15. Condensed Consolidating Financial Information

The following condensed consolidating financial information presents the financial position, results of operations and cash flows of the Company, including its wholly-owned subsidiaries and its consolidated VIEs. This information is presented in lieu of separate financial statements and other related disclosures pursuant to Regulation S-X Rule 3-10 of the Securities Exchange Act of 1934, as amended, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”

The Nexstar column presents the parent company’s financial information, excluding consolidating entities. The Nexstar Broadcasting column presents the financial information of Nexstar Broadcasting, Inc. (“Nexstar Broadcasting”), a wholly-owned subsidiary of Nexstar and issuer of the 5.625% Notes, the 6.125% Notes and the 5.875% Notes. The Mission column presents the financial information of Mission, an entity which Nexstar Broadcasting is required to consolidate as a VIE (See Note 2). The Non-Guarantors column presents the combined financial information of Nexstar Digital LLC and other VIEs consolidated by Nexstar Broadcasting (See Note 2).

Nexstar Broadcasting’s outstanding 5.875% Notes (the only registered debt of Nexstar) are fully and unconditionally guaranteed, jointly and severally, by Nexstar, subject to certain customary release provisions. These notes are not guaranteed by any other entities.

Nexstar Broadcasting’s outstanding 5.625% Notes and 6.125% Notes are fully and unconditionally guaranteed, jointly and severally, by Nexstar and Mission, subject to certain customary release provisions. These notes are not guaranteed by any other entities. The 5.625% Notes and the 6.125% Notes are not registered debt but the indentures governing these notes require consolidating information that presents the guarantor information.

As discussed in Notes 2 and 3, Nexstar Broadcasting completed its acquisition of certain television stations from WVMH in January 2017. Additionally, Mission completed its acquisition of Parker, the owner of KFQX, in March 2017. These acquisitions were deemed to be changes in the reporting entities, thus the following condensed consolidating financial information was prepared as if Nexstar Broadcasting owned and operated the WVMH stations and Mission owned and operated Parker as of the earliest period presented.

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2017

(in thousands)

			Nexstar					Non-						Consolidated
	Nexstar		Broadcasting		Mission			Guarantors			Eliminations			Company
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	90,860	$	9,524		$	15,268		$	-		$	115,652
Accounts receivable		-		484,096		14,717			64,130			-			562,943
Amounts due from consolidated entities		-		55,417		92,923			-			(148,340	)		-
Spectrum asset		-		279,069		-			26,695			-			305,764
Other current assets		-		64,256		2,070			5,533			-			71,859
Total current assets		-		973,698		119,234			111,626			(148,340	)		1,056,218
Investments in subsidiaries		617,297		109,354		-			-			(726,651	)		-
Amounts due from consolidated entities		970,207		-		-			-			(970,207	)		-
Property and equipment, net		-		697,898		18,454			17,861			(75	)		734,138
Goodwill		-		1,959,386		33,187			150,273			-			2,142,846
FCC licenses		-		1,615,830		43,102			108,706			-			1,767,638
Other intangible assets, net		-		1,476,297		15,841			89,488			-			1,581,626
Other noncurrent assets		-		189,303		2,645			7,233			-			199,181
Total assets	$	1,587,504	$	7,021,766	$	232,463		$	485,187		$	(1,845,273	)	$	7,481,647
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of debt	$	-	$	36,243	$	2,314		$	54,251		$	-		$	92,808
Accounts payable		-		24,293		1,090			5,753			-			31,136
Liability to surrender spectrum asset		-		286,740		-			27,347			-			314,087
Amounts due to consolidated entities		-		-		-			148,340			(148,340	)		-
Other current liabilities		-		192,827		13,310			26,535			-			232,672
Total current liabilities		-		540,103		16,714			262,226			(148,340	)		670,703
Debt		-		4,024,129		223,428			22,095			-			4,269,652
Amounts due to consolidated entities		-		714,408		-			256,010			(970,418	)		-
Deferred tax liabilities		-		613,227		-			6,214			-			619,441
Other noncurrent liabilities		-		322,572		7,626			10,343			-			340,541
Total liabilities		-		6,214,439		247,768			556,888			(1,118,758	)		5,900,337
Total Nexstar Media Group, Inc. stockholders' equity (deficit)		1,587,504		807,327		(15,305	)		(82,397	)		(726,515	)		1,570,614
Noncontrolling interests in consolidated variable interest entities		-		-		-			10,696			-			10,696
Total liabilities and stockholders' equity (deficit)	$	1,587,504	$	7,021,766	$	232,463		$	485,187		$	(1,845,273	)	$	7,481,647

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2016

(in thousands)

			Nexstar					Non-					Consolidated
	Nexstar		Broadcasting		Mission			Guarantors		Eliminations			Company
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	75,830	$	6,478		$	5,372	$	-		$	87,680
Accounts receivable		-		184,921		12,332			20,805		-			218,058
Amounts due from consolidated entities		-		5,623		80,815			-		(86,438	)		-
Other current assets		-		53,762		1,337			2,380		-			57,479
Total current assets		-		320,136		100,962			28,557		(86,438	)		363,217
Investments in subsidiaries		256,391		38,259		-			-		(294,650	)		-
Amounts due from consolidated entities		-		66,170		-			-		(66,170	)		-
Property and equipment, net		-		244,623		19,564			12,041		(75	)		276,153
Goodwill		-		380,164		33,187			59,953		-			473,304
FCC licenses		-		468,963		43,102			30,459		-			542,524
Other intangible assets, net		-		258,502		17,922			48,313		-			324,737
Restricted cash		-		901,080		-			-		-			901,080
Other noncurrent assets		-		72,070		11,144			1,856		-			85,070
Total assets	$	256,391	$	2,749,967	$	225,881		$	181,179	$	(447,333	)	$	2,966,085
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of debt	$	-	$	19,759	$	2,334		$	6,000	$	-		$	28,093
Accounts payable		-		16,234		524			2,996		-			19,754
Amounts due to consolidated entities		-		-		-			86,438		(86,438	)		-
Other current liabilities		-		118,049		9,017			14,665		-			141,731
Total current liabilities		-		154,042		11,875			110,099		(86,438	)		189,578
Debt		-		2,045,827		221,431			47,068		-			2,314,326
Amounts due to consolidated entities		66,380		-		-			-		(66,380	)		-
Deferred tax liabilities		-		118,155		-			13,853		-			132,008
Other noncurrent liabilities		-		33,959		9,832			2,028		-			45,819
Total liabilities		66,380		2,351,983		243,138			173,048		(152,818	)		2,681,731
Total Nexstar Media Group, Inc. stockholders' equity (deficit)		190,011		289,290		(21,257	)		5,612		(294,515	)		169,141
Noncontrolling interest in a consolidated variable interest entity		-		108,694		4,000			2,519		-			115,213
Total liabilities and stockholders' equity (deficit)	$	256,391	$	2,749,967	$	225,881		$	181,179	$	(447,333	)	$	2,966,085

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

Year Ended December 31, 2017

(in thousands)

			Nexstar						Non-						Consolidated
	Nexstar		Broadcasting			Mission			Guarantors			Eliminations			Company
Net broadcast revenue (including trade and barter)	$	-	$	2,160,330		$	70,592		$	201,044		$	-		$	2,431,966
Revenue between consolidated entities		-		71,434			36,580			38,272			(146,286	)		-
Net revenue		-		2,231,764			107,172			239,316			(146,286	)		2,431,966
Operating expenses (income):
Direct operating expenses, excluding depreciation and amortization		-		793,606			35,820			167,690			(3,711	)		993,405
Selling, general, and administrative expenses, excluding depreciation and amortization		-		569,194			4,168			43,423			(24,799	)		591,986
Local service agreement fees between consolidated entities		-		51,859			35,500			30,417			(117,776	)		-
Amortization of broadcast rights		-		92,888			5,645			6,870			-			105,403
Amortization of intangible assets		-		137,808			2,422			19,270			-			159,500
Depreciation		-		91,791			2,342			6,525			-			100,658
Goodwill and intangible assets impairment				-			-			19,985			-			19,985
Gain on disposal of stations, net		-		(57,716	)		-			-			-			(57,716	)
Total operating expenses		-		1,679,430			85,897			294,180			(146,286	)		1,913,221
Income (loss) from operations		-		552,334			21,275			(54,864	)		-			518,745
Interest expense, net		-		(226,853	)		(10,135	)		(4,207	)		-			(241,195	)
Loss on extinguishment of debt		-		(32,523	)		(2,133	)		(226	)		-			(34,882	)
Other expenses		-		(1,284	)		-			-			-			(1,284	)
Equity in income of subsidiaries		471,363		-			-			-			(471,363	)		-
Income (loss) before income taxes		471,363		291,674			9,007			(59,297	)		(471,363	)		241,384
Income tax benefit (expense)		-		219,460			(3,400	)		17,883			-			233,943
Net income (loss)		471,363		511,134			5,607			(41,414	)		(471,363	)		475,327
Net income attributable to noncontrolling interests		-		-			-			(330	)		-			(330	)
Net income (loss) attributable to Nexstar Media Group, Inc.	$	471,363	$	511,134		$	5,607		$	(41,744	)	$	(471,363	)	$	474,997

Net Income (loss)	$	471,363	$	511,134		$	5,607		$	(41,414	)	$	(471,363	)	$	475,327
Other comprehensive income:
Change in unrecognized amounts included in pension and postretirement obligations, net of tax of $2,160		-		6,140			-			-			-			6,140
Total comprehensive income		471,363		517,274			5,607			(41,414	)		(471,363	)		481,467
Comprehensive income attributable to noncontrolling interests		-		-			-			(330	)		-			(330	)
Comprehensive income attributable to Nexstar Media Group, Inc.	$	471,363	$	517,274		$	5,607		$	(41,744	)	$	(471,363	)	$	481,137

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

Year Ended December 31, 2016

(in thousands)

			Nexstar						Non-						Consolidated
	Nexstar		Broadcasting			Mission			Guarantors			Eliminations			Company
Net broadcast revenue (including trade and barter)	$	-	$	939,333		$	61,402		$	102,455		$	-		$	1,103,190
Revenue between consolidated entities		-		34,436			42,930			11,942			(89,308	)		-
Net revenue		-		973,769			104,332			114,397			(89,308	)		1,103,190
Operating expenses:
Direct operating expenses, excluding depreciation and amortization		-		284,866			30,278			67,067			(214	)		381,997
Selling, general, and administrative expenses, excluding depreciation and amortization		-		246,698			3,611			18,822			(5,525	)		263,606
Local service agreement fees between consolidated entities		-		49,202			18,000			16,367			(83,569	)		-
Amortization of broadcast rights		-		47,990			5,567			3,588			-			57,145
Amortization of intangible assets		-		27,394			2,544			16,634			-			46,572
Depreciation		-		45,173			2,400			3,727			-			51,300
Goodwill impairment				186			-			15,076			-			15,262
Total operating expenses		-		701,509			62,400			141,281			(89,308	)		815,882
Income (loss) from operations		-		272,260			41,932			(26,884	)		-			287,308
Interest expense, net		-		(104,231	)		(10,251	)		(1,599	)		-			(116,081	)
Other expenses		-		(555	)		-			-			-			(555	)
Equity in income of subsidiaries		72,193		-			-			-			(72,193	)		-
Income (loss) before income taxes		72,193		167,474			31,681			(28,483	)		(72,193	)		170,672
Income tax (expense) benefit		-		(69,149	)		(12,337	)		3,914			-			(77,572	)
Net income (loss)		72,193		98,325			19,344			(24,569	)		(72,193	)		93,100
Net income attributable to noncontrolling interests		-		-			-			(1,563	)		-			(1,563	)
Net income (loss) attributable to Nexstar Media Group, Inc.		72,193		98,325			19,344			(26,132	)		(72,193	)		91,537
Comprehensive income attributable to Nexstar Media Group, Inc.	$	72,193	$	98,325		$	19,344		$	(26,132	)	$	(72,193	)	$	91,537

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

Year Ended December 31, 2015

(in thousands)

			Nexstar						Non-						Consolidated
	Nexstar		Broadcasting			Mission			Guarantors			Eliminations			Company
Net broadcast revenue (including trade and barter)	$	-	$	759,694		$	51,132		$	85,551		$	-		$	896,377
Revenue between consolidated entities		-		25,854			37,135			11,997			(74,986	)		-
Net revenue		-		785,548			88,267			97,548			(74,986	)		896,377
Operating expenses:
Direct operating expenses, excluding depreciation and amortization		-		233,530			24,667			44,064			(4	)		302,257
Selling, general, and administrative expenses, excluding depreciation and amortization		-		213,415			3,605			19,591			(4,131	)		232,480
Local service agreement fees between consolidated entities		-		44,997			9,780			16,074			(70,851	)		-
Amortization of broadcast rights		-		49,044			5,766			5,026			-			59,836
Amortization of intangible assets		-		29,312			2,540			16,623			-			48,475
Depreciation		-		41,833			2,435			2,954			-			47,222
Total operating expenses		-		612,131			48,793			104,332			(74,986	)		690,270
Income (loss) from operations		-		173,417			39,474			(6,784	)		-			206,107
Interest expense		-		(69,649	)		(9,325	)		(1,546	)		-			(80,520	)
Other expenses		-		(517	)		-			-			-			(517	)
Equity in income of subsidiaries		59,256		-			-			-			(59,256	)		-
Income (loss) before income taxes		59,256		103,251			30,149			(8,330	)		(59,256	)		125,070
Income tax (expense) benefit		-		(39,851	)		(12,172	)		3,336			-			(48,687	)
Net income (loss)		59,256		63,400			17,977			(4,994	)		(59,256	)		76,383
Net loss attributable to noncontrolling interests		-		-			-			1,301			-			1,301
Net income (loss) attributable to Nexstar Media Group, Inc.		59,256		63,400			17,977			(3,693	)		(59,256	)		77,684
Comprehensive income attributable to Nexstar Media Group, Inc.	$	59,256	$	63,400		$	17,977		$	(3,693	)	$	(59,256	)	$	77,684

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2017

(in thousands)

				Nexstar						Non-					Consolidated
	Nexstar			Broadcasting			Mission			Guarantors			Eliminations		Company
Cash flows from operating activities	$	-		$	106,118		$	4,692		$	25,911		$	-	$	136,721

Cash flows from investing activities:
Purchases of property and equipment		-			(62,056	)		(700	)		(9,705	)		-		(72,461	)
Deposits and payments for acquisitions		-			(2,974,454	)		(800	)		-			-		(2,975,254	)
Proceeds from sale of stations		-			481,946			-			-			-		481,946
Proceeds received to relinquish spectrum		-			478,608			-			-			-		478,608
Other investing activities		-			24,587			100			402			-		25,089
Net cash used in investing activities		-			(2,051,369	)		(1,400	)		(9,303	)		-		(2,062,072	)

Cash flows from financing activities:
Proceeds from long-term debt		-			4,149,575			230,609			53,797			-		4,433,981
Repayments of long-term debt		-			(1,640,088	)		(227,051	)		(55,190	)		-		(1,922,329	)
Premium paid on debt extinguishment		-			(18,050	)		-			-			-		(18,050	)
Payments for debt financing costs		-			(48,235	)		(3,804	)		-			-		(52,039	)
Purchase of noncontrolling interests		-			(66,901	)		-			-			-		(66,901	)
Payments for contingent consideration		-			(258,647	)					(5,000	)		-		(263,647	)
Common stock dividends paid		(55,892	)		-			-			-			-		(55,892	)
Purchase of treasury stock		(99,008	)		-			-			-			-		(99,008	)
Inter-company payments		150,844			(150,844	)		-			-			-		-
Other financing activities		4,056			(6,529	)		-			(319	)		-		(2,792	)
Net cash provided by (used in) financing activities		-			1,960,281			(246	)		(6,712	)		-		1,953,323
Net increase in cash and cash equivalents		-			15,030			3,046			9,896			-		27,972
Cash and cash equivalents at beginning of period		-			75,830			6,478			5,372			-		87,680
Cash and cash equivalents at end of period	$	-		$	90,860		$	9,524		$	15,268		$	-	$	115,652

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2016

(in thousands)

				Nexstar						Non-					Consolidated
	Nexstar			Broadcasting			Mission			Guarantors			Eliminations		Company
Cash flows from operating activities	$	-		$	251,736		$	5,370		$	4,411		$	-	$	261,517

Cash flows from investing activities:
Purchases of property and equipment		-			(28,326	)		(241	)		(3,303	)		-		(31,870	)
Deposits and payments for acquisitions		-			(103,970	)		-			-			-		(103,970	)
Other investing activities		-			(4,345	)		-			-			-		(4,345	)
Net cash used in investing activities		-			(136,641	)		(241	)		(3,303	)		-		(140,185	)

Cash flows from financing activities:
Proceeds from long-term debt		-			58,000			-			-			-		58,000
Repayments of long-term debt		-			(73,155	)		(2,335	)		(4,650	)		-		(80,140	)
Common stock dividends paid		(29,445	)		-			-			-					(29,445	)
Payments for debt financing costs		-			(20,024	)		(683	)		-			-		(20,707	)
Inter-company payments		28,220			(28,220	)		-			-			-		-
Other financing activities		1,225			(3,358	)		-			(2,643	)		-		(4,776	)
Net cash used in financing activities		-			(66,757	)		(3,018	)		(7,293	)		-		(77,068	)
Net (decrease) increase in cash and cash equivalents		-			48,338			2,111			(6,185	)		-		44,264
Cash and cash equivalents at beginning of period		-			27,492			4,367			11,557			-		43,416
Cash and cash equivalents at end of period	$	-		$	75,830		$	6,478		$	5,372		$	-	$	87,680

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2015

(in thousands)

				Nexstar						Non-						Consolidated
	Nexstar			Broadcasting			Mission			Guarantors			Eliminations			Company
Cash flows from operating activities	$	-		$	171,518		$	10,931		$	22,859		$	-		$	205,308

Cash flows from investing activities:
Purchases of property and equipment		-			(26,636	)		(258	)		(2,303	)		176			(29,021	)
Deposits and payments for acquisitions		-			(510,701	)		-			(8,548	)		43,300			(475,949	)
Proceeds from sale of a station		-			70,305			-			-			(43,300	)		27,005
Other investing activities		-			3,450			150			200			(176	)		3,624
Net cash used in investing activities		-			(463,582	)		(108	)		(10,651	)		-			(474,341	)

Cash flows from financing activities:
Proceeds from long-term debt		-			419,950			-			2,000			-			421,950
Repayments of long-term debt		-			(155,653	)		(7,337	)		(3,300	)		-			(166,290	)
Common stock dividends paid		(23,686	)		-			-			-			-			(23,686	)
Purchase of treasury stock		(48,660	)		-			-			-			-			(48,660	)
Inter-company payments		68,989			(68,989	)		-			-			-			-
Other financing activities		3,357			(6,224	)		(8	)		98			-			(2,777	)
Net cash provided by financing activities		-			189,084			(7,345	)		(1,202	)		-			180,537
Net increase (decrease) in cash and cash equivalents		-			(102,980	)		3,478			11,006			-			(88,496	)
Cash and cash equivalents at beginning of period		-			130,472			889			551			-			131,912
Cash and cash equivalents at end of period	$	-		$	27,492		$	4,367		$	11,557		$	-		$	43,416

F-1