Segment Information [Text Block] | Segment Information The Company is comprised of two reportable segments: MSG Entertainment and MSG Sports. In determining its reportable segments, the Company assessed the guidance of ASC 280-10-50-1, which provides the definition of a reportable segment. In accordance with the FASB’s guidance, the Company takes into account whether two or more operating segments can be aggregated together as one reportable segment as well as the type of discrete financial information that is available and regularly reviewed by its chief operating decision maker. The Company has evaluated this guidance and determined that there are two reportable segments. The Company allocates certain corporate costs and its performance venue operating expenses to each of its reportable segments. Allocated venue operating expenses include the non-event related costs of operating the Company’s venues, and include such costs as rent for the Company’s leased venues, real estate taxes, insurance, utilities, repairs and maintenance, and labor related to the overall management of the venues. Depreciation and amortization expense related to The Garden , Hulu Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvements not allocated to the reportable segments is reported in “ Corporate and Other .” Additionally, the Company does not allocate any purchase accounting adjustments to the reporting segments. The Company evaluates segment performance based on several factors, of which the key financial measure is operating income (loss) before (i) depreciation, amortization and impairments of property and equipment and intangible assets, (ii) share-based compensation expense or benefit, (iii) restructuring charges or credits, and (iv) gains or losses on sales or dispositions of businesses, which is referred to as adjusted operating income (loss) , a non-GAAP measure. In addition to excluding the impact of the items discussed above, the impact of purchase accounting adjustments related to business acquisitions is also excluded in evaluating the Company’s consolidated adjusted operating income (loss) . Because it is based upon operating income (loss), adjusted operating income (loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. Management believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of the Company’s business without regard to the settlement of an obligation that is not expected to be made in cash. The Company believes adjusted operating income (loss) is an appropriate measure for evaluating the operating performance of its business segments and the Company on a consolidated basis. Adjusted operating income (loss) and similar measures with similar titles are common performance measures used by investors and analysts to analyze the Company’s performance. The Company uses revenues and adjusted operating income (loss) measures as the most important indicators of its business performance, and evaluates management’s effectiveness with specific reference to these indicators. Adjusted operating income (loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), cash flows from operating activities, and other measures of performance and/or liquidity presented in accordance with GAAP. Since adjusted operating income (loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. The Company has presented the components that reconcile operating income (loss), the most directly comparable GAAP financial measure, to adjusted operating income (loss) . In addition, the retrospective adoption of ASU No. 2017-07 resulted in an immaterial improvement in operating income (loss) and adjusted operating income (loss) for the three and nine months ended March 31, 2018 (see Note 2 for further detail). Information as to the operations of the Company’s reportable segments is set forth below. Three Months Ended March 31, 2019 MSG MSG Corporate and Other Purchase Inter-segment eliminations Total Revenues $ 166,452 $ 351,594 $ — $ — $ (856 ) $ 517,190 Direct operating expenses 108,982 200,849 101 1,031 (171 ) 310,792 Selling, general and administrative expenses (a) 54,255 52,383 32,842 88 (619 ) 138,949 Depreciation and amortization (b) 4,899 1,899 18,359 3,779 — 28,936 Operating income (loss) $ (1,684 ) $ 96,463 $ (51,302 ) $ (4,898 ) $ (66 ) $ 38,513 Loss in equity method investments (2,881 ) Interest income 7,988 Interest expense (4,405 ) Miscellaneous income, net (c) 6,201 Income from operations before income taxes $ 45,416 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ (1,684 ) $ 96,463 $ (51,302 ) $ (4,898 ) $ (66 ) $ 38,513 Add back: Share-based compensation 4,022 4,767 6,791 — — 15,580 Depreciation and amortization 4,899 1,899 18,359 3,779 — 28,936 Other purchase accounting adjustments — — — 1,119 — 1,119 Adjusted operating income (loss) $ 7,237 $ 103,129 $ (26,152 ) $ — $ (66 ) $ 84,148 Other information: Capital expenditures (d) $ 4,098 $ 779 $ 31,292 $ — $ — $ 36,169 Three Months Ended March 31, 2018 MSG Entertainment MSG Sports Corporate and Other Purchase Inter-segment eliminations Total Revenues $ 159,586 $ 300,148 $ — $ — $ (113 ) $ 459,621 Direct operating expenses 102,263 196,083 — 1,187 (113 ) 299,420 Selling, general and administrative expenses (a) 50,249 48,633 22,440 125 — 121,447 Depreciation and amortization (b) 4,686 1,789 19,065 4,889 — 30,429 Operating income (loss) $ 2,388 $ 53,643 $ (41,505 ) $ (6,201 ) $ — $ 8,325 Loss in equity method investments (678 ) Interest income 5,224 Interest expense (3,965 ) Miscellaneous expense, net (c) (440 ) Income from operations before income taxes $ 8,466 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 2,388 $ 53,643 $ (41,505 ) $ (6,201 ) $ — $ 8,325 Add back: Share-based compensation 2,681 3,733 3,662 — — 10,076 Depreciation and amortization 4,686 1,789 19,065 4,889 — 30,429 Other purchase accounting adjustments — — — 1,312 — 1,312 Adjusted operating income (loss) $ 9,755 $ 59,165 $ (18,778 ) $ — $ — $ 50,142 Other information: Capital expenditures (d) $ 9,302 $ 1,479 $ 20,648 $ — $ — $ 31,429 Nine Months Ended March 31, 2019 MSG Entertainment MSG Sports Corporate and Other Purchase Inter-segment eliminations Total Revenues $ 645,919 $ 722,789 $ — $ — $ (1,196 ) $ 1,367,512 Direct operating expenses 383,781 434,882 160 3,198 (511 ) 821,510 Selling, general and administrative expenses (a) 155,681 147,913 87,439 669 (497 ) 391,205 Depreciation and amortization (b) 13,150 5,825 56,576 13,241 — 88,792 Operating income (loss) $ 93,307 $ 134,169 $ (144,175 ) $ (17,108 ) $ (188 ) $ 66,005 Earnings in equity method investments 17,131 Interest income 22,061 Interest expense (13,614 ) Miscellaneous expense, net (c) (2,895 ) Income from operations before income taxes $ 88,688 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 93,307 $ 134,169 $ (144,175 ) $ (17,108 ) $ (188 ) $ 66,005 Add back: Share-based compensation 10,823 12,357 22,804 — — 45,984 Depreciation and amortization 13,150 5,825 56,576 13,241 — 88,792 Other purchase accounting adjustments — — — 3,867 — 3,867 Adjusted operating income (loss) $ 117,280 $ 152,351 $ (64,795 ) $ — $ (188 ) $ 204,648 Other information: Capital expenditures (d) $ 18,435 $ 2,909 $ 95,878 $ — $ — $ 117,222 Nine Months Ended March 31, 2018 MSG Entertainment MSG Sports Corporate and Other Purchase Inter-segment eliminations Total Revenues $ 595,083 $ 646,168 $ — $ — $ (113 ) $ 1,241,138 Direct operating expenses 354,792 377,233 41 3,487 (113 ) 735,440 Selling, general and administrative expenses (a) 139,697 139,504 67,584 149 — 346,934 Depreciation and amortization (b) 13,209 5,544 58,954 13,812 — 91,519 Operating income (loss) $ 87,385 $ 123,887 $ (126,579 ) $ (17,448 ) $ — $ 67,245 Earnings in equity method investments 1,439 Interest income 14,988 Interest expense (11,474 ) Miscellaneous expense, net (c) (2,678 ) Income from operations before income taxes $ 69,520 Reconciliation of operating income (loss) to adjusted operating income (loss): Operating income (loss) $ 87,385 $ 123,887 $ (126,579 ) $ (17,448 ) $ — $ 67,245 Add back: Share-based compensation 9,633 11,874 15,385 — — 36,892 Depreciation and amortization 13,209 5,544 58,954 13,812 — 91,519 Other purchase accounting adjustments — — — $ 3,636 $ — 3,636 Adjusted operating income (loss) $ 110,227 $ 141,305 $ (52,240 ) $ — $ — $ 199,292 Other information: Capital expenditures (d) $ 20,415 $ 3,038 $ 135,660 $ — $ — $ 159,113 _________________ (a) Corporate and Other ’s selling, general and administrative expenses primarily consist of unallocated corporate general and administrative costs, including expenses associated with the Company’s business development initiatives. (b) Corporate and Other principally includes depreciation and amortization of The Garden, Hulu Theater at Madison Square Garden, the Forum, and certain corporate property, equipment and leasehold improvement assets not allocated to the Company’s reportable segments. (c) Miscellaneous income (expense), net for the three and nine months ended March 31, 2019 reflected $5,261 and ( $2,405 ), respectively, of unrealized gain (loss) for the Company’s investment in Townsquare in connection with the prospective adoption of ASU No. 2016-01. In addition, miscellaneous income (expense), net for the three and nine months ended March 31, 2019 and 2018 also reflected non-service cost components of net periodic pension and postretirement benefit cost in connection with the retrospective adoption of ASU No. 2017-07. See Note 2 for further details on the Company’s adoption of ASU No. 2017-07. (d) Substantially all of Corporate and Other ’s capital expenditures for the three and nine months ended March 31, 2019 are related to the Company’s planned MSG Spheres in Las Vegas and London. MSG Entertainment’s capital expenditures for the nine months ended March 31, 2019 are primarily associated with the opening of a new TAO Group venue. Substantially all of Corporate and Other’s capital expenditures for the nine months ended March 31, 2018 are related to the purchase of land in London and the Company’s planned MSG Spheres in Las Vegas and London. MSG Entertainment’s capital expenditures for the nine months ended March 31, 2018 are primarily associated with certain investments with respect to Radio City Music Hall and capital expenditures made by TAO Group. Substantially all revenues and assets of the Company’s reportable segments are attributed to or located in the United States and are primarily concentrated in the New York metropolitan area. Supplemental Information — Adoption Impact of ASC Topic 606 by Reportable Segment The adoption of ASC Topic 606 has the following impacts on revenues, operating expenses and operating income (loss) for the three and nine months ended March 31, 2019 : Three Months Ended March 31, 2019 MSG MSG Corporate and Other Purchase Inter-segment eliminations Total As reported under ASC Topic 606: Revenues $ 166,452 $ 351,594 $ — $ — $ (856 ) $ 517,190 Direct operating expenses 108,982 200,849 101 1,031 (171 ) 310,792 Selling, general and administrative expenses 54,255 52,383 32,842 88 (619 ) 138,949 Depreciation and amortization 4,899 1,899 18,359 3,779 — 28,936 Operating income (loss) $ (1,684 ) $ 96,463 $ (51,302 ) $ (4,898 ) $ (66 ) $ 38,513 Changes due to the adoption of ASC Topic 606 (a) Revenues $ 3,878 $ (45,270 ) $ — $ — $ — $ (41,392 ) Direct operating expenses 4,388 130 — — — 4,518 Selling, general and administrative expenses — — — — — — Depreciation and amortization — — — — — — Operating income (loss) $ (510 ) $ (45,400 ) $ — $ — $ — $ (45,910 ) Amounts without the adoption of ASC Topic 606 Revenues $ 170,330 $ 306,324 $ — $ — $ (856 ) $ 475,798 Direct operating expenses 113,370 200,979 101 1,031 (171 ) 315,310 Selling, general and administrative expenses 54,255 52,383 32,842 88 (619 ) 138,949 Depreciation and amortization 4,899 1,899 18,359 3,779 — 28,936 Operating income (loss) $ (2,194 ) $ 51,063 $ (51,302 ) $ (4,898 ) $ (66 ) $ (7,397 ) Nine Months Ended March 31, 2019 MSG MSG Corporate and Other Purchase Inter-segment eliminations Total As reported under ASC Topic 606: Revenues $ 645,919 $ 722,789 $ — $ — $ (1,196 ) $ 1,367,512 Direct operating expenses 383,781 434,882 160 3,198 (511 ) 821,510 Selling, general and administrative expenses 155,681 147,913 87,439 669 (497 ) 391,205 Depreciation and amortization 13,150 5,825 56,576 13,241 — 88,792 Operating income (loss) $ 93,307 $ 134,169 $ (144,175 ) $ (17,108 ) $ (188 ) $ 66,005 Changes due to the adoption of ASC Topic 606 (a) Revenues $ 17,423 $ (57,046 ) $ — $ — $ — $ (39,623 ) Direct operating expenses 20,103 (17,921 ) — — — 2,182 Selling, general and administrative expenses — — — — — — Depreciation and amortization — — — — — — Operating income (loss) $ (2,680 ) $ (39,125 ) $ — $ — $ — $ (41,805 ) Amounts without the adoption of ASC Topic 606 Revenues $ 663,342 $ 665,743 $ — $ — $ (1,196 ) $ 1,327,889 Direct operating expenses 403,884 416,961 160 3,198 (511 ) 823,692 Selling, general and administrative expenses 155,681 147,913 87,439 669 (497 ) 391,205 Depreciation and amortization 13,150 5,825 56,576 13,241 — 88,792 Operating income (loss) $ 90,627 $ 95,044 $ (144,175 ) $ (17,108 ) $ (188 ) $ 24,200 _________________ (a) Other than the changes to the operating income (loss) as shown above, the adoption of ASC Topic 606 did not impact other components of the reconciliation of operating income (loss) to adjusted operating income (loss), such as share-based compensation and purchase accounting adjustments. See Note 2 |