XML 52 R30.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Segment Information | 12 Months Ended
--- | ---
Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information | Segment Information As of June 30, 2024, the Company was comprised of two reportable segments: Sphere and MSG Networks. 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 incurs non-capitalizable content development and technology costs associated with the Company’s Sphere business, which are reported in the Sphere segment. Sphere also includes other expenses such as (a) corporate and supporting department operating costs that are attributable to Sphere development, including charges under the MSGE TSA and (b) non-event related operating expenses such as (i) insurance, (ii) utilities, (iii) repairs and maintenance, (iv) labor related to the overall management of Sphere segment and (v) depreciation and amortization expense related to certain corporate property, equipment and leasehold improvements. The Company evaluates segment performance based on several factors, of which the key financial measure is adjusted operating income (loss), a non-GAAP financial measure. We define adjusted operating income (loss) as operating income (loss) excluding: (i) depreciation, amortization and impairments of property and equipment, goodwill and intangible assets, (ii) amortization for capitalized cloud computing arrangement costs, (iii) share-based compensation expense, (iv) restructuring charges or credits, (v) merger and acquisition-related costs, net of insurance recoveries, (vi) gains or losses on sales or dispositions of businesses and associated settlements, (vii) the impact of purchase accounting adjustments related to business acquisitions, and (viii) gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan (which was established in November 2021). The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the Company’s business without regard to the settlement of an obligation that is not expected to be made in cash. The Company eliminates merger and acquisition-related costs, when applicable, because the Company does not consider such costs to be indicative of the ongoing operating performance of the Company as they result from an event that is of a non-recurring nature, thereby enhancing comparability. In addition, management believes that the exclusion of gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan provides investors with a clearer picture of the Company’s operating performance given that, in accordance with GAAP, gains and losses related to the remeasurement of liabilities under the Company’s Executive Deferred Compensation Plan are recognized in Operating loss (income) whereas gains and losses related to the remeasurement of the assets under the Company’s Executive Deferred Compensation Plan, which are equal to and therefore fully offset the gains and losses related to the remeasurement of liabilities, are recognized in Other income (expense), net, which is not reflected in Operating loss (income). 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). Information as to the operations of the Company’s reportable segments is set forth below.
|  | Year Ended June 30, 2024
|  | Sphere |  | MSG Networks |  |  |  | Total
Revenues |  | $ | 497,159 |  |  | $ | 529,730 |  |  |  |  | $ | 1,026,889 |
Direct operating expenses |  | (205,307) |  |  | (342,517) |  |  |  |  | (547,824) |
Selling, general and administrative expenses |  | (393,039) |  |  | (39,814) |  |  |  |  | (432,853) |
Depreciation and amortization |  | (248,248) |  |  | (8,246) |  |  |  |  | (256,494) |
Impairment and other losses, net |  | (121,473) |  |  | — |  |  |  |  | (121,473) |
Restructuring charges |  | (9,476) |  |  | (10) |  |  |  |  | (9,486) |
Operating (loss) income |  | (480,384) |  |  | 139,143 |  |  |  |  | (341,241) |
Interest income |  |  |  |  |  |  |  | 25,687 |
Interest expense |  |  |  |  |  |  |  | (79,868) |
Other income, net |  |  |  |  |  |  |  | 35,197 |
Loss from operations before income taxes |  |  |  |  |  |  |  | $ | (360,225) |
Reconciliation of operating (loss) income to adjusted operating (loss) income: |  |  |
Operating (loss) income |  | $ | (480,384) |  |  | $ | 139,143 |  |  |  |  | $ | (341,241) |
Add back: |  |  |  |  |  |  |  |
Share-based compensation |  | 40,514 |  |  | 6,330 |  |  |  |  | 46,844 |
Depreciation and amortization |  | 248,248 |  |  | 8,246 |  |  |  |  | 256,494 |
Restructuring charges |  | 9,476 |  |  | 10 |  |  |  |  | 9,486 |
Impairment and other losses, net |  | 121,473 |  |  | — |  |  |  |  | 121,473 |
Merger and acquisition related costs, net of insurance recoveries |  | (1,176) |  |  | (11,542) |  |  |  |  | (12,718) |
Amortization for capitalized cloud computing costs |  | — |  |  | 87 |  |  |  |  | 87 |
Remeasurement of deferred compensation plan liabilities |  | 306 |  |  | — |  |  |  |  | 306 |
Adjusted operating (loss) income |  | $ | (61,543) |  |  | $ | 142,274 |  |  |  |  | $ | 80,731 |
Other information: |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 259,642 |  |  | $ | 6,555 |  |  |  |  | $ | 266,197 |
|  | Year Ended June 30, 2023
|  | Sphere |  | MSG Networks |  |  | Total
Revenues |  | $ | 2,610 |  |  | $ | 571,221 |  |  |  | $ | 573,831 |
Direct operating expenses |  | (5,545) |  |  | (336,666) |  |  |  | (342,211) |
Selling, general and administrative expenses |  | (325,660) |  |  | (126,482) |  |  |  | (452,142) |
Depreciation and amortization |  | (24,048) |  |  | (6,668) |  |  |  | (30,716) |
Impairment and other gains (losses), net |  | 6,229 |  |  | (109) |  |  |  | 6,120 |
Restructuring charges |  | (23,136) |  |  | (4,788) |  |  |  | (27,924) |
Operating (loss) income |  | (369,550) |  |  | 96,508 |  |  |  | (273,042) |
Interest income |  |  |  |  |  |  | 11,585 |
Interest expense |  |  |  |  |  |  | — |
Other income, net |  |  |  |  |  |  | 536,887 |
Income from operations before income taxes |  |  |  |  |  |  | $ | 275,430 |
Reconciliation of operating (loss) income to adjusted operating (loss) income: |  |
Operating (loss) income |  | $ | (369,550) |  |  | $ | 96,508 |  |  |  | $ | (273,042) |
Add back: |  |  |  |  |  |  |
Share-based compensation |  | 36,188 |  |  | 6,419 |  |  |  | 42,607 |
Depreciation and amortization |  | 24,048 |  |  | 6,668 |  |  |  | 30,716 |
Restructuring charges |  | 23,136 |  |  | 4,788 |  |  |  | 27,924 |
Impairment and other (gains) losses, net |  | (6,229) |  |  | 109 |  |  |  | (6,120) |
Merger and acquisition related costs |  | (189) |  |  | 55,236 |  |  |  | 55,047 |
Amortization for capitalized cloud computing costs |  | — |  |  | 161 |  |  |  | 161 |
Remeasurement of deferred compensation plan liabilities |  | 187 |  |  | — |  |  |  | 187 |
Adjusted operating (loss) income |  | $ | (292,409) |  |  | $ | 169,889 |  |  |  | $ | (122,520) |
Other information: |  |  |  |  |  |  |
Capital expenditures |  | $ | 1,025,700 |  |  | $ | 9,185 |  |  |  | $ | 1,034,885 |
|  | Year Ended June 30, 2022
|  | Sphere |  |  |  |  | MSG Networks |  |  |  | Total
Revenues |  | $ | 1,900 |  |  |  |  |  | $ | 608,155 |  |  |  |  | $ | 610,055 |
Direct operating expenses |  | — |  |  |  |  |  | (320,278) |  |  |  |  | (320,278) |
Selling, general and administrative expenses |  | (293,664) |  |  |  |  |  | (126,129) |  |  |  |  | (419,793) |
Depreciation and amortization |  | (13,168) |  |  |  |  |  | (9,394) |  |  |  |  | (22,562) |
Impairment and other gains |  | 245 |  |  |  |  |  | — |  |  |  |  | 245 |
Restructuring charges |  | (12,952) |  |  |  |  |  | (452) |  |  |  |  | (13,404) |
Operating (loss) income |  | (317,639) |  |  |  |  |  | 151,902 |  |  |  |  | (165,737) |
Interest income |  |  |  |  |  |  |  |  |  |  | 3,575 |
Interest expense |  |  |  |  |  |  |  |  |  |  | — |
Other expense, net |  |  |  |  |  |  |  |  |  |  | (5,518) |
Loss from operations before income taxes |  |  |  |  |  |  |  |  |  |  | $ | (167,680) |
Reconciliation of operating (loss) income to adjusted operating (loss) income: |  |
Operating (loss) income |  | $ | (317,639) |  |  |  |  |  | $ | 151,902 |  |  |  |  | (165,737) |
Add back: |  |  |  |  |  |  |  |  |  |  |
Share-based compensation |  | 39,668 |  |  |  |  |  | 17,092 |  |  |  |  | 56,760 |
Depreciation and amortization |  | 13,168 |  |  |  |  |  | 9,394 |  |  |  |  | 22,562 |
Restructuring charges |  | 12,952 |  |  |  |  |  | 452 |  |  |  |  | 13,404 |
Impairment and other gains |  | (245) |  |  |  |  |  | — |  |  |  |  | (245) |
Merger and acquisition related costs |  | 20,834 |  |  |  |  |  | 27,683 |  |  |  |  | 48,517 |
Amortization for capitalized cloud computing costs |  | 95 |  |  |  |  |  | 176 |  |  |  |  | 271 |
Adjusted operating (loss) income |  | $ | (231,167) |  |  |  |  |  | $ | 206,699 |  |  |  |  | $ | (24,468) |
Other information: |  |  |  |  |  |  |  |  |  |  |
Capital expenditures |  | $ | 717,093 |  |  |  |  |  | $ | 3,673 |  |  |  |  | $ | 720,766 |
Accounts receivable, net on the accompanying consolidated balance sheets as of June 30, 2024 and 2023 included amounts due from the following individual customers, substantially derived from the MSG Networks segment, which accounted for the noted percentages of the gross balance:
|  | As of June 30,
|  | 2024 |  | 2023
Customer A |  | 10 | % |  | 23 | %
Customer B |  | 10 | % |  | 22 | %
Customer C |  | N/A |  | 17 | %
Revenues in the accompanying consolidated statements of operations for Fiscal Years 2024, 2023 and 2022 included amounts from the following individual customers, primarily derived from the MSG Networks segment, which accounted for the noted percentages of the total:
|  | Years Ended June 30,
|  | 2024 |  | 2023 |  | 2022
Customer 1 |  | 14 | % |  | 26 | % |  | 27 | %
Customer 2 |  | 13 | % |  | 26 | % |  | 26 | %
Customer 3 |  | 10 | % |  | 21 | % |  | 21 | %
As of June 30, 2024, the Company employed approximately 3,100 full-time and part-time employees, of which approximately 18% are subject to CBAs. Approximately 5% are subject to CBAs that expired as of June 30, 2024 and approximately 39% are subject to CBAs that will expire by June 30, 2025, if they are not extended prior thereto.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration