| Pension Plans And Other Postretirement Benefit Plan | Pension Plans and Other Postretirement Benefit Plan Defined Benefit Pension Plans and Postretirement Benefit Plans Prior to the MSGE Distribution , the Company sponsored a non-contributory, qualified cash balance retirement plan covering its non-union employees (the “Cash Balance Pension Plan”) and an unfunded non-contributory, non-qualified excess cash balance plan (the “Excess Cash Balance Plan”) covering certain employees who participate in the underlying qualified plan (collectively, the “Cash Balance Plans”). Since March 1, 2011, the Cash Balance Pension Plan has also included the assets and liabilities of a frozen (as of December 31, 2007) non-contributory qualified defined benefit pension plan covering non-union employees hired prior to January 1, 2001. Also, the Company historically sponsored an unfunded non-contributory, non-qualified defined benefit pension plan for the benefit of certain employees who participate in the underlying qualified plan which was merged into the Cash Balance Pension Plan on March 1, 2011 (the “Excess Plan”). As of December 31, 2007, the Excess Plan was amended to freeze all benefits earned through December 31, 2007 and to eliminate the ability of participants to earn benefits for future service under these plans. The Cash Balance Plans were amended to freeze participation and future benefit accruals effective December 31, 2015 for all employees. Therefore, after December 31, 2015, no employee of the Company who was not already a participant may become a participant in the plans and no further annual pay credits will be made for any future year. Existing account balances under the plans will continue to be credited with monthly interest in accordance with the terms of the plans. Prior to the MSGE Distribution the Company sponsored a non-contributory, qualified defined benefit pension plan covering certain of its union employees (the “Union Plan”). Benefits payable to retirees under the Union Plan are based upon years of Benefit Service (as defined in the Union Plan document). The Cash Balance Plans, Union Plan, and Excess Plan are collectively referred to as the “MSGE Pension Plans.” In addition, the Company also sponsored a contributory welfare plan which provided certain postretirement healthcare benefits to certain employees hired prior to January 1, 2001 who are eligible to commence receipt of early or normal benefits under the Cash Balance Pension Plan and their dependents, as well as certain union employees (“Postretirement Plan”). As of the MSGE Distribution Date the Company and MSG Entertainment entered into an employee matters agreement (the “Employee Matters Agreement”) which determined each company’s obligations after the MSGE Distribution with regard to historical liabilities under the Company’s former pension and postretirement plans. Under the Employee Matters Agreement, the MSGE Pension Plans and Postretirement Plan were transferred to MSG Entertainment . However, the Company has retained liabilities from the Excess Cash Balance Plan and Excess Plan that related to its current employees, former employees (other than employees transferred to MSG Entertainment in connection with the MSGE Distribution ) and employees that are employed in a senior executive capacity by both the MSG Sports and MSG Entertainment. Such liabilities were transferred to the MSG Sports, LLC Excess Cash Balance Plan (the “MSGS Excess Cash Balance Plan”) and MSG Sports, LLC Excess Retirement Plan (the “MSGS Excess Retirement Plan”), which the Company established in connection with the MSGE Distribution and are collectively referred to the “ MSGS Pension Plans ”. The following table summarizes the projected benefit obligations, assets, funded status and the amounts recorded on the Company’s consolidated balance sheets as of June 30, 2020 and 2019 , associated with the MSGE Pension Plans, MSGS Pension Plans and Postretirement Plan , based upon actuarial valuations as of those measurement dates. MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at beginning of period $ 173,569 $ 161,236 $ 4,307 $ 6,750 Service cost 75 91 44 57 Interest cost 4,285 5,895 86 150 Actuarial loss (gain) 895 12,376 805 (572 ) Benefits paid (5,315 ) (5,686 ) (1,025 ) (565 ) Plan settlements paid (551 ) (343 ) — — Other — — — (1,513 ) Transfer due to the MSGE Distribution (162,901 ) — (4,217 ) — Benefit obligation at end of period 10,057 173,569 — 4,307 Change in plan assets: Fair value of plan assets at beginning of period 132,965 115,054 — — Actual return on plan assets 10,017 12,372 — — Employer contributions 7,811 11,568 — — Benefits paid (5,315 ) (5,686 ) — — Plan settlements paid (551 ) (343 ) — — Transfer due to the MSGE Distribution (144,927 ) — — — Fair value of plan assets at end of period — 132,965 — — Funded status at end of period $ (10,057 ) $ (40,604 ) $ — $ (4,307 ) Amounts recognized in the consolidated balance sheets as of June 30, 2020 and 2019 consist of: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Current liabilities (included in accrued employee related costs) of continuing operations $ (3,043 ) $ (2,667 ) $ — $ — Non-current liabilities (included in defined benefit and other postretirement obligations) of continuing operations (7,014 ) (7,049 ) — — Current liabilities of discontinued operations — (581 ) — (345 ) Non-current liabilities of discontinued operations — (30,307 ) — (3,962 ) $ (10,057 ) $ (40,604 ) $ — $ (4,307 ) Accumulated other comprehensive loss, before income tax, as of June 30, 2020 and 2019 consists of the following amounts that have not yet been recognized in net periodic benefit cost: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Actuarial loss $ (2,139 ) $ (39,793 ) $ — $ (754 ) $ (2,139 ) $ (39,793 ) $ — $ (754 ) In connection with the MSGE Distribution , the Company transferred to MSG Entertainment the accumulated other comprehensive income (loss) related to the MSGE Pension Plans and Postretirement Plan. The following table presents components of net periodic benefit cost for the MSGE Pension Plans, MSGS Pension Plans and Postretirement Plan included in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 . Service cost is recognized in direct operating expenses and selling, general and administrative expenses. All other components of net periodic benefit cost are reported in Miscellaneous income (expense), net . MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Service cost $ 75 $ 91 $ 85 $ 44 $ 57 $ 120 Interest cost 4,285 5,895 5,231 86 150 215 Expected return on plan assets (4,240 ) (3,133 ) (2,634 ) — — — Recognized actuarial loss 930 1,281 1,219 5 5 100 Amortization of unrecognized prior service cost (credit) — — — — (7 ) (37 ) Settlement loss recognized (a) 67 52 87 — — — Other — — — — (1,513 ) — Net periodic benefit cost $ 1,117 $ 4,186 $ 3,988 $ 135 $ (1,308 ) $ 398 _________________ (a) For the years ended June 30, 2020 , 2019 and 2018, lump-sum payments totaling $551 , $343 and $506 , respectively, were distributed to vested participants of the non-qualified excess cash balance plan , triggering the recognition of settlement losses in accordance with ASC Topic 715. Due to these pension settlements, the Company was required to remeasure its pension plan liability as of March 31, 2020, June 30, 2019 and March 31, 2018 for the years ended June 30, 2020 , 2019 and 2018, respectively. Discount rates used for the projected benefit obligation and interest cost were 3.21% and 2.55% as of June 30, 2020 , respectively, 3.75% and 3.18% as of June 30, 2019, respectively, and 3.53% and 2.16% as of March 31, 2018, respectively. Additionally, settlement charges of $67 , $52 and $87 were recognized in Miscellaneous income (expense), net for the years ended June 30, 2020 , 2019 and 2018, respectively. Amounts presented in the table above include net periodic benefit cost related to continuing operations and discontinued operations as noted in the following table: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Continuing Operations $ 395 $ 434 $ 504 $ — $ — $ — Discontinued Operations 722 3,752 3,484 135 (1,308 ) 398 Total net periodic benefit cost $ 1,117 $ 4,186 $ 3,988 $ 135 $ (1,308 ) $ 398 Other pre-tax changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the years ended June 30, 2020 , 2019 and 2018 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Actuarial gain (loss), net $ (321 ) $ (3,137 ) $ (1,978 ) $ — $ 572 $ (1,437 ) Recognized actuarial loss 930 1,281 1,219 5 5 100 Recognized prior service credit — — — — (7 ) (37 ) Settlement loss recognized 67 52 87 — — — Transfer due to the MSGE Distribution 37,049 — — 749 — — Total recognized in other comprehensive income (loss) $ 37,725 $ (1,804 ) $ (672 ) $ 754 $ 570 $ (1,374 ) The estimated net loss for the MSGS Pension Plans expected to be amortized from accumulated other comprehensive income (loss) and recognized as a component of net periodic benefit cost over the next fiscal year is $103 . Funded Status The accumulated benefit obligation for the MSGE Pension Plans aggregated to $173,569 at June 30, 2019 . As of June 30, 2019 , each of the Pension Plans had accumulated benefit obligations and projected benefit obligations in excess of plan assets. As a result of the MSGE Distribution , effective the MSGE Distribution Date , the Company sponsors only unfunded non-contributory pension plans. Assumptions Weighted-average assumptions used to determine benefit obligations (made at the end of the period) as of June 30, 2020 and 2019 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan June 30, June 30, 2020 2019 2020 2019 Discount rate 2.29 % 3.58 % n/a 3.18 % Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a n/a 5.00 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2027 Weighted-average assumptions used to determine net periodic benefit cost (made at the beginning of the period) for the years ended June 30, 2020 , 2019 and 2018 are as follows: MSGE Pension Plans & MSGS Pension Plans Postretirement Plan Years Ended June 30, Years Ended June 30, 2020 2019 2018 2020 2019 2018 Discount rate - projected benefit obligation 3.58 % 4.19 % 3.81 % 3.18 % 4.06 % 3.54 % Discount rate - service cost 3.78 % 4.25 % 3.93 % 3.45 % 4.25 % 3.83 % Discount rate - interest cost 3.10 % 3.90 % 3.32 % 2.84 % 3.67 % 3.05 % Expected long-term return on plan assets 5.52 % 3.72 % 3.46 % n/a n/a n/a Healthcare cost trend rate assumed for next year n/a n/a n/a 6.75 % 7.00 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) n/a n/a n/a 5.00 % 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate n/a n/a n/a 2027 2027 2027 The discount rates were determined (based on the expected duration of the benefit payments for the plans) from the Willis Towers Watson U.S. Rate Link: 40-90 Discount Rate Model as of June 30, 2020 and 2019 to select a rate at which the Company believed the plans’ benefits could be effectively settled. This model was developed by examining the yields on selected highly rated corporate bonds. The expected long-term return on plan assets is based on a periodic review and modeling of the plans’ asset allocation structures over a long-term horizon. Expectations of returns for each asset class are the most important of the assumptions used in the review and modeling and are based on comprehensive reviews of historical data, forward-looking economic outlook, and economic/financial market theory. The expected long-term rate of return was selected from within the reasonable range of rates determined by (a) historical real returns, net of inflation, for the asset classes covered by the investment policy and (b) projections of inflation over the long-term period during which benefits are payable to plan participants. Assumed healthcare cost trend rates are a key assumption used for the amounts reported for the Postretirement Plan. A one percentage point change in assumed healthcare cost trend rates would have the following effects: Increase (Decrease) in Total of Service and Interest Cost Components for the Increase (Decrease) in Benefit Obligation at Years Ended June 30, June 30, 2020 2019 2018 2020 2019 One percentage point increase $ 12 $ 19 $ 37 n/a $ 335 One percentage point decrease (11 ) (17 ) (33 ) n/a (303 ) Plan Assets and Investment Policy The weighted-average asset allocation of the Pension Plans’ assets at June 30, 2019 was as 81% fixed income securities and 19% cash equivalents. As discussed above, in connection with the MSGE Distribution, the Company only retained liabilities associated with unfunded and unqualified pension plans. Thus, the MSGS Pension Plans did not carry any investments as of June 30, 2020 . Prior to the MSGE Distribution , investment allocation decisions had been made by the Company’s Investment and Benefits Committee, which considered investment advice provided by the Company’s external investment consultant. The investment consultant took into account expected long-term risks, returns, correlation, and other prudent investment assumptions when recommending asset classes and investment managers to the Company’s Investment and Benefits Committee. The investment consultant also considered the pension plans’ liabilities when making investment allocation recommendations. The Company’s Investment and Benefits Committee’s decisions were influenced by asset/liability studies conducted by the external investment consultant who combined actuarial considerations and strategic investment advice. The major investment categories of the pension plan assets are in cash equivalents and long duration fixed income securities that are marked-to-market on a daily basis. As a result, the pension plan assets are subjected to interest-rate risk, specifically to a rising interest rate environment, as the majority of the pension plan assets are invested in long duration fixed income securities. However, the pension plan assets are structured in an asset/liability framework, and consequently, an increase in interest rates would cause a corresponding decrease to the overall liability of the pension plans, thus creating a hedge against rising interest rates. Additional risks involving the asset/liability framework include earning insufficient investment returns to cover future pension plan liabilities and imperfect hedging of such liabilities. In addition, a portion of the long duration fixed income securities portfolio is invested in non-government securities that are subject to credit risk of the issuers who might default on interest and/or principal payments. Investments at Estimated Fair Value The cumulative fair values of the individual plan assets at June 30, 2019 by asset class are as follows: Fair Value Hierarchy June 30, 2019 Fixed income securities: U.S. Treasury Securities I $ 26,238 U.S. corporate bonds II 68,968 Foreign issued corporate bonds II 11,436 Municipal bonds II 396 Money market accounts I 25,927 Total investments measured at fair value $ 132,965 Contributions for Qualified Defined Benefit Pension Plans During the year ended June 30, 2020 , the Company contributed $7,000 to the Cash Balance Pension Plan and $260 to the Union Plan. As a result of the MSGE Distribution , the Company no longer sponsors funded qualified pension plans. Estimated Future Benefit Payments The following table presents estimated future fiscal year benefit payments for the MSGS Pension Plans: Fiscal year ending June 30, 2021 $ 3,050 Fiscal year ending June 30, 2022 320 Fiscal year ending June 30, 2023 300 Fiscal year ending June 30, 2024 350 Fiscal year ending June 30, 2025 520 Fiscal years ending June 30, 2025 – 2029 2,520 Defined Contribution Pension Plans Prior to the MSGE Distribution , the Company sponsored The Madison Square Garden 401(k) Savings Plan (the “401(k) Plan”), which is a multiple employer plan and the MSG S&E, LLC Excess Savings Plan (collectively referred to as the “Savings Plans”) and The Madison Square Garden 401(k) Union Plan (the “Union Savings Plan”), which is also a multiple employer plan. As a result of the MSGE Distribution , the Savings Plans and Union Savings Plan were transferred to MSG Entertainment . However, MSG Sports employees continue to participate in the 401(k) Plan. In addition, pursuant to the Employee Matters Agreement the Company established MSG Sports LLC Excess Savings Plan to provide non-qualified retirement benefits to eligible MSG Sports employees and assumed the liabilities associated with MSG Sports employees as of the MSGE Distribution Date of the MSG S&E, LLC Excess Savings Plan. Expenses related to the Savings Plans that are included in the accompanying consolidated statements of operations for the years ended June 30, 2020 , 2019 and 2018 are as follows: Years Ended June 30, 2020 2019 2018 Continuing Operations $ 4,674 $ 7,925 $ 6,248 Discontinued Operations 1,411 2,712 2,323 Total Savings Plan Expenses $ 6,085 $ 10,637 $ 8,571 For the years ended June 30, 2020 , 2019 and 2018 , expenses related to the Union Savings Plan included in the accompanying consolidated statements of operations were $526 , $521 and $533 , respectively. These amounts have been classified in the consolidated statements of operations as discontinued operations for all periods presented. Multiemployer Plans The Company contributes to a number of multiemployer defined benefit pension plans, multiemployer defined contribution pension plans, and multiemployer health and welfare plans that provide benefits to retired union-represented employees under the terms of CBAs. Multiemployer Defined Benefit Pension Plans The multiemployer defined benefit pension plans to which the Company contributes generally provide for retirement and death benefits for eligible union-represented employees based on specific eligibility/participant requirements, vesting periods and benefit formulas. The risks to the Company of participating in these multiemployer defined benefit pension plans are different from single-employer defined benefit pension plans in the following aspects: • Assets contributed to a multiemployer defined benefit pension plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to a multiemployer defined benefit pension plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If the Company chooses to stop participating in some of these multiemployer defined benefit pension plans, the Company may be required to pay those plans an amount based on the Company’s proportion of the underfunded status of the plan, referred to as a withdrawal liability. However, cessation of participation in a multiemployer defined benefit pension plan and subsequent payment of any withdrawal liability is subject to the collective bargaining process. The following table outlines the Company’s participation in multiemployer defined benefit pension plans for the years ended June 30, 2020 , 2019 and 2018 , and summarizes the contributions that the Company has made during each period. The “EIN” and “Pension Plan Number” columns provide the Employer Identification Number and the three-digit plan number for each applicable plan. The most recent Pension Protection Act zone status available as of June 30, 2020 and 2019 relates to the plan’s two most recent years ended which are indicated. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a funding improvement plan (“FIP”) for yellow/orange zone plans or a rehabilitation plan (“RP”) for red zone plans is either pending or has been implemented by the trustees of such plan. The zone status and any FIP or RP information is based on information that the Company received from the plan, and the zone status is as certified by the plan’s actuary. The last column lists the expiration date(s) or a range of expiration dates of the CBA to which the plans are subject. There are no other significant changes that affect such comparability. PPA Zone Status FIP/RP Status Pending / Implemented Madison Square Garden Contributions As of June 30, Years Ended June 30, Plan Name EIN Pension Plan Number 2020 2019 2020 2019 2018 Surcharge Imposed Expiration Date of CBA National Basketball Association Players’ Pension Plan 83-2172122 001 Yellow Yellow Implemented $ 3,780 $ 3,217 $ 1,932 No 6/2024 (with certain termination rights becoming effective 6/2023) as of as of 2/1/2019 2/1/2018 National Hockey League Players’ Retirement Benefit Plan 46-2555356 001 Green Green No 1,150 1,197 1,200 No 9/2026 as of as of 4/30/2019 4/30/2018 All Other Multiemployer Defined Benefit Pension Plans 398 381 402 $ 5,328 $ 4,795 $ 3,534 The Company was not listed as providing more than 5 percent of the total contributions in any Form 5500 for the years ended June 30, 2020, 2019 and 2018. Multiemployer Defined Contribution Pension Plans and Multiemployer Plans That Provide Health and Welfare Benefits The Company contributed $1,200 , $1,066 and $973 for the years ended June 30, 2020 , 2019 and 2018 , respectively, to multiemployer defined contribution pension plans. In addition, the Company contributed $2,559 , $2,466 and $2,198 for the years ended June 30, 2020 , 2019 and 2018 |
