | ||
Less: accumulated amortization | (55,356,000) | (55,356,000) | (52,761,000) | ||
Net | $ 27,688,000 | $ 27,688,000 | $ 30,283,000 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 50,858 | $ 49,490 |
Less accumulated depreciation and amortization | (43,600) | (40,732) |
Property and equipment, net | 7,258 | 8,758 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30,242 | 28,902 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,764 | 1,726 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,646 | 18,585 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 206 | $ 277 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 968 | $ 851 | $ 2,868 | $ 2,528 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Oct. 11, 2019USD ($) | Mar. 31, 2021USD ($)decimal | Mar. 31, 2021USD ($)decimal | Mar. 31, 2020USD ($) | Sep. 28, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Debt instrument, restrictive covenants | The Credit Agreement generally requires the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis to comply with a maximum total leverage ratio of 5.50:1.00, subject, at the option of MSGN L.P. to an upward adjustment to 6.00:1.00 during the continuance of certain events. In addition, the Credit Agreement requires a minimum interest coverage ratio of 2.00:1.00 for the Holdings Entities and MSGN L.P. and its restricted subsidiaries on a consolidated basis. | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 14,102,000 | $ 28,809,000 | |||
Term in years - Deferred Financing Costs | 5 years | ||||
Leverage Ratio | decimal | 5.5 | 5.5 | |||
Adjusted Maximum Total Leverage Ratio | decimal | 6 | 6 | |||
Interest coverage ratio | decimal | 2 | 2 | |||
2015 Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured revolving credit facility | $ 1,550,000,000 | ||||
2015 Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured revolving credit facility | 250,000,000 | ||||
2019 Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured revolving credit facility | $ 1,100,000,000 | ||||
Debt Instrument, Term | 5 years | ||||
Debt Instrument, Maturity Date, Description | The Term Loan Facility amortizes quarterly in accordance with its terms beginning March 31, 2020 through September 30, 2024 with a final maturity date on October 11, 2024. | ||||
2019 Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured revolving credit facility | $ 250,000,000 | ||||
Letters of Credit, maximum capacity | $ 35,000,000 | ||||
Debt Instrument, Term | 5 years | ||||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | |||
Remaining Borrowing Capacity | $ 250,000,000 | $ 250,000,000 | |||
2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Additional interest Rate when Default | 2.00% | ||||
Minimum [Member] | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.225% | ||||
Minimum [Member] | Base Rate [Member] | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Minimum [Member] | Eurodollar [Member] | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Maximum [Member] | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||||
Maximum [Member] | Base Rate [Member] | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Maximum [Member] | Eurodollar [Member] | 2019 Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Debt Long Term Debt Maturities,
Debt Long Term Debt Maturities, Repayment of Principal of Term Loan (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Remainder of fiscal year ending June 30, 2021 | $ 12,375 |
Fiscal year ending June 30, 2022 | 49,500 |
Fiscal year ending June 30, 2023 | 66,000 |
Fiscal year ending June 30, 2024 | 82,500 |
Fiscal year ending June 30, 2025 | 849,750 |
Long-term Debt, Gross | $ 1,060,125 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,060,125 | |
Current portion of long-term debt | 48,239 | $ 37,229 |
Long-term debt, net of current portion | 1,007,598 | 1,043,780 |
Long-term Debt | 1,055,837 | 1,081,009 |
2019 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,060,125 | 1,086,250 |
Debt Issuance Costs, Net | (4,288) | (5,241) |
2019 Term Loan Facility [Member] | Current portion of long-term debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 49,500 | 38,500 |
Current portion of long-term debt | (1,261) | (1,271) |
2019 Term Loan Facility [Member] | Long-term debt, net of current portion [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,010,625 | 1,047,750 |
Long-term debt, net of current portion | $ (3,027) | $ (3,970) |
Debt Financing Costs (Details)
Debt Financing Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Debt Financing Cost [Line Items] | |||
Amortization of deferred financing costs | $ 1,210 | $ 1,591 | |
2019 Revolving Credit Facility [Member] | Other Current Assets [Member] | |||
Debt Financing Cost [Line Items] | |||
Current portion of long-term debt | 343 | $ 343 | |
2019 Revolving Credit Facility [Member] | Other Noncurrent Assets [Member] | |||
Debt Financing Cost [Line Items] | |||
Long-term debt, net of current portion | $ 866 | $ 1,123 |
Leases Summary of Lease Costs_2
Leases Summary of Lease Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Lease, Cost [Abstract] | ||||
Finance Lease, Liability | $ 0 | $ 0 | ||
Operating lease cost | 1,381,000 | $ 1,412,000 | 4,160,000 | $ 4,156,000 |
Variable lease cost | 611,000 | 550,000 | 655,000 | 1,331,000 |
Total lease cost | $ 1,992,000 | $ 1,962,000 | $ 4,815,000 | $ 5,487,000 |
Leases Weighted Average Disco_2
Leases Weighted Average Discount Rate and Remaining Term (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted-average discount rate for operating leases | 3.33% | 3.28% |
Weighted-average remaining operating lease term in years | 2 years 11 months 15 days | 3 years 8 months 4 days |
Leases Maturity Operating Lease
Leases Maturity Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jun. 30, 2020 |
Maturity Operating Lease Liability [Abstract] | ||
Remainder of fiscal year ending June 30, 2021 | $ 1,485 | |
Fiscal year ending June 30, 2022 | 5,241 | |
Fiscal year ending June 30, 2023 | 4,949 | |
Fiscal year ending June 30, 2024 | 4,135 | |
Fiscal year ending June 30, 2025 | 17 | |
Total undiscounted operating lease payments | 15,827 | |
Less: imputed interest | 742 | |
Total operating lease liabilities | 15,085 | |
Less: current portion of operating lease liabilities | 5,125 | $ 5,492 |
Non-current operating lease liabilities | $ 9,960 | $ 13,780 |
Leases Supplemental Cash Paid f
Leases Supplemental Cash Paid for Operating Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,474 | $ 4,437 |
Cash paid for variable lease payments not included in measurement of operating lease liabilities | 435 | 1,227 |
Total | $ 4,909 | $ 5,664 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 304,870 | $ 195,322 |
Investment in nonconsolidated entity | 3,252 | 2,000 |
MIscellaneous Income | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized Gain (Loss) on Investments | 1,252 | |
Level I [Member] | ||
Fair Value, Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 304,870 | 195,322 |
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 | 1,054,800 | |
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 | 143,985 | 129,609 |
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 | 143,985 | 129,609 |
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 | 160,885 | 65,713 |
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 | 160,885 | 65,713 |
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 | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 101 | $ 121 | $ 303 | $ 363 |
Interest cost | 257 | 354 | 770 | 1,062 |
Expected return on plan assets | (185) | (244) | (555) | (732) |
Recognized actuarial loss (a) | 126 | 134 | 378 | 402 |
Amortization of unrecognized prior service credit (a) | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | 299 | 365 | 896 | 1,095 |
Postretirement Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 9 | 13 | 27 | 39 |
Interest cost | 9 | 15 | 27 | 45 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized actuarial loss (a) | 0 | 0 | 0 | 0 |
Amortization of unrecognized prior service credit (a) | 0 | (1) | 0 | (3) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Total | $ 18 | $ 27 | $ 54 | $ 81 |
Pension Plans and Other Postr_4
Pension Plans and Other Postretirement Benefit Plan Pension Plans And Other Postretirement Benefit Plan (Non-Contributory Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Savings Plan [Abstract] | ||||
Defined Contribution Plan, Cost | $ 455 | $ 246 | $ 885 | $ 775 |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Share-based Payment Arrangement, Noncash Expense | $ 3,324 | $ 3,753 | $ 14,217 | $ 13,852 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Class A Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 18.88 | $ 18.88 |
Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 5 months 1 day | 5 years 2 months 1 day |
Options, Outstanding, Intrinsic Value | $ 800 | $ 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ 21.60 | |
Options, Exercisable, Weighted Average Exercise Price | $ 19.58 | |
Options, Exercisable, Weighted Average Remaining Contractual Term | 3 years 8 months 23 days | |
Options, Exercisable, Intrinsic Value | $ 133 | |
Non-Performance Vesting | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding, Balance | 1,833 | 1,833 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | 0 | |
Options, Exercisable, Number | 1,357 | |
Non-Performance Vesting | Stock Options | Ratable Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Performance Vesting | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options, Outstanding, Balance | 1,832 | 1,834 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Other Increases (Decreases) in Period | (2) | |
Options, Exercisable, Number | 961 | |
Performance Vesting | Stock Options | Cliff Vesting [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Weighted Average Fair Value per Share at Date of Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 13.81 | $ 20.01 |
Granted | 10.44 | |
Vested | 19.54 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Increase (Decrease) in Period, Weighted Average Grant Date Fair Value | $ 21.60 | |
Non-Performance Vesting | ||
Unvested award (in shares): | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,082 | 595 |
Granted | 851 | |
Vested | (364) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 0 | |
Performance Vesting | ||
Unvested award (in shares): | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,296 | 870 |
Granted | 720 | |
Vested | (293) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | (1) |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation - Restricted Stock Units (Narrative) (Details) shares in Thousands, $ in Thousands | 9 Months Ended |
Mar. 31, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Based Compensation Arrangement By Share Based Payment Award, Award Settlement Criteria | RSUs granted under the Non-Employee Director Plan will settle on the first business day following the ninetieth day after the date that the director’s service on the Board ceases or, if earlier, upon the director’s death. |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs vested in period, fair value | $ 6,826 |
RSUs shares witheld for tax withholding for share-based compensation | shares | 220 |
Value Of Equity Instruments Surrendered By Employees | $ 2,148 |
Non-Performance Vesting | Restricted Stock Units (RSUs) | Ratable Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Performance Vesting | Restricted Stock Units (RSUs) | Cliff Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Stock Repurchase Program Stock
Stock Repurchase Program Stock Repurchase Program (Details) - Class A Common Stock [Member] - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Aug. 29, 2019 | Aug. 28, 2019 | Dec. 07, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Increase in Authorized Amount | $ 300,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 145,864 | $ 436,165 | $ 136,165 | ||
Maximum [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 150,000 | ||||
Tender Offer [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
TenderOfferShareAmount | 18,050 | ||||
Stock repurchase program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury Stock, Shares, Acquired | 0 | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 277 |
Related Party Transactions (Own
Related Party Transactions (Ownership Percentage) (Details) | Mar. 31, 2021 |
Related Party Ownership Percentage [Line Items] | |
Aggregate Voting Power Held By Related Party | 76.90% |
Class A Common Stock [Member] | |
Related Party Ownership Percentage [Line Items] | |
Percentage of Common Stock Owned by Related Party | 8.30% |
Related Party Transactions (Tra
Related Party Transactions (Transactions by Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Related party transactions rights fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 35,007 | $ 38,611 | $ 108,970 | $ 115,242 |
Related party origination, master control and technical services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 1,208 | 1,184 | 3,576 | 3,506 |
Related Party Transaction Commissions | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 6,637 | 5,865 | 8,456 | 12,289 |
Related Party transactions general and administrative expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 2,571 | 2,499 | 7,713 | 7,813 |
Related party transactions other operating expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 737 | $ 98 | $ 853 | $ 311 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ (20,870) | $ (18,616) | $ (68,174) | $ (52,627) |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
EffectiveIncomeTaxRateReconciliationBookingRate | 21.00% | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | $ 6,327 | $ 5,405 | $ 18,178 | $ 15,233 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 2,199 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 6,850 | |||
Effective Income Tax Rate Reconciliation, SharebasedcompensationVesting, Amount | 944 | |||
Income Taxes Paid | $ 61,867 | 48,128 | ||
Effective Income Tax Rate Reconciliation, Book Provision Adjustment | $ 643 | |||
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | $ 1,583 |
Concentrations of Risk (Details
Concentrations of Risk (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021USD ($)employee | Mar. 31, 2020 | Mar. 31, 2021USD ($)employee | Mar. 31, 2020 | Jun. 30, 2020USD ($) | |
Concentration Risk [Line Items] | |||||
Customer Concentration In Prepaid Expenses | $ 2,200 | $ 2,200 | $ 3,000 | ||
Customer Concentration In Other Current Assets | 3,700 | 3,700 | 4,000 | ||
Customer Concentration In Other Assets | 31,800 | 31,800 | 34,000 | ||
Customer Concentration | $ 37,700 | $ 37,700 | $ 41,000 | ||
Concentration Risk, Number of Employees Labor Subject to Collective Bargaining Arrangements | employee | 280 | 280 | |||
Concentration Risk, Percentage of Employees Labor Subject to Collective Bargaining Arrangements | 59.00% | 59.00% | |||
Concentration Risk, Percentage of Employees Labor Subject to Collective Bargaining Arrangements that already expired as of the current quarter end | 61.00% | 61.00% | |||
Concentration Risk, Percentage of Employees Labor Subject to Collective Bargaining Arrangements that expire during the next fiscal year | 33.00% | 33.00% | |||
Customer A [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration at period end, AR | 33.00% | 33.00% | 26.00% | ||
Customer B [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration at period end, AR | 27.00% | 27.00% | 25.00% | ||
Customer C [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration at period end, AR | 25.00% | 25.00% | 22.00% | ||
Customer D [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration at period end, AR | 12.00% | 12.00% | 10.00% | ||
Customer 1 [Member] | Sales Revenue, Services, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage Revenues | 25.00% | 24.00% | 27.00% | 25.00% | |
Customer 2 [Member] | Sales Revenue, Services, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage Revenues | 23.00% | 23.00% | 26.00% | 23.00% | |
Customer 3 [Member] | Sales Revenue, Services, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage Revenues | 18.00% | 19.00% | 20.00% | 20.00% | |
Customer 4 [Member] | Sales Revenue, Services, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage Revenues | 8.00% | 9.00% | 10.00% | 9.00% |