Quantitative and Qualitative Disclosures About Market Risk
−Removed: For sensitivity analysis and other information regarding market risks we face in connection with our Pension Plans and Postretirement Plan, see “Item 7 .
−Removed: Management’s Discussion and Analysis of Financial Condition and Results of Operations — Recently Issued Accounting Pronouncements and Critical Accounting Policies — Critical Accounting Policies — Defined Benefit Pension Plans and Other Postretirement Benefit Plan ,” which information is incorporated by reference herein.
−Removed: Borrowings under our Knicks Revolving Credit Facility , Knicks Unsecured Credit Facility and Rangers Revolving Credit Facility , collectively, the “ MSG Credit Facilities ”, would incur interest, depending on our election, at a floating rate based upon LIBOR, the U.S.
+Added: We have potential interest rate risk exposure related to outstanding borrowings incurred under our Knicks Revolving Credit Facility and Rangers Revolving Credit Facility , collectively, the “ MSG Sports Credit Facilities ”.
+Added: Changes in interest rates may increase interest expense payments with respect to any borrowings incurred under the MSG Sports Credit Facilities .
+Added: Borrowings under our MSG Sports Credit Facilities incur interest, depending on our election, at a floating rate based upon LIBOR, the U.S.
Federal Funds Rate or the U.S.
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If appropriate, we may seek to reduce such exposure through the use of interest rate swaps or similar instruments.
−Removed: See Note 12 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information on our MSG Credit Facilities.
−Removed: We currently have no interest rate risk exposure with our MSG Credit Facilities as we have no debt outstanding under our MSG Credit Facilities.
−Removed: In addition to the MSG Credit Facilities above, the Company, through the consolidation of TAO Group , also has TAO Term Loan Facility and TAO Revolving Credit Facility , collectively, the “ TAO Credit Facilities ”.
−Removed: Borrowings under the TAO Credit Facilities incur interest, depending on TAO Group Operating LLC’s election, at a floating rate based upon LIBOR, the U.S.
−Removed: Federal Funds Rate or the U.S.
−Removed: Prime Rate, plus, in each case, an additional spread which is dependent upon the total leverage ratio at the time.
−Removed: Accordingly, TAO Credit Facilities are subject to interest rate risk with respect to the tenor of any borrowings incurred.
−Removed: The effect of a hypothetical 100 basis point increase in floating interest rates prevailing as of June 30, 2019 and continuing for a full year would increase interest expense of the amount outstanding on the TAO Credit Facilities by $550 .
−Removed: If appropriate, the TAO entities may seek to reduce such exposure through the use of interest rate swaps or similar instruments that qualify for hedge accounting treatment.
−Removed: See Note 12 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information on the TAO Credit Facilities .
−Removed: We are exposed to market risk resulting from foreign currency fluctuations, primarily to the British pound sterling through our net investment position initiated with our acquisition of land in London in the second quarter of fiscal year 2018 and through cash and invested funds which will be deployed in the construction of our London venue.
−Removed: We may evaluate and decide, to the extent reasonable and practical, to reduce the translation risk of foreign currency fluctuations by entering into foreign currency forward exchange contracts with financial institutions.
−Removed: If we were to enter into such hedging transactions, the market risk resulting from foreign currency fluctuations is unlikely to be entirely eliminated.
−Removed: We do not plan to enter into derivative financial instrument transactions for foreign currency speculative purposes.
−Removed: As of June 30, 2019 , a uniform hypothetical 5% fluctuation in the GBP/USD exchange rate would have resulted in a change of approximately $15,155 in net asset value.
−Removed: We do not have any meaningful commodity risk exposures associated with the operation of our venues.
+Added: See Note 13 to the consolidated financial statements included in Item 8 of this Annual Report on Form 10-K for more information on our MSG Sports Credit Facilities .
+Added: As of June 30, 2020 , we had a total of $350 million in debt outstanding under our MSG Sports Credit Facilities .
+Added: The effect of a hypothetical 100 basis point increase in floating interest rates prevailing as of June 30, 2020 and continuing for a full year would increase interest expense approximately $3.5 million .
+Added: In addition, see “Item 7.
+Added: Management’s Discussion and Analysis of Financial Condition and Results of Operations — Factors Affecting Results of Operations — Impact of COVID-19 on Our Business ” for discussions of disruptions caused by COVID-19.
Financial Statements and Supplementary Data
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.