10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

ýANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM           TO             .

COMMISSION FILE NUMBER:  000-26076

SINCLAIR BROADCAST GROUP, INC.

(Exact name of Registrant as specified in its charter)

Maryland	52-1494660
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

10706 Beaver Dam Road

Hunt Valley, MD 21030

(Address of principal executive offices)

(410) 568-1500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Class A Common Stock, par value $ 0.01 per share	The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ý No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes o No ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý  No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer o Non-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes o  No ý

Based on the closing sales price of $29.86 per share as of June 30, 2016, the aggregate market value of the voting and non-voting common equity of the Registrant held by non-affiliates was approximately $2,048.4 million.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Title of each class	Number of shares outstanding as of February 20, 2017
Class A Common Stock	64,669,100
Class B Common Stock	25,670,684

Documents Incorporated by Reference - Portions of our definitive Proxy Statement relating to our 2017 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.  We anticipate that our Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of our fiscal year ended December 31, 2016.

SINCLAIR BROADCAST GROUP, INC.

FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2016

TABLE OF CONTENTS

PART I		5
ITEM 1.	BUSINESS	5
ITEM 1A.	RISK FACTORS	20
ITEM 1B.	UNRESOLVED STAFF COMMENTS	31
ITEM 2.	PROPERTIES	31
ITEM 3.	LEGAL PROCEEDINGS	31
ITEM 4.	MINE SAFETY DISCLOSURES	31
PART II		32
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	32
ITEM 6.	SELECTED FINANCIAL DATA	34
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	36
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	50
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	50
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	50
ITEM 9A.	CONTROLS AND PROCEDURES	51
ITEM 9B.	OTHER INFORMATION	52
PART III		52
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	52
ITEM 11.	EXECUTIVE COMPENSATION	52
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	52
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	52
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	53
PART IV		53
ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	53
SIGNATURES		57

2

FORWARD-LOOKING STATEMENTS

This report includes or incorporates forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and the U.S. Private Securities Litigation Reform Act of 1995.  We have based these forward-looking statements on our current expectations and projections about future events.  These forward-looking statements are subject to risks, uncertainties and assumptions about us, including, among other things, the following risks:

General risks

• the impact of changes in national and regional economies and credit and capital markets;

• consumer confidence;

• the potential impact of changes in tax law;

• the activities of our competitors;

• terrorist acts of violence or war and other geopolitical events;

• natural disasters that impact our advertisers and our stations; and

• cybersecurity.

Industry risks

• the business conditions of our advertisers particularly in the automotive and service industries;

• competition with other broadcast television stations, radio stations, multi-channel video programming distributors (MVPDs), internet and broadband content providers and other print and media outlets serving in the same markets;

• the performance of networks and syndicators that provide us with programming content, as well as the performance of internally originated programming;

• the availability and cost of programming from networks and syndicators, as well as the cost of internally originated programming;

• our relationships with networks and their strategies to distribute their programming via means other than their local television affiliates, such as over-the-top content;

• the effects of the Federal Communications Commission’s (FCC’s) National Broadband Plan, the impact of the incentive auction and the potential repacking of our broadcasting spectrum within a limited timeframe and funding allocated;

• the potential for additional governmental regulation of broadcasting or changes in those regulations and court actions interpreting those regulations, including ownership regulations limiting over-the-air television's ability to compete effectively (including regulations relating to Joint Sales Agreements (JSA) and Shared Services Agreements (SSA), and the national ownership cap), arbitrary enforcement of indecency regulations, retransmission consent regulations and political or other advertising restrictions, such as payola rules;

• the impact of FCC and Congressional efforts to limit the ability of a television station to negotiate retransmission consent agreements for the same-market stations it does not own and other FCC efforts which may restrict a television station's retransmission consent negotiations;

• the impact of FCC rules requiring broadcast stations to publish, among other information, political advertising rates online;

• labor disputes and legislation and other union activity associated with film, acting, writing and other guilds and professional sports leagues;

• the broadcasting community’s ability to develop and adopt a viable mobile digital broadcast television (mobile DTV) strategy and platform, such as the adoption of ATSC 3.0 broadcast standard, and the consumer’s appetite for mobile television;

• the impact of programming payments charged by networks pursuant to their affiliation agreements with broadcasters requiring compensation for network programming;

• the effects of declining live/appointment viewership as reported through rating systems and local television efforts to adopt and receive credit for same day viewing plus viewing on-demand thereafter;

• changes in television rating measurement methodologies that could negatively impact audience results;

• the ability of local MVPD's to coordinate and determine local advertising rates as a consortium;

• changes in the makeup of the population in the areas where stations are located;

• the operation of low power devices in the broadcast spectrum, which could interfere with our broadcast signals;

• Over-the-top (OTT) technologies and their potential impact on cord-cutting;

• the impact of MVPD’s offering “skinny” programming bundles that may not include television broadcast stations; and

• fluctuations in advertising rates and availability of inventory.

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Risks specific to us

• the effectiveness of our management;

• our ability to attract and maintain local, national, and network advertising and successfully participate in new sales channels such as programmatic advertising through business partnership ventures and the development of technology;

• our ability to service our debt obligations and operate our business under restrictions contained in our financing agreements;

• our ability to successfully implement and monetize our own content management system (CMS) designed to provide our viewers significantly improved content via the internet and other digital platforms;

• our ability to successfully renegotiate retransmission consent agreements;

• our ability to renew our FCC licenses;

• our limited ability to obtain FCC approval for any future acquisitions, as well as, in certain cases, customary antitrust clearance for any future acquisitions;

• our ability to identify media business investment opportunities and to successfully integrate any acquired businesses, as well as the success of our digital initiatives in a competitive environment, such as the investment in the re-launch of Circa;

• our ability to maintain our affiliation and programming service agreements with our networks and program service providers and at renewal, to successfully negotiate these agreements with favorable terms;

• our ability to effectively respond to technology affecting our industry and to increasing competition from other media providers;

• the strength of ratings for our local news broadcasts including our news sharing arrangements;

• the successful execution of our program development and multi-channel broadcasting initiatives including American Sports Network (ASN), COMET, and other original programming, and mobile DTV; and

• the results of prior year tax audits by taxing authorities.

Other matters set forth in this report and other reports filed with the Securities and Exchange Commission (SEC), including the Risk Factors set forth in Item 1A of this report may also cause actual results in the future to differ materially from those described in the forward-looking statements.  However, additional factors and risks not currently known to us or that we currently deem immaterial may also cause actual results in the future to differ materially from those described in the forward-looking statements.  You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made.  We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  In light of these risks, uncertainties and assumptions, events described in the forward-looking statements discussed in this report might not occur.

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PART I

ITEM 1.            BUSINESS

We are a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms.   The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, our own networks, and other original programming produced by us.  We also distribute our original programming, and owned and operated networks, on other third-party platforms.  Additionally, we own digital and internet media products that are complementary to our extensive portfolio of television station related digital properties. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments.

Broadcast

As of December 31, 2016, our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as JSAs and SSAs) to 173 stations in 81 markets. These stations broadcast 483 channels, including 221 channels affiliated with primary networks or program service providers comprised of:  FOX (54), ABC (36), CBS (30), NBC (22), CW (43), and MyNetworkTV (MNT) (36).  The other 262 channels broadcast programming from Antenna TV, American Sports Network (ASN), Azteca, Bounce Network, COMET, Decades, Estrella TV, Get TV, Grit, Me TV, MundoFox, Retro TV, Telemundo, This TV, News & Weather, Univision, Zuus Country, and two channels broadcasts independent programming.  For the purpose of this report, these channels are referred to as “our” stations.  Refer to our Television Markets and Stations table later in this Item 1. for more information. As discussed under Pending Matters within Federal Regulation of Television Broadcasting within this Item 1., we do not expect the results of the FCC incentive auction to have a material change on the above operations.

Our broadcast segment provides free over-the-air programming to television viewing audiences in the communities we serve through our local television stations.  The programming that we provide on our primary channels consists of network provided programs, locally-produced news, local sporting events, programming from program service arrangements, syndicated entertainment programs, and internally originated programming provided by our other media subsidiaries. We provide live local sporting events on many of our stations by acquiring the local television broadcast rights for these events.  Additionally, we purchase and barter for popular syndicated programming from third party television producers. 

We are the nation's largest producer of local news. We produce approximately 2,200 hours of news per week at 112 stations in 76 markets, including three stations which produce news pursuant to a local news sharing arrangement for competitive stations in that market.  We have 20 stations which have local news sharing arrangements with a competitive station in that market that produces the news aired on our station. 

See Operating Strategy later in this Item 1. for more information regarding the news and programming we provide.

Our primary source of revenue is the sale of commercial inventory on our television stations to our advertising customers.  We also earn revenues by providing digital content to non-linear devices via websites, mobile, and social media advertisements. Our objective is to meet the needs of our advertising customers by delivering significant audiences in key demographics.  Our strategy is to achieve this objective by providing quality local news programming, popular network, syndicated and live sports programs, and other original content to our viewing audience.  We attract most of our national television advertisers through national marketing representation firms which have offices in New York City, Los Angeles, Chicago and Atlanta.  Our local television advertisers are attracted through the use of a local sales force at each of our television stations, which is comprised of approximately 700 sales account executives and 100 local sales managers company-wide.

We also earn revenue from our retransmission consent agreements through payments from multichannel video programming distributors ("MVPDs") in our markets.  The MVPDs are local cable companies, satellite television, and local telecommunication video providers.  The revenues primarily represent payments from the MVPDs for access to our broadcast signal and are typically based on the number of subscribers they have. 

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Our operating results are subject to cyclical fluctuations from political advertising.  Political spending has been significantly higher in the even-number years due to the cyclicality of political elections.  In addition, every four years, political spending is typically elevated further due to the advertising related to the presidential election.  Because of the political election cyclicality, there has been a significant difference in our operating results when comparing even-numbered years’ performance to the odd numbered years’ performance.  Additionally, our operating results are impacted by the number and importance of individual political races and issues discussed on a national level as well as those within the local communities we serve.  We believe political advertising will continue to be a strong advertising category in our industry. With increased spending by Political Action Committees (PACs), including so-called Super PACs, and as political-activism around social, political, economic and environmental causes continues to draw attention, political advertising levels may increase further.

Original Networks and Content

We own and operate various networks carried on distribution platforms owned by us or others: Tennis Channel (Tennis), a cable network acquired in March 2016, which includes coverage of the top 100 tournaments and original professional sport and tennis lifestyle shows; COMET, our science fiction multicast network which debuted in October 2015; and ASN, our regional sports network.

We expect to launch, CHARGE!, our adventure and action-based emerging network, in the first quarter of 2017, and TBD, the first multiscreen TV network in the U.S. market to bring premium internet-first content to TV homes across America, in early 2017.

Our internally developed content includes Ring of Honor ("ROH"), our professional wrestling promotion and Full Measure with Sharyl Attkisson ("Full Measure"), our national Sunday morning investigative and political analysis program, launched in October 2015.

Digital and Internet

Sinclair Digital Ventures focuses on investment in emerging digital technologies and digital content companies that support and expand Sinclair's digital capabilities and non-linear footprint. We earn revenues from Compulse Integrated Marketing, a full service digital agency which uses our digital expertise to help businesses run social media, search, advertising, email marketing, web design, mobile marketing, creative services, and navigate and compete in a world of constant innovation and changes in consumer behavior. Circa is a national digital news operation offering video-rich news and entertainment tailored for mobile devices and aimed at the younger demographic.

Technical Services

We own subsidiaries which are dedicated to providing broadcast related technical services to the broadcast industry including: Acrodyne Technical Services, a provider of service and support for broadcast transmitters throughout the world; Dielectric, a designer and manufacturer of broadcast systems including all components from transmitter output to antenna; and ONE Media, a technology innovator at the forefront of developing industry standards and related technologies for Next Generation Broadcast Platforms (Next Gen) encompassing its flexible and enhanced vision for broadcasting. In April 2016, we launched ONE Media 3.0, a wholly-owned subsidiary whose purpose will be to develop business opportunities, products, and service associated with ATSC 3.0 "Next Generation" broadcast transmission standard and TV platform.  

Other Non-media Investments

We own various non-media related investments through our subsidiary Keyser Capital which is an originator, underwriter, and manager of our investments across multiple asset classes including private equity, mezzanine financing, and real estate investments. Some of the largest investments include: Triangle Sign and Service (Triangle), a sign designer and fabricator; Alarm Funding Associates (Alarm Funding), a regional security alarm operator and bulk acquisition company; Bay Creek South (Bay Creek), a land developer for a planned resort community in Cape Charles, VA; and Jefferson Place, a mixed use land development project in Frederick, MD.

We are a Maryland corporation formed in 1986.  Our principal offices are located at 10706 Beaver Dam Road, Hunt Valley, Maryland 21030.  Our telephone number is (410) 568-1500 and our website address is www.sbgi.net.  The information contained on, or accessible through, our website is not part of this annual report on Form 10-K and is not incorporated herein by reference.

6

Television Markets and Stations

As of December 31, 2016, we own and operate or provide programming and/or sales and other shared services to television stations in the following 81 markets:  

Market	Market Rank (a)	Number of Channels	Stations	Network Affiliation (b)
Washington, DC	7	3	WJLA	ABC
Seattle / Tacoma, WA	14	5	KOMO, KUNS	ABC
Minneapolis / St. Paul, MN	15	4	WUCW	CW
St. Louis, MO	21	3	KDNL	ABC
Pittsburgh, PA	23	7	WPGH, WPNT	FOX, MNT
Raleigh / Durham, NC	24	5	WLFL, WRDC	CW, MNT
Portland, OR	25	9	KATU, KUNP, KUNP-LP	ABC
Baltimore, MD	26	10	WBFF, WUTB(d), WNUV(c)	FOX, CW, MNT
Nashville, TN	29	9	WZTV, WUXP, WNAB(d)	FOX, MNT, CW
San Antonio, TX	31	6	KABB, KMYS(d), WOAI	FOX, NBC, CW
Columbus, OH	32	9	WSYX, WWHO(d), WTTE(c)	ABC, FOX, CW, MNT
Salt Lake City, UT	34	7	KUTV, KMYU, KENV(d), KJZZ	CBS, NBC, MNT, IND
Milwaukee, WI	35	5	WCGV, WVTV	CW, MNT
Cincinnati, OH	36	7	WSTR(d), WKRC	CBS, CW, MNT
Asheville, NC / Greenville, SC	37	7	WMYA(c), WLOS	ABC, MNT
West Palm Beach / Fort Pierce, FL	38	9	WTVC, WTCN-CA, WWHB-CA, WPEC	CBS, CW, MNT
Austin, TX	39	2	KEYE	CBS
Las Vegas, NV	40	6	KSNV, KVCW	NBC, CW, MNT
Oklahoma City, OK	41	6	KOCB, KOKH	FOX, CW
Norfolk, VA	42	4	WTVZ	MNT
Harrisburg / Lancaster / Lebanon / York, PA	43	3	WHP	CBS, CW, MNT
Grand Rapids / Kalamazoo, MI	44	3	WWMT	CBS, CW
Birmingham / Tuscaloosa, AL	45	13	WTTO, WABM, WDBB(c), WBMA-LD	ABC, CW, MNT
Greensboro / High Point / Winston Salem, NC	46	6	WXLV, WMYV	ABC, MNT
Providence, RI / New Bedford, MA	52	3	WJAR	NBC
Buffalo, NY	53	7	WUTV, WNYO	FOX, MNT
Fresno / Visalia, CA	54	9	KMPH, KFRE, KMPH-CD	FOX, CW
Richmond, VA	55	3	WRLH	FOX, MNT
Wilkes Barre / Scranton, PA	56	10	WOLF(c), WQMY(c), WSWB(d)	FOX, CW, MNT
Little Rock / Pine Bluff, AR	57	3	KATV	ABC
Tulsa, OK	58	3	KTUL	ABC
Albany, NY	59	6	WRGB, WCWN	CBS, CW
Mobile, AL / Pensacola, FL	60	9	WEAR, WJTC(d), WFGX, WPMI(d)	ABC, NBC, MNT, IND
Lexington, KY	63	3	WDKY	FOX

7

Market	Market Rank (a)	Number of Channels	Stations	Network Affiliation (b)
Dayton, OH	64	7	WKEF, WRGT(d)	ABC, FOX, MNT
Wichita / Hutchinson, KS	66	17	KSAS, KMTW(c), KOCW, KAAS, KAAS-LP, KSAS-LP	FOX, MNT
Roanoke / Lynchburg, VA	67	4	WSET	ABC
Green Bay / Appleton, WI	68	4	WLUK, WCWF	FOX, CW
Des Moines, IA	69	3	KDSM	FOX
Charleston / Huntington, WV	70	7	WCHS, WVAH(d)	ABC, FOX
Flint / Saginaw / Bay City, MI	72	9	WSMH, WEYI(d), WBSF(d)	FOX, NBC, CW
Spokane, WA	73	3	KLEW	CBS
Omaha, NE	74	6	KPTM, KXVO(c)	FOX, CW, MNT
Rochester, NY	76	6	WUHF, WHAM(d)	ABC, FOX, CW
Columbia, SC	77	3	WACH	FOX
Toledo, OH	78	4	WNWO	NBC
Madison, WI	80	3	WMSN	FOX
Portland, ME	81	6	WGME, WPFO(d)	CBS, FOX
Paducah, KY/ Cape Girardeau, MO	83	6	KBSI, WDKA(c)	FOX, MNT
Harlingen / Weslaco / Brownsville / McAllen, TX	84	3	KGBT	CBS
Syracuse, NY	85	6	WSTM, WSTQ-LP, WTVH(d)	CBS, NBC, CW
Champaign / Springfield / Decatur, IL	86	14	WICS, WCCU(d), WICD, WRSP(d), WBUI(d)	ABC, FOX, CW
Chattanooga, TN	89	6	WTVC, WFLI(c)	ABC, FOX, CW, MNT
Cedar Rapids, IA	90	6	KGAN, KFXA(d)	CBS, FOX
Savannah, GA	91	3	WTGS	FOX
El Paso, TX	92	6	KFOX, KDBC(d)	FOX, CBS, MNT
Charleston, SC	94	3	WCIV	ABC, MNT
South Bend-Elkhart, IN	96	2	WSBT	CBS, FOX
Myrtle Beach / Florence, SC	102	6	WPDE, WWMB(c)	ABC, CW
Johnstown / Altoona, PA	104	4	WJAC	NBC
Lincoln and Hasting-Kearney, NE	105	10	KHGI, KFXL, KHGI-LD, KWNB, KHGI-CD, KWNB-LD	ABC, FOX
Boise, ID	106	6	KBOI, KYUU-LD	CBS, CW Plus
Tallahassee, FL	107	5	WTWC, WTLF(d)	FOX, NBC, CW Plus
Reno, NV	112	8	KRXI, KAME(c), KRNV(d)	FOX, MNT, NBC, CW
Eugene, OR	117	18	KVAL, KCBY, KPIC(e), KMTR(d), KMCB, KTCW	CBS, NBC
Peoria / Bloomington, IL	118	1	WHOI	Comet
Traverse City / Cadillac, MI	119	12	WPBN, WGTU(d), WTOM, WGTQ(d)	ABC, NBC
Macon, GA	121	3	WGXA	ABC, FOX
Yakima / Pasco / Richland / Kennewick, WA	122	12	KIMA, KEPR, KUNW-CD, KVVK-CD, KORX-CD	CBS, CW Plus
Bakersfield, CA	126	6	KBAK, KBFX-CD	CBS, FOX
Corpus Christi, TX	128	5	KUQI, KTOV-LP, KXPX-LP	FOX, MNT
Amarillo, TX	131	6	KVII, KVIH	ABC
Columbia / Jefferson City, MO	136	4	KRCG	CBS
Medford, OR	139	4	KTVL	CBS, CW Plus

8

Market	Market Rank (a)	Number of Channels	Stations	Network Affiliation (b)
Beaumont/Port Arthur/Orange, TX	141	6	KFDM, KBTV(d)	CBS, FOX, CW Plus
Sioux City, IA	149	8	KBVK-LP, KMEG(d), KPTH, KPTP-LD	CBS, FOX, MNT
Albany, GA	152	3	WFXL	FOX
Wheeling, WV / Steubenville, OH	158	3	WTOV	FOX, NBC
Gainesville, FL	161	6	WGFL(c), WYME-CD, WNBW(d)	CBS, NBC, MNT
Quincy, IL / Hannibal, MO / Keokuk, IA	170	3	KHQA	ABC, CBS
Ottumwa, IA / Kirksville, MO	200	3	KTVO	ABC, CBS
Total Television Channels		483

(a) Rankings are based on the relative size of a station’s Designated Market Area (DMA) among the 210 generally recognized DMAs in the United States as estimated by Nielsen as of September 2016.

(b) We broadcast programming from the following providers on our channels:

Affiliation	Number of Channels	Number of Markets	Expiration Dates (1)
ABC	36	25	September 30, 2017 through December 31, 2020
CBS	30	24	April 29, 2017 through December 31, 2021
NBC	22	32	December 31, 2017 through December 31, 2018
FOX	54	36	June 30, 2017 through December 31, 2019
MNT	36	26	August 31, 2018
CW	43	16	August 31, 2021
Total Major Network Affiliates	221

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Affiliation	Number of Channels	Number of Markets	Expiration Dates (1)
Antenna TV	23	19	December 31, 2017 through January 1, 2019
ASN	19	17	(f)
Azteca	3	3	February 28, 2017 through February 28, 2018
Bounce Network	4	4	August 31, 2019
COMET	84	70	(f)
Decades	1	1	May 31, 2018
Estrella TV	2	2	September 30, 2017
Get TV	22	23	June 30, 2017
Grit	47	45	December 31, 2019
Independent programming	2	2	N/A
Me TV	14	14	May 31, 2017 through February 28, 2019
MundoFox	3	3	September 30, 2015 through December 31, 2016
Retro TV	5	5	December 31, 2014 through January 7, 2017
Telemundo	1	1	January 14, 2017
This TV	12	9	November 1, 2014 through December 31, 2015
News & Weather	10	9	December 31, 2017
Univision	6	4	December 31, 2019
Zuus Country	4	4	September 30, 2014
Total Other Affiliates	262
Total Television Channels	483

(1) When we negotiate the terms of our network affiliations or program service arrangements, we generally negotiate on behalf of all of our stations affiliated with that entity simultaneously.  This results in substantially similar terms for our stations, including the expiration date of the network affiliations or program service arrangements. If the affiliation agreement expires, we may continue to operate under the existing affiliation agreement on a temporary basis while we negotiate a new affiliation agreement.

(c) The license assets for these stations are currently owned by third parties.  We provide programming, sales, operational and administrative services to these stations pursuant to certain service agreements, such as LMAs.

(d) The license and programming assets for these stations are currently owned by third parties. We provide certain non-programming related sales, operational and administrative services to these stations pursuant to service agreements, such as joint sales and shared services agreements.

(e) We provide programming, sales, operational, and administrative services to this station, of which 50% is owned by a third party.

(f) We own and operate the networks, which are carried on our multi-cast distribution platform.

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Operating Strategy

Programming to Attract Viewership.  We seek to target our programming offerings to attract viewership, to meet the needs of the communities in which we serve and to meet the needs of our advertising customers.  In pursuit of this strategy, we seek to develop original programming or obtain, at attractive prices, popular syndicated programming that is complementary to each station’s network programming. We also seek to broadcast live local and national sporting events that would appeal to a large segment of the local community.  See Popular Sporting Events below for further discussion.  Moreover, we produce local news at 112 stations in 76 markets, including three stations which have a local news sharing agreement with a competitive station in that market.  See Local News below for further discussion.

Television advertising prices are primarily based on ratings information measured and distributed by Nielsen. Nielsen is currently not accredited by the Media Rating Council, an independent organization that monitors rating services, which revoked Nielsen’s accreditation in the 154 markets in which Nielsen measures ratings exclusively by its diary methodology.  As of December 31, 2016, approximately 42 of our 81 markets are diary only markets.  We have entered into a contract with comScore (formerly Rentrak), an alternative rating service provider that uses set-top box television measurements to provide us additional measurement information to the ratings services that Nielsen provides for all 173 of our stations in our 81 markets.

News.  We believe that the production and broadcasting of local news is an important link to the community and an aid to a station’s efforts to expand its viewership. In addition, local news programming can provide access to advertising sources targeted specifically to local news viewers. Our news stations also produce content on digital platforms such as websites, mobile applications, and social media.

During 2016, we expanded news in 11 markets and plan to add additional newscasts in 14 markets in 2017.  During the year ended December 31, 2016, 32% of our net time sales were earned during the local news we produce each week.

Our local news initiatives are an important part of our strategy. We have entered into local news sharing arrangements in which we receive news in 20 markets from other in-market broadcasters and provide news in 3 markets to other in-market broadcasters. We believe that, in the markets where we have news share arrangements, such arrangements generally provide both higher viewer ratings and revenues for the station receiving the news and generate a profit for the news share provider. Generally, both parties and the local community are beneficiaries of these arrangements.

In addition to our traditional local news stories, we have utilized our national reach and placement in the nation's capital to provide our local viewers with broader national news stories which are relevant to our local viewers.

Our local news coverage is complemented with airing Full Measure. Additionally, our national news desk and Capitol Hill bureau news teams produce daily unique stories unavailable from other sources and focused on government accountability storytelling that provides a significant point of difference for our stations. Available on-air and online, the bureau not only expands our news presence, but gives our local station viewers an opportunity to hear the views of their members of Congress through programs such as "Connect to Congress," our weekly on-air and digital feature which provides an electronic video pathway for lawmakers to speak to their constituents.

We also provide our viewers with "Town Halls," which brings together our viewers to discuss major local and national topics. During 2016 we produced "Town Halls" covering both local and national elections, including political debates, immigration, firearms, drugs, the Black Lives Matter Movement, and law enforcement and community. During 2017, we expect to produce over 100 hours of such coverage.

As discussed under Expansion of digital and internet below, in 2016 we launched Circa, a national online digital news operation aimed at the Millennial demographic which both leverages and adds to our local and national new coverage.

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Popular Sporting Events.  At some of our stations, we have been able to acquire local television broadcast rights for certain sporting events, including NBA basketball, MLB, NFL football, NHL hockey, ACC basketball and both Big Ten and SEC football and basketball and certain other college and high school sports. Our CW and MyNetworkTV stations generally face fewer preemption restrictions on broadcasting live local sporting events compared with our FOX, ABC, CBS and NBC stations, which are required to broadcast a greater number of hours of programming supplied by the networks. In addition, our stations that are affiliated with FOX, ABC, CBS and NBC have network arrangements to broadcast certain NBA basketball games, MLB baseball games, NFL football games, NHL hockey games, NASCAR races and PGA golf events, as well as other popular sporting events. Tennis has telecast rights to the U.S. Open, Wimbledon, Roland Garros (French Open), Australian Open, Emirates Airline US Open Series, ATP World Tour Masters 1000 events, top-tier WTA competitions, Davis Cup and Fed Cup by BNP Paribas, and Hopman Cup. Our stations also broadcast programming and other content provided by ASN and Tennis. Also, we provide access to certain events through our premium OTT offering, Tennis Channel Plus. See Development of Original Networks and Content below for the discussion related to the operating strategy of Tennis and ASN.

Control of Operating and Programming Costs.  By employing a disciplined approach to managing programming acquisition and other costs, we have been able to achieve operating margins that we believe are very competitive within the television broadcast industry. We believe our national reach as of December 31, 2016 of over 38.0% of the country provides us with a strong position to negotiate with programming providers and, as a result, the opportunity to purchase high quality programming at more favorable prices. Moreover, we emphasize control of each of our station’s programming and operating costs through program-specific profit analysis, detailed budgeting, regionalization of staff and detailed long-term planning models. We also control our programming cost by creating original high-quality programming that is distributed on our broadcast platform. This original programming includes our ASN and COMET networks, and ROH and Full Measure programs.

Developing Local Franchises.  We believe the greatest opportunity for a sustainable and growing customer base lies within our local communities. Therefore, we have focused on developing a strong local sales force at each of our television stations, which is comprised of approximately 700 sales account executives and 100 local sales managers company-wide. Excluding political advertising revenue, retransmission revenues, and other local revenues, 70.5% and 71.1% of our same station net time sales were local for the years ended December 31, 2016 and 2015 respectively. Market share survey results reflect that our stations' share of the local television advertising market decreased to 24.6% in 2016 from 25.2% in 2015. Our goal is to grow our local revenues by increasing our market share and by developing new business opportunities and offering marketing solutions across our platforms.

Attract and Retain High Quality Management.  We believe that much of our success is due to our ability to attract and retain highly skilled and motivated managers at both the corporate and local station levels.  We provide a combination of base salary, long-term incentive compensation including equity awards and, where appropriate, cash bonus pay designed to be competitive with comparable employers in the television broadcast industry.  A significant portion of the compensation available to certain members of our senior management and our sales force is based on their achievement of certain performance goals. We also encourage station managers and employees to utilize our diverse station group to grow in their careers while remaining in the Sinclair family of stations via internal promotion and relocation.

Multi-Channel Broadcasting.  FCC rules allow broadcasters to transmit additional digital channels within the spectrum allocated to each FCC license holder. This provides viewers with additional programming alternatives at no additional cost to them. We may consider other alternative programming formats that we could air using our multi-channel digital spectrum space with the goal towards achieving higher profits and community service. As of December 31, 2016, we have 310 multi-channels in our digital spectrum.

Retransmission Consent Agreements.  We have retransmission consent agreements with MVPDs, such as cable, satellite and telecommunications operators in our markets.  MVPDs compensate us for the right to retransmit our broadcast signals.  Our successful negotiations with MVPDs have created agreements that now produce meaningful sustainable revenue streams.

Improvement and maintenance of our distribution platforms.  We continue to improve and maintain a strong distribution platform that consists of our traditional broadcast network and our digital platforms. Our Acrodyne and Dielectric subsidiaries are leaders in servicing and manufacturing broadcast infrastructure. As a result, we maintain a strong infrastructure through which we provide high quality uninterrupted content on our broadcast stations. Further, we expect that these subsidiaries will be critical in both the repack of the broadcast spectrum and the buildout of the infrastructure behind the Advanced Television Systems Committee standard 3.0 (ATSC 3.0) for both our stations and other broadcasters. See Development of Next Generation Broadcast Platforms (Next Gen) below for further discussion related to ATSC 3.0.

Developing New Business.  We strive to develop new business models to complement or enhance our traditional television broadcast business.  We have developed new ways to sell online, mobile text messaging and social media advertising along with

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our traditional commercial broadcasting model.  Additionally, we continue to leverage our national reach to provide new high quality content to our local communities.

We continue to expand our digital distribution platforms through initiatives such as our new video management system, which simplifies and automates our broadcast-to-digital streaming workflow and allows for dynamic replacement of broadcast ads with digital ads targeted to each individual viewer.  By using a single ad-serving system across all of our web sites, mobile apps and other digital assets, we are able to streamline our sales workflow, optimize yield and deliver comprehensive sales opportunities across our digital footprint. Additionally, we are deploying over-the-top initiatives (OTT), such as the NewsOn app, as well as our own content applications.

Strategic Realignment of Station Portfolio.  We routinely review and conduct investigations of potential television station acquisitions, dispositions and station swaps.  At any given time, we may be in discussions with one or more television station owners.

Development of Original Networks and Content. In March 2016, we acquired Tennis Channel. Unlike fully distributed cable networks that are in a declining business, Tennis Channel, with its live tournaments and matches, passionate fan base and established brand, is under-distributed. With the support of Sinclair and our relationships with the multi-video program distributors (MVPDs), we have been successful in negotiating significant increases in carriage with MVPDs, with more penetration expected. Among the many benefits of the expanded carriage and pairing their content with our broadcast promotional capabilities, are additional MVPD subscriber fees, viewers, and advertising revenues.

In October 2015, we led the market in launching the first-ever science fiction multicast network, COMET, featuring over 1,500 hours of premium MGM content and already reaching approximately 70 million households with more coverage expected. In January 2017, we announced that we plan to follow COMET's success with the first quarter of 2017 launch of CHARGE!, a new 24/7 adventure and action-based network that will feature more than 2,300 hours of TV series content and more than 2,000 movie titles. CHARGE! is expected to reach in excess of 50% of the country by the end of the second quarter by way of distribution deals outside of Sinclair’s footprint.

We seek to expand our sports broadcasting in DMAs as profitable opportunities arise. ASN became a 24/7 sports network in January 2016 and is currently carried in 19 markets which we plan to expand as we build a regional strategy with a national reach. ASN has sports rights agreements with a number of distinguished NCAA Division I conferences including Conference USA, the Colonial Athletic Association, Mid-Atlantic Athletic Conference, Ivy League, and American Athletic Conference. In addition to its college initiative, ASN produces local high school sports under the “Thursday Night Lights” and “Friday Night Rivals” brands.

In early 2017, we plan to launch TBD, the first multiscreen TV network in the U.S. market to bring premium internet-first content to TV homes across America. TBD will include web series, short films, fashion, comedy, lifestyle, eSports, music and viral content, through partnerships with creators such as Nerdist, Whistle Sports, Geek and Sundry, The Lizzie Bennet Diaries, Kinonation Movies, and Fail Army.

Expansion of digital and internet. In 2016, we launched Circa, a national online digital news operation aimed at the Millennial demographic. The site is focused on issues trending from around the country, delivered in an independent-minded style, with a heavy focus on short and long form video, optimized for mobile and social media engagement. In addition to its unique stories, news talent and creativity, Circa has the added benefit of capitalizing on our broadcast branding and promotional platform to drive viewing impressions, an opportunity not available to other online news providers.

We have leveraged our digital expertise by launching Compulse through which we run effective, integrated, and multi-platform digital marketing programs that drive loyalty, engage consumers and help businesses achieve their goals.

These innovative products and extension of our core broadcast business allow us to compete for digital, internet, network, and print impressions and revenues. We continue to seek additional opportunities to invest in emerging digital technologies and digital content companies that support and expand Sinclair's digital capabilities and non-linear footprint.

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Development of Next Generation Broadcast Platforms (Next Gen). ONE Media has developed, successfully demonstrated, and received approval for inclusion in the ATSC 3.0 transmission standard, the critical signaling and framing technology that is core to building Next Gen. ATSC 3.0 is an enhancement to the current broadcast standard and provides for increased data bits that are mobile, universal and Internet Protocol (IP) based with conditional access. Next Gen provides a common IP pipe for broadband and broadcast convergence and compelling hybrid functionality; a way to make the broadcast platform an integral piece in the much broader wireless ecosystem. In addition, it opens opportunities to deliver enhanced core television services such as higher quality 4K “Ultra High Definition” video and immersive “3D Audio” sound, as well as the entire range of targeted advertising, personalized content delivery, and data collection and measurement. Additionally, Next Gen will allow us to deploy multiple new business opportunities. This could include partnerships with video and audio programming and other datacasting services, content delivery networks seeking to expand “edge” services, and other users seeking alternatives for regional and national content distribution.

Other Non-media Investments.  We have sought ways to diversify our business and return additional value to our shareholders through investments in non-media based businesses and real estate. We carry investments in various companies from different industries including sign design and fabrication and security alarm monitoring and bulk acquisition. In addition, we invest in various real estate ventures including developmental land, operating commercial and multi-family residential real estate properties and apartments. We also invest in private equity and structured debt / mezzanine financing investment funds. Currently, operating results from our investments represent a small portion of our overall operating results.

FEDERAL REGULATION OF TELEVISION BROADCASTING

The ownership, operation and sale of television stations are subject to the jurisdiction of the FCC, which acts under the authority granted by the Communications Act of 1934, as amended (the Communications Act).  Among other things, the FCC assigns frequency bands for broadcasting; determines the particular frequencies, locations and operating power of stations; issues, renews, revokes and modifies station licenses; regulates equipment used by stations; adopts and implements regulations and policies that directly or indirectly affect the ownership, operation and employment practices of stations; and has the power to impose penalties for violations of its rules and regulations of the Communications Act.

The following is a summary of certain provisions of the Communications Act and specific FCC regulations and policies.  Reference should be made to the Communications Act, FCC rules and the public notices and rulings of the FCC for further information concerning the nature and extent of federal regulation of broadcast stations.

License Grant and Renewal

Television stations operate pursuant to broadcasting licenses that are granted by the FCC for maximum terms of eight years and are subject to renewal upon application to the FCC.  During certain periods when renewal applications are pending, petitions to deny license renewals can be filed by interested parties, including members of the public.

  Although historically renewal of a license, including those of the Company, is granted in the vast majority of cases, even when petitions to deny are filed, there can be no assurance that the license of any station will be renewed or, if renewed, that the renewal terms will be for the maximum term permitted.

All of our stations' most recent license renewal applications have been granted for the maximum term permitted. The next television license renewal application cycle will begin on June 1, 2020.

Ownership Matters

General.  The Communications Act prohibits the assignment of a broadcast license or the transfer of control of a broadcast license without the prior approval of the FCC.  In determining whether to permit the assignment or transfer of control of, or the grant or renewal of, a broadcast license, the FCC considers a number of factors pertaining to the licensee, including compliance with various rules limiting common ownership of media properties, the “character” of the licensee and those persons holding “attributable” interests in that licensee and compliance with the Communications Act’s limitations on foreign ownership.  The FCC has indicated that in order to approve an assignment or transfer of a broadcast license the FCC must make an affirmative determination that the proposed transaction serves the public interest, not merely that the transaction does not violate its rules or shares factual elements with other transactions previously approved by the FCC, and that it may deny a transaction if it determines that the transaction was not in the public interest.

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The FCC generally applies its ownership limits to “attributable” interests held by an individual, corporation, partnership or other association.  In the case of corporations holding, or through subsidiaries controlling, broadcast licenses, the interests of officers, directors and those who, directly or indirectly, have the right to vote 5% or more of the corporation’s stock (or 20% or more of such stock in the case of insurance companies, investment companies and bank trust departments that are passive investors) are generally attributable.  In addition, pursuant to what is known as the equity-debt-plus rule, a major programming supplier or same-market media entity will be an attributable owner of a station if the supplier or same-market media entity holds debt or equity, or both, in the station that is greater than 33% of the value of the station’s total debt plus equity.  Further, the Communications Act generally prohibits foreign parties from having more than a 20% interest (voting or equity) in a broadcast licensee or more than a 25% interest in the parent of that licensee. Following a Declaratory Ruling in 2013 in which the Commission indicated that it was open to considering proposals for foreign investment in broadcast licenses that exceed the 25% benchmark on a case by case basis, on September 29, 2016, the FCC adopted a Report and Order which among other things, (i) simplified the foreign ownership approval process for broadcast licensees seeking to exceed the 25% benchmark and (ii) modified the methodology a licensee may use to determine compliance with the foreign ownership rules.

Sinclair and its subsidiaries are domestic corporations, and the members of the Smith family (who, as of December 31, 2016, together hold approximately 77.3% of the common voting rights of Sinclair) are all United States citizens.  Our amended and restated Articles of Incorporation (the Amended Certificate) contain limitations on alien ownership and control that are substantially similar to those contained in the Communications Act.  Pursuant to the Amended Certificate, we have the right to repurchase alien-owned shares at their fair market value to the extent necessary, in the judgment of the Board of Directors, to comply with the alien ownership restrictions.

Additional ownership rules as currently in effect are as follows:

Radio / Television Cross-Ownership Rule.  The FCC’s radio / television cross-ownership rule generally permits a party to own a combination of up to two television stations and six radio stations in the same market, depending on the number of independent media voices in the market.

Newspaper / Broadcast Cross-Ownership Rule.  The FCC’s rule generally prohibits the common ownership of a radio or television broadcast station and a daily newspaper in the same market.  We do not currently own any daily newspapers.

National Ownership Rule.  By statute, the national television viewing audience reach cap is 39%.  Under this rule, where an individual or entity has an attributable interest in more than one television station in a market, the percentage of the national television viewing audience encompassed within that market is only counted once.  Additionally, because VHF stations (channels 2 through 13) historically covered a larger portion of the market than UHF stations (channels 14 through 51), only half of the households in the market area of any UHF station were, until recently, included when calculating an entity’s national television viewing audience (commonly referred to as the UHF discount). On September 6, 2016, the FCC released a Report and Order eliminating the UHF discount. This Order is currently the subject of a Petition for Reconsideration filed with the FCC and Petitions for Review filed in the U.S. Court of Appeals for the D.C. Circuit. We cannot predict the outcome of these proceedings.

The majority of the stations we own and operate, or to which we provide programming services, are UHF.  As a result of the recent elimination of the UHF discount, counting all our present stations and pending transactions, we reach over 38% of U.S. households, limiting our future ability to make television station acquisitions.  If the UHF discount is restored, this would reduce our reach (for FCC purposes) to approximately 24% of U.S. households, which would expand our ability to make televisions station acquisitions in the future.  See Item 1A. Risk Factors for further discussion of the risk related to the outcome of rules governing the UHF discount.

Local Television (Duopoly) Rule.  A party may own television stations in adjoining markets, even if there is a digital noise limited service contour overlap between the two stations’ broadcast signals, and generally may own two stations in the same market only (i) if there is no digital overlap between the stations; or (ii) if the market containing both the stations will contain at least eight independently owned full-power television stations post-merger (the eight voices test) and not more than one station is among the top-four rated stations in the market.

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Local Marketing and Outsourcing Agreements

Certain of our stations have entered into agreements with other stations in the same market, through which we provide programming and operating services pursuant to time brokerage or local marketing agreements (LMAs) or provide sales services and other non-programming operating services pursuant to outsourcing agreements, such as joint sales agreements (JSAs) and shared services agreements (SSAs).  LMAs and JSAs are attributable where a licensee holds an attributable interest in a television station and (i) programs more than 15% of the weekly broadcast hours and/or (ii) sells more than 15% of the weekly advertising time on another television station in the same market.

LMAs existing prior to November 5, 1996 are currently grandfathered until further FCC action. In August 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of its media ownership rules and issued an order ("Ownership Order") which left most of the existing multiple ownership rules intact, but amended the rules to provide for the attribution of JSAs where two television stations are located in the same market, and a party with an attributable interest in one station sells more than 15% of the advertising time per week of the other station. JSAs existing as of March 31, 2014 were grandfathered until October 1, 2025, at which point they must be terminated, amended or otherwise come into compliance with the new rules. In addition, these "grandfathered" JSAs may be transferred or assigned without losing grandfathering status. These new rules could limit our future ability to create duopolies or other two station operations in certain markets. We cannot predict whether we will be able to terminate or restructure such arrangements prior to October 1, 2025, on terms that are as advantageous to us as the current arrangements. If we are required to terminate or modify our LMAs or JSAs, our business could be adversely affected in several ways, including losses on investments and termination penalties. Petitions for Reconsideration of the Ownership Order, including the new JSA attribution rules, were filed with the FCC and Petitions for Review of the Ownership Order were filed in the U.S. Court of Appeals for the D.C. Circuit. We cannot predict the outcome of these proceedings.  For more information on the risks, see Changes in rules on local marketing agreements within The FCC’s multiple ownership rules limit our ability to operate multiple television stations in some markets and may result in a reduction in our revenue or prevent us from reducing costs.  Changes in these rules may threaten our existing strategic approach to certain television markets within Risk Factors and Changes in the Rules on Television Ownership within Note 11. Commitments and Contingencies for further discussion.

In March, 2014, the FCC issued a public notice on the processing of broadcast television applications proposing sharing arrangements and contingent interests.  The public notice indicated that the FCC will closely scrutinize any broadcast assignment or transfer application that proposes that two or more stations in the same market will enter into an agreement to share facilities, employees and/or services or to jointly acquire programming or sell advertising including through a JSA, LMA or similar agreement and enter into an option, right of first refusal, put /call arrangement or other similar contingent interest, or a loan guarantee. In February 2017, this guidance was rescinded by the FCC.

Antitrust Regulation.  DOJ and the Federal Trade Commission have increased their scrutiny of the television industry and have reviewed matters related to the concentration of ownership within markets (including LMAs and outsourcing agreements) even when ownership or the LMA or other outsourcing agreement in question is permitted under the laws administered by the FCC or by FCC rules and regulations.  The DOJ takes the position that an LMA or other outsourcing agreement entered into in anticipation of a station’s acquisition with the proposed buyer of the station constitutes a change in beneficial ownership of the station which, if subject to filing under the Hart-Scott-Rodino Antitrust Improvements Act, cannot be implemented until the waiting period required by that statute has ended or been terminated.

Satellite Carriage

The Satellite Home Viewer Act (SHVA), as extended by The Satellite Home Viewer Improvement Act of 1999 (SHVIA), the Satellite Home Viewer Extension and Reauthorization Act (SHVERA), the Satellite Television Extension and Localism Act of 2010 (STELA) and the Satellite Television Extension and Localism Act Reauthorization (STELAR) among other things, (i) allows satellite carriers to provide local television signals by satellite within a station market, and to carry all local signals in any market where they carry any local signals, (ii) requires all television stations to elect to exercise certain “must-carry” or “retransmission consent” rights in connection with their carriage by satellite carriers, and (iii) authorizes satellite delivery of distant network signals, significantly viewed signals and local low-power television station signals into local markets under defined circumstances.

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Must-Carry / Retransmission Consent

Television broadcasters are required to make triennial elections to exercise either certain “must-carry” or “retransmission consent” rights in connection with their carriage by cable systems in each broadcaster’s local market.   By electing to exercise must-carry rights, a broadcaster demands carriage and receives a specific channel on cable systems within its DMA. Must carry rights are not absolute and are dependent on a number of factors which may or may not be present in a particular case.  Alternatively, if a broadcaster chooses to exercise retransmission consent rights, it can prohibit cable systems from carrying its signal or grant the appropriate cable system the authority to retransmit the broadcast signal for a fee or other consideration.  We have elected to exercise our retransmission consent rights with respect to all our stations. In February 2015, the FCC issued an order implementing certain statutorily required changes to its rules governing the duty to negotiate retransmission consent agreements in good faith. Under these rules, unless the stations are directly or indirectly under common de jure control as permitted under the regulations of the Commission, a station may not delegate authority to negotiate or approve a retransmission consent agreement to a station located in the same market or to a third party that negotiates together with another television station in the same market, nor may stations in the same market facilitate or agree to facilitate coordinated negotiation of retransmission consent terms for their stations in that market, including through the sharing of information.

Further, in September 2015, the FCC released a Notice of Proposed Rulemaking in response to a Congressional directive in STELAR to examine the “totality of the circumstances test” for good-faith negotiations of retransmission consent. The proposed rulemaking sought comment on new factors and evidence to consider in its evaluation of claims of bad faith negotiation, including service interruptions prior to a “marquee sports or entertainment event,” restrictions on online access to broadcast programming during negotiation impasses, broadcasters’ ability to offer bundles of broadcast signals with other broadcast stations or cable networks, and broadcasters’ ability to invoke the FCC’s exclusivity rules during service interruptions. On July 14, 2016, the FCC's Chairman announced that the FCC would not, at that time, proceed to adopt additional rules governing good faith negotiations of retransmission consent. No formal action has yet been taken on this Proposed Rulemaking, and we cannot predict if the full Commission will agree to terminate the Rulemaking without action.

Network Non-Duplication / Syndicated Exclusivity / Territorial Exclusivity

The FCC’s syndicated exclusivity rules allow local broadcast television stations to demand that cable operators black out syndicated non-network programming carried on “distant signals” (i.e. signals of broadcast stations, including so-called “superstations,” which serve areas substantially removed from the cable systems’ local community).  The FCC’s network non-duplication rules allow local broadcast, network affiliated stations to require that cable operators black out duplicate network programming carried on distant signals.  Both rules are subject to various exceptions and limitations.  In a number of markets in which we own or program stations affiliated with a network, a station that is affiliated with the same network in a nearby market is carried on cable systems in our markets.  Such significantly viewed signals are not subject to black out pursuant to FCC’s network non-duplication rules.  The carriage of two network stations on the same cable system could result in a decline of viewership, adversely affecting the revenues of our owned or programmed stations.  In March, 2014, the FCC issued a Report And Order And Further Notice Of Proposed Rulemaking, requesting comments on whether it has authority to, and should, eliminate or modify its network non-duplication and/or syndicated exclusivity rules.  This proceeding is pending and we cannot predict when or how the FCC will resolve that rulemaking.

Digital Television

FCC rules provide that television broadcast licensees may use their digital television (DTV) channels for a wide variety of services such as HD television, multiple standard definition television programming, audio, data and other types of communications, subject to the requirement that each broadcaster provide at least one free video channel equal in quality to the current technical standard and further subject to the requirement that broadcasters pay a fee of 5% of gross revenues from any DTV ancillary or supplementary service for which there is a subscription fee or for which the licensee receives a fee from a third party.

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Programming and Operations

  The Communications Act requires broadcasters to serve the “public interest.”  The FCC has relaxed or eliminated many of the more formalized procedures it had developed in the past to promote the broadcast of certain types of programming responsive to the needs of a station’s community of license.  FCC licensees continue to be required, however, to present programming that is responsive to the needs and interests of their communities and to maintain certain records demonstrating such responsiveness.  Complaints from viewers concerning a station’s programming may be considered by the FCC when it evaluates renewal applications of a licensee, although such complaints may be filed at any time and generally may be considered by the FCC at any time.  Stations also must pay regulatory and application fees and follow various rules promulgated under the Communications Act that regulate, among other things, political advertising, sponsorship identifications, obscene and indecent broadcasts and technical operations, including limits on radio frequency radiation. In addition, television licensees have obligations to create and follow employment outreach programs, provide a minimum amount of programming for children, comply with rules relating to the emergency alert system (EAS), maintain an online public inspection file and abide by regulations specifying requirements to provide closed captions for its programming. FCC licensees are, in general, responsible for the content of their broadcast programming, including that supplied by television networks.  Accordingly, there is a risk of being fined as a result of our broadcast programming, including network programming. 

Pending Matters

Congress and the FCC have under consideration and in the future may consider and adopt, new laws, regulations and policies regarding a wide variety of matters that could affect, directly or indirectly, the operation, ownership and profitability of our broadcast stations, result in the loss of audience share and advertising revenues for our broadcast stations and affect our ability to acquire additional broadcast stations or finance such acquisitions.

Other matters that could affect our broadcast properties include technological innovations and developments generally affecting competition in the mass communications industry, such as direct television broadcast satellite service, Class A television service, the continued establishment of wireless cable systems and low power television stations, digital television technologies, the internet and mobility and portability of our broadcast signal to hand-held devices.

Congress authorized the FCC to conduct so-called “incentive auctions” to auction and re-purpose broadcast television spectrum for mobile broadband use. Pursuant to the auction, television broadcasters submitted bids to receive compensation for relinquishing all or a portion of its rights in the television spectrum of their full-service and Class A stations. Low power stations were not eligible to participate in the auction and are not protected and therefore may be displaced or forced to go off the air as a result of the post-auction repacking process. This "reverse" portion of the spectrum auction was completed in early 2017. Based on the bids accepted by the FCC, we anticipate that we will receive later in 2017 an estimated $313.0 million of gross proceeds from the auction. The results of the auction are not expected to produce any material change in operations or results of the Company. In the repacking process associated with the auction, the FCC has reassigned some stations to new post-auction channels. We do not expect reassignment to new channels to have a material impact on our coverage. We received letters from the FCC in February 2017 notifying us that 93 of our stations have been assigned to new channels. The legislation authorizing the incentive auction provides the FCC with a $1.75 billion fund to reimburse reasonable costs incurred by stations that are reassigned to new channels in the repack. We expect that Dielectric will be critical in the repack of the broadcast spectrum for both our stations and other broadcasters.

Other Considerations

The preceding summary is not a complete discussion of all provisions of the Communications Act or other congressional acts or of the regulations and policies of the FCC, or in some cases, the DOJ.  For further information, reference should be made to the Communications Act other congressional acts and regulations and public notices circulated from time to time by the FCC, or in some cases, the DOJ.  There are additional regulations and policies of the FCC and other federal agencies that govern political broadcasts, advertising, equal employment opportunity and other matters affecting our business and operations.

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ENVIRONMENTAL REGULATION

Prior to our ownership or operation of our facilities, substances or waste that are, or might be considered, hazardous under applicable environmental laws may have been generated, used, stored or disposed of at certain of those facilities.  In addition, environmental conditions relating to the soil and groundwater at or under our facilities may be affected by the proximity of nearby properties that have generated, used, stored or disposed of hazardous substances.  As a result, it is possible that we could become subject to environmental liabilities in the future in connection with these facilities under applicable environmental laws and regulations.  Although we believe that we are in substantial compliance with such environmental requirements and have not in the past been required to incur significant costs in connection therewith, there can be no assurance that our costs to comply with such requirements will not increase in the future or that we will not become subject to new governmental regulations, including those pertaining to potential climate change legislation, that may impose additional restrictions or costs on us.  We presently believe that none of our properties have any condition that is likely to have a material adverse effect on our consolidated balance sheets, consolidated statements of operations or consolidated statements of cash flows.

COMPETITION

Our television stations compete for audience share and advertising revenue with other television stations in their respective DMAs, as well as with other advertising media such as MVPDs, cable networks, radio, newspapers, magazines, outdoor advertising, transit advertising, telecommunications providers, direct mail, and internet and other digital media, such as OTT.  Some competitors are part of larger organizations with substantially greater financial, technical and other resources than we have.  Other factors that are material to a television station’s competitive position include signal coverage, local program acceptance, network affiliation or program service, audience characteristics and assigned broadcast frequency.

Competition in the television broadcasting industry occurs primarily in individual DMAs.  Generally, a television broadcasting station in one DMA does not compete with stations in other DMAs.  Our television stations are located in highly competitive DMAs.  MVPDs can increase competition for a broadcast television station by bringing into its market additional cable network channels.  These narrow cable network channels are typically low rated, and, as a result, advertisements are inexpensive to the local advertisers.  In addition, certain of our DMAs are overlapped by over-the-air station from adjacent DMAs and MVPDs of stations from other DMAs, which tends to spread viewership and advertising expenditures over a larger number of television stations.

Television stations compete for audience share primarily on the basis of program popularity, which has a direct effect on advertising rates.  Our network affiliated stations are largely dependent upon the performance of network provided programs in order to attract viewers.  Non-network time periods are programmed by the station primarily with syndicated programs purchased for cash, cash and barter or barter-only, as well as through self-produced news, public affairs programs, live local sporting events, paid-programming and other entertainment programming.

Television advertising rates are based upon factors which include the size of the DMA in which the station operates, a program’s popularity among the viewers that an advertiser wishes to attract, the number of advertisers competing for the available time, the demographic makeup of the DMA served by the station, the availability of alternative advertising media in the DMA, the aggressiveness and knowledge of the sales forces in the DMA and development of projects, features and programs that tie advertiser messages to programming.  We believe that our sales and programming strategies allow us to compete effectively for advertising revenues within our DMAs.

The television broadcasting industry is continuously faced with technical changes and innovations, competing entertainment and communications media, changes in labor conditions and governmental restrictions or actions of federal regulatory bodies, including the FCC, any of which could possibly have a material effect on a television station’s operations and profits. 

Moreover, technology advances and regulatory changes affecting programming delivery through fiber optic lines, video compression, and new wireless uses could lower entry barriers for new video channels and encourage the further development of increasingly specialized “niche” programming.  Telephone companies are permitted to provide video distribution services, on a common carrier basis, as “cable systems” or as “open video systems,” each pursuant to different regulatory schemes.  Additionally, over-the-top (OTT) services allows consumers to consume programming on-demand and without a subscription with an MVPD. We continue to compete with the OTT services for viewership.

DTV technology allows us to provide viewers multiple channels of digital television over each of our existing standard digital channels, to provide certain programming in HD television format and to deliver other channels of information in the forms of data and programming to the internet, PCs, smart phones, tablet computers and mobile devices.  These additional capabilities may provide us with additional sources of revenue, as well as additional competition.

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We also compete for programming which involves negotiating with national program distributors or syndicators that sell first-run and rerun packages of programming.  Our stations compete for access to those programs against in-market broadcast station competitors for syndicated products and with national cable networks.  Public broadcasting stations generally compete with commercial broadcasters for viewers, but not for advertising dollars.

We believe we compete favorably against other television stations because of our management skill and experience, our ability historically to generate revenue share greater than our audience share, our network affiliations and program service arrangements and our local program acceptance.  In addition, we believe that we benefit from the operation of multiple broadcast properties, affording us certain non-quantifiable economies of scale and competitive advantages in the purchase of programming.

EMPLOYEES

As of December 31, 2016, we had approximately 8,400 employees.  Approximately 800 employees are represented by labor unions under certain collective bargaining agreements.  We have not experienced any significant labor problems and consider our overall labor relations to be good.

AVAILABLE INFORMATION

We regularly use our website as a source of company information and it can be accessed at www.sbgi.net. We make available, free of charge through our website, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such documents are electronically submitted to the SEC, who also makes these reports available at http://www.sec.gov.  In addition, a replay of each of our quarterly earnings conference calls is available on our website until the subsequent quarter’s earnings call.  The information contained on, or otherwise accessible through, our website is not a part of this Annual Report on Form 10-K and is not incorporated herein by reference.

ITEM 1A.RISK FACTORS

You should carefully consider the risks described below before investing in our securities.  Our business is also subject to the risks that affect many other companies such as general economic conditions, geopolitical events, competition, technological obsolescence and employee relations.  The risks described below, along with risks not currently known to us or that we currently believe are immaterial, may impair our business operations and our liquidity in an adverse way. 

Our advertising revenue can vary substantially from period to period based on many factors beyond our control.  This volatility affects our operating results and may reduce our ability to repay indebtedness or reduce the market value of our securities.

We rely on sales of advertising time for the majority of our revenues and, as a result, our operating results depend on the amount of advertising revenue we generate.  If we generate less advertising revenue, it may be more difficult for us to repay our indebtedness and the value of our business may decline.  Our ability to sell advertising time depends on:

• the levels of automobile advertising, which historically have represented about one quarter of our advertising revenue; for the year ended December 31, 2016, automobile advertising represented 22.5% of our net time sales and internet revenue;

• the health of the economy in the areas where our television stations are located and in the nation as a whole;

• the popularity of our programming and that of our competition;

• the levels of political advertising, which are affected by campaign finance laws and the ability of political candidates and political action committees to raise and spend funds, which are subject to seasonal fluctuations;

• the effects of declining live/appointment viewership as reported through rating systems and local television efforts to adopt and receive credit for same day viewing plus viewing on-demand thereafter;

• the effects of new rating methodologies;

• changes in the makeup of the population in the areas where our stations are located;

• the activities of our competitors, including increased competition from other forms of advertising-based mediums, such as other broadcast television stations, radio stations, MVPDs, internet and broadband content providers and other print, outdoor, and media outlets serving in the same markets;

• over-the-top (OTT) and other emerging technologies and their potential impact on cord-cutting;

• the impact of MVPD’s offering “skinny” programming bundles that may not include television broadcast stations;

• changes in pricing and sellout levels; and

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• other factors that may be beyond our control.

There can be no assurance that our advertising revenue will not be volatile in the future or that such volatility will not have an adverse impact on our business, financial condition or results of operations.

Our substantial indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt obligations.

We have a high level of debt, totaling $4,203.8 million at December 31, 2016, compared to the book value of shareholders’ equity of $557.9 million on the same date.  Our relatively high level of debt poses the following risks, particularly in periods of declining revenues:

• we may be unable to service our debt obligations, including payments on notes as they come due, especially during general negative economic, financial credit, and market industry conditions;

• we may use a significant portion of our cash flow to pay principal and interest on our outstanding debt, especially during general negative economic and market industry conditions;

• the amount available for working capital, capital expenditures, dividends and other general corporate purposes may be limited because a significant portion of cash flow is used to pay principal and interest on outstanding debt;

• our lenders may not be as willing to lend additional amounts to us for future working capital needs, additional acquisitions or other general corporate purposes;

• the cost to borrow from lenders may increase;

• our ability to access the capital markets may be limited, and we may be unable to issue securities with pricing or other terms that we find attractive, if at all;

• if our cash flow were inadequate to make interest and principal payments, we might have to restructure or refinance our indebtedness or sell one or more of our stations to reduce debt service obligations;

• we may be more vulnerable to adverse economic conditions than less leveraged competitors and thus, less able to withstand competitive pressures; and

• because the interest rate under the Bank Credit Agreement is a floating rate, any increase will reduce the funds available to repay our obligations and for operations and future business opportunities and will make us more vulnerable to the consequences of our leveraged capital structure.  As of December 31, 2016, approximately $1,637.8 million principal amount of our recourse debt relates to the Bank Credit Agreement.

Any of these events could reduce our ability to generate cash available for investment, debt repayment or capital improvements or to respond to events that would enhance profitability.

Commitments we have made to our lenders limit our ability to take actions that could increase the value of our securities and business or may require us to take actions that decrease the value of our securities and business.

Our existing financing agreements prevent us from taking certain actions and require us to meet certain tests.  These restrictions and tests may require us to conduct our business in ways that make it more difficult to repay unsecured debt or decrease the value of our securities and business.  These restrictions and tests include the following:

• restrictions on additional debt;

• restrictions on our ability to pledge our assets as security for indebtedness;

• restrictions on payment of dividends, the repurchase of stock and other payments relating to our capital stock;

• restrictions on some sales of certain assets and the use of proceeds from asset sales;

• restrictions on mergers and other acquisitions, satisfaction of conditions for acquisitions and a limit on the total amount of acquisitions without the consent of bank lenders;

• restrictions on permitted investments;

• restrictions on the lines of business we and our subsidiaries may operate; and

• financial ratio and condition tests including, the ratio of first lien indebtedness to adjusted EBITDA and the ratio of Sinclair Television Group, Inc. (STG) total indebtedness to adjusted EBITDA.

Future financing arrangements may contain additional restrictions and tests.  All of these restrictive covenants may limit our ability to pursue our business strategies, prevent us from taking action that could increase the value of our securities or may require actions that decrease the value of our securities.  In addition, we may fail to meet the tests and thereby default on one or more of our obligations (particularly if the economy weakens and thereby reduces our advertising revenues).  If we default on our obligations, creditors could require immediate payment of the obligations or foreclose on collateral. If this happens,

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we could be forced to sell assets or take other actions that could significantly reduce the value of our securities and business and we may not have sufficient assets or funds to pay our debt obligations.

A failure to comply with covenants under our debt instruments could result in a default under such debt instruments, acceleration of amounts due under our debt and loss of assets securing our loans.

Certain of our debt agreements contain cross-default provisions with our other debt, which means that a default under certain of our debt instruments may cause a default under certain indentures or the Bank Credit Agreement.

If we breach certain of our debt covenants, our lenders could require us to repay the debt immediately, and, if the debt is secured, could immediately take possession of the property securing such debt.  In addition, if any other lender declared its loan due and payable as a result of a default, the holders of our outstanding notes, along with the lenders under the Bank Credit Agreement, might be able to require us to pay those debts immediately.

As a result, any default under our debt covenants could have a material adverse effect on our financial condition and our ability to meet our obligations.

Any insolvency or bankruptcy proceeding relating to material third-party licensees as defined by our Bank Credit Agreement, would cause a default and potential acceleration under the Bank Credit Agreement.

Our Bank Credit Agreement contains certain cross-default provisions with certain material third-party licensees, defined as any party that owns the license assets of one or more television stations which we provide services to pursuant to LMAs and/or other outsourcing agreements and those stations provide 20% or more of our aggregate broadcast cash flows.  A default caused by an involuntary or voluntary petition filed for liquidation, reorganization or other relief of insolvency by a material third-party licensee, or a failure of a material third-party licensee to preserve and maintain its legal existence or any of its material rights, privileges or franchises including its broadcast licenses, would cause an event of default and potential acceleration under our Bank Credit Agreement. As of December 31, 2016, there were no material third party licensees as defined in our Bank Credit Agreement.

Despite current debt levels, we may be able to incur significantly more debt in the future, which could increase the foregoing risks related to our indebtedness.

At December 31, 2016, we had $483.3 million available (subject to certain borrowing conditions) for additional borrowings under the revolving credit facility (the Revolving Credit Facility) of the Bank Credit Agreement.  Under the terms of the debt instruments to which we are subject, and provided we meet certain financial and other covenants, we may be able to incur substantial additional indebtedness in the future, including additional senior debt and secured debt.  If we incur additional indebtedness, the risks described in the risk factors in this report relating to having substantial debt could intensify.

Our strategic acquisitions and investments could pose various risks and increase our leverage.

We have pursued and intend to selectively continue to pursue strategic acquisitions and investments, subject to market conditions, our liquidity and the availability of attractive acquisition and investment candidates, with the goal of improving our business.

We may not be able to identify other attractive acquisition or investment targets or we may not be able to fund additional acquisitions or investments in the future.  Acquisitions involve inherent risks, such as increasing leverage and debt service requirements and combining company cultures and facilities, which could have a material adverse effect on our results of operations and could strain our human resources.  We may not be able to successfully implement effective cost controls or increase revenues as a result of an acquisition.  In addition, future acquisitions may result in our assumption of unexpected liabilities and may result in the diversion of management’s attention from the operation of our core business.

Certain acquisitions, such as television stations, are subject to the approval of the FCC and potentially, other regulatory authorities.  The need for FCC and other regulatory approvals could restrict our ability to consummate future transactions and potentially require us to divest certain television stations if the FCC believes that a proposed acquisition would result in excessive concentration in a market, even if the proposed combinations may otherwise comply with FCC ownership limitations.

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Our investments in other non-media related businesses involve risks, including the diversion of resources, that may adversely affect our business or results of operations.

We have made investments in certain non-media related businesses. See Item 1. Business for further description of such investments and/or subsidiaries.  Managing the operations of these businesses and the costs incurred by these businesses involve risks, including the diversion of our management’s attention from managing the operations of our broadcast businesses and diverting other resources that could be used in our broadcast businesses. Such diversion of resources may adversely affect our business and results of operations.  In addition, our investments in real estate ventures carry inherent risks related to owning interests in real property, including, among others, the relative illiquidity of real estate, potential adverse changes in real estate market conditions, and changes in tenant preferences.  There can be no assurance that our investments in these businesses will yield a positive rate of return or otherwise be recoverable.

Financial and economic conditions may have an adverse impact on our industry, business, and results of operations or financial condition.

Financial and economic conditions could have an adverse effect on the fundamentals of our business, results of operations and/or financial condition.  Poor economic and industry conditions could have a negative impact on our industry or the industry of those customers who advertise on our stations, including, among others, the automotive industry and service businesses, each of which is a significant source of our advertising revenue.  Additionally, financial institutions, capital providers, or other consumers may be adversely affected.  Potential consequences of any financial and economic decline include:

• the financial condition of those companies that advertise on our stations and digital platforms, including, among others, the automobile manufacturers and dealers, may be adversely affected and could result in a significant decline in our advertising revenue;

• our ability to pursue the acquisition of attractive television and non-television assets may be limited if we are unable to obtain any necessary additional capital on favorable terms, if at all;

• our ability to pursue the divestiture of certain television and non-television assets at attractive values may be limited;

• the possibility that our business partners, such as counterparties to our outsourcing and news share arrangements, could be negatively impacted and our ability to maintain these business relationships could also be impaired; and

• our ability to refinance our existing debt on terms and at interest rates we find attractive, if at all, may be impaired;

• our ability to make certain capital expenditures may be significantly impaired; and

• the possibility of consumers cutting the cord, thereby impacting our retransmission revenues.

We purchase television programming in advance based on expectations about future revenues.  Actual revenues may be lower than our expectations.  If this happens, we could experience losses that may make our securities less valuable.

One of our most significant costs is network and syndicated programming.  Our ability to generate revenue to cover this cost may affect the value of our securities.  If a particular network or program is not popular in relation to its costs, we may not be able to sell enough advertising time to cover the cost. 

We generally purchase syndicated programming content from others rather than producing such content ourselves, therefore, we have limited control over the costs of the programming.  Often we must purchase syndicated programming several years in advance and may have to commit to purchase more than one year’s worth of programming.  We may replace programs that are doing poorly before we have recaptured any significant portion of the costs we incurred or before we have fully amortized the costs.  We also receive programming from networks with which we have network affiliation agreements. Generally, the agreements are for many years. The popularity of networks can affect revenue earned on those channels. Any of these factors could reduce our revenues or otherwise cause our costs to escalate relative to revenues.  These factors are exacerbated during a weak advertising market.

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We internally originate television programming in advance based on expectations about future revenues. Actual revenues could fluctuate and may be lower than our expectations. If this happens, we could experience losses that may make our securities less valuable.

The production of internally originated programming requires a large up-front investment and the revenues derived from the airing of internally originated programming primarily depends upon its acceptance by the public, which is difficult to predict. The commercial success of original content also depends upon the quality and acceptance of other competing content released into the marketplace at or near the same time, the availability of a growing number of alternative forms of entertainment, general economic conditions and their effects on consumer spending and other tangible and intangible factors, all of which can change and cannot be predicted with certainty. Any of these factors could reduce our revenues or otherwise cause our costs to escalate relative to revenues.  These factors are exacerbated during a weak advertising market. 

We may lose a large amount of programming if a network terminates its affiliation or program service arrangement with us, we are not able to negotiate arrangements at terms comparable to or more favorable than our current agreements, or if networks make programming available through services other than our local affiliates, which could increase our costs and/or reduce our revenue.

The networks produce and distribute programming in exchange for each station’s commitment to air the programming at specified times and for commercial announcement time during programming.  The amount and quality of programming provided by each network varies.  See Television Markets and Stations within Item 1. Business for a detailed listing of our stations and channels.

As network affiliation agreements come up for renewal, we (or licensees of the stations we provide programming and/or sales services to), may not be able to negotiate terms comparable to or more favorable than our current agreements.  The non-renewal or termination of any of our network affiliation agreements would prevent us from being able to carry programming of the relevant network.  This loss of programming would require us to obtain replacement programming, which may involve higher costs and which may not be as attractive to our target audiences, resulting in reduced revenues. Upon the termination of any of our network affiliation agreements, we would be required to establish a new network affiliation agreement for the affected station with another network or operate as an independent station.  At such time, the remaining value of the network affiliation asset could become impaired and we would be required to record impairment charges to write down the value of the asset to its estimated fair value.

We cannot predict the outcome of any future negotiations relating to our affiliation agreements or what impact, if any, they may have on our financial condition and results of operations.  In addition, the impact of an increase in reverse network compensation payments, under which we compensate the network for programming pursuant to our affiliation agreements, may have a negative effect on our financial condition or results of operations.

We may not be able to renegotiate retransmission consent agreements at terms comparable to or more favorable than our current agreements and networks with which we are affiliated are currently, or in the future are expected to, require us to share revenue from retransmission consent agreements with them.

As retransmission consent agreements expire, we may not be able to renegotiate such agreements at terms comparable to or more favorable than our current agreements.  This may cause revenues and/or revenue growth from our retransmission consent agreements to decrease under the renegotiated terms despite the fact that our current retransmission consent agreements include automatic annual fee escalators.  In addition, certain networks or program service providers with which we are affiliated are currently, or in the future are expected to, require us to share revenue from retransmission consent agreements with them as part of renewing expiring affiliation agreements or pursuant to certain rights contained in existing affiliation agreements. Generally, our retransmission consent agreements and agreements with networks or program service providers are for different lengths of time and expire in different periods. If we are unable to negotiate a retransmission consent agreement or the revenue received as part of those agreements declines over time, then we may be exposed to a reduction in or loss from retransmission revenue net of revenue shared with networks and program service providers. We cannot predict the outcome or provide assurances as to the outcome of any future negotiations relating to our affiliation agreements or what impact, if any, they may have on our financial condition and results of operations. During 2016, we entered into a consent decree with the FCC pursuant to an investigation regarding allegations made by an MVPD that we violated FCC rules around negotiating retransmission consent agreements. See Changes in the Rules on Television Ownership within Note 10. Commitments and Contingencies with the Consolidated Financial Statements for further discussion.

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The effects of the economic environment could require us to record an asset impairment of goodwill and indefinite-lived intangible assets.

We are required to analyze goodwill and certain other intangible assets for impairment.  The accounting guidance establishes a method of testing goodwill and broadcast licenses for impairment on an annual basis, or on an interim basis if an event occurs that would reduce the fair value of a reporting unit or an indefinite-lived asset below its carrying value.  For additional information regarding impairments to our goodwill and broadcast licenses, see Valuation of Goodwill and Intangible Assets and Equity and Cost Method Investments under Critical Accounting Policies and Estimates within Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 5.  Goodwill, Indefinite-Lived Intangible Assets and Other Intangible Assets withinthe Consolidated Financial Statements.

Key officers and directors have financial interests that are different and sometimes opposite from ours and we may engage in transactions with these officers and directors that may benefit them to the detriment of other security holders.

Some of our officers, directors and majority shareholders own stock or partnership interests in businesses that do business with us or otherwise do business that conflicts with our interests.  They may transact some business with us upon approval by the independent members of our board of directors even if there is a conflict of interest or they may engage in business competitive to our business and those transactions may benefit the officers, directors or majority shareholders to the detriment of our security holders.  Each of David D. Smith, Frederick G. Smith, and J. Duncan Smith is an officer and director of Sinclair and Robert E. Smith is a director of Sinclair.  Together, the Smiths hold shares of our common stock that control the outcome of most matters submitted to a vote of shareholders.

David D. Smith, Frederick G. Smith, J. Duncan Smith, Robert E. Smith and David B. Amy, our Vice Chairman, together own interests (less than 5% in aggregate) in Allegiance Capital Limited Partnership, a limited partnership in which we also hold an interest.  Frederick G. Smith owns an interest (less than 1%) in Patriot Capital II, L.P., a limited partnership in which we also hold an interest.  David Smith owns an interest (less than 3%) in Towson Row LLC, a real estate venture, in which we also hold an interest.  For additional information regarding our related person transactions, see Note 11. Related Person Transactions within the Consolidated Financial Statements.  We can give no assurance that these transactions or any transactions that we may enter into in the future with our officers, directors or majority shareholders, have been, or will be, negotiated on terms as favorable to us as we would obtain from unrelated parties.  Maryland law and our financing agreements limit the extent to which our officers, directors and majority shareholders may transact business with us and pursue business opportunities that we might pursue.  These limitations do not, however, prohibit all such transactions.

We depend on key personnel and we may not be able to operate and grow our business effectively if we lose the services of our senior executive officers or are unable to attract and retain qualified personnel in the future.

We depend on the efforts of our management and other key employees.  The success of our business depends heavily on our ability to develop and retain management and to attract and retain qualified personnel in the future.  Competition for senior management personnel is intense, and we may not be able to retain our key personnel.  If we are unable to do so, our business, financial condition or results of operations may be adversely affected.

The Smiths exercise control over most matters submitted to a shareholder vote and may have interests that differ from other security holders.  They may, therefore, take actions that are not in the interests of other security holders.

David D. Smith, Frederick G. Smith, J. Duncan Smith and Robert E. Smith hold shares representing approximately 77.4% of the common stock voting rights of the Company and, therefore, control the outcome of most matters submitted to a vote of shareholders, including, but not limited to, electing directors, adopting amendments to our certificate of incorporation and approving corporate transactions.  The Smiths hold substantially all of the Class B Common Stock, which have ten votes per share.  Our Class A Common Stock has only one vote per share.  In addition, the Smiths hold half our board of directors’ seats and, therefore, have the power to exert significant influence over our corporate management and policies.  The Smiths have entered into a stockholders’ agreement pursuant to which they have agreed to vote for each other as candidates for election to our board of directors until December 31, 2025.

Although in the past the Smiths have recused themselves from related person transactions, circumstances may occur in which the interests of the Smiths, as the controlling security holders, could be in conflict with the interests of other security holders and the Smiths would have the ability to cause us to take actions in their interest.  In addition, the Smiths could pursue acquisitions, divestitures or other transactions that, in their judgment, could enhance their equity investment, even though such transactions might involve risks to our other security holders.  Further, the concentration of ownership the Smiths have may have the effect of discouraging, delaying or preventing a future change of control, which could deprive our stockholders

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of an opportunity to receive a premium for their shares as part of a sale of our company and might reduce the price of our shares.

(See Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters and Item 13. Certain Relationships and Related Transactions, which will be included as part of our Proxy Statement for our 2016 Annual Meeting.)

Significant divestitures by the Smiths could cause them to own or control less than 51% of the voting power of our shares, which would in turn give Cunningham the right to terminate the LMAs and other outsourcing agreements with Cunningham due to a “change in control.”  Any such terminations would have an adverse effect on our results of operations.  The FCC’s multiple ownership rules limit our ability to operate multiple television stations in some markets and may result in a reduction in our revenue or prevent us from reducing costs.  Changes in these rules may threaten our existing strategic approach to certain television markets.  See the risk factor below regarding the FCC's multiple ownership rules.

We may be subject to fines and other penalties related to violations of FCC indecency rules and other FCC rules and policies, the enforcement of which has increased in recent years, and complaints related to such violations may delay our renewal applications with the FCC.

We provide a significant amount of live news reporting that is provided by the broadcast networks or is controlled by our on-air news talent.  Although both broadcast network and our on-air talent have generally been professional and careful in what they say, there is always the possibility that information may be reported that is inaccurate or even in violation of certain indecency rules promulgated by the FCC.  In addition, entertainment and sports programming provided by broadcast syndicators and networks may contain content that is in violation of the indecency rules promulgated by the FCC.  Because the interpretation by the courts and the FCC of the indecency rules is not always clear, it is sometimes difficult for us to determine in advance what may be indecent programming.  We have insurance to cover some of the liabilities that may occur, but the FCC has enhanced its enforcement efforts relating to the regulation of indecency.  Violation of the indecency rules could potentially subject us to penalties, license revocation, or renewal or qualification proceedings.  There can be no assurance that an incident that may lead to significant fines or other penalties by the FCC can be avoided.

From time to time, we may have received or been promised payment for airing program material. FCC rules require that all such sponsored material be explicitly identified at the time of the broadcast as paid for and by whom, except when it is clear that the mention of a product or service constitutes sponsorship identification. There can be no assurance that an incident that may lead to significant fines or other penalties by the FCC can be avoided. The FCC has undertaken an investigation in response to a complaint it received alleging possible violations of the FCC’s sponsorship identification rules by the Company. We cannot predict the outcome of any potential FCC action related to this matter but it is possible that such action could include fines and/or compliance programs.

Federal regulation of the broadcasting industry limits our operating flexibility, which may affect our ability to generate revenue or reduce our costs.

The FCC regulates our business, just as it does all other companies in the broadcasting industry.  We must obtain the FCC’s approval whenever we need a new license, seek to renew, assign or modify a license, purchase a new station, sell an existing station or transfer the control of one of our subsidiaries that hold a license.  Our FCC licenses and those of the licensees which we provide services to pursuant to LMAs and other outsourcing agreements are critical to our operations; we cannot operate without them.  We cannot be certain that the FCC will renew these licenses in the future or approve new acquisitions in a timely manner, if at all.  If licenses are not renewed or acquisitions are not approved, we may lose revenue that we otherwise could have earned.

In addition, Congress and the FCC may, in the future, adopt new laws, regulations and policies regarding a wide variety of matters (including, but not limited to, technological changes in spectrum assigned to particular services) that could, directly or indirectly, materially and adversely affect the operation and ownership of our broadcast properties.  (See Item 1. Business.)

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The FCC’s multiple ownership rules limit our ability to operate multiple television stations in some markets and may result in a reduction in our revenue or prevent us from reducing costs.  Changes in these rules may threaten our existing strategic approach to certain television markets.

Television ownership

As discussed in National Ownership Rule within Federal Regulation of Television Broadcasting within Item 1. Business, in September 2016, the FCC recently eliminated the UHF discount. Because we are near the 39% cap without application of the UHF discount, this change, could limit our ability to acquire television stations in additional markets. The FCC’s elimination of the UHF discount is currently the subject of a Petition for Reconsideration filed with the FCC and Petitions for Review filed in the U.S. Court of Appeals for the D.C. Circuit. We cannot predict the outcome of these proceedings.

Under federal law, the FCC is required to review its ownership rules every four years (a ‘‘Quadrennial Review’’) to determine whether they are necessary in the public interest as the result of competition and to repeal or modify any regulation the FCC determines to be no longer in the public interest.

In August 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of tis media ownership rules and issued an order (the "Ownership Order") which left most of the existing multiple ownership rules intact, but amended the rules to provide that, for JSAs where two television stations are located in the same market, and a party with an attributable ownership interest in the second station. The Ownership Order also requires that JSAs that existed prior to March 31, 2014, may remain in place until October 1, 2025, at which point they must be terminated, amended or otherwise come into compliance with the rules. These "grandfathered" JSAs may be transferred or assigned without losing grandfathering status. Among other things, the new JSA rule could limit our future ability to create duopolies or other two-station operations in certain markets. We cannot predict whether we will be able to terminate or restructure such arrangements prior to October 1, 2025, on terms that are as advantageous to us as the current arrangements.  The revenues of these JSA arrangements we earned during the years ended December 31, 2016 and 2015 were $58.6 million and $46.8 million, respectively. The Ownership Order is the subject of an appeal to the U.S. Court of Appeals for the D.C. Circuit and of Petitions for Reconsideration before the FCC. We cannot predict the outcome of that appeal or petitions.

Certain of our stations have entered into what have commonly been referred to as local marketing agreements or LMAs.  One typical type of LMA is a programming agreement between two separately owned television stations serving the same market, whereby the licensee of one station programs substantial portions of the broadcast day and sells advertising time during such programming segments on the other licensee’s station subject to the ultimate editorial and other controls being exercised by the latter licensee. We believe these arrangements allow us to reduce our operating expenses and enhance profitability. During the year ended December 31, 2016 and 2015, we generated net revenue from our LMAs of $88.7 million and $109.7 million, respectively.

In addition to our LMAs, we have entered into outsourcing agreements (such as JSAs) whereby 31 stations provide various non-programming related services such as sales, operational and managerial services to or by other stations within the same markets.  We believe this structure allows stations to achieve operational efficiencies and economies of scale, which should otherwise improve broadcast cash flow and competitive positions. For additional information, refer to Television Markets and Stations within Item 1. Business.

See Changes in the Rules on Television Ownership within Note 10. Commitments and Contingencies with the Consolidated Financial Statements for further discussion.

If we are required to terminate or modify our LMAs and other outsourcing agreements, our business could be affected in the following ways:

• Loss of revenues.  If the FCC requires us to modify or terminate existing arrangements, we would lose some or all of the revenues generated from those arrangements.  We would lose revenue because we will have fewer demographic options, a smaller audience distribution and lower revenue share to offer to advertisers.

• Increased costs.  If the FCC requires us to modify or terminate existing arrangements, our cost structure would increase as we would potentially lose significant operating synergies and we may also need to add new employees.  With termination of LMAs, we likely would incur increased programming costs because we will be competing with the separately owned station for syndicated programming.

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• Losses on investments.  As part of certain of our arrangements, we own the non-license assets used by the stations with which we have arrangements.  If certain of these arrangements are no longer permitted, we would be forced to sell these assets, restructure our agreements or find another use for them.  If this happens, the market for such assets may not be as good as when we purchased them and, therefore, we cannot be certain of a favorable return on our original investments.

• Termination penalties.  If the FCC requires us to modify or terminate existing arrangements before the terms of the arrangements expire, or under certain circumstances, we elect not to extend the terms of the arrangements, we may be forced to pay termination penalties under the terms of certain of our arrangements.  Any such termination penalties could be material.

• Alternative arrangements.  If the FCC requires us to terminate the existing arrangements, we may enter into one or more alternative arrangements.  Any such arrangements may be on terms that are less beneficial to us than the existing arrangements.

Failure of owner / licensee to exercise control

The FCC requires the owner / licensee of a station to maintain independent control over the programming and operations of the station.  As a result, the owners / licensees of those stations with which we have LMAs can exert their control in ways that may be counter to our interests, including the right to preempt or terminate programming in certain instances.  The preemption and termination rights cause some uncertainty as to whether we will be able to air all of the programming that we have purchased under our LMAs and therefore, uncertainty about the advertising revenue that we will receive from such programming.  In addition, if the FCC determines that the owner / licensee is not exercising sufficient control, it may penalize the owner licensee by a fine, revocation of the license for the station or a denial of the renewal of that license.  Any one of these scenarios, especially the revocation of or denial of renewal of a license, might result in a reduction of our cash flow or margins and an increase in our operating costs.  In addition, penalties might also affect our qualifications to hold FCC licenses, putting our own licenses at risk.

The pendency and indeterminacy of the outcome of these ownership rules, which may limit our ability to provide services to additional or existing stations pursuant to licenses, LMAs, outsourcing agreements or otherwise, expose us to a certain amount of volatility, particularly if the outcomes are adverse to us.  Further, resolution of these ownership rules has been and will likely continue to be a cost burden and a distraction to our management and the continued absence of a resolution may have a negative effect on our business.

The FCC’s National Broadband Plan may result in a loss of spectrum for our stations potentially adversely impacting our ability to compete.

As discussed in Pending Matters under Federal Regulation of Television Broadcasting within Item. 1 Business, Congress has authorized the FCC to conduct so-called “incentive auctions” to auction and repurpose broadcast television spectrum for mobile broadband use. Even though participation in the incentive auction is voluntary, a broadcaster may still be required to relocate its station to another channel or make technical changes to facilitate repacking the band. Pursuant to the auction, television broadcasters submitted bids to receive compensation for relinquishing all or a portion of its rights in the television spectrum of their full-service and Class A stations. The reverse portion of the spectrum auction was completed in early 2017. Based on the bids accepted by the FCC, we anticipate that we will receive later in 2017 an estimated $313.0 million of gross proceeds from the auction. The results of the auction are not expected to produce any material change in the operations or results of the Company. In the repacking process associated with the auction, the FCC has reassigned some stations to new post-auction channels. We received letters from the FCC in February 2017 notifying us that 93 of our stations have been assigned to new channels. The legislation authorizing the incentive auction provides the FCC with a $1.75 billion fund to reimburse certain costs incurred by stations that are reassigned to new channels in the repack.

We further cannot predict the outcome of the incentive auction or its effect upon our ability to compete. Additionally, we cannot predict whether the FCC or Congress might adopt even more stringent requirements or incentives to abandon current spectrum if the incentive auction does not have the desired result of freeing what the agency deems to be sufficient spectrum for wireless broadband use.

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Competition from other broadcasters or other content providers and changes in technology may cause a reduction in our advertising revenues and/or an increase in our operating costs.

New technology and the subdivision of markets

Cable providers, direct broadcast satellite companies and telecommunication companies are developing new technology that allows them to transmit more channels on their existing equipment to highly targeted audiences, reducing the cost of creating channels and potentially leading to the division of the television industry into ever more specialized niche markets. Competitors who target programming to such sharply defined markets may gain an advantage over us for television advertising revenues. The decreased cost of creating channels may also encourage new competitors to enter our markets and compete with us for advertising revenue. In addition, technologies that allow viewers to digitally record, store and play back television programming may decrease viewership of commercials as recorded by media measurement services such as Nielsen Media Research and, as a result, lower our advertising revenues. The current ratings provided by Nielsen for use by broadcast stations are limited to live viewing Digital Video Recording playback and give broadcasters no credit whatsoever for viewing that occurs on a delayed basis after the original air date. However, the effects of new ratings system technologies, including ‘‘code readers’’, ‘‘viewer assignment’’, ‘‘people meters’’ and ‘‘set-top boxes,’’ and the ability of such technologies to be a reliable standard that can be used by advertisers is currently unknown. The Media Rating Council, an independent organization that monitors rating services, in the 154 markets it measures ratings exclusively by its diary methodology. As of December 31, 2016, approximately 42 of out 81 markets are diary only markets.

Since digital television technology allows broadcasting of multiple channels within the additional allocated spectrum, this technology could expose us to additional competition from programming alternatives. In addition, technological advancements and the resulting increase in programming alternatives, such as cable television, direct broadcast satellite systems, pay-per-view, home video and entertainment systems, video-on-demand, OTT, mobile video and the Internet have also created new types of competition to television broadcast stations and will increase competition for household audiences and advertisers. We cannot provide any assurances that we will remain competitive with these developing technologies.

Types of competitors

We also face competition from rivals that may have greater resources than we have.  These include:

• other local free over-the-air broadcast television and radio stations;

• telecommunication companies;

• cable and satellite system operators and cable networks;

• print media providers such as newspapers, direct mail and periodicals;

• internet search engines, internet service providers, websites, and mobile applications; and

• other emerging technologies including mobile television, over-the-top technologies, and MVPD "skinny" packages.

Deregulation

The Telecommunications Act of 1996 and subsequent actions by the FCC and the courts have removed some limits on station ownership, allowing telephone, cable and some other companies to provide video services in competition with us.  In addition, the FCC has reallocated and auctioned off a portion of the spectrum for new services including fixed and mobile wireless services and digital broadcast services.  As a result of these changes, new companies are able to enter our markets and compete with us.

We have invested and will continue to invest in new technology initiatives which may not result in usable technology.

We have heavily invested in the development of the Next Gen platforms as discussed in Development of Next Generation Broadcast Platforms (Next Gen) within Operating Strategy within Item 1. Business. We do not know whether the outcome of our research and development will result in technology that will be usable on our distribution platform or available to license to third parties. Additionally, even if our efforts result in usable technology, we do not know whether it will be included within the ATSC 3.0 framework. Any failure to develop this technology could result in the loss of our investment. Our cost incurred related to the development of the Next Gen platform is recorded within research and development within our consolidated statement of operations.

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We could be adversely affected by labor disputes and legislation and other union activity.

The cost of producing and distributing entertainment programming has increased substantially in recent years due to, among other things, the increasing demands of creative talent and industry-wide collective bargaining agreements.  Although we generally purchase programming content from others rather than produce such content ourselves, our program suppliers engage the services of writers, directors, actors and on-air and other talent, trade employees and others, some of whom are subject to these collective bargaining agreements.  Approximately 800 of our employees, are represented by labor unions under collective bargaining agreements.  If we or our program suppliers are unable to renew expiring collective bargaining agreements, it is possible that the affected unions could take action in the form of strikes or work stoppages.  Failure to renew these agreements, higher costs in connection with these agreements or a significant labor dispute could adversely affect our business by causing, among other things, delays in production that lead to declining viewers, a significant disruption of operations and reductions in the profit margins of our programming and the amounts we can charge advertisers for time.  Our stations also broadcast certain professional sporting events, including NBA basketball games, MLB baseball games, NFL football games, and other sporting events, and our viewership may be adversely affected by player strikes or lockouts, which could adversely affect our advertising revenues and results of operations.  Further, any changes in the existing labor laws, including the possible enactment of the Employee Free Choice Act, may further the realization of the foregoing risks.

Unrelated third parties may bring claims against us based on the nature and content of information posted on websites maintained by us.

We host internet services that enable individuals to exchange information, generate content, comment on our content, and engage in various online activities.  The law relating to the liability of providers of these online services for activities of their users is currently unsettled both within the United States and internationally.  Claims may be brought against us for defamation, negligence, copyright or trademark infringement, unlawful activity, tort, including personal injury, fraud, or other theories based on the nature and content of information that may be posted online or generated by our users.  Our defense of such actions could be costly and involve significant time and attention of our management and other resources.

Costs of complying with changes in governmental laws and regulations may adversely affect our results of operations.

We cannot predict what other governmental laws or regulations will be enacted in the future, how future laws or regulations will be administered or interpreted or how future laws or regulations will affect us.  Compliance with new laws or regulations, including proposed legislation to address climate change, or stricter interpretation of existing laws, may require us to incur significant expenditures or impose significant restrictions on us and could cause a material adverse effect on our results of operations.

Changes in accounting standards can affect reported earnings and results of operations.

Generally accepted accounting principles and accompanying pronouncements and implementation guidelines for many aspects of our business, including those related to revenues, leases, consolidation, programming, intangible assets, pensions, income taxes, share-based compensation and broadcast rights, are complex and involve significant judgments. Changes in rules or their interpretation could significantly change our reported earnings, results of operations, and compliance with debt covenants.

If we fail to maintain the requirements for continued listing on the NASDAQ stock market, our common stock could be delisted from trading, which would adversely affect the liquidity of our common stock and our ability to raise additional capital.

Our common stock is currently listed for quotation on the NASDAQ stock market. We are required to meet specified listing criteria in order to maintain our listing. If we fail to satisfy continued listing requirements, our common stock could be delisted. Any potential delisting of our common stock from the NASDAQ would make it more difficult for our stockholders to sell our stock in the public market and would likely result in decreased liquidity and increased volatility for our common stock.

Terrorism or armed conflict domestically or abroad may negatively impact our advertising revenues and results of operations.  Future conflicts, terrorist attacks or other acts of violence may have a similar effect.

If the United States becomes engaged in global conflicts in the future, there may be an adverse effect on our results of operations.  Also, any terrorist attacks or other acts of violence may have a similar negative effect on our business or results of operations.

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Cybersecurity risks, cyber incidents, data privacy, and other information technology failures could adversely affect our business and disrupt operations.

Our information technology systems are critically important to operating our business efficiently and effectively. We rely on our information technology systems to manage our business data, communications, news and advertising content, digital products, order entry, fulfillment and other business processes. Despite our security measures, network and information systems‑related events, such as computer hackings, cyber threats, security breaches, viruses or other destructive or disruptive software, process breakdowns, or malicious or other activities, and natural or other disasters could result in a disruption of our services and operations. These events could also result in, but are not limited to, the improper disclosure of personal data or confidential information, including through third parties which receive any of such information on a confidential basis for business purposes and could be subject to any of these events, and damage our reputation and require us to expend resources to remedy any such breaches. The occurrence of any of these events could have a material adverse effect on our business and results of operations.

ITEM 1B.UNRESOLVED STAFF COMMENTS

None.

ITEM 2.PROPERTIES

Generally, each of our stations has facilities consisting of offices, studios, sales offices, and tower and transmitter sites.  Transmitter and tower sites are located in areas to provide maximum signal coverage to our stations’ markets.  We believe that all of our properties, both owned and leased, are generally in good operating condition, subject to normal wear and tear and are suitable and adequate for our current business operations. See Television Markets and Stations within Item 1. Business, for a listing of our station locations. We believe that no one property represents a material amount of the total properties owned or leased. The following is a summary of our principal owned and leased real properties as of December 31, 2016: 

	Owned		Leased
	Square Feet	Acres	Square Feet	Acres
Broadcast Related Real Estate
Office and studio properties	1,820,621	889	512,216	6
Antenna and transmitter properties	294,754	2,549	87,062	1,503
Other Operating Real Estate
Corporate offices	—	—	110,300	—
Office and warehouse property	1,250	—	290,702	—
Other Non-Media Investment Real Estate
Rental property	99,913	1	—	—
Recreational property	28,000	725	—	—
Land held for development	—	735	—	—

ITEM 3.LEGAL PROCEEDINGS

We are a party to lawsuits and claims from time to time in the ordinary course of business.  Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions.  After reviewing developments to date with legal counsel, our management is of the opinion that none of our pending and threatened matters are material. See Note 10. Commitments and Contingencies within the Consolidated Financial Statements for further discussion.

ITEM 4.MINE SAFETY DISCLOSURES

None.

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PART II

ITEM 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our Class A Common Stock is listed for trading on the NASDAQ stock market under the symbol SBGI.  Our Class B Common Stock is not traded on a public trading market or quotation system.  The following tables set forth for the periods indicated the high and low closing sales prices on the NASDAQ stock market for our Class A Common Stock.

2016	High		Low
First Quarter	$	31.25	$	30.11
Second Quarter	$	31.70	$	30.87
Third Quarter	$	29.33	$	28.67
Fourth Quarter	$	34.90	$	30.80

2015	High		Low
First Quarter	$	32.43	$	24.20
Second Quarter	$	32.03	$	27.52
Third Quarter	$	30.23	$	24.04
Fourth Quarter	$	35.89	$	24.80

As of February 20, 2017, there are approximately 50 shareholders of record of our Class A common stock.  This number does not include beneficial owners holding shares through nominee names.

See Note. 3 Stock-Based Compensation within the Consolidated Financial Statements for discussion of our stock-based compensation plans.

Dividend Policy

During 2015, our Board of Directors declared a quarterly dividend of $0.165 per share in the months of February, April, August and November, which were paid in March, June, September and December, respectively. Total dividend payments for the year ended December 31, 2015 were $0.66 per share.  During 2016, our Board of Directors declared a quarterly dividend of $0.165 per share in the month of February which was paid in March.  In May, August, and November our Board of Directors declared a quarterly dividend of $0.18 per share, which were paid out in June, September, and December, respectively. Total dividend payments for the year ended December 31, 2016 were $0.705 per share. In February 2017, our Board of Directors declared a quarterly dividend of $0.18 per share.  Future dividends on our common shares, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions and other factors that the Board of Directors may deem relevant.  The Class A Common Stock and Class B Common Stock holders have the same rights related to dividends.  Under our Bank Credit Agreement, there are certain terms that may restrict our ability to make dividend payments. See Note 8. Common Stock within the Consolidated Financial Statements for further discussion.

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Comparative Stock Performance

The following line graph compares the yearly percentage change in the cumulative total shareholder return on our Class A Common Stock with the cumulative total return of the NASDAQ Composite Index and the cumulative total return of the NASDAQ Telecommunications Index (an index containing performance data of radio and television broadcast companies and communication equipment and accessories manufacturers) from December 31, 2011 through December 31, 2016. The performance graph assumes that an investment of $100 was made in the Class A Common Stock and in each Index on December 31, 2011 and that all dividends were reinvested.  Total shareholder return is measured by dividing total dividends (assuming dividend reinvestment) plus share price change for a period by the share price at the beginning of the measurement period.

Company/Index/Market	12/31/2011	12/31/2012	12/31/2013	12/31/2014	12/31/2015	12/31/2016
Sinclair Broadcast Group, Inc.	100.00	127.97	372.10	291.11	353.97	371.10
NASDAQ Composite Index	100.00	116.41	165.47	188.69	200.32	216.54
NASDAQ Telecommunications Index	100.00	102.78	143.40	149.42	144.02	153.88

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The following table summarizes repurchases of our stock in the quarter ended December 31, 2016:

Period	Total Number of Shares Purchased (1)	Average Price Per Share	Total Number of Shares Purchased as Part of a Publicly Announced Program	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (in millions)
Class A Common Stock : (2)
10/01/16 – 10/31/16	876,760	28.07	876,760	129.7
11/01/16 – 11/30/16	405,500	25.99	405,500	119.1
12/01/16 – 12/31/16	—	—	—	—

(1)          All repurchases were made in open-market transactions.

(2)     On March 20, 2014, the Board of Directors authorized an additional $150.0 million share repurchase authorization. On September 6, 2016 the Board of Directors authorized an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. For the year ended December 31, 2016, we have purchased approximately 4.9 million shares of Class A Common Stock for $136.4 million. As of December 31, 2016, the total remaining authorization was $119.1 million.

ITEM 6.            SELECTED FINANCIAL DATA

The selected consolidated financial data for the years ended December 31, 2016, 2015, 2014, 2013 and 2012 have been derived from our audited consolidated financial statements.

The information below should be read in conjunction with Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements included elsewhere in this annual report on Form 10-K.

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STATEMENTS OF OPERATIONS DATA

(In thousands, except per share data)

	As of December 31,
	2016			2015			2014			2013			2012
Statements of Operations Data:
Media revenues (a)	$	2,499,549		$	2,011,946		$	1,784,641		$	1,219,091		$	922,161
Revenues realized from station barter arrangements	135,566			111,337			122,262			88,680			86,905
Other non-media revenues	101,834			95,853			69,655			55,360			52,613
Total revenues	2,736,949			2,219,136			1,976,558			1,363,131			1,061,679
Media production expenses	953,089			733,199			578,687			386,646			257,494
Media selling, general and administrative expenses	501,589			431,728			372,220			251,294			172,628
Expenses recognized from station barter arrangements	116,954			93,204			107,716			77,349			79,834
Depreciation and amortization (b)	282,324			264,887			228,787			141,374			85,172
Amortization of program contract costs and net realizable value adjustments	127,880			124,619			106,629			80,925			60,990
Other non-media expenses	80,648			71,803			55,615			45,005			42,892
Corporate general and administrative expenses	73,556			64,246			62,495			53,126			33,391
Research and development	4,085			12,436			6,918			—			—
(Gain) loss on asset dispositions	(6,029		)	278			(37,160		)	3,392			(7		)
Operating income	602,853			422,736			494,651			324,020			329,285
Interest expense and amortization of debt discount and deferred financing costs	(211,143		)	(191,447		)	(174,862		)	(162,937		)	(128,553		)
Loss from extinguishment of debt	(23,699		)	—			(14,553		)	(58,421		)	(335		)
Income from equity and cost method investees	1,735			964			2,313			621			9,670
Other income, net	3,144			1,540			4,998			2,225			2,273
Income from continuing operations before income taxes	372,890			233,793			312,547			105,508			212,340
Income tax provision	(122,128		)	(57,694		)	(97,432		)	(41,249		)	(67,852		)
Income from continuing operations	250,762			176,099			215,115			64,259			144,488
Discontinued operations:
Income from discontinued operations, net of related income taxes	—			—			—			11,558			465
Net income	250,762			176,099			215,115			75,817			144,953
Net income attributable to noncontrolling interests	(5,461		)	(4,575		)	(2,836		)	(2,349		)	(287		)
Net income attributable to Sinclair Broadcast Group	$	245,301		$	171,524		$	212,279		$	73,468		$	144,666
Earnings Per Common Share Attributable to Sinclair Broadcast Group:
Basic earnings per share from continuing operations	$	2.62		$	1.81		$	2.19		$	0.66		$	1.78
Basic earnings per share	$	2.62		$	1.81		$	2.19		$	0.79		$	1.79
Diluted earnings per share from continuing operations	$	2.60		$	1.79		$	2.17		$	0.66		$	1.78
Diluted earnings per share	$	2.60		$	1.79		$	2.17		$	0.78		$	1.78
Dividends declared per share	$	0.71		$	0.66		$	0.63		$	0.60		$	1.54

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	Years Ended December 31,
	2016		2015		2014		2013		2012
Balance Sheet Data:
Cash and cash equivalents	$	259,984	$	149,972	$	17,682	$	280,104	$	22,865
Total assets	$	5,963,168	$	5,432,315	$	5,410,328	$	4,103,417	$	2,690,768
Total debt (c)	$	4,203,848	$	3,854,360	$	3,886,872	$	2,989,985	$	2,234,450
Total equity (deficit)	$	557,936	$	499,678	$	405,343	$	405,704	$	(100,053	)

(a) Media revenues is defined as broadcast revenues, net of agency commissions, retransmission fees, and other media related revenues.

(b) Depreciation and amortization includes depreciation and amortization of property and equipment and amortization of definite-lived intangible assets and other assets.

(c) Total debt is defined as notes payable, capital leases and commercial bank financing, including the current and long-term portions.

ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis provides qualitative and quantitative information about our financial performance and condition and should be read in conjunction with the other sections in this Annual Report, including Item 1. Business,Item 6. Selected Financial Data, and our Consolidated Financial Statements including the accompanying notes to those statements.  This discussion consists of the following sections:

Executive Overview — a description of our business, summary of significant events and financial highlights from 2016, and information about industry trends;

Critical Accounting Policies and Estimates — a discussion of the accounting policies that are most important in understanding the assumptions and judgments incorporated in the consolidated financial statements and a summary of recent accounting pronouncements;

Results of Operations — a summary of the components of our revenues by category and by network affiliation or program service arrangement, a summary of other operating data and an analysis of our revenues and expenses for 2016, 2015 and 2014, including comparisons between years and certain expectations for 2017; and

Liquidity and Capital Resources — a discussion of our primary sources of liquidity, an analysis of our cash flows from or used in operating activities, investing activities and financing activities, a discussion of our dividend policy and a summary of our contractual cash obligations and off-balance sheet arrangements.

EXECUTIVE OVERVIEW

We are a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms.   The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, our own networks, and other original programming produced by us.  We also distribute our original programming, and owned and operated networks, on other third-party platforms.  Additionally, we own digital and internet media products that are complementary to our extensive portfolio of television station related digital properties. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments.

We have one reportable operating segment: “Broadcast.” Our Broadcast segment is comprised of all of our television stations.  We also earn revenues from our original networks, original content, digital and internet services, technical services, and non-media investments. These businesses are included within "Other".  Corporate and unallocated expenses primarily include our costs to operate as a public company and to operate our corporate headquarters location.  Other and Corporate are not reportable segments. 

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STG, for which certain assets and results of operations are included in the Broadcast segment and which is a wholly owned subsidiary of Sinclair Broadcast Group, Inc. (SBG), is the primary obligor under our Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, 5.125% Notes, 5.875% Notes, and until they were redeemed, the 6.375% Notes.  SBG is a guarantor under all of these debt instruments.  Our Class A Common Stock and Class B Common Stock remain obligations or securities of SBG and not obligations or securities of STG. 

For more information about our business, reportable segments and our operating strategy, see Item 1. Business in this Annual Report.

Summary of Significant Events and Financial Highlights from 2016

Television Acquisitions

• In January 2016, we closed on the previously announced purchase of the assets of KUQI (FOX), KTOV-LP (MNT) and KXPX-LP (Retro TV) in Corpus Christi, Texas for $9.3 million.

• In February 2016, we completed the acquisition of the broadcast assets of WSBT (CBS) in South Bend-Elkhart, Indiana, owned by Schurz Communications, Inc., and sold the broadcast assets of WLUC (NBC and FOX) in Marquette, Michigan to Gray Television, Inc.

• In May 2016, we closed on the previously announced purchase of the assets of KFXL (FOX) and KHGI, KHGI-LD, KWNB and KWNB-LD (ABC), in Lincoln, Nebraska for $31.3 million.

Content and Distribution

• In March 2016, we closed on the purchase of the stock of Tennis Channel for $350.0 million.

• In July 2016, we launched the new Circa.com website. This site uses new technology designed for enhanced mobile video and new-generation news consumers.

• In July 2016, we rebranded our digital agency solutions group under the name Compulse Integrated Marketing to provide in-depth digital marketing services aimed at small and medium sized businesses.

• In July 2016, we entered into agreements with FOX for the renewal of FOX affiliations in five markets. The FOX affiliations were also renewed in three markets by the licensees of stations that we provide sales and other services to under joint sales agreements.

• In August 2016, we signed a multi-year retransmission consent agreement with Comcast Cable for carriage of our broadcast television stations.

• In September 2016, the Tennis Channel signed an eight-year rights agreement with the Volvo Car Open in Charleston, S.C., one of the largest women's-only tennis tournaments in the world.

• In January 2017, Circa launched a new user-generated platform empowering college students to provide video content about news and entertainment events on their campuses via widgets available on Circa’s web site and social media pages.

• In January 2017, we announced with Metro-Goldwyn-Mayer ("MGM") the launch of "CHARGE!," a new 24/7 action-based network that will feature more than 2,300 hours of TV series content and more than 2,000 movie titles. CHARGE! is expected to debut during the first quarter of 2017.

• In February 2017, we launched TBD, the first multiscreen TV network in the U.S. market to bring premium internet-first content to TV homes across America. TBD will include web series, short films, fashion, comedy, lifestyle, eSports, music and viral content, through partnerships with creators.

• Effective February 1, 2017, we reached an agreement in principle to renew its retransmission consent agreement with Frontier Cable for carriage of KOMO (ABC in Seattle, Washington), KATU (ABC in Portland, Oregon), and Tennis Channel.

• In February 2017, we extended our programming agreement with MyNetwork Television through the 2017-2018 broadcast season.

ATSC 3.0

• In March 2016, we began broadcasting "NextGen" Single Frequency Network (SFN) using the base elements of the new ATSC 3.0 transmission standard through the authority granted by the Federal Communications Commission (FCC).

• In March 2016, we hosted “Plug Fest 2016,” an event for “Validation and Verification” compatibility testing of the ATSC 3.0 digital TV standard.

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• In March 2016, the Advanced Television Systems Committee (ATSC) developing the Next Generation Broadcast Transmission Standard (ATSC 3.0) approved as a Full Standard the key element of the Physical Layer, the so-called “Bootstrap” or the Discovery and Signaling feature of the standard.  The Bootstrap includes the designs developed by ONE Media and supported by other broadcasters and equipment manufacturers.

• In April 2016, we announced the formation of ONE Media 3.0, LLC, a wholly-owned subsidiary whose purpose will be to develop business opportunities, products, and services associated with the ATSC 3.0 broadcast transmission standard approved in March 2016.

Financing and Shareholder Returns

• In March 2016, we issued $350.0 million in senior unsecured notes, which bear interest at a rate of 5.875% per annum and mature on March 15, 2026. The proceeds were used to repay amounts drawn under Sinclair Television Group’s revolving credit facility and for other general corporate purposes.

• In July 2016, we extended the maturity date of certain loans and commitments under our existing bank credit facility until July 31, 2021.

• In August 2016, we issued $400 million in senior unsecured notes, which bear interest at a rate of 5.125% per annum and mature on February 15, 2027. The proceeds were used to redeem $350 million in senior unsecured notes due in 2021 and for general corporate purposes.

• In January 2017, we extended the maturity of our term B Loans from April 9, 2020 and July 31, 2021 to January 3, 2024. In connection with the extension, we added additional operating flexibility, including a reduction in certain pricing terms related to the Loans and its existing revolving credit facility and revisions to certain covenant ratio requirements.

• For the year ended December 31, 2016, we repurchased approximately 4.9 million shares of Class A Common Stock for $136.4 million. As of December 31, 2016, the total remaining repurchase authorization was $119.1 million.

• For the year ended December 31, 2016 we paid dividends of $0.705 per share.

• In February 2017, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on March 15, 2017 to the holders of record at the close of business on March 1, 2017.

Other Events

• In May 2016, the Third Circuit Court ruled to vacate the rule to make Joint Sales Agreements (JSAs) attributable.

• In July 2016, we entered into a Consent Decree with the FCC resolving a number of previously disclosed matters relating to certain content broadcast on our stations, technical issues relating to LMAs, and the FCC's rule regarding retransmission consent negotiations. The FCC dismissed all pending claims against us with the Media Bureau and issued renewals for 90 television stations. In September 2016, as part of the settlement, we paid $9.5 million.

• In November 2016, we announced executive promotions and changes which became effective January 1, 2017: David Smith from Chairman, President & Chief Executive Officer to Executive Chairman; Christopher Ripley from Chief Financial Officer to President & Chief Executive Officer; Lucy Rutishauser from SVP Corporate Finance & Treasurer to SVP Chief Financial Officer & Treasurer; David Amy from EVP and Chief Operating Officer to Vice Chairman; Barry Faber from EVP & General Counsel to EVP, General Counsel, Distribution and Network Relations; Steven Pruett from Co- Chief Operating Officer, Sinclair Television Group to EVP & Chief TV Development Officer; Steven Marks from Co-Chief Operating Officer, Sinclair Television Group to EVP & Chief Operating Officer, Sinclair Television Group; and Robert Malandra from SVP Television Finance to SVP Advanced Revenue Development & Analytics.

• In February 2017, we announced that we expect to receive an estimated $313 million of gross proceeds as a result of the National Broadband Plan Spectrum Auction. The results of the auction are not expected to produce any material change in our operations or results. The proceeds are expected to be received later this year.

Industry Trends

• Political spending is significantly higher in the even-numbered years due to the cyclicality of political elections.  In addition, every four years, political spending is typically elevated further due to the advertising related to the presidential election. 

• The FCC has permitted broadcast television stations to use their digital spectrum for a wide variety of services including multi-channel broadcasts.  The FCC “must-carry” rules only apply to a station’s primary digital stream.

• Retransmission consent rules provide a mechanism for broadcasters to seek payment from MVPDs who carry broadcasters’ signals.  Recognition of the value of the programming content provided by broadcasters, including local news and other programming and network programming all in HD has generated increased local revenues.

• Many broadcasters are enhancing / upgrading their websites to use the internet to deliver rich media content, such as newscasts and weather updates, to attract advertisers and to compete with other internet sites and smart phone and tablet device applications and other social media outlets.

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• Seasonal advertising increases occur in the second and fourth quarters due to the anticipation of certain seasonal and holiday spending by consumers.

• Broadcasters have found ways to increase returns on their news programming initiatives while continuing to maintain locally produced content through the use of news sharing arrangements.

• Advertising revenue related to the Olympics occurs in even numbered years and the Super Bowl is aired on a different network each year.  Both of these popularly viewed events can have an impact on our advertising revenues.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

This discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the United States.  The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities.  On an on-going basis, we evaluate our estimates including those related to goodwill and intangible assets, program contract costs, income taxes, and variable interest entities.  We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  These estimates have been consistently applied for all years presented in this report and in the past we have not experienced material differences between these estimates and actual results.  However, because future events and their effects cannot be determined with certainty, actual results could differ from our estimates and such differences could be material.

We consider the following accounting policies to be the most critical as they are important to our financial condition and results of operations, and require significant judgment and estimates on the part of management in their application.  For a detailed discussion of the application of these and other accounting policies, see Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements.

Valuation of Goodwill and Indefinite-Lived Intangible Assets. We evaluate our goodwill and indefinite-lived intangible assets for impairment annually, or more frequently, if events or changes in circumstances indicate an impairment may exist. As of December 31, 2016, our consolidated balance sheet includes $1,990.7 million and $156.3 million of goodwill and indefinite-lived intangible assets, respectively.

In the performance of our annual goodwill and indefinite-lived intangible asset impairment assessments we have the option to qualitatively assess whether it is more-likely-than-not that the respective asset has been impaired.  If we conclude that it is more-likely-than-not that a reporting unit or an indefinite-lived intangible asset is impaired, we apply the quantitative assessment, which involves comparing the estimated fair value of the reporting unit or indefinite-lived intangible asset to its respective carrying value.  See Impairment of Goodwill, Intangibles and Other Long-Lived Assets within Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Statement of Operations for further discussion of the significant judgments and estimates inherent in both qualitatively assessing whether impairment may exist and estimating the fair values of the reporting units and indefinite-lived intangible assets.  See Note 5.  Goodwill, Indefinite-Lived Intangible Assets and Other Intangible Assets within the Consolidated Financial Statements for the results of our annual impairment tests during the years ended December 31, 2016, 2015 and 2014.

For our annual goodwill impairment tests in 2016, 2015 and 2014, we concluded that it was more-likely-than-not that goodwill was not impaired based on our qualitative assessments.  For one reporting unit in 2016, we elected to perform a quantitative assessment and concluded that its fair value significantly exceeded the carrying value. For our annual impairment tests for indefinite-lived intangible assets in 2016, 2015 and 2014, we concluded that it was more-likely-than-not that the assets were not impaired based on our qualitative assessments, except for broadcast licenses with an aggregate carrying value of $45.2 million in 2016, $15.3 million in 2015, and $38.1 million in 2014 for which we performed the quantitative assessments.  During 2014, we recorded $3.2 million of impairment, which was recorded in amortization of definite-lived intangibles and other assets in our consolidated statement of operations, primarily as a result of declines in projected future market revenues related to the radio broadcast licenses.  The results of our quantitative tests of indefinite-lived intangible assets in 2016 indicated that the fair values significantly exceeded the carrying value.

We believe we have made reasonable estimates and utilized appropriate assumptions to evaluate whether the fair values of our reporting units and indefinite-lived intangible assets were less than their carrying values.  If future results are not consistent with our assumptions and estimates, including future events such as a deterioration of market conditions or significant increases in discount rates, we could be exposed to impairment charges in the future.  Any resulting impairment loss could have a material adverse impact on our consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows.

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Program Contract Costs.  As discussed under Programming within Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements, we record an asset and corresponding liability for programming rights when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement and the program is available for its first showing or telecast.  These costs are expensed over the period in which an economic benefit is expected to be derived. To ensure the related assets for the programming rights are reflected in the consolidated balance sheets at the lower of unamortized cost or estimated net realizable value (NRV), management estimates future advertising revenue, net of sales commissions, to be generated by the remaining program material available under the contract terms. Management’s judgment is required in determining the timing of expense for these costs, which is dependent on the economic benefit expected to be generated from the program and may significantly differ from the timing of related payments under the contractual obligation.  If our estimates of future advertising revenues decline, amortization expense could be accelerated or NRV adjustments may be required.

Income Tax.   As discussed under Income Taxes within Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements, we recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities.  We provide a valuation allowance for deferred tax assets if we determine that it is more-likely-than not that some or all of the deferred tax assets will not be realized.  In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies and forecasts of future taxable income.  In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. As of December 31, 2016 and 2015, a valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income.  Future changes in operating and/or taxable income or other changes in facts and circumstances could significantly impact the ability to realize our deferred tax assets which could have a material effect on our consolidated financial statements.

Management periodically performs a comprehensive review of our tax positions and we record a liability for unrecognized tax benefits when such tax positions do not meet the “more-likely-than-not” threshold.  Significant judgment is required in determining whether a tax position meets the “more-likely-than-not” threshold, and is based on a variety of facts and circumstances, including interpretation of the relevant federal and state income tax codes, regulations, case law and other authoritative pronouncements.  Based on this analysis, the status of ongoing audits and the expiration of applicable statute of limitations, liabilities are adjusted as necessary.  The resolution of audits is unpredictable and could result in tax liabilities that are significantly higher or lower than for what we have provided.  See Note 9. Income Taxeswithin the Consolidated Financial Statements, for further discussion of accrued unrecognized tax benefits.

Variable Interest Entities.  As discussed under Variable Interest Entities within Note 1. Nature of Operations and Summary of Significant Accounting Policies within the Consolidated Financial Statements, we have determined that certain third-party licensees of stations for which we perform services to pursuant to arrangements, including LMAs and JSAs/SSAs, are VIEs and we are the primary beneficiary of those variable interests because, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and because we absorb losses and returns that would be considered significant to the VIEs.  Determining whether an entity is a VIE and whether we are the primary beneficiary of the variable interests requires judgment which is based on quantitative and qualitative factors that indicate whether or not we are absorbing a majority of the entity’s economic risks or receiving a majority of the entity’s economic rewards, based on the terms of the arrangements with the entity.

Transactions with Related Parties. We have determined that we conduct certain business related transactions with related persons or entities. See Note 11. Related Person Transactions within the Consolidated Financial Statements for discussion of these transactions.

Recent Accounting Pronouncements

See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policieswithin the Consolidated Financial Statements for discussion on recent accounting policies and impact our financial statements.

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RESULTS OF OPERATIONS

In general, this discussion is related to the results of operations.  The results of the acquired stations during the years ended 2014, 2015, and 2016 are included in our results of our operations for the years ended 2014, 2015, and 2016 from their respective dates of acquisition. See Note 2. Acquisitions and Disposition of Assetswithin the Consolidated Financial Statements for further discussion of stations acquired.  Unless otherwise indicated, references in this discussion and analysis to 2016, 2015 and 2014 are to our fiscal years ended December 31, 2016, 2015 and 2014, respectively.  Additionally, any references to the first, second, third or fourth quarters are to the three months ended March 31, June 30, September 30 and December 31, respectively, for the year being discussed.  We have one reportable segment, “broadcast” that is disclosed separately from our other and corporate activities.

Seasonality / Cyclicality

Our operating results are usually subject to seasonal fluctuations.  Usually, the second and fourth quarter operating results are higher than the first and third quarters’ because advertising expenditures are increased in anticipation of certain seasonal and holiday spending by consumers.

Our operating results are usually subject to fluctuations from political advertising.  In even numbered years, political spending is usually significantly higher than in odd numbered years due to advertising expenditures preceding local and national elections.  Additionally, every four years, political spending is usually elevated further due to advertising expenditures preceding the presidential election.

Consolidated Operating Data

The following table sets forth certain of our consolidated operating data for the years ended December 31, 2016, 2015 and 2014 (in millions).  For definitions of terms, see the footnotes to the table in Item 6. Selected Financial Data.

	Years Ended December 31,
	2016			2015		2014
Media revenues (a)	$	2,499.5		$	2,011.9	$	1,784.6
Revenues realized from station barter arrangements	135.6			111.3		122.3
Other non-media revenues	101.8			95.9		69.7
Total revenues	2,736.9			2,219.1		1,976.6
Media production expenses (a)	953.1			733.2		578.7
Media selling, general and administrative expenses (a)	501.6			431.7		372.2
Expenses recognized from station barter arrangements	117.0			93.2		107.7
Depreciation and amortization	410.0			389.6		335.5
Other non-media expenses	80.6			71.8		55.6
Corporate general and administrative expenses	73.6			64.2		62.5
Research and development	4.1			12.4		6.9
(Gain) loss on asset dispositions	(6.0		)	0.3		(37.2		)
Operating income	$	602.9		$	422.7	$	494.7
Net income attributable to Sinclair Broadcast Group	$	245.3		$	171.5	$	212.3

(a) Our media related revenues and expenses are primarily derived from our broadcast segment, but also from our other media related business, including our networks and content such as Tennis Channel, COMET, ASN, and non-broadcast digital properties. The results of our broadcast segment and the other media businesses are discussed further below under Broadcast Segment and Other, respectively.

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BROADCAST SEGMENT

Revenues

The following table presents our media revenues, net of agency commissions, for the years ended December 31, 2016, 2015 and 2014 (in millions):

							Percent Change
	2016		2015		2014		‘16 vs. ‘15		‘15 vs. ‘14
Local revenues:
Non-political	$	1,841.9	$	1,627.6	$	1,341.5	13.2	%	21.3	%
Political	24.2		9.7		22.3		(b)		(b)
Total local	1,866.1		1,637.3		1,363.8		14.0	%	20.1	%
National revenues (a):
Non-political	357.2		353.3		309.2		1.1	%	14.3	%
Political	175.1		16.1		109.5		(b)		(b)
Total national	532.3		369.4		418.7		44.1	%	(11.8	)%
Total broadcast segment media revenues	$	2,398.4	$	2,006.7	$	1,782.5	19.5	%	12.6	%

(a) National revenue relates to advertising sales sourced from our national representation firm.

(b) Political revenue is not comparable from year to year due to the cyclicality of elections.  See Political Revenues below for more information.

Media Revenues.  Media revenues increased$391.7 million in 2016 when compared to 2015, of which $37.6 million was related to stations not included in the same period in 2015. The remaining increase was primarily related to an increase in political net time sales as 2016 was a presidential election year, an increase in retransmission and digital revenues, and an increase in advertising revenues generated from the services, home products, automotive, direct response, media, entertainment, pharmaceutical/cosmetics, restaurant, and travel sectors. These increases were partially offset by a decrease in advertising revenues generated from the schools, telecommunications, retail, fast food, paid programing, and internet sectors.  Automotive, which typically is our largest category, represented 22.5% of net time sales for the year ended December 31, 2016.

Media revenues increased$224.2 million in 2015 when compared to 2014, of which $220.5 million was related to stations not included in the same period in 2014. The remaining increase was due to an increase in retransmission revenues from MVPDs and increases in advertising revenues generated from the services, medical, and furniture sectors.  These increases were partially offset by a decrease in advertising revenues generated from the political, schools, and fast food sectors.  Automotive, which typically is our largest category, represented 25.5% of net time sales for the year ended December 31, 2015.

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From a network affiliation or program service arrangement perspective, the following table sets forth our affiliate percentages of net time sales for the years ended December 31, 2016 and 2015:

	# of	Percent of Net Time Sales for the Twelve Months Ended December 31,						Net Time Sales Percent Change
	Channels (a)	2016		2015		2014		‘16 vs. ‘15		‘15 vs. ‘14
ABC	36	27.1	%	28.7	%	25.7	%	(5.6	)%	12.5	%
FOX	54	24.3	%	25.9	%	27.3	%	(6.2	)%	(3.8	)%
CBS	30	19.7	%	17.7	%	20.0	%	11.3	%	(10.3	)%
NBC	22	14.2	%	11.7	%	9.4	%	21.4	%	25.7	%
CW	43	7.3	%	8.0	%	8.5	%	(8.8	)%	(4.3	)%
MNT	36	5.8	%	6.5	%	7.8	%	(10.8	)%	(14.7	)%
Other (b)	262	1.7	%	1.5	%	1.4	%	13.3	%	16.3	%
Total	483

(a) See Television Markets and Stations within Item 1. Business for further detail on our channels.  We have acquired a significant number of television stations during 2016, 2015, and 2014, with a variety of network affiliations.  This acquisition activity affects the year-over-year comparability of revenue by affiliation.  See Note 2. Acquisitions and Disposition of Assets within the Consolidated Financial Statements for further discussion of stations acquired.

(b) We broadcast other programming from the following providers on our channels including: ASN, Antenna TV, Azteca, Bounce Network, COMET, Decades, Estrella TV, Get TV, Grit, Me TV, MundoFox, Retro TV, Telemundo, This TV, News & Weather, Univision and Zuus Country.

Political Revenues. Political revenues, which include time sales from political advertising, increased by $173.5 million to $199.3 million for 2016 when compared to 2015. Political revenues decreased by $106.0 million to $25.8 million for 2015 when compared to 2014.  Political revenues are typically higher in election years such as 2016.

Local Revenues.  Excluding political revenues, our local media revenues, which include local times sales, retransmission revenues, digital, and other local revenues, were up $214.3 million for 2016 when compared to 2015, of which $28.9 million was related to the stations not included in the same period in 2015. The remaining increase was primarily related to an increase in retransmission and digital revenues and an increase in advertising revenues generated from services, media, automotive, entertainment, furniture, and travel sectors. These increases were partially offset by lower advertising revenues generated from the schools, retail, medical, fast food, paid programming, direct response, and pharmaceutical/cosmetics sectors. Excluding political revenues, our local media revenues were up $286.1 million for 2015 when compared to 2014, of which $176.7 million related to the stations not included in the same period in 2014. The remaining increase was due to an increase in advertising spending particularly in the entertainment, direct response, and home products sectors and an increase in retransmission revenues from MVPDs. These increases were partially offset by a decline in advertising revenues from the automotive, fast food, and schools sectors.

National Revenues.  Our national media revenues, excluding political revenues, which include national time sales and other national revenues, were up $3.9 million for 2016 when compared to 2015, of which $3.5 million was related to the stations not included in the same period in 2015.  The remaining increase was primarily related to an increase in retransmission and digital revenues and an increase in advertising revenues generated from home products, direct response, medical, pharmaceutical/cosmetics, restaurants, and fast food. These increases were partially offset by lower advertising revenues generated from the telecommunications, retail, automotive, internet, and services sectors. Excluding political revenues, our national media revenues increased $44.1 million for 2015 when compared to 2014, which primarily related to the stations acquired in 2015.  The remaining increase was due to an increase in advertising revenues generated from the pharmaceutical/cosmetics, retail/department stores, and furniture sectors.  These increases were partially offset by a decrease in advertising revenues in the telecommunications, paid programs, and automotive sectors.

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Expenses

The following table presents our significant operating expense categories for the years ended December 31, 2016, 2015 and 2014 (in millions):

							Percent Change (Increase/(Decrease))
	2016		2015		2014		‘16 vs. ‘15		‘15 vs. ‘14
Media production expenses	$	874.1	$	714.1	$	572.2	22.4	%	24.8	%
Media selling, general and administrative expenses	$	466.2	$	427.2	$	369.6	9.1	%	15.6	%
Amortization of program contract costs and net realizable value adjustments	$	127.9	$	124.6	$	106.6	2.6	%	16.9	%
Corporate general and administrative expenses	$	67.0	$	55.8	$	55.8	20.1	%	—	%
Depreciation and amortization expenses	$	247.1	$	251.7	$	218.5	(1.8	)%	15.2	%

Media production expenses.  Media production expenses increased $160.0 million during 2016 compared to 2015, of which $14.4 million related to the stations not included in the same period in 2015, net of dispositions. The remaining increase for the year was primarily due to increases in fees pursuant to network affiliation agreements mainly in relation to higher retransmission revenue, further investment in original programming content, increased costs related to sports programming content and expansion of news, an increase in costs related to viewership measurement, and increased compensation expense.

Media production expenses increased$141.9 million during 2015 compared to 2014, of which $93.0 million related to stations not included in the same period of 2014, net of dispositions. The remaining increase was primarily due to increases in fees pursuant to network affiliation agreements, increased compensation expense, and increased costs related to sports programming content.

Media selling, general and administrative expenses.  Media selling, general and administrative expenses increased $39 million during 2016 compared to 2015, of which $6.0 million related to stations not included in the same period in 2015, net of dispositions. The remaining increases for the year were primarily due to an increase in information technology infrastructure costs, increased compensation expense, increased digital interactive costs, which was partially offset by the $9.3 million charge in 2015 related to settling the benefit obligation of an inherited pension plan.

Media selling, general and administrative expenses increased$57.6 million during 2015 compared to 2014, of which $41.6 million related to the stations not included in the same period in 2014, net of dispositions. The remaining increase for the year was primarily due to an increase in information technology infrastructure costs, increased compensation expense, increased insurance costs, increased digital interactive costs, and a $9.3 million charge related to settling the benefit obligation of an inherited pension plan.

Amortization of program contract costs and net realizable value adjustments.  The amortization of program contract costs increased$3.3 million during 2016 compared to 2015, of which $2.1 million related to the stations not included in the same period of 2015, net of dispositions.  The amortization of program contract costs increased$18.0 million during 2015 compared to 2014, of which $5.7 million related to the stations not included in the same period of 2014, net of dispositions.  The remaining increases for both periods due to expanding high quality film content across our broadcast platform.

Corporate general and administrative expenses.  See explanation under Corporate and Unallocated Expenses.

Depreciation and amortization expenses.  Depreciation of property and equipment and amortization of definite-lived intangibles and other assets decreased$4.6 million during 2016 compared 2015 primarily due to the depreciation of property and equipment of assets which became fully depreciated in 2015, which was greater than the depreciation that resulted from 2016 additions, of which $1.3 million related to the stations not included in the same period of 2015, net of dispositions.  Depreciation and amortization expenses increased$33.2 million during 2015 compared to 2014, of which $36.0 million related to a station not included in the same period of 2014, net of dispositions.

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OTHER

Media revenues, media production expenses, and media selling, general, and administrative expense. The media revenue included within Other primarily relates to original networks and content, as well as our digital and internet businesses. For the years ended December 31, 2016, 2015 and 2014, we recorded revenue of $101.2 million, $5.2 million, and $2.1 million, respectively. The year-over-year increases in media revenues primarily relate to the recently acquired Tennis Channel as well as our science-fiction and sports networks. For the years ended December 31, 2016, 2015 and 2014, we recorded expenses of $114.4 million, $23.6 million, and $9.1 million, respectively. Our expenses relate to the programming and production, and general and administrative expenses related to the operations of our network, content, and digital and internet businesses. The year-over-year increases primarily relate to the recently acquired Tennis Channel and general and administrative costs related to the start-up of our original networks and content, production costs of new original programming, and new digital and internet initiatives such as Circa. See Item 1. Business. for a further discussion of these businesses.

Other non-media revenues and expenses. The following table presents our other non-media revenues and expenses for the years ended December 31, 2016, 2015 and 2014 (in millions):

							Percent Change
	2016		2015		2014		‘16 vs. ‘15		‘15 vs. ‘14
Revenues:
Investments in real estate ventures	$	18.9	$	23.2	$	7.9	(18.5	)%	193.7	%
Investments in private equity	$	72.3	$	62.5	$	53.9	15.7	%	16.0	%
Technical services	$	10.7	$	10.2	$	7.4	4.9	%	37.8	%
Expenses: (a)
Investments in real estate ventures	$	28.7	$	27.6	$	13.9	4.0	%	98.6	%
Investments in private equity	$	59.8	$	52.3	$	44.3	14.3	%	18.1	%
Technical services	$	12.6	$	11.2	$	9.3	12.5	%	20.4	%

(a) Comprises total expenses of the entity including general and administrative, depreciation and amortization and applicable other income and expense items such as interest expense and non-cash stock-based compensation expense related to issuances of subsidiary stock awards and excludes equity method investment income.

Investments in real estate ventures. We have controlling interests in certain real estate investments owned by Keyser Capital which we consolidate. For the year ended December 31, 2016, revenues from the investments decreased $4.3 million compared to 2015, of which $4.1 million related to real estate development projects. For the year ended December 31, 2016, expenses from these investments increased $1.1 million compared to 2015. This increase was primarily composed of a $2.6 million increase in expenses related to real estate development projects partially offset by a decrease of expenses related to our rental real estate investments and gain on sale of certain real estate assets.

For the year ended December 31, 2015, revenues from these investments increased $15.3 million compared to 2014, which primarily related to real estate development projects. For the year ended December 31, 2015, expenses from these investments increased $13.7 million compared to 2014, of which $9.9 million related to real estate development projects.

Investments in private equity. We have controlling interests in certain private equity investments owned by Keyser Capital, which we consolidate, including Triangle, a sign designer and fabricator, and Alarm Funding, a regional security alarm operating and bulk acquisition company. For the year ended December 31, 2016, revenues from investments in private equity increased $9.8 million compared to 2015, primarily relating to an increase in transaction volume from our sign and alarm businesses. For the year ended December 31, 2016, expenses from investments in private equity increased $7.5 million compared to 2015, which was primarily due to an increase of $8.4 million related to transaction volume from our sign and alarm businesses.

For the year ended December 31, 2015, revenues and expenses from investments in private equity increased $8.6 million and $8 million, respectively, compared to 2014, primarily related to an increase in transaction volume from our sign and alarm businesses.

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Technical Services. We own certain subsidiaries which provide service and support for broadcast transmitters, and design and manufacture broadcast systems. See Item 1. Business for a further discussion of these businesses. For the year ended December 31, 2016, revenues and expenses related to Technical Services increased $0.5 million and $1.4 million, respectively, compared to 2015. For the year ended December 31, 2015 revenues and expenses related to Technical Services increased $2.8 million and $1.9 million, respectively, compared to 2014. The increases in both revenues and expenses related to Technical Services for both 2016 and 2015 are due to increased transaction volume.

Research and development expenses. Our research and development expenses relate to our costs to create Next Gen. See Development of Next Generation Broadcast Platforms (Next Gen) under Operating Strategy under Item 1. Business for further discussion of this initiative. For the years ended December 31, 2016, 2015, and 2014, research and development costs related to ONE Media, LLC were $4.1 million, $12.4 million, and $6.9 million, respectively.

Income from Equity and Cost Method Investments.  As of December 31, 2016 and 2015, the carrying value of our investments in private equity and real estate ventures, accounted for under the equity or cost method, was $44.2 million and $84.3 million and $20.8 million and $84.6 million, respectively.  Results of our equity and cost method investments in private equity investments and real estate ventures are included in income from equity and cost method investments in our consolidated statements of operations. During 2016, we recorded income of $2.0 million related to certain private equity investments and a loss of $0.3 million related to our real estate ventures. During 2015, we recorded income of $3.6 million related to certain private investment funds and a loss of $2.7 million related to our real estate ventures, which included an impairment charge of $6.0 million related to one of our real estate ventures.  During 2014, we recorded income of $3.1 million related to certain private equity funds and a loss of $1.0 million related to our real estate ventures.

CORPORATE AND UNALLOCATED EXPENSES

							Percent Change (Increase/(Decrease))
	2016		2015		2014		‘16 vs. ‘15		‘15 vs. ‘14
Corporate general and administrative expenses	$	4.1	$	5.4	$	5.3	(24.1	)%	1.9	%
Interest expense	$	199.1	$	186.5	$	170.8	6.8	%	9.2	%
Loss from extinguishment of debt	$	23.7	$	—	$	14.6	n/a		n/a
Income tax provision	$	122.1	$	57.7	$	97.4	111.6	%	(40.8	)%

n/a — not applicable

Corporate general and administrative expenses.  We allocate most of our corporate general and administrative expenses to the broadcast segment.  The explanation that follows combines corporate general and administrative expenses found in the Broadcast Segment section with the corporate general and administrative expenses found in this section, Corporate and Unallocated Expenses. 

Combined corporate general and administrative expenses increased to $73.6 million in 2016 from $64.2 million in 2015.  This increase primarily related to legal costs related to acquisitions and an increase in compensation costs related to merit increases. Combined corporate general and administrative expenses increased to $64.2 million in 2015 from $62.5 million in 2014. 

We expect corporate general and administrative expenses to decrease in 2017 compared to 2016 primarily as a result of lower insurance costs and outside and other legal fees.

Interest expense.  Interest expense increased in 2016 compared to 2015 primarily due to the issuance of the $350.0 million of 5.875% Notes in 2016. See Note 6. Notes Payable and Commercial Bank Financing within the Consolidated Financial Statements for further discussion.

Interest expense increased in 2015 compared to 2014 primarily due to the issuance of $550.0 million of 5.625% Notes in 2014 and incremental borrowings on our Bank Credit Agreement. The increase in interest expense was partially offset by a decrease in interest expense due to the redemption of 8.375% Notes during 2014.

We expect interest expense to increase in 2017 compared to 2016 as a result of fees incurred in 2017 related to the amendment and extension of our Term Loan B, partially offset by interest savings on the notes redeemed in 2016 as discussed in Note. 6 Notes Payable and Commercial Bank Financing within the Consolidated Financial Statements.

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Loss from extinguishment of debt.  We recognized a loss on extinguishment of debt of $23.7 million for the year ended December 31, 2016 related to the redemption of the 6.375% Notes in August 2016. See Note 6. Notes Payable and Commercial Bank Financing within the Consolidated Financial Statements for further discussion.

Income tax provision. The 2016 income tax provision for our pre-tax income (including the effects of noncontrolling interest) of $367.4 million resulted in an effective tax rate of 33.3%. The 2015 income tax provision for our pre-tax income (including the effects of the noncontrolling interest) of $229.2 million resulted in an effective tax rate of 25.2%. The increase in the effective tax rate from 2015 to 2016 is primarily due to a $12.6 million benefit related to the realization of a capital loss from the 2015 sale of the stock of a subsidiary.

The 2014 income tax provision for our pre-tax income (including the effects of the noncontrolling interest) of $309.7 million resulted in an effective tax rate of 31.5%. The decrease in the effective tax rate from 2014 to 2015 is primarily due to a $12.6 million benefit related to the realization of a capital loss from the 2015 sale of stock of a subsidiary.

As of December 31, 2016, we had a net deferred tax liability of $609.3 million as compared to a net deferred tax liability of $585.1 million as of December 31, 2015. The increase primarily relates to an increase in net deferred tax liabilities resulting from the acquisition of Tennis Channel in 2016. See Note 2. Acquisitions and Dispositions of Assets and Note 9. Income Taxes in the Consolidated Financial Statements for further information.

As of December 31, 2016, we had $4.7 million of gross unrecognized tax benefits. Of this total, $3.9 million (net of federal effect on state tax issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect our effective tax rate. As of December 31, 2015, we had $3.3 million of gross unrecognized tax benefits. Of this total, $2.6 million (net of federal effect on state tax issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect our effective tax rate. We recognized $0.2 million of income tax expense for interest related to uncertain tax positions for each of the years ended December 31, 2016 and 2015. See Note 9. Income Taxes in the Consolidated Financial Statements for further information.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2016, we had $260.0 million in cash and cash equivalent balances, net working capital of approximately $268.6 million, and $483.3 million remaining borrowing capacity under our revolving credit facility.  Cash generated by our operations and borrowing capacity under the Bank Credit Agreement are used as our primary sources of liquidity. 

In January 2017, we amended and restated our existing Term B Loan under the Bank Credit Agreement extending the maturity date to January 2024. See Bank Credit Agreement within Note 6. Notes Payable and Commercial Bank Financing within the Consolidated Financial Statements for further discussion.

In August 2016, we issued $400 million in senior unsecured notes, which bear interest at a rate of 5.125% per annum and mature on February 15, 2027. The proceeds from the offering, were used to redeem our 6.375% Notes and for general corporate purposes. See Note 6. Notes Payable and Commercial Bank Financing in our consolidated financial statements for further discussion.

In March 2016, we issued $350 million in senior unsecured notes, which bear interest at a rate of 5.875% per annum and mature on March 15, 2026. The proceeds from the offering, were used to repay amounts outstanding at the time under our revolving credit facility and for other general corporate purposes. See Note 6. Notes Payable and Commercial Bank Financingin our consolidated financial statements for further discussion.

We anticipate that existing cash and cash equivalents, cash flow from our operations and borrowing capacity under the revolving credit facility will be sufficient to satisfy our debt service obligations, capital expenditure requirements and working capital needs for the next twelve months.  For our long-term liquidity needs, in addition to the sources described above, we may rely upon the issuance of long-term debt, the issuance of equity or other instruments convertible into or exchangeable for equity, or the sale of non-core assets.  However, there can be no assurance that additional financing or capital or buyers of our non-core assets will be available, or that the terms of any transactions will be acceptable or advantageous to us.

On September 6, 2016 the Board of Directors approved an additional $150.0 million share repurchase authorization.  There is no expiration date, and currently management has no plans to terminate this program. For the year ended December 31, 2016, we repurchased approximately 4.9 million shares for $136.4 million. As of December 31, 2016, the total remaining repurchase authorization was $119.1 million.

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For the year ended December 31, 2016, we were in compliance with all of the covenants related to our Bank Credit Agreement, 5.125% Notes, 5.375% Notes, 5.625% Notes, 5.875% Notes, and 6.125% Notes.

Sources and Uses of Cash

The following table sets forth our cash flows for the years ended December 31, 2016, 2015 and 2014 (in millions):

	2016			2015			2014
Net cash flows from operating activities	$	591.8		$	402.9		$	432.6
Cash flows used in investing activities:
Acquisition of property and equipment	$	(94.5	)	$	(91.4	)	$	(81.5	)
Payments for acquisitions of businesses	(425.9		)	(17.0		)	(1,485.0		)
Proceeds from the sale of assets	16.4			23.7			176.7
Purchase of alarm monitoring contracts	(40.2		)	(39.2		)	(27.7		)
Decrease (increase) in restricted cash	3.7			(3.7		)	11.6
Investments in equity and cost method investees	(51.2		)	(44.7		)	(8.1		)
Distributions from equity and cost method investees	6.8			21.7			3.9
Proceeds from termination of life insurance policies	—			—			17.0
Loan to affiliates	(19.5		)	—			—
Other, net	(1.6		)	(0.7		)	(4.3		)
Net cash flows used in investing activities	$	(606.0	)	$	(151.3	)	$	(1,397.4	)
Cash flows from financing activities:
Proceeds from notes payable, commercial bank financing and capital leases	$	1,024.9		$	382.9		$	1,500.7
Repayments of notes payable, commercial bank financing and capital leases	(671.2		)	(395.2		)	(582.8		)
Dividends paid on Class A and Class B common stock	(65.9		)	(62.7		)	(61.1		)
Repurchase of outstanding Class A Common Stock	(136.3		)	(28.8		)	(133.2		)
Payments for deferred financing costs	(15.7		)	(3.8		)	(16.6		)
Noncontrolling interest contributions	(10.5		)	(9.9		)	(8.2		)
Other, net	(1.1		)	(1.7		)	3.4
Net cash flows from (used in) financing activities	$	124.2		$	(119.2	)	$	702.2

Operating Activities

Net cash flows from operating activities increased during the year ended December 31, 2016 compared to the same period in 2015.  This change is primarily due to an increase in cash received from customers due to businesses acquired since December 2015 and increased political advertising spending in an election year.

Net cash flows from operating activities decreased during the year ended December 31, 2015 compared to the same period in 2014.  The decrease was due to higher program payments, interest payments, and income taxes, compared to the same period in 2014, offset by an increase in cash received from customers. The increase in cash received from customers and program payments is primarily related to stations acquired in the second half of 2014.

Investing Activities

Net cash flows used in investing activities increased during the year ended December 31, 2016, compared to the same period in 2015. This increase is primarily due to the acquisition of Tennis Channel.

Net cash flows used in investing activities decreased during the year ended December 31, 2015, compared to the same period in 2014. This decrease is primarily due to fewer acquisitions of broadcast assets, partially offset by higher capital expenditures, a decrease in proceeds from the sale of broadcast assets, increase in the purchase of alarm contracts, and an increase in equity and cost method investments.

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Financing Activities

Net cash flows from financing activities increased during the year ended December 31, 2016, compared to the same period in 2015, due primarily to the proceeds received from the 5.875% Notes issued in March 2016 and partially offset by the increased repurchases of Class A Common Stock during 2016.

Net cash flows from financing activities decreased during the year ended December 31, 2015, compared to the same period in 2014, was primarily due to a decrease in net proceeds from notes payable from less activity in 2015 compared to 2014, partially offset by lower financing costs and less repurchases of Class A Common Stock.

During 2015, our Board of Directors declared a quarterly dividend of $0.165 per share in the months of February, May, August and November which were paid in March, June, September and December, respectively. Total dividend payments for the year ended December 31, 2015 were $0.66 per share. During 2016, our Board of Directors declared a quarterly dividend of $0.165 per share in the month of February, which was paid in March. In May, August, and November, our Board of Directors declared a quarterly dividend of $0.18 per share, which were paid in June, September and December, respectively.  Total dividend payments for the year ended December 31, 2016 were $0.705 per share. In February 2017, our Board of Directors declared a quarterly dividend of $0.18 per share. Future dividends on our common shares, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions and other factors that the Board of Directors may deem relevant.  The Class A Common Stock and Class B Common Stock holders have the same rights related to dividends.  Under our Bank Credit Agreement, in certain circumstances, we may make up to $200.0 million in unrestricted annual cash payments including but not limited to dividends, of which $50.0 million may carry over to the next year.

Contractual Obligations

We have various contractual obligations which are recorded as liabilities in our consolidated financial statements. Other items, such as certain purchase commitments and other executory contracts are not recognized as liabilities in our consolidated financial statements but are required to be disclosed.  For example, we are contractually committed to acquire future programming and make certain minimum lease payments for the use of property under operating lease agreements.

The following table reflects a summary of our contractual cash obligations as of December 31, 2016 and the future periods in which such obligations are expected to be settled in cash (in millions):

CONTRACTUAL OBLIGATIONS (a)

	Total		2017		2018-2019		2020-2021		2022 and thereafter
Notes payable, capital leases and commercial bank financing (b), (c)	$	5,361.0	$	364.9	$	567.4	$	2,314.1	$	2,114.6
Notes and capital leases payable to affiliates (b)	24.1		5.1		5.8		6.1		7.1
Operating leases	196.7		22.6		43.2		38.9		92.0
Program content (d)	1,317.7		534.8		582.8		194.2		5.9
Programming services (e)	246.3		87.4		83.7		45.3		29.9
Investments and loan commitments (f)	13.5		13.5		—		—		—
Other (g)	105.0		12.9		20.1		16.6		55.4
Total contractual cash obligations	$	7,264.3	$	1,041.2	$	1,303.0	$	2,615.2	$	2,304.9

(a) Excluded from this table are $4.7 million of accrued unrecognized tax benefits.  Due to inherent uncertainty, we cannot make reasonable estimates of the amount or the period payments will be made.

(b) Includes interest on debt and capital leases.  Estimated interest on our variable rate debt has been calculated at an effective weighted interest rate of 3.32%.  Variable rate debt represents $1.8 billion of our $4.2 billion total face value of debt as of December 31, 2016.

(c) See Note 6. Notes Payable and Commercial Bank Financing within the Consolidated Financial Statements for further discussion of the changes to notes payable, capital leases, and commercial bank financing during 2016.

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(d) Our Program content includes contractual amounts owed through the expiration date of the underlying agreement for active and future program contracts, network programming and additional advertising inventory in various dayparts. Active program contracts are included in the balance sheet as an asset and liability while future program contracts are excluded until the cost is known, the program is available for its first showing or telecast and the licensee has accepted the program.  Industry protocol typically enables us to make payments for program contracts on a three-month lag, which differs from the contractual timing within the table.  Network programming agreements may include variable fee components such as subscriber levels, which in certain circumstances have been estimated and reflected in the table.

(e) Includes obligations related to rating service fees, music license fees, market research, weather and news services.

(f) Commitments to contribute capital to various non-media private equity investments.

(g) Other includes obligations related to post-retirement benefits, maintenance and support, other corporate contracts, other long term liabilities, and LMA and outsourcing agreements. Excluded from the table are estimated amounts due pursuant to LMAs and outsourcing agreements where we consolidate the counter-party. The fees that we are required to pay under these agreements total $5.7 million, $10.7 million, $7.6 million and $0.1 million for the periods 2017, 2018-2019, 2020-2021 and 2022 and thereafter, respectively. Certain station related operating expenses are paid by the licensee and reimbursed by us under the LMA agreements. Certain of these expenses that are in connection with contracts are included in table above.

Off Balance Sheet Arrangements

Off balance sheet arrangements as defined by the SEC means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the registrant is a party, under which the registrant has:  obligations under certain guarantees or contracts; retained or contingent interest in assets transferred to an unconsolidated entity or similar arrangements; obligations under certain derivative arrangements; and obligations arising out of a material variable interest in an unconsolidated entity. As of December 31, 2016, we do not have any material off balance sheet arrangements.

ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk from changes in interest rates.  At times we enter into derivative instruments primarily for the purpose of reducing the impact of changing interest rates on our floating rate debt and to reduce the impact of changing fair market values on our fixed rate debt.  See Note 6. Notes Payable and Commercial Bank Financingwithin the Consolidated Financial Statements, for further discussion.  As of December 31, 2016, we did not have any outstanding derivative instruments.

We are exposed to risk from the changing interest rates of our variable rate debt, primarily related to our Bank Credit Agreement.  For the year ended December 31, 2016, interest expense on our term loans and revolver related to our Bank Credit Agreement was $54.4 million.  We estimate that adding 1.0% to respective interest rates would result in an increase in our interest expense of $16.7 million for the year ended December 31, 2016.  We also have $135.2 million of variable rate debt associated with our other non-media related investments.  We estimate that adding 1.0% to respective interest rates would result in $1.2 million of additional interest expense for the year ended December 31, 2016.  Our consolidated VIEs have $23.2 million of variable rate debt associated with the stations that we provide services to pursuant to LMAs and other outsourcing arrangements.  We estimate that adding 1.0% to respective interest rates would result in an increase interest expense of the VIEs by $0.2 million for the year ended December 31, 2016.

ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and supplementary data required by this item are filed as exhibits to this report, are listed under Item 15(a)(1) and (2) and are incorporated by reference in this report.

ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There were no changes in and/or disagreements with accountants on accounting and financial disclosure during the year ended December 31, 2016.

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ITEM 9A.CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures and Internal Control over Financial Reporting

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the design and effectiveness of our disclosure controls and procedures and our internal control over financial reporting as of December 31, 2016.

The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to provide reasonable assurance that information required to be

disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.  Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

The term “internal control over financial reporting,” as defined in Rules 13a-15d-15(f) under the Exchange Act, means a process designed by, or under the supervision of our Chief Executive and Chief Financial Officers and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (GAAP) and includes those policies and procedures that:

• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that our receipts and expenditures are being made in accordance with authorizations of management or our Board of Directors; and

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material adverse effect on our financial statements.

Assessment of Effectiveness of Disclosure Controls and Procedures

Based on the evaluation of our disclosure controls and procedures as of December 31, 2016, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

Report of Management on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting.  Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of our internal control over financial reporting as of December 31, 2016 based on the criteria set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (COSO).  Based on our assessment, management has concluded that, as of December 31, 2016, our internal control over financial reporting was effective based on those criteria.

Management has excluded the Tennis Channel and certain television stations (KUQI, KTOV, KXPX, WTVH, WSBT, KHGI, KWNB, KFXL, KJZZ, WSJV) from its assessment of internal control over financial reporting as of December 31, 2016 because they were acquired by the Company in purchase business combinations during 2016. The Tennis Channel and these television stations (KUQI, KTOV, KXPX, WTVH, WSBT, KHGI, KWNB, KFXL, KJZZ, and WSJV) are wholly-owned subsidiaries whose total assets and total revenues represent 8% and 5%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2016.

The effectiveness of our internal control over financial reporting as of December 31, 2016 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein.

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Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud.  A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.  Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.  Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.  Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management’s override of the control.  The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.  Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

ITEM 9B.OTHER INFORMATION

None.

PART III

ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item will be included in our Proxy Statement for the 2017 Annual Meeting of shareholders under the captions, “Directors, Executive Officers and Key Employees,” “Section 16(A) Beneficial Ownership Reporting Compliance,” “Code of business Conduct and Ethics” and “Corporate Governance,” which will be filed with the SEC no later than 120 days after the close of the fiscal year ended December 31, 2016 and is incorporated by reference in this report.

ITEM 11.EXECUTIVE COMPENSATION

The information required by this Item will be included in our Proxy Statement for the 2017 Annual Meeting of shareholders under the captions, “Compensation Discussion and Analysis”, “Director Compensation for 2016,” “Compensation Committee Interlocks and Insider Participation” and “Compensation Committee Report,” which will be filed with the SEC no later than 120 days after the close of the fiscal year ended December 31, 2016 and is incorporated by reference in this report.

ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this Item will be included in our Proxy Statement for the 2017 Annual Meeting of shareholders under the caption, “Security Ownership Of Certain Beneficial Owners and Management,” which will be filed with the SEC no later than 120 days after the close of the fiscal year ended December 31, 2016 and is incorporated by reference in this report.

ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item will be included in our Proxy Statement for the 2017 Annual Meeting of shareholders under the captions, “Related Person Transactions” and “Director Independence,” which will be filed with the SEC no later than 120 days after the close of the fiscal year ended December 31, 2016 and is incorporated by reference in this report.

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ITEM 14.PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item will be included in our Proxy Statement for the 2017 Annual Meeting of shareholders under the caption, “Disclosure of Fees Charged by Independent Registered Public Accounting Firm,” which will be filed with the SEC no later than 120 days after the close of the fiscal year ended December 31, 2016 and is incorporated by reference in this report.

PART IV

ITEM 15.              EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) (1)  Financial Statements

The following financial statements required by this item are submitted in a separate section beginning on page F-1 of this report.

Sinclair Broadcast Group, Inc. Financial Statements:	Page:
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2016 and 2015	F-3
Consolidated Statements of Operations for the Years Ended December 31, 2016, 2015 and 2014	F-5
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016, 2015 and 2014	F-6
Consolidated Statements of Equity (Deficit) for the Years Ended December 31, 2016, 2015 and 2014	F-7
Consolidated Statements of Cash Flows for the Years Ended December 31, 2016, 2015 and 2014	F-10
Notes to Consolidated Financial Statements	F-11

(a) (2)  Financial Statements Schedules

All schedules are omitted because they are not applicable or the required information is shown in the Financial Statements or the accompanying notes.

(a) (3)  Exhibits

The following exhibits are filed with this report:

EXHIBIT NO.	EXHIBIT DESCRIPTION
3.1	Amended and Restated Certificate of Incorporation. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended June 30, 1998).
3.2	Amended By-Laws of Sinclair Broadcast Group, Inc. as further amended by the Second Amendment to the Amended By-Laws of Sinclair Broadcast Group, Inc., dated March 3, 2009. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed March 6, 2009).
4.1	Indenture, dated as of October 12, 2012, by and among Sinclair Television Group, Inc., the guarantors identified therein and U.S. Bank National Association, as trustee. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on October 17, 2012).
4.2	Indenture, dated as of April 2, 2013, by and among Sinclair Television Group, Inc., the guarantors identified therein and U.S. Bank National Association, as trustee. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on April 4, 2013).
4.3	Indenture, dated as of October 11, 2013, by and among Sinclair Television Group, Inc., the guarantors identified therein and U.S. Bank National Association, as trustee. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on October 17, 2013).
4.4	Indenture, dated as of July 23, 2014, by and among Sinclair Television Group, Inc., the guarantors identified therein and U.S. Bank National Association, as trustee. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on July 28, 2014).
4.5	Indenture, dated as of March 23, 2016, by and among Sinclair Television Group, Inc., the guarantors identified therein and U.S. Bank National Association, as trustee. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on March 25, 2016).

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EXHIBIT NO.	EXHIBIT DESCRIPTION
4.6	Indenture, dated as of August 30, 2016, by and among Sinclair Television Group, Inc., the guarantors identified therein and U.S. Bank National Association, as trustee. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on September 2, 2016).
10.1*	First Amendment to Incentive Stock Option Plan for Sinclair Broadcast Group, Inc., adopted April 10, 1996. (Incorporated by reference from Registrant’s Report on Form 10-K/A for the year ended December 31, 1996).
10.2*	Second Amendment to Incentive Stock Option Plan for Sinclair Broadcast Group, Inc., adopted May 31, 1996. (Incorporated by reference from Registrant’s Report on Form 10-K/A for the year ended December 31, 1996).
10.3*	1996 Long-Term Incentive Plan for Sinclair Broadcast Group, Inc. (Incorporated by reference from Registrant’s Report on Form 10-K/A for the year ended December 31, 1996).
10.4*	First Amendment to 1996 Long-Term Incentive Plan for Sinclair Broadcast Group, Inc. (Incorporated by reference from Registrant’s Proxy Statement on Schedule 14A for the year ended December 31, 1998).
10.5*	Employment Agreement by and between Sinclair Broadcast Group, Inc. and Frederick G. Smith, dated June 12, 1998. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended September 30, 1998).
10.6*	Employment Agreement by and between Sinclair Broadcast Group, Inc. and J. Duncan Smith, dated June 12, 1998. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended September 30, 1998).
10.7*	Employment Agreement by and between Sinclair Broadcast Group, Inc. and Lucy Rutishauser dated March 19, 2001. (Incorporated by reference from Registrant’s Report on Form 10-K/A filed on April 29, 2005).
10.8*	Form of Restricted Stock Award Agreement. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended June 30, 2006).
10.9*	Stock Appreciation Right Agreement between Sinclair Broadcast Group, Inc. and David D. Smith dated April 2, 2007. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended March 31, 2007).
10.10	Agreement of Lease dated as of March 28, 2008 by and between Beaver Dam Limited Liability Company and Sinclair Broadcast Group, Inc. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on April 3, 2008).
10.11	Amended and restated lease dated as of February 8, 2010 between Gerstell Development Limited Partnership and Sinclair Media I, Inc. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2009).
10.12	Amended and restated lease dated as of February 8, 2010 between Cunningham Communications, Inc. and Sinclair Communications, LLC. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2009).
10.13	Amended and restated lease dated as of February 8, 2010 between Keyser Investment Group, Inc. and Sinclair Communications, LLC. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2009).
10.14	Amended and restated lease dated as of February 8, 2010 between Keyser Investment Group, Inc. and Sinclair Communications, LLC. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2009).
10.15*	Stock Appreciation Right Agreement, between Sinclair Broadcast Group, Inc. and David D. Smith dated March 22, 2011. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2010).
10.16*	Amended and Restated Employment Agreement by and between Sinclair Broadcast Group, Inc. and David B. Amy, dated November 11, 2011. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2011).
10.17*	Amended and Restated Employment Agreement by and between Sinclair Broadcast Group, Inc. and Barry M. Faber, dated August 31, 2015. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended September 30, 2015).
10.18*	Amended and Restated Employment Agreement by and between Sinclair Broadcast Group, Inc. and Steven M. Marks, dated November 14, 2011. (Incorporated by reference from Registrant’s Report on Form 10-K for the year ended December 31, 2011).
10.19*	Stock Appreciation Right Agreement, between Sinclair Broadcast Group, Inc. and David D. Smith dated March 9, 2012. (Incorporated by reference form Registrant’s Report on Form 10-Q for the quarter ended March 31, 2012)

54

EXHIBIT NO.	EXHIBIT DESCRIPTION
10.20	Amended and restated lease dated January 1, 2013 between Keyser Investment Group, Inc. and Sinclair Communications LLC. (Incorporated by reference from Registrant’s Report on Form 10-K filed on March 12, 2013).
10.21*	Stock Appreciation Right Agreement, between Sinclair Broadcast Group, Inc. and David D. Smith dated February 5, 2013. (Incorporated by reference from Registrant’s Report on Form 10-K filed on March 12, 2013).
10.22*	Employment Agreement for Steven J. Pruett, Chief Operating Officer. (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended March 31, 2013).
10.23*	Amendment to the 1996 Long-Term Incentive Plan of Sinclair Broadcast Group, Inc., by and among Sinclair Broadcast Group, Inc (Incorporated by reference from Registrant’s Report on Form 10-K filed on March 3, 2014).
10.24*	Stock Appreciation Right Agreement, between Sinclair Broadcast Group, Inc. and David D. Smith dated February 11, 2014. (Incorporated by reference from Registrant’s Report on Form 10-K filed on March 3, 2014).
10.25*	Employment Agreement for Christopher S. Ripley, Chief Financial Officer (Incorporated by reference from Registrant’s Report on Form 10-Q for the quarter ended March 31, 2014).
10.26	Sixth Amended and Restated Credit Agreement, dated July 31, 2014, by and among Sinclair Television Group, Inc., the guarantors party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and the lenders party thereto. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on August 8, 2014.
10.27	First Amendment to the Sixth Amended and Restated Credit Agreement and First Amendment to the Fourth Amended and Restated Security Agreement, dated as of April 30, 2015, by and among Sinclair Television Group, Inc., the guarantors party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and the lenders and other parties thereto. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on May 6, 2015).
10.28	Incremental Loan Amendment No. 1, dated as of April 30, 2015, by and among Sinclair Television Group, Inc., the guarantors party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and the lenders and other parties thereto. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on May 6, 2015).
10.29*	Stock Appreciation Right Agreement, between Sinclair Broadcast Group, Inc. and David D. Smith dated February 2, 2015. (Incorporated by reference from Registrant's Report on Form 10-K filed on March 2, 2015.)
10.30*	Stock Appreciation Right Agreement, between Sinclair Broadcast Group, Inc. and David D. Smith dated March 1, 2016. (Incorporated by reference from Registrant’s Quarterly Report on Form 10-Q filed on May 10, 2016.)
10.31	Second Amendment to the Sixth Amended and Restated Credit Agreement, dated as of July 19, 2016, by and among Sinclair Television Group, Inc., the guarantors party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and the lenders and other parties thereto. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on July 25, 2016).
10.32	Third Amendment to the Sixth Amended and Restated Credit Agreement, dated as of January 3, 2017, by and among Sinclair Television Group, Inc., the guarantors party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and the lenders and other parties thereto. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on November 2, 2016).
12	Computation of Ratio of Earnings to Fixed Charges.
21	Subsidiaries of the Registrant.
23	Consent of PricewaterhouseCoopers LLP Independent Registered Public Accounting Firm.
24	Power of Attorney; included above registrants signatures of this Form 10-K.
31.1	Certification by Christopher S. Ripley, as Chief Executive Officer of Sinclair Broadcast Group, Inc., pursuant to § 302 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. § 7241).
31.2	Certification by Lucy A. Rutishauser, as Chief Financial Officer of Sinclair Broadcast Group, Inc., pursuant to § 302 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. § 7241).
32.1	Certification by Christopher S. Ripley, as Chief Executive Officer of Sinclair Broadcast Group, Inc., pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350).
32.2	Certification by Lucy A. Rutishauser, as Chief Financial Officer of Sinclair Broadcast Group, Inc., pursuant to § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350).
99	Stockholders’ Agreement dated April 2, 2015 by and among the Smith Brothers. (Incorporated by reference from Registrant’s Current Report on Form 8-K filed on April 6, 2015).

55

EXHIBIT NO.	EXHIBIT DESCRIPTION
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase

* Management contracts and compensatory plans or arrangements required to be filed as an exhibit pursuant to Item 15(b) of Form 10-K.

(b)  Exhibits

The exhibits required by this Item are listed under Item 15 (a) (3).

56

ITEM 16.FORM 10-K SUMMARY

Not applicable

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized on this 28th day of February 2017.

SINCLAIR BROADCAST GROUP, INC.
By:	/s/ Christopher S. Ripley
	Christopher S. Ripley
	Chief Executive Officer

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below under the heading “Signature” constitutes and appoints Christopher S. Ripley as his true and lawful attorney-in-fact each acting alone, with full power of substitution and resubstitution, for him and in his name, place and stead in any and all capacities to sign any or all amendments to this 10-K and to file the same, with all exhibits thereto, and other documents in connection therewith, with the SEC, granting unto said attorney-in-fact full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully for all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact, or their substitutes, each acting alone, may lawfully do or cause to be done in virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

57

Signature	Title	Date
/s/ Christopher S. Ripley	President and Chief Executive Officer
Christopher S. Ripley		February 28, 2017
/s/ Lucy A. Rutishauser	Chief Financial Officer
Lucy A. Rutishauser		February 28, 2017
/s/ David R. Bochenek	Senior Vice President and
David R. Bochenek	Chief Accounting Officer	February 28, 2017
/s/ David D. Smith	Chairman of the Board and Executive Chairman
David D. Smith		February 28, 2017
/s/ Frederick G. Smith
Frederick G. Smith	Director	February 28, 2017
/s/ J. Duncan Smith
J. Duncan Smith	Director	February 28, 2017
/s/ Robert E. Smith
Robert E. Smith	Director	February 28, 2017
/s/ Lawrence E. McCanna
Lawrence E. McCanna	Director	February 28, 2017
/s/ Daniel C. Keith
Daniel C. Keith	Director	February 28, 2017
/s/ Martin R. Leader
Martin R. Leader	Director	February 28, 2017
/s/ Howard E. Friedman
Howard E. Friedman	Director	February 28, 2017

58

SINCLAIR BROADCAST GROUP, INC.

INDEX TO FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2016 and 2015	F-3
Consolidated Statements of Operations for the Years Ended December 31, 2016, 2015 and 2014	F-5
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016, 2015 and 2014	F-6
Consolidated Statements of Equity for the Years Ended December 31, 2016, 2015 and 2014	F-7
Consolidated Statements of Cash Flows for the Years Ended December 31, 2016, 2015 and 2014	F-10
Notes to Consolidated Financial Statements	F-11

F-1

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Sinclair Broadcast Group, Inc.:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, of comprehensive income, of equity (deficit), and of cash flows present fairly, in all material respects, the financial position of Sinclair Broadcast Group, Inc. and its subsidiaries (the Company) at December 31, 2016 and December 31, 2015, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2016 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the Report of Management on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As described in the Report of Management on Internal Control over Financial Reporting appearing under Item 9A, management has excluded the Tennis Channel and certain television stations (KUQI, KTOV, KXPX, WTVH, WSBT, KHGI, KWNB, KFXL, KJZZ and WSJV) from its assessment of internal control over financial reporting as of December 31, 2016 because they were acquired by the Company in purchase business combinations during 2016. We have also excluded the Tennis Channel and these television stations (KUQI, KTOV, KXPX, WTVH, WSBT, KHGI, KWNB, KFXL, KJZZ and WSJV) from our audit of internal control over financial reporting. The Tennis Channel and these television stations (KUQI, KTOV, KXPX, WTVH, WSBT, KHGI, KWNB, KFXL, KJZZ and WSJV) are wholly-owned subsidiaries whose total assets and total revenues represent 8% and 5%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2016.

/s/ PricewaterhouseCoopers LLP

Baltimore, Maryland

February 28, 2017

F-2

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	As of December 31,
	2016			2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	259,984		$	149,972
Accounts receivable, net of allowance for doubtful accounts of $2,124 and $4,495, respectively	513,954			424,608
Current portion of program contract costs	83,601			91,466
Income taxes receivable	5,500			823
Prepaid expenses and other current assets	36,267			26,903
Deferred barter costs	5,782			7,991
Total current assets	905,088			701,763
PROGRAM CONTRACT COSTS, less current portion	8,919			18,996
PROPERTY AND EQUIPMENT, net	717,576			717,137
RESTRICTED CASH	—			3,725
GOODWILL	1,990,746			1,931,093
INDEFINITE-LIVED INTANGIBLE ASSETS	156,306			132,465
DEFINITE-LIVED INTANGIBLE ASSETS, net	1,944,403			1,751,570
NOTES RECEIVABLE FROM AFFILIATES	19,500			—
OTHER ASSETS	220,630			175,566
Total assets (a)	$	5,963,168		$	5,432,315
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities	$	322,505		$	251,313
Income taxes payable	23,491			—
Current portion of notes payable, capital leases and commercial bank financing	171,131			164,184
Current portion of notes payable and capital leases payable to affiliates	3,604			3,166
Current portion of program contracts payable	109,702			108,260
Deferred barter revenues	6,040			8,080
Total current liabilities	636,473			535,003
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion	4,014,932			3,669,160
Notes payable and capital leases to affiliates, less current portion	14,181			17,850
Program contracts payable, less current portion	53,836			56,921
Deferred tax liabilities	609,317			585,072
Other long-term liabilities	76,493			68,631
Total liabilities (a)	5,405,232			4,932,637
COMMITMENTS AND CONTINGENCIES (See Note 10)
EQUITY:
SINCLAIR BROADCAST GROUP SHAREHOLDERS’ EQUITY:
Class A Common Stock, $.01 par value, 500,000,000 shares authorized, 64,558,207 and 68,792,483 shares issued and outstanding, respectively	646			688
Class B Common Stock, $.01 par value, 140,000,000 shares authorized, 25,670,684 and 25,928,357 shares issued and outstanding, respectively, convertible into Class A Common Stock	257			259
Additional paid-in capital	843,691			962,726
Accumulated deficit	(255,804		)	(437,029		)
Accumulated other comprehensive loss	(807		)	(834		)
Total Sinclair Broadcast Group shareholders’ equity	587,983			525,810
Noncontrolling interests	(30,047		)	(26,132		)
Total equity	557,936			499,678
Total liabilities and equity	$	5,963,168		$	5,432,315

The accompanying notes are an integral part of these consolidated financial statements.

_____________________________________________________

(a)         Our consolidated total assets as of December 31, 2016 and 2015 include total assets of variable interest entities (VIEs) of $142.3 million and $152.4 million, respectively, which can only be used to settle the obligations of the VIEs.  Our consolidated total liabilities as of December 31,

F-3

2016 and 2015 include total liabilities of the VIEs of $40.9 million and $35.6 million, respectively, for which the creditors of the VIEs have no recourse to us.  See Note 1. Nature of Operations and Summary of Significant Accounting Policies.

F-4

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands, except per share data)

	2016			2015			2014
REVENUES:
Media revenues	$	2,499,549		$	2,011,946		$	1,784,641
Revenues realized from station barter arrangements	135,566			111,337			122,262
Other non-media revenues	101,834			95,853			69,655
Total revenues	2,736,949			2,219,136			1,976,558
OPERATING EXPENSES:
Media production expenses	953,089			733,199			578,687
Media selling, general and administrative expenses	501,589			431,728			372,220
Expenses recognized from station barter arrangements	116,954			93,204			107,716
Amortization of program contract costs and net realizable value adjustments	127,880			124,619			106,629
Other non-media expenses	80,648			71,803			55,615
Depreciation of property and equipment	98,529			103,433			103,291
Corporate general and administrative expenses	73,556			64,246			62,495
Amortization of definite-lived intangible and other assets	183,795			161,454			125,496
Research and development expenses	4,085			12,436			6,918
(Gain) loss on asset dispositions	(6,029		)	278			(37,160		)
Total operating expenses	2,134,096			1,796,400			1,481,907
Operating income	602,853			422,736			494,651
OTHER INCOME (EXPENSE):
Interest expense and amortization of debt discount and deferred financing costs	(211,143		)	(191,447		)	(174,862		)
Loss from extinguishment of debt	(23,699		)	—			(14,553		)
Income from equity and cost method investments	1,735			964			2,313
Other income, net	3,144			1,540			4,998
Total other expense	(229,963		)	(188,943		)	(182,104		)
Income before income taxes	372,890			233,793			312,547
INCOME TAX PROVISION	(122,128		)	(57,694		)	(97,432		)
NET INCOME	250,762			176,099			215,115
Net income attributable to the noncontrolling interests	(5,461		)	(4,575		)	(2,836		)
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP	$	245,301		$	171,524		$	212,279
Dividends declared per share	$	0.71		$	0.66		$	0.63
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
Basic earnings per share	$	2.62		$	1.81		$	2.19
Diluted earnings per share	$	2.60		$	1.79		$	2.17
Weighted average common shares outstanding	93,567			95,003			97,114
Weighted average common and common equivalent shares outstanding	94,433			95,728			97,819

The accompanying notes are an integral part of these consolidated financial statements.

F-5

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands)

	2016			2015			2014
Net income	$	250,762		$	176,099		$	215,115
Amortization of net periodic pension benefit costs, net of taxes	—			190			173
Adjustments to pension obligations, net of taxes	27			621			(3,814		)
Pension settlement	—			4,810			—
Unrealized gain on investments, net of taxes	—			—			285
Comprehensive income	250,789			181,720			211,759
Comprehensive income attributable to the noncontrolling interests	(5,461		)	(4,575		)	(2,836		)
Comprehensive income attributable to Sinclair Broadcast Group	$	245,328		$	177,145		$	208,923

The accompanying notes are an integral part of these consolidated financial statements

F-6

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands, except share data)

	Sinclair Broadcast Group Shareholders
	Class A Common Stock					Class B Common Stock					Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Noncontrolling Interests			Total Equity (Deficit)
	Shares		Values			Shares		Values
BALANCE, December 31, 2013	74,145,569		$	741		26,028,357		$	260		$	1,094,918		$	(696,996	)	$	(2,553	)	$	9,334		$	405,704
Dividends declared on Class A and Class B Common Stock	—		—			—		—			—			(61,103		)	—			—			(61,103		)
Class B Common Stock converted into Class A Common Stock	100,000		1			(100,000	)	(1		)	—			—			—			—			—
Repurchases of Class A Common Stock	(4,876,121	)	(48		)	—		—			(133,109		)	—			—			—			(133,157		)
Class A Common Stock issued pursuant to employee benefit plans	209,451		2			—		—			11,510			—			—			—			11,512
Tax benefit on share based awards	—		—			—		—			1,365			—			—			—			1,365
Distributions to noncontrolling interests	—		—			—		—			—			—			—			(6,936		)	(6,936		)
Deconsolidation of variable interest entity	—		—			—		—			4,518			—			(546		)	(27,773		)	(23,801		)
Other comprehensive income	—		—			—		—			—			—			(3,356		)	—			(3,356		)
Net income	—		—			—		—			—			212,279			—			2,836			215,115
BALANCE, December 31, 2014	69,578,899		$	696		25,928,357		$	259		$	979,202		$	(545,820	)	$	(6,455	)	$	(22,539	)	$	405,343

The accompanying notes are an integral part of these consolidated financial statements.

F-7

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED STATEMENTS OF EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands, except share data)

	Sinclair Broadcast Group Shareholders
	Class A Common Stock					Class B Common Stock			Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Noncontrolling Interests			Total Equity
	Shares		Values			Shares	Values
BALANCE, December 31, 2014	69,578,899		$	696		25,928,357	$	259	$	979,202		$	(545,820	)	$	(6,455	)	$	(22,539	)	$	405,343
Dividends declared and paid on Class A and Class B Common Stock	—		—			—	—		—			(62,733		)	—			—			(62,733		)
Repurchases of Class A Common Stock	(1,107,887	)	(11		)	—	—		(28,812		)	—			—			—			(28,823		)
Class A Common Stock issued pursuant to employee benefit plans	321,471		3			—	—		11,624			—			—			—			11,627
Tax benefit on share based awards	—		—			—	—		712			—			—			—			712
Distributions to noncontrolling interests	—		—			—	—		—			—			—			(9,918		)	(9,918		)
Issuance of subsidiary stock awards	—		—			—	—		—			—			—			1,750			1,750
Other comprehensive income	—		—			—	—		—			—			5,621			—			5,621
Net income	—		—			—	—		—			171,524			—			4,575			176,099
BALANCE, December 31, 2015	68,792,483		$	688		25,928,357	$	259	$	962,726		$	(437,029	)	$	(834	)	$	(26,132	)	$	499,678

The accompanying notes are an integral part of these consolidated financial statements.

F-8

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED STATEMENTS OF EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands, except share data)

	Sinclair Broadcast Group Shareholders
	Class A Common Stock					Class B Common Stock					Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Loss			Noncontrolling Interests			Total Equity
	Shares		Values			Shares		Values
BALANCE, December 31, 2015	68,792,483		$	688		25,928,357		$	259		$	962,726		$	(437,029	)	$	(834	)	$	(26,132	)	$	499,678
Cumulative effect of adoption of new accounting standard	—		—			—		—			431			1,833			—			—			2,264
Dividends declared and paid on Class A and Class B Common Stock	—		—			—		—			—			(65,909		)	—			—			(65,909		)
Class B Common Stock converted into Class A Common Stock	257,673		2			(257,673	)	(2		)	—			—			—			—			—
Repurchases of Class A Common Stock	(4,892,461	)	(48		)	—		—			(136,235		)	—			—			—			(136,283		)
Class A Common Stock issued pursuant to employee benefit plans	400,512		4			—		—			16,769			—			—			—			16,773
Distributions to noncontrolling interests, net	—		—			—		—			—			—			—			(10,722		)	(10,722		)
Issuance of subsidiary stock awards	—		—			—		—			—			—			—			1,346			1,346
Other comprehensive income	—		—			—		—			—			—			27			—			27
Net income	—		—			—		—			—			245,301			—			5,461			250,762
BALANCE, December 31, 2016	64,558,207		$	646		25,670,684		$	257		$	843,691		$	(255,804	)	$	(807	)	$	(30,047	)	$	557,936

The accompanying notes are an integral part of these consolidated financial statements.

F-9

SINCLAIR BROADCAST GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

(In thousands)

	2016			2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	250,762		$	176,099		$	215,115
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation of property and equipment	98,529			103,433			103,291
Amortization of definite-lived intangible assets	183,795			161,454			125,496
Amortization of program contract costs and net realizable value adjustments	127,880			124,619			106,629
Loss on extinguishment of debt, non-cash portion	3,875			—			4,605
Stock-based compensation	16,939			18,315			14,296
Deferred tax (benefit) provision	6,118			(28,446		)	(818		)
(Gain) loss on the sale of assets	(6,029		)	278			(37,160		)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Increase in accounts receivable	(71,718		)	(38,666		)	(44,253		)
Net change in net income taxes payable/receivable	18,814			3,203			8,253
Increase in prepaid expenses and other current assets	(969		)	(3,474		)	(2,215		)
Increase (decrease) in accounts payable and accrued liabilities	60,086			(15,902		)	55,457
Payments on program contracts payable	(111,506		)	(109,057		)	(93,682		)
Real estate held for development and sale	1,075			(2,674		)	(20,683		)
Other, net	14,115			13,745			(1,732		)
Net cash flows from operating activities	591,766			402,927			432,599
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	(94,465		)	(91,421		)	(81,458		)
Acquisition of businesses, net of cash acquired	(425,857		)	(17,011		)	(1,485,039		)
Proceeds from the sale of assets	16,396			23,650			176,675
Purchase of alarm monitoring contracts	(40,206		)	(39,185		)	(27,701		)
Decrease (increase) in restricted cash	3,725			(3,725		)	11,616
Investments in equity and cost method investees	(51,247		)	(44,715		)	(8,104		)
Proceeds from termination of life insurance policies	—			—			17,042
Distributions from equity and cost method investees	6,786			21,749			3,869
Loans to affiliates	(19,500		)	—			—
Other, net	(1,635		)	(653		)	(4,256		)
Net cash flow used in investing activities	(606,003		)	(151,311		)	(1,397,356		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	1,024,912			382,887			1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(671,215		)	(395,147		)	(582,764		)
Repurchase of outstanding Class A Common Stock	(136,283		)	(28,823		)	(133,157		)
Dividends paid on Class A and Class B Common Stock	(65,909		)	(62,733		)	(61,103		)
Payments for deferred financing costs	(15,681		)	(3,847		)	(16,590		)
Noncontrolling interests distributions	(10,464		)	(9,918		)	(8,184		)
Other, net	(1,111		)	(1,745		)	3,413
Net cash flows from (used in) financing activities	124,249			(119,326		)	702,335
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	110,012			132,290			(262,422		)
CASH AND CASH EQUIVALENTS, beginning of year	149,972			17,682			280,104
CASH AND CASH EQUIVALENTS, end of year	$	259,984		$	149,972		$	17,682

The accompanying notes are an integral part of these consolidated financial statements.

F-10

SINCLAIR BROADCAST GROUP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

 Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments.

As of December 31, 2016, our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 173 stations in 81 markets. These stations broadcast 483 channels as of December 31, 2016. For the purpose of this report, these 173 stations and 483 channels are referred to as “our” stations and channels.

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and variable interest entities (VIEs) for which we are the primary beneficiary.  Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities.  All intercompany transactions and account balances have been eliminated in consolidation.

Variable Interest Entities

In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE.  We consolidate VIEs when we are the primary beneficiary.  The assets of each of our consolidated VIEs can only be used to settle the obligations of the VIE.  All the liabilities are non-recourse to us except for certain debt of VIEs which we guarantee.

Third-party station licensees.  Certain of our stations provide services to other station owners within the same respective market, such as LMAs, where we provide programming, sales, operational and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational and administrative services.  In certain cases, we have also entered into purchase agreements or options to purchase, the license related assets of the licensee.  We typically own the majority of the non-license assets of the stations and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee’s acquisition financing.  The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. As of December 31, 2016 and 2015, we have concluded that 37 of these licensees are VIEs, respectively.  Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary of the variable interests because, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and because we absorb losses and returns that would be considered significant to the VIEs.  Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham).  See Note 11. Related Person Transactions for more information about the arrangements with Cunningham. The net revenues of the stations which we consolidate were $310.4 million, $284.4 million and $286.3 million for the years ended December 31, 2016, 2015, and 2014, respectively.  The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.  See Changes in the Rules of Television Ownership and Joint Sale Agreements within Note 10. Commitments and Contingencies for discussion of recent changes in FCC rules related to JSAs.

F-11

As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets as of December 31, 2016 and 2015 were as follows (in thousands):

	2016		2015
ASSETS
CURRENT ASSETS:
Accounts receivable	$	21,879	$	21,719
Other current assets	12,076		14,108
Total current asset	33,955		35,827
PROGRAM CONTRACT COSTS, less current portion	2,468		4,541
PROPERTY AND EQUIPMENT, net	2,996		7,609
GOODWILL	791		787
INDEFINITE-LIVED INTANGIBLE ASSETS	15,684		17,599
DEFINITE-LIVED INTANGIBLE ASSETS, net	79,509		79,086
OTHER ASSETS	6,871		6,924
Total assets	$	142,274	$	152,373
LIABILITIES
CURRENT LIABILITIES:
Other current liabilities	18,992		17,554
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion	19,449		24,594
Program contracts payable, less current portion	14,353		13,679
Other long term liabilities	12,921		8,067
Total liabilities	$	65,715	$	63,894

The amounts above represent the consolidated assets and liabilities of the VIEs described above, for which we are the primary beneficiary, and have been aggregated as they all relate to our broadcast business.  Excluded from the amounts above are payments made to Cunningham under the LMA which are treated as a prepayment of the purchase price of the stations and capital leases between us and Cunningham which are eliminated in consolidation.  The total payments made under these LMAs as of December 31, 2016 and 2015, which are excluded from liabilities above, were $40.8 million and $37.6 million, respectively.  The total capital lease liabilities, net of capital lease assets, excluded from the above were $4.5 million, for both years ended December 31, 2016 and 2015.  Also excluded from the amounts above are liabilities associated with the certain outsourcing agreements and purchase options with certain VIEs totaling $74.5 million and $72.5 million as of December 31, 2016 and December 31, 2015, respectively, as these amounts are eliminated in consolidation.  The risk and reward characteristics of the VIEs are similar.

Other investments.  We have investments in other real estate ventures and investment companies which are considered VIEs.  However, we do not participate in the management of these entities including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.  We account for these entities using the equity or cost method of accounting.

The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary as of December 31, 2016 and 2015 was $117.0 million and $18.1 million, respectively, are included in other assets in the consolidated balance sheets. See Other Assets below for more information related to our equity and cost method investments. The increase in 2016 was due to the adoption of the revised accounting guidance during the first quarter of 2016 related to consolidation as discussed under Recent Accounting Pronouncements below, which resulted in additional investments being considered VIEs. Our maximum exposure is equal to the carrying value of our investments.  The income and loss related to these investments are recorded in income from equity and cost method investments in the consolidated statement of operations.  We recorded income of $2.5 million, $7.7 million and $2.2 million for the years ended December 31, 2016, 2015 and 2014, respectively, related to these investments.

F-12

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities.  Actual results could differ from those estimates.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective.  The new standard will be effective for annual reporting periods beginning after December 15, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We do not currently believe that the adoption of this guidance will have a material impact on our station advertising or retransmission consent revenue; however, we have not finalized our assessment of the impact of this guidance on our consolidated financial statements.

In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. The new standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We adopted this guidance beginning December 31, 2016, which involves adding policies and procedures around our assessments to continue as a going concern.

In February 2015, the FASB issued new guidance that amends the current consolidation guidance on the determination of whether an entity is a variable interest entity.  The new standard is effective for the interim and annual periods beginning after December 15, 2015. We adopted this revised guidance on a modified retrospective basis during the three months ended March 31, 2016. As disclosed under Other investments under Variable Interest Entities above, the adoption of the revised guidance resulted in additional investments in real estate ventures and investment companies being considered VIEs, however we concluded that we were not the primary beneficiary of these investments. The revised guidance did not have any other impact on our consolidation conclusions.

In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This new guidance will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In March 2016, the FASB issued new guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income tax effects, forfeitures, the impact of employee income tax withholdings and classification of certain related items in the statement of cash flows. We early adopted this guidance effective January 1, 2016, which did not have a material effect on the consolidated financial statements. The adoption of the various changes in the guidance were applied as required by the guidance either on the prospective, modified retrospective, or full retrospective basis. As shown in the consolidated statement of stockholders' equity, upon adoption, we recorded a $0.4 million increase to additional paid in capital and a $1.8 million decrease in accumulated deficit, net of taxes, to record the cumulative effect of changing the classification of certain liability awards to equity classification. Additionally, for the years ended December 31, 2015 and 2014, we reclassified $2.2 million and $2.1 million, respectively from net cash flows from operating activities to net cash flows from financing activities in our consolidated statement of cash flows related to cash payments made to taxing authorities on certain employees' behalf for shares withheld.

In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard, which includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flow. The new standard is effective for fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

F-13

In October 2016, the FASB issued new guidance related to the accounting for income tax consequences of intra-entity transfers of assets other than inventory. Currently the recognition of current and deferred income taxes for an intra-entity are prohibited until the asset has been sold to an outside party. This update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance which relates to related party considerations in the variable interest entities assessment.  The new standard is effective for the interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of the guidance on our consolidated financial statements.

In November 2016, FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new standard requires that a statement of cash flow explain change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling from period to period as shown on the cash flow. The new standard is effective for the fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for the interim and annual periods beginnings after December 31, 2017. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In January 2017, the FASB issued guidance which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new standard should be applied prospectively and is effective for the interim and annual periods beginnings after December 31, 2019. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

During 2015, we entered into certain definitive agreements to purchase certain stations, which required certain deposits to be made in escrow accounts. As of the year ended December 31, 2015, we had $3.7 million restricted cash held on our balance sheet.

Accounts Receivable

Management regularly reviews accounts receivable and determines an appropriate estimate for the allowance for doubtful accounts based upon the impact of economic conditions on the merchant’s ability to pay, past collection experience and such other factors which, in management’s judgment, deserve current recognition.  In turn, a provision is charged against earnings in order to maintain the appropriate allowance level.

A rollforward of the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Balance at beginning of period	$	4,495		$	4,246		$	3,379
Charged to expense	1,974			1,292			2,186
Net write-offs	(4,345		)	(1,043		)	(1,319		)
Balance at end of period	$	2,124		$	4,495		$	4,246

F-14

Programming

We have agreements with distributors for the rights to television programming over contract periods, which generally run from one to seven years.  Contract payments are made in installments over terms that are generally equal to or shorter than the contract period.  Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet where the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or estimated net realizable value.  With the exception of one and two-year contracts, amortization of program contract costs is computed using an accelerated method.  Program contract costs are amortized on a straight-line basis for one and two-year contracts.  Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets.  Payments of program contract liabilities are typically made on a scheduled basis and are not affected by adjustments for amortization or estimated net realizable value.

Estimated net realizable values are based on management’s expectation of future advertising revenues, net of sales commissions, to be generated by the program material.  We perform a net realizable value calculation quarterly for each of our program contract costs in accordance with the accounting guidance for the broadcasting industry.  We utilize sales information to estimate the future revenue of each commitment and measure that amount against the commitment.  If the estimated future revenue is less than the amount of the commitment, a loss is recorded in amortization of program contract costs and net realizable value adjustments in the consolidated statements of operations.

Barter Arrangements

Certain program contracts provide for the exchange of advertising airtime in lieu of cash payments for the rights to such programming.  The revenues realized from station barter arrangements are recorded as the programs are aired at the estimated fair value of the advertising airtime given in exchange for the program rights.  Program service arrangements are accounted for as station barter arrangements, however, network affiliation programming is excluded from these calculations.  Revenues are recorded as revenues realized from station barter arrangements and the corresponding expenses are recorded as expenses recognized from station barter arrangements.

We broadcast certain customers’ advertising in exchange for equipment, merchandise and services.  The estimated fair value of the equipment, merchandise or services received is recorded as deferred barter costs and the corresponding obligation to broadcast advertising is recorded as deferred barter revenues.  The deferred barter costs are expensed or capitalized as they are used, consumed or received and are included in station production expenses and station selling, general and administrative expenses, as applicable.  Deferred barter revenues are recognized as the related advertising is aired and are recorded in revenues realized from station barter arrangements.

Other Assets

Other assets as of December 31, 2016 and 2015 consisted of the following (in thousands):

	2016		2015
Equity and cost method investments	$	168,572	$	116,031
Unamortized costs related to debt issuances	4,936		3,663
Other	47,122		55,872
Total other assets	$	220,630	$	175,566

We have equity and cost method investments primarily in private equity investments and real estate ventures.  In the event that one or more of our investments are significant, we are required to disclose summarized financial information.  For the years ended December 31, 2016, 2015 and 2014, none of our investments were significant individually or in the aggregate.

As of December 31, 2016 and 2015, our unfunded commitments related to private equity investment funds totaled $13.5 million and $22.1 million, respectively.

F-15

When factors indicate that there may be a decrease in value of an equity or cost method investment, we assess whether a loss in value has occurred related to the investment.  If that loss is deemed to be other than temporary, an impairment loss is recorded accordingly.  For any investments that indicate a potential impairment, we estimate the fair values of those investments using discounted cash flow models, unrelated third party valuations or industry comparables, based on the various facts available to us.  For the year ended December 31, 2016, we recorded a $2.5 million impairment charge related to one real estate investment. For the year ended December 31, 2015, there were $6.0 million of impairment charges recorded. For the year ended December 31, 2014, no impairment charges were recorded. The impairments are recorded in the income (loss) from equity and cost method investments in our consolidated statement of operations.

Unamortized costs related to debt issuances represent costs related to our revolving credit facility.  Unamortized costs related to our other debt issuances is recorded as a direct deduction from the carrying value of the debt recorded as liability. We amortize our deferred debt financing costs to interest expense over the term of the respective debt instruments using the effective interest method. Previously capitalized debt financing costs are recognized as a loss on extinguishment of debt if we determine that there has been a an extinguishment of the related debt.

Impairment of Goodwill, Intangibles and Other Long-Lived Assets

We evaluate our goodwill and indefinite lived intangible assets for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that an impairment may exist. Our goodwill has been allocated to and is tested for impairment at the reporting unit level. A reporting unit is an operating segment or a component of an operating segment to the extent that the component constitutes a business for which discrete financial information is available regularly reviewed by segment management. Components of an operating segment with similar economic characteristics are aggregated when testing goodwill for impairment. Our indefinite-lived intangible assets consist primarily of our broadcast licenses and a trade name.

In the performance of our annual assessment of goodwill for impairment we have the option to qualitatively assess whether it is more likely than not a reporting unit has been impaired.  As part of this qualitative assessment, for each reporting unit, we weigh the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors.  The reporting unit specific factors that we consider include current and forecasted financial performance, the significance of the excess fair value over carrying value in prior quantitative assessments, and any changes to the reporting units’ net book value since the most recent impairment tests.  We also consider whether there were any significant changes in the regulatory environment and business climate of the industry, and whether there were any negative pressures on growth rates and discount rates.

If we conclude that it is more likely than not that a reporting unit is impaired, or if we elect not to perform the optional qualitative assessment, we will apply the quantitative two-step impairment test. In the first step, we determine and compare the fair value of the reporting unit to the net book value of the reporting unit. We estimate the fair value of our reporting units utilizing a combination of a market based approach which considers earnings and cash flow multiples of comparable businesses and recent market transactions as well as an income approach involving the performance of a discounted cash flow analysis. Our discounted cash flow model is based on our judgment of future market conditions based on our internal forecast of future performance, as well as discount rates that are based on a number of factors including market interest rates, a weighted average cost of capital analysis, and includes adjustments for market risk and company specific risk.  If the net book value of the reporting unit were to exceed the fair value, we would then perform the second step of the impairment test, which requires allocation of the reporting unit’s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill to determine the implied fair value. An impairment charge will be recognized only when the implied fair value of a reporting unit’s goodwill is less than its carrying amount.

For our annual impairment test for indefinite-lived intangible assets we have the option to perform a qualitative assessment to determine whether it is more likely than not that these assets are impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the indefinite-lived intangible assets as well as industry and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. The market specific factors that we consider include recent market projections from both independent and internal sources for advertising revenue and operating costs, estimated normal market share and capital expenditures, as well as the significance of the excess fair value over carrying value in prior quantitative assessments. We also consider whether there were any significant changes in the regulatory environment and business climate of the industry, and whether there were any negative pressures on growth rates and discount rates. When evaluating our broadcast licenses for impairment, the qualitative assessment is done at the market level because the broadcast licenses within the market are complementary and together enhance the single broadcast license of each station. If we conclude that it is more likely than not that one of our broadcast licenses is impaired, we will perform a quantitative assessment by comparing the aggregate fair value of the broadcast licenses in the market to the respective carrying values. We estimate the fair values of our broadcast licenses using the Greenfield method which is an income approach. This method involves a discounted cash flow

F-16

model that incorporates several variables, including, but not limited to, market revenues and long term growth projections, estimated market share for the typical participant without a network affiliation and estimated profit margins based on market size and station type. The model also assumes outlays for capital expenditures, future terminal values, an effective tax rate assumption and a discount rate based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk. If the carrying amount of the broadcast licenses exceeds the fair value, then an impairment loss is recorded to the extent that the carrying value of the broadcast licenses exceeds the fair value.

We periodically evaluate our long-lived assets for impairment and continue to evaluate them as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable.  We evaluate the recoverability of long-lived assets by measuring the carrying amount of the assets against the estimated undiscounted future cash flows associated with them.  At the time that such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are tested for impairment by comparing their estimated fair value to the carrying value.  We typically estimate fair value using discounted cash flow models and appraisals.  See Note 5.  Goodwill, Indefinite-Lived Intangible Assets and Other Intangible Assets, for more information.

Accounts Payable and Accrued Liabilities

Accrued liabilities consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016		2015
Compensation and employee health insurance	$	78,682	$	65,364
Interest	41,979		32,788
Deferred revenue	25,692		24,837
Programming related obligations	76,962		54,381
Other accruals relating to operating expenses	99,190		73,943
Total accounts payable and accrued liabilities	$	322,505	$	251,313

We expense these activities when incurred.

Income Taxes

We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities.  We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized.  In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies and forecasts of future taxable income.  In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. As of December 31, 2016 and 2015, a valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income.  Future changes in operating and/or taxable income or other changes in facts and circumstances could significantly impact the ability to realize our deferred tax assets which could have a material effect on our consolidated financial statements.

Management periodically performs a comprehensive review of our tax positions and we record a liability for unrecognized tax benefits when such tax positions do not meet the “more-likely-than-not” threshold.  Significant judgment is required in determining whether a tax position meets the “more-likely-than-not” threshold, and it is based on a variety of facts and circumstances, including interpretation of the relevant federal and state income tax codes, regulations, case law and other authoritative pronouncements.  Based on this analysis, the status of ongoing audits and the expiration of applicable statute of limitations, liabilities are adjusted as necessary.  The resolution of audits is unpredictable and could result in tax liabilities that are significantly higher or lower than for what we have provided.  See Note 9. Income Taxes, for further discussion of accrued unrecognized tax benefits.

F-17

Supplemental Information — Statements of Cash Flows

During 2016, 2015 and 2014, we had the following cash transactions (in thousands):

	2016		2015		2014
Income taxes paid	$	108,347	$	106,979	$	100,986
Income tax refunds	$	12,193	$	196	$	1,407
Interest paid	$	191,117	$	182,425	$	157,349

For the year ended December 31, 2016, non-cash investing activities include property and equipment purchases accrued as of December 31, 2016 of $5.9 million. For the year ended December 31, 2015, non-cash transactions related to capital lease obligations were $2.8 million. For the year ended December 31, 2014, non-cash conversion of the 4.875% Notes into Class A Common Stock was $8.6 million, net of taxes for the year ended December 31, 2014.

Revenue Recognition

Total revenues include: (i) station advertising revenue, net of agency commissions; (ii) barter advertising revenues; (iii) retransmission consent fees; (iv) network compensation; (v) other media revenues and (vi) revenues from our other businesses.

Advertising revenues, net of agency commissions, are recognized in the period during which advertisements are placed.

Some of our retransmission consent agreements contain both advertising and retransmission consent elements.  We have determined that these retransmission consent agreements are revenue arrangements with multiple deliverables.  Advertising and retransmission consent deliverables sold under our agreements are separated into different units of accounting at fair value.  Revenue applicable to the advertising element of the arrangement is recognized similar to the advertising revenue policy noted above.  Revenue applicable to the retransmission consent element of the arrangement is recognized over the life of the agreement.

Network compensation revenue is recognized over the term of the contract.  All other significant revenues are recognized as services are provided.

Share Repurchase Program

On March 20, 2014, the Board of Directors approved an $150.0 million share repurchase authorization. On September 6, 2016 the Board of Directors approved an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. For the year ended December 31, 2016, we have repurchased approximately 4.9 million shares of Class A Common Stock for $136.4 million. As of December 31, 2016, the total remaining repurchase authorization was $119.1 million.

Advertising Expenses

Promotional advertising expenses are recorded in the period when incurred and are included in media production and other non-media expenses.  Total advertising expenses, net of advertising co-op credits, were $18.5 million, $23.9 million and $21.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Financial Instruments

Financial instruments, as of December 31, 2016 and 2015, consisted of cash and cash equivalents, trade accounts receivable, accounts payable, accrued liabilities and notes payable.  The carrying amounts approximate fair value for each of these financial instruments, except for the notes payable.  See Note 6. Notes Payable and Commercial Bank Financing, for additional information regarding the fair value of notes payable.

F-18

Post-retirement Benefits

During the fourth quarter of 2015, we fully settled the benefit obligation of our pension plan. We relieved our benefit obligation via lump sum distributions and/or the purchase of annuity contracts. Upon settlement we recorded $9.3 million of pension expense, including the recognition of $8.0 million of unamortized actuarial loses which was recorded in accumulated other comprehensive income, and $4.6 million of pension liability, representing the underfunded status of our defined pension plan, which was included within other long-term liabilities within our consolidated balance sheet.

We maintain a supplemental executive retirement plan (SERP) which we inherited upon the acquisition of certain stations. As of December 31, 2016, the estimated projected benefit obligation was $21.5 million, of which $1.7 million is included in accrued expenses in the consolidated balance sheet and the $19.8 million is included in other long-term liabilities.  During the years ended December 31, 2016 and 2015, we made $1.7 million and $1.5 million in benefit payments, recognized $0.9 million and $0.9 million of periodic pension expense, reported in other expenses in the consolidated statement of operations, and $0.1 million and $1.0 million of actuarial gains through other comprehensive income, respectively.

At December 31, 2016, the projected benefit obligation was measured using a 3.89% discount rate compared to a discount rate of 4.11% for the year ended December 31, 2015. We estimated its discount rate, in consultation with our independent actuaries, based on a yield curve constructed from a portfolio of high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plan.

We estimate that benefits expected to be paid to participants under the SERP as follows (in thousands):

	December 31,
2017	$	1,749
2018	1,669
2019	1,597
2020	1,538
2021	1,479
Next 5 years	6,532

Reclassifications

Certain reclassifications have been made to prior years’ consolidated financial statements to conform to the current year’s presentation.

F-19

2.ACQUISITIONS AND DISPOSITION OF ASSETS:

During the years ended December 31, 2016, 2015 and 2014, we acquired certain assets for an aggregate purchase price of $1,872.0 million plus working capital of $56.3 million.

All of these acquisitions provide expansion into additional markets and increases value based on the synergies we can achieve. The following summarizes the material acquisition activity during the years ended December 31, 2016, 2015 and 2014:

2016 Acquisitions

Tennis Channel. In March 2016, we acquired all of the outstanding common stock of Tennis Channel (Tennis), a cable network which includes coverage of the top 100 tennis tournaments and original professional sport and tennis lifestyle shows, for $350.0 million plus a working capital of $9.2 million. This was funded through cash on hand and a draw on the Bank Credit Agreement. The acquisition provides an expansion of our network business and increases value based on the synergies we can achieve. Tennis is reported within Other within Note 13. Segment Data.

The following table summarizes the allocated fair value of acquired assets and assumed liabilities of Tennis (in thousands):

Cash	$	5,111
Accounts receivable	17,629
Prepaid expenses and other current assets	6,518
Property and equipment	5,964
Definite-lived intangible assets	272,686
Indefinite-lived intangible assets	23,400
Other assets	619
Accounts payable and accrued liabilities	(7,414		)
Capital leases	(115		)
Deferred tax liability	(16,991		)
Other long term liabilities	(1,669		)
Fair value of identifiable net assets acquired	305,738
Goodwill	53,427
Total	$	359,165

The allocations presented above are based upon management’s estimate of the fair values using valuation techniques including income, cost and market approaches.  In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates.  The purchase prices have been allocated to the acquired assets and assumed liabilities based on estimated fair values.

The definite-lived intangible assets of $272.7 million related primarily to customer relationships, which represent existing advertiser relationships and contractual relationships with MVPDs and will be amortized over a weighted average useful life of 15 years.  Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives.  Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies.  Goodwill will not be deductible for tax purposes.

Other 2016 Acquisitions. During the year ended December 31, 2016, we acquired certain television station related assets for an aggregate purchase price of $72.0 million less working capital of $0.2 million. We also exchanged certain broadcast assets whichhad a carrying value of $23.8 million with another broadcaster for no cash consideration, and recognized a gain on the derecognition of those broadcast assets of $4.4 million, respectively.

F-20

2015 Acquisition

During the year ended December 31, 2015, we acquired one television station for a cash purchase price of $15.5 million, which was financed with cash on hand.

2014 Acquisitions

Allbritton.  Effective August 1, 2014, we completed the acquisition of all of the outstanding common stock of Perpetual Corporation and equity interest of Charleston Television, LLC (together the “Allbritton Companies”) for $985.0 million plus working capital of $50.1 million.  The Allbritton Companies owned and operated nine television stations in the following seven markets, all of which were affiliated with ABC. Also included in the purchase was NewsChannel 8, a 24-hour cable/satellite news network covering the Washington, D.C. metropolitan area.  We financed the total purchase price with proceeds from the issuance of 5.625% senior unsecured notes, a draw on our amended bank credit agreement, and cash on hand. See Note 6. Notes Payable and Commercial Bank Financing. 

Concurrent with the acquisition of the Allbritton companies, due to FCC multiple ownership rules, we sold WHTM in Harrisburg/Lancaster/York, PA to Media General in September 2014 for $83.4 million, less working capital of $0.2 million and the non-license assets of WTAT in Charleston, SC to Cunningham for $14.0 million, effective August 1, 2014.  WHTM was acquired from the Allbritton companies and assets of WHTM were classified as assets held for sale in the Allbritton purchase price allocation.  We did not recognize a gain or loss on this transaction. Prior to the sale of WTAT, we operated the station under an LMA and purchase agreement with Cunningham.  This sale was accounted for as a transaction between parties under common control.  See Note 11. Related Person Transactions for further discussion.

MEG Stations.  Effective December 19, 2014, we completed the acquisition of four television stations in three markets from Media General, Inc (MEG Stations) for a purchase price of $207.5 million less working capital of $1.6 million.  We financed the purchase price with cash on hand and borrowing under our revolving credit facility. We financed the purchase price, net of the proceeds received from the sale of those stations, with borrowings under our revolving credit facility.

Simultaneously, in December 2014, we sold to Media General the broadcast assets of two stations for $93.1 million less working capital of $0.6 million, which resulted in a gain on sale of $39.0 million.

KSNV.  Effective November 1, 2014, we completed the acquisition of certain of assets of KSNV (NBC) in Las Vegas, NV from Intermountain West Communications Company (Intermountain West) for $118.5 million less working capital of $0.2 million.  In conjunction with the purchase, we assumed the rights under the affiliation agreement with NBC and swapped our KVMY call letters for the KSNV call letters.  We financed the total purchase price with cash on hand and borrowings under our revolving credit facility.

Other 2014 Acquisitions.  During the year ended December 31, 2014, we acquired certain assets related to eight other television stations in four markets.  The purchase price for these stations was $123.5 million less working capital of $1.1 million which was financed with cash on hand and borrowings under our revolving credit facility.

F-21

The following tables summarize the allocated fair value of acquired assets and assumed liabilities, including the net assets of consolidated VIEs (in thousands):

	MEG Station			KSNV			Allbritton			Other			Total 2014 acquisitions
Accounts receivable	—			—			38,542			—			38,542
Prepaid expenses and other current assets	476			67			19,890			79			20,512
Program contract costs	1,954			482			1,204			2,561			6,201
Property and equipment	23,462			8,300			46,600			8,352			86,714
Indefinite-lived intangible assets	675			—			13,700			225			14,600
Definite-lived intangible assets	125,925			70,375			564,100			87,915			848,315
Other assets	—			—			20,352			1,500			21,852
Assets held for sale	—			—			83,200			—			83,200
Accounts payable and accrued liabilities	(2,085		)	(277		)	(8,351		)	(1,143		)	(11,856		)
Program contracts payable	(1,914		)	(481		)	(1,140		)	(2,554		)	(6,089		)
Deferred tax liabilities	—			—			(261,291		)	—			(261,291		)
Other long term liabilities	—			(1,200		)	(17,263		)	—			(18,463		)
Fair value of identifiable net assets acquired	148,493			77,266			499,543			96,935			822,237
Goodwill	57,398			41,024			535,694			25,501			659,617
Total	$	205,891		$	118,290		$	1,035,237		$	122,436		$	1,481,854

The allocations presented above are based upon management’s estimate of the fair values using valuation techniques including income, cost and market approaches.  In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates.  The purchase prices have been allocated to the acquired assets and assumed liabilities based on estimated fair values.

During the year ended December 31, 2015, we made certain measurement period adjustments to the initial purchase accounting for the acquisitions in 2014, resulting in reclassifications between certain noncurrent assets and noncurrent liabilities, including a decrease to property and equipment of approximately $12.5 million, a decrease to broadcast licenses of $3.4 million, an increase to definite-lived intangible assets of $58.3 million, and a decrease to goodwill of $42.2 million, as well as a corresponding decrease to depreciation of $0.7 million and a decrease to amortization of $0.7 million during the year ended December 31, 2015.

The intangible assets will be amortized over the weighted average useful lives of 15 years for network affiliations and 14 years for the customer relationships, which represent existing advertiser relationships and contractual relationships with MVPDs.  Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives.  Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies.  Other intangible assets will be amortized over the respective weighted average useful lives ranging from 14 to 15 years.

The following tables summarize the amounts allocated to definite-lived intangible assets representing the estimated fair values and estimated goodwill deductible for tax purposes (in thousands):

	MEG Stations		KSNV		Allbritton		Other		Total 2014 acquisitions
Network affiliations	$	56,925	$	44,775	$	356,900	$	27,575	$	486,175
Customer relationships	45,500		25,600		207,200		44,800		323,100
Other intangible assets	23,500		—		—		15,540		39,040
Fair value of identifiable definite-lived intangible assets acquired	$	125,925	$	70,375	$	564,100	$	87,915	$	848,315
Estimated definite-lived intangible assets deductible for tax purposes	$	57,398	$	41,024	—		$	25,501	$	123,923

F-22

Financial Results of Acquisitions

The following tables summarize the results of the net media revenues and operating income (loss) included in the financial statements of the Company beginning on the acquisition date of each acquisition as listed below (in thousands):

Revenues	2016		2015		2014
Tennis Channel	$	84,040	$	—	$	—
MEG Stations	86,466		69,275		2,299
KSNV	63,818		32,471		5,972
Allbritton	253,845		231,300		106,258
Other stations acquired in:
2016	49,186		—		—
2015	2,676		1,007		—
2014	49,298		42,470		9,172
Total net media revenues	$	589,329	$	376,523	$	123,701

Operating Income (Loss)	2016			2015		2014
Tennis Channel	$	(1,990	)	$	—	$	—
MEG Stations	26,728			15,246		1,010
KSNV	36,446			7,206		2,108
Allbritton	49,777			39,550		26,914
Other stations acquired in:
2016	18,311			—		—
2015	646			426		—
2014	11,644			8,451		1,569
Total operating income	$	141,562		$	70,879	$	31,601

In connection with the 2016, 2015, and 2014 acquisitions, for the years ended December 31, 2016, 2015, and 2014, we incurred $1.4 million, $0.5 million, and $5.7 million, respectively, of costs primarily related to legal and other professional services, which we expensed as incurred and classified as corporate general and administrative expenses in the consolidated statements of operations.

F-23

Pro Forma Information

The following table sets forth unaudited pro forma results of operations, assuming that Tennis and the 2014 Acquisitions, along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the acquisitions presented under Other 2016 Acquisitions, 2015 Acquisitions, and Other 2014 Acquisitions above, as they were deemed not material both individually and in the aggregate. The 2014 period does not include the pro forma effects of the Tennis acquisition, and as such will not provide comparability to the 2015 and 2016 pro forma periods presented in the following table (in thousands, except per share data):

	Unaudited
	2016		2015		2014
Total revenues	$	2,751,441	$	2,310,202	$	2,150,124
Net Income	$	249,722	$	168,364	$	189,174
Net Income attributable to Sinclair Broadcast Group	$	244,261	$	163,789	$	186,338
Basic earnings per share attributable to Sinclair Broadcast Group	$	2.61	$	1.72	$	1.92
Diluted earnings per share attributable to Sinclair Broadcast Group	$	2.59	$	1.71	$	1.90

This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments, and is not indicative of what our results would have been had we operated the businesses since the beginning of the annual period presented because the pro forma results do not reflect expected synergies.  The pro forma adjustments reflect depreciation expense, amortization of intangibles and amortization of program contract costs related to the fair value adjustments of the assets acquired, additional interest expense related to the financing of the transactions, and exclusion of nonrecurring financing and transaction related costs. Depreciation and amortization expense are higher than amounts recorded in the historical financial statements of the acquirees due to the fair value adjustments recorded for long-lived tangibles and intangible assets in purchase accounting. 

F-24

3.STOCK-BASED COMPENSATION PLANS:

In June 1996, our Board of Directors adopted, upon approval of the shareholders by proxy, the 1996 Long-Term Incentive Plan (LTIP).  The purpose of the LTIP is to reward key individuals for making major contributions to our success and the success of our subsidiaries and to attract and retain the services of qualified and capable employees.  Under the LTIP, we have issued restricted stock awards (RSAs), stock grants to our non-employee directors, stock-settled appreciation rights (SARs) and stock options.  A total of 14,000,000 shares of Class A Common Stock are reserved for awards under this plan.  As of December 31, 2016, 7,111,609shares (including forfeited shares) were available for future grants.   Additionally, we have the following arrangements that involve stock-based compensation: employer matching contributions (the Match) for participants in our 401(k) plan, an employee stock purchase plan (ESPP), and subsidiary stock awards.  Stock-based compensation expense has no effect on our consolidated cash flows.  For the years ended December 31, 2016, 2015 and 2014, we recorded stock-based compensation of $16.9 million, $18.0 million and $13.9 million, respectively. Below is a summary of the key terms and methods of valuation of our stock-based compensation awards:

RSAs.   RSAs issued in 2016, 2015 and 2014 have certain restrictions that lapse over two years at 50% and 50%, respectively. As the restrictions lapse, the Class A Common Stock may be freely traded on the open market.  Unvested RSAs are entitled to dividends, and therefore, are included in weighted shares outstanding which results in a dilutive effect on basic and diluted earnings per share.  The fair value assumes the closing value of the stock on the measurement date.

The following is a summary of changes in unvested restricted stock:

	RSAs		Weighted-Average Price
Unvested shares at December 31, 2015	137,900		$	25.81
2016 Activity:
Granted	96,450		31.40
Vested	(87,375	)	26.32
Unvested shares at December 31, 2016	146,975		29.18

For the years ended December 31, 2016, 2015 and 2014, we recorded compensation expense of $2.8 million, $5.3 million and $3.2 million, respectively.  The majority of the unrecognized compensation expense of $1.7 million as of December 31, 2016 will be recognized in 2017.

Stock Grants to Non-Employee Directors.  In addition to directors fees paid, on the date of each of our annual meetings of shareholders, each non-employee director receives a grant of unrestricted shares of Class A Common Stock.  In 2016, 2015 and 2014, we issued 20,000 shares, 20,000 shares and 12,000 shares, respectively.  We recorded expense of $0.6 million, $0.6 million and $0.4 million for each of the years ended December 31, 2016, 2015 and 2014, respectively, which was based on the average share price of the stock on the date of grant.  Additionally, these shares are included in the total shares outstanding, which results in a dilutive effect on our basic and diluted earnings per share.

F-25

SARs.  During the years ended December 31, 2016, 2015 and 2014, 400,000, 310,000 and 200,000 SARs were granted with base values per share of $31.40, $24.93 and $27.86, respectively, to our Executive Chairman.  The SARs have a 10-year term and vest immediately.  The base value of each SAR is equal the closing price of our Class A Common Stock on the grant date.   For the years ended December 31, 2016, 2015 and 2014, we recorded compensation expense equal to the estimated fair value at the grant date, of $4.0 million, $2.6 million and $2.6 million, respectively.  We valued the SARs using the Black-Scholes model and the following assumptions:

	2016		2015		2014
Risk-free interest rate	1.2	%	1.3	%	1.5	%
Expected years until exercise	5 years		5 years		5 years
Expected volatility	42	%	47	%	65	%
Annual dividend yield	2.1	%	2.7	%	2.2	%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for U.S. Treasury zero coupon separate trading of registered interest and principal securities, commonly known as STRIPS, that approximate the expected life of the options.  The expected volatility is based on our historical stock prices over a period equal to the expected life of the options.  The annual dividend yield is based on the annual dividend per share divided by the share price on the grant date.

The following is a summary of the 2016 activity:

	SARs	Weighted- Average Price
Outstanding SARs at December 31, 2015	1,910,000	$	16.68
2016 Activity:
Granted	400,000	31.40
Outstanding SARs at December 31, 2016	2,310,000	19.23

The aggregate intrinsic value of the 2,310,000 outstanding as of December 31, 2016 was $32.6 million, and the outstanding SARs have a weighted average remaining contractual life of 6.08 years as of December 31, 2016.  During 2016, 2015 and 2014, outstanding SARs increased the weighted average shares outstanding for purposes of determining dilutive earnings per share.

Options.  Effective April 1, 2014, we entered into an employment agreement with our Chief Executive Officer, to grant annually on each December 31, an option to purchase 125,000 shares of Class A Common Stock beginning December 31, 2014 through December 31, 2021.  Upon grant, the stock options are immediately exercisable.  The maximum aggregate intrinsic value that can be earned under the arrangement cannot exceed $20 million. The stock options are granted with an exercise price equal to the closing price of the stock on the date of grant and have a 10 year contractual life.

	Options	Weighted- Average Price
Outstanding Options at December 31, 2015	250,000	$	29.95
2016 Activity:
Granted	125,000	33.35
Outstanding Options at December 31, 2016	375,000	31.08

Since the stock options are fully vested upon grant and requisite service must be satisfied to receive the award, we estimate the fair value of each annual tranche of the options to be issued in the future and recognize the compensation expense over the period until the actual grant date.  The fair value of each award is remeasured each period until the actual grant with the ultimate cumulative expense equaling the grant date fair value of the award.  During the years ended December 31, 2016, 2015, and 2014 we recorded $0.4 million, $0.8 million, and $1.5 million of stock-based compensation expense related to this arrangement, respectively, based on estimated fair values of each of the options, of which $0.5 million, $0.8 million, and $1.1 million were attributable to the options granted on December 31, 2016, 2015, and 2014, respectively.

F-26

We value stock options using the Black-Scholes pricing model and the following assumptions:

	2016		2015		2014
Risk-free interest rate	1.9	%	1.9	%	1.8	%
Expected years to exercise	5 years		5 years		5 years
Expected volatility	37.5	%	42.1	%	47.6	%
Annual dividend yield	2.1	%	2.0	%	2.3	%

The risk-free interest rate is based on the U.S. Treasury yield curve, in effect at the time of grant, for U.S. Treasury STRIPS that approximate the expected life of the options.  The expected volatility is based on our historical stock prices over a period equal to the expected life of the options.  The annual dividend yield is based on the annual dividend per share divided by the share price on the grant date. During 2016, 2015, and 2014, outstanding stock options increased the weighted average shares outstanding for purposes of determining dilutive earnings per share.

Match.  The Sinclair Broadcast Group, Inc. 401(k) Profit Sharing Plan and Trust (the 401(k) Plan) is available as a benefit for our eligible employees.  Contributions made to the 401(k) Plan include an employee elected salary reduction amount, the Match and an additional discretionary amount determined each year by the Board of Directors.  The Match and any additional

discretionary contributions may be made using our Class A Common Stock if the Board of Directors so chooses.  Typically, we make the Match using our Class A Common Stock.

The value of the Match is based on the level of elective deferrals into the 401(k) Plan.  The amount of shares of our Class A Common Stock used to make the Match is determined using the closing price on or about March 1 of each year for the previous calendar year’s Match.  The Match is discretionary and is equal to a maximum of 50% of elective deferrals by eligible employees, capped at 4% of the employee’s total cash compensation.  For the years ended December 31, 2016, 2015 and 2014, we recorded $6.9 million, $6.2 million and $5.2 million, respectively, of stock-based compensation expense related to the Match. A total of 3,000,000 shares of Class A Common Stock are reserved for matches under the plan.  As of December 31, 2016, 410,119 shares were available for future grants.

ESPP.  The ESPP allows eligible employees to purchase Class A Common Stock at 85% of the lesser of the fair value of the common stock as of the first day of the quarter and as of the last day of that quarter, subject to certain limits as defined in the ESPP. The stock-based compensation expense recorded related to the ESPP for the years ended December 31, 2016, 2015 and 2014 was $0.9 million, $0.7 million and $0.7 million, respectively.  A total of 3,200,000 shares of Class A Common Stock are reserved for awards under the plan.  As of December 31, 2016, 995,349 shares were available for future grants.

Subsidiary Stock Awards.  From time to time, we grant subsidiary stock awards to employees.  The subsidiary stock is typically in the form of a membership interest in a consolidated limited liability company, not traded on a public exchange and valued based on the estimated fair value of the subsidiary.  Fair value is typically estimated using discounted cash flow models and/or appraisals.  These stock awards vest immediately.  For the years ended December 31, 2016, 2015 and 2014, we recorded compensation expense of $1.3 million, $1.8 million and $0.2 million, respectively, related to these awards which increase noncontrolling interest equity.  These awards have no effect on the shares used in our basic and diluted earnings per share.

4.PROPERTY AND EQUIPMENT:

Property and equipment are stated at cost, less accumulated depreciation.  Depreciation is generally computed under the straight-line method over the following estimated useful lives:

Buildings and improvements	10 - 30 years
Station equipment	5 - 10 years
Office furniture and equipment	5 - 10 years
Leasehold improvements	Lesser of 10 - 30 years or lease term
Automotive equipment	3 - 5 years
Property and equipment under capital leases	Lease term

Acquired property and equipment as discussed in Note 2. Acquisitions and Disposition of Assets, is depreciated on a straight-line basis over the respective estimated remaining useful lives.

F-27

Property and equipment consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Land and improvements	$	73,124		$	60,678
Real estate held for development and sale	90,087			91,106
Buildings and improvements	239,603			210,597
Station equipment	702,004			667,454
Office furniture and equipment	101,252			85,411
Leasehold improvements	24,762			22,693
Automotive equipment	56,507			47,402
Capital leased assets	84,516			84,474
Construction in progress	30,880			34,666
	1,402,735			1,304,481
Less: accumulated depreciation	(685,159		)	(587,344		)
	$	717,576		$	717,137

Capital leased assets are related to building, tower and equipment leases.  Depreciation related to capital leases is included in depreciation expense in the consolidated statements of operations. We recorded capital lease depreciation expense of $4.2 million, $3.9 million and $3.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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5.GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS:

Goodwill, which arises from the purchase price exceeding the assigned value of the net assets of an acquired business, represents the value attributable to unidentifiable intangible elements being acquired. Goodwill totaled $1,990.7 million and $1,931.1 million at December 31, 2016 and 2015, respectively.  The change in the carrying amount of goodwill was as follows (in thousands):

	Broadcast			Other		Consolidated
Balance at December 31, 2014
Goodwill	$	2,377,613		$	513	$	2,378,126
Accumulated impairment losses	(413,573		)	—		(413,573		)
	1,964,040			513		1,964,553
Acquisitions (a)	5,802			—		5,802
Measurement period adjustments related to prior year acquisitions	(42,237		)	—		(42,237		)
Change in assets held for sale (b)	—			2,975		2,975
Balance at December 31, 2015 (c)
Goodwill	2,341,178			3,488		2,344,666
Accumulated impairment losses	(413,573		)	—		(413,573		)
	1,927,605			3,488		1,931,093
Acquisitions (a)	11,626			53,427		65,053
Measurement period adjustments related to prior year acquisitions	40			—		40
Disposition of assets (d)	(5,440		)	—		(5,440		)
Balance at December 31, 2016 (c)
Goodwill	2,347,404			56,915		2,404,319
Accumulated impairment losses	(413,573		)	—		(413,573		)
	$	1,933,831		$	56,915	$	1,990,746

_______________________________________________________

(a) In 2016 and 2015, we acquired goodwill as a result of acquisitions as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) We concluded in 2015 that certain non-media related assets that were classified as assets held for sale as of December 31, 2014 no longer met the held for sale criteria.

(c) Approximately $0.8 million of goodwill relates to consolidated VIEs as of December 31, 2016 and 2015.

(d) Amounts relate to the 2016 sale of broadcast assets as discussed in Note 2. Acquisitions and Disposition of Assets.

For our annual goodwill impairment tests in 2016, 2015 and 2014, we concluded that it was more-likely-than-not that goodwill was not impaired for the reporting units in which we performed a qualitative assessment.  For one reporting unit in 2016, we elected to perform a quantitative assessment and concluded that its fair value substantially exceeded its carrying value. The qualitative factors reviewed during our annual assessments, indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of our reporting units. We did not have any indicators of impairment in any interim period in 2016, 2015, or 2014, and therefore did not perform interim impairment tests for goodwill during those periods.

The key assumptions used to determine the fair value of our broadcast reporting unit consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, profit margins and growth rates.  The discount rate used to determine the fair value of our broadcast reporting unit is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television broadcasting company, and includes adjustments for market risk and company specific risk.  Estimated cash flows are based upon internally developed estimates and the growth rates and profit margins are based on market studies, industry knowledge and historical performance. 

F-29

As of December 31, 2016 and 2015, the carrying amount of our indefinite-lived intangible assets was as follows (in thousands):

	Broadcast			Other		Consolidated
Balance at December 31, 2014	$	135,075		$	—	$	135,075
Acquisitions (a)	992			—		992
Sale of assets	(175		)	—		(175		)
Measurement period adjustments related to prior year acquisitions	(3,427		)	—		(3,427		)
Balance at December 31, 2015 (b)	132,465			—		132,465
Acquisitions (a)	2,406			23,400		25,806
Disposition of assets	(1,965		)	—		(1,965		)
Balance at December 31, 2016 (b) (c)	$	132,906		$	23,400	$	156,306

(a) In 2016 and 2015, we acquired indefinite-lived intangible assets as a result of acquisitions as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) Approximately $15.7 million and $17.6 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2016 and 2015, respectively.

(c) Our indefinite-lived intangible assets in Broadcast relates to broadcast licenses and our indefinite-lived intangible assets in Other relates to trade names.

We did not have any indicators of impairment for our indefinite-lived intangible assets in any interim period in 2016 or 2015, and therefore did not perform interim impairment tests during those periods. We performed our annual impairment tests for indefinite-lived intangibles in the fourth quarter of 2016 and 2015 and as a result of our qualitative and quantitative assessments, we recorded no impairment. We performed our annual impairment tests for indefinite-lived intangibles in the fourth quarter of 2014 and as a result of our qualitative and/or quantitative assessments we recorded $3.2 million of impairment charges, included within amortization of definite-lived intangible and other assets within the consolidated statement of operations, related to broadcast licenses with a carrying value of $21.1 million, compared to their estimated fair value of $17.9 million, as a result of a decrease in the projected future market revenues related to our radio broadcast licenses in Seattle, WA.

The key assumptions used to determine the fair value of our broadcast licenses consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated market revenues, normalized market share, normalized profit margin, and estimated start-up costs. The qualitative factors for our broadcast licenses indicated an increase in market revenues, stable market shares and stable cost factors. The revenue, expense and growth rates used in determining the fair value of our broadcast licenses remained constant or increased slightly from 2015 to 2016.  The growth rates are based on market studies, industry knowledge and historical performance. The discount rates used to determine the fair value of our broadcast licenses did not change significantly over the last three years. The discount rate is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk.

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The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in thousands):

	As of December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Network affiliation (a)	$	1,398,451	$	(427,484	)	$	970,967
Customer Relationships (a)	1,102,591		(294,114		)	808,477
Other (b)	243,253		(78,294		)	164,959
Total	$	2,744,295	$	(799,892	)	$	1,944,403

	As of December 31, 2015
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Network affiliation (a)	$	1,378,425	$	(343,729	)	$	1,034,696
Customer Relationships (a)	806,727		(225,176		)	581,551
Other (b)	193,594		(58,271		)	135,323
Total	$	2,378,746	$	(627,176	)	$	1,751,570

_______________________________________________________

(a) Changes between the gross carrying value from December 31, 2015 to December 31, 2016, relate to acquisitions in 2016, as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) The increase in other intangible assets is primarily due to the purchase of additional alarm monitoring contracts of $40.2 million.

Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives which generally range from 5 to 25 years.  The total weighted average useful life of all definite-lived intangible assets and other assets subject to amortization acquired as a result of the acquisitions discussed in Note 2. Acquisitions and Disposition of Assets is 14 years.  The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2016, 2015 and 2014 was $183.8 million, $161.5 million and $125.5 million, respectively.  We analyze specific definite-lived intangibles for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets.  There were no impairment charges recorded for the years ended December 31, 2016, 2015 and 2014.

The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years (in thousands):

For the year ended December 31, 2017	$	175,942
For the year ended December 31, 2018	174,593
For the year ended December 31, 2019	173,586
For the year ended December 31, 2020	173,006
For the year ended December 31, 2021	171,988
Thereafter	1,075,288
	$	1,944,403

F-31

6.NOTES PAYABLE AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement

We have a syndicated credit facility which includes both revolving credit and issued term loans (Bank Credit Agreement).  During the years ended December 31, 2016, 2015 and 2014, the Bank Credit Agreement has been restated and amended several times to provide incremental financing to the acquisitions as discussed under Note 2. Acquisitions and Disposition of Assets.  As of December 31, 2016, $1,624.5 million, net of $10.5 million and $2.8 million deferred financing costs and debt discounts, respectively, of aggregate borrowings were outstanding under the Bank Credit Agreement, which consists of the following:

Term Loan A. On July 19, 2016, we entered into an amendment and extension of our bank credit agreement and extended the maturity date of $139.5 million of term A loans to July 31, 2021. The remaining $153.5 million of outstanding term loan A loans mature April 9, 2018. In connection with the transaction, we also amended certain pricing terms related to the loans. In connection with the amendment of the Term Loan A and Revolver discussed below, we incurred approximately $2.7 million of financing costs, of which $0.3 million was expensed and the remaining $2.4 million was capitalized as deferred financing cost as of December 31, 2016. As of December 31, 2016, $140.9 million of term loans which mature April 9, 2018, and bear interest at LIBOR plus 2.25% and $130.1 million of term loans which mature July 31, 2021 and bear interest at LIBOR plus 2.25%, which is adjusted for changes in our First Lien Indebtedness ratio, (together Term Loan A loans) were outstanding, net of $1.2 million in deferred financing costs. As of December 31, 2015, $312.1 million of Term Loan A was outstanding.

Term Loan B.  As of December 31, 2016, $1,353.5 million of term loans, net of $9.3 million deferred financing costs and debt discounts of $2.8 million, were outstanding. As of December 31, 2015, $1,364.6 million of Term Loan B, net of $11.4 million deferred financing cost and debt discounts of $3.6 million, was outstanding.  The Term Loan B bears interest at LIBOR plus 2.25%.

In January 2017, we amended our Bank Credit Agreement. We extended the maturity date of the Term Loan B from April 9, 2020 and July 31, 2021 to January 3, 2024. In connection with the extension, we added additional operating flexibility, including a reduction in certain pricing terms related to Term Loan B and our existing revolving credit facility (Revolver) and revisions to certain covenant ratio requirements. Prior to July 3, 2017, if we repay, refinance, substitute, or replace the Term Loan B, we are subject to a prepayment premium of 1% of the aggregate principal balance of the repayment.

Revolving Credit Facility.  As of December 31, 2016 and 2015, our total commitments under the Revolver were $485.2 million which bears interest at LIBOR plus 2.25%, and is adjusted for changes in our First Lien Indebtedness ratio. On July 19, 2016, we entered into an amendment and extension of our bank credit agreement and extended the maturity of the Revolver to July 31, 2021. We incur a commitment fee on undrawn capacity of 0.25% to 0.5%, which is adjusted for changes in our First Lien Indebtedness ratio.  As of December 31, 2016, there were no outstanding borrowings and $1.9 million of letters of credit were issued under the Revolver. The remaining borrowing capacity under the Revolver was $483.3 million and $482.9 million as of December 31, 2016 and 2015, respectively.

Cash interest expense related to the Bank Credit Agreement, including the Revolver, in our consolidated statements of operations was $54.4 million, $53.0 million and $38.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.  We capitalized $2.0 million, $3.6 million and $3.8 million as deferred financing costs, during the years ended December 31, 2016, 2015 and 2014, respectively.  Deferred financing costs are classified within our notes payable and commercial bank financing within our consolidated balance sheet, except for deferred financing costs related to our Revolver as discussed in Other Assets within Note 1. Nature of Operations and Summary of Significant Accounting Policies.  The weighted average effective interest rate of the Term Loan B for the years ended December 31, 2016 and 2015 was 3.53% and 3.54%, respectively.  The weighted average effective interest rate of the Term Loan A for the years ended December 31, 2016 and 2015 was 2.72% and 2.47%, respectively.  The weighted average effective interest rate of the Revolver for the year ended December 31, 2016 was 2.98% and 2.38%, respectively.

Our Bank Credit Agreement, as well as indentures governing our outstanding notes as described below, contains a number of covenants that, among other things, restrict our ability and our subsidiaries’ ability to incur additional indebtedness with certain exceptions, pay dividends (See Note 8. Common Stock), incur liens, engage in mergers or consolidations, make acquisitions, investments or disposals and engage in activities with affiliates.  In addition, under the Bank Credit Agreement, we are required to maintain a ratio of First Lien Indebtedness of 4.25 times EBITDA.  As of December 31, 2016, we were in compliance with all financial ratios and covenants.

Our Bank Credit Agreement also contains certain cross-default provisions with certain material third-party licensees, defined as any party that owns the license assets of one or more television stations for which we provided services pursuant to LMAs and/or other outsourcing agreements and those stations provide 20%or more of our aggregate broadcast cash flows.  A default by a

F-32

material third-party licensee under our agreements with such parties, including a default caused by insolvency, would cause an event of default under our Bank Credit Agreement. As of December 31, 2016, there were no material third party licensees as defined in our Bank Credit Agreement.

Substantially all of our stock in our wholly-owned subsidiaries has been pledged as security for the Bank Credit Agreement.

5.125% Senior Notes, due 2027

On August 30, 2016, we issued $400.0 million of senior unsecured notes, which bear interest at a rate of 5.125% per annum and mature on February 15, 2027 (the 5.125% Notes), pursuant to an indenture dated August 30, 2016 (the 5.125% Indenture). The 5.125% Notes were priced at 100% of their par value and interest is payable semi-annually on February 15 and August 15, commencing on February 15, 2017. Prior to August 15, 2021, we may redeem the 5.125% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.125% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.125% Indenture. In addition, on or prior to August 15, 2019, we may redeem up to 35% of the 5.125% Notes, using proceeds of certain equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, the holders of the 5.125% Notes may require us to repurchase some or all of the notes. There are no registration rights associated with the 5.125% Notes. The net proceeds of the 5.125% Notes were used to redeem aggregate principal amount of the 6.375% Notes and for general corporate purposes. We incurred $6.6 million of deferred financing costs in connection with the issuance of the 5.125% Notes as of December 31, 2016.

Cash interest expense was $6.9 million for the years ended December 31, 2016. The weighted average effective interest rate for the 5.125% Notes was 5.33% for the year ended December 31, 2016.

5.875% Senior Notes, due 2026

On March 23, 2016, we issued $350.0 million of senior unsecured notes, which bear interest at a rate of 5.875% per annum and mature on March 15, 2026 (the 5.875% Notes), pursuant to an indenture dated March 23, 2016 (the 5.875% Indenture). The 5.875% Notes were priced at 100% of their par value and interest is payable semi-annually on March 15 and September 15, commencing on September 15, 2016. Prior to March 15, 2021, we may redeem the 5.875% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.875% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.875% Indenture. In addition, on or prior to March 15, 2019, we may redeem up to 35% of the 5.875% Notes, using proceeds of certain equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, the holders of the 5.875% Notes may require us to repurchase some or all of the notes. There are no registration rights associated with the 5.875% Notes. We incurred $5.9 million of deferred financing costs in connection with the issuance of the 5.875% Notes which were capitalized and are classified net of the carrying value of debt and amortized using the effective interest method.

Cash interest expense was $15.8 million for the years ended December 31, 2016.  The weighted average effective interest rate for the 5.875% Notes was 6.1% for the year ended December 31, 2016.

As discussed in Note 2. Acquisitions and Disposition of Assets, we completed the acquisition of Tennis in March 2016. The acquisition was funded, in part, by a draw on our revolving line of credit which was repaid using the proceeds from the 5.875% Notes discussed above.

F-33

5.625% Senior Unsecured Notes, due 2024

On July 23, 2014, we issued $550.0 million in senior unsecured notes, which bear interest at a rate of 5.625% per annum and mature on August 1, 2024 (the 5.625% Notes), pursuant to an indenture dated July 23, 2014 (the 5.625% Indenture).  The 5.625% Notes were priced at 100% of their par value and interest is payable semi-annually on February 1 and August 1, commencing on February 1, 2015.  Prior to August 1, 2019, we may redeem the 5.625% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.625% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.625% Indenture.  In addition, on or prior to August 1, 2019, we may redeem up to 35% of the 5.625% Notes, using proceeds of certain equity offerings.  If we sell certain of our assets or have certain changes of control, the holders of the 5.625% Notes may require us to repurchase some or all of the notes.  The proceeds from the offering of the 5.625% Notes, together with borrowings under our Bank Credit Agreement and cash on hand, were used to finance the acquisition of the Allbritton companies effective August 1, 2014.

Cash interest expense was $30.9 million for both years ended December 31, 2016 and 2015, respectively, and $13.6 million for the year ended December 31, 2014. The weighted average effective interest rate for the 5.625% Notes was 5.83% for the year ended December 31, 2016.

6.375% Senior Notes, due 2021

Effective August 15, 2016, we redeemed all of the outstanding 6.375% Senior Unsecured Notes, representing $350.0 million in aggregate principal amount. Upon the redemption, along with the principal, we paid the accrued and unpaid interest and a make whole premium, for a total of $377.2 million paid to noteholders. We recorded a loss on extinguishment of $23.7 million in the third quarter of 2016 related to this redemption, which included the write-off of the unamortized deferred financing costs of $3.9 million and prepayment penalty of $19.8 million.

Cash interest expense was $14.8 million, $22.3 million, and $22.4 million for the year ended December 31, 2016, 2015 and 2014, respectively.

5.375% Senior Unsecured Notes, due 2021

On April 2, 2013, we issued $600.0 million of senior unsecured notes, which bear interest at a rate of 5.375% per annum and mature on April 1, 2021 (the 5.375% Notes), pursuant to an indenture dated April 2, 2013 (the 5.375% Indenture).  The 5.375% Notes were priced at 100% of their par value and interest is payable semi-annually on April 1 and October 1, commencing on October 1, 2013.  Prior to April 1, 2016, we may redeem the 5.375% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.375% Notes plus accrued and unpaid interest, if any, to the redemption date, plus a “make-whole” premium as set forth in the 5.375% Indenture.  Beginning on April 1, 2016, we may redeem some or all of the 5.375% Notes at any time or from time to time at a redemption price set forth in the 5.375% Indenture.  In addition, on or prior to April 1, 2016, we may redeem up to 35% of the 5.375% Notes using proceeds of certain equity offerings.  If we sell certain of our assets or experience specific kinds of changes of control, holders of the 5.375% Notes may require us to repurchase some or all of the Notes.  The net proceeds from the offering of the 5.375% Notes were used to pay down outstanding indebtedness under our bank credit facility.

Cash interest expense was $32.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. The weighted average effective interest rate for the 5.375% Notes was 5.58% for the year ended December 31, 2016.

F-34

6.125% Senior Unsecured Notes, due 2022

On October 12, 2012, we issued $500.0 million of senior unsecured notes, which bear interest at a rate of 6.125% per annum and mature on October 1, 2022 (the 6.125% Notes), pursuant to an indenture dated October 12, 2012 (the 6.125% Indenture).  The 6.125% Notes were priced at 100% of their par value and interest is payable semi-annually on April 1 and October 1, commencing on April 1, 2013. Prior to October 1, 2017, we may redeem the 6.125% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 6.125% Notes plus accrued and unpaid interest, if any, to the redemption date, plus a “make-whole” premium as set forth in the 2012 Indenture.  Beginning on October 1, 2017, we may redeem some or all of the 6.125% Notes at any time or from time to time at a redemption price set forth in the 6.125% Indenture.  In addition, on or prior to October 1, 2015, we could have redeemed up to 35% of the 6.125% Notes using proceeds of certain equity offerings.  If we sell certain of our assets or experience specific kinds of changes of control, holders of the 6.125% Notes may require us to repurchase some or all of the Notes.  The net proceeds from the offering of the 6.125% Notes were used to pay down outstanding indebtedness under the revolving credit facility under our Bank Credit Agreement and fund certain acquisitions and for general corporate purposes.

Cash interest expense was $30.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. The weighted average effective interest rate for the 6.125% Notes was 6.310% for the year ended December 31, 2016.

8.375% Senior Unsecured Notes, due 2018

Effective October 15, 2014, we redeemed all of the outstanding 8.375% Senior Notes due 2018, representing $237.5 million aggregate principal amount of Notes as of October 15, 2014. Upon the redemption, along with the principal, we paid the accrued and unpaid interest and a make whole premium of $9.9 million, for a total of $257.4 million paid to note holders.  We recorded a loss on extinguishment of $14.6 million in the fourth quarter of 2014 related to this redemption.

Cash interest expense was $15.7 million for the years ended December 31, 2014. 

Debt of other non-media subsidiaries

Debt of our consolidated subsidiaries related to our non-media private equity investment and real estate ventures is non-recourse to us.  Interest was paid on this debt at rates typically ranging from LIBOR plus 2.5% to a fixed 6.5% during 2016.  During 2016, 2015 and 2014, interest expense on this debt was $5.9 million, $3.8 million and $3.1 million, respectively.

Debt of variable interest entities

Our consolidated VIEs have $23.0 million, net of $0.2 million deferred financing costs, in outstanding debt for which the proceeds were used to purchase the license assets of certain stations.  See Variable Interest Entities under Note 1. Nature of Operations and Summary of Significant Accounting Policies for more information.  The credit agreements and term loans of these VIEs each bear interest of LIBOR plus 2.5%.  We have jointly and severally, unconditionally and irrevocably guaranteed the debt of the VIEs, as a primary obligor, including the payment of all unpaid principal of and interest on the loans.

For the years ended December 31, 2016, 2015 and 2014, the interest expense relating to the debt of our VIEs which was jointly and severally, unconditionally and irrevocably guaranteed was $0.9 million, $1.7 million and $2.2 million, respectively.   

F-35

Summary

Notes payable, capital leases and the Bank Credit Agreement consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Bank Credit Agreement, Term Loan A	$	272,198		$	313,620
Bank Credit Agreement, Term Loan B	1,365,625			1,379,626
6.375% Senior Unsecured Notes, due 2021	—			350,000
5.375% Senior Unsecured Notes, due 2021	600,000			600,000
6.125% Senior Unsecured Notes, due 2022	500,000			500,000
5.625% Senior Unsecured Notes, due 2024	550,000			550,000
5.875% Senior Unsecured Notes, due 2026	350,000			—
5.125% Senior Unsecured Notes, due 2027	400,000			—
Debt of variable interest entities	23,198			26,682
Debt of other non-media subsidiaries	135,211			120,969
Capital leases	33,280			34,774
Total outstanding principal	4,229,512			3,875,671
Less: Deferred financing costs and discount	(43,449		)	(42,327		)
Less: Current portion	(171,131		)	(164,184		)
Net carrying value of long-term debt	$	4,014,932		$	3,669,160

Indebtedness under the notes payable, capital leases and the Bank Credit Agreement as of December 31, 2016 matures as follows (in thousands):

	Notes and Bank Credit Agreement			Capital Leases			Total
2017	$	169,247		$	4,845		$	174,092
2018	156,562			4,880			161,442
2019	34,674			4,989			39,663
2020	643,068			4,733			647,801
2021	1,372,406			4,759			1,377,165
2022 and thereafter	1,820,275			28,443			1,848,718
Total minimum payments	4,196,232			52,649			4,248,881
Less: Deferred financing costs and discount	(43,449		)	—			(43,449		)
Less: Amount representing future interest	—			(19,369		)	(19,369		)
Net carrying value of debt	$	4,152,783		$	33,280		$	4,186,063

As of December 31, 2016, we had 32 capital leases with non-affiliates; including 24 broadcast tower leases and six other non-media equipment leases.  All of our tower leases will expire within the next 16 years and the equipment leases expire within the next 5 years.  Most of our leases have 5-10 year renewal options and it is expected that these leases will be renewed or replaced within the normal course of business.  For information related to our affiliate notes and capital leases, see Note 11. Related Person Transactions.

Interest expense on the Consolidated Statements of Operations was $211.1 million, $191.4 million, and $174.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Interest expense included $10.8 million, $9.7 million, and $9.3 million in amortization of deferred financing costs and debt discount for the years ended December 31, 2016, 2015 and 2014, respectively.

F-36

7.PROGRAM CONTRACTS:

Future payments required under program contracts as of December 31, 2016 were as follows (in thousands):

2017	$	109,702
2018	21,844
2019	14,303
2020	10,924
2021	6,765
Total	163,538
Less: Current portion	109,702
Long-term portion of program contracts payable	$	53,836

Each future period’s film liability includes contractual amounts owed, however, what is contractually owed does not necessarily reflect what we are expected to pay during that period.  While we are contractually bound to make the payments reflected in the table during the indicated periods, industry protocol typically enables us to make film payments on a three months lag.  Included in the current portion amount are payments due in arrears of $27.3 million.  In addition, we have entered into non-cancelable commitments for future program rights aggregating to $150.9 million as of December 31, 2016.

8.COMMON STOCK:

Holders of Class A Common Stock are entitled to one vote per share and holders of Class B Common Stock are entitled to ten votes per share, except for votes relating to “going private” and certain other transactions.  Substantially all of the Class B Common Stock is held by David D. Smith, Frederick G. Smith, J. Duncan Smith and Robert E. Smith who entered into a stockholders’ agreement pursuant to which they have agreed to vote for each other as candidates for election to our board of directors until December 31, 2025. The Class A Common Stock and the Class B Common Stock vote together as a single class, except as otherwise may be required by Maryland law, on all matters presented for a vote.  Holders of Class B Common Stock may at any time convert their shares into the same number of shares of Class A Common Stock.  During 2016, 257,673 Class B Common Stock shares were converted into Class A Common Stock shares.  During 2015, no Class B Common Stock shares were converted into Class A Common Stock shares.

Our Bank Credit Agreement and some of our subordinated debt instruments have restrictions on our ability to pay dividends.  Under our Bank Credit Agreement, in certain circumstances, we may make unrestricted cash payments as long as our first lien indebtedness ratio does not exceed 3.75 to 1.00.  Once our first lien indebtedness ratio exceeds 3.75 to 1.00, we have the ability to make up to $200.0 million in unrestricted annual cash payments including but not limited to dividends, of which $50.0 million may carry over to the next year, as long as we are in compliance with our first lien indebtedness ratio under the Bank Credit Agreement of 4.00 to 1.00.  In addition, we have an aggregate basket of up to $250.0 million, as long as we are in compliance with our first lien indebtedness ratio of 4.00 to 1.00, and an aggregate basket of $50.0 million, as long as no Event of Default has occurred.  Under the indentures governing the 6.125% Notes, 5.875% Notes, 5.375% Notes, 5.125% Notes, and 5.625% Notes, we are restricted from paying dividends on our common stock unless certain specified conditions are satisfied, including that:

• no event of default then exists under each indenture or certain other specified agreements relating to our indebtedness; and

• after taking into account the dividends payment, we are within certain restricted payment requirements contained in each indenture.

In January 2017, we amended certain terms and extended the maturity date of certain loans under our Bank Credit Agreement. See Note. 6 Notes Payable and Commercial Bank Financing for further discussion.

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During 2015, our Board of Directors declared a quarterly dividend of $0.165 per share in the months of February, May, August and November which were paid in March, June, September and December. Total dividend payments for the year ended December 31, 2015 were $0.66 per share.  During 2016, our Board of Directors declared a quarterly dividend of $0.165 per share in the month of February which was paid in March. In May, August, and November our Board of Directors declared a quarterly dividend of $0.18 per share. Total dividend payments for the year ended December 31, 2016 were $0.71 per share. In February 2017, our Board of Directors declared a quarterly dividend of $0.18 per share. Future dividends on our common shares, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions and other factors that the Board of Directors may deem relevant.  The Class A Common Stock and Class B Common Stock holders have the same rights related to dividends.

On March 20, 2014, the Board of Directors approved a $150.0 million share repurchase authorization. On September 6, 2016; the Board of Directors approved an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. During 2016, we repurchased approximately 4.9 million shares of Class A Common Stock for approximately $136.4 million on the open market including transaction costs. As of December 31, 2016, the total remaining authorization was $119.1 million. 

9.INCOME TAXES:

The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Provision for income taxes	$	122,128		$	57,694		$	97,432
Current provision for income taxes:
Federal	$	113,737		$	80,420		$	92,609
State	2,273			5,720			5,641
	116,010			86,140			98,250
Deferred provision (benefit) for income taxes:
Federal	8,555			(26,637		)	3,170
State	(2,437		)	(1,809		)	(3,988		)
	6,118			(28,446		)	(818		)
Provision for income taxes	$	122,128		$	57,694		$	97,432

The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:

	2016		2015		2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
Adjustments:
State income taxes, net of federal tax benefit (1)	0.2	%	0.6	%	(0.1	)%
Non-deductible items (2)	1.0	%	1.2	%	3.4	%
Domestic Production Activities Deduction	(3.4	)%	(3.9	)%	(3.2	)%
Effect of consolidated VIEs (3)	1.2	%	1.4	%	0.8	%
Changes in unrecognized tax benefits (4)	0.3	%	(1.9	)%	(3.4	)%
Basis in stock of subsidiaries (5)	—	%	(5.5	)%	—	%
Federal Research and Development Credit	(0.4	)%	(1.1	)%	—	%
Other	(0.6	)%	(0.6	)%	(1.0	)%
Effective income tax rate	33.3	%	25.2	%	31.5	%

_______________________________________________________

(1) Included in state income taxes are deferred income tax effects related to certain acquisitions and/or intercompany mergers.

(2) Included in 2014 is the current income taxes related to the taxable gain on sale of certain broadcast assets, which we acquired with the stock purchase of the Allbritton Companies in the same year.  There was no book gain on this sale. 

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Since a deferred tax liability was not established for the excess of book basis over tax basis of goodwill, a deferred tax benefit does not offset the current tax expense.

(3) Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs.  These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized.

(4) During the year ended December 31, 2016, 2015, and 2014, we recorded a $1.0 million, $5.7 million, and $10.8 million benefit, respectively, related to the release of liabilities for unrecognized tax benefits as a result of expiration of the applicable statute of limitations and settlements with taxing authorities.  See table below which summarizes the activity related to our accrued unrecognized tax benefits.

(5) During the year ended December 31, 2015, we recorded a $12.6 million benefit related to the realization of a capital loss upon the sale of the stock of a subsidiary.

Temporary differences between the financial reporting carrying amounts and the tax bases of assets and liabilities give rise to deferred taxes.  Total deferred tax assets and deferred tax liabilities as of December 31, 2016 and 2015 were as follows (in thousands):

	2016			2015
Deferred Tax Assets:
Net operating and capital losses:
Federal	$	68,455		$	14,884
State	63,630			65,822
Goodwill and intangible assets	28,879			33,979
Other	44,873			37,812
	205,837			152,497
Valuation allowance for deferred tax assets	(51,846		)	(58,333		)
Total deferred tax assets	$	153,991		$	94,164
Deferred Tax Liabilities:
Goodwill and intangible assets	$	(650,139	)	$	(561,812	)
Property & equipment, net	(80,950		)	(76,106		)
Contingent interest obligations	(20,277		)	(30,575		)
Other	(11,942		)	(10,743		)
Total deferred tax liabilities	(763,308		)	(679,236		)
Net deferred tax liabilities	$	(609,317	)	$	(585,072	)

Our remaining federal and state capital and net operating losses will expire during various years from 2017 to 2036, and some of them are subject to annual limitations under the Internal Revenue Code Section 382 and similar state provisions.  As discussed in Income taxes under Note 1. Nature of Operations and Summary of Significant Accounting Policies, we establish valuation allowances in accordance with the guidance related to accounting for income taxes.  As of December 31, 2016, a valuation allowance has been provided for deferred tax assets related to a substantial portion of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that they will be realized in the future.  During the year ended December 31, 2016, we decreased our valuation allowance by $6.5 million to $51.8 million. The reduction in valuation allowance was primarily due to changes in estimates of apportionment and a tax rate reduction in certain states. During the year ended December 31, 2015, we decreased our valuation allowance by $0.6 million to $58.3 million. The reduction in valuation allowance was primarily due to changes in estimates of apportionment for certain states.  During the year ended December 31, 2014, we increased our valuation allowance by $7.8 million to $58.9 million. The increase in valuation allowance was primarily due to intercompany mergers, effective December 31, 2014, which we expected to decrease the utilization of state NOL carryforwards. 

As of December 31, 2016 and 2015, we had $4.7 million and $3.3 million of gross unrecognized tax benefits, respectively.  Of this total, for the years ended December 31, 2016 and 2015, $3.9 and $2.6 million (net of federal effect on state tax issues) represent the amounts of unrecognized tax benefits that, if recognized, would favorably affect our effective tax rates.

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The following table summarizes the activity related to our accrued unrecognized tax benefits (in thousands):

	2016			2015			2014
Balance at January 1,	$	3,257		$	7,138		$	16,883
Additions related to prior year tax positions	420			1,458			—
Additions related to current year tax positions	2,053			472			1,450
Reductions related to settlements with taxing authorities	—			(1,517		)	(2,910		)
Reductions related to expiration of the applicable statute of limitations	(991		)	(4,294		)	(8,285		)
Balance at December 31,	$	4,739		$	3,257		$	7,138

In addition, we recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense.  We recognized $0.2 million, $0.2 million, and $0.7 million of income tax expense for interest related to uncertain tax positions for the years ended December 31, 2016, 2015 and 2014, respectively.

We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions.  All of our 2013 and subsequent federal and state tax returns remain subject to examination by various tax authorities.  Some of our pre-2013 federal and state tax returns may also be subject to examination.  We do not anticipate the resolution of these matters will result in a material change to our consolidated financial statements.  In addition, we don’t believe that our liability for unrecognized tax benefits would be materially impacted, in the next twelve months, as a result of expected statute of limitations expirations, the application of limits under available state administrative practice exceptions, and the resolution of examination issues and settlements with federal and certain state tax authorities.

10.COMMITMENTS AND CONTINGENCIES:

Litigation

We are a party to lawsuits and claims from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. After reviewing developments to date with legal counsel, our management is of the opinion that none of our pending and threatened matters are material. The FCC has undertaken an investigation in response to a complaint it received alleging possible violations of the FCC’s sponsorship identification rules by the Company and certain of its subsidiaries. We cannot predict the outcome of any potential FCC action related to this matter but it is possible that such action could include fines and/or compliance programs.

Operating Leases

We have entered into operating leases for certain property and equipment under terms ranging from one to 40 years.  The rent expense under these leases, as well as certain leases under month-to-month arrangements, for the years ended December 31, 2016, 2015 and 2014 was approximately $26.0 million, $21.7 million and $19.4 million, respectively.

Future minimum payments under the leases are as follows (in thousands):

2017	$	22,627
2018	22,267
2019	20,899
2020	20,177
2021	18,752
2022 and thereafter	92,019
	$	196,741

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Changes in the Rules on Television Ownership

Certain of our stations have entered into what have commonly been referred to as local marketing agreements or LMAs.  One typical type of LMA is a programming agreement between two separately owned television stations serving the same market, whereby the licensee of one station programs substantial portions of the broadcast day and sells advertising time during such programming segments on the other licensee’s station subject to the latter licensee’s ultimate editorial and other controls.  We believe these arrangements allow us to reduce our operating expenses and enhance profitability.

In 1999, the FCC established a new local television ownership rule.  LMAs fell under this rule, however, the rule grandfathered LMAs that were entered into prior to November 5, 1996, and permitted the applicable stations to continue operations pursuant to the LMAs until the conclusion of the FCC’s 2004 biennial review.  The FCC stated it would conduct a case-by-case review of grandfathered LMAs and assess the appropriateness of extending the grandfathering periods.  The FCC did not initiate any review of grandfathered LMAs in 2004 or as part of its subsequent quadrennial reviews.  We do not know when, or if, the FCC will conduct any such review of grandfathered LMAs.  Currently, all of our LMAs are grandfathered under the local television ownership rule because they were entered into prior to November 5, 1996. If the FCC were to eliminate the grandfathering of these LMAs, we would have to terminate or modify these LMAs.

In February 2015, the FCC issued an order implementing certain statutorily required changes to its rules governing the duty to negotiate retransmission consent agreements in good faith. With these changes, a television broadcast station is prohibited from negotiating retransmission consent jointly with another television station in the same market unless the “stations are directly or indirectly under common de jure control permitted under the regulations of the Commission.” During a 2015 retransmission consent negotiation, an MVPD filed a complaint with the FCC accusing us of violating this rule. Although we reached agreement with the MVPD and they withdrew their complaint, the FCC undertook its own internal investigation regarding the allegations made by the MVPD and whether we negotiated in good faith as defined by the rules. In order to resolve the issues raised by the investigation described above and all other pending matters before the FCC's Media Bureau (Bureau), the Company, on July 29, 2016, without any admission of liability, entered into a consent decree with the FCC pursuant to which the Bureau agreed (i) to terminate their investigation regarding the retransmission consent negotiations described above as well as any other investigations pending before the Bureau, (ii) to dismiss with prejudice or deny any outstanding adversarial pleadings against the Company pending before the Bureau, (iii) to cancel outstanding forfeiture orders issued by the Bureau relating to the Company, and (iv) to grant all of the Company’s pending license renewals, subject to a payment by the Company to the United States Treasury in the amount of $9.5 million which was paid in September 2016. In addition, pursuant to the terms of the consent decree, the Company agreed to be subject to ongoing compliance monitoring by the FCC for a period of 36 months.

In September 2015, the FCC released a Notice of Proposed Rulemaking in response to a Congressional directive in STELAR to examine the “totality of the circumstances test” for good-faith negotiations of retransmission consent. The proposed rulemaking seeks comment on new factors and evidence to consider in its evaluation of claims of bad faith negotiation, including service interruptions prior to a “marquee sports or entertainment event,” restrictions on online access to broadcast programming during negotiation impasses, broadcasters’ ability to offer bundles of broadcast signals with other broadcast stations or cable networks, and broadcasters’ ability to invoke the FCC’s exclusivity rules during service interruptions. On July 14, 2016, the FCC’s Chairman announced that the FCC would not, at this time, proceed to adopt additional rules governing good faith negotiations of retransmission consent. No formal action has yet been taken on this Proposed Rulemaking, and we cannot predict if the full Commission will agree to terminate the Rulemaking without action.

In August 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of its media ownership rules and issued an order (the "Ownership Order") which left most of the existing multiple ownership rules intact, but amended the rules to provide that, for JSAs where two television stations are located in the same market, and a party with an attributable ownership interest in the second station. The Ownership Order also requires that JSAs that existed prior to March 31, 2014, may remain in place until October 1, 2025, at which point they must be terminated, amended or otherwise come into compliance with the rules. These "grandfathered" JSAs may be transferred or assigned without losing grandfathering status. Among other things, the new JSA rule could limit our future ability to create duopolies or other two-station operations in certain markets. We cannot predict whether we will be able to terminate or restructure such arrangements prior to October 1, 2025, on terms that are as advantageous to us as the current arrangements.  The revenues of these JSA arrangements we earned during the years ended December 31, 2016 and 2015 were $58.6 million and $46.8 million, respectively. The Ownership Order is the subject of an appeal to the U.S. Court of Appeals for the D.C. Circuit and of Petitions for Reconsideration before the FCC. We cannot predict the outcome of that appeal or petitions.

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On September 6, 2016, the FCC released an order eliminating the UHF discount (the UHF Discount Order"). The UHF discount allowed television station owners to discount the coverage of UHF stations when calculating compliance with the FCC’s national ownership cap, which prohibits a single entity from owning television stations that reach, in total, more than 39% of all the television households in the nation. All but 28 of the stations we own and operate, or to which we provide programming services are UHF. As a result of the elimination of the UHF discount, counting all our present stations and pending transactions, we reach over 38% of U.S. households (approximately 24% if the UHF discount was still intact). The changes to the national ownership cap could limit our future ability to make television station acquisitions. The UHF Discount Order is the subject of an appeal to the U.S. Court of Appeals for the D.C. Circuit and a Petition for Reconsideration of the UHF Discount Order has also been filed with the FCC. We cannot predict the outcome of the appeal or the Petitions.

If we are required to terminate or modify our LMAs or JSAs, our business could be affected in the following ways:

Losses on investments.  In some cases, we own the non-license assets used by the stations we operate under LMAs and JSAs.  If certain of these arrangements are no longer permitted, we could be forced to sell these assets, restructure our agreements or find another use for them.  If this happens, the market for such assets may not be as good as when we purchased them and, therefore, we cannot be certain of a favorable return on our original investments.

Termination penalties.  If the FCC requires us to modify or terminate existing LMAs or JSAs before the terms of the agreements expire, or under certain circumstances, we elect not to extend the terms of the agreements, we may be forced to pay termination penalties under the terms of some of our agreements.  Any such termination penalties could be material.

Congress authorized the FCC to conduct so-called “incentive auctions” to auction and re-purpose broadcast television spectrum for mobile broadband use. Pursuant to the auction, television broadcasters submitted bids to receive compensation for relinquishing all or a portion of its rights in the television spectrum of their full-service and Class A stations. Low power stations were not eligible to participate in the auction and are not protected and therefore may be displaced or forced to go off the air as a result of the post-auction repacking process. This "reverse" portion of the spectrum auction was completed in early 2017. Based on the bids accepted by the FCC, we anticipate that we will receive later in 2017 an estimated $313.0 million of gross proceeds from the auction. The results of the auction are not expected to produce any material change in operations or results of the Company. In the repacking process associated with the auction, the FCC has reassigned some stations to new post-auction channels. We do not expect reassignment to new channels to have a material impact on our coverage. We received letters from the FCC in February 2017 notifying us that 93 of our stations have been assigned to new channels. The legislation authorizing the incentive auction provides the FCC with a $1.75 billion fund to reimburse reasonable costs incurred by stations that are reassigned to new channels in the repack.

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11.RELATED PERSON TRANSACTIONS:

Transactions with our controlling shareholders

David, Frederick, J. Duncan and Robert Smith (collectively, the controlling shareholders) are brothers and hold substantially all of the Class B Common Stock and some of our Class A Common Stock.  We engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases.  Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders.  Lease payments made to these entities were $5.1 million for the years ended December 31, 2016, 2015, and 2014.

In September 2015, we were granted authority by the Federal Communications Commission (FCC) to operate an experimental facility in the Washington D.C. and Baltimore markets to implement a Single Frequency Network (SFN) using the base elements of the new ATSC 3.0 transmission standard.  In conjunction with this experimental facility, Cunningham Communications, Inc. provides tower space without charge.

Capital leases payable related to the aforementioned relationships consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Capital lease for building, interest at 8.54%	$	1,858		$	3,508
Capital leases for building, interest at 7.93%	317			679
Capital leases for building, interest at 8.11%	6,934			7,432
Capital leases for broadcasting tower facilities, interest at 8.0%	2,396			2,749
Capital leases for broadcasting tower facilities, interest at 9.0%	1,755			1,958
Capital leases for broadcasting tower facilities, interest at 10.5%	4,525			4,690
	17,785			21,016
Less: Current portion	(3,604		)	(3,166		)
	$	14,181		$	17,850

Capital leases payable related to the aforementioned relationships as of December 31, 2016 mature as follows (in thousands):

2017	$	5,061
2018	2,868
2019	2,978
2020	3,093
2021	3,046
2022 and thereafter	7,127
Total minimum payments due	24,173
Less: Amount representing interest	(6,388		)
	$	17,785

Charter Aircraft.  We lease aircraft owned by certain controlling shareholders, including a new lease agreement as of February 2016 for the term of thirty months and will be renewed thereafter for successive terms of twelve months. For all leases, we incurred expenses of $1.4 million for both of the years ended December 31, 2016 and 2015 and $1.5 million for the year ended December 31, 2014.

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; and WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan (collectively, the Cunningham Stations). Certain of our stations provide services to these Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 1. Nature of Operations and Summary of Significant Accounting Policies, for further discussion of the scope of services provided under these types of arrangements.

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The estate of Carolyn C. Smith, the mother of our controlling shareholders, currently owns all of the voting stock of the Cunningham Stations. In 2014, Cunningham purchased the remaining amount of non-voting stock from the controlling shareholders, that was previously distributed from the estate for an aggregate purchase price of $2.0 million. The estate of Mrs. Smith currently owns all of the voting stock. The sale of the voting stock by the estate to an unrelated party is pending approval of the FCC. All of the non-voting stock is owned by trusts for the benefit of the children of our controlling shareholders.  We consolidate certain subsidiaries of Cunningham, with which we have variable interests through various arrangements related to the Cunningham Stations discussed further below. 

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2023 and there are two additional 5 years renewal terms remaining with final expiration on July 1, 2033. We also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant us the right to acquire, and grant Cunningham the right to require us to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Our applications to acquire these license related assets are pending FCC approval. Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station’s annual net broadcast revenue and (ii) $4.7 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The remaining aggregate purchase price of these stations as of December 31, 2016 was approximately $53.6 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and a purchase option to acquire for $0.2 million. We paid Cunningham under these agreements, $8.9 million, $8.8 million, and $10.8 million for the years ended December 31, 2016, 2015, and 2014, respectively.

The agreements with WBSF-TV and WGTU-TV/WGTQ-TV expire in November 2021 and August 2023, respectively, and each has renewal provisions for successive eight year periods. We earned $5.4 million, $5.8 million, and $6.0 million from the services we performed for these stations for the years ended December 31, 2016, 2015, and 2014, respectively.

As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported within our consolidated statement of operations. Our consolidated revenues related to the Cunningham Stations include $114.9 million, $109.5 million and $111.3 million for the years ended December 31, 2016, 2015, and 2014, respectively.

In July 2014, concurrent with the Allbritton acquisition we terminated the LMA with WTAT (FOX) in Charleston, SC and sold to Cunningham the non-license assets related to this station. Although we have no continuing involvement in the operations of the station, because we had consolidated Cunningham Broadcasting Corporation (the parent company) up until September 2014 (see Variable Interest Entities under Note 1. Nature of Operations and Summary of Significant Accounting Policies), the assets of WTAT were not derecognized and the transaction wa accounted for a transaction between consolidated entities, and no gain on sale was recognized. Upon deconsolidation of Cunningham Broadcasting Corporation, the difference between proceeds received for the sale of WTAT and WYZZ, a station we sold to Cunningham in 2013, and the carrying values of the net assets, which was previously eliminated in consolidation, was reflected as an increase to additional paid in capital in the consolidated balance sheet.

During January 2016, Cunningham entered into a promissory note to borrow $19.5 million from us which is included within notes receivable from affiliates on our consolidated balance sheet. The note bears interest at a fixed rate of 5.0% per annum, which is payable quarterly, commencing March 31, 2016. The note matures in January 2021, with additional one-year renewal periods upon our approval.

 In April 2016, we entered into an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which they have an LMA that expires in April 2019. Cunningham will pay us an initial fee of $0.7 million and $0.2 million annually for master control services plus the cost to maintain and repair the equipment. Also, in August 2016, we entered into an agreement, expiring October 2021, with Cunningham to provide a news share service with their station in Johnstown, PA beginning in October 2016 for an annual fee of $1.0 million per year.

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Atlantic Automotive Corporation

We sold advertising time to and purchased vehicles and related vehicle services from Atlantic Automotive Corporation (Atlantic Automotive), a holding company that owns automobile dealerships and an automobile leasing company.  David D. Smith, our President and Chief Executive Officer until January 1, 2017, and now Executive Chairman, has a controlling interest in, and is a member of the Board of Directors of Atlantic Automotive.  We received payments for advertising totaling $0.6 million for the year ended December 31, 2016, and $0.4 million for both the years ended December 31, 2015 and 2014. Additionally, Atlantic Automotive leases office space owned by one of our non-media investments which is accounted for under equity method. Atlantic Automotive paid $1.1 million, $1.2 million, and $1.0 million in rent during years ended December 31, 2016, 2015, and 2014, respectively.

Leased property by real estate ventures

Certain of our real estate ventures have entered into leases with entities owned by David Smith to lease restaurant space. There are leases for three restaurants in a building owned by one of our consolidated real estate ventures in Baltimore, MD. Total rent received under these leases was $0.7 million, $0.6 million, and $0.5 million for the years ended December 31, 2016, 2015, and 2014, respectively. Additionally, there is also one lease for a restaurant in a building owned by one of our non-media investments which is accounted for under equity method.  Total rent received under this lease was $0.4 million for the year ended December 31, 2016, and $0.3 million for both the years ended December 31, 2015 and 2014.

Payments for services provided by these three restaurants to us was less than $0.1 million for the years ended December 31, 2016, 2015 and 2014.

12.EARNINGS PER SHARE:

The following table reconciles income (numerator) and shares (denominator) used in our computations of earnings per share for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Income (Numerator)
Net Income	$	250,762		$	176,099		$	215,115
Net income attributable to noncontrolling interests	(5,461		)	(4,575		)	(2,836		)
Numerator for diluted earnings available to common shareholders	$	245,301		$	171,524		$	212,279
Shares (Denominator)
Weighted-average common shares outstanding	93,567			95,003			97,114
Dilutive effect of outstanding stock settled appreciation rights and stock options	866			725			705
Weighted-average common and common equivalent shares outstanding	94,433			95,728			97,819

Potentially dilutive securities which would have an anti-dilutive effect on earnings per share were 0.7 million, 0.1 million, and 0.3 million shares for the years ended December 31, 2016, 2015 and 2014, respectively, and therefore excluded from the diluted effect above. The net earnings per share amounts are the same for Class A and Class B Common Stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.

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13. SEGMENT DATA:

We measure segment performance based on operating income (loss).  Our broadcast segment, which is our only reportable segment, includes stations in 81 markets located throughout the continental United States. Other primarily consists of original networks and content, digital and internet solutions, technical services and other non-media investments. All of our businesses included in Other are located within the United States. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location.  Other and Corporate are not reportable segments but are included for reconciliation purposes. 

We had approximately $233.3 million and $226.2 million of intercompany loans between broadcast, other and corporate as of December 31, 2016 and 2015, respectively.  We had $24.4 million, $23.1 million, and $20.7 million in intercompany interest expense related to intercompany loans between broadcast, other and corporate for the years ended December 31, 2016, 2015 and 2014, respectively. All other intercompany transactions are immaterial.

Financial information for our reportable segment is included in the following tables for the years ended December 31, 2016, 2015 and 2014 (in thousands):

For the year ended December 31, 2016	Broadcast		Other			Corporate			Consolidated
Revenue	$	2,530,510	$	206,439		$	—		$	2,736,949
Depreciation of property and equipment	91,573		5,772			1,184			98,529
Amortization of definite-lived intangible assets and other assets	155,479		28,316			—			183,795
Amortization of program contract costs and net realizable value adjustments	127,880		—			—			127,880
General and administrative overhead expenses	67,035		2,459			4,062			73,556
Research and development	—		4,085			—			4,085
Operating income (loss)	639,422		(31,258		)	(5,311		)	602,853
Interest expense	5,641		6,371			199,131			211,143
Income from equity and cost method investments	—		1,735			—			1,735
Goodwill	1,933,831		56,915			—			1,990,746
Assets	4,815,633		866,845			280,690			5,963,168
Capital expenditures	78,909		8,084			7,472			94,465

For the year ended December 31, 2015	Broadcast		Other			Corporate			Consolidated
Revenue	$	2,118,021	$	101,115		$	—		$	2,219,136
Depreciation of property and equipment	99,616		2,753			1,064			103,433
Amortization of definite-lived intangible assets and other assets	152,049		9,405			—			161,454
Amortization of program contract costs and net realizable value adjustments	124,619		—			—			124,619
General and administrative overhead expenses	55,848		2,952			5,446			64,246
Research and development	—		12,436			—			12,436
Operating income (loss)	451,015		(21,800		)	(6,479		)	422,736
Interest expense	—		4,955			186,492			191,447
Income from equity and cost method investments	—		964			—			964
Goodwill	1,927,705		3,388			—			1,931,093
Assets	4,838,531		415,278			178,506			5,432,315
Capital expenditures	74,902		8,909			7,610			91,421

F-46

For the year ended December 31, 2014	Broadcast		Other			Corporate			Consolidated
Revenue	$	1,904,776	$	71,782		$	—		$	1,976,558
Depreciation of property and equipment	99,823		2,350			1,118			103,291
Amortization of definite-lived intangible assets and other assets	118,654		6,842			—			125,496
Amortization of program contract costs and net realizable value adjustments	106,629		—			—			106,629
General and administrative overhead expenses	55,837		1,315			5,343			62,495
Research and development	—		6,918			—			6,918
Operating income (loss)	511,783		(10,671		)	(6,461		)	494,651
Interest expense	—		4,042			170,820			174,862
Income from equity and cost method investments	—		2,313			—			2,313

14.FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost).  A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value.  The following is a brief description of those three levels:

• Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.  These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The carrying value and fair value of our notes and debentures as of December 31, 2016 and 2015 were as follows (in thousands):

	2016				2015
	Carrying Value (b)		Fair Value		Carrying Value (b)		Fair Value
Level 2:
6.375% Senior Unsecured Notes due 2021 (a)	$	—	$	—	$	350,000	$	367,325
6.125% Senior Unsecured Notes due 2022	500,000		521,240		500,000		512,500
5.875% Senior Unsecured Notes due 2026 (a)	350,000		351,456		—		—
5.625% Senior Unsecured Notes due 2024	550,000		562,755		550,000		539,000
5.375% Senior Unsecured Notes due 2021	600,000		617,892		600,000		605,658
5.125% Senior Unsecured Notes due 2027 (a)	400,000		382,028		—		—
Term Loan A	272,198		271,517		313,620		308,916
Term Loan B	1,365,625		1,364,841		1,376,007		1,365,461
Debt of variable interest entities	23,198		23,198		26,682		26,682
Debt of other non-media related subsidiaries	135,211		135,211		120,969		120,969

(a) During the year ended 2016, we redeemed the 6.375% Notes and issued the 5.875% and 5.125% Notes. See Note 6.Notes Payable and Commercial Bank Financing, for additional information.

(b) Amounts are carried net of debt discount and deferred financing costs, which are excluded in the above table, of $43.4 million and $42.3 million as of December 31, 2016 and 2015.

F-47

15.CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

Sinclair Television Group, Inc. (STG), a wholly-owned subsidiary and the television operating subsidiary of Sinclair Broadcast Group, Inc. (SBG), is the primary obligor under the Bank Credit Agreement, the 5.375% Notes, the 5.625% Notes, 6.125% Notes, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. Our Class A Common Stock and Class B Common Stock as of December 31, 2016, were obligations or securities of SBG and not obligations or securities of STG.  SBG is a guarantor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. As of December 31, 2016, our consolidated total debt of $4,203.8 million included $4,066.8 million of debt related to STG and its subsidiaries of which SBG guaranteed $4,018.0 million.

SBG, KDSM, LLC, a wholly-owned subsidiary of SBG, and STG’s wholly-owned subsidiaries (guarantor subsidiaries), have fully and unconditionally guaranteed, subject to certain customary automatic release provisions, all of STG’s obligations.  Those guarantees are joint and several.  There are certain contractual restrictions on the ability of SBG, STG or KDSM, LLC to obtain funds from their subsidiaries in the form of dividends or loans.

The following condensed consolidating financial statements present the consolidated balance sheets, consolidated statements of operations and comprehensive income, and consolidated statements of cash flows of SBG, STG, KDSM, LLC and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG and the eliminations necessary to arrive at our information on a consolidated basis.

These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10.

F-48

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	232,297	$	10,675	$	17,012		$	—		$	259,984
Accounts and other receivables	—		—		478,190		37,024			(1,260		)	513,954
Other current assets	5,561		3,143		124,313		25,406			(27,273		)	131,150
Total current assets	5,561		235,440		613,178		79,442			(28,533		)	905,088
Property and equipment, net	1,820		17,925		570,289		131,326			(3,784		)	717,576
Investment in consolidated subsidiaries	551,250		3,614,605		4,179		—			(4,170,034		)	—
Other long-term assets	46,586		819,506		103,808		169,817			(890,668		)	249,049
Goodwill	—		—		1,986,467		4,279			—			1,990,746
Indefinite-lived intangible assets	—		—		140,597		15,709			—			156,306
Definite-lived intangible assets	—		—		1,770,512		233,368			(59,477		)	1,944,403
Total assets	$	605,217	$	4,687,476	$	5,189,030	$	633,941		$	(5,152,496	)	$	5,963,168
Accounts payable and accrued liabilities	$	100	$	69,118	$	225,645	$	48,815		$	(21,173	)	$	322,505
Current portion of long-term debt	—		55,501		1,851		113,779			—			171,131
Current portion of affiliate long-term debt	1,857		—		1,514		2,336			(2,103		)	3,604
Other current liabilities	—		—		127,967		13,590			(2,324		)	139,233
Total current liabilities	1,957		124,619		356,977		178,520			(25,600		)	636,473
Long-term debt	—		3,939,463		31,014		44,455			—			4,014,932
Affiliate long-term debt	—		—		12,663		396,957			(395,439		)	14,181
Other liabilities	15,277		31,817		1,190,717		183,418			(681,583		)	739,646
Total liabilities	17,234		4,095,899		1,591,371		803,350			(1,102,622		)	5,405,232
Total Sinclair Broadcast Group equity	587,983		591,577		3,597,659		(134,991		)	(4,054,245		)	587,983
Noncontrolling interests in consolidated subsidiaries	—		—		—		(34,418		)	4,371			(30,047		)
Total liabilities and equity	$	605,217	$	4,687,476	$	5,189,030	$	633,941		$	(5,152,496	)	$	5,963,168

F-49

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	115,771	$	235	$	33,966		$	—		$	149,972
Accounts and other receivables	—		1,775		390,142		33,949			(1,258		)	424,608
Other current assets	3,648		5,172		99,118		23,278			(4,033		)	127,183
Total current assets	3,648		122,718		489,495		91,193			(5,291		)	701,763
Property and equipment, net	2,884		20,336		559,042		143,667			(8,792		)	717,137
Investment in consolidated subsidiaries	497,262		3,430,434		4,179		—			(3,931,875		)	—
Other long-term assets	52,128		673,915		110,507		140,910			(779,173		)	198,287
Goodwill	—		—		1,926,814		4,279			—			1,931,093
Indefinite-lived intangible assets	—		—		114,841		17,624			—			132,465
Definite-lived intangible assets	—		—		1,602,454		206,975			(57,859		)	1,751,570
Total assets	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315
Accounts payable and accrued liabilities	$	104	$	49,428	$	179,156	$	27,462		$	(4,837	)	$	251,313
Current portion of long-term debt	—		57,640		1,611		106,358			(1,425		)	164,184
Current portion of affiliate long-term debt	1,651		—		1,311		456			(252		)	3,166
Other current liabilities	—		—		103,627		12,713			—			116,340
Total current liabilities	1,755		107,068		285,705		146,989			(6,514		)	535,003
Long-term debt	—		3,594,218		32,743		42,199			—			3,669,160
Affiliate long-term debt	1,857		—		14,240		366,042			(364,289		)	17,850
Other liabilities	26,500		28,866		1,060,211		171,102			(576,055		)	710,624
Total liabilities	30,112		3,730,152		1,392,899		726,332			(946,858		)	4,932,637
Total Sinclair Broadcast Group equity	525,810		517,251		3,414,433		(91,703		)	(3,839,981		)	525,810
Noncontrolling interests in consolidated subsidiaries	—		—		—		(29,981		)	3,849			(26,132		)
Total liabilities and equity	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315

F-50

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,579,284		$	265,855		$	(108,190	)	$	2,736,949
Media production expenses	—			—			918,200			135,511			(100,622		)	953,089
Selling, general and administrative	4,062			70,503			489,882			10,804			(106		)	575,145
Depreciation, amortization and other operating expenses	1,064			7,331			465,680			133,810			(2,023		)	605,862
Total operating expenses	5,126			77,834			1,873,762			280,125			(102,751		)	2,134,096
Operating (loss) income	(5,126		)	(77,834		)	705,522			(14,270		)	(5,439		)	602,853
Equity in earnings of consolidated subsidiaries	244,580			463,598			220			—			(708,398		)	—
Interest expense	(238		)	(198,893		)	(4,481		)	(32,521		)	24,990			(211,143		)
Other income (expense)	3,613			(22,867		)	715			(281		)	—			(18,820		)
Total other income (expense)	247,955			241,838			(3,546		)	(32,802		)	(683,408		)	(229,963		)
Income tax benefit (provision)	2,472			99,148			(231,504		)	7,756			—			(122,128		)
Net income (loss)	245,301			263,152			470,472			(39,316		)	(688,847		)	250,762
Net income attributable to the noncontrolling interests	—			—			—			(4,937		)	(524		)	(5,461		)
Net income (loss) attributable to Sinclair Broadcast Group	$	245,301		$	263,152		$	470,472		$	(44,253	)	$	(689,371	)	$	245,301
Comprehensive income (loss)	$	250,789		$	263,179		$	470,472		$	(39,316	)	$	(694,335	)	$	250,789

F-51

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,076,851		$	221,633		$	(79,348	)	$	2,219,136
Media production expenses	—			—			725,037			82,450			(74,288		)	733,199
Selling, general and administrative	4,441			58,543			418,885			14,272			(167		)	495,974
Depreciation, amortization and other operating expenses	1,065			3,779			433,690			131,373			(2,680		)	567,227
Total operating expenses	5,506			62,322			1,577,612			228,095			(77,135		)	1,796,400
Operating (loss) income	(5,506		)	(62,322		)	499,239			(6,462		)	(2,213		)	422,736
Equity in earnings of consolidated subsidiaries	170,104			343,183			195			—			(513,482		)	—
Interest expense	(382		)	(180,166		)	(4,658		)	(30,022		)	23,781			(191,447		)
Other income (expense)	4,765			(151		)	269			(2,379		)	—			2,504
Total other income (expense)	174,487			162,866			(4,194		)	(32,401		)	(489,701		)	(188,943		)
Income tax benefit (provision)	2,543			81,626			(146,331		)	4,468			—			(57,694		)
Net income (loss)	171,524			182,170			348,714			(34,395		)	(491,914		)	176,099
Net income attributable to the noncontrolling interests	—			—			—			(4,914		)	339			(4,575		)
Net income (loss) attributable to Sinclair Broadcast Group	$	171,524		$	182,170		$	348,714		$	(39,309	)	$	(491,575	)	$	171,524
Comprehensive income (loss)	$	181,720		$	187,791		$	351,760		$	(39,309	)	$	(500,242	)	$	181,720

F-52

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,870,408		$	192,616		$	(86,466	)	$	1,976,558
Media production expenses	—			76			573,725			86,266			(81,380		)	578,687
Selling, general and administrative	4,320			57,799			359,880			14,795			(2,079		)	434,715
Depreciation, amortization and other operating expenses	1,068			5,425			367,514			96,265			(1,767		)	468,505
Total operating expenses	5,388			63,300			1,301,119			197,326			(85,226		)	1,481,907
Operating (loss) income	(5,388		)	(63,300		)	569,289			(4,710		)	(1,240		)	494,651
Equity in earnings of consolidated subsidiaries	211,782			373,228			(201		)	—			(584,809		)	—
Interest expense	(573		)	(163,347		)	(4,869		)	(27,364		)	21,291			(174,862		)
Other income (expense)	4,377			(14,651		)	998			2,024			10			(7,242		)
Total other income (expense)	215,586			195,230			(4,072		)	(25,340		)	(563,508		)	(182,104		)
Income tax benefit (provision)	2,081			83,897			(185,193		)	1,783			—			(97,432		)
Income from discontinued operations, net of tax	—			—			—			—			—			—
Net income (loss)	212,279			215,827			380,024			(28,267		)	(564,748		)	215,115
Net income attributable to the noncontrolling interests	—			—			—			(2,836		)	—			(2,836		)
Net income (loss) attributable to Sinclair Broadcast Group	$	212,279		$	215,827		$	380,024		$	(31,103	)	$	(564,748	)	$	212,279
Comprehensive income (loss)	$	211,759		$	213,284		$	378,926		$	(27,982	)	$	(564,228	)	$	211,759

F-53

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(11,784	)	$	(150,230	)	$	721,991		$	7,914		$	23,875		591,766
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,006		)	(82,450		)	(5,009		)	1,000			(94,465		)
Payments for acquisition of television stations	—			—			(415,482		)	(10,375		)	—			(425,857		)
Purchase of alarm monitoring contracts	—			—			—			(40,206		)	—			(40,206		)
Proceeds from sale of assets	—			—			7,263			9,133			—			16,396
Investments in equity and cost method investees	(2,945		)	(15,620		)	(27		)	(32,655		)	—			(51,247		)
Other, net	1,714			(21,395		)	3,985			5,072			—			(10,624		)
Net cash flows (used in) from investing activities	(1,231		)	(45,021		)	(486,711		)	(74,040		)	1,000			(606,003		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			995,000			—			29,912			—			1,024,912
Repayments of notes payable, commercial bank financing and capital leases	—			(650,422		)	(1,633		)	(19,160		)	—			(671,215		)
Dividends paid on Class A and Class B Common Stock	(65,909		)	—			—			—			—			(65,909		)
Repurchase of outstanding Class A Common Stock	(136,283		)	—			—			—			—			(136,283		)
Payments for deferred financing cost	—			(15,430		)	—			(251		)	—			(15,681		)
Noncontrolling interests distributions	—			—			—			(10,464		)	—			(10,464		)
Increase (decrease) in intercompany payables	218,054			(17,778		)	(224,551		)	49,403			(25,128		)	—
Other, net	(2,847		)	407			1,344			(268		)	253			(1,111		)
Net cash flows (used in) from financing activities	13,015			311,777			(224,840		)	49,172			(24,875		)	124,249
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			116,526			10,440			(16,954		)	—			110,012
CASH AND CASH EQUIVALENTS, beginning of period	—			115,771			235			33,966			—			149,972
CASH AND CASH EQUIVALENTS, end of period	$	—		$	232,297		$	10,675		$	17,012		$	—		$	259,984

F-54

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(3,759	)	$	(131,363	)	$	530,768		$	(16,864	)	$	24,145		$	402,927
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(6,605		)	(84,079		)	(2,586		)	1,849			(91,421		)
Payments for acquisition of television stations	—			—			(17,011		)	—			—			(17,011		)
Purchase of alarm monitoring contracts	—			—			—			(39,185		)	—			(39,185		)
Proceeds from sale of broadcast assets	—			—			23,650			—			—			23,650
Investments in equity and cost method investees	—			(8,998		)	(27		)	(35,690		)	—			(44,715		)
Other, net	4,598			(5,447		)	575			17,645			—			17,371
Net cash flows (used in) from investing activities	4,598			(21,050		)	(76,892		)	(59,816		)	1,849			(151,311		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			349,562			—			33,325			—			382,887
Repayments of notes payable, commercial bank financing and capital leases	(528		)	(382,691		)	(1,286		)	(10,642		)	—			(395,147		)
Dividends paid on Class A and Class B Common Stock	(62,733		)	—			—			—			—			(62,733		)
Repurchase of outstanding Class A Common Stock	(28,823		)	—			—			—			—			(28,823		)
Payments for deferred financing costs	—			(3,604		)	—			(243		)	—			(3,847		)
Noncontrolling interest distributions	—			—			—			(9,918		)	—			(9,918		)
Increase (decrease) in intercompany payables	89,319			303,755			(452,897		)	85,953			(26,130		)	—
Other, net	1,926			(2,232		)	(1,207		)	(368		)	136			(1,745		)
Net cash flows (used in) from financing activities	(839		)	264,790			(455,390		)	98,107			(25,994		)	(119,326		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			112,377			(1,514		)	21,427			—			132,290
CASH AND CASH EQUIVALENTS, beginning of period	—			3,394			1,749			12,539			—			17,682
CASH AND CASH EQUIVALENTS, end of period	$	—		$	115,771		$	235		$	33,966		$	—		$	149,972

F-55

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(26,528	)	$	(145,795	)	$	628,103		$	(35,694	)	$	12,513		$	432,599
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,864		)	(71,152		)	(2,722		)	1,280			(81,458		)
Payments for acquisition of television stations	—			—			(1,485,039		)	—			—			(1,485,039		)
Purchase of alarm monitoring contracts	—			—			—			(27,701		)	—			(27,701		)
Proceeds from sale of broadcast assets	—			—			176,675			—			—			176,675
Decrease in restricted cash	—			11,525			91			—			—			11,616
Investments in equity and cost method investees	—			—			—			(8,104		)	—			(8,104		)
Proceeds from insurance settlement	—			17,042			—			—			—			17,042
Other, net	1,000			—			392			(1,779		)	—			(387		)
Net cash flows (used in) from investing activities	1,000			19,703			(1,379,033		)	(40,306		)	1,280			(1,397,356		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,466,500			507			33,713			—			1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(556		)	(574,584		)	(1,028		)	(6,596		)	—			(582,764		)
Dividends paid on Class A and Class B Common Stock	(61,103		)	—			—			—			—			(61,103		)
Repurchases of outstanding Class A Common Stock	(133,157		)	—			—			—			—			(133,157		)
Payments for deferred financing costs	—			(16,590		)	—			—			—			(16,590		)
Noncontrolling interest distributions	—			—			—			(8,184		)	—			(8,184		)
Increase (decrease) in intercompany payables	218,081			(981,669		)	725,678			51,703			(13,793		)	—
Other, net	2,263			(2,145		)	(1,072		)	4,367			—			3,413
Net cash flows (used in) from financing activities	25,528			(108,488		)	724,085			75,003			(13,793		)	702,335
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(234,580		)	(26,845		)	(997		)	—			(262,422		)
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	3,394		$	1,749		$	12,539		$	—		$	17,682

F-56

QUARTERLY FINANCIAL INFORMATION (UNAUDITED):

(In thousands, except per share data)

	For the Quarter Ended
	3/31/2016		6/30/2016		9/30/2016		12/31/2016
Total revenues, net	$	578,889	$	666,534	$	693,835	$	797,691
Operating income	$	86,339	$	129,074	$	153,994	$	233,446
Net income	$	25,629	$	50,600	$	52,033	$	122,500
Net income attributable to Sinclair Broadcast Group	$	24,140	$	49,419	$	50,845	$	120,897
Basic earnings per common share	$	0.25	$	0.52	$	0.54	$	1.34
Diluted earnings per common share	$	0.25	$	0.52	$	0.54	$	1.32

	For the Quarter Ended
	3/31/2015		6/30/2015		9/30/2015		12/31/2015
Total revenues, net	$	504,775	$	554,167	$	548,404	$	611,790
Operating income	$	84,547	$	114,340	$	99,606	$	124,243
Net income	$	24,836	$	46,399	$	44,034	$	60,830
Net income attributable to Sinclair Broadcast Group	$	24,282	$	45,787	$	43,255	$	58,200
Basic earnings per common share	$	0.26	$	0.48	$	0.46	$	0.62
Diluted earnings per common share	$	0.25	$	0.48	$	0.45	$	0.61

F-57

EX-12

SINCLAIR BROADCAST GROUP, INC AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

FOR THE YEARS ENDED DECEMBER 31, 2016, 2015, 2014, 2013 and 2012

(DOLLARS IN THOUSANDS)

	2016			2015			2014			2013			2012
Income before provision for income taxes from continuing operations	$	372,890		$	233,793		$	312,547		$	105,508		$	212,340
Adjustments:
(Earnings) loss of equity investees	$	(1,735	)	$	(964	)	$	(2,313	)	$	(621	)	$	(9,670	)
Dividends and distributions of income from equity investees	4,504			5,409			4,768			4,911			10,339
Total interest expense (a)	211,143			191,447			174,862			162,937			128,553
Portion of rents representative of the interest factor (b)	8,659			7,249			6,451			3,429			2,239
Earnings, as adjusted	$	595,461		$	436,934		$	496,315		$	276,164		$	343,801
Fixed Charges:
Total interest expense (c)	211,143			191,447			175,205			162,937			128,553
Portion of rents representative of the interest factor (b)	8,659			7,249			6,451			3,429			2,239
Total fixed charges	$	219,802		$	198,696		$	181,656		$	166,366		$	130,792
Preferred stock dividends (d)	—			—			—			—			—
Total combined fixed charges and preferred stock dividends (d)	$	219,802		$	198,696		$	181,656		$	166,366		$	130,792
Ratio of earnings to fixed charges	2.71			2.20			2.73			1.66			2.63
Ratio of earnings to combined fixed charges and preferred stock dividends	2.71			2.20			2.73			1.66			2.63

______________________________________

(a)    Consists of interest expense on all debt, including amortization of debt discount/premium and amortization of deferred financing costs.

(b)    Management believes this portion is representative of the interest factor.

(c)    Consists of interest expense on all debt, including amortization of debt discount/premium and amortization of deferred financing costs, as well as

capitalized interest.

(d)    There was no preferred stock issued or outstanding for any period present in the table.

EX-21

Exhibit 21

SINCLAIR BROADCAST GROUP, INC.

List of Subsidiaries as of February 22, 2017

Acrodyne Technical Services, LLC (Maryland Limited Liability Company)

Allegiance Capital L.P. (Maryland Limited Partnership) 77.76%

Dielectric, LLC (Maine LLC)

KDSM, LLC (Maryland LLC)

    KDSM Licensee, LLC (Maryland LLC)

Keyser Capital, LLC (Maryland LLC)

Ring of Honor Wrestling Entertainment, LLC (Maryland LLC)

Sinclair Investment Group, LLC (Maryland LLC)

Sinclair-CVP, LLC (Maryland LLC) 90.32%

Sinclair Television Group, Inc. (Maryland Corporation)

Action TV, LLC (Nevada LLC)

    Chesapeake Media I, LLC (Nevada LLC)

KAME, LLC(Nevada LLC)

KENV, LLC (Nevada LLC)

KRNV, LLC (Nevada LLC)

KRXI, LLC (Nevada LLC)

KVCW, LLC (Nevada LLC)

KVMY, LLC (Nevada LLC)

CometTV, LLC (Nevada LLC)

Drive Auto, LLC (Nevada LLC)

Full Measure, LLC (Maryland LLC)

Hummingbird, LLC (Nevada LLC)

ONE Media, LLC (Maryland LLC)

ONE Media 3.0, LLC (Maryland LLC)

Perpetual Corporation (Delaware Corporation)

Sinclair Television Stations, LLC (Delaware LLC)

KATV, LLC (Delaware LLC)

KATV Licensee, LLC (Nevada LLC)

KTUL, LLC (Delaware LLC)

KTUL Licensee, LLC (Nevada LLC)

Harrisburg Television, Inc. (Delaware Corporation)

WLUK Licensee, LLC (Nevada LLC)

WJAR Licensee, LLC (Nevada LLC)

WCWF Licensee, LLC (Nevada LLC)

ACC Licensee, LLC (Delaware LLC)

WBMA Licensee, LLC (Nevada LLC)

WSET Licensee, LLC (Nevada LLC)

Sinclair Acquisition VII, Inc. (Maryland Corporation)

WVTV Licensee, Inc. (Maryland Corporation)

Sinclair Acquisition VIII, Inc. (Maryland Corporation)

Raleigh (WRDC-TV) Licensee, Inc. (Maryland Corporation)

Sinclair Acquisition IX, Inc. (Maryland Corporation)

Birmingham (WABM-TV) Licensee, Inc. (Maryland Corporation)

    Sinclair Communications, LLC (Maryland LLC)

Heartland Tower Company, LLC (Iowa LLC) 66.67%

Illinois Television, LLC (Maryland LLC)

WICD Licensee, LLC (Maryland LLC)

WICS Licensee, LLC (Maryland LLC)

Sinclair Television of Illinois, LLC (Nevada LLC)

KOKH LLC, (Nevada LLC)

KOKH Licensee, LLC (Maryland LLC)

Milwaukee Television, LLC (Wisconsin LLC)

WCGV Licensee, LLC (Maryland LLC)

Montecito Broadcasting Corporation (Delaware Corporation)

Channel 33, Inc. (Nevada Corporation)

San Antonio Television, LLC (Delaware LLC)

Sinclair Media III, Inc. (Maryland Corporation)

WCHS Licensee, LLC (Maryland LLC)

WVAH Licensee, LLC (Nevada LLC)

Sinclair Properties, LLC (Virginia LLC)

KBSI Licensee L.P. (Virginia Limited Partnership)

WDKA Licensee, LLC (Nevada LLC)

WKEF Licensee, L.P. (Virginia Limited Partnership

WMMP Licensee L.P. (Virginia Limited Partnership)    

Sinclair Television of El Paso, LLC (Delaware LLC)

KDBC Licensee, LLC (Delaware LLC)

WGME, Inc. (Maryland Corporation)

WGME Licensee, LLC (Maryland LLC)

    WRDC, LLC (Nevada LLC)

Highwoods Joint Venture (North Carolina Partnership) 60%

WSMH, Inc. (Maryland Corporation)

            WSMH Licensee, LLC (Maryland LLC)

WUCW, LLC (Maryland LLC)

KLGT Licensee, LLC (Maryland LLC)

Chesapeake Television Licensee, LLC (Maryland LLC)

KABB Licensee, LLC (Maryland LLC)

KDNL Licensee, LLC (Maryland LLC)

KEYE Licensee, LLC (Nevada LLC)

KFDM Licensee, LLC (Nevada LLC)

KFOX Licensee, LLC (Nevada LLC)

KFXA Licensee, LLC (Nevada LLC)

KGAN Licensee, LLC (Maryland LLC)

KGBT Licensee, LLC (Nevada LLC)

KHGI Licensee, LLC (Nevada LLC)

KHQA Licensee, LLC (Nevada LLC)

KJZZ Licensee, LLC (Nevada LLC)

KOCB Licensee, LLC (Maryland LLC)

KPTH Licensee, LLC (Nevada LLC)

KRCG Licensee, LLC (Nevada LLC)

KRXI Licensee, LLC (Nevada LLC)

KSAS Licensee, LLC (Nevada LLC)

KTVL Licensee, LLC (Nevada LLC)

KTVO Licensee, LLC (Nevada LLC)

KUPN Licensee, LLC (Maryland LLC)

KUQI Licensee, LLC (Nevada LLC)

KUTV Licensee, LLC (Nevada LLC)

KVII Licensee, LLC (Nevada LLC)

New York Television, Inc. (Maryland Corporation)

WACH Licensee, LLC (Nevada LLC)

WCWB Licensee, LLC (Maryland LLC)

WCWN Licensee, LLC (Nevada LLC)

WDKY Licensee, LLC (Maryland LLC)

WEAR Licensee, LLC (Maryland LLC)

WFGX Licensee, LLC (Nevada LLC)

WFXL Licensee, LLC (Nevada LLC)

WGFL Licensee, LLC (Nevada LLC)

WGXA Licensee, LLC (Nevada LLC)

WHOI Licensee, LLC (Nevada LLC)

WHP Licensee, LLC (Nevada LLC)

WKRC Licensee, LLC (Nevada LLC)

WLFL Licensee, LLC (Maryland LLC)

WLOS Licensee, LLC (Maryland LLC)

WLUC Licensee, LLC (Nevada LLC)

WMSN Licensee, LLC (Nevada LLC)

WNAB Licensee, LLC (Nevada LLC)

WNWO Licensee, LLC (Nevada LLC)

WOAI Licensee, LLC (Nevada LLC)

WOLF Licensee, LLC (Nevada LLC)

WPBN Licensee, LLC (Nevada LLC)

WPDE Licensee, LLC (Nevada LLC)

WPEC Licensee, LLC (Nevada LLC)

WPGH Licensee, LLC (Nevada LLC)

WQMY Licensee, LLC (Nevada LLC)

WRGB Licensee, LLC (Nevada LLC)

WRGT Licensee, LLC (Nevada LLC)

WRLH Licensee, LLC (Nevada LLC)

WSTQ Licensee, LLC (Nevada LLC)

WSYX Licensee, Inc. (Maryland Corporation)

WTGS Licensee, LLC (Nevada LLC)

WTOV Licensee, LLC (Nevada LLC)

WTTO Licensee, LLC (Maryland LLC)

WTVC Licensee, LLC (Nevada LLC)

WTVX Licensee, LLC (Nevada LLC)

WTVZ Licensee, LLC (Maryland LLC)

WUHF Licensee, LLC (Nevada LLC)

WUPN Licensee, LLC (Maryland LLC)

WUTV Licensee, LLC (Nevada LLC)

WUXP Licensee, LLC (Maryland LLC)

WWHO Licensee, LLC (Nevada LLC)

WWMT Licensee, LLC (Nevada LLC)

WXLV Licensee, LLC (Nevada LLC)

WZTV Licensee, LLC (Nevada LLC)

Sinclair Digital Group, LLC (Maryland LLC)

Circa, LLC (Maryland LLC)

Circa 1605 Canada, Inc. (Canadian federal corporation)

West Coast Digital, LLC (Nevada LLC)

Sinclair Networks Group, LLC (Maryland LLC)

Sinclair Programming Company, LLC (Maryland, LLC)

Sinclair Television of Fresno, LLC (Delaware LLC)

KFRE Licensee, LLC (Delaware LLC)

KMPH Licensee, LLC (Delaware LLC)

WJAC Licensee, LLC (Nevada LLC)

Sinclair Television of Omaha, LLC (Delaware LLC)

KPTM Licensee, LLC (Delaware LLC)

Sinclair Television of Seattle, Inc. (Washington Corporation)

Fisher Properties, Inc. (Washington Corporation)

Fisher Mills, Inc. (Washington Corporation)

Sinclair Television Media, Inc. (Washington Corporation)

            Sinclair Broadcasting of Seattle, LLC (Delaware LLC)

            Sinclair Television of Bakersfield, LLC (Delaware LLC)

            Sinclair Media of Boise, LLC (Delaware LLC)

            Sinclair Television of Portland, LLC (Delaware LLC)

            Sinclair Television of Oregon, LLC (Delaware LLC)

            Sinclair Radio of Seattle, LLC (Delaware LLC)

            Sinclair Media of Seattle, LLC (Delaware LLC)

            Sinclair Media of Washington, LLC (Delaware LLC)

            Sinclair Television of Washington, Inc. (Washington Corporation)

Sinclair Kennewick Licensee, LLC (Nevada LLC)

Sinclair La Grande Licensee, LLC (Nevada LLC)

            Sinclair Seattle Licensee, LLC (Nevada LLC)

            Sinclair Bakersfield Licensee, LLC (Nevada LLC)

            Sinclair Boise Licensee, LLC (Nevada LLC)

            Sinclair Yakima Licensee, LLC (Nevada LLC)

            Sinclair Lewiston Licensee, LLC (Nevada LLC)

            Sinclair Portland Licensee, LLC (Nevada LLC)

            Sinclair Eugene Licensee, LLC (Nevada LLC)

            Sinclair Radio of Seattle Licensee, LLC (Nevada LLC)

TBD TV, LLC (Nevada LLC)

The Tennis Channel Holdings, Inc. (Delaware Corporation)

The Tennis Channel, Inc. (Delaware Corporation)

EX-23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (Nos. 333-12257, 333-12255, 333-157786, 333-86712 and 333-52087), Form S-3MEF (No. 333-49543), Form S-3ASR (Nos. 333-203483 and 333-209475) and Form S-8 (Nos. 333-58135, 333-43047, 333-31569, 333-31571, 333-103528, 333-129615, 333-152884 and 333-209476) of Sinclair Broadcast Group, Inc.of our report dated February 28, 2017 relating to the financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.

 /s/ PricewaterhouseCoopers LLP

Baltimore, Maryland 

February 28, 2017    

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Christopher S. Ripley, certify that:

1. I have reviewed this annual report on Form 10-K of Sinclair Broadcast Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

A) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

B) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

C) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

D) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

A) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

B) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 28, 2017
			/s/ Christopher S. Ripley
		Signature:	Christopher S. Ripley
			Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Lucy A. Rutishauser, certify that:

1. I have reviewed this annual report on Form 10-K of Sinclair Broadcast Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

A) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

B) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

C) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

D) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

A) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

B) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	February 28, 2017
			/s/ Lucy A. Rutishauser
		Signature:	Lucy A. Rutishauser
			Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report on Form 10-K of Sinclair Broadcast Group, Inc. (the “Company”) for the year ending December 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher S. Ripley, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Christopher S. Ripley

Christopher S. Ripley

Chief Executive Officer

February 28, 2017

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report on Form 10-K of Sinclair Broadcast Group, Inc. (the “Company”) for the year ending December 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lucy A. Rutishauser, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Lucy A. Rutishauser

Lucy A. Rutishauser

Chief Financial Officer

February 28, 2017

XML

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 20, 2017	Jun. 30, 2016
Entity Listings
Entity Registrant Name	SINCLAIR BROADCAST GROUP INC
Entity Central Index Key	0000912752
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 2,048.4
Class A Common Stock
Entity Listings
Entity Common Stock, Shares Outstanding		25,670,684
Class B Common Stock
Entity Listings
Entity Common Stock, Shares Outstanding		64,669,100

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents		$ 259,984	$ 149,972
Accounts receivable, net of allowance for doubtful accounts of $2,124 and $4,495, respectively		513,954	424,608
Current portion of program contract costs		83,601	91,466
Income taxes receivable		5,500	823
Prepaid expenses and other current assets		36,267	26,903
Deferred barter costs		5,782	7,991
Total current assets		905,088	701,763
PROGRAM CONTRACT COSTS, less current portion		8,919	18,996
PROPERTY AND EQUIPMENT, net		717,576	717,137
RESTRICTED CASH		0	3,725
GOODWILL		1,990,746	1,931,093
INDEFINITE-LIVED INTANGIBLE ASSETS		156,306	132,465
DEFINITE-LIVED INTANGIBLE ASSETS, net		1,944,403	1,751,570
NOTES RECEIVABLE FROM AFFILIATES		19,500	0
OTHER ASSETS		220,630	175,566
Total assets	[1]	5,963,168	5,432,315
CURRENT LIABILITIES:
Accounts payable and accrued liabilities		322,505	251,313
Income taxes payable		23,491	0
Current portion of notes payable, capital leases and commercial bank financing		171,131	164,184
Current portion of notes payable and capital leases payable to affiliates		3,604	3,166
Current portion of program contracts payable		109,702	108,260
Deferred barter revenues		6,040	8,080
Total current liabilities		636,473	535,003
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion		4,014,932	3,669,160
Notes payable and capital leases to affiliates, less current portion		14,181	17,850
Program contracts payable, less current portion		53,836	56,921
Deferred tax liabilities		609,317	585,072
Other long-term liabilities		76,493	68,631
Total liabilities	[1]	5,405,232	4,932,637
COMMITMENTS AND CONTINGENCIES
SINCLAIR BROADCAST GROUP SHAREHOLDERS’ EQUITY:
Additional paid-in capital		843,691	962,726
Accumulated deficit		(255,804)	(437,029)
Accumulated other comprehensive loss		(807)	(834)
Total Sinclair Broadcast Group shareholders’ equity		587,983	525,810
Noncontrolling interests		(30,047)	(26,132)
Total equity		557,936	499,678
Total liabilities and equity		5,963,168	5,432,315
Total assets of variable interest entities (in dollars)		142,300	152,400
Total liabilities of variable interest entities (in dollars)		40,900	35,600
Class A Common Stock
SINCLAIR BROADCAST GROUP SHAREHOLDERS’ EQUITY:
Common Stock		646	688
Class B Common Stock
SINCLAIR BROADCAST GROUP SHAREHOLDERS’ EQUITY:
Common Stock		$ 257	$ 259

[1] (a) Our consolidated total assets as of December 31, 2016 and 2015 include total assets of variable interest entities (VIEs) of $142.3 million and $152.4 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2016 and 2015 include total liabilities of the VIEs of $40.9 million and $35.6 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, net of allowance for doubtful accounts of $2,124 and $4,495, respectively	$ 2,124	$ 4,495
Total assets of variable interest entities (in dollars)	142,300	152,400
Total liabilities of variable interest entities (in dollars)	$ 40,900	$ 35,600
Class A Common Stock
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	500,000,000	500,000,000
Common Stock, shares issued (in shares)	64,558,207	68,792,483
Common Stock, shares outstanding (in shares)	64,558,207	68,792,483
Class B Common Stock
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	140,000,000	140,000,000
Common Stock, shares issued (in shares)	25,760,684	25,928,357
Common Stock, shares outstanding (in shares)	25,760,684	25,928,357

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
REVENUES:
Media revenues	$ 2,499,549	$ 2,011,946	$ 1,784,641
Revenues realized from station barter arrangements	135,566	111,337	122,262
Other non-media revenues	101,834	95,853	69,655
Total revenues	2,736,949	2,219,136	1,976,558
OPERATING EXPENSES:
Media production expenses	953,089	733,199	578,687
Media selling, general and administrative expenses	501,589	431,728	372,220
Expenses recognized from station barter arrangements	116,954	93,204	107,716
Amortization of program contract costs and net realizable value adjustments	127,880	124,619	106,629
Other non-media expenses	80,648	71,803	55,615
Depreciation of property and equipment	98,529	103,433	103,291
Corporate general and administrative expenses	73,556	64,246	62,495
Amortization of definite-lived intangible and other assets	183,795	161,454	125,496
Research and development expenses	4,085	12,436	6,918
(Gain) loss on asset dispositions	(6,029)	278	(37,160)
Total operating expenses	2,134,096	1,796,400	1,481,907
Operating income	602,853	422,736	494,651
OTHER INCOME (EXPENSE):
Interest expense and amortization of debt discount and deferred financing costs	(211,143)	(191,447)	(174,862)
Loss from extinguishment of debt	(23,699)	0	(14,553)
Income from equity and cost method investments	1,735	964	2,313
Other income, net	3,144	1,540	4,998
Total other expense	(229,963)	(188,943)	(182,104)
Income before income taxes	372,890	233,793	312,547
INCOME TAX PROVISION	(122,128)	(57,694)	(97,432)
NET INCOME	250,762	176,099	215,115
Net income attributable to the noncontrolling interests	(5,461)	(4,575)	(2,836)
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP	$ 245,301	$ 171,524	$ 212,279
Dividends declared per share (in dollars per share)	$ 0.71	$ 0.66	$ 0.63
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP:
Basic earnings per share (in dollars per share)	2.62	1.81	2.19
Diluted earnings per share (in dollars per share)	$ 2.60	$ 1.79	$ 2.17
Weighted average common shares outstanding (in shares)	93,567	95,003	97,114
Weighted average common and common equivalent shares outstanding (in shares)	94,433	95,728	97,819

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 250,762	$ 176,099	$ 215,115
Amortization of net periodic pension benefit costs, net of taxes	0	190	173
Adjustments to pension obligations, net of taxes	27	621	(3,814)
Pension settlement	0	4,810	0
Unrealized gain on investments, net of taxes	0	0	285
Comprehensive income	250,789	181,720	211,759
Comprehensive income attributable to the noncontrolling interests	(5,461)	(4,575)	(2,836)
Comprehensive income attributable to Sinclair Broadcast Group	$ 245,328	$ 177,145	$ 208,923

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	Noncontrolling Interests
BALANCE at Dec. 31, 2013	$ 405,704			$ 741	$ 260	$ 1,094,918	$ (696,996)	$ (2,553)	$ 9,334
BALANCE (in shares) at Dec. 31, 2013				74,145,569	26,028,357
Increase (Decrease) in Stockholders' Equity
Dividends declared on Class A and Class B Common Stock	(61,103)						(61,103)
Class B Common Stock converted into Class A Common Stock				$ 1	$ (1)
Class B Common Stock converted into Class A Common Stock (in shares)				100,000	(100,000)
Repurchases of Class A Common Stock	(133,157)			$ (48)		(133,109)
Repurchase of Class A Common Stock (in shares)				(4,876,121)
Class A Common Stock issued pursuant to employee benefit plans	11,512			$ 2		11,510
Class A Common Stock issued pursuant to employee benefit plans (in shares)				209,451
Tax benefit on share based awards	1,365					1,365
Distributions to noncontrolling interests	(6,936)								(6,936)
Deconsolidation of variable interest entity	(23,801)					4,518		(546)	(27,773)
Other comprehensive income	(3,356)							(3,356)
Net income	215,115						212,279		2,836
BALANCE at Dec. 31, 2014	405,343			$ 696	$ 259	979,202	(545,820)	(6,455)	(22,539)
BALANCE (in shares) at Dec. 31, 2014				69,578,899	25,928,357
Increase (Decrease) in Stockholders' Equity
Dividends declared on Class A and Class B Common Stock	(62,733)						(62,733)
Repurchases of Class A Common Stock	(28,823)			$ (11)		(28,812)
Repurchase of Class A Common Stock (in shares)				(1,107,887)
Class A Common Stock issued pursuant to employee benefit plans	11,627			$ 3		11,624
Class A Common Stock issued pursuant to employee benefit plans (in shares)				321,471
Tax benefit on share based awards	712					712
Distributions to noncontrolling interests	(9,918)								(9,918)
Issuance of subsidiary share awards	1,750								1,750
Other comprehensive income	5,621							5,621
Net income	176,099						171,524		4,575
BALANCE at Dec. 31, 2015	499,678			$ 688	$ 259	962,726	(437,029)	(834)	(26,132)
BALANCE (in shares) at Dec. 31, 2015		68,792,483	25,928,357	68,792,483	25,928,357
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of new accounting standard	2,264					431	1,833
Dividends declared on Class A and Class B Common Stock	(65,909)						(65,909)
Class B Common Stock converted into Class A Common Stock	0			$ 2	$ (2)
Class B Common Stock converted into Class A Common Stock (in shares)				257,673	(257,673)
Repurchases of Class A Common Stock	$ (136,283)			$ (48)		(136,235)
Repurchase of Class A Common Stock (in shares)	(4,900,000)			(4,892,461)
Class A Common Stock issued pursuant to employee benefit plans	$ 16,773			$ 4		16,769
Class A Common Stock issued pursuant to employee benefit plans (in shares)				400,512
Distributions to noncontrolling interests	(10,722)								(10,722)
Issuance of subsidiary share awards	1,346								1,346
Other comprehensive income	27							27
Net income	250,762						245,301		5,461
BALANCE at Dec. 31, 2016	$ 557,936			$ 646	$ 257	$ 843,691	$ (255,804)	$ (807)	$ (30,047)
BALANCE (in shares) at Dec. 31, 2016		64,558,207	25,760,684	64,558,207	25,670,684

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (Parenthetical)	Dec. 31, 2014
3.0% Notes
Interest rate (as a percent)	3.00%

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 250,762	$ 176,099	$ 215,115
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation of property and equipment	98,529	103,433	103,291
Amortization of definite-lived intangible assets	183,795	161,454	125,496
Amortization of program contract costs and net realizable value adjustments	127,880	124,619	106,629
Loss on extinguishment of debt, non-cash portion	3,875	0	4,605
Stock-based compensation	16,939	18,315	14,296
Deferred tax (benefit) provision	6,118	(28,446)	(818)
(Gain) loss on the sale of assets	(6,029)	278	(37,160)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Increase in accounts receivable	(71,718)	(38,666)	(44,253)
Net change in net income taxes payable/receivable	18,814	3,203	8,253
Increase in prepaid expenses and other current assets	(969)	(3,474)	(2,215)
Increase (decrease) in accounts payable and accrued liabilities	60,086	(15,902)	55,457
Payments on program contracts payable	(111,506)	(109,057)	(93,682)
Real estate held for development and sale	1,075	(2,674)	(20,683)
Other, net	14,115	13,745	(1,732)
Net cash flows from operating activities	591,766	402,927	432,599
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	(94,465)	(91,421)	(81,458)
Acquisition of businesses, net of cash acquired	(425,857)	(17,011)	(1,485,039)
Proceeds from the sale of assets	16,396	23,650	176,675
Purchase of alarm monitoring contracts	(40,206)	(39,185)	(27,701)
Decrease (increase) in restricted cash	3,725	(3,725)	11,616
Investments in equity and cost method investees	(51,247)	(44,715)	(8,104)
Proceeds from termination of life insurance policies	0	0	17,042
Distributions from equity and cost method investees	6,786	21,749	3,869
Loans to affiliates	(19,500)	0	0
Other, net	(1,635)	(653)	(4,256)
Net cash flow used in investing activities	(606,003)	(151,311)	(1,397,356)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	1,024,912	382,887	1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(671,215)	(395,147)	(582,764)
Repurchase of outstanding Class A Common Stock	(136,283)	(28,823)	(133,157)
Dividends paid on Class A and Class B Common Stock	(65,909)	(62,733)	(61,103)
Payments for deferred financing costs	(15,681)	(3,847)	(16,590)
Noncontrolling interests distributions	(10,464)	(9,918)	(8,184)
Other, net	(1,111)	(1,745)	3,413
Net cash flows from (used in) financing activities	124,249	(119,326)	702,335
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	110,012	132,290	(262,422)
CASH AND CASH EQUIVALENTS, beginning of year	149,972	17,682	280,104
CASH AND CASH EQUIVALENTS, end of year	$ 259,984	$ 149,972	$ 17,682

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

 Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments.

As of December 31, 2016, our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 173 stations in 81 markets. These stations broadcast 483 channels as of December 31, 2016. For the purpose of this report, these 173 stations and 483 channels are referred to as “our” stations and channels.

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and variable interest entities (VIEs) for which we are the primary beneficiary.  Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities.  All intercompany transactions and account balances have been eliminated in consolidation.

Variable Interest Entities

In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE.  We consolidate VIEs when we are the primary beneficiary.  The assets of each of our consolidated VIEs can only be used to settle the obligations of the VIE.  All the liabilities are non-recourse to us except for certain debt of VIEs which we guarantee.

Third-party station licensees.  Certain of our stations provide services to other station owners within the same respective market, such as LMAs, where we provide programming, sales, operational and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational and administrative services.  In certain cases, we have also entered into purchase agreements or options to purchase, the license related assets of the licensee.  We typically own the majority of the non-license assets of the stations and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee’s acquisition financing.  The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. As of December 31, 2016 and 2015, we have concluded that 37 of these licensees are VIEs, respectively.  Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary of the variable interests because, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and because we absorb losses and returns that would be considered significant to the VIEs.  Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham).  See Note 11. Related Person Transactions for more information about the arrangements with Cunningham. The net revenues of the stations which we consolidate were $310.4 million, $284.4 million and $286.3 million for the years ended December 31, 2016, 2015, and 2014, respectively.  The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.  See Changes in the Rules of Television Ownership and Joint Sale Agreements within Note 10. Commitments and Contingencies for discussion of recent changes in FCC rules related to JSAs.

As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets as of December 31, 2016 and 2015 were as follows (in thousands):

	2016		2015
ASSETS
CURRENT ASSETS:
Accounts receivable	$	21,879	$	21,719
Other current assets	12,076		14,108
Total current asset	33,955		35,827
PROGRAM CONTRACT COSTS, less current portion	2,468		4,541
PROPERTY AND EQUIPMENT, net	2,996		7,609
GOODWILL	791		787
INDEFINITE-LIVED INTANGIBLE ASSETS	15,684		17,599
DEFINITE-LIVED INTANGIBLE ASSETS, net	79,509		79,086
OTHER ASSETS	6,871		6,924
Total assets	$	142,274	$	152,373
LIABILITIES
CURRENT LIABILITIES:
Other current liabilities	18,992		17,554
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion	19,449		24,594
Program contracts payable, less current portion	14,353		13,679
Other long term liabilities	12,921		8,067
Total liabilities	$	65,715	$	63,894

The amounts above represent the consolidated assets and liabilities of the VIEs described above, for which we are the primary beneficiary, and have been aggregated as they all relate to our broadcast business.  Excluded from the amounts above are payments made to Cunningham under the LMA which are treated as a prepayment of the purchase price of the stations and capital leases between us and Cunningham which are eliminated in consolidation.  The total payments made under these LMAs as of December 31, 2016 and 2015, which are excluded from liabilities above, were $40.8 million and $37.6 million, respectively.  The total capital lease liabilities, net of capital lease assets, excluded from the above were $4.5 million, for both years ended December 31, 2016 and 2015.  Also excluded from the amounts above are liabilities associated with the certain outsourcing agreements and purchase options with certain VIEs totaling $74.5 million and $72.5 million as of December 31, 2016 and December 31, 2015, respectively, as these amounts are eliminated in consolidation.  The risk and reward characteristics of the VIEs are similar.

Other investments.  We have investments in other real estate ventures and investment companies which are considered VIEs.  However, we do not participate in the management of these entities including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.  We account for these entities using the equity or cost method of accounting.

The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary as of December 31, 2016 and 2015 was $117.0 million and $18.1 million, respectively, are included in other assets in the consolidated balance sheets. See Other Assets below for more information related to our equity and cost method investments. The increase in 2016 was due to the adoption of the revised accounting guidance during the first quarter of 2016 related to consolidation as discussed under Recent Accounting Pronouncements below, which resulted in additional investments being considered VIEs. Our maximum exposure is equal to the carrying value of our investments.  The income and loss related to these investments are recorded in income from equity and cost method investments in the consolidated statement of operations.  We recorded income of $2.5 million, $7.7 million and $2.2 million for the years ended December 31, 2016, 2015 and 2014, respectively, related to these investments.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities.  Actual results could differ from those estimates.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective.  The new standard will be effective for annual reporting periods beginning after December 15, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We do not currently believe that the adoption of this guidance will have a material impact on our station advertising or retransmission consent revenue; however, we have not finalized our assessment of the impact of this guidance on our consolidated financial statements.

In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. The new standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We adopted this guidance beginning December 31, 2016, which involves adding policies and procedures around our assessments to continue as a going concern.

In February 2015, the FASB issued new guidance that amends the current consolidation guidance on the determination of whether an entity is a variable interest entity.  The new standard is effective for the interim and annual periods beginning after December 15, 2015. We adopted this revised guidance on a modified retrospective basis during the three months ended March 31, 2016. As disclosed under Other investments under Variable Interest Entities above, the adoption of the revised guidance resulted in additional investments in real estate ventures and investment companies being considered VIEs, however we concluded that we were not the primary beneficiary of these investments. The revised guidance did not have any other impact on our consolidation conclusions.

In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This new guidance will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In March 2016, the FASB issued new guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income tax effects, forfeitures, the impact of employee income tax withholdings and classification of certain related items in the statement of cash flows. We early adopted this guidance effective January 1, 2016, which did not have a material effect on the consolidated financial statements. The adoption of the various changes in the guidance were applied as required by the guidance either on the prospective, modified retrospective, or full retrospective basis. As shown in the consolidated statement of stockholders' equity, upon adoption, we recorded a $0.4 million increase to additional paid in capital and a $1.8 million decrease in accumulated deficit, net of taxes, to record the cumulative effect of changing the classification of certain liability awards to equity classification. Additionally, for the years ended December 31, 2015 and 2014, we reclassified $2.2 million and $2.1 million, respectively from net cash flows from operating activities to net cash flows from financing activities in our consolidated statement of cash flows related to cash payments made to taxing authorities on certain employees' behalf for shares withheld.

In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard, which includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flow. The new standard is effective for fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance related to the accounting for income tax consequences of intra-entity transfers of assets other than inventory. Currently the recognition of current and deferred income taxes for an intra-entity are prohibited until the asset has been sold to an outside party. This update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance which relates to related party considerations in the variable interest entities assessment.  The new standard is effective for the interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of the guidance on our consolidated financial statements.

In November 2016, FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new standard requires that a statement of cash flow explain change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling from period to period as shown on the cash flow. The new standard is effective for the fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for the interim and annual periods beginnings after December 31, 2017. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In January 2017, the FASB issued guidance which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new standard should be applied prospectively and is effective for the interim and annual periods beginnings after December 31, 2019. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

During 2015, we entered into certain definitive agreements to purchase certain stations, which required certain deposits to be made in escrow accounts. As of the year ended December 31, 2015, we had $3.7 million restricted cash held on our balance sheet.

Accounts Receivable

Management regularly reviews accounts receivable and determines an appropriate estimate for the allowance for doubtful accounts based upon the impact of economic conditions on the merchant’s ability to pay, past collection experience and such other factors which, in management’s judgment, deserve current recognition.  In turn, a provision is charged against earnings in order to maintain the appropriate allowance level.

A rollforward of the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Balance at beginning of period	$	4,495		$	4,246		$	3,379
Charged to expense	1,974			1,292			2,186
Net write-offs	(4,345		)	(1,043		)	(1,319		)
Balance at end of period	$	2,124		$	4,495		$	4,246

Programming

We have agreements with distributors for the rights to television programming over contract periods, which generally run from one to seven years.  Contract payments are made in installments over terms that are generally equal to or shorter than the contract period.  Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet where the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or estimated net realizable value.  With the exception of one and two-year contracts, amortization of program contract costs is computed using an accelerated method.  Program contract costs are amortized on a straight-line basis for one and two-year contracts.  Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets.  Payments of program contract liabilities are typically made on a scheduled basis and are not affected by adjustments for amortization or estimated net realizable value.

Estimated net realizable values are based on management’s expectation of future advertising revenues, net of sales commissions, to be generated by the program material.  We perform a net realizable value calculation quarterly for each of our program contract costs in accordance with the accounting guidance for the broadcasting industry.  We utilize sales information to estimate the future revenue of each commitment and measure that amount against the commitment.  If the estimated future revenue is less than the amount of the commitment, a loss is recorded in amortization of program contract costs and net realizable value adjustments in the consolidated statements of operations.

Barter Arrangements

Certain program contracts provide for the exchange of advertising airtime in lieu of cash payments for the rights to such programming.  The revenues realized from station barter arrangements are recorded as the programs are aired at the estimated fair value of the advertising airtime given in exchange for the program rights.  Program service arrangements are accounted for as station barter arrangements, however, network affiliation programming is excluded from these calculations.  Revenues are recorded as revenues realized from station barter arrangements and the corresponding expenses are recorded as expenses recognized from station barter arrangements.

We broadcast certain customers’ advertising in exchange for equipment, merchandise and services.  The estimated fair value of the equipment, merchandise or services received is recorded as deferred barter costs and the corresponding obligation to broadcast advertising is recorded as deferred barter revenues.  The deferred barter costs are expensed or capitalized as they are used, consumed or received and are included in station production expenses and station selling, general and administrative expenses, as applicable.  Deferred barter revenues are recognized as the related advertising is aired and are recorded in revenues realized from station barter arrangements.

Other Assets

Other assets as of December 31, 2016 and 2015 consisted of the following (in thousands):

	2016		2015
Equity and cost method investments	$	168,572	$	116,031
Unamortized costs related to debt issuances	4,936		3,663
Other	47,122		55,872
Total other assets	$	220,630	$	175,566

We have equity and cost method investments primarily in private equity investments and real estate ventures.  In the event that one or more of our investments are significant, we are required to disclose summarized financial information.  For the years ended December 31, 2016, 2015 and 2014, none of our investments were significant individually or in the aggregate.

As of December 31, 2016 and 2015, our unfunded commitments related to private equity investment funds totaled $13.5 million and $22.1 million, respectively.

When factors indicate that there may be a decrease in value of an equity or cost method investment, we assess whether a loss in value has occurred related to the investment.  If that loss is deemed to be other than temporary, an impairment loss is recorded accordingly.  For any investments that indicate a potential impairment, we estimate the fair values of those investments using discounted cash flow models, unrelated third party valuations or industry comparables, based on the various facts available to us.  For the year ended December 31, 2016, we recorded a $2.5 million impairment charge related to one real estate investment. For the year ended December 31, 2015, there were $6.0 million of impairment charges recorded. For the year ended December 31, 2014, no impairment charges were recorded. The impairments are recorded in the income (loss) from equity and cost method investments in our consolidated statement of operations.

Unamortized costs related to debt issuances represent costs related to our revolving credit facility.  Unamortized costs related to our other debt issuances is recorded as a direct deduction from the carrying value of the debt recorded as liability. We amortize our deferred debt financing costs to interest expense over the term of the respective debt instruments using the effective interest method. Previously capitalized debt financing costs are recognized as a loss on extinguishment of debt if we determine that there has been a an extinguishment of the related debt.

Impairment of Goodwill, Intangibles and Other Long-Lived Assets

We evaluate our goodwill and indefinite lived intangible assets for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that an impairment may exist. Our goodwill has been allocated to and is tested for impairment at the reporting unit level. A reporting unit is an operating segment or a component of an operating segment to the extent that the component constitutes a business for which discrete financial information is available regularly reviewed by segment management. Components of an operating segment with similar economic characteristics are aggregated when testing goodwill for impairment. Our indefinite-lived intangible assets consist primarily of our broadcast licenses and a trade name.

In the performance of our annual assessment of goodwill for impairment we have the option to qualitatively assess whether it is more likely than not a reporting unit has been impaired.  As part of this qualitative assessment, for each reporting unit, we weigh the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors.  The reporting unit specific factors that we consider include current and forecasted financial performance, the significance of the excess fair value over carrying value in prior quantitative assessments, and any changes to the reporting units’ net book value since the most recent impairment tests.  We also consider whether there were any significant changes in the regulatory environment and business climate of the industry, and whether there were any negative pressures on growth rates and discount rates.

If we conclude that it is more likely than not that a reporting unit is impaired, or if we elect not to perform the optional qualitative assessment, we will apply the quantitative two-step impairment test. In the first step, we determine and compare the fair value of the reporting unit to the net book value of the reporting unit. We estimate the fair value of our reporting units utilizing a combination of a market based approach which considers earnings and cash flow multiples of comparable businesses and recent market transactions as well as an income approach involving the performance of a discounted cash flow analysis. Our discounted cash flow model is based on our judgment of future market conditions based on our internal forecast of future performance, as well as discount rates that are based on a number of factors including market interest rates, a weighted average cost of capital analysis, and includes adjustments for market risk and company specific risk.  If the net book value of the reporting unit were to exceed the fair value, we would then perform the second step of the impairment test, which requires allocation of the reporting unit’s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill to determine the implied fair value. An impairment charge will be recognized only when the implied fair value of a reporting unit’s goodwill is less than its carrying amount.

For our annual impairment test for indefinite-lived intangible assets we have the option to perform a qualitative assessment to determine whether it is more likely than not that these assets are impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the indefinite-lived intangible assets as well as industry and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. The market specific factors that we consider include recent market projections from both independent and internal sources for advertising revenue and operating costs, estimated normal market share and capital expenditures, as well as the significance of the excess fair value over carrying value in prior quantitative assessments. We also consider whether there were any significant changes in the regulatory environment and business climate of the industry, and whether there were any negative pressures on growth rates and discount rates. When evaluating our broadcast licenses for impairment, the qualitative assessment is done at the market level because the broadcast licenses within the market are complementary and together enhance the single broadcast license of each station. If we conclude that it is more likely than not that one of our broadcast licenses is impaired, we will perform a quantitative assessment by comparing the aggregate fair value of the broadcast licenses in the market to the respective carrying values. We estimate the fair values of our broadcast licenses using the Greenfield method which is an income approach. This method involves a discounted cash flow model that incorporates several variables, including, but not limited to, market revenues and long term growth projections, estimated market share for the typical participant without a network affiliation and estimated profit margins based on market size and station type. The model also assumes outlays for capital expenditures, future terminal values, an effective tax rate assumption and a discount rate based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk. If the carrying amount of the broadcast licenses exceeds the fair value, then an impairment loss is recorded to the extent that the carrying value of the broadcast licenses exceeds the fair value.

We periodically evaluate our long-lived assets for impairment and continue to evaluate them as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable.  We evaluate the recoverability of long-lived assets by measuring the carrying amount of the assets against the estimated undiscounted future cash flows associated with them.  At the time that such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are tested for impairment by comparing their estimated fair value to the carrying value.  We typically estimate fair value using discounted cash flow models and appraisals.  See Note 5.  Goodwill, Indefinite-Lived Intangible Assets and Other Intangible Assets, for more information.

Accounts Payable and Accrued Liabilities

Accrued liabilities consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016		2015
Compensation and employee health insurance	$	78,682	$	65,364
Interest	41,979		32,788
Deferred revenue	25,692		24,837
Programming related obligations	76,962		54,381
Other accruals relating to operating expenses	99,190		73,943
Total accounts payable and accrued liabilities	$	322,505	$	251,313

We expense these activities when incurred.

Income Taxes

We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities.  We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized.  In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies and forecasts of future taxable income.  In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. As of December 31, 2016 and 2015, a valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income.  Future changes in operating and/or taxable income or other changes in facts and circumstances could significantly impact the ability to realize our deferred tax assets which could have a material effect on our consolidated financial statements.

Management periodically performs a comprehensive review of our tax positions and we record a liability for unrecognized tax benefits when such tax positions do not meet the “more-likely-than-not” threshold.  Significant judgment is required in determining whether a tax position meets the “more-likely-than-not” threshold, and it is based on a variety of facts and circumstances, including interpretation of the relevant federal and state income tax codes, regulations, case law and other authoritative pronouncements.  Based on this analysis, the status of ongoing audits and the expiration of applicable statute of limitations, liabilities are adjusted as necessary.  The resolution of audits is unpredictable and could result in tax liabilities that are significantly higher or lower than for what we have provided.  See Note 9. Income Taxes, for further discussion of accrued unrecognized tax benefits.

Supplemental Information — Statements of Cash Flows

During 2016, 2015 and 2014, we had the following cash transactions (in thousands):

	2016		2015		2014
Income taxes paid	$	108,347	$	106,979	$	100,986
Income tax refunds	$	12,193	$	196	$	1,407
Interest paid	$	191,117	$	182,425	$	157,349

For the year ended December 31, 2016, non-cash investing activities include property and equipment purchases accrued as of December 31, 2016 of $5.9 million. For the year ended December 31, 2015, non-cash transactions related to capital lease obligations were $2.8 million. For the year ended December 31, 2014, non-cash conversion of the 4.875% Notes into Class A Common Stock was $8.6 million, net of taxes for the year ended December 31, 2014.

Revenue Recognition

Total revenues include: (i) station advertising revenue, net of agency commissions; (ii) barter advertising revenues; (iii) retransmission consent fees; (iv) network compensation; (v) other media revenues and (vi) revenues from our other businesses.

Advertising revenues, net of agency commissions, are recognized in the period during which advertisements are placed.

Some of our retransmission consent agreements contain both advertising and retransmission consent elements.  We have determined that these retransmission consent agreements are revenue arrangements with multiple deliverables.  Advertising and retransmission consent deliverables sold under our agreements are separated into different units of accounting at fair value.  Revenue applicable to the advertising element of the arrangement is recognized similar to the advertising revenue policy noted above.  Revenue applicable to the retransmission consent element of the arrangement is recognized over the life of the agreement.

Network compensation revenue is recognized over the term of the contract.  All other significant revenues are recognized as services are provided.

Share Repurchase Program

On March 20, 2014, the Board of Directors approved an $150.0 million share repurchase authorization. On September 6, 2016 the Board of Directors approved an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. For the year ended December 31, 2016, we have repurchased approximately 4.9 million shares of Class A Common Stock for $136.4 million. As of December 31, 2016, the total remaining repurchase authorization was $119.1 million.

Advertising Expenses

Promotional advertising expenses are recorded in the period when incurred and are included in media production and other non-media expenses.  Total advertising expenses, net of advertising co-op credits, were $18.5 million, $23.9 million and $21.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Financial Instruments

Financial instruments, as of December 31, 2016 and 2015, consisted of cash and cash equivalents, trade accounts receivable, accounts payable, accrued liabilities and notes payable.  The carrying amounts approximate fair value for each of these financial instruments, except for the notes payable.  See Note 6. Notes Payable and Commercial Bank Financing, for additional information regarding the fair value of notes payable.

Post-retirement Benefits

During the fourth quarter of 2015, we fully settled the benefit obligation of our pension plan. We relieved our benefit obligation via lump sum distributions and/or the purchase of annuity contracts. Upon settlement we recorded $9.3 million of pension expense, including the recognition of $8.0 million of unamortized actuarial loses which was recorded in accumulated other comprehensive income, and $4.6 million of pension liability, representing the underfunded status of our defined pension plan, which was included within other long-term liabilities within our consolidated balance sheet.

We maintain a supplemental executive retirement plan (SERP) which we inherited upon the acquisition of certain stations. As of December 31, 2016, the estimated projected benefit obligation was $21.5 million, of which $1.7 million is included in accrued expenses in the consolidated balance sheet and the $19.8 million is included in other long-term liabilities.  During the years ended December 31, 2016 and 2015, we made $1.7 million and $1.5 million in benefit payments, recognized $0.9 million and $0.9 million of periodic pension expense, reported in other expenses in the consolidated statement of operations, and $0.1 million and $1.0 million of actuarial gains through other comprehensive income, respectively.

At December 31, 2016, the projected benefit obligation was measured using a 3.89% discount rate compared to a discount rate of 4.11% for the year ended December 31, 2015. We estimated its discount rate, in consultation with our independent actuaries, based on a yield curve constructed from a portfolio of high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plan.

We estimate that benefits expected to be paid to participants under the SERP as follows (in thousands):

	December 31,
2017	$	1,749
2018	1,669
2019	1,597
2020	1,538
2021	1,479
Next 5 years	6,532

Reclassifications

Certain reclassifications have been made to prior years’ consolidated financial statements to conform to the current year’s presentation.

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ACQUISITIONS AND DISPOSITION OF ASSETS

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITIONS AND DISPOSITION OF ASSETS:

During the years ended December 31, 2016, 2015 and 2014, we acquired certain assets for an aggregate purchase price of $1,872.0 million plus working capital of $56.3 million.

All of these acquisitions provide expansion into additional markets and increases value based on the synergies we can achieve. The following summarizes the material acquisition activity during the years ended December 31, 2016, 2015 and 2014:

2016 Acquisitions

Tennis Channel. In March 2016, we acquired all of the outstanding common stock of Tennis Channel (Tennis), a cable network which includes coverage of the top 100 tennis tournaments and original professional sport and tennis lifestyle shows, for $350.0 million plus a working capital of $9.2 million. This was funded through cash on hand and a draw on the Bank Credit Agreement. The acquisition provides an expansion of our network business and increases value based on the synergies we can achieve. Tennis is reported within Other within Note 13. Segment Data.

The following table summarizes the allocated fair value of acquired assets and assumed liabilities of Tennis (in thousands):

Cash	$	5,111
Accounts receivable	17,629
Prepaid expenses and other current assets	6,518
Property and equipment	5,964
Definite-lived intangible assets	272,686
Indefinite-lived intangible assets	23,400
Other assets	619
Accounts payable and accrued liabilities	(7,414		)
Capital leases	(115		)
Deferred tax liability	(16,991		)
Other long term liabilities	(1,669		)
Fair value of identifiable net assets acquired	305,738
Goodwill	53,427
Total	$	359,165

The allocations presented above are based upon management’s estimate of the fair values using valuation techniques including income, cost and market approaches.  In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates.  The purchase prices have been allocated to the acquired assets and assumed liabilities based on estimated fair values.

The definite-lived intangible assets of $272.7 million related primarily to customer relationships, which represent existing advertiser relationships and contractual relationships with MVPDs and will be amortized over a weighted average useful life of 15 years.  Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives.  Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies.  Goodwill will not be deductible for tax purposes.

Other 2016 Acquisitions. During the year ended December 31, 2016, we acquired certain television station related assets for an aggregate purchase price of $72.0 million less working capital of $0.2 million. We also exchanged certain broadcast assets whichhad a carrying value of $23.8 million with another broadcaster for no cash consideration, and recognized a gain on the derecognition of those broadcast assets of $4.4 million, respectively.

2015 Acquisition

During the year ended December 31, 2015, we acquired one television station for a cash purchase price of $15.5 million, which was financed with cash on hand.

2014 Acquisitions

Allbritton.  Effective August 1, 2014, we completed the acquisition of all of the outstanding common stock of Perpetual Corporation and equity interest of Charleston Television, LLC (together the “Allbritton Companies”) for $985.0 million plus working capital of $50.1 million.  The Allbritton Companies owned and operated nine television stations in the following seven markets, all of which were affiliated with ABC. Also included in the purchase was NewsChannel 8, a 24-hour cable/satellite news network covering the Washington, D.C. metropolitan area.  We financed the total purchase price with proceeds from the issuance of 5.625% senior unsecured notes, a draw on our amended bank credit agreement, and cash on hand. See Note 6. Notes Payable and Commercial Bank Financing. 

Concurrent with the acquisition of the Allbritton companies, due to FCC multiple ownership rules, we sold WHTM in Harrisburg/Lancaster/York, PA to Media General in September 2014 for $83.4 million, less working capital of $0.2 million and the non-license assets of WTAT in Charleston, SC to Cunningham for $14.0 million, effective August 1, 2014.  WHTM was acquired from the Allbritton companies and assets of WHTM were classified as assets held for sale in the Allbritton purchase price allocation.  We did not recognize a gain or loss on this transaction. Prior to the sale of WTAT, we operated the station under an LMA and purchase agreement with Cunningham.  This sale was accounted for as a transaction between parties under common control.  See Note 11. Related Person Transactions for further discussion.

MEG Stations.  Effective December 19, 2014, we completed the acquisition of four television stations in three markets from Media General, Inc (MEG Stations) for a purchase price of $207.5 million less working capital of $1.6 million.  We financed the purchase price with cash on hand and borrowing under our revolving credit facility. We financed the purchase price, net of the proceeds received from the sale of those stations, with borrowings under our revolving credit facility.

Simultaneously, in December 2014, we sold to Media General the broadcast assets of two stations for $93.1 million less working capital of $0.6 million, which resulted in a gain on sale of $39.0 million.

KSNV.  Effective November 1, 2014, we completed the acquisition of certain of assets of KSNV (NBC) in Las Vegas, NV from Intermountain West Communications Company (Intermountain West) for $118.5 million less working capital of $0.2 million.  In conjunction with the purchase, we assumed the rights under the affiliation agreement with NBC and swapped our KVMY call letters for the KSNV call letters.  We financed the total purchase price with cash on hand and borrowings under our revolving credit facility.

Other 2014 Acquisitions.  During the year ended December 31, 2014, we acquired certain assets related to eight other television stations in four markets.  The purchase price for these stations was $123.5 million less working capital of $1.1 million which was financed with cash on hand and borrowings under our revolving credit facility.

The following tables summarize the allocated fair value of acquired assets and assumed liabilities, including the net assets of consolidated VIEs (in thousands):

	MEG Station			KSNV			Allbritton			Other			Total 2014 acquisitions
Accounts receivable	—			—			38,542			—			38,542
Prepaid expenses and other current assets	476			67			19,890			79			20,512
Program contract costs	1,954			482			1,204			2,561			6,201
Property and equipment	23,462			8,300			46,600			8,352			86,714
Indefinite-lived intangible assets	675			—			13,700			225			14,600
Definite-lived intangible assets	125,925			70,375			564,100			87,915			848,315
Other assets	—			—			20,352			1,500			21,852
Assets held for sale	—			—			83,200			—			83,200
Accounts payable and accrued liabilities	(2,085		)	(277		)	(8,351		)	(1,143		)	(11,856		)
Program contracts payable	(1,914		)	(481		)	(1,140		)	(2,554		)	(6,089		)
Deferred tax liabilities	—			—			(261,291		)	—			(261,291		)
Other long term liabilities	—			(1,200		)	(17,263		)	—			(18,463		)
Fair value of identifiable net assets acquired	148,493			77,266			499,543			96,935			822,237
Goodwill	57,398			41,024			535,694			25,501			659,617
Total	$	205,891		$	118,290		$	1,035,237		$	122,436		$	1,481,854

The allocations presented above are based upon management’s estimate of the fair values using valuation techniques including income, cost and market approaches.  In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates.  The purchase prices have been allocated to the acquired assets and assumed liabilities based on estimated fair values.

During the year ended December 31, 2015, we made certain measurement period adjustments to the initial purchase accounting for the acquisitions in 2014, resulting in reclassifications between certain noncurrent assets and noncurrent liabilities, including a decrease to property and equipment of approximately $12.5 million, a decrease to broadcast licenses of $3.4 million, an increase to definite-lived intangible assets of $58.3 million, and a decrease to goodwill of $42.2 million, as well as a corresponding decrease to depreciation of $0.7 million and a decrease to amortization of $0.7 million during the year ended December 31, 2015.

The intangible assets will be amortized over the weighted average useful lives of 15 years for network affiliations and 14 years for the customer relationships, which represent existing advertiser relationships and contractual relationships with MVPDs.  Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives.  Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies.  Other intangible assets will be amortized over the respective weighted average useful lives ranging from 14 to 15 years.

The following tables summarize the amounts allocated to definite-lived intangible assets representing the estimated fair values and estimated goodwill deductible for tax purposes (in thousands):

	MEG Stations		KSNV		Allbritton		Other		Total 2014 acquisitions
Network affiliations	$	56,925	$	44,775	$	356,900	$	27,575	$	486,175
Customer relationships	45,500		25,600		207,200		44,800		323,100
Other intangible assets	23,500		—		—		15,540		39,040
Fair value of identifiable definite-lived intangible assets acquired	$	125,925	$	70,375	$	564,100	$	87,915	$	848,315
Estimated definite-lived intangible assets deductible for tax purposes	$	57,398	$	41,024	—		$	25,501	$	123,923

Financial Results of Acquisitions

The following tables summarize the results of the net media revenues and operating income (loss) included in the financial statements of the Company beginning on the acquisition date of each acquisition as listed below (in thousands):

Revenues	2016		2015		2014
Tennis Channel	$	84,040	$	—	$	—
MEG Stations	86,466		69,275		2,299
KSNV	63,818		32,471		5,972
Allbritton	253,845		231,300		106,258
Other stations acquired in:
2016	49,186		—		—
2015	2,676		1,007		—
2014	49,298		42,470		9,172
Total net media revenues	$	589,329	$	376,523	$	123,701

Operating Income (Loss)	2016			2015		2014
Tennis Channel	$	(1,990	)	$	—	$	—
MEG Stations	26,728			15,246		1,010
KSNV	36,446			7,206		2,108
Allbritton	49,777			39,550		26,914
Other stations acquired in:
2016	18,311			—		—
2015	646			426		—
2014	11,644			8,451		1,569
Total operating income	$	141,562		$	70,879	$	31,601

In connection with the 2016, 2015, and 2014 acquisitions, for the years ended December 31, 2016, 2015, and 2014, we incurred $1.4 million, $0.5 million, and $5.7 million, respectively, of costs primarily related to legal and other professional services, which we expensed as incurred and classified as corporate general and administrative expenses in the consolidated statements of operations.

Pro Forma Information

The following table sets forth unaudited pro forma results of operations, assuming that Tennis and the 2014 Acquisitions, along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the acquisitions presented under Other 2016 Acquisitions, 2015 Acquisitions, and Other 2014 Acquisitions above, as they were deemed not material both individually and in the aggregate. The 2014 period does not include the pro forma effects of the Tennis acquisition, and as such will not provide comparability to the 2015 and 2016 pro forma periods presented in the following table (in thousands, except per share data):

	Unaudited
	2016		2015		2014
Total revenues	$	2,751,441	$	2,310,202	$	2,150,124
Net Income	$	249,722	$	168,364	$	189,174
Net Income attributable to Sinclair Broadcast Group	$	244,261	$	163,789	$	186,338
Basic earnings per share attributable to Sinclair Broadcast Group	$	2.61	$	1.72	$	1.92
Diluted earnings per share attributable to Sinclair Broadcast Group	$	2.59	$	1.71	$	1.90

This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments, and is not indicative of what our results would have been had we operated the businesses since the beginning of the annual period presented because the pro forma results do not reflect expected synergies.  The pro forma adjustments reflect depreciation expense, amortization of intangibles and amortization of program contract costs related to the fair value adjustments of the assets acquired, additional interest expense related to the financing of the transactions, and exclusion of nonrecurring financing and transaction related costs. Depreciation and amortization expense are higher than amounts recorded in the historical financial statements of the acquirees due to the fair value adjustments recorded for long-lived tangibles and intangible assets in purchase accounting.

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STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS:

In June 1996, our Board of Directors adopted, upon approval of the shareholders by proxy, the 1996 Long-Term Incentive Plan (LTIP).  The purpose of the LTIP is to reward key individuals for making major contributions to our success and the success of our subsidiaries and to attract and retain the services of qualified and capable employees.  Under the LTIP, we have issued restricted stock awards (RSAs), stock grants to our non-employee directors, stock-settled appreciation rights (SARs) and stock options.  A total of 14,000,000 shares of Class A Common Stock are reserved for awards under this plan.  As of December 31, 2016, 7,111,609shares (including forfeited shares) were available for future grants.   Additionally, we have the following arrangements that involve stock-based compensation: employer matching contributions (the Match) for participants in our 401(k) plan, an employee stock purchase plan (ESPP), and subsidiary stock awards.  Stock-based compensation expense has no effect on our consolidated cash flows.  For the years ended December 31, 2016, 2015 and 2014, we recorded stock-based compensation of $16.9 million, $18.0 million and $13.9 million, respectively. Below is a summary of the key terms and methods of valuation of our stock-based compensation awards:

RSAs.   RSAs issued in 2016, 2015 and 2014 have certain restrictions that lapse over two years at 50% and 50%, respectively. As the restrictions lapse, the Class A Common Stock may be freely traded on the open market.  Unvested RSAs are entitled to dividends, and therefore, are included in weighted shares outstanding which results in a dilutive effect on basic and diluted earnings per share.  The fair value assumes the closing value of the stock on the measurement date.

The following is a summary of changes in unvested restricted stock:

	RSAs		Weighted-Average Price
Unvested shares at December 31, 2015	137,900		$	25.81
2016 Activity:
Granted	96,450		31.40
Vested	(87,375	)	26.32
Unvested shares at December 31, 2016	146,975		29.18

For the years ended December 31, 2016, 2015 and 2014, we recorded compensation expense of $2.8 million, $5.3 million and $3.2 million, respectively.  The majority of the unrecognized compensation expense of $1.7 million as of December 31, 2016 will be recognized in 2017.

Stock Grants to Non-Employee Directors.  In addition to directors fees paid, on the date of each of our annual meetings of shareholders, each non-employee director receives a grant of unrestricted shares of Class A Common Stock.  In 2016, 2015 and 2014, we issued 20,000 shares, 20,000 shares and 12,000 shares, respectively.  We recorded expense of $0.6 million, $0.6 million and $0.4 million for each of the years ended December 31, 2016, 2015 and 2014, respectively, which was based on the average share price of the stock on the date of grant.  Additionally, these shares are included in the total shares outstanding, which results in a dilutive effect on our basic and diluted earnings per share.

SARs.  During the years ended December 31, 2016, 2015 and 2014, 400,000, 310,000 and 200,000 SARs were granted with base values per share of $31.40, $24.93 and $27.86, respectively, to our Executive Chairman.  The SARs have a 10-year term and vest immediately.  The base value of each SAR is equal the closing price of our Class A Common Stock on the grant date.   For the years ended December 31, 2016, 2015 and 2014, we recorded compensation expense equal to the estimated fair value at the grant date, of $4.0 million, $2.6 million and $2.6 million, respectively.  We valued the SARs using the Black-Scholes model and the following assumptions:

	2016		2015		2014
Risk-free interest rate	1.2	%	1.3	%	1.5	%
Expected years until exercise	5 years		5 years		5 years
Expected volatility	42	%	47	%	65	%
Annual dividend yield	2.1	%	2.7	%	2.2	%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for U.S. Treasury zero coupon separate trading of registered interest and principal securities, commonly known as STRIPS, that approximate the expected life of the options.  The expected volatility is based on our historical stock prices over a period equal to the expected life of the options.  The annual dividend yield is based on the annual dividend per share divided by the share price on the grant date.

The following is a summary of the 2016 activity:

	SARs	Weighted- Average Price
Outstanding SARs at December 31, 2015	1,910,000	$	16.68
2016 Activity:
Granted	400,000	31.40
Outstanding SARs at December 31, 2016	2,310,000	19.23

The aggregate intrinsic value of the 2,310,000 outstanding as of December 31, 2016 was $32.6 million, and the outstanding SARs have a weighted average remaining contractual life of 6.08 years as of December 31, 2016.  During 2016, 2015 and 2014, outstanding SARs increased the weighted average shares outstanding for purposes of determining dilutive earnings per share.

Options.  Effective April 1, 2014, we entered into an employment agreement with our Chief Executive Officer, to grant annually on each December 31, an option to purchase 125,000 shares of Class A Common Stock beginning December 31, 2014 through December 31, 2021.  Upon grant, the stock options are immediately exercisable.  The maximum aggregate intrinsic value that can be earned under the arrangement cannot exceed $20 million. The stock options are granted with an exercise price equal to the closing price of the stock on the date of grant and have a 10 year contractual life.

	Options	Weighted- Average Price
Outstanding Options at December 31, 2015	250,000	$	29.95
2016 Activity:
Granted	125,000	33.35
Outstanding Options at December 31, 2016	375,000	31.08

Since the stock options are fully vested upon grant and requisite service must be satisfied to receive the award, we estimate the fair value of each annual tranche of the options to be issued in the future and recognize the compensation expense over the period until the actual grant date.  The fair value of each award is remeasured each period until the actual grant with the ultimate cumulative expense equaling the grant date fair value of the award.  During the years ended December 31, 2016, 2015, and 2014 we recorded $0.4 million, $0.8 million, and $1.5 million of stock-based compensation expense related to this arrangement, respectively, based on estimated fair values of each of the options, of which $0.5 million, $0.8 million, and $1.1 million were attributable to the options granted on December 31, 2016, 2015, and 2014, respectively.

We value stock options using the Black-Scholes pricing model and the following assumptions:

	2016		2015		2014
Risk-free interest rate	1.9	%	1.9	%	1.8	%
Expected years to exercise	5 years		5 years		5 years
Expected volatility	37.5	%	42.1	%	47.6	%
Annual dividend yield	2.1	%	2.0	%	2.3	%

The risk-free interest rate is based on the U.S. Treasury yield curve, in effect at the time of grant, for U.S. Treasury STRIPS that approximate the expected life of the options.  The expected volatility is based on our historical stock prices over a period equal to the expected life of the options.  The annual dividend yield is based on the annual dividend per share divided by the share price on the grant date. During 2016, 2015, and 2014, outstanding stock options increased the weighted average shares outstanding for purposes of determining dilutive earnings per share.

Match.  The Sinclair Broadcast Group, Inc. 401(k) Profit Sharing Plan and Trust (the 401(k) Plan) is available as a benefit for our eligible employees.  Contributions made to the 401(k) Plan include an employee elected salary reduction amount, the Match and an additional discretionary amount determined each year by the Board of Directors.  The Match and any additional

discretionary contributions may be made using our Class A Common Stock if the Board of Directors so chooses.  Typically, we make the Match using our Class A Common Stock.

The value of the Match is based on the level of elective deferrals into the 401(k) Plan.  The amount of shares of our Class A Common Stock used to make the Match is determined using the closing price on or about March 1 of each year for the previous calendar year’s Match.  The Match is discretionary and is equal to a maximum of 50% of elective deferrals by eligible employees, capped at 4% of the employee’s total cash compensation.  For the years ended December 31, 2016, 2015 and 2014, we recorded $6.9 million, $6.2 million and $5.2 million, respectively, of stock-based compensation expense related to the Match. A total of 3,000,000 shares of Class A Common Stock are reserved for matches under the plan.  As of December 31, 2016, 410,119 shares were available for future grants.

ESPP.  The ESPP allows eligible employees to purchase Class A Common Stock at 85% of the lesser of the fair value of the common stock as of the first day of the quarter and as of the last day of that quarter, subject to certain limits as defined in the ESPP. The stock-based compensation expense recorded related to the ESPP for the years ended December 31, 2016, 2015 and 2014 was $0.9 million, $0.7 million and $0.7 million, respectively.  A total of 3,200,000 shares of Class A Common Stock are reserved for awards under the plan.  As of December 31, 2016, 995,349 shares were available for future grants.

Subsidiary Stock Awards.  From time to time, we grant subsidiary stock awards to employees.  The subsidiary stock is typically in the form of a membership interest in a consolidated limited liability company, not traded on a public exchange and valued based on the estimated fair value of the subsidiary.  Fair value is typically estimated using discounted cash flow models and/or appraisals.  These stock awards vest immediately.  For the years ended December 31, 2016, 2015 and 2014, we recorded compensation expense of $1.3 million, $1.8 million and $0.2 million, respectively, related to these awards which increase noncontrolling interest equity.  These awards have no effect on the shares used in our basic and diluted earnings per share.

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PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT:

Property and equipment are stated at cost, less accumulated depreciation.  Depreciation is generally computed under the straight-line method over the following estimated useful lives:

Buildings and improvements	10 - 30 years
Station equipment	5 - 10 years
Office furniture and equipment	5 - 10 years
Leasehold improvements	Lesser of 10 - 30 years or lease term
Automotive equipment	3 - 5 years
Property and equipment under capital leases	Lease term

Acquired property and equipment as discussed in Note 2. Acquisitions and Disposition of Assets, is depreciated on a straight-line basis over the respective estimated remaining useful lives.

Property and equipment consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Land and improvements	$	73,124		$	60,678
Real estate held for development and sale	90,087			91,106
Buildings and improvements	239,603			210,597
Station equipment	702,004			667,454
Office furniture and equipment	101,252			85,411
Leasehold improvements	24,762			22,693
Automotive equipment	56,507			47,402
Capital leased assets	84,516			84,474
Construction in progress	30,880			34,666
	1,402,735			1,304,481
Less: accumulated depreciation	(685,159		)	(587,344		)
	$	717,576		$	717,137

Capital leased assets are related to building, tower and equipment leases.  Depreciation related to capital leases is included in depreciation expense in the consolidated statements of operations. We recorded capital lease depreciation expense of $4.2 million, $3.9 million and $3.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS

GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS:

Goodwill, which arises from the purchase price exceeding the assigned value of the net assets of an acquired business, represents the value attributable to unidentifiable intangible elements being acquired. Goodwill totaled $1,990.7 million and $1,931.1 million at December 31, 2016 and 2015, respectively.  The change in the carrying amount of goodwill was as follows (in thousands):

	Broadcast			Other		Consolidated
Balance at December 31, 2014
Goodwill	$	2,377,613		$	513	$	2,378,126
Accumulated impairment losses	(413,573		)	—		(413,573		)
	1,964,040			513		1,964,553
Acquisitions (a)	5,802			—		5,802
Measurement period adjustments related to prior year acquisitions	(42,237		)	—		(42,237		)
Change in assets held for sale (b)	—			2,975		2,975
Balance at December 31, 2015 (c)
Goodwill	2,341,178			3,488		2,344,666
Accumulated impairment losses	(413,573		)	—		(413,573		)
	1,927,605			3,488		1,931,093
Acquisitions (a)	11,626			53,427		65,053
Measurement period adjustments related to prior year acquisitions	40			—		40
Disposition of assets (d)	(5,440		)	—		(5,440		)
Balance at December 31, 2016 (c)
Goodwill	2,347,404			56,915		2,404,319
Accumulated impairment losses	(413,573		)	—		(413,573		)
	$	1,933,831		$	56,915	$	1,990,746

_______________________________________________________

(a) In 2016 and 2015, we acquired goodwill as a result of acquisitions as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) We concluded in 2015 that certain non-media related assets that were classified as assets held for sale as of December 31, 2014 no longer met the held for sale criteria.

(c) Approximately $0.8 million of goodwill relates to consolidated VIEs as of December 31, 2016 and 2015.

(d) Amounts relate to the 2016 sale of broadcast assets as discussed in Note 2. Acquisitions and Disposition of Assets.

For our annual goodwill impairment tests in 2016, 2015 and 2014, we concluded that it was more-likely-than-not that goodwill was not impaired for the reporting units in which we performed a qualitative assessment.  For one reporting unit in 2016, we elected to perform a quantitative assessment and concluded that its fair value substantially exceeded its carrying value. The qualitative factors reviewed during our annual assessments, indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of our reporting units. We did not have any indicators of impairment in any interim period in 2016, 2015, or 2014, and therefore did not perform interim impairment tests for goodwill during those periods.

The key assumptions used to determine the fair value of our broadcast reporting unit consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, profit margins and growth rates.  The discount rate used to determine the fair value of our broadcast reporting unit is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television broadcasting company, and includes adjustments for market risk and company specific risk.  Estimated cash flows are based upon internally developed estimates and the growth rates and profit margins are based on market studies, industry knowledge and historical performance. 

As of December 31, 2016 and 2015, the carrying amount of our indefinite-lived intangible assets was as follows (in thousands):

	Broadcast			Other		Consolidated
Balance at December 31, 2014	$	135,075		$	—	$	135,075
Acquisitions (a)	992			—		992
Sale of assets	(175		)	—		(175		)
Measurement period adjustments related to prior year acquisitions	(3,427		)	—		(3,427		)
Balance at December 31, 2015 (b)	132,465			—		132,465
Acquisitions (a)	2,406			23,400		25,806
Disposition of assets	(1,965		)	—		(1,965		)
Balance at December 31, 2016 (b) (c)	$	132,906		$	23,400	$	156,306

(a) In 2016 and 2015, we acquired indefinite-lived intangible assets as a result of acquisitions as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) Approximately $15.7 million and $17.6 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2016 and 2015, respectively.

(c) Our indefinite-lived intangible assets in Broadcast relates to broadcast licenses and our indefinite-lived intangible assets in Other relates to trade names.

We did not have any indicators of impairment for our indefinite-lived intangible assets in any interim period in 2016 or 2015, and therefore did not perform interim impairment tests during those periods. We performed our annual impairment tests for indefinite-lived intangibles in the fourth quarter of 2016 and 2015 and as a result of our qualitative and quantitative assessments, we recorded no impairment. We performed our annual impairment tests for indefinite-lived intangibles in the fourth quarter of 2014 and as a result of our qualitative and/or quantitative assessments we recorded $3.2 million of impairment charges, included within amortization of definite-lived intangible and other assets within the consolidated statement of operations, related to broadcast licenses with a carrying value of $21.1 million, compared to their estimated fair value of $17.9 million, as a result of a decrease in the projected future market revenues related to our radio broadcast licenses in Seattle, WA.

The key assumptions used to determine the fair value of our broadcast licenses consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated market revenues, normalized market share, normalized profit margin, and estimated start-up costs. The qualitative factors for our broadcast licenses indicated an increase in market revenues, stable market shares and stable cost factors. The revenue, expense and growth rates used in determining the fair value of our broadcast licenses remained constant or increased slightly from 2015 to 2016.  The growth rates are based on market studies, industry knowledge and historical performance. The discount rates used to determine the fair value of our broadcast licenses did not change significantly over the last three years. The discount rate is based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk.

The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in thousands):

	As of December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Network affiliation (a)	$	1,398,451	$	(427,484	)	$	970,967
Customer Relationships (a)	1,102,591		(294,114		)	808,477
Other (b)	243,253		(78,294		)	164,959
Total	$	2,744,295	$	(799,892	)	$	1,944,403

	As of December 31, 2015
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Network affiliation (a)	$	1,378,425	$	(343,729	)	$	1,034,696
Customer Relationships (a)	806,727		(225,176		)	581,551
Other (b)	193,594		(58,271		)	135,323
Total	$	2,378,746	$	(627,176	)	$	1,751,570

_______________________________________________________

(a) Changes between the gross carrying value from December 31, 2015 to December 31, 2016, relate to acquisitions in 2016, as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) The increase in other intangible assets is primarily due to the purchase of additional alarm monitoring contracts of $40.2 million.

Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives which generally range from 5 to 25 years.  The total weighted average useful life of all definite-lived intangible assets and other assets subject to amortization acquired as a result of the acquisitions discussed in Note 2. Acquisitions and Disposition of Assets is 14 years.  The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2016, 2015 and 2014 was $183.8 million, $161.5 million and $125.5 million, respectively.  We analyze specific definite-lived intangibles for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets.  There were no impairment charges recorded for the years ended December 31, 2016, 2015 and 2014.

The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years (in thousands):

For the year ended December 31, 2017	$	175,942
For the year ended December 31, 2018	174,593
For the year ended December 31, 2019	173,586
For the year ended December 31, 2020	173,006
For the year ended December 31, 2021	171,988
Thereafter	1,075,288
	$	1,944,403

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

NOTES PAYABLE AND COMMERCIAL BANK FINANCING

NOTES PAYABLE AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement

We have a syndicated credit facility which includes both revolving credit and issued term loans (Bank Credit Agreement).  During the years ended December 31, 2016, 2015 and 2014, the Bank Credit Agreement has been restated and amended several times to provide incremental financing to the acquisitions as discussed under Note 2. Acquisitions and Disposition of Assets.  As of December 31, 2016, $1,624.5 million, net of $10.5 million and $2.8 million deferred financing costs and debt discounts, respectively, of aggregate borrowings were outstanding under the Bank Credit Agreement, which consists of the following:

Term Loan A. On July 19, 2016, we entered into an amendment and extension of our bank credit agreement and extended the maturity date of $139.5 million of term A loans to July 31, 2021. The remaining $153.5 million of outstanding term loan A loans mature April 9, 2018. In connection with the transaction, we also amended certain pricing terms related to the loans. In connection with the amendment of the Term Loan A and Revolver discussed below, we incurred approximately $2.7 million of financing costs, of which $0.3 million was expensed and the remaining $2.4 million was capitalized as deferred financing cost as of December 31, 2016. As of December 31, 2016, $140.9 million of term loans which mature April 9, 2018, and bear interest at LIBOR plus 2.25% and $130.1 million of term loans which mature July 31, 2021 and bear interest at LIBOR plus 2.25%, which is adjusted for changes in our First Lien Indebtedness ratio, (together Term Loan A loans) were outstanding, net of $1.2 million in deferred financing costs. As of December 31, 2015, $312.1 million of Term Loan A was outstanding.

Term Loan B.  As of December 31, 2016, $1,353.5 million of term loans, net of $9.3 million deferred financing costs and debt discounts of $2.8 million, were outstanding. As of December 31, 2015, $1,364.6 million of Term Loan B, net of $11.4 million deferred financing cost and debt discounts of $3.6 million, was outstanding.  The Term Loan B bears interest at LIBOR plus 2.25%.

In January 2017, we amended our Bank Credit Agreement. We extended the maturity date of the Term Loan B from April 9, 2020 and July 31, 2021 to January 3, 2024. In connection with the extension, we added additional operating flexibility, including a reduction in certain pricing terms related to Term Loan B and our existing revolving credit facility (Revolver) and revisions to certain covenant ratio requirements. Prior to July 3, 2017, if we repay, refinance, substitute, or replace the Term Loan B, we are subject to a prepayment premium of 1% of the aggregate principal balance of the repayment.

Revolving Credit Facility.  As of December 31, 2016 and 2015, our total commitments under the Revolver were $485.2 million which bears interest at LIBOR plus 2.25%, and is adjusted for changes in our First Lien Indebtedness ratio. On July 19, 2016, we entered into an amendment and extension of our bank credit agreement and extended the maturity of the Revolver to July 31, 2021. We incur a commitment fee on undrawn capacity of 0.25% to 0.5%, which is adjusted for changes in our First Lien Indebtedness ratio.  As of December 31, 2016, there were no outstanding borrowings and $1.9 million of letters of credit were issued under the Revolver. The remaining borrowing capacity under the Revolver was $483.3 million and $482.9 million as of December 31, 2016 and 2015, respectively.

Cash interest expense related to the Bank Credit Agreement, including the Revolver, in our consolidated statements of operations was $54.4 million, $53.0 million and $38.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.  We capitalized $2.0 million, $3.6 million and $3.8 million as deferred financing costs, during the years ended December 31, 2016, 2015 and 2014, respectively.  Deferred financing costs are classified within our notes payable and commercial bank financing within our consolidated balance sheet, except for deferred financing costs related to our Revolver as discussed in Other Assets within Note 1. Nature of Operations and Summary of Significant Accounting Policies.  The weighted average effective interest rate of the Term Loan B for the years ended December 31, 2016 and 2015 was 3.53% and 3.54%, respectively.  The weighted average effective interest rate of the Term Loan A for the years ended December 31, 2016 and 2015 was 2.72% and 2.47%, respectively.  The weighted average effective interest rate of the Revolver for the year ended December 31, 2016 was 2.98% and 2.38%, respectively.

Our Bank Credit Agreement, as well as indentures governing our outstanding notes as described below, contains a number of covenants that, among other things, restrict our ability and our subsidiaries’ ability to incur additional indebtedness with certain exceptions, pay dividends (See Note 8. Common Stock), incur liens, engage in mergers or consolidations, make acquisitions, investments or disposals and engage in activities with affiliates.  In addition, under the Bank Credit Agreement, we are required to maintain a ratio of First Lien Indebtedness of 4.25 times EBITDA.  As of December 31, 2016, we were in compliance with all financial ratios and covenants.

Our Bank Credit Agreement also contains certain cross-default provisions with certain material third-party licensees, defined as any party that owns the license assets of one or more television stations for which we provided services pursuant to LMAs and/or other outsourcing agreements and those stations provide 20%or more of our aggregate broadcast cash flows.  A default by a material third-party licensee under our agreements with such parties, including a default caused by insolvency, would cause an event of default under our Bank Credit Agreement. As of December 31, 2016, there were no material third party licensees as defined in our Bank Credit Agreement.

Substantially all of our stock in our wholly-owned subsidiaries has been pledged as security for the Bank Credit Agreement.

5.125% Senior Notes, due 2027

On August 30, 2016, we issued $400.0 million of senior unsecured notes, which bear interest at a rate of 5.125% per annum and mature on February 15, 2027 (the 5.125% Notes), pursuant to an indenture dated August 30, 2016 (the 5.125% Indenture). The 5.125% Notes were priced at 100% of their par value and interest is payable semi-annually on February 15 and August 15, commencing on February 15, 2017. Prior to August 15, 2021, we may redeem the 5.125% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.125% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.125% Indenture. In addition, on or prior to August 15, 2019, we may redeem up to 35% of the 5.125% Notes, using proceeds of certain equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, the holders of the 5.125% Notes may require us to repurchase some or all of the notes. There are no registration rights associated with the 5.125% Notes. The net proceeds of the 5.125% Notes were used to redeem aggregate principal amount of the 6.375% Notes and for general corporate purposes. We incurred $6.6 million of deferred financing costs in connection with the issuance of the 5.125% Notes as of December 31, 2016.

Cash interest expense was $6.9 million for the years ended December 31, 2016. The weighted average effective interest rate for the 5.125% Notes was 5.33% for the year ended December 31, 2016.

5.875% Senior Notes, due 2026

On March 23, 2016, we issued $350.0 million of senior unsecured notes, which bear interest at a rate of 5.875% per annum and mature on March 15, 2026 (the 5.875% Notes), pursuant to an indenture dated March 23, 2016 (the 5.875% Indenture). The 5.875% Notes were priced at 100% of their par value and interest is payable semi-annually on March 15 and September 15, commencing on September 15, 2016. Prior to March 15, 2021, we may redeem the 5.875% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.875% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.875% Indenture. In addition, on or prior to March 15, 2019, we may redeem up to 35% of the 5.875% Notes, using proceeds of certain equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, the holders of the 5.875% Notes may require us to repurchase some or all of the notes. There are no registration rights associated with the 5.875% Notes. We incurred $5.9 million of deferred financing costs in connection with the issuance of the 5.875% Notes which were capitalized and are classified net of the carrying value of debt and amortized using the effective interest method.

Cash interest expense was $15.8 million for the years ended December 31, 2016.  The weighted average effective interest rate for the 5.875% Notes was 6.1% for the year ended December 31, 2016.

As discussed in Note 2. Acquisitions and Disposition of Assets, we completed the acquisition of Tennis in March 2016. The acquisition was funded, in part, by a draw on our revolving line of credit which was repaid using the proceeds from the 5.875% Notes discussed above.

5.625% Senior Unsecured Notes, due 2024

On July 23, 2014, we issued $550.0 million in senior unsecured notes, which bear interest at a rate of 5.625% per annum and mature on August 1, 2024 (the 5.625% Notes), pursuant to an indenture dated July 23, 2014 (the 5.625% Indenture).  The 5.625% Notes were priced at 100% of their par value and interest is payable semi-annually on February 1 and August 1, commencing on February 1, 2015.  Prior to August 1, 2019, we may redeem the 5.625% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.625% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.625% Indenture.  In addition, on or prior to August 1, 2019, we may redeem up to 35% of the 5.625% Notes, using proceeds of certain equity offerings.  If we sell certain of our assets or have certain changes of control, the holders of the 5.625% Notes may require us to repurchase some or all of the notes.  The proceeds from the offering of the 5.625% Notes, together with borrowings under our Bank Credit Agreement and cash on hand, were used to finance the acquisition of the Allbritton companies effective August 1, 2014.

Cash interest expense was $30.9 million for both years ended December 31, 2016 and 2015, respectively, and $13.6 million for the year ended December 31, 2014. The weighted average effective interest rate for the 5.625% Notes was 5.83% for the year ended December 31, 2016.

6.375% Senior Notes, due 2021

Effective August 15, 2016, we redeemed all of the outstanding 6.375% Senior Unsecured Notes, representing $350.0 million in aggregate principal amount. Upon the redemption, along with the principal, we paid the accrued and unpaid interest and a make whole premium, for a total of $377.2 million paid to noteholders. We recorded a loss on extinguishment of $23.7 million in the third quarter of 2016 related to this redemption, which included the write-off of the unamortized deferred financing costs of $3.9 million and prepayment penalty of $19.8 million.

Cash interest expense was $14.8 million, $22.3 million, and $22.4 million for the year ended December 31, 2016, 2015 and 2014, respectively.

5.375% Senior Unsecured Notes, due 2021

On April 2, 2013, we issued $600.0 million of senior unsecured notes, which bear interest at a rate of 5.375% per annum and mature on April 1, 2021 (the 5.375% Notes), pursuant to an indenture dated April 2, 2013 (the 5.375% Indenture).  The 5.375% Notes were priced at 100% of their par value and interest is payable semi-annually on April 1 and October 1, commencing on October 1, 2013.  Prior to April 1, 2016, we may redeem the 5.375% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.375% Notes plus accrued and unpaid interest, if any, to the redemption date, plus a “make-whole” premium as set forth in the 5.375% Indenture.  Beginning on April 1, 2016, we may redeem some or all of the 5.375% Notes at any time or from time to time at a redemption price set forth in the 5.375% Indenture.  In addition, on or prior to April 1, 2016, we may redeem up to 35% of the 5.375% Notes using proceeds of certain equity offerings.  If we sell certain of our assets or experience specific kinds of changes of control, holders of the 5.375% Notes may require us to repurchase some or all of the Notes.  The net proceeds from the offering of the 5.375% Notes were used to pay down outstanding indebtedness under our bank credit facility.

Cash interest expense was $32.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. The weighted average effective interest rate for the 5.375% Notes was 5.58% for the year ended December 31, 2016.

6.125% Senior Unsecured Notes, due 2022

On October 12, 2012, we issued $500.0 million of senior unsecured notes, which bear interest at a rate of 6.125% per annum and mature on October 1, 2022 (the 6.125% Notes), pursuant to an indenture dated October 12, 2012 (the 6.125% Indenture).  The 6.125% Notes were priced at 100% of their par value and interest is payable semi-annually on April 1 and October 1, commencing on April 1, 2013. Prior to October 1, 2017, we may redeem the 6.125% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 6.125% Notes plus accrued and unpaid interest, if any, to the redemption date, plus a “make-whole” premium as set forth in the 2012 Indenture.  Beginning on October 1, 2017, we may redeem some or all of the 6.125% Notes at any time or from time to time at a redemption price set forth in the 6.125% Indenture.  In addition, on or prior to October 1, 2015, we could have redeemed up to 35% of the 6.125% Notes using proceeds of certain equity offerings.  If we sell certain of our assets or experience specific kinds of changes of control, holders of the 6.125% Notes may require us to repurchase some or all of the Notes.  The net proceeds from the offering of the 6.125% Notes were used to pay down outstanding indebtedness under the revolving credit facility under our Bank Credit Agreement and fund certain acquisitions and for general corporate purposes.

Cash interest expense was $30.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. The weighted average effective interest rate for the 6.125% Notes was 6.310% for the year ended December 31, 2016.

8.375% Senior Unsecured Notes, due 2018

Effective October 15, 2014, we redeemed all of the outstanding 8.375% Senior Notes due 2018, representing $237.5 million aggregate principal amount of Notes as of October 15, 2014. Upon the redemption, along with the principal, we paid the accrued and unpaid interest and a make whole premium of $9.9 million, for a total of $257.4 million paid to note holders.  We recorded a loss on extinguishment of $14.6 million in the fourth quarter of 2014 related to this redemption.

Cash interest expense was $15.7 million for the years ended December 31, 2014. 

Debt of other non-media subsidiaries

Debt of our consolidated subsidiaries related to our non-media private equity investment and real estate ventures is non-recourse to us.  Interest was paid on this debt at rates typically ranging from LIBOR plus 2.5% to a fixed 6.5% during 2016.  During 2016, 2015 and 2014, interest expense on this debt was $5.9 million, $3.8 million and $3.1 million, respectively.

Debt of variable interest entities

Our consolidated VIEs have $23.0 million, net of $0.2 million deferred financing costs, in outstanding debt for which the proceeds were used to purchase the license assets of certain stations.  See Variable Interest Entities under Note 1. Nature of Operations and Summary of Significant Accounting Policies for more information.  The credit agreements and term loans of these VIEs each bear interest of LIBOR plus 2.5%.  We have jointly and severally, unconditionally and irrevocably guaranteed the debt of the VIEs, as a primary obligor, including the payment of all unpaid principal of and interest on the loans.

For the years ended December 31, 2016, 2015 and 2014, the interest expense relating to the debt of our VIEs which was jointly and severally, unconditionally and irrevocably guaranteed was $0.9 million, $1.7 million and $2.2 million, respectively.   

Summary

Notes payable, capital leases and the Bank Credit Agreement consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Bank Credit Agreement, Term Loan A	$	272,198		$	313,620
Bank Credit Agreement, Term Loan B	1,365,625			1,379,626
6.375% Senior Unsecured Notes, due 2021	—			350,000
5.375% Senior Unsecured Notes, due 2021	600,000			600,000
6.125% Senior Unsecured Notes, due 2022	500,000			500,000
5.625% Senior Unsecured Notes, due 2024	550,000			550,000
5.875% Senior Unsecured Notes, due 2026	350,000			—
5.125% Senior Unsecured Notes, due 2027	400,000			—
Debt of variable interest entities	23,198			26,682
Debt of other non-media subsidiaries	135,211			120,969
Capital leases	33,280			34,774
Total outstanding principal	4,229,512			3,875,671
Less: Deferred financing costs and discount	(43,449		)	(42,327		)
Less: Current portion	(171,131		)	(164,184		)
Net carrying value of long-term debt	$	4,014,932		$	3,669,160

Indebtedness under the notes payable, capital leases and the Bank Credit Agreement as of December 31, 2016 matures as follows (in thousands):

	Notes and Bank Credit Agreement			Capital Leases			Total
2017	$	169,247		$	4,845		$	174,092
2018	156,562			4,880			161,442
2019	34,674			4,989			39,663
2020	643,068			4,733			647,801
2021	1,372,406			4,759			1,377,165
2022 and thereafter	1,820,275			28,443			1,848,718
Total minimum payments	4,196,232			52,649			4,248,881
Less: Deferred financing costs and discount	(43,449		)	—			(43,449		)
Less: Amount representing future interest	—			(19,369		)	(19,369		)
Net carrying value of debt	$	4,152,783		$	33,280		$	4,186,063

As of December 31, 2016, we had 32 capital leases with non-affiliates; including 24 broadcast tower leases and six other non-media equipment leases.  All of our tower leases will expire within the next 16 years and the equipment leases expire within the next 5 years.  Most of our leases have 5-10 year renewal options and it is expected that these leases will be renewed or replaced within the normal course of business.  For information related to our affiliate notes and capital leases, see Note 11. Related Person Transactions.

Interest expense on the Consolidated Statements of Operations was $211.1 million, $191.4 million, and $174.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Interest expense included $10.8 million, $9.7 million, and $9.3 million in amortization of deferred financing costs and debt discount for the years ended December 31, 2016, 2015 and 2014, respectively.

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PROGRAM CONTRACTS

12 Months Ended

Dec. 31, 2016

PROGRAM CONTRACTS:

PROGRAM CONTRACTS

PROGRAM CONTRACTS:

Future payments required under program contracts as of December 31, 2016 were as follows (in thousands):

2017	$	109,702
2018	21,844
2019	14,303
2020	10,924
2021	6,765
Total	163,538
Less: Current portion	109,702
Long-term portion of program contracts payable	$	53,836

Each future period’s film liability includes contractual amounts owed, however, what is contractually owed does not necessarily reflect what we are expected to pay during that period.  While we are contractually bound to make the payments reflected in the table during the indicated periods, industry protocol typically enables us to make film payments on a three months lag.  Included in the current portion amount are payments due in arrears of $27.3 million.  In addition, we have entered into non-cancelable commitments for future program rights aggregating to $150.9 million as of December 31, 2016.

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COMMON STOCK

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

COMMON STOCK

COMMON STOCK:

Holders of Class A Common Stock are entitled to one vote per share and holders of Class B Common Stock are entitled to ten votes per share, except for votes relating to “going private” and certain other transactions.  Substantially all of the Class B Common Stock is held by David D. Smith, Frederick G. Smith, J. Duncan Smith and Robert E. Smith who entered into a stockholders’ agreement pursuant to which they have agreed to vote for each other as candidates for election to our board of directors until December 31, 2025. The Class A Common Stock and the Class B Common Stock vote together as a single class, except as otherwise may be required by Maryland law, on all matters presented for a vote.  Holders of Class B Common Stock may at any time convert their shares into the same number of shares of Class A Common Stock.  During 2016, 257,673 Class B Common Stock shares were converted into Class A Common Stock shares.  During 2015, no Class B Common Stock shares were converted into Class A Common Stock shares.

Our Bank Credit Agreement and some of our subordinated debt instruments have restrictions on our ability to pay dividends.  Under our Bank Credit Agreement, in certain circumstances, we may make unrestricted cash payments as long as our first lien indebtedness ratio does not exceed 3.75 to 1.00.  Once our first lien indebtedness ratio exceeds 3.75 to 1.00, we have the ability to make up to $200.0 million in unrestricted annual cash payments including but not limited to dividends, of which $50.0 million may carry over to the next year, as long as we are in compliance with our first lien indebtedness ratio under the Bank Credit Agreement of 4.00 to 1.00.  In addition, we have an aggregate basket of up to $250.0 million, as long as we are in compliance with our first lien indebtedness ratio of 4.00 to 1.00, and an aggregate basket of $50.0 million, as long as no Event of Default has occurred.  Under the indentures governing the 6.125% Notes, 5.875% Notes, 5.375% Notes, 5.125% Notes, and 5.625% Notes, we are restricted from paying dividends on our common stock unless certain specified conditions are satisfied, including that:

• no event of default then exists under each indenture or certain other specified agreements relating to our indebtedness; and

• after taking into account the dividends payment, we are within certain restricted payment requirements contained in each indenture.

In January 2017, we amended certain terms and extended the maturity date of certain loans under our Bank Credit Agreement. See Note. 6 Notes Payable and Commercial Bank Financing for further discussion.

During 2015, our Board of Directors declared a quarterly dividend of $0.165 per share in the months of February, May, August and November which were paid in March, June, September and December. Total dividend payments for the year ended December 31, 2015 were $0.66 per share.  During 2016, our Board of Directors declared a quarterly dividend of $0.165 per share in the month of February which was paid in March. In May, August, and November our Board of Directors declared a quarterly dividend of $0.18 per share. Total dividend payments for the year ended December 31, 2016 were $0.71 per share. In February 2017, our Board of Directors declared a quarterly dividend of $0.18 per share. Future dividends on our common shares, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions and other factors that the Board of Directors may deem relevant.  The Class A Common Stock and Class B Common Stock holders have the same rights related to dividends.

On March 20, 2014, the Board of Directors approved a $150.0 million share repurchase authorization. On September 6, 2016; the Board of Directors approved an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. During 2016, we repurchased approximately 4.9 million shares of Class A Common Stock for approximately $136.4 million on the open market including transaction costs. As of December 31, 2016, the total remaining authorization was $119.1 million.

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INCOME TAXES

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES:

The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Provision for income taxes	$	122,128		$	57,694		$	97,432
Current provision for income taxes:
Federal	$	113,737		$	80,420		$	92,609
State	2,273			5,720			5,641
	116,010			86,140			98,250
Deferred provision (benefit) for income taxes:
Federal	8,555			(26,637		)	3,170
State	(2,437		)	(1,809		)	(3,988		)
	6,118			(28,446		)	(818		)
Provision for income taxes	$	122,128		$	57,694		$	97,432

The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:

	2016		2015		2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
Adjustments:
State income taxes, net of federal tax benefit (1)	0.2	%	0.6	%	(0.1	)%
Non-deductible items (2)	1.0	%	1.2	%	3.4	%
Domestic Production Activities Deduction	(3.4	)%	(3.9	)%	(3.2	)%
Effect of consolidated VIEs (3)	1.2	%	1.4	%	0.8	%
Changes in unrecognized tax benefits (4)	0.3	%	(1.9	)%	(3.4	)%
Basis in stock of subsidiaries (5)	—	%	(5.5	)%	—	%
Federal Research and Development Credit	(0.4	)%	(1.1	)%	—	%
Other	(0.6	)%	(0.6	)%	(1.0	)%
Effective income tax rate	33.3	%	25.2	%	31.5	%

_______________________________________________________

(1) Included in state income taxes are deferred income tax effects related to certain acquisitions and/or intercompany mergers.

(2) Included in 2014 is the current income taxes related to the taxable gain on sale of certain broadcast assets, which we acquired with the stock purchase of the Allbritton Companies in the same year.  There was no book gain on this sale.  Since a deferred tax liability was not established for the excess of book basis over tax basis of goodwill, a deferred tax benefit does not offset the current tax expense.

(3) Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs.  These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized.

(4) During the year ended December 31, 2016, 2015, and 2014, we recorded a $1.0 million, $5.7 million, and $10.8 million benefit, respectively, related to the release of liabilities for unrecognized tax benefits as a result of expiration of the applicable statute of limitations and settlements with taxing authorities.  See table below which summarizes the activity related to our accrued unrecognized tax benefits.

(5) During the year ended December 31, 2015, we recorded a $12.6 million benefit related to the realization of a capital loss upon the sale of the stock of a subsidiary.

Temporary differences between the financial reporting carrying amounts and the tax bases of assets and liabilities give rise to deferred taxes.  Total deferred tax assets and deferred tax liabilities as of December 31, 2016 and 2015 were as follows (in thousands):

	2016			2015
Deferred Tax Assets:
Net operating and capital losses:
Federal	$	68,455		$	14,884
State	63,630			65,822
Goodwill and intangible assets	28,879			33,979
Other	44,873			37,812
	205,837			152,497
Valuation allowance for deferred tax assets	(51,846		)	(58,333		)
Total deferred tax assets	$	153,991		$	94,164
Deferred Tax Liabilities:
Goodwill and intangible assets	$	(650,139	)	$	(561,812	)
Property & equipment, net	(80,950		)	(76,106		)
Contingent interest obligations	(20,277		)	(30,575		)
Other	(11,942		)	(10,743		)
Total deferred tax liabilities	(763,308		)	(679,236		)
Net deferred tax liabilities	$	(609,317	)	$	(585,072	)

Our remaining federal and state capital and net operating losses will expire during various years from 2017 to 2036, and some of them are subject to annual limitations under the Internal Revenue Code Section 382 and similar state provisions.  As discussed in Income taxes under Note 1. Nature of Operations and Summary of Significant Accounting Policies, we establish valuation allowances in accordance with the guidance related to accounting for income taxes.  As of December 31, 2016, a valuation allowance has been provided for deferred tax assets related to a substantial portion of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that they will be realized in the future.  During the year ended December 31, 2016, we decreased our valuation allowance by $6.5 million to $51.8 million. The reduction in valuation allowance was primarily due to changes in estimates of apportionment and a tax rate reduction in certain states. During the year ended December 31, 2015, we decreased our valuation allowance by $0.6 million to $58.3 million. The reduction in valuation allowance was primarily due to changes in estimates of apportionment for certain states.  During the year ended December 31, 2014, we increased our valuation allowance by $7.8 million to $58.9 million. The increase in valuation allowance was primarily due to intercompany mergers, effective December 31, 2014, which we expected to decrease the utilization of state NOL carryforwards. 

As of December 31, 2016 and 2015, we had $4.7 million and $3.3 million of gross unrecognized tax benefits, respectively.  Of this total, for the years ended December 31, 2016 and 2015, $3.9 and $2.6 million (net of federal effect on state tax issues) represent the amounts of unrecognized tax benefits that, if recognized, would favorably affect our effective tax rates.

The following table summarizes the activity related to our accrued unrecognized tax benefits (in thousands):

	2016			2015			2014
Balance at January 1,	$	3,257		$	7,138		$	16,883
Additions related to prior year tax positions	420			1,458			—
Additions related to current year tax positions	2,053			472			1,450
Reductions related to settlements with taxing authorities	—			(1,517		)	(2,910		)
Reductions related to expiration of the applicable statute of limitations	(991		)	(4,294		)	(8,285		)
Balance at December 31,	$	4,739		$	3,257		$	7,138

In addition, we recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense.  We recognized $0.2 million, $0.2 million, and $0.7 million of income tax expense for interest related to uncertain tax positions for the years ended December 31, 2016, 2015 and 2014, respectively.

We are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions.  All of our 2013 and subsequent federal and state tax returns remain subject to examination by various tax authorities.  Some of our pre-2013 federal and state tax returns may also be subject to examination.  We do not anticipate the resolution of these matters will result in a material change to our consolidated financial statements.  In addition, we don’t believe that our liability for unrecognized tax benefits would be materially impacted, in the next twelve months, as a result of expected statute of limitations expirations, the application of limits under available state administrative practice exceptions, and the resolution of examination issues and settlements with federal and certain state tax authorities.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:

Litigation

We are a party to lawsuits and claims from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. After reviewing developments to date with legal counsel, our management is of the opinion that none of our pending and threatened matters are material. The FCC has undertaken an investigation in response to a complaint it received alleging possible violations of the FCC’s sponsorship identification rules by the Company and certain of its subsidiaries. We cannot predict the outcome of any potential FCC action related to this matter but it is possible that such action could include fines and/or compliance programs.

Operating Leases

We have entered into operating leases for certain property and equipment under terms ranging from one to 40 years.  The rent expense under these leases, as well as certain leases under month-to-month arrangements, for the years ended December 31, 2016, 2015 and 2014 was approximately $26.0 million, $21.7 million and $19.4 million, respectively.

Future minimum payments under the leases are as follows (in thousands):

2017	$	22,627
2018	22,267
2019	20,899
2020	20,177
2021	18,752
2022 and thereafter	92,019
	$	196,741

Changes in the Rules on Television Ownership

Certain of our stations have entered into what have commonly been referred to as local marketing agreements or LMAs.  One typical type of LMA is a programming agreement between two separately owned television stations serving the same market, whereby the licensee of one station programs substantial portions of the broadcast day and sells advertising time during such programming segments on the other licensee’s station subject to the latter licensee’s ultimate editorial and other controls.  We believe these arrangements allow us to reduce our operating expenses and enhance profitability.

In 1999, the FCC established a new local television ownership rule.  LMAs fell under this rule, however, the rule grandfathered LMAs that were entered into prior to November 5, 1996, and permitted the applicable stations to continue operations pursuant to the LMAs until the conclusion of the FCC’s 2004 biennial review.  The FCC stated it would conduct a case-by-case review of grandfathered LMAs and assess the appropriateness of extending the grandfathering periods.  The FCC did not initiate any review of grandfathered LMAs in 2004 or as part of its subsequent quadrennial reviews.  We do not know when, or if, the FCC will conduct any such review of grandfathered LMAs.  Currently, all of our LMAs are grandfathered under the local television ownership rule because they were entered into prior to November 5, 1996. If the FCC were to eliminate the grandfathering of these LMAs, we would have to terminate or modify these LMAs.

In February 2015, the FCC issued an order implementing certain statutorily required changes to its rules governing the duty to negotiate retransmission consent agreements in good faith. With these changes, a television broadcast station is prohibited from negotiating retransmission consent jointly with another television station in the same market unless the “stations are directly or indirectly under common de jure control permitted under the regulations of the Commission.” During a 2015 retransmission consent negotiation, an MVPD filed a complaint with the FCC accusing us of violating this rule. Although we reached agreement with the MVPD and they withdrew their complaint, the FCC undertook its own internal investigation regarding the allegations made by the MVPD and whether we negotiated in good faith as defined by the rules. In order to resolve the issues raised by the investigation described above and all other pending matters before the FCC's Media Bureau (Bureau), the Company, on July 29, 2016, without any admission of liability, entered into a consent decree with the FCC pursuant to which the Bureau agreed (i) to terminate their investigation regarding the retransmission consent negotiations described above as well as any other investigations pending before the Bureau, (ii) to dismiss with prejudice or deny any outstanding adversarial pleadings against the Company pending before the Bureau, (iii) to cancel outstanding forfeiture orders issued by the Bureau relating to the Company, and (iv) to grant all of the Company’s pending license renewals, subject to a payment by the Company to the United States Treasury in the amount of $9.5 million which was paid in September 2016. In addition, pursuant to the terms of the consent decree, the Company agreed to be subject to ongoing compliance monitoring by the FCC for a period of 36 months.

In September 2015, the FCC released a Notice of Proposed Rulemaking in response to a Congressional directive in STELAR to examine the “totality of the circumstances test” for good-faith negotiations of retransmission consent. The proposed rulemaking seeks comment on new factors and evidence to consider in its evaluation of claims of bad faith negotiation, including service interruptions prior to a “marquee sports or entertainment event,” restrictions on online access to broadcast programming during negotiation impasses, broadcasters’ ability to offer bundles of broadcast signals with other broadcast stations or cable networks, and broadcasters’ ability to invoke the FCC’s exclusivity rules during service interruptions. On July 14, 2016, the FCC’s Chairman announced that the FCC would not, at this time, proceed to adopt additional rules governing good faith negotiations of retransmission consent. No formal action has yet been taken on this Proposed Rulemaking, and we cannot predict if the full Commission will agree to terminate the Rulemaking without action.

In August 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of its media ownership rules and issued an order (the "Ownership Order") which left most of the existing multiple ownership rules intact, but amended the rules to provide that, for JSAs where two television stations are located in the same market, and a party with an attributable ownership interest in the second station. The Ownership Order also requires that JSAs that existed prior to March 31, 2014, may remain in place until October 1, 2025, at which point they must be terminated, amended or otherwise come into compliance with the rules. These "grandfathered" JSAs may be transferred or assigned without losing grandfathering status. Among other things, the new JSA rule could limit our future ability to create duopolies or other two-station operations in certain markets. We cannot predict whether we will be able to terminate or restructure such arrangements prior to October 1, 2025, on terms that are as advantageous to us as the current arrangements.  The revenues of these JSA arrangements we earned during the years ended December 31, 2016 and 2015 were $58.6 million and $46.8 million, respectively. The Ownership Order is the subject of an appeal to the U.S. Court of Appeals for the D.C. Circuit and of Petitions for Reconsideration before the FCC. We cannot predict the outcome of that appeal or petitions.

On September 6, 2016, the FCC released an order eliminating the UHF discount (the UHF Discount Order"). The UHF discount allowed television station owners to discount the coverage of UHF stations when calculating compliance with the FCC’s national ownership cap, which prohibits a single entity from owning television stations that reach, in total, more than 39% of all the television households in the nation. All but 28 of the stations we own and operate, or to which we provide programming services are UHF. As a result of the elimination of the UHF discount, counting all our present stations and pending transactions, we reach over 38% of U.S. households (approximately 24% if the UHF discount was still intact). The changes to the national ownership cap could limit our future ability to make television station acquisitions. The UHF Discount Order is the subject of an appeal to the U.S. Court of Appeals for the D.C. Circuit and a Petition for Reconsideration of the UHF Discount Order has also been filed with the FCC. We cannot predict the outcome of the appeal or the Petitions.

If we are required to terminate or modify our LMAs or JSAs, our business could be affected in the following ways:

Losses on investments.  In some cases, we own the non-license assets used by the stations we operate under LMAs and JSAs.  If certain of these arrangements are no longer permitted, we could be forced to sell these assets, restructure our agreements or find another use for them.  If this happens, the market for such assets may not be as good as when we purchased them and, therefore, we cannot be certain of a favorable return on our original investments.

Termination penalties.  If the FCC requires us to modify or terminate existing LMAs or JSAs before the terms of the agreements expire, or under certain circumstances, we elect not to extend the terms of the agreements, we may be forced to pay termination penalties under the terms of some of our agreements.  Any such termination penalties could be material.

Congress authorized the FCC to conduct so-called “incentive auctions” to auction and re-purpose broadcast television spectrum for mobile broadband use. Pursuant to the auction, television broadcasters submitted bids to receive compensation for relinquishing all or a portion of its rights in the television spectrum of their full-service and Class A stations. Low power stations were not eligible to participate in the auction and are not protected and therefore may be displaced or forced to go off the air as a result of the post-auction repacking process. This "reverse" portion of the spectrum auction was completed in early 2017. Based on the bids accepted by the FCC, we anticipate that we will receive later in 2017 an estimated $313.0 million of gross proceeds from the auction. The results of the auction are not expected to produce any material change in operations or results of the Company. In the repacking process associated with the auction, the FCC has reassigned some stations to new post-auction channels. We do not expect reassignment to new channels to have a material impact on our coverage. We received letters from the FCC in February 2017 notifying us that 93 of our stations have been assigned to new channels. The legislation authorizing the incentive auction provides the FCC with a $1.75 billion fund to reimburse reasonable costs incurred by stations that are reassigned to new channels in the repack.

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RELATED PERSON TRANSACTIONS

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

RELATED PERSON TRANSACTIONS

RELATED PERSON TRANSACTIONS:

Transactions with our controlling shareholders

David, Frederick, J. Duncan and Robert Smith (collectively, the controlling shareholders) are brothers and hold substantially all of the Class B Common Stock and some of our Class A Common Stock.  We engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases.  Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders.  Lease payments made to these entities were $5.1 million for the years ended December 31, 2016, 2015, and 2014.

In September 2015, we were granted authority by the Federal Communications Commission (FCC) to operate an experimental facility in the Washington D.C. and Baltimore markets to implement a Single Frequency Network (SFN) using the base elements of the new ATSC 3.0 transmission standard.  In conjunction with this experimental facility, Cunningham Communications, Inc. provides tower space without charge.

Capital leases payable related to the aforementioned relationships consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Capital lease for building, interest at 8.54%	$	1,858		$	3,508
Capital leases for building, interest at 7.93%	317			679
Capital leases for building, interest at 8.11%	6,934			7,432
Capital leases for broadcasting tower facilities, interest at 8.0%	2,396			2,749
Capital leases for broadcasting tower facilities, interest at 9.0%	1,755			1,958
Capital leases for broadcasting tower facilities, interest at 10.5%	4,525			4,690
	17,785			21,016
Less: Current portion	(3,604		)	(3,166		)
	$	14,181		$	17,850

Capital leases payable related to the aforementioned relationships as of December 31, 2016 mature as follows (in thousands):

2017	$	5,061
2018	2,868
2019	2,978
2020	3,093
2021	3,046
2022 and thereafter	7,127
Total minimum payments due	24,173
Less: Amount representing interest	(6,388		)
	$	17,785

Charter Aircraft.  We lease aircraft owned by certain controlling shareholders, including a new lease agreement as of February 2016 for the term of thirty months and will be renewed thereafter for successive terms of twelve months. For all leases, we incurred expenses of $1.4 million for both of the years ended December 31, 2016 and 2015 and $1.5 million for the year ended December 31, 2014.

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; and WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan (collectively, the Cunningham Stations). Certain of our stations provide services to these Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 1. Nature of Operations and Summary of Significant Accounting Policies, for further discussion of the scope of services provided under these types of arrangements.

The estate of Carolyn C. Smith, the mother of our controlling shareholders, currently owns all of the voting stock of the Cunningham Stations. In 2014, Cunningham purchased the remaining amount of non-voting stock from the controlling shareholders, that was previously distributed from the estate for an aggregate purchase price of $2.0 million. The estate of Mrs. Smith currently owns all of the voting stock. The sale of the voting stock by the estate to an unrelated party is pending approval of the FCC. All of the non-voting stock is owned by trusts for the benefit of the children of our controlling shareholders.  We consolidate certain subsidiaries of Cunningham, with which we have variable interests through various arrangements related to the Cunningham Stations discussed further below. 

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2023 and there are two additional 5 years renewal terms remaining with final expiration on July 1, 2033. We also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant us the right to acquire, and grant Cunningham the right to require us to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Our applications to acquire these license related assets are pending FCC approval. Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station’s annual net broadcast revenue and (ii) $4.7 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The remaining aggregate purchase price of these stations as of December 31, 2016 was approximately $53.6 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and a purchase option to acquire for $0.2 million. We paid Cunningham under these agreements, $8.9 million, $8.8 million, and $10.8 million for the years ended December 31, 2016, 2015, and 2014, respectively.

The agreements with WBSF-TV and WGTU-TV/WGTQ-TV expire in November 2021 and August 2023, respectively, and each has renewal provisions for successive eight year periods. We earned $5.4 million, $5.8 million, and $6.0 million from the services we performed for these stations for the years ended December 31, 2016, 2015, and 2014, respectively.

As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported within our consolidated statement of operations. Our consolidated revenues related to the Cunningham Stations include $114.9 million, $109.5 million and $111.3 million for the years ended December 31, 2016, 2015, and 2014, respectively.

In July 2014, concurrent with the Allbritton acquisition we terminated the LMA with WTAT (FOX) in Charleston, SC and sold to Cunningham the non-license assets related to this station. Although we have no continuing involvement in the operations of the station, because we had consolidated Cunningham Broadcasting Corporation (the parent company) up until September 2014 (see Variable Interest Entities under Note 1. Nature of Operations and Summary of Significant Accounting Policies), the assets of WTAT were not derecognized and the transaction wa accounted for a transaction between consolidated entities, and no gain on sale was recognized. Upon deconsolidation of Cunningham Broadcasting Corporation, the difference between proceeds received for the sale of WTAT and WYZZ, a station we sold to Cunningham in 2013, and the carrying values of the net assets, which was previously eliminated in consolidation, was reflected as an increase to additional paid in capital in the consolidated balance sheet.

During January 2016, Cunningham entered into a promissory note to borrow $19.5 million from us which is included within notes receivable from affiliates on our consolidated balance sheet. The note bears interest at a fixed rate of 5.0% per annum, which is payable quarterly, commencing March 31, 2016. The note matures in January 2021, with additional one-year renewal periods upon our approval.

 In April 2016, we entered into an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which they have an LMA that expires in April 2019. Cunningham will pay us an initial fee of $0.7 million and $0.2 million annually for master control services plus the cost to maintain and repair the equipment. Also, in August 2016, we entered into an agreement, expiring October 2021, with Cunningham to provide a news share service with their station in Johnstown, PA beginning in October 2016 for an annual fee of $1.0 million per year.

Atlantic Automotive Corporation

We sold advertising time to and purchased vehicles and related vehicle services from Atlantic Automotive Corporation (Atlantic Automotive), a holding company that owns automobile dealerships and an automobile leasing company.  David D. Smith, our President and Chief Executive Officer until January 1, 2017, and now Executive Chairman, has a controlling interest in, and is a member of the Board of Directors of Atlantic Automotive.  We received payments for advertising totaling $0.6 million for the year ended December 31, 2016, and $0.4 million for both the years ended December 31, 2015 and 2014. Additionally, Atlantic Automotive leases office space owned by one of our non-media investments which is accounted for under equity method. Atlantic Automotive paid $1.1 million, $1.2 million, and $1.0 million in rent during years ended December 31, 2016, 2015, and 2014, respectively.

Leased property by real estate ventures

Certain of our real estate ventures have entered into leases with entities owned by David Smith to lease restaurant space. There are leases for three restaurants in a building owned by one of our consolidated real estate ventures in Baltimore, MD. Total rent received under these leases was $0.7 million, $0.6 million, and $0.5 million for the years ended December 31, 2016, 2015, and 2014, respectively. Additionally, there is also one lease for a restaurant in a building owned by one of our non-media investments which is accounted for under equity method.  Total rent received under this lease was $0.4 million for the year ended December 31, 2016, and $0.3 million for both the years ended December 31, 2015 and 2014.

Payments for services provided by these three restaurants to us was less than $0.1 million for the years ended December 31, 2016, 2015 and 2014.

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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE:

The following table reconciles income (numerator) and shares (denominator) used in our computations of earnings per share for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Income (Numerator)
Net Income	$	250,762		$	176,099		$	215,115
Net income attributable to noncontrolling interests	(5,461		)	(4,575		)	(2,836		)
Numerator for diluted earnings available to common shareholders	$	245,301		$	171,524		$	212,279
Shares (Denominator)
Weighted-average common shares outstanding	93,567			95,003			97,114
Dilutive effect of outstanding stock settled appreciation rights and stock options	866			725			705
Weighted-average common and common equivalent shares outstanding	94,433			95,728			97,819

Potentially dilutive securities which would have an anti-dilutive effect on earnings per share were 0.7 million, 0.1 million, and 0.3 million shares for the years ended December 31, 2016, 2015 and 2014, respectively, and therefore excluded from the diluted effect above. The net earnings per share amounts are the same for Class A and Class B Common Stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.

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SEGMENT DATA

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA:

We measure segment performance based on operating income (loss).  Our broadcast segment, which is our only reportable segment, includes stations in 81 markets located throughout the continental United States. Other primarily consists of original networks and content, digital and internet solutions, technical services and other non-media investments. All of our businesses included in Other are located within the United States. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location.  Other and Corporate are not reportable segments but are included for reconciliation purposes. 

We had approximately $233.3 million and $226.2 million of intercompany loans between broadcast, other and corporate as of December 31, 2016 and 2015, respectively.  We had $24.4 million, $23.1 million, and $20.7 million in intercompany interest expense related to intercompany loans between broadcast, other and corporate for the years ended December 31, 2016, 2015 and 2014, respectively. All other intercompany transactions are immaterial.

Financial information for our reportable segment is included in the following tables for the years ended December 31, 2016, 2015 and 2014 (in thousands):

For the year ended December 31, 2016	Broadcast		Other			Corporate			Consolidated
Revenue	$	2,530,510	$	206,439		$	—		$	2,736,949
Depreciation of property and equipment	91,573		5,772			1,184			98,529
Amortization of definite-lived intangible assets and other assets	155,479		28,316			—			183,795
Amortization of program contract costs and net realizable value adjustments	127,880		—			—			127,880
General and administrative overhead expenses	67,035		2,459			4,062			73,556
Research and development	—		4,085			—			4,085
Operating income (loss)	639,422		(31,258		)	(5,311		)	602,853
Interest expense	5,641		6,371			199,131			211,143
Income from equity and cost method investments	—		1,735			—			1,735
Goodwill	1,933,831		56,915			—			1,990,746
Assets	4,815,633		866,845			280,690			5,963,168
Capital expenditures	78,909		8,084			7,472			94,465

For the year ended December 31, 2015	Broadcast		Other			Corporate			Consolidated
Revenue	$	2,118,021	$	101,115		$	—		$	2,219,136
Depreciation of property and equipment	99,616		2,753			1,064			103,433
Amortization of definite-lived intangible assets and other assets	152,049		9,405			—			161,454
Amortization of program contract costs and net realizable value adjustments	124,619		—			—			124,619
General and administrative overhead expenses	55,848		2,952			5,446			64,246
Research and development	—		12,436			—			12,436
Operating income (loss)	451,015		(21,800		)	(6,479		)	422,736
Interest expense	—		4,955			186,492			191,447
Income from equity and cost method investments	—		964			—			964
Goodwill	1,927,705		3,388			—			1,931,093
Assets	4,838,531		415,278			178,506			5,432,315
Capital expenditures	74,902		8,909			7,610			91,421

For the year ended December 31, 2014	Broadcast		Other			Corporate			Consolidated
Revenue	$	1,904,776	$	71,782		$	—		$	1,976,558
Depreciation of property and equipment	99,823		2,350			1,118			103,291
Amortization of definite-lived intangible assets and other assets	118,654		6,842			—			125,496
Amortization of program contract costs and net realizable value adjustments	106,629		—			—			106,629
General and administrative overhead expenses	55,837		1,315			5,343			62,495
Research and development	—		6,918			—			6,918
Operating income (loss)	511,783		(10,671		)	(6,461		)	494,651
Interest expense	—		4,042			170,820			174,862
Income from equity and cost method investments	—		2,313			—			2,313

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost).  A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value.  The following is a brief description of those three levels:

• Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.  These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The carrying value and fair value of our notes and debentures as of December 31, 2016 and 2015 were as follows (in thousands):

	2016				2015
	Carrying Value (b)		Fair Value		Carrying Value (b)		Fair Value
Level 2:
6.375% Senior Unsecured Notes due 2021 (a)	$	—	$	—	$	350,000	$	367,325
6.125% Senior Unsecured Notes due 2022	500,000		521,240		500,000		512,500
5.875% Senior Unsecured Notes due 2026 (a)	350,000		351,456		—		—
5.625% Senior Unsecured Notes due 2024	550,000		562,755		550,000		539,000
5.375% Senior Unsecured Notes due 2021	600,000		617,892		600,000		605,658
5.125% Senior Unsecured Notes due 2027 (a)	400,000		382,028		—		—
Term Loan A	272,198		271,517		313,620		308,916
Term Loan B	1,365,625		1,364,841		1,376,007		1,365,461
Debt of variable interest entities	23,198		23,198		26,682		26,682
Debt of other non-media related subsidiaries	135,211		135,211		120,969		120,969

(a) During the year ended 2016, we redeemed the 6.375% Notes and issued the 5.875% and 5.125% Notes. See Note 6.Notes Payable and Commercial Bank Financing, for additional information.

(b) Amounts are carried net of debt discount and deferred financing costs, which are excluded in the above table, of $43.4 million and $42.3 million as of December 31, 2016 and 2015.

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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

Sinclair Television Group, Inc. (STG), a wholly-owned subsidiary and the television operating subsidiary of Sinclair Broadcast Group, Inc. (SBG), is the primary obligor under the Bank Credit Agreement, the 5.375% Notes, the 5.625% Notes, 6.125% Notes, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. Our Class A Common Stock and Class B Common Stock as of December 31, 2016, were obligations or securities of SBG and not obligations or securities of STG.  SBG is a guarantor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. As of December 31, 2016, our consolidated total debt of $4,203.8 million included $4,066.8 million of debt related to STG and its subsidiaries of which SBG guaranteed $4,018.0 million.

SBG, KDSM, LLC, a wholly-owned subsidiary of SBG, and STG’s wholly-owned subsidiaries (guarantor subsidiaries), have fully and unconditionally guaranteed, subject to certain customary automatic release provisions, all of STG’s obligations.  Those guarantees are joint and several.  There are certain contractual restrictions on the ability of SBG, STG or KDSM, LLC to obtain funds from their subsidiaries in the form of dividends or loans.

The following condensed consolidating financial statements present the consolidated balance sheets, consolidated statements of operations and comprehensive income, and consolidated statements of cash flows of SBG, STG, KDSM, LLC and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG and the eliminations necessary to arrive at our information on a consolidated basis.

These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10.

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	232,297	$	10,675	$	17,012		$	—		$	259,984
Accounts and other receivables	—		—		478,190		37,024			(1,260		)	513,954
Other current assets	5,561		3,143		124,313		25,406			(27,273		)	131,150
Total current assets	5,561		235,440		613,178		79,442			(28,533		)	905,088
Property and equipment, net	1,820		17,925		570,289		131,326			(3,784		)	717,576
Investment in consolidated subsidiaries	551,250		3,614,605		4,179		—			(4,170,034		)	—
Other long-term assets	46,586		819,506		103,808		169,817			(890,668		)	249,049
Goodwill	—		—		1,986,467		4,279			—			1,990,746
Indefinite-lived intangible assets	—		—		140,597		15,709			—			156,306
Definite-lived intangible assets	—		—		1,770,512		233,368			(59,477		)	1,944,403
Total assets	$	605,217	$	4,687,476	$	5,189,030	$	633,941		$	(5,152,496	)	$	5,963,168
Accounts payable and accrued liabilities	$	100	$	69,118	$	225,645	$	48,815		$	(21,173	)	$	322,505
Current portion of long-term debt	—		55,501		1,851		113,779			—			171,131
Current portion of affiliate long-term debt	1,857		—		1,514		2,336			(2,103		)	3,604
Other current liabilities	—		—		127,967		13,590			(2,324		)	139,233
Total current liabilities	1,957		124,619		356,977		178,520			(25,600		)	636,473
Long-term debt	—		3,939,463		31,014		44,455			—			4,014,932
Affiliate long-term debt	—		—		12,663		396,957			(395,439		)	14,181
Other liabilities	15,277		31,817		1,190,717		183,418			(681,583		)	739,646
Total liabilities	17,234		4,095,899		1,591,371		803,350			(1,102,622		)	5,405,232
Total Sinclair Broadcast Group equity	587,983		591,577		3,597,659		(134,991		)	(4,054,245		)	587,983
Noncontrolling interests in consolidated subsidiaries	—		—		—		(34,418		)	4,371			(30,047		)
Total liabilities and equity	$	605,217	$	4,687,476	$	5,189,030	$	633,941		$	(5,152,496	)	$	5,963,168

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	115,771	$	235	$	33,966		$	—		$	149,972
Accounts and other receivables	—		1,775		390,142		33,949			(1,258		)	424,608
Other current assets	3,648		5,172		99,118		23,278			(4,033		)	127,183
Total current assets	3,648		122,718		489,495		91,193			(5,291		)	701,763
Property and equipment, net	2,884		20,336		559,042		143,667			(8,792		)	717,137
Investment in consolidated subsidiaries	497,262		3,430,434		4,179		—			(3,931,875		)	—
Other long-term assets	52,128		673,915		110,507		140,910			(779,173		)	198,287
Goodwill	—		—		1,926,814		4,279			—			1,931,093
Indefinite-lived intangible assets	—		—		114,841		17,624			—			132,465
Definite-lived intangible assets	—		—		1,602,454		206,975			(57,859		)	1,751,570
Total assets	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315
Accounts payable and accrued liabilities	$	104	$	49,428	$	179,156	$	27,462		$	(4,837	)	$	251,313
Current portion of long-term debt	—		57,640		1,611		106,358			(1,425		)	164,184
Current portion of affiliate long-term debt	1,651		—		1,311		456			(252		)	3,166
Other current liabilities	—		—		103,627		12,713			—			116,340
Total current liabilities	1,755		107,068		285,705		146,989			(6,514		)	535,003
Long-term debt	—		3,594,218		32,743		42,199			—			3,669,160
Affiliate long-term debt	1,857		—		14,240		366,042			(364,289		)	17,850
Other liabilities	26,500		28,866		1,060,211		171,102			(576,055		)	710,624
Total liabilities	30,112		3,730,152		1,392,899		726,332			(946,858		)	4,932,637
Total Sinclair Broadcast Group equity	525,810		517,251		3,414,433		(91,703		)	(3,839,981		)	525,810
Noncontrolling interests in consolidated subsidiaries	—		—		—		(29,981		)	3,849			(26,132		)
Total liabilities and equity	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,579,284		$	265,855		$	(108,190	)	$	2,736,949
Media production expenses	—			—			918,200			135,511			(100,622		)	953,089
Selling, general and administrative	4,062			70,503			489,882			10,804			(106		)	575,145
Depreciation, amortization and other operating expenses	1,064			7,331			465,680			133,810			(2,023		)	605,862
Total operating expenses	5,126			77,834			1,873,762			280,125			(102,751		)	2,134,096
Operating (loss) income	(5,126		)	(77,834		)	705,522			(14,270		)	(5,439		)	602,853
Equity in earnings of consolidated subsidiaries	244,580			463,598			220			—			(708,398		)	—
Interest expense	(238		)	(198,893		)	(4,481		)	(32,521		)	24,990			(211,143		)
Other income (expense)	3,613			(22,867		)	715			(281		)	—			(18,820		)
Total other income (expense)	247,955			241,838			(3,546		)	(32,802		)	(683,408		)	(229,963		)
Income tax benefit (provision)	2,472			99,148			(231,504		)	7,756			—			(122,128		)
Net income (loss)	245,301			263,152			470,472			(39,316		)	(688,847		)	250,762
Net income attributable to the noncontrolling interests	—			—			—			(4,937		)	(524		)	(5,461		)
Net income (loss) attributable to Sinclair Broadcast Group	$	245,301		$	263,152		$	470,472		$	(44,253	)	$	(689,371	)	$	245,301
Comprehensive income (loss)	$	250,789		$	263,179		$	470,472		$	(39,316	)	$	(694,335	)	$	250,789

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,076,851		$	221,633		$	(79,348	)	$	2,219,136
Media production expenses	—			—			725,037			82,450			(74,288		)	733,199
Selling, general and administrative	4,441			58,543			418,885			14,272			(167		)	495,974
Depreciation, amortization and other operating expenses	1,065			3,779			433,690			131,373			(2,680		)	567,227
Total operating expenses	5,506			62,322			1,577,612			228,095			(77,135		)	1,796,400
Operating (loss) income	(5,506		)	(62,322		)	499,239			(6,462		)	(2,213		)	422,736
Equity in earnings of consolidated subsidiaries	170,104			343,183			195			—			(513,482		)	—
Interest expense	(382		)	(180,166		)	(4,658		)	(30,022		)	23,781			(191,447		)
Other income (expense)	4,765			(151		)	269			(2,379		)	—			2,504
Total other income (expense)	174,487			162,866			(4,194		)	(32,401		)	(489,701		)	(188,943		)
Income tax benefit (provision)	2,543			81,626			(146,331		)	4,468			—			(57,694		)
Net income (loss)	171,524			182,170			348,714			(34,395		)	(491,914		)	176,099
Net income attributable to the noncontrolling interests	—			—			—			(4,914		)	339			(4,575		)
Net income (loss) attributable to Sinclair Broadcast Group	$	171,524		$	182,170		$	348,714		$	(39,309	)	$	(491,575	)	$	171,524
Comprehensive income (loss)	$	181,720		$	187,791		$	351,760		$	(39,309	)	$	(500,242	)	$	181,720

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,870,408		$	192,616		$	(86,466	)	$	1,976,558
Media production expenses	—			76			573,725			86,266			(81,380		)	578,687
Selling, general and administrative	4,320			57,799			359,880			14,795			(2,079		)	434,715
Depreciation, amortization and other operating expenses	1,068			5,425			367,514			96,265			(1,767		)	468,505
Total operating expenses	5,388			63,300			1,301,119			197,326			(85,226		)	1,481,907
Operating (loss) income	(5,388		)	(63,300		)	569,289			(4,710		)	(1,240		)	494,651
Equity in earnings of consolidated subsidiaries	211,782			373,228			(201		)	—			(584,809		)	—
Interest expense	(573		)	(163,347		)	(4,869		)	(27,364		)	21,291			(174,862		)
Other income (expense)	4,377			(14,651		)	998			2,024			10			(7,242		)
Total other income (expense)	215,586			195,230			(4,072		)	(25,340		)	(563,508		)	(182,104		)
Income tax benefit (provision)	2,081			83,897			(185,193		)	1,783			—			(97,432		)
Income from discontinued operations, net of tax	—			—			—			—			—			—
Net income (loss)	212,279			215,827			380,024			(28,267		)	(564,748		)	215,115
Net income attributable to the noncontrolling interests	—			—			—			(2,836		)	—			(2,836		)
Net income (loss) attributable to Sinclair Broadcast Group	$	212,279		$	215,827		$	380,024		$	(31,103	)	$	(564,748	)	$	212,279
Comprehensive income (loss)	$	211,759		$	213,284		$	378,926		$	(27,982	)	$	(564,228	)	$	211,759

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(11,784	)	$	(150,230	)	$	721,991		$	7,914		$	23,875		591,766
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,006		)	(82,450		)	(5,009		)	1,000			(94,465		)
Payments for acquisition of television stations	—			—			(415,482		)	(10,375		)	—			(425,857		)
Purchase of alarm monitoring contracts	—			—			—			(40,206		)	—			(40,206		)
Proceeds from sale of assets	—			—			7,263			9,133			—			16,396
Investments in equity and cost method investees	(2,945		)	(15,620		)	(27		)	(32,655		)	—			(51,247		)
Other, net	1,714			(21,395		)	3,985			5,072			—			(10,624		)
Net cash flows (used in) from investing activities	(1,231		)	(45,021		)	(486,711		)	(74,040		)	1,000			(606,003		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			995,000			—			29,912			—			1,024,912
Repayments of notes payable, commercial bank financing and capital leases	—			(650,422		)	(1,633		)	(19,160		)	—			(671,215		)
Dividends paid on Class A and Class B Common Stock	(65,909		)	—			—			—			—			(65,909		)
Repurchase of outstanding Class A Common Stock	(136,283		)	—			—			—			—			(136,283		)
Payments for deferred financing cost	—			(15,430		)	—			(251		)	—			(15,681		)
Noncontrolling interests distributions	—			—			—			(10,464		)	—			(10,464		)
Increase (decrease) in intercompany payables	218,054			(17,778		)	(224,551		)	49,403			(25,128		)	—
Other, net	(2,847		)	407			1,344			(268		)	253			(1,111		)
Net cash flows (used in) from financing activities	13,015			311,777			(224,840		)	49,172			(24,875		)	124,249
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			116,526			10,440			(16,954		)	—			110,012
CASH AND CASH EQUIVALENTS, beginning of period	—			115,771			235			33,966			—			149,972
CASH AND CASH EQUIVALENTS, end of period	$	—		$	232,297		$	10,675		$	17,012		$	—		$	259,984

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(3,759	)	$	(131,363	)	$	530,768		$	(16,864	)	$	24,145		$	402,927
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(6,605		)	(84,079		)	(2,586		)	1,849			(91,421		)
Payments for acquisition of television stations	—			—			(17,011		)	—			—			(17,011		)
Purchase of alarm monitoring contracts	—			—			—			(39,185		)	—			(39,185		)
Proceeds from sale of broadcast assets	—			—			23,650			—			—			23,650
Investments in equity and cost method investees	—			(8,998		)	(27		)	(35,690		)	—			(44,715		)
Other, net	4,598			(5,447		)	575			17,645			—			17,371
Net cash flows (used in) from investing activities	4,598			(21,050		)	(76,892		)	(59,816		)	1,849			(151,311		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			349,562			—			33,325			—			382,887
Repayments of notes payable, commercial bank financing and capital leases	(528		)	(382,691		)	(1,286		)	(10,642		)	—			(395,147		)
Dividends paid on Class A and Class B Common Stock	(62,733		)	—			—			—			—			(62,733		)
Repurchase of outstanding Class A Common Stock	(28,823		)	—			—			—			—			(28,823		)
Payments for deferred financing costs	—			(3,604		)	—			(243		)	—			(3,847		)
Noncontrolling interest distributions	—			—			—			(9,918		)	—			(9,918		)
Increase (decrease) in intercompany payables	89,319			303,755			(452,897		)	85,953			(26,130		)	—
Other, net	1,926			(2,232		)	(1,207		)	(368		)	136			(1,745		)
Net cash flows (used in) from financing activities	(839		)	264,790			(455,390		)	98,107			(25,994		)	(119,326		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			112,377			(1,514		)	21,427			—			132,290
CASH AND CASH EQUIVALENTS, beginning of period	—			3,394			1,749			12,539			—			17,682
CASH AND CASH EQUIVALENTS, end of period	$	—		$	115,771		$	235		$	33,966		$	—		$	149,972

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(26,528	)	$	(145,795	)	$	628,103		$	(35,694	)	$	12,513		$	432,599
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,864		)	(71,152		)	(2,722		)	1,280			(81,458		)
Payments for acquisition of television stations	—			—			(1,485,039		)	—			—			(1,485,039		)
Purchase of alarm monitoring contracts	—			—			—			(27,701		)	—			(27,701		)
Proceeds from sale of broadcast assets	—			—			176,675			—			—			176,675
Decrease in restricted cash	—			11,525			91			—			—			11,616
Investments in equity and cost method investees	—			—			—			(8,104		)	—			(8,104		)
Proceeds from insurance settlement	—			17,042			—			—			—			17,042
Other, net	1,000			—			392			(1,779		)	—			(387		)
Net cash flows (used in) from investing activities	1,000			19,703			(1,379,033		)	(40,306		)	1,280			(1,397,356		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,466,500			507			33,713			—			1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(556		)	(574,584		)	(1,028		)	(6,596		)	—			(582,764		)
Dividends paid on Class A and Class B Common Stock	(61,103		)	—			—			—			—			(61,103		)
Repurchases of outstanding Class A Common Stock	(133,157		)	—			—			—			—			(133,157		)
Payments for deferred financing costs	—			(16,590		)	—			—			—			(16,590		)
Noncontrolling interest distributions	—			—			—			(8,184		)	—			(8,184		)
Increase (decrease) in intercompany payables	218,081			(981,669		)	725,678			51,703			(13,793		)	—
Other, net	2,263			(2,145		)	(1,072		)	4,367			—			3,413
Net cash flows (used in) from financing activities	25,528			(108,488		)	724,085			75,003			(13,793		)	702,335
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(234,580		)	(26,845		)	(997		)	—			(262,422		)
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	3,394		$	1,749		$	12,539		$	—		$	17,682

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QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED):

(In thousands, except per share data)

	For the Quarter Ended
	3/31/2016		6/30/2016		9/30/2016		12/31/2016
Total revenues, net	$	578,889	$	666,534	$	693,835	$	797,691
Operating income	$	86,339	$	129,074	$	153,994	$	233,446
Net income	$	25,629	$	50,600	$	52,033	$	122,500
Net income attributable to Sinclair Broadcast Group	$	24,140	$	49,419	$	50,845	$	120,897
Basic earnings per common share	$	0.25	$	0.52	$	0.54	$	1.34
Diluted earnings per common share	$	0.25	$	0.52	$	0.54	$	1.32

	For the Quarter Ended
	3/31/2015		6/30/2015		9/30/2015		12/31/2015
Total revenues, net	$	504,775	$	554,167	$	548,404	$	611,790
Operating income	$	84,547	$	114,340	$	99,606	$	124,243
Net income	$	24,836	$	46,399	$	44,034	$	60,830
Net income attributable to Sinclair Broadcast Group	$	24,282	$	45,787	$	43,255	$	58,200
Basic earnings per common share	$	0.26	$	0.48	$	0.46	$	0.62
Diluted earnings per common share	$	0.25	$	0.48	$	0.45	$	0.61

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

 Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments.

As of December 31, 2016, our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 173 stations in 81 markets. These stations broadcast 483 channels as of December 31, 2016. For the purpose of this report, these 173 stations and 483 channels are referred to as “our” stations and channels.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and variable interest entities (VIEs) for which we are the primary beneficiary.  Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities.  All intercompany transactions and account balances have been eliminated in consolidation.

Variable Interest Entities

Variable Interest Entities

In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE.  We consolidate VIEs when we are the primary beneficiary.  The assets of each of our consolidated VIEs can only be used to settle the obligations of the VIE.  All the liabilities are non-recourse to us except for certain debt of VIEs which we guarantee.

Third-party station licensees.  Certain of our stations provide services to other station owners within the same respective market, such as LMAs, where we provide programming, sales, operational and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational and administrative services.  In certain cases, we have also entered into purchase agreements or options to purchase, the license related assets of the licensee.  We typically own the majority of the non-license assets of the stations and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee’s acquisition financing.  The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. As of December 31, 2016 and 2015, we have concluded that 37 of these licensees are VIEs, respectively.  Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary of the variable interests because, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and because we absorb losses and returns that would be considered significant to the VIEs.  Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham).  See Note 11. Related Person Transactions for more information about the arrangements with Cunningham. The net revenues of the stations which we consolidate were $310.4 million, $284.4 million and $286.3 million for the years ended December 31, 2016, 2015, and 2014, respectively.  The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities.  Actual results could differ from those estimates.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective.  The new standard will be effective for annual reporting periods beginning after December 15, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We do not currently believe that the adoption of this guidance will have a material impact on our station advertising or retransmission consent revenue; however, we have not finalized our assessment of the impact of this guidance on our consolidated financial statements.

In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. The new standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We adopted this guidance beginning December 31, 2016, which involves adding policies and procedures around our assessments to continue as a going concern.

In February 2015, the FASB issued new guidance that amends the current consolidation guidance on the determination of whether an entity is a variable interest entity.  The new standard is effective for the interim and annual periods beginning after December 15, 2015. We adopted this revised guidance on a modified retrospective basis during the three months ended March 31, 2016. As disclosed under Other investments under Variable Interest Entities above, the adoption of the revised guidance resulted in additional investments in real estate ventures and investment companies being considered VIEs, however we concluded that we were not the primary beneficiary of these investments. The revised guidance did not have any other impact on our consolidation conclusions.

In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This new guidance will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In March 2016, the FASB issued new guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income tax effects, forfeitures, the impact of employee income tax withholdings and classification of certain related items in the statement of cash flows. We early adopted this guidance effective January 1, 2016, which did not have a material effect on the consolidated financial statements. The adoption of the various changes in the guidance were applied as required by the guidance either on the prospective, modified retrospective, or full retrospective basis. As shown in the consolidated statement of stockholders' equity, upon adoption, we recorded a $0.4 million increase to additional paid in capital and a $1.8 million decrease in accumulated deficit, net of taxes, to record the cumulative effect of changing the classification of certain liability awards to equity classification. Additionally, for the years ended December 31, 2015 and 2014, we reclassified $2.2 million and $2.1 million, respectively from net cash flows from operating activities to net cash flows from financing activities in our consolidated statement of cash flows related to cash payments made to taxing authorities on certain employees' behalf for shares withheld.

In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard, which includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flow. The new standard is effective for fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance related to the accounting for income tax consequences of intra-entity transfers of assets other than inventory. Currently the recognition of current and deferred income taxes for an intra-entity are prohibited until the asset has been sold to an outside party. This update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In October 2016, the FASB issued new guidance which relates to related party considerations in the variable interest entities assessment.  The new standard is effective for the interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact of the guidance on our consolidated financial statements.

In November 2016, FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new standard requires that a statement of cash flow explain change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling from period to period as shown on the cash flow. The new standard is effective for the fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for the interim and annual periods beginnings after December 31, 2017. We are currently evaluating the impact of this guidance on our consolidated financial statements.

In January 2017, the FASB issued guidance which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The new standard should be applied prospectively and is effective for the interim and annual periods beginnings after December 31, 2019. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

During 2015, we entered into certain definitive agreements to purchase certain stations, which required certain deposits to be made in escrow accounts.

Restricted Cash

Restricted Cash

During 2015, we entered into certain definitive agreements to purchase certain stations, which required certain deposits to be made in escrow accounts.

Accounts Receivable

Accounts Receivable

Management regularly reviews accounts receivable and determines an appropriate estimate for the allowance for doubtful accounts based upon the impact of economic conditions on the merchant’s ability to pay, past collection experience and such other factors which, in management’s judgment, deserve current recognition.  In turn, a provision is charged against earnings in order to maintain the appropriate allowance level.

Programming

Programming

We have agreements with distributors for the rights to television programming over contract periods, which generally run from one to seven years.  Contract payments are made in installments over terms that are generally equal to or shorter than the contract period.  Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet where the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or estimated net realizable value.  With the exception of one and two-year contracts, amortization of program contract costs is computed using an accelerated method.  Program contract costs are amortized on a straight-line basis for one and two-year contracts.  Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets.  Payments of program contract liabilities are typically made on a scheduled basis and are not affected by adjustments for amortization or estimated net realizable value.

Estimated net realizable values are based on management’s expectation of future advertising revenues, net of sales commissions, to be generated by the program material.  We perform a net realizable value calculation quarterly for each of our program contract costs in accordance with the accounting guidance for the broadcasting industry.  We utilize sales information to estimate the future revenue of each commitment and measure that amount against the commitment.  If the estimated future revenue is less than the amount of the commitment, a loss is recorded in amortization of program contract costs and net realizable value adjustments in the consolidated statements of operations.

Barter Arrangements

Barter Arrangements

Certain program contracts provide for the exchange of advertising airtime in lieu of cash payments for the rights to such programming.  The revenues realized from station barter arrangements are recorded as the programs are aired at the estimated fair value of the advertising airtime given in exchange for the program rights.  Program service arrangements are accounted for as station barter arrangements, however, network affiliation programming is excluded from these calculations.  Revenues are recorded as revenues realized from station barter arrangements and the corresponding expenses are recorded as expenses recognized from station barter arrangements.

We broadcast certain customers’ advertising in exchange for equipment, merchandise and services.  The estimated fair value of the equipment, merchandise or services received is recorded as deferred barter costs and the corresponding obligation to broadcast advertising is recorded as deferred barter revenues.  The deferred barter costs are expensed or capitalized as they are used, consumed or received and are included in station production expenses and station selling, general and administrative expenses, as applicable.  Deferred barter revenues are recognized as the related advertising is aired and are recorded in revenues realized from station barter arrangements.

Other Assets

We have equity and cost method investments primarily in private equity investments and real estate ventures.  In the event that one or more of our investments are significant, we are required to disclose summarized financial information.  For the years ended December 31, 2016, 2015 and 2014, none of our investments were significant individually or in the aggregate.

As of December 31, 2016 and 2015, our unfunded commitments related to private equity investment funds totaled $13.5 million and $22.1 million, respectively.

When factors indicate that there may be a decrease in value of an equity or cost method investment, we assess whether a loss in value has occurred related to the investment.  If that loss is deemed to be other than temporary, an impairment loss is recorded accordingly.  For any investments that indicate a potential impairment, we estimate the fair values of those investments using discounted cash flow models, unrelated third party valuations or industry comparables, based on the various facts available to us.  For the year ended December 31, 2016, we recorded a $2.5 million impairment charge related to one real estate investment. For the year ended December 31, 2015, there were $6.0 million of impairment charges recorded. For the year ended December 31, 2014, no impairment charges were recorded. The impairments are recorded in the income (loss) from equity and cost method investments in our consolidated statement of operations.

Unamortized costs related to debt issuances represent costs related to our revolving credit facility.  Unamortized costs related to our other debt issuances is recorded as a direct deduction from the carrying value of the debt recorded as liability. We amortize our deferred debt financing costs to interest expense over the term of the respective debt instruments using the effective interest method. Previously capitalized debt financing costs are recognized as a loss on extinguishment of debt if we determine that there has been a an extinguishment of the related debt.

Impairment of Goodwill, Intangibles and Other Long-Lived Assets

Impairment of Goodwill, Intangibles and Other Long-Lived Assets

We evaluate our goodwill and indefinite lived intangible assets for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that an impairment may exist. Our goodwill has been allocated to and is tested for impairment at the reporting unit level. A reporting unit is an operating segment or a component of an operating segment to the extent that the component constitutes a business for which discrete financial information is available regularly reviewed by segment management. Components of an operating segment with similar economic characteristics are aggregated when testing goodwill for impairment. Our indefinite-lived intangible assets consist primarily of our broadcast licenses and a trade name.

In the performance of our annual assessment of goodwill for impairment we have the option to qualitatively assess whether it is more likely than not a reporting unit has been impaired.  As part of this qualitative assessment, for each reporting unit, we weigh the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors.  The reporting unit specific factors that we consider include current and forecasted financial performance, the significance of the excess fair value over carrying value in prior quantitative assessments, and any changes to the reporting units’ net book value since the most recent impairment tests.  We also consider whether there were any significant changes in the regulatory environment and business climate of the industry, and whether there were any negative pressures on growth rates and discount rates.

If we conclude that it is more likely than not that a reporting unit is impaired, or if we elect not to perform the optional qualitative assessment, we will apply the quantitative two-step impairment test. In the first step, we determine and compare the fair value of the reporting unit to the net book value of the reporting unit. We estimate the fair value of our reporting units utilizing a combination of a market based approach which considers earnings and cash flow multiples of comparable businesses and recent market transactions as well as an income approach involving the performance of a discounted cash flow analysis. Our discounted cash flow model is based on our judgment of future market conditions based on our internal forecast of future performance, as well as discount rates that are based on a number of factors including market interest rates, a weighted average cost of capital analysis, and includes adjustments for market risk and company specific risk.  If the net book value of the reporting unit were to exceed the fair value, we would then perform the second step of the impairment test, which requires allocation of the reporting unit’s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill to determine the implied fair value. An impairment charge will be recognized only when the implied fair value of a reporting unit’s goodwill is less than its carrying amount.

For our annual impairment test for indefinite-lived intangible assets we have the option to perform a qualitative assessment to determine whether it is more likely than not that these assets are impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the indefinite-lived intangible assets as well as industry and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. The market specific factors that we consider include recent market projections from both independent and internal sources for advertising revenue and operating costs, estimated normal market share and capital expenditures, as well as the significance of the excess fair value over carrying value in prior quantitative assessments. We also consider whether there were any significant changes in the regulatory environment and business climate of the industry, and whether there were any negative pressures on growth rates and discount rates. When evaluating our broadcast licenses for impairment, the qualitative assessment is done at the market level because the broadcast licenses within the market are complementary and together enhance the single broadcast license of each station. If we conclude that it is more likely than not that one of our broadcast licenses is impaired, we will perform a quantitative assessment by comparing the aggregate fair value of the broadcast licenses in the market to the respective carrying values. We estimate the fair values of our broadcast licenses using the Greenfield method which is an income approach. This method involves a discounted cash flow model that incorporates several variables, including, but not limited to, market revenues and long term growth projections, estimated market share for the typical participant without a network affiliation and estimated profit margins based on market size and station type. The model also assumes outlays for capital expenditures, future terminal values, an effective tax rate assumption and a discount rate based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk. If the carrying amount of the broadcast licenses exceeds the fair value, then an impairment loss is recorded to the extent that the carrying value of the broadcast licenses exceeds the fair value.

We periodically evaluate our long-lived assets for impairment and continue to evaluate them as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable.  We evaluate the recoverability of long-lived assets by measuring the carrying amount of the assets against the estimated undiscounted future cash flows associated with them.  At the time that such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are tested for impairment by comparing their estimated fair value to the carrying value.  We typically estimate fair value using discounted cash flow models and appraisals.

Accrued Liabilities

We expense these activities when incurred.

Income Taxes

Income Taxes

We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities.  We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized.  In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies and forecasts of future taxable income.  In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. As of December 31, 2016 and 2015, a valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income.  Future changes in operating and/or taxable income or other changes in facts and circumstances could significantly impact the ability to realize our deferred tax assets which could have a material effect on our consolidated financial statements.

Management periodically performs a comprehensive review of our tax positions and we record a liability for unrecognized tax benefits when such tax positions do not meet the “more-likely-than-not” threshold.  Significant judgment is required in determining whether a tax position meets the “more-likely-than-not” threshold, and it is based on a variety of facts and circumstances, including interpretation of the relevant federal and state income tax codes, regulations, case law and other authoritative pronouncements.  Based on this analysis, the status of ongoing audits and the expiration of applicable statute of limitations, liabilities are adjusted as necessary.  The resolution of audits is unpredictable and could result in tax liabilities that are significantly higher or lower than for what we have provided. 

Revenue Recognition

Revenue Recognition

Total revenues include: (i) station advertising revenue, net of agency commissions; (ii) barter advertising revenues; (iii) retransmission consent fees; (iv) network compensation; (v) other media revenues and (vi) revenues from our other businesses.

Advertising revenues, net of agency commissions, are recognized in the period during which advertisements are placed.

Some of our retransmission consent agreements contain both advertising and retransmission consent elements.  We have determined that these retransmission consent agreements are revenue arrangements with multiple deliverables.  Advertising and retransmission consent deliverables sold under our agreements are separated into different units of accounting at fair value.  Revenue applicable to the advertising element of the arrangement is recognized similar to the advertising revenue policy noted above.  Revenue applicable to the retransmission consent element of the arrangement is recognized over the life of the agreement.

Network compensation revenue is recognized over the term of the contract.  All other significant revenues are recognized as services are provided.

Advertising Expenses

Advertising Expenses

Promotional advertising expenses are recorded in the period when incurred and are included in media production and other non-media expenses.

Financial Instruments

Financial Instruments

Financial instruments, as of December 31, 2016 and 2015, consisted of cash and cash equivalents, trade accounts receivable, accounts payable, accrued liabilities and notes payable.  The carrying amounts approximate fair value for each of these financial instruments, except for the notes payable.

Post-retirement Benefits

Post-retirement Benefits

During the fourth quarter of 2015, we fully settled the benefit obligation of our pension plan. We relieved our benefit obligation via lump sum distributions and/or the purchase of annuity contracts. Upon settlement we recorded $9.3 million of pension expense, including the recognition of $8.0 million of unamortized actuarial loses which was recorded in accumulated other comprehensive income, and $4.6 million of pension liability, representing the underfunded status of our defined pension plan, which was included within other long-term liabilities within our consolidated balance sheet.

We maintain a supplemental executive retirement plan (SERP) which we inherited upon the acquisition of certain stations. As of December 31, 2016, the estimated projected benefit obligation was $21.5 million, of which $1.7 million is included in accrued expenses in the consolidated balance sheet and the $19.8 million is included in other long-term liabilities.  During the years ended December 31, 2016 and 2015, we made $1.7 million and $1.5 million in benefit payments, recognized $0.9 million and $0.9 million of periodic pension expense, reported in other expenses in the consolidated statement of operations, and $0.1 million and $1.0 million of actuarial gains through other comprehensive income, respectively.

At December 31, 2016, the projected benefit obligation was measured using a 3.89% discount rate compared to a discount rate of 4.11% for the year ended December 31, 2015. We estimated its discount rate, in consultation with our independent actuaries, based on a yield curve constructed from a portfolio of high quality bonds for which the timing and amount of cash outflows approximate the estimated payouts of the plan.

Reclassifications

Reclassifications

Certain reclassifications have been made to prior years’ consolidated financial statements to conform to the current year’s presentation.

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of carrying amounts and classification of assets and liabilities of VIEs

As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets as of December 31, 2016 and 2015 were as follows (in thousands):

	2016		2015
ASSETS
CURRENT ASSETS:
Accounts receivable	$	21,879	$	21,719
Other current assets	12,076		14,108
Total current asset	33,955		35,827
PROGRAM CONTRACT COSTS, less current portion	2,468		4,541
PROPERTY AND EQUIPMENT, net	2,996		7,609
GOODWILL	791		787
INDEFINITE-LIVED INTANGIBLE ASSETS	15,684		17,599
DEFINITE-LIVED INTANGIBLE ASSETS, net	79,509		79,086
OTHER ASSETS	6,871		6,924
Total assets	$	142,274	$	152,373
LIABILITIES
CURRENT LIABILITIES:
Other current liabilities	18,992		17,554
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion	19,449		24,594
Program contracts payable, less current portion	14,353		13,679
Other long term liabilities	12,921		8,067
Total liabilities	$	65,715	$	63,894

Schedule of rollforward of the allowance for doubtful accounts

A rollforward of the allowance for doubtful accounts for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Balance at beginning of period	$	4,495		$	4,246		$	3,379
Charged to expense	1,974			1,292			2,186
Net write-offs	(4,345		)	(1,043		)	(1,319		)
Balance at end of period	$	2,124		$	4,495		$	4,246

Schedule of other assets

Other assets as of December 31, 2016 and 2015 consisted of the following (in thousands):

	2016		2015
Equity and cost method investments	$	168,572	$	116,031
Unamortized costs related to debt issuances	4,936		3,663
Other	47,122		55,872
Total other assets	$	220,630	$	175,566

Schedule of accrued liabilities

Accrued liabilities consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016		2015
Compensation and employee health insurance	$	78,682	$	65,364
Interest	41,979		32,788
Deferred revenue	25,692		24,837
Programming related obligations	76,962		54,381
Other accruals relating to operating expenses	99,190		73,943
Total accounts payable and accrued liabilities	$	322,505	$	251,313

Schedule of cash transactions

During 2016, 2015 and 2014, we had the following cash transactions (in thousands):

	2016		2015		2014
Income taxes paid	$	108,347	$	106,979	$	100,986
Income tax refunds	$	12,193	$	196	$	1,407
Interest paid	$	191,117	$	182,425	$	157,349

Schedule of benefits expected to be paid to participants under the Fisher SERP

We estimate that benefits expected to be paid to participants under the SERP as follows (in thousands):

	December 31,
2017	$	1,749
2018	1,669
2019	1,597
2020	1,538
2021	1,479
Next 5 years	6,532

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ACQUISITIONS AND DISPOSITION OF ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of allocated fair value of acquired assets and liabilities assumed

The following tables summarize the allocated fair value of acquired assets and assumed liabilities, including the net assets of consolidated VIEs (in thousands):

	MEG Station			KSNV			Allbritton			Other			Total 2014 acquisitions
Accounts receivable	—			—			38,542			—			38,542
Prepaid expenses and other current assets	476			67			19,890			79			20,512
Program contract costs	1,954			482			1,204			2,561			6,201
Property and equipment	23,462			8,300			46,600			8,352			86,714
Indefinite-lived intangible assets	675			—			13,700			225			14,600
Definite-lived intangible assets	125,925			70,375			564,100			87,915			848,315
Other assets	—			—			20,352			1,500			21,852
Assets held for sale	—			—			83,200			—			83,200
Accounts payable and accrued liabilities	(2,085		)	(277		)	(8,351		)	(1,143		)	(11,856		)
Program contracts payable	(1,914		)	(481		)	(1,140		)	(2,554		)	(6,089		)
Deferred tax liabilities	—			—			(261,291		)	—			(261,291		)
Other long term liabilities	—			(1,200		)	(17,263		)	—			(18,463		)
Fair value of identifiable net assets acquired	148,493			77,266			499,543			96,935			822,237
Goodwill	57,398			41,024			535,694			25,501			659,617
Total	$	205,891		$	118,290		$	1,035,237		$	122,436		$	1,481,854

The following table summarizes the allocated fair value of acquired assets and assumed liabilities of Tennis (in thousands):

Cash	$	5,111
Accounts receivable	17,629
Prepaid expenses and other current assets	6,518
Property and equipment	5,964
Definite-lived intangible assets	272,686
Indefinite-lived intangible assets	23,400
Other assets	619
Accounts payable and accrued liabilities	(7,414		)
Capital leases	(115		)
Deferred tax liability	(16,991		)
Other long term liabilities	(1,669		)
Fair value of identifiable net assets acquired	305,738
Goodwill	53,427
Total	$	359,165

Schedule of allocated to definite-lived intangible assets

The following tables summarize the amounts allocated to definite-lived intangible assets representing the estimated fair values and estimated goodwill deductible for tax purposes (in thousands):

	MEG Stations		KSNV		Allbritton		Other		Total 2014 acquisitions
Network affiliations	$	56,925	$	44,775	$	356,900	$	27,575	$	486,175
Customer relationships	45,500		25,600		207,200		44,800		323,100
Other intangible assets	23,500		—		—		15,540		39,040
Fair value of identifiable definite-lived intangible assets acquired	$	125,925	$	70,375	$	564,100	$	87,915	$	848,315
Estimated definite-lived intangible assets deductible for tax purposes	$	57,398	$	41,024	—		$	25,501	$	123,923

Schedule of acquired operations included in the financial statements

Financial Results of Acquisitions

The following tables summarize the results of the net media revenues and operating income (loss) included in the financial statements of the Company beginning on the acquisition date of each acquisition as listed below (in thousands):

Revenues	2016		2015		2014
Tennis Channel	$	84,040	$	—	$	—
MEG Stations	86,466		69,275		2,299
KSNV	63,818		32,471		5,972
Allbritton	253,845		231,300		106,258
Other stations acquired in:
2016	49,186		—		—
2015	2,676		1,007		—
2014	49,298		42,470		9,172
Total net media revenues	$	589,329	$	376,523	$	123,701

Operating Income (Loss)	2016			2015		2014
Tennis Channel	$	(1,990	)	$	—	$	—
MEG Stations	26,728			15,246		1,010
KSNV	36,446			7,206		2,108
Allbritton	49,777			39,550		26,914
Other stations acquired in:
2016	18,311			—		—
2015	646			426		—
2014	11,644			8,451		1,569
Total operating income	$	141,562		$	70,879	$	31,601

Schedule of unaudited pro forma results of operations

The following table sets forth unaudited pro forma results of operations, assuming that Tennis and the 2014 Acquisitions, along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the acquisitions presented under Other 2016 Acquisitions, 2015 Acquisitions, and Other 2014 Acquisitions above, as they were deemed not material both individually and in the aggregate. The 2014 period does not include the pro forma effects of the Tennis acquisition, and as such will not provide comparability to the 2015 and 2016 pro forma periods presented in the following table (in thousands, except per share data):

	Unaudited
	2016		2015		2014
Total revenues	$	2,751,441	$	2,310,202	$	2,150,124
Net Income	$	249,722	$	168,364	$	189,174
Net Income attributable to Sinclair Broadcast Group	$	244,261	$	163,789	$	186,338
Basic earnings per share attributable to Sinclair Broadcast Group	$	2.61	$	1.72	$	1.92
Diluted earnings per share attributable to Sinclair Broadcast Group	$	2.59	$	1.71	$	1.90

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STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of changes in unvested restricted stock

The following is a summary of changes in unvested restricted stock:

	RSAs		Weighted-Average Price
Unvested shares at December 31, 2015	137,900		$	25.81
2016 Activity:
Granted	96,450		31.40
Vested	(87,375	)	26.32
Unvested shares at December 31, 2016	146,975		29.18

Schedule of assumptions used to estimate the value of SARs

We valued the SARs using the Black-Scholes model and the following assumptions:

	2016		2015		2014
Risk-free interest rate	1.2	%	1.3	%	1.5	%
Expected years until exercise	5 years		5 years		5 years
Expected volatility	42	%	47	%	65	%
Annual dividend yield	2.1	%	2.7	%	2.2	%

Summary of SARS Activity

The following is a summary of the 2016 activity:

	SARs	Weighted- Average Price
Outstanding SARs at December 31, 2015	1,910,000	$	16.68
2016 Activity:
Granted	400,000	31.40
Outstanding SARs at December 31, 2016	2,310,000	19.23

Schedule of Stock Options

The stock options are granted with an exercise price equal to the closing price of the stock on the date of grant and have a 10 year contractual life.

	Options	Weighted- Average Price
Outstanding Options at December 31, 2015	250,000	$	29.95
2016 Activity:
Granted	125,000	33.35
Outstanding Options at December 31, 2016	375,000	31.08

Schedule of assumptions used to estimate the value of stock options under ESPP

	2016		2015		2014
Risk-free interest rate	1.9	%	1.9	%	1.8	%
Expected years to exercise	5 years		5 years		5 years
Expected volatility	37.5	%	42.1	%	47.6	%
Annual dividend yield	2.1	%	2.0	%	2.3	%

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PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Schedule of estimated useful lives

Depreciation is generally computed under the straight-line method over the following estimated useful lives:

Buildings and improvements	10 - 30 years
Station equipment	5 - 10 years
Office furniture and equipment	5 - 10 years
Leasehold improvements	Lesser of 10 - 30 years or lease term
Automotive equipment	3 - 5 years
Property and equipment under capital leases	Lease term

Schedule of property and equipment stated at cost less accumulated depreciation

Property and equipment consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Land and improvements	$	73,124		$	60,678
Real estate held for development and sale	90,087			91,106
Buildings and improvements	239,603			210,597
Station equipment	702,004			667,454
Office furniture and equipment	101,252			85,411
Leasehold improvements	24,762			22,693
Automotive equipment	56,507			47,402
Capital leased assets	84,516			84,474
Construction in progress	30,880			34,666
	1,402,735			1,304,481
Less: accumulated depreciation	(685,159		)	(587,344		)
	$	717,576		$	717,137

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GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The change in the carrying amount of goodwill was as follows (in thousands):

	Broadcast			Other		Consolidated
Balance at December 31, 2014
Goodwill	$	2,377,613		$	513	$	2,378,126
Accumulated impairment losses	(413,573		)	—		(413,573		)
	1,964,040			513		1,964,553
Acquisitions (a)	5,802			—		5,802
Measurement period adjustments related to prior year acquisitions	(42,237		)	—		(42,237		)
Change in assets held for sale (b)	—			2,975		2,975
Balance at December 31, 2015 (c)
Goodwill	2,341,178			3,488		2,344,666
Accumulated impairment losses	(413,573		)	—		(413,573		)
	1,927,605			3,488		1,931,093
Acquisitions (a)	11,626			53,427		65,053
Measurement period adjustments related to prior year acquisitions	40			—		40
Disposition of assets (d)	(5,440		)	—		(5,440		)
Balance at December 31, 2016 (c)
Goodwill	2,347,404			56,915		2,404,319
Accumulated impairment losses	(413,573		)	—		(413,573		)
	$	1,933,831		$	56,915	$	1,990,746

_______________________________________________________

(a) In 2016 and 2015, we acquired goodwill as a result of acquisitions as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) We concluded in 2015 that certain non-media related assets that were classified as assets held for sale as of December 31, 2014 no longer met the held for sale criteria.

(c) Approximately $0.8 million of goodwill relates to consolidated VIEs as of December 31, 2016 and 2015.

(d) Amounts relate to the 2016 sale of broadcast assets as discussed in Note 2. Acquisitions and Disposition of Assets.

Schedule of Indefinite-Lived Intangible Assets

As of December 31, 2016 and 2015, the carrying amount of our indefinite-lived intangible assets was as follows (in thousands):

	Broadcast			Other		Consolidated
Balance at December 31, 2014	$	135,075		$	—	$	135,075
Acquisitions (a)	992			—		992
Sale of assets	(175		)	—		(175		)
Measurement period adjustments related to prior year acquisitions	(3,427		)	—		(3,427		)
Balance at December 31, 2015 (b)	132,465			—		132,465
Acquisitions (a)	2,406			23,400		25,806
Disposition of assets	(1,965		)	—		(1,965		)
Balance at December 31, 2016 (b) (c)	$	132,906		$	23,400	$	156,306

(a) In 2016 and 2015, we acquired indefinite-lived intangible assets as a result of acquisitions as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) Approximately $15.7 million and $17.6 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2016 and 2015, respectively.

Finite-Lived Intangible Assets Amortization

The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in thousands):

	As of December 31, 2016
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Network affiliation (a)	$	1,398,451	$	(427,484	)	$	970,967
Customer Relationships (a)	1,102,591		(294,114		)	808,477
Other (b)	243,253		(78,294		)	164,959
Total	$	2,744,295	$	(799,892	)	$	1,944,403

	As of December 31, 2015
	Gross Carrying Value		Accumulated Amortization			Net
Amortized intangible assets:
Network affiliation (a)	$	1,378,425	$	(343,729	)	$	1,034,696
Customer Relationships (a)	806,727		(225,176		)	581,551
Other (b)	193,594		(58,271		)	135,323
Total	$	2,378,746	$	(627,176	)	$	1,751,570

_______________________________________________________

(a) Changes between the gross carrying value from December 31, 2015 to December 31, 2016, relate to acquisitions in 2016, as discussed in Note 2. Acquisitions and Disposition of Assets.

(b) The increase in other intangible assets is primarily due to the purchase of additional alarm monitoring contracts of $40.2 million

Schedule of estimated amortization expense of the definite-lived intangible assets

The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years (in thousands):

For the year ended December 31, 2017	$	175,942
For the year ended December 31, 2018	174,593
For the year ended December 31, 2019	173,586
For the year ended December 31, 2020	173,006
For the year ended December 31, 2021	171,988
Thereafter	1,075,288
	$	1,944,403

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of notes payable, capital leases and the Bank Credit Agreement

Notes payable, capital leases and the Bank Credit Agreement consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Bank Credit Agreement, Term Loan A	$	272,198		$	313,620
Bank Credit Agreement, Term Loan B	1,365,625			1,379,626
6.375% Senior Unsecured Notes, due 2021	—			350,000
5.375% Senior Unsecured Notes, due 2021	600,000			600,000
6.125% Senior Unsecured Notes, due 2022	500,000			500,000
5.625% Senior Unsecured Notes, due 2024	550,000			550,000
5.875% Senior Unsecured Notes, due 2026	350,000			—
5.125% Senior Unsecured Notes, due 2027	400,000			—
Debt of variable interest entities	23,198			26,682
Debt of other non-media subsidiaries	135,211			120,969
Capital leases	33,280			34,774
Total outstanding principal	4,229,512			3,875,671
Less: Deferred financing costs and discount	(43,449		)	(42,327		)
Less: Current portion	(171,131		)	(164,184		)
Net carrying value of long-term debt	$	4,014,932		$	3,669,160

Capital leases payable related to the aforementioned relationships consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Capital lease for building, interest at 8.54%	$	1,858		$	3,508
Capital leases for building, interest at 7.93%	317			679
Capital leases for building, interest at 8.11%	6,934			7,432
Capital leases for broadcasting tower facilities, interest at 8.0%	2,396			2,749
Capital leases for broadcasting tower facilities, interest at 9.0%	1,755			1,958
Capital leases for broadcasting tower facilities, interest at 10.5%	4,525			4,690
	17,785			21,016
Less: Current portion	(3,604		)	(3,166		)
	$	14,181		$	17,850

Schedule of maturity of indebtedness under the notes payable, capital leases and the Bank Credit Agreement

Indebtedness under the notes payable, capital leases and the Bank Credit Agreement as of December 31, 2016 matures as follows (in thousands):

	Notes and Bank Credit Agreement			Capital Leases			Total
2017	$	169,247		$	4,845		$	174,092
2018	156,562			4,880			161,442
2019	34,674			4,989			39,663
2020	643,068			4,733			647,801
2021	1,372,406			4,759			1,377,165
2022 and thereafter	1,820,275			28,443			1,848,718
Total minimum payments	4,196,232			52,649			4,248,881
Less: Deferred financing costs and discount	(43,449		)	—			(43,449		)
Less: Amount representing future interest	—			(19,369		)	(19,369		)
Net carrying value of debt	$	4,152,783		$	33,280		$	4,186,063

Capital leases payable related to the aforementioned relationships as of December 31, 2016 mature as follows (in thousands):

2017	$	5,061
2018	2,868
2019	2,978
2020	3,093
2021	3,046
2022 and thereafter	7,127
Total minimum payments due	24,173
Less: Amount representing interest	(6,388		)
	$	17,785

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PROGRAM CONTRACTS (Tables)

12 Months Ended

Dec. 31, 2016

PROGRAM CONTRACTS:

Schedule of future payments required under program contracts

Future payments required under program contracts as of December 31, 2016 were as follows (in thousands):

2017	$	109,702
2018	21,844
2019	14,303
2020	10,924
2021	6,765
Total	163,538
Less: Current portion	109,702
Long-term portion of program contracts payable	$	53,836

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Provision for income taxes	$	122,128		$	57,694		$	97,432
Current provision for income taxes:
Federal	$	113,737		$	80,420		$	92,609
State	2,273			5,720			5,641
	116,010			86,140			98,250
Deferred provision (benefit) for income taxes:
Federal	8,555			(26,637		)	3,170
State	(2,437		)	(1,809		)	(3,988		)
	6,118			(28,446		)	(818		)
Provision for income taxes	$	122,128		$	57,694		$	97,432

Schedule of reconciliation of federal income taxes at the applicable statutory rate to the recorded provision from continuing operations

The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision:

	2016		2015		2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
Adjustments:
State income taxes, net of federal tax benefit (1)	0.2	%	0.6	%	(0.1	)%
Non-deductible items (2)	1.0	%	1.2	%	3.4	%
Domestic Production Activities Deduction	(3.4	)%	(3.9	)%	(3.2	)%
Effect of consolidated VIEs (3)	1.2	%	1.4	%	0.8	%
Changes in unrecognized tax benefits (4)	0.3	%	(1.9	)%	(3.4	)%
Basis in stock of subsidiaries (5)	—	%	(5.5	)%	—	%
Federal Research and Development Credit	(0.4	)%	(1.1	)%	—	%
Other	(0.6	)%	(0.6	)%	(1.0	)%
Effective income tax rate	33.3	%	25.2	%	31.5	%

_______________________________________________________

(1) Included in state income taxes are deferred income tax effects related to certain acquisitions and/or intercompany mergers.

(2) Included in 2014 is the current income taxes related to the taxable gain on sale of certain broadcast assets, which we acquired with the stock purchase of the Allbritton Companies in the same year.  There was no book gain on this sale.  Since a deferred tax liability was not established for the excess of book basis over tax basis of goodwill, a deferred tax benefit does not offset the current tax expense.

(3) Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs.  These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized.

(4) During the year ended December 31, 2016, 2015, and 2014, we recorded a $1.0 million, $5.7 million, and $10.8 million benefit, respectively, related to the release of liabilities for unrecognized tax benefits as a result of expiration of the applicable statute of limitations and settlements with taxing authorities.  See table below which summarizes the activity related to our accrued unrecognized tax benefits.

(5) During the year ended December 31, 2015, we recorded a $12.6 million benefit related to the realization of a capital loss upon the sale of the stock of a subsidiary.

Schedule of total deferred tax assets and deferred tax liabilities

Total deferred tax assets and deferred tax liabilities as of December 31, 2016 and 2015 were as follows (in thousands):

	2016			2015
Deferred Tax Assets:
Net operating and capital losses:
Federal	$	68,455		$	14,884
State	63,630			65,822
Goodwill and intangible assets	28,879			33,979
Other	44,873			37,812
	205,837			152,497
Valuation allowance for deferred tax assets	(51,846		)	(58,333		)
Total deferred tax assets	$	153,991		$	94,164
Deferred Tax Liabilities:
Goodwill and intangible assets	$	(650,139	)	$	(561,812	)
Property & equipment, net	(80,950		)	(76,106		)
Contingent interest obligations	(20,277		)	(30,575		)
Other	(11,942		)	(10,743		)
Total deferred tax liabilities	(763,308		)	(679,236		)
Net deferred tax liabilities	$	(609,317	)	$	(585,072	)

Schedule of activity related to accrued unrecognized tax benefits

The following table summarizes the activity related to our accrued unrecognized tax benefits (in thousands):

	2016			2015			2014
Balance at January 1,	$	3,257		$	7,138		$	16,883
Additions related to prior year tax positions	420			1,458			—
Additions related to current year tax positions	2,053			472			1,450
Reductions related to settlements with taxing authorities	—			(1,517		)	(2,910		)
Reductions related to expiration of the applicable statute of limitations	(991		)	(4,294		)	(8,285		)
Balance at December 31,	$	4,739		$	3,257		$	7,138

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COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum payments under the leases

Future minimum payments under the leases are as follows (in thousands):

2017	$	22,627
2018	22,267
2019	20,899
2020	20,177
2021	18,752
2022 and thereafter	92,019
	$	196,741

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RELATED PERSON TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Schedule of capital leases payable related to the aforementioned relationships

Notes payable, capital leases and the Bank Credit Agreement consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Bank Credit Agreement, Term Loan A	$	272,198		$	313,620
Bank Credit Agreement, Term Loan B	1,365,625			1,379,626
6.375% Senior Unsecured Notes, due 2021	—			350,000
5.375% Senior Unsecured Notes, due 2021	600,000			600,000
6.125% Senior Unsecured Notes, due 2022	500,000			500,000
5.625% Senior Unsecured Notes, due 2024	550,000			550,000
5.875% Senior Unsecured Notes, due 2026	350,000			—
5.125% Senior Unsecured Notes, due 2027	400,000			—
Debt of variable interest entities	23,198			26,682
Debt of other non-media subsidiaries	135,211			120,969
Capital leases	33,280			34,774
Total outstanding principal	4,229,512			3,875,671
Less: Deferred financing costs and discount	(43,449		)	(42,327		)
Less: Current portion	(171,131		)	(164,184		)
Net carrying value of long-term debt	$	4,014,932		$	3,669,160

Capital leases payable related to the aforementioned relationships consisted of the following as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Capital lease for building, interest at 8.54%	$	1,858		$	3,508
Capital leases for building, interest at 7.93%	317			679
Capital leases for building, interest at 8.11%	6,934			7,432
Capital leases for broadcasting tower facilities, interest at 8.0%	2,396			2,749
Capital leases for broadcasting tower facilities, interest at 9.0%	1,755			1,958
Capital leases for broadcasting tower facilities, interest at 10.5%	4,525			4,690
	17,785			21,016
Less: Current portion	(3,604		)	(3,166		)
	$	14,181		$	17,850

Schedule of capital leases maturity payable to related to the aforementioned relationships

Indebtedness under the notes payable, capital leases and the Bank Credit Agreement as of December 31, 2016 matures as follows (in thousands):

	Notes and Bank Credit Agreement			Capital Leases			Total
2017	$	169,247		$	4,845		$	174,092
2018	156,562			4,880			161,442
2019	34,674			4,989			39,663
2020	643,068			4,733			647,801
2021	1,372,406			4,759			1,377,165
2022 and thereafter	1,820,275			28,443			1,848,718
Total minimum payments	4,196,232			52,649			4,248,881
Less: Deferred financing costs and discount	(43,449		)	—			(43,449		)
Less: Amount representing future interest	—			(19,369		)	(19,369		)
Net carrying value of debt	$	4,152,783		$	33,280		$	4,186,063

Capital leases payable related to the aforementioned relationships as of December 31, 2016 mature as follows (in thousands):

2017	$	5,061
2018	2,868
2019	2,978
2020	3,093
2021	3,046
2022 and thereafter	7,127
Total minimum payments due	24,173
Less: Amount representing interest	(6,388		)
	$	17,785

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EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Schedule of reconciliation of income (numerator) and shares (denominator) used in computation of diluted earnings per share

The following table reconciles income (numerator) and shares (denominator) used in our computations of earnings per share for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	2016			2015			2014
Income (Numerator)
Net Income	$	250,762		$	176,099		$	215,115
Net income attributable to noncontrolling interests	(5,461		)	(4,575		)	(2,836		)
Numerator for diluted earnings available to common shareholders	$	245,301		$	171,524		$	212,279
Shares (Denominator)
Weighted-average common shares outstanding	93,567			95,003			97,114
Dilutive effect of outstanding stock settled appreciation rights and stock options	866			725			705
Weighted-average common and common equivalent shares outstanding	94,433			95,728			97,819

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SEGMENT DATA (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of segment financial information

Financial information for our reportable segment is included in the following tables for the years ended December 31, 2016, 2015 and 2014 (in thousands):

For the year ended December 31, 2016	Broadcast		Other			Corporate			Consolidated
Revenue	$	2,530,510	$	206,439		$	—		$	2,736,949
Depreciation of property and equipment	91,573		5,772			1,184			98,529
Amortization of definite-lived intangible assets and other assets	155,479		28,316			—			183,795
Amortization of program contract costs and net realizable value adjustments	127,880		—			—			127,880
General and administrative overhead expenses	67,035		2,459			4,062			73,556
Research and development	—		4,085			—			4,085
Operating income (loss)	639,422		(31,258		)	(5,311		)	602,853
Interest expense	5,641		6,371			199,131			211,143
Income from equity and cost method investments	—		1,735			—			1,735
Goodwill	1,933,831		56,915			—			1,990,746
Assets	4,815,633		866,845			280,690			5,963,168
Capital expenditures	78,909		8,084			7,472			94,465

For the year ended December 31, 2015	Broadcast		Other			Corporate			Consolidated
Revenue	$	2,118,021	$	101,115		$	—		$	2,219,136
Depreciation of property and equipment	99,616		2,753			1,064			103,433
Amortization of definite-lived intangible assets and other assets	152,049		9,405			—			161,454
Amortization of program contract costs and net realizable value adjustments	124,619		—			—			124,619
General and administrative overhead expenses	55,848		2,952			5,446			64,246
Research and development	—		12,436			—			12,436
Operating income (loss)	451,015		(21,800		)	(6,479		)	422,736
Interest expense	—		4,955			186,492			191,447
Income from equity and cost method investments	—		964			—			964
Goodwill	1,927,705		3,388			—			1,931,093
Assets	4,838,531		415,278			178,506			5,432,315
Capital expenditures	74,902		8,909			7,610			91,421

For the year ended December 31, 2014	Broadcast		Other			Corporate			Consolidated
Revenue	$	1,904,776	$	71,782		$	—		$	1,976,558
Depreciation of property and equipment	99,823		2,350			1,118			103,291
Amortization of definite-lived intangible assets and other assets	118,654		6,842			—			125,496
Amortization of program contract costs and net realizable value adjustments	106,629		—			—			106,629
General and administrative overhead expenses	55,837		1,315			5,343			62,495
Research and development	—		6,918			—			6,918
Operating income (loss)	511,783		(10,671		)	(6,461		)	494,651
Interest expense	—		4,042			170,820			174,862
Income from equity and cost method investments	—		2,313			—			2,313

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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of carrying value and fair value of notes and debentures

The carrying value and fair value of our notes and debentures as of December 31, 2016 and 2015 were as follows (in thousands):

	2016				2015
	Carrying Value (b)		Fair Value		Carrying Value (b)		Fair Value
Level 2:
6.375% Senior Unsecured Notes due 2021 (a)	$	—	$	—	$	350,000	$	367,325
6.125% Senior Unsecured Notes due 2022	500,000		521,240		500,000		512,500
5.875% Senior Unsecured Notes due 2026 (a)	350,000		351,456		—		—
5.625% Senior Unsecured Notes due 2024	550,000		562,755		550,000		539,000
5.375% Senior Unsecured Notes due 2021	600,000		617,892		600,000		605,658
5.125% Senior Unsecured Notes due 2027 (a)	400,000		382,028		—		—
Term Loan A	272,198		271,517		313,620		308,916
Term Loan B	1,365,625		1,364,841		1,376,007		1,365,461
Debt of variable interest entities	23,198		23,198		26,682		26,682
Debt of other non-media related subsidiaries	135,211		135,211		120,969		120,969

(a) During the year ended 2016, we redeemed the 6.375% Notes and issued the 5.875% and 5.125% Notes. See Note 6.Notes Payable and Commercial Bank Financing, for additional information.

(b) Amounts are carried net of debt discount and deferred financing costs, which are excluded in the above table, of $43.4 million and $42.3 million as of December 31, 2016 and 2015.

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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	232,297	$	10,675	$	17,012		$	—		$	259,984
Accounts and other receivables	—		—		478,190		37,024			(1,260		)	513,954
Other current assets	5,561		3,143		124,313		25,406			(27,273		)	131,150
Total current assets	5,561		235,440		613,178		79,442			(28,533		)	905,088
Property and equipment, net	1,820		17,925		570,289		131,326			(3,784		)	717,576
Investment in consolidated subsidiaries	551,250		3,614,605		4,179		—			(4,170,034		)	—
Other long-term assets	46,586		819,506		103,808		169,817			(890,668		)	249,049
Goodwill	—		—		1,986,467		4,279			—			1,990,746
Indefinite-lived intangible assets	—		—		140,597		15,709			—			156,306
Definite-lived intangible assets	—		—		1,770,512		233,368			(59,477		)	1,944,403
Total assets	$	605,217	$	4,687,476	$	5,189,030	$	633,941		$	(5,152,496	)	$	5,963,168
Accounts payable and accrued liabilities	$	100	$	69,118	$	225,645	$	48,815		$	(21,173	)	$	322,505
Current portion of long-term debt	—		55,501		1,851		113,779			—			171,131
Current portion of affiliate long-term debt	1,857		—		1,514		2,336			(2,103		)	3,604
Other current liabilities	—		—		127,967		13,590			(2,324		)	139,233
Total current liabilities	1,957		124,619		356,977		178,520			(25,600		)	636,473
Long-term debt	—		3,939,463		31,014		44,455			—			4,014,932
Affiliate long-term debt	—		—		12,663		396,957			(395,439		)	14,181
Other liabilities	15,277		31,817		1,190,717		183,418			(681,583		)	739,646
Total liabilities	17,234		4,095,899		1,591,371		803,350			(1,102,622		)	5,405,232
Total Sinclair Broadcast Group equity	587,983		591,577		3,597,659		(134,991		)	(4,054,245		)	587,983
Noncontrolling interests in consolidated subsidiaries	—		—		—		(34,418		)	4,371			(30,047		)
Total liabilities and equity	$	605,217	$	4,687,476	$	5,189,030	$	633,941		$	(5,152,496	)	$	5,963,168

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	115,771	$	235	$	33,966		$	—		$	149,972
Accounts and other receivables	—		1,775		390,142		33,949			(1,258		)	424,608
Other current assets	3,648		5,172		99,118		23,278			(4,033		)	127,183
Total current assets	3,648		122,718		489,495		91,193			(5,291		)	701,763
Property and equipment, net	2,884		20,336		559,042		143,667			(8,792		)	717,137
Investment in consolidated subsidiaries	497,262		3,430,434		4,179		—			(3,931,875		)	—
Other long-term assets	52,128		673,915		110,507		140,910			(779,173		)	198,287
Goodwill	—		—		1,926,814		4,279			—			1,931,093
Indefinite-lived intangible assets	—		—		114,841		17,624			—			132,465
Definite-lived intangible assets	—		—		1,602,454		206,975			(57,859		)	1,751,570
Total assets	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315
Accounts payable and accrued liabilities	$	104	$	49,428	$	179,156	$	27,462		$	(4,837	)	$	251,313
Current portion of long-term debt	—		57,640		1,611		106,358			(1,425		)	164,184
Current portion of affiliate long-term debt	1,651		—		1,311		456			(252		)	3,166
Other current liabilities	—		—		103,627		12,713			—			116,340
Total current liabilities	1,755		107,068		285,705		146,989			(6,514		)	535,003
Long-term debt	—		3,594,218		32,743		42,199			—			3,669,160
Affiliate long-term debt	1,857		—		14,240		366,042			(364,289		)	17,850
Other liabilities	26,500		28,866		1,060,211		171,102			(576,055		)	710,624
Total liabilities	30,112		3,730,152		1,392,899		726,332			(946,858		)	4,932,637
Total Sinclair Broadcast Group equity	525,810		517,251		3,414,433		(91,703		)	(3,839,981		)	525,810
Noncontrolling interests in consolidated subsidiaries	—		—		—		(29,981		)	3,849			(26,132		)
Total liabilities and equity	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315

Schedule of condensed consolidating statement of operations and comprehensive income

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,579,284		$	265,855		$	(108,190	)	$	2,736,949
Media production expenses	—			—			918,200			135,511			(100,622		)	953,089
Selling, general and administrative	4,062			70,503			489,882			10,804			(106		)	575,145
Depreciation, amortization and other operating expenses	1,064			7,331			465,680			133,810			(2,023		)	605,862
Total operating expenses	5,126			77,834			1,873,762			280,125			(102,751		)	2,134,096
Operating (loss) income	(5,126		)	(77,834		)	705,522			(14,270		)	(5,439		)	602,853
Equity in earnings of consolidated subsidiaries	244,580			463,598			220			—			(708,398		)	—
Interest expense	(238		)	(198,893		)	(4,481		)	(32,521		)	24,990			(211,143		)
Other income (expense)	3,613			(22,867		)	715			(281		)	—			(18,820		)
Total other income (expense)	247,955			241,838			(3,546		)	(32,802		)	(683,408		)	(229,963		)
Income tax benefit (provision)	2,472			99,148			(231,504		)	7,756			—			(122,128		)
Net income (loss)	245,301			263,152			470,472			(39,316		)	(688,847		)	250,762
Net income attributable to the noncontrolling interests	—			—			—			(4,937		)	(524		)	(5,461		)
Net income (loss) attributable to Sinclair Broadcast Group	$	245,301		$	263,152		$	470,472		$	(44,253	)	$	(689,371	)	$	245,301
Comprehensive income (loss)	$	250,789		$	263,179		$	470,472		$	(39,316	)	$	(694,335	)	$	250,789

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,076,851		$	221,633		$	(79,348	)	$	2,219,136
Media production expenses	—			—			725,037			82,450			(74,288		)	733,199
Selling, general and administrative	4,441			58,543			418,885			14,272			(167		)	495,974
Depreciation, amortization and other operating expenses	1,065			3,779			433,690			131,373			(2,680		)	567,227
Total operating expenses	5,506			62,322			1,577,612			228,095			(77,135		)	1,796,400
Operating (loss) income	(5,506		)	(62,322		)	499,239			(6,462		)	(2,213		)	422,736
Equity in earnings of consolidated subsidiaries	170,104			343,183			195			—			(513,482		)	—
Interest expense	(382		)	(180,166		)	(4,658		)	(30,022		)	23,781			(191,447		)
Other income (expense)	4,765			(151		)	269			(2,379		)	—			2,504
Total other income (expense)	174,487			162,866			(4,194		)	(32,401		)	(489,701		)	(188,943		)
Income tax benefit (provision)	2,543			81,626			(146,331		)	4,468			—			(57,694		)
Net income (loss)	171,524			182,170			348,714			(34,395		)	(491,914		)	176,099
Net income attributable to the noncontrolling interests	—			—			—			(4,914		)	339			(4,575		)
Net income (loss) attributable to Sinclair Broadcast Group	$	171,524		$	182,170		$	348,714		$	(39,309	)	$	(491,575	)	$	171,524
Comprehensive income (loss)	$	181,720		$	187,791		$	351,760		$	(39,309	)	$	(500,242	)	$	181,720

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,870,408		$	192,616		$	(86,466	)	$	1,976,558
Media production expenses	—			76			573,725			86,266			(81,380		)	578,687
Selling, general and administrative	4,320			57,799			359,880			14,795			(2,079		)	434,715
Depreciation, amortization and other operating expenses	1,068			5,425			367,514			96,265			(1,767		)	468,505
Total operating expenses	5,388			63,300			1,301,119			197,326			(85,226		)	1,481,907
Operating (loss) income	(5,388		)	(63,300		)	569,289			(4,710		)	(1,240		)	494,651
Equity in earnings of consolidated subsidiaries	211,782			373,228			(201		)	—			(584,809		)	—
Interest expense	(573		)	(163,347		)	(4,869		)	(27,364		)	21,291			(174,862		)
Other income (expense)	4,377			(14,651		)	998			2,024			10			(7,242		)
Total other income (expense)	215,586			195,230			(4,072		)	(25,340		)	(563,508		)	(182,104		)
Income tax benefit (provision)	2,081			83,897			(185,193		)	1,783			—			(97,432		)
Income from discontinued operations, net of tax	—			—			—			—			—			—
Net income (loss)	212,279			215,827			380,024			(28,267		)	(564,748		)	215,115
Net income attributable to the noncontrolling interests	—			—			—			(2,836		)	—			(2,836		)
Net income (loss) attributable to Sinclair Broadcast Group	$	212,279		$	215,827		$	380,024		$	(31,103	)	$	(564,748	)	$	212,279
Comprehensive income (loss)	$	211,759		$	213,284		$	378,926		$	(27,982	)	$	(564,228	)	$	211,759

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2016

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(11,784	)	$	(150,230	)	$	721,991		$	7,914		$	23,875		591,766
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,006		)	(82,450		)	(5,009		)	1,000			(94,465		)
Payments for acquisition of television stations	—			—			(415,482		)	(10,375		)	—			(425,857		)
Purchase of alarm monitoring contracts	—			—			—			(40,206		)	—			(40,206		)
Proceeds from sale of assets	—			—			7,263			9,133			—			16,396
Investments in equity and cost method investees	(2,945		)	(15,620		)	(27		)	(32,655		)	—			(51,247		)
Other, net	1,714			(21,395		)	3,985			5,072			—			(10,624		)
Net cash flows (used in) from investing activities	(1,231		)	(45,021		)	(486,711		)	(74,040		)	1,000			(606,003		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			995,000			—			29,912			—			1,024,912
Repayments of notes payable, commercial bank financing and capital leases	—			(650,422		)	(1,633		)	(19,160		)	—			(671,215		)
Dividends paid on Class A and Class B Common Stock	(65,909		)	—			—			—			—			(65,909		)
Repurchase of outstanding Class A Common Stock	(136,283		)	—			—			—			—			(136,283		)
Payments for deferred financing cost	—			(15,430		)	—			(251		)	—			(15,681		)
Noncontrolling interests distributions	—			—			—			(10,464		)	—			(10,464		)
Increase (decrease) in intercompany payables	218,054			(17,778		)	(224,551		)	49,403			(25,128		)	—
Other, net	(2,847		)	407			1,344			(268		)	253			(1,111		)
Net cash flows (used in) from financing activities	13,015			311,777			(224,840		)	49,172			(24,875		)	124,249
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			116,526			10,440			(16,954		)	—			110,012
CASH AND CASH EQUIVALENTS, beginning of period	—			115,771			235			33,966			—			149,972
CASH AND CASH EQUIVALENTS, end of period	$	—		$	232,297		$	10,675		$	17,012		$	—		$	259,984

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(3,759	)	$	(131,363	)	$	530,768		$	(16,864	)	$	24,145		$	402,927
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(6,605		)	(84,079		)	(2,586		)	1,849			(91,421		)
Payments for acquisition of television stations	—			—			(17,011		)	—			—			(17,011		)
Purchase of alarm monitoring contracts	—			—			—			(39,185		)	—			(39,185		)
Proceeds from sale of broadcast assets	—			—			23,650			—			—			23,650
Investments in equity and cost method investees	—			(8,998		)	(27		)	(35,690		)	—			(44,715		)
Other, net	4,598			(5,447		)	575			17,645			—			17,371
Net cash flows (used in) from investing activities	4,598			(21,050		)	(76,892		)	(59,816		)	1,849			(151,311		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			349,562			—			33,325			—			382,887
Repayments of notes payable, commercial bank financing and capital leases	(528		)	(382,691		)	(1,286		)	(10,642		)	—			(395,147		)
Dividends paid on Class A and Class B Common Stock	(62,733		)	—			—			—			—			(62,733		)
Repurchase of outstanding Class A Common Stock	(28,823		)	—			—			—			—			(28,823		)
Payments for deferred financing costs	—			(3,604		)	—			(243		)	—			(3,847		)
Noncontrolling interest distributions	—			—			—			(9,918		)	—			(9,918		)
Increase (decrease) in intercompany payables	89,319			303,755			(452,897		)	85,953			(26,130		)	—
Other, net	1,926			(2,232		)	(1,207		)	(368		)	136			(1,745		)
Net cash flows (used in) from financing activities	(839		)	264,790			(455,390		)	98,107			(25,994		)	(119,326		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			112,377			(1,514		)	21,427			—			132,290
CASH AND CASH EQUIVALENTS, beginning of period	—			3,394			1,749			12,539			—			17,682
CASH AND CASH EQUIVALENTS, end of period	$	—		$	115,771		$	235		$	33,966		$	—		$	149,972

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(26,528	)	$	(145,795	)	$	628,103		$	(35,694	)	$	12,513		$	432,599
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,864		)	(71,152		)	(2,722		)	1,280			(81,458		)
Payments for acquisition of television stations	—			—			(1,485,039		)	—			—			(1,485,039		)
Purchase of alarm monitoring contracts	—			—			—			(27,701		)	—			(27,701		)
Proceeds from sale of broadcast assets	—			—			176,675			—			—			176,675
Decrease in restricted cash	—			11,525			91			—			—			11,616
Investments in equity and cost method investees	—			—			—			(8,104		)	—			(8,104		)
Proceeds from insurance settlement	—			17,042			—			—			—			17,042
Other, net	1,000			—			392			(1,779		)	—			(387		)
Net cash flows (used in) from investing activities	1,000			19,703			(1,379,033		)	(40,306		)	1,280			(1,397,356		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,466,500			507			33,713			—			1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(556		)	(574,584		)	(1,028		)	(6,596		)	—			(582,764		)
Dividends paid on Class A and Class B Common Stock	(61,103		)	—			—			—			—			(61,103		)
Repurchases of outstanding Class A Common Stock	(133,157		)	—			—			—			—			(133,157		)
Payments for deferred financing costs	—			(16,590		)	—			—			—			(16,590		)
Noncontrolling interest distributions	—			—			—			(8,184		)	—			(8,184		)
Increase (decrease) in intercompany payables	218,081			(981,669		)	725,678			51,703			(13,793		)	—
Other, net	2,263			(2,145		)	(1,072		)	4,367			—			3,413
Net cash flows (used in) from financing activities	25,528			(108,488		)	724,085			75,003			(13,793		)	702,335
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(234,580		)	(26,845		)	(997		)	—			(262,422		)
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	3,394		$	1,749		$	12,539		$	—		$	17,682

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QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of the quarterly financial information (unaudited)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED):

(In thousands, except per share data)

	For the Quarter Ended
	3/31/2016		6/30/2016		9/30/2016		12/31/2016
Total revenues, net	$	578,889	$	666,534	$	693,835	$	797,691
Operating income	$	86,339	$	129,074	$	153,994	$	233,446
Net income	$	25,629	$	50,600	$	52,033	$	122,500
Net income attributable to Sinclair Broadcast Group	$	24,140	$	49,419	$	50,845	$	120,897
Basic earnings per common share	$	0.25	$	0.52	$	0.54	$	1.34
Diluted earnings per common share	$	0.25	$	0.52	$	0.54	$	1.32

	For the Quarter Ended
	3/31/2015		6/30/2015		9/30/2015		12/31/2015
Total revenues, net	$	504,775	$	554,167	$	548,404	$	611,790
Operating income	$	84,547	$	114,340	$	99,606	$	124,243
Net income	$	24,836	$	46,399	$	44,034	$	60,830
Net income attributable to Sinclair Broadcast Group	$	24,282	$	45,787	$	43,255	$	58,200
Basic earnings per common share	$	0.26	$	0.48	$	0.46	$	0.62
Diluted earnings per common share	$	0.25	$	0.48	$	0.45	$	0.61

XML

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	Dec. 31, 2016 channel station market
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of television stations owned | station	173
Number of markets | market	81
Number of channels | channel	483

XML

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities, Additional Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) license	Dec. 31, 2015 USD ($) license	Dec. 31, 2014 USD ($)
Variable Interest Entities
Revenue	$ 797,691	$ 693,835	$ 666,534	$ 578,889	$ 611,790	$ 548,404	$ 554,167	$ 504,775	$ 2,736,949	$ 2,219,136	$ 1,976,558
Income from equity and cost method investments									1,735	964	2,313
Capital lease additions										2,800	0
Eliminations
Variable Interest Entities
Revenue									(108,190)	(79,348)	(86,466)
Consolidated VIEs | Eliminations
Variable Interest Entities
Liabilities associated with the certain outsourcing agreements and purchase options	74,500				72,500				74,500	72,500
Consolidated VIEs | Cunningham | Eliminations
Variable Interest Entities
Total payments made under the LMA excluded from liabilities	40,800				37,600				40,800	37,600
Total capital leased assets excluded from VIE consolidation	4,500				4,500				$ 4,500	$ 4,500
Consolidated VIEs, aggregated
Variable Interest Entities
VIE licenses | license									37	37
Revenue									$ 310,400	$ 284,400	286,300
Consolidated VIEs, aggregated | Minimum
Variable Interest Entities
Outsourcing agreement initial term									5 years
VIEs which are not primary beneficiary
Variable Interest Entities
Carrying amount	$ 117,000				$ 18,100				$ 117,000	18,100
Income from equity and cost method investments									$ 2,500	$ 7,700	$ 2,200

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities Balance Sheet Disclosure (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Accounts receivable		$ 513,954	$ 424,608
Other current assets		36,267	26,903
Total current assets		905,088	701,763
PROGRAM CONTRACT COSTS, less current portion		8,919	18,996
PROPERTY AND EQUIPMENT, net		717,576	717,137
GOODWILL		1,990,746	1,931,093	$ 1,964,553
INDEFINITE-LIVED INTANGIBLE ASSETS		156,306	132,465	$ 135,075
DEFINITE-LIVED INTANGIBLE ASSETS, net		1,944,403	1,751,570
OTHER ASSETS		220,630	175,566
Total assets	[1]	5,963,168	5,432,315
CURRENT LIABILITIES:
Other current liabilities		139,233	116,340
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion		4,014,932	3,669,160
Program contracts payable, less current portion		53,836	56,921
Other long-term liabilities		76,493	68,631
Total liabilities	[1]	5,405,232	4,932,637
Consolidated VIEs, aggregated
CURRENT ASSETS:
Accounts receivable		21,879	21,719
Other current assets		12,076	14,108
Total current assets		33,955	35,827
PROGRAM CONTRACT COSTS, less current portion		2,468	4,541
PROPERTY AND EQUIPMENT, net		2,996	7,609
GOODWILL		791	787
INDEFINITE-LIVED INTANGIBLE ASSETS		15,684	17,599
DEFINITE-LIVED INTANGIBLE ASSETS, net		79,509	79,086
OTHER ASSETS		6,871	6,924
Total assets		142,274	152,373
CURRENT LIABILITIES:
Other current liabilities		18,992	17,554
LONG-TERM LIABILITIES:
Notes payable, capital leases and commercial bank financing, less current portion		19,449	24,594
Program contracts payable, less current portion		14,353	13,679
Other long-term liabilities		12,921	8,067
Total liabilities		$ 65,715	$ 63,894

[1] (a) Our consolidated total assets as of December 31, 2016 and 2015 include total assets of variable interest entities (VIEs) of $142.3 million and $152.4 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2016 and 2015 include total liabilities of the VIEs of $40.9 million and $35.6 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of classification change		$ 2,264
Net cash flows from operating activities	$ 591,766	402,927	$ 432,599
Net cash flows from (used in) financing activities	$ 124,249	(119,326)	702,335
Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of classification change		431
Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of classification change		1,833
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net cash flows from operating activities		(2,200)	(2,100)
Net cash flows from (used in) financing activities		2,200	$ 2,100
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of classification change		400
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | Accumulated Deficit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of classification change		$ (1,800)

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash and Accounts Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restricted cash classified as noncurrent		$ 3,700
Rollforward of the allowance for doubtful accounts
Balance at beginning of period	$ 4,495	4,246	$ 3,379
Charged to expense	1,974	1,292	2,186
Net write-offs	(4,345)	(1,043)	(1,319)
Balance at end of period	$ 2,124	$ 4,495	$ 4,246

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Programming and Other Assets (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) investment	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Other Assets
Total other assets	$ 220,630,000	$ 175,566,000
Unfunded commitments related to private equity investment funds	13,500,000	22,100,000
Impairment on investments	$ 2,500,000	6,000,000	$ 0
Number of real estate investments impaired | investment	1
Minimum
Programming
Contract period	1 year
Maximum
Programming
Contract period	7 years
Programming Contracts with One Year Period
Programming
Period of program contracts amortized on straight-line basis	1 year
Programming Contracts with Two Year Periods
Programming
Period of program contracts amortized on straight-line basis	2 years
Other Assets
Other Assets
Equity and cost method investments	$ 168,572,000	116,031,000
Unamortized costs related to debt issuances	4,936,000	3,663,000
Other	47,122,000	55,872,000
Total other assets	$ 220,630,000	$ 175,566,000

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities and Post-retirement Benefits (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Compensation and employee health insurance	$ 78,682	$ 65,364
Interest	41,979	32,788
Deferred revenue	25,692	24,837
Programming related obligations	76,962	54,381
Other accruals relating to operating expenses	99,190	73,943
Total accounts payable and accrued liabilities	$ 322,505	$ 251,313

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplemental Information - Statements of Cash Flows
Income taxes paid	$ 108,347	$ 106,979	$ 100,986
Income tax refunds	12,193	196	1,407
Interest paid	191,117	182,425	157,349
Non- cash transactions
Non-cash transaction property and equipment	$ 5,900
Non-cash transactions related to capital lease obligations		$ 2,800	$ 0
4.875% Notes
Non- cash transactions
Interest rate (as a percent)		4.875%
4.875% Notes | Class A Common Stock
Non- cash transactions
Non-cash conversion, net of tax		$ 8,600

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program and Advertising Expense (Details) - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 06, 2016	Mar. 20, 2014
Share Repurchase Program
Share repurchase program, authorized amount				$ 150,000,000.0	$ 150,000,000.0
Number of shares repurchased	4.9
Value of shares repurchased, gross	$ 136,400,000
Total remaining authorization amount	119,100,000.0
Advertising Expenses
Total advertising expenses	$ 18,500,000	$ 23,900,000	$ 21,300,000

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Postretirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Post-retirement Benefits
Pension expense	$ 9,300
Unamortized actuarial loss	8,000
Liability related to underfunded status of defined benefit pension plan	$ 4,600		$ 4,600
Future expected benefits payment
2017		$ 1,749
2018		1,669
2019		1,597
2020		1,538
2021		1,479
Next 5 years		6,532
Fisher SERP | Fisher
Post-retirement Benefits
Estimated projected benefit obligation		21,500
Benefit payments		1,700	1,500
Periodic pension expense		900	900
Actuarial gain		$ 100	$ 1,000
Discount rate for projected benefit obligation (as a percent)	4.11%	3.89%	4.11%
Fisher SERP | Fisher | Accrued expenses
Post-retirement Benefits
Estimated projected benefit obligation		$ 1,700
Fisher SERP | Fisher | Other long-term liabilities
Post-retirement Benefits
Estimated projected benefit obligation		$ 19,800

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ACQUISITIONS AND DISPOSITION OF ASSETS - Narrative (Details) $ in Thousands				1 Months Ended			12 Months Ended			36 Months Ended
	Dec. 19, 2014 USD ($) station market	Nov. 01, 2014 USD ($)	Aug. 01, 2014 USD ($) station market	Mar. 31, 2016 USD ($)	Dec. 31, 2014 USD ($) station market	Sep. 30, 2014 USD ($)	Dec. 31, 2016 USD ($) station market	Dec. 31, 2015 USD ($) station	Dec. 31, 2014 USD ($) station market	Dec. 31, 2016 USD ($) station market
Acquisitions
Cash paid								$ 15,500		$ 1,872,000
Working capital adjustment										$ 56,300
Amortization period, weighted average useful life							14 years
Number of businesses acquired | station								1
Number of television stations owned | station							173			173
Number of markets | market							81			81
Property and equipment, net							$ 717,576	$ 717,137		$ 717,576
Indefinite-lived intangible assets							156,306	132,465		$ 156,306
Depreciation of property and equipment							98,529	103,433	$ 103,291
Acquisition costs related to legal and other professioanl services							1,400	500	5,700
Tennis Channel
Acquisitions
Cash paid				$ 350,000
Working capital adjustment				9,200
Other Acquisitions In 2016
Acquisitions
Cash paid							72,000
Working capital adjustment							200
Allbritton
Acquisitions
Cash paid			$ 985,000
Working capital adjustment			$ 50,100
Number of television stations owned | station			9
Number of markets | market			7
Interest rate (as a percent)			5.625%
MEG Stations
Acquisitions
Cash paid	$ 207,500
Working capital adjustment	$ 1,600
Number of television stations owned | station	4
Number of markets | market	3
KSNV
Acquisitions
Cash paid		$ 118,500
Working capital adjustment		$ 200
Other Acquisitions in 2014
Acquisitions
Cash paid									123,500
Working capital adjustment					$ 1,100				$ 1,100
Number of television stations owned | station					8				8
Number of markets | market					4				4
WTTA, and KXRMA and KXTU
Acquisitions
Working capital adjustment					$ 600				$ 600
Number of television stations sold | station					2				2
Price of assets sold					$ 93,100				$ 93,100
Gain recognized on sale of broadcast assets					$ 39,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposals in 2016
Acquisitions
Value of consideration given, non-cash							23,800
Gain on sale of broadcast assets							$ 4,400
MEG Stations | WHTM | Allbritton
Acquisitions
Working capital adjustment						$ 200
Price of assets sold						83,400
Payments for non-license assets						$ 14,000
Minimum
Acquisitions
Amortization period							5 years
Maximum
Acquisitions
Amortization period							25 years
Network affiliations
Acquisitions
Amortization period							15 years
Customer relationships
Acquisitions
Amortization period							14 years
Customer relationships | Tennis Channel
Acquisitions
Finite-lived intangible assets acquired				$ 272,700
Amortization period, weighted average useful life				15 years
Other intangible assets | Minimum
Acquisitions
Amortization period, weighted average useful life							14 years
Other intangible assets | Maximum
Acquisitions
Amortization period, weighted average useful life							15 years
Scenario, Adjustment | 2014 Acquisitions
Acquisitions
Property and equipment, net								(12,500)
Indefinite-lived intangible assets								(3,400)
Definite-lived intangible assets								58,300
Decrease to goodwill								(42,200)
Depreciation of property and equipment								(700)
Amortization								$ (700)

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ACQUISITIONS AND DISPOSITION OF ASSETS - Fair Value of Acquired Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Acquisitions
Definite-lived intangible assets				$ 848,315
Goodwill	$ 1,990,746		$ 1,931,093	1,964,553
Tennis Channel
Acquisitions
Cash		$ 5,111
Accounts receivable		17,629
Prepaid expenses and other current assets		6,518
Property and equipment		5,964
Definite-lived intangible assets		272,686
Indefinite-lived intangible assets		23,400
Other assets		619
Accounts payable and accrued liabilities		(7,414)
Capital leases		(115)
Deferred tax liability		(16,991)
Other long term liabilities		(1,669)
Fair value of identifiable net assets acquired		305,738
Goodwill		53,427
Total		$ 359,165
MEG Stations
Acquisitions
Accounts receivable				0
Prepaid expenses and other current assets				476
Program contract costs				1,954
Property and equipment				23,462
Indefinite-lived intangible assets				675
Definite-lived intangible assets				125,925
Other assets				0
Assets held for sale				0
Accounts payable and accrued liabilities				(2,085)
Program contracts payable				(1,914)
Deferred tax liabilities				0
Other long term liabilities				0
Fair value of identifiable net assets acquired				148,493
Goodwill				57,398
Total				205,891
KSNV
Acquisitions
Accounts receivable				0
Prepaid expenses and other current assets				67
Program contract costs				482
Property and equipment				8,300
Indefinite-lived intangible assets				0
Definite-lived intangible assets				70,375
Other assets				0
Assets held for sale				0
Accounts payable and accrued liabilities				(277)
Program contracts payable				(481)
Deferred tax liabilities				0
Other long term liabilities				(1,200)
Fair value of identifiable net assets acquired				77,266
Goodwill				41,024
Total				118,290
Allbritton
Acquisitions
Accounts receivable				38,542
Prepaid expenses and other current assets				19,890
Program contract costs				1,204
Property and equipment				46,600
Indefinite-lived intangible assets				13,700
Definite-lived intangible assets				564,100
Other assets				20,352
Assets held for sale				83,200
Accounts payable and accrued liabilities				(8,351)
Program contracts payable				(1,140)
Deferred tax liabilities				(261,291)
Other long term liabilities				(17,263)
Fair value of identifiable net assets acquired				499,543
Goodwill				535,694
Total				1,035,237
Other Acquisitions in 2014
Acquisitions
Accounts receivable				0
Prepaid expenses and other current assets				79
Program contract costs				2,561
Property and equipment				8,352
Indefinite-lived intangible assets				225
Definite-lived intangible assets				87,915
Other assets				1,500
Assets held for sale				0
Accounts payable and accrued liabilities				(1,143)
Program contracts payable				(2,554)
Deferred tax liabilities				0
Other long term liabilities				0
Fair value of identifiable net assets acquired				96,935
Goodwill				25,501
Total				122,436
2014 Acquisitions
Acquisitions
Accounts receivable				38,542
Prepaid expenses and other current assets				20,512
Program contract costs				6,201
Property and equipment				86,714
Indefinite-lived intangible assets				14,600
Definite-lived intangible assets				848,315
Other assets				21,852
Assets held for sale				83,200
Accounts payable and accrued liabilities				(11,856)
Program contracts payable				(6,089)
Deferred tax liabilities				(261,291)
Other long term liabilities				(18,463)
Fair value of identifiable net assets acquired				822,237
Goodwill				659,617
Total				$ 1,481,854

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ACQUISITIONS AND DISPOSITION OF ASSETS - Amounts Allocated to Definite-lived Intangible Assets (Details) $ in Thousands	Dec. 31, 2014 USD ($)
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	$ 848,315
Estimated definite-lived intangible assets deductible for tax purposes	123,923
Network affiliations
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	486,175
Customer relationships
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	323,100
Other intangible assets
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	39,040
2014 Acquisitions
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	848,315
MEG Stations
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	125,925
Estimated definite-lived intangible assets deductible for tax purposes	57,398
MEG Stations | Network affiliations
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	56,925
MEG Stations | Customer relationships
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	45,500
MEG Stations | Other intangible assets
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	23,500
KSNV
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	70,375
Estimated definite-lived intangible assets deductible for tax purposes	41,024
KSNV | Network affiliations
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	44,775
KSNV | Customer relationships
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	25,600
KSNV | Other intangible assets
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	0
Allbritton
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	564,100
Estimated definite-lived intangible assets deductible for tax purposes	0
Allbritton | Network affiliations
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	356,900
Allbritton | Customer relationships
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	207,200
Allbritton | Other intangible assets
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	0
Other Acquisitions in 2014
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	87,915
Estimated definite-lived intangible assets deductible for tax purposes	25,501
Other Acquisitions in 2014 | Network affiliations
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	27,575
Other Acquisitions in 2014 | Customer relationships
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	44,800
Other Acquisitions in 2014 | Other intangible assets
Acquisitions
Fair value of identifiable definite-lived intangible assets acquired	$ 15,540

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ACQUISITIONS AND DISPOSITION OF ASSETS - Acquired Operations Included in the Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Acquisitions
Operating income (loss)	$ 233,446	$ 153,994	$ 129,074	$ 86,339	$ 124,243	$ 99,606	$ 114,340	$ 84,547	$ 602,853	$ 422,736	$ 494,651
Tennis Channel
Acquisitions
Revenue broadcast division									84,040	0	0
Operating income (loss)									(1,990)	0	0
MEG Stations
Acquisitions
Revenue broadcast division									86,466	69,275	2,299
Operating income (loss)									26,728	15,246	1,010
KSNV
Acquisitions
Revenue broadcast division									63,818	32,471	5,972
Operating income (loss)									36,446	7,206	2,108
Allbritton
Acquisitions
Revenue broadcast division									253,845	231,300	106,258
Operating income (loss)									49,777	39,550	26,914
Other Acquisitions In 2016
Acquisitions
Revenue broadcast division									49,186
Operating income (loss)									18,311
Other Acquisitions in 2015
Acquisitions
Revenue broadcast division									2,676	1,007
Operating income (loss)									646	426
Other Acquisitions in 2014
Acquisitions
Revenue broadcast division									49,298	42,470	9,172
Operating income (loss)									11,644	8,451	1,569
Total Acquisitions
Acquisitions
Revenue broadcast division									589,329	376,523	123,701
Operating income (loss)									$ 141,562	$ 70,879	$ 31,601

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ACQUISITIONS AND DISPOSITION OF ASSETS - Pro Forma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Pro Forma Information
Total revenues	$ 2,751,441	$ 2,310,202	$ 2,150,124
Net Income	249,722	168,364	189,174
Net Income attributable to Sinclair Broadcast Group	$ 244,261	$ 163,789	$ 186,338
Basic earnings per share attributable to Sinclair Broadcast Group (in dollars per share)	$ 2.61	$ 1.72	$ 1.92
Diluted earnings per share attributable to Sinclair Broadcast Group (in dollars per share)	$ 2.59	$ 1.71	$ 1.90

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STOCK-BASED COMPENSATION PLANS (Details) - USD ($)				1 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Based Compensation Plans
STOCK-BASED COMPENSATION PLANS:
Compensation expense					$ 16,900,000	$ 18,000,000	$ 13,900,000
ESPP
STOCK-BASED COMPENSATION PLANS:
Number of shares reserved for award	3,200,000				3,200,000
Compensation expense					$ 900,000	700,000	700,000
Number of shares available for future grant	995,349				995,349
ESPP | Maximum
STOCK-BASED COMPENSATION PLANS:
Percentage of the fair market value of common stock as of the first day of the quarter or on last day of the quarter					85.00%
RSAs
STOCK-BASED COMPENSATION PLANS:
Compensation expense					$ 2,800,000	5,300,000	3,200,000
Unrecognized compensation expense	$ 1,700,000				$ 1,700,000
Unrestricted shares granted (in shares)					96,450
Stock Grants | Non Employee Director
STOCK-BASED COMPENSATION PLANS:
Compensation expense					$ 600,000	$ 600,000	$ 400,000
Unrestricted shares granted (in shares)					20,000	20,000	12,000
SARs
STOCK-BASED COMPENSATION PLANS:
SAR's granted (in shares)					400,000
SAR's outstanding (in shares)	2,310,000	1,910,000			2,310,000	1,910,000
SAR's outstanding intrinsic value	$ 32,600,000				$ 32,600,000
SAR's remaining contractual life					6 years 29 days
SARs | LTIP | President and Chief Executive Officer
STOCK-BASED COMPENSATION PLANS:
Compensation expense					$ 4,000,000	$ 2,600,000	$ 2,600,000
SAR's granted (in shares)					400,000	310,000	200,000
SAR's granted	$ 31.40	$ 24.93	$ 27.86		$ 31.40	$ 24.93	$ 27.86
SAR's vesting period					10 years
Stock Options
STOCK-BASED COMPENSATION PLANS:
Compensation expense	$ 500,000	$ 800,000	$ 1,100,000		$ 400,000	$ 800,000	$ 1,500,000
Number of options to be granted annually				125,000
Weighted average remaining contractual life of options				10 years
Stock Options | Maximum
STOCK-BASED COMPENSATION PLANS:
Aggregate intrinsic value of options				$ 20,000,000
401 (K) Plan
STOCK-BASED COMPENSATION PLANS:
Maximum match as a percentage of elective deferrals by eligible employees					50.00%
Maximum match as a percentage of employee's total cash compensation					4.00%
Compensation expense relating to match					$ 6,900,000	6,200,000	5,200,000
Number of shares reserved for matches	3,000,000				3,000,000
Number of shares available for future grants	410,119				410,119
Subsidiary Stock Awards
STOCK-BASED COMPENSATION PLANS:
Compensation expense					$ 1,300,000	$ 1,800,000	$ 200,000
Class A Common Stock | LTIP
STOCK-BASED COMPENSATION PLANS:
Number of shares reserved for award	14,000,000				14,000,000
Number of shares (including forfeited shares) available for future grants	7,111,609				7,111,609
Award Date, 2016 | RSAs | LTIP
STOCK-BASED COMPENSATION PLANS:
Vesting period					2 years
Percentage of restriction to be lapsed in year one from grant date					50.00%
Percentage of restriction to be lapsed in year two from grant date					50.00%
Award Date, 2015 | RSAs | LTIP
STOCK-BASED COMPENSATION PLANS:
Vesting period					2 years
Percentage of restriction to be lapsed in year one from grant date					50.00%
Percentage of restriction to be lapsed in year two from grant date					50.00%
Award Date, 2014 | RSAs | LTIP
STOCK-BASED COMPENSATION PLANS:
Vesting period					2 years
Percentage of restriction to be lapsed in year one from grant date					50.00%
Percentage of restriction to be lapsed in year two from grant date					50.00%

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STOCK-BASED COMPENSATION PLANS - Changes in Unvested Restricted Stock (Details) - RSAs	12 Months Ended
	Dec. 31, 2016 $ / shares shares
RSAs
Unvested shares at the beginning of the period (in shares) | shares	137,900
Granted (in shares) | shares	96,450
Vested (in shares) | shares	(87,375)
Unvested shares at the end of the period (in shares) | shares	146,975
Weighted-Average Price
Unvested shares at the beginning of the period (in dollars per share) | $ / shares	$ 25.81
Granted (in dollars per share) | $ / shares	31.40
Vested (in dollars per share) | $ / shares	26.32
Unvested shares at the end of the period (in dollars per share) | $ / shares	$ 29.18

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STOCK-BASED COMPENSATION PLANS - SAR's Value Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Options
Assumptions used in valuation
Risk-free interest rate (as a percent)	1.90%	1.90%	1.80%
Expected years to exercise	5 years	5 years	5 years
Expected volatility (as a percent)	37.50%	42.10%	47.60%
Annual dividend yield (as a percent)	2.10%	2.00%	2.30%
SARs
Assumptions used in valuation
Risk-free interest rate (as a percent)	1.20%	1.30%	1.50%
Expected years to exercise	5 years	5 years	5 years
Expected volatility (as a percent)	42.00%	47.00%	65.00%
Annual dividend yield (as a percent)	2.10%	2.70%	2.20%

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STOCK-BASED COMPENSATION PLANS - Summary of SAR Activity (Details) - SARs	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Stock Grants and SARs
Outstanding at the beginning of the year (in shares) | shares	1,910,000
Granted (in shares) | shares	400,000
Outstanding at the end of the year (in shares) | shares	2,310,000
Weighted-Average Price
Outstanding at the beginning of the year (in dollars per share) | $ / shares	$ 16.68
Granted (in dollars per share) | $ / shares	31.40
Outstanding at the end of the year (in dollars per share) | $ / shares	$ 19.23

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STOCK-BASED COMPENSATION PLANS - Changes in Stock Options (Details)	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Options (in shares):
Options outstanding, beginning balance (in shares) | shares	250,000
Granted (in shares) | shares	125,000
Options outstanding, ending balance (in shares) | shares	375,000
Weighted-Average Price (in dollars per share):
Options outstanding, weighted average price, beginning balance (in dollars per share) | $ / shares	$ 29.95
Options granted, weighted average price (in dollars per share) | $ / shares	33.35
Options outstanding, weighted average price, ending balance (in dollars per share) | $ / shares	$ 31.08

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STOCK-BASED COMPENSATION PLANS - Inputs to Model the Value of Options Granted (Details) - Stock Options	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assumptions used in valuation
Risk-free interest rate (as a percent)	1.90%	1.90%	1.80%
Expected years to exercise	5 years	5 years	5 years
Expected volatility (as a percent)	37.50%	42.10%	47.60%
Annual dividend yield (as a percent)	2.10%	2.00%	2.30%

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PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment
Property and equipment, gross	$ 1,402,735	$ 1,304,481
Less: accumulated depreciation	(685,159)	(587,344)
Property, Plant and Equipment, Net, Total	717,576	717,137
Capital lease depreciation expense	4,200	3,900	$ 3,700
Land and improvements
Property and equipment
Property and equipment, gross	73,124	60,678
Real estate held for development and sale
Property and equipment
Property and equipment, gross	90,087	91,106
Buildings and improvements
Property and equipment
Property and equipment, gross	$ 239,603	210,597
Buildings and improvements | Minimum
Property and equipment
Estimated useful lives	10 years
Buildings and improvements | Maximum
Property and equipment
Estimated useful lives	30 years
Station equipment
Property and equipment
Property and equipment, gross	$ 702,004	667,454
Station equipment | Minimum
Property and equipment
Estimated useful lives	5 years
Station equipment | Maximum
Property and equipment
Estimated useful lives	10 years
Office furniture and equipment
Property and equipment
Property and equipment, gross	$ 101,252	85,411
Office furniture and equipment | Minimum
Property and equipment
Estimated useful lives	5 years
Office furniture and equipment | Maximum
Property and equipment
Estimated useful lives	10 years
Leasehold improvements
Property and equipment
Property and equipment, gross	$ 24,762	22,693
Leasehold improvements | Minimum
Property and equipment
Estimated useful lives	10 years
Leasehold improvements | Maximum
Property and equipment
Estimated useful lives	30 years
Automotive equipment
Property and equipment
Property and equipment, gross	$ 56,507	47,402
Automotive equipment | Minimum
Property and equipment
Estimated useful lives	3 years
Automotive equipment | Maximum
Property and equipment
Estimated useful lives	5 years
Capital leased assets
Property and equipment
Property and equipment, gross	$ 84,516	84,474
Construction in progress
Property and equipment
Property and equipment, gross	$ 30,880	$ 34,666

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GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Change in the carrying amount of goodwill related to continuing operations
Goodwill	$ 2,344,666	$ 2,378,126
Accumulated impairment losses	(413,573)	(413,573)
Goodwill, net	1,931,093	1,964,553
Acquisitions	65,053	5,802
Measurement period adjustments related to prior year acquisitions	40	(42,237)
Change in assets held for sale		2,975
Disposition of assets	(5,440)
Goodwill	2,404,319	2,344,666
Accumulated impairment losses	(413,573)	(413,573)
Goodwill, net	1,990,746	1,931,093
VIEs which are not primary beneficiary
Change in the carrying amount of goodwill related to continuing operations
Goodwill, net	800
Goodwill, net	800	800
Broadcast
Change in the carrying amount of goodwill related to continuing operations
Goodwill	2,341,178	2,377,613
Accumulated impairment losses	(413,573)	(413,573)
Goodwill, net	1,927,605	1,964,040
Acquisitions	11,626	5,802
Measurement period adjustments related to prior year acquisitions	40	(42,237)
Change in assets held for sale		0
Disposition of assets	(5,440)
Goodwill	2,347,404	2,341,178
Accumulated impairment losses	(413,573)	(413,573)
Goodwill, net	1,933,831	1,927,605
Other
Change in the carrying amount of goodwill related to continuing operations
Goodwill	3,488	513
Accumulated impairment losses	0	0
Goodwill, net	3,488	513
Acquisitions	53,427	0
Measurement period adjustments related to prior year acquisitions	0	0
Change in assets held for sale		2,975
Disposition of assets	0
Goodwill	56,915	3,488
Accumulated impairment losses	0	0
Goodwill, net	$ 56,915	$ 3,488

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GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Broadcast Licenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Carrying amount of our broadcast licenses
Beginning balance	$ 132,465	$ 135,075
Acquisitions	25,806	992
Sale of assets	(1,965)	(175)
Measurement period adjustments related to prior year acquisitions		(3,427)
Ending balance	156,306	132,465
Consolidated VIEs
Carrying amount of our broadcast licenses
Beginning balance	17,600
Ending balance	15,700	17,600
Broadcast
Carrying amount of our broadcast licenses
Beginning balance	132,465	135,075
Acquisitions	2,406	992
Sale of assets	(1,965)	(175)
Measurement period adjustments related to prior year acquisitions		(3,427)
Ending balance	132,906	132,465
Other
Carrying amount of our broadcast licenses
Beginning balance	0	0
Acquisitions	23,400	0
Sale of assets	0	0
Measurement period adjustments related to prior year acquisitions		0
Ending balance	$ 23,400	$ 0

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GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Additional Information (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) reporting_unit	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Amortized intangible assets:
Number of reporting units | reporting_unit	1
Amortization period, weighted average useful life	14 years
Impairment of Intangible Assets, Finite-lived	$ 0	$ 0	$ 0
Amortization of definite-lived intangible assets and other assets	$ 183,795,000	161,454,000	125,496,000
Minimum
Amortized intangible assets:
Amortization period	5 years
Maximum
Amortized intangible assets:
Amortization period	25 years
Broadcast licenses
Amortized intangible assets:
Impairment charge	$ 0	$ 0	3,200,000
Carrying value of broadcast licenses			21,100,000
Fair value of broadcast licenses			$ 17,900,000

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GOODWILL, INDEFINTE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Definite Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Amortized intangible assets:
Gross Carrying Amount	$ 2,744,295	$ 2,378,746
Accumulated Amortization	(799,892)	(627,176)
Finite-lived intangible assets, net	1,944,403	1,751,570
Assets acquired in acquisition	25,806	992
Estimated amortization expense of the definite-lived intangible assets
For the year ended December 31, 2017	175,942
For the year ended December 31, 2018	174,593
For the year ended December 31, 2019	173,586
For the year ended December 31, 2020	173,006
For the year ended December 31, 2021	171,988
Thereafter	1,075,288
Finite-lived intangible assets, net	1,944,403	1,751,570
Network affiliations
Amortized intangible assets:
Gross Carrying Amount	1,398,451	1,378,425
Accumulated Amortization	(427,484)	(343,729)
Finite-lived intangible assets, net	970,967	1,034,696
Estimated amortization expense of the definite-lived intangible assets
Finite-lived intangible assets, net	970,967	1,034,696
Customer relationships
Amortized intangible assets:
Gross Carrying Amount	1,102,591	806,727
Accumulated Amortization	(294,114)	(225,176)
Finite-lived intangible assets, net	808,477	581,551
Estimated amortization expense of the definite-lived intangible assets
Finite-lived intangible assets, net	808,477	581,551
Other intangible assets
Amortized intangible assets:
Gross Carrying Amount	243,253	193,594
Accumulated Amortization	(78,294)	(58,271)
Finite-lived intangible assets, net	164,959	135,323
Estimated amortization expense of the definite-lived intangible assets
Finite-lived intangible assets, net	164,959	$ 135,323
Alarm monitoring contract
Amortized intangible assets:
Assets acquired in acquisition	$ 40,200

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Bank Credit Agreement (Details) - USD ($)		1 Months Ended	12 Months Ended
	Jul. 19, 2016	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Bank Credit Agreement
Debt Instrument [Line Items]
Aggregate borrowings outstanding			$ 1,624,500,000
Deferred financing costs			10,500,000
Unamortized debt discount			2,800,000
Interest and amortization expense			54,400,000	$ 53,000,000	$ 38,000,000
Deferred financing costs related to amendment			$ 2,000,000	3,600,000	$ 3,800,000
Unrestricted cash first lien indebtedness ratio			4.25
Threshold percentage of aggregate broadcast cash flows used for defining material third-party licensees			20.00%
Term Loan | Term Loan A
Debt Instrument [Line Items]
Outstanding loan amount			$ 272,198,000	$ 313,620,000
Weighted average effective interest rate (as a percent)			2.72%	2.47%
Term Loan | Term Loan A | LIBOR
Debt Instrument [Line Items]
Description of variable rate basis			LIBOR
Term Loan | Term Loan A | Bank Credit Agreement
Debt Instrument [Line Items]
Deferred financing costs			$ 1,200,000
Debt issuance costs	$ 2,700,000		2,400,000
Amortization of financing costs	300,000
Outstanding loan amount				$ 312,100,000
Term Loan | Term Loan A Maturing July 2021 | Bank Credit Agreement
Debt Instrument [Line Items]
Long-term debt	139,500,000
Outstanding loan amount			$ 130,100,000
Term Loan | Term Loan A Maturing July 2021 | Bank Credit Agreement | LIBOR
Debt Instrument [Line Items]
Interest rate margin (as a percent)			2.25%
Term Loan | Term Loan A Maturing April 2018 | Bank Credit Agreement
Debt Instrument [Line Items]
Long-term debt	$ 153,500,000
Outstanding loan amount			$ 140,900,000
Term Loan | Term Loan A Maturing April 2018 | Bank Credit Agreement | LIBOR
Debt Instrument [Line Items]
Interest rate margin (as a percent)			2.25%
Term Loan | Term Loan B
Debt Instrument [Line Items]
Outstanding loan amount			$ 1,365,625,000	$ 1,379,626,000
Weighted average effective interest rate (as a percent)			3.53%	3.54%
Term Loan | Term Loan B | Bank Credit Agreement
Debt Instrument [Line Items]
Deferred financing costs			$ 9,300,000	$ 11,400,000
Unamortized debt discount			2,800,000	3,600,000
Outstanding loan amount			$ 1,353,500,000	$ 1,364,600,000
Term Loan | Term Loan B | Bank Credit Agreement | LIBOR
Debt Instrument [Line Items]
Description of variable rate basis			LIBOR
Interest rate margin (as a percent)			2.25%
Line of credit
Debt Instrument [Line Items]
Weighted average effective interest rate (as a percent)			2.98%	2.38%
Line of credit | Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate borrowings outstanding			$ 0
Maximum borrowing capacity			485,200,000	$ 485,200,000.0
Remaining borrowing capacity			$ 483,300,000	$ 482,900,000
Line of credit | Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Description of variable rate basis			LIBOR
Interest rate margin (as a percent)			2.25%
Line of credit | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Undrawn commitments fees (as a percent)			0.25%
Line of credit | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Undrawn commitments fees (as a percent)			0.50%
Line of credit | Letter of Credit
Debt Instrument [Line Items]
Aggregate borrowings outstanding			$ 1,900,000
Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, Prepayment Premium, Percent		1.00%

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Senior Notes (Details) - USD ($)								3 Months Ended		12 Months Ended
	Aug. 30, 2016	Aug. 15, 2016	Mar. 23, 2016	Oct. 15, 2014	Jul. 23, 2014	Apr. 02, 2013	Oct. 12, 2012	Sep. 30, 2016	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Aug. 31, 2016	Mar. 31, 2016	Oct. 12, 2013
Debt Instrument [Line Items]
(Gain) loss on extinguishment of debt										$ (23,699,000)	$ 0	$ (14,553,000)
Repayments of notes payable, commercial bank financing and capital leases										$ 671,215,000	$ 395,147,000	582,764,000
Senior Notes | 5.125% Senior Unsecured Notes due 2027
Debt Instrument [Line Items]
Debt instrument, face amount	$ 400,000,000
Interest rate (as a percent)	5.125%										5.125%		5.125%
Weighted average effective interest rate (as a percent)										5.33%
Debt issuance costs	$ 6,600,000
Debt redemption price percentage (as percent)	100.00%
Interest and amortization expense										$ 6,900,000
Outstanding loan amount										400,000,000	$ 0
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)	100.00%
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)	35.00%
Senior Notes | 6.375% Senior Unsecured Notes due 2021
Debt Instrument [Line Items]
Interest rate (as a percent)		6.375%											6.375%
Interest and amortization expense										14,800,000	22,300,000	22,400,000
Outstanding loan amount		$ 350,000,000								$ 0	$ 350,000,000
Extinguishment of debt amount		$ 377,200,000
(Gain) loss on extinguishment of debt								$ (23,700,000)
Write off of deferred debt issuance cost								3,900,000
Prepayment penalty								$ 19,800,000
Senior Notes | 5.875% Senior Unsecured Notes due 2026
Debt Instrument [Line Items]
Debt instrument, face amount			$ 350,000,000
Interest rate (as a percent)			5.875%								5.875%			5.875%
Percentage of par value at which debt was issued			100.00%
Weighted average effective interest rate (as a percent)										6.10%
Debt issuance costs			$ 5,900,000
Interest and amortization expense										$ 15,800,000
Outstanding loan amount										$ 350,000,000	$ 0
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)			100.00%
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)			35.00%
Senior Notes | 5.625% Senior Unsecured Notes. due 2024
Debt Instrument [Line Items]
Debt instrument, face amount					$ 550,000,000
Interest rate (as a percent)					5.625%						5.625%
Percentage of par value at which debt was issued					100.00%
Weighted average effective interest rate (as a percent)										5.83%
Interest and amortization expense										$ 30,900,000	$ 30,900,000	13,600,000
Senior Notes | 5.625% Senior Unsecured Notes. due 2024 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)					100.00%
Senior Notes | 5.625% Senior Unsecured Notes. due 2024 | Debt Instrument, Redemption, Period Two | Maximum
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)					35.00%
Senior Notes | 5.375% Senior Unsecured Notes due 2021
Debt Instrument [Line Items]
Debt instrument, face amount						$ 600,000,000
Interest rate (as a percent)						5.375%					5.375%
Percentage of par value at which debt was issued						100.00%
Weighted average effective interest rate (as a percent)										5.58%
Interest and amortization expense											$ 32,300,000	32,300,000
Outstanding loan amount										$ 600,000,000	$ 600,000,000
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)						100.00%
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)						35.00%
Senior Notes | 6.125% Senior Unsecured Notes due 2022
Debt Instrument [Line Items]
Debt instrument, face amount							$ 500,000,000
Interest rate (as a percent)							6.125%				6.125%				6.125%
Percentage of par value at which debt was issued															100.00%
Weighted average effective interest rate (as a percent)										6.31%
Interest and amortization expense										$ 30,600,000	$ 30,600,000	30,600,000
Outstanding loan amount										500,000,000	500,000,000
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)							100.00%
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt redemption price percentage (as percent)							35.00%
Senior Notes | 8.375% Senior Unsecured Notes, due 2018
Debt Instrument [Line Items]
Interest rate (as a percent)				8.375%
Interest and amortization expense												15,700,000
(Gain) loss on extinguishment of debt									$ (14,600,000)
Face amount of debt redeemed				$ 237,500,000.0
Accrued and unpaid interest and make-whole premium				9,900,000
Repayments of notes payable, commercial bank financing and capital leases				$ 257,400,000
Debt of other non-media related subsidiaries
Debt Instrument [Line Items]
Interest and amortization expense										$ 5,900,000	$ 3,800,000	3,100,000
Fixed interest rate (as a percent)										6.50%
Debt of other non-media related subsidiaries | LIBOR
Debt Instrument [Line Items]
Description of variable rate basis											LIBOR
Interest rate margin (as a percent)											2.50%
Debt of variable interest entities
Debt Instrument [Line Items]
Interest and amortization expense										$ 900,000	$ 1,700,000	$ 2,200,000
Outstanding loan amount										23,000,000
Deferred financing costs										$ 200,000
Description of variable rate basis										LIBOR
Interest rate margin (as a percent)										2.50%

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Schedule of Notes Payable, Capital Leases and Bank Credit Agreement (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Aug. 15, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Capital Lease Obligations	$ 33,280		$ 34,774
Total outstanding principal	4,229,512		3,875,671
Less: Deferred financing costs and discount	(43,449)		(42,327)
Less: Current portion	(171,131)		(164,184)
Long-term debt	4,014,932		3,669,160
Notes and Bank Credit Agreement
Debt Instrument [Line Items]
Less: Deferred financing costs and discount	(43,449)
Debt of variable interest entities
Debt Instrument [Line Items]
Outstanding loan amount	23,198		26,682
Debt of other non-media related subsidiaries
Debt Instrument [Line Items]
Outstanding loan amount	135,211		120,969
Term Loan | Term Loan A
Debt Instrument [Line Items]
Outstanding loan amount	272,198		313,620
Term Loan | Term Loan B
Debt Instrument [Line Items]
Outstanding loan amount	1,365,625		1,379,626
Senior Notes | 6.375% Senior Unsecured Notes due 2021
Debt Instrument [Line Items]
Outstanding loan amount	0	$ 350,000	350,000
Senior Notes | 5.375% Senior Unsecured Notes due 2021
Debt Instrument [Line Items]
Outstanding loan amount	600,000		600,000
Senior Notes | 6.125% Senior Unsecured Notes due 2022
Debt Instrument [Line Items]
Outstanding loan amount	500,000		500,000
Senior Notes | 5.625% Senior Unsecured Notes due 2024
Debt Instrument [Line Items]
Outstanding loan amount	550,000		550,000
Senior Notes | 5.875% Senior Unsecured Notes due 2026
Debt Instrument [Line Items]
Outstanding loan amount	350,000		0
Senior Notes | 5.125% Senior Unsecured Notes due 2027
Debt Instrument [Line Items]
Outstanding loan amount	$ 400,000		$ 0

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Schedule of Indebtedness Under Notes Payable, Capital Leases and the Bank Credit Agreement (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
2017	$ 174,092
2018	161,442
2019	39,663
2020	647,801
2021	1,377,165
2022 and thereafter	1,848,718
Net carrying value of debt	4,248,881
Less: Deferred financing costs and discount	(43,449)	$ (42,327)
Less: Amount representing future interest	19,369
Net carrying value of debt	4,186,063
Capital Leases
Debt Instrument [Line Items]
2017	4,845
2018	4,880
2019	4,989
2020	4,733
2021	4,759
2022 and thereafter	28,443
Net carrying value of debt	52,649
Less: Amount representing future interest	19,369
Net carrying value of debt	33,280
Notes and Bank Credit Agreement
Debt Instrument [Line Items]
2017	169,247
2018	156,562
2019	34,674
2020	643,068
2021	1,372,406
2022 and thereafter	1,820,275
Net carrying value of debt	4,196,232
Less: Deferred financing costs and discount	(43,449)
Net carrying value of debt	$ 4,152,783

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NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Capital Lease Obligation and Interest Expense (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 29, 2016	Dec. 31, 2016 USD ($) lease	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Capital leases, term	30 months
Term of renewal options	12 months
Interest expense | $		$ 211,143	$ 191,447	$ 174,862
Amortization of debt issuance costs and discounts | $		$ 10,800	9,700	9,300
Broadcast
Debt Instrument [Line Items]
Number of capital leases | lease		32
Tower leases
Debt Instrument [Line Items]
Capital leases, term		16 years
Tower leases | Broadcast
Debt Instrument [Line Items]
Number of capital leases | lease		24
Equipment lease
Debt Instrument [Line Items]
Capital leases, term		5 years
Capital leased assets | Minimum
Debt Instrument [Line Items]
Term of renewal options		5 years
Capital leased assets | Maximum
Debt Instrument [Line Items]
Term of renewal options		10 years
Operating segments
Debt Instrument [Line Items]
Number of capital leases | lease		6
Operating segments | Broadcast
Debt Instrument [Line Items]
Interest expense | $		$ 5,641	$ 0	$ 0

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PROGRAM CONTRACTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Future payments required under program contracts
2017	$ 109,702
2018	21,844
2019	14,303
2020	10,924
2021	6,765
Total	163,538
Less: Current portion	109,702	$ 108,260
Long-term portion of program contracts payable	$ 53,836	$ 56,921
Lag period for film payments	3 months
Program contract payments due in arrears	$ 27,300
Non-cancelable commitments for future program rights	$ 150,900

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COMMON STOCK (Details)	1 Months Ended									12 Months Ended
	Feb. 28, 2017 $ / shares	Nov. 30, 2016 $ / shares	Aug. 31, 2016 $ / shares	May 31, 2016 $ / shares	Feb. 29, 2016 $ / shares	Nov. 30, 2015 $ / shares	Aug. 31, 2015 $ / shares	May 31, 2015 $ / shares	Feb. 28, 2015 $ / shares	Dec. 31, 2016 USD ($) vote $ / shares shares	Dec. 31, 2015 $ / shares shares	Dec. 31, 2014 $ / shares	Sep. 06, 2016 USD ($)	Aug. 30, 2016	Mar. 31, 2016	Mar. 23, 2016	Jul. 23, 2014	Mar. 20, 2014 USD ($)	Oct. 12, 2013	Apr. 02, 2013	Oct. 12, 2012
Common Stock
Quarterly dividend declared (in dollars per share) | $ / shares		$ 0.18	$ 0.18	$ 0.18	$ 0.165	$ 0.165	$ 0.165	$ 0.165	$ 0.165	$ 0.71	$ 0.66	$ 0.63
Dividend paid (in dollars per share) | $ / shares											$ 0.66
Share repurchase program, authorized amount													$ 150,000,000.0					$ 150,000,000.0
Number of shares repurchased | shares										4,900,000
Value of shares repurchased, gross										$ 136,400,000
Total remaining authorization amount										$ 119,100,000.0
Subsequent Event
Common Stock
Quarterly dividend declared (in dollars per share) | $ / shares	$ 0.18
Class A Common Stock
Common Stock
Number of votes holders of common stock are entitled for each share held | vote										1
Class B Common Stock
Common Stock
Number of votes holders of common stock are entitled for each share held | vote										10
Number of Class B shares converted into Class A Common stock | shares										257,673	0
Senior Notes | 6.125% Senior Unsecured Notes due 2022
Common Stock
Interest rate (as a percent)											6.125%								6.125%		6.125%
Senior Notes | 5.875% Senior Unsecured Notes due 2026
Common Stock
Interest rate (as a percent)											5.875%				5.875%	5.875%
Senior Notes | 5.375% Senior Unsecured Notes due 2021
Common Stock
Interest rate (as a percent)											5.375%									5.375%
Senior Notes | 5.125% Senior Unsecured Notes due 2027
Common Stock
Interest rate (as a percent)			5.125%								5.125%			5.125%
Senior Notes | 5.625% Senior Unsecured Notes. due 2024
Common Stock
Interest rate (as a percent)											5.625%						5.625%
Bank Credit Agreement
Common Stock
Unrestricted cash first lien indebtedness ratio										4.25
Bank Credit Agreement | First Lien Indebtedness Ratio, 3.75 | Maximum
Common Stock
Unrestricted cash first lien indebtedness ratio										3.75
Bank Credit Agreement | First Lien Indebtedness Ratio, 3.75-4.00
Common Stock
Unrestricted cash first lien indebtedness ratio										4.00
Amount of unrestricted annual cash payments (up to)										$ 200,000,000
Amount of unrestricted annual cash payments to be carry over to next year										50,000,000
Additional aggregate basket (up to)										250,000,000
Aggregate basket as long as no Event										$ 50,000,000

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INCOME TAXES - Schedule of Provision (benefit) for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 122,128	$ 57,694	$ 97,432
Current provision for income taxes:
Federal	113,737	80,420	92,609
State	2,273	5,720	5,641
Current income tax expense (benefit)	116,010	86,140	98,250
Deferred provision (benefit) for income taxes:
Federal	8,555	(26,637)	3,170
State	(2,437)	(1,809)	(3,988)
Deferred income tax expense (benefit)	6,118	(28,446)	(818)
Provision for income taxes	$ 122,128	$ 57,694	$ 97,432

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INCOME TAXES - Federal Tax Rate Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of federal income taxes at the applicable statutory rate to the recorded provision from continuing operations
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%
State income taxes, net of federal tax benefit (as a percent)	0.20%	0.60%	(0.10%)
Non-deductible items (as a percent)	1.00%	1.20%	3.40%
Domestic production activities deduction (as a percent)	(3.40%)	(3.90%)	(3.20%)
Effect of consolidated VIEs (as a percent)	1.20%	1.40%	0.80%
Changes in unrecognized tax benefits (as a percent)	0.30%	(1.90%)	(3.40%)
Basis in stock subsidiaries (as a percent)	0.00%	(5.50%)	0.00%
Federal research and development credit (as a percent)	(0.40%)	(1.10%)	(0.00%)
Other (as a percent)	(0.60%)	(0.60%)	(1.00%)
Effective income tax rate (as a percent)	33.30%	25.20%	31.50%
Reductions related to expiration of the applicable statute of limitations	$ 1.0	$ 5.7	$ 10.8
Tax benefit realized, sale of stock of subsidiary		$ 12.6

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INCOME TAXES - Deferred Taxes Temporary Difference (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net operating and capital losses:
Federal	$ 68,455	$ 14,884
State	63,630	65,822
Goodwill and intangible assets	28,879	33,979
Other	44,873	37,812
Deferred tax assets, Gross	205,837	152,497
Valuation allowance for deferred tax assets	(51,846)	(58,333)	$ (58,900)
Total deferred tax assets	153,991	94,164
Deferred Tax Liabilities:
Goodwill and intangible assets	(650,139)	(561,812)
Property & equipment, net	(80,950)	(76,106)
Contingent interest obligations	(20,277)	(30,575)
Other	(11,942)	(10,743)
Total deferred tax liabilities	(763,308)	(679,236)
Net deferred tax liabilities	(609,317)	(585,072)
Valuation allowance
Increase (decrease) in valuation allowance	(6,500)	(600)	7,800
Unrecognized tax benefits
Gross unrecognized tax benefits	4,739	3,257	$ 7,138	$ 16,883
Unrecognized tax benefits that would favorably affect entity's effective tax rates from continuing operations, if recognized	$ 3,900	$ 2,600

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INCOME TAXES - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at the beginning of the period	$ 3,257	$ 7,138	$ 16,883
Additions related to prior year tax positions	420	1,458	0
Additions related to current year tax positions	2,053	472	1,450
Reductions related to settlements with taxing authorities	0	(1,517)	(2,910)
Reductions related to expiration of the applicable statute of limitations	(991)	(4,294)	(8,285)
Balance at the end of the period	4,739	3,257	7,138
Accrued interest and penalties related to unrecognized tax benefits	$ 200	$ 200	$ 700

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COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Leases
Rent expense from continuing operations under leases	$ 26,000	$ 21,700	$ 19,400
Future minimum payments under the leases
2017	22,627
2018	22,267
2019	20,899
2020	20,177
2021	18,752
2022 and thereafter	92,019
Total	$ 196,741
Minimum
Operating Leases
Operating leases term	1 year
Maximum
Operating Leases
Operating leases term	40 years

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COMMITMENTS AND CONTINGENCIES - Network Affiliation Agreements (Details) $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended
	Feb. 28, 2017 USD ($) station	Dec. 31, 2016 USD ($) station	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) station	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 06, 2016 station	Jul. 29, 2016 USD ($)
Loss Contingencies [Line Items]
Revenue | $		$ 797,691	$ 693,835	$ 666,534	$ 578,889	$ 611,790	$ 548,404	$ 554,167	$ 504,775		$ 2,736,949	$ 2,219,136	$ 1,976,558
FCC nation ownership cap, % of domestic households reached														39.00%
Number of television stations owned | station		173									173
LMA
Loss Contingencies [Line Items]
Number of separately owned television stations having programming agreement | station											2
Number of stations that programs substantial portions of the broadcast day and sells advertising time to programming segments | station											1
JSA
Loss Contingencies [Line Items]
Revenue | $											$ 58,600	$ 46,800
FCC Consent Decree Settlement
Loss Contingencies [Line Items]
Loss contingency accrual | $															$ 9,500
Loss contingency period for ongoing compliance monitoring											36 months
Number of television stations owned | station														28
Loss contingency, % of domestic households reached														38.00%
Loss contingency, % of domestic households reached, UHR discount applied														24.00%
Subsequent Event
Loss Contingencies [Line Items]
Number of stations assigned new channels | station	93
Total legislation funds to reimburse stations | $	$ 1,750,000
Scenario, Forecast | Subsequent Event
Loss Contingencies [Line Items]
Broadcast incentive auction proceeds | $										$ 313,000

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RELATED PERSON TRANSACTIONS - Transactions With Our Controlling Shareholders (Details) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 29, 2016	Dec. 31, 2016 USD ($) restaurant	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Related person transactions
Capital leases, term	30 months
Term of renewal options	12 months
Leased assets or facilities | Entities owned by the controlling shareholders
Related person transactions
Amount paid		$ 5.1	$ 5.1	$ 5.1
Charter Aircraft | Controlling shareholders
Related person transactions
Aircraft expense		1.4	1.4	1.5
Advertising time | Atlantic Automotive
Related person transactions
Amount received		0.6	0.4	0.4
Leased assets or facilities | Atlantic Automotive
Related person transactions
Amount received		1.1	1.2	1.0
Real estate ventures in Baltimore, MD | Leased assets or facilities | Chief Executive Officer
Related person transactions
Amount paid		0.1	0.1	0.1
Amount received		$ 0.7	0.6	0.5
Number of restaurants owned by a related party | restaurant		3
Real Estate Ventures In Towson M D | Leased assets or facilities | Chief Executive Officer
Related person transactions
Amount received		$ 0.4	$ 0.3	$ 0.3

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RELATED PERSON TRANSACTIONS - Transactions With Our Controlling Shareholders - Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Related person transactions
Less: Current portion	$ (3,604)	$ (3,166)
Notes payable and capital leases to affiliates, less current portion	14,181	17,850
Capital leases payable maturity
Less: Amount representing interest	(19,369)
Affiliates
Related person transactions
Amount obligated to be paid	17,785	21,016
Less: Current portion	(3,604)	(3,166)
Notes payable and capital leases to affiliates, less current portion	14,181	17,850
Capital leases payable maturity
2017	5,061
2018	2,868
2019	2,978
2020	3,093
2021	3,046
2022 and thereafter	7,127
Total minimum payments due	24,173
Less: Amount representing interest	(6,388)
Amount obligated to be paid	$ 17,785	21,016
Affiliates | Capital leases for building, interest at 8.54%
Related person transactions
Interest rate (as a percent)	8.54%
Amount obligated to be paid	$ 1,858	3,508
Capital leases payable maturity
Amount obligated to be paid	$ 1,858	3,508
Affiliates | Capital leases for building, interest at 7.93%
Related person transactions
Interest rate (as a percent)	7.93%
Amount obligated to be paid	$ 317	679
Capital leases payable maturity
Amount obligated to be paid	$ 317	679
Affiliates | Capital leases for building, interest at 8.11%
Related person transactions
Interest rate (as a percent)	8.11%
Amount obligated to be paid	$ 6,934	7,432
Capital leases payable maturity
Amount obligated to be paid	$ 6,934	7,432
Affiliates | Capital leases for broadcasting tower facilities, interest at 8.0%
Related person transactions
Interest rate (as a percent)	8.00%
Amount obligated to be paid	$ 2,396	2,749
Capital leases payable maturity
Amount obligated to be paid	$ 2,396	2,749
Affiliates | Capital leases for broadcasting tower facilities, interest at 9.0%
Related person transactions
Interest rate (as a percent)	9.00%
Amount obligated to be paid	$ 1,755	1,958
Capital leases payable maturity
Amount obligated to be paid	$ 1,755	1,958
Affiliates | Capital leases for broadcasting tower facilities, interest at 10.5%
Related person transactions
Interest rate (as a percent)	10.50%
Amount obligated to be paid	$ 4,525	4,690
Capital leases payable maturity
Amount obligated to be paid	$ 4,525	$ 4,690

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RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Thousands	1 Months Ended			3 Months Ended									12 Months Ended
	Aug. 31, 2016 USD ($)	Apr. 30, 2016 USD ($)	Jan. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2016 USD ($) renewal	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Related person transactions
Price for which nonvoting stock was purchased												$ 2,000
Revenue				$ 797,691	$ 693,835	$ 666,534	$ 578,889	$ 611,790	$ 548,404	$ 554,167	$ 504,775		$ 2,736,949	$ 2,219,136	$ 1,976,558
Cunningham
Related person transactions
Agreement renewal period			1 year
Promissory note receivable			$ 19,500
Loan receivable, interest rate			5.00%
LMA | Cunningham
Related person transactions
Payments to related party													$ 8,900	8,800	10,800
Barrington Broadcasting Company, LLC | Cunningham
Related person transactions
Agreement renewal period													8 years
Amount received													$ 5,400	5,800	6,000
Revenue													$ 114,900	$ 109,500	$ 111,300
Cunningham | Affiliates
Related person transactions
Percentage of the total capital stock held in the related party, none of which have voting rights				100.00%									100.00%
Remaining purchase price				$ 53,600									$ 53,600
Purchase options broadcast stations				$ 200									$ 200
Equipment purchase agreement, consideration amount		$ 700
Equipment purchase agreement, annual service consideration		$ 200
Share service agreement, annual service consideration	$ 1,000
Cunningham | LMA | Affiliates
Related person transactions
Number of additional renewal terms | renewal													2
Agreement renewal period													5 years
Cunningham | Minimum | LMA | Affiliates
Related person transactions
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid				3.00%									3.00%
Amount used to determine annual LMA fees required to be paid				$ 4,700									$ 4,700
Annual increase in aggregate purchase price (as a percent)				6.00%									6.00%

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RELATED PERSON TRANSACTIONS - Atlantic Automotive Corporation and Leased Property by Real Estate Venture (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) lease real_estate_venture restaurant	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Advertising time | Atlantic Automotive
Related person transactions
Amount received	$ 0.6	$ 0.4	$ 0.4
Leased assets or facilities | Atlantic Automotive
Related person transactions
Amount received	$ 1.1	1.2	1.0
Number of real estate ventures | real_estate_venture	1
Real estate ventures in Baltimore, MD | Leased assets or facilities | Chief Executive Officer
Related person transactions
Amount received	$ 0.7	0.6	0.5
Number of real estate ventures | real_estate_venture	1
Number of ground lease properties | lease	1
Number of restaurants owned by a related party | restaurant	3
Amount paid	$ 0.1	0.1	0.1
Real Estate Ventures In Towson M D | Leased assets or facilities | Chief Executive Officer
Related person transactions
Amount received	$ 0.4	$ 0.3	$ 0.3

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EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income (Numerator)
Net Income	$ 122,500	$ 52,033	$ 50,600	$ 25,629	$ 60,830	$ 44,034	$ 46,399	$ 24,836	$ 250,762	$ 176,099	$ 215,115
Net income attributable to noncontrolling interests									(5,461)	(4,575)	(2,836)
Numerator for diluted earnings available to common shareholders									$ 245,301	$ 171,524	$ 212,279
Shares (Denominator)
Weighted average common shares outstanding (in shares)									93,567	95,003	97,114
Dilutive effect of outstanding stock settled appreciation rights and stock options									866	725	705
Weighted-average common and common equivalent shares outstanding (in shares)									94,433	95,728	97,819
Additional Disclosures
Antidilutive dilutive securities excluded from calculation of diluted earnings per share (in shares)									700	100	300

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SEGMENT DATA - Segment Financial Information (Details) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2016 USD ($) market	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2016 USD ($) market	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Segment Reporting [Abstract]
Number of markets | market		81								81
Intercompany loans		$ 233,300				$ 226,200				$ 233,300	$ 226,200
Intercompany interest expense										24,400	23,100	$ 20,700
Segment data
Revenue		797,691	$ 693,835	$ 666,534	$ 578,889	611,790	$ 548,404	$ 554,167	$ 504,775	2,736,949	2,219,136	1,976,558
Depreciation of property and equipment										98,529	103,433	103,291
Amortization of definite-lived intangible assets and other assets										183,795	161,454	125,496
Amortization of program contract costs and net realizable value adjustments										127,880	124,619	106,629
General and administrative overhead expenses										73,556	64,246	62,495
Research and development										4,085	12,436	6,918
Operating income		233,446	$ 153,994	$ 129,074	$ 86,339	124,243	$ 99,606	$ 114,340	$ 84,547	602,853	422,736	494,651
Interest expense										211,143	191,447	174,862
Income from equity and cost method investments										1,735	964	2,313
Goodwill		1,990,746				1,931,093				1,990,746	1,931,093	1,964,553
Assets	[1]	5,963,168				5,432,315				5,963,168	5,432,315
Capital expenditures										94,465	91,421	81,458
Broadcast
Segment data
Goodwill		1,933,831				1,927,605				1,933,831	1,927,605	1,964,040
Other operating divisions segment
Segment data
Goodwill		56,915				3,488				56,915	3,488	513
Operating segments | Broadcast
Segment data
Revenue										2,530,510	2,118,021	1,904,776
Depreciation of property and equipment										91,573	99,616	99,823
Amortization of definite-lived intangible assets and other assets										155,479	152,049	118,654
Amortization of program contract costs and net realizable value adjustments										127,880	124,619	106,629
General and administrative overhead expenses										67,035	55,848	55,837
Research and development										0	0	0
Operating income										639,422	451,015	511,783
Interest expense										5,641	0	0
Income from equity and cost method investments										0	0	0
Goodwill		1,933,831				1,927,705				1,933,831	1,927,705
Assets		4,815,633				4,838,531				4,815,633	4,838,531
Capital expenditures										78,909	74,902
Operating segments | Other operating divisions segment
Segment data
Revenue										206,439	101,115	71,782
Depreciation of property and equipment										5,772	2,753	2,350
Amortization of definite-lived intangible assets and other assets										28,316	9,405	6,842
Amortization of program contract costs and net realizable value adjustments										0	0	0
General and administrative overhead expenses										2,459	2,952	1,315
Research and development										4,085	12,436	6,918
Operating income										(31,258)	(21,800)	(10,671)
Interest expense										6,371	4,955	4,042
Income from equity and cost method investments										1,735	964	2,313
Goodwill		56,915				3,388				56,915	3,388
Assets		866,845				415,278				866,845	415,278
Capital expenditures										8,084	8,909
Corporate
Segment data
Revenue										0	0	0
Depreciation of property and equipment										1,184	1,064	1,118
Amortization of definite-lived intangible assets and other assets										0	0	0
Amortization of program contract costs and net realizable value adjustments										0	0	0
General and administrative overhead expenses										4,062	5,446	5,343
Research and development										0	0	0
Operating income										(5,311)	(6,479)	(6,461)
Interest expense										199,131	186,492	170,820
Income from equity and cost method investments										0	0	$ 0
Goodwill		0				0				0	0
Assets		$ 280,690				$ 178,506				280,690	178,506
Capital expenditures										$ 7,472	$ 7,610

[1] (a) Our consolidated total assets as of December 31, 2016 and 2015 include total assets of variable interest entities (VIEs) of $142.3 million and $152.4 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2016 and 2015 include total liabilities of the VIEs of $40.9 million and $35.6 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Aug. 31, 2016	Aug. 30, 2016	Aug. 15, 2016	Mar. 31, 2016	Mar. 23, 2016	Dec. 31, 2015	Oct. 12, 2013	Apr. 02, 2013	Oct. 12, 2012
FAIR VALUE MEASUREMENTS:
Unamortized discount and debt issuance costs, net	$ 43,449						$ 42,327
Senior Notes | 6.375% Senior Unsecured Notes due 2021
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)		6.375%		6.375%
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 0						350,000
Interest rate (as a percent)	6.375%
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 0						$ 367,325
Senior Notes | 6.125% Senior Unsecured Notes due 2022
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)							6.125%	6.125%		6.125%
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 500,000						$ 500,000
Interest rate (as a percent)	6.125%
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 521,240						$ 512,500
Senior Notes | 5.875% Senior Unsecured Notes due 2026
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)					5.875%	5.875%	5.875%
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 350,000						$ 0
Interest rate (as a percent)	5.875%
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 351,456						0
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 550,000						550,000
Interest rate (as a percent)	5.625%
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 562,755						$ 539,000
Senior Notes | 5.375% Senior Unsecured Notes due 2021
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)							5.375%		5.375%
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 600,000						$ 600,000
Interest rate (as a percent)	5.375%
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 617,892						$ 605,658
Senior Notes | 5.125% Senior Unsecured Notes due 2027
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)		5.125%	5.125%				5.125%
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 400,000						$ 0
Interest rate (as a percent)	5.125%
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 382,028						0
Term Loan | Term Loan A | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	272,198						313,620
Term Loan | Term Loan A | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	271,517						308,916
Term Loan | Term Loan B | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	1,365,625						1,376,007
Term Loan | Term Loan B | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	1,364,841						1,365,461
Debt of variable interest entities | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	23,198						26,682
Debt of variable interest entities | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	23,198						26,682
Debt of other non-media related subsidiaries | Level 2 | Carrying Value
FAIR VALUE MEASUREMENTS:
Debt instrument	135,211						120,969
Debt of other non-media related subsidiaries | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Debt instrument	$ 135,211						$ 120,969

XML

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Aug. 31, 2016	Aug. 30, 2016	Aug. 15, 2016	Mar. 31, 2016	Mar. 23, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Oct. 12, 2013	Apr. 02, 2013	Dec. 31, 2012	Oct. 12, 2012
CONDENSED CONSOLIDATING BALANCE SHEET
Consolidated total debt		$ 4,203,800
Cash and cash equivalents		259,984						$ 149,972	$ 17,682	$ 280,104			$ 280,104
Accounts and other receivables		513,954						424,608
Other current assets		131,150						127,183
Total current assets		905,088						701,763
Property and equipment, net		717,576						717,137
Investment in consolidated subsidiaries		0						0
Other long-term assets		249,049						198,287
Goodwill		1,990,746						1,931,093	1,964,553
Indefinite-lived intangible assets		156,306						132,465
DEFINITE-LIVED INTANGIBLE ASSETS, net		1,944,403						1,751,570
Total assets	[1]	5,963,168						5,432,315
Accounts payable and accrued liabilities		322,505						251,313
Current portion of long-term debt		171,131						164,184
Current portion of affiliate long-term debt		3,604						3,166
Other current liabilities		139,233						116,340
Total current liabilities		636,473						535,003
Long-term debt		4,014,932						3,669,160
Affiliate long-term debt		14,181						17,850
Other liabilities		739,646						710,624
Total liabilities	[1]	5,405,232						4,932,637
Total Sinclair Broadcast Group shareholders’ equity		587,983						525,810
Noncontrolling interests		(30,047)						(26,132)
Total liabilities and equity		5,963,168						5,432,315
Sinclair Broadcast Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Amount of debt guaranteed by parent		4,018,000
Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Amount of debt guaranteed by parent		4,066,800
Reportable legal entities | Sinclair Broadcast Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		0						0	0				0
Accounts and other receivables		0						0
Other current assets		5,561						3,648
Total current assets		5,561						3,648
Property and equipment, net		1,820						2,884
Investment in consolidated subsidiaries		551,250						497,262
Other long-term assets		46,586						52,128
Goodwill		0						0
Indefinite-lived intangible assets		0						0
DEFINITE-LIVED INTANGIBLE ASSETS, net		0						0
Total assets		605,217						555,922
Accounts payable and accrued liabilities		100						104
Current portion of long-term debt		0						0
Current portion of affiliate long-term debt		1,857						1,651
Other current liabilities		0						0
Total current liabilities		1,957						1,755
Long-term debt		0						0
Affiliate long-term debt		0						1,857
Other liabilities		15,277						26,500
Total liabilities		17,234						30,112
Total Sinclair Broadcast Group shareholders’ equity		587,983						525,810
Noncontrolling interests		0						0
Total liabilities and equity		605,217						555,922
Reportable legal entities | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		232,297						115,771	3,394				237,974
Accounts and other receivables		0						1,775
Other current assets		3,143						5,172
Total current assets		235,440						122,718
Property and equipment, net		17,925						20,336
Investment in consolidated subsidiaries		3,614,605						3,430,434
Other long-term assets		819,506						673,915
Goodwill		0						0
Indefinite-lived intangible assets		0						0
DEFINITE-LIVED INTANGIBLE ASSETS, net		0						0
Total assets		4,687,476						4,247,403
Accounts payable and accrued liabilities		69,118						49,428
Current portion of long-term debt		55,501						57,640
Current portion of affiliate long-term debt		0						0
Other current liabilities		0						0
Total current liabilities		124,619						107,068
Long-term debt		3,939,463						3,594,218
Affiliate long-term debt		0						0
Other liabilities		31,817						28,866
Total liabilities		4,095,899						3,730,152
Total Sinclair Broadcast Group shareholders’ equity		591,577						517,251
Noncontrolling interests		0						0
Total liabilities and equity		4,687,476						4,247,403
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		10,675						235	1,749				28,594
Accounts and other receivables		478,190						390,142
Other current assets		124,313						99,118
Total current assets		613,178						489,495
Property and equipment, net		570,289						559,042
Investment in consolidated subsidiaries		4,179						4,179
Other long-term assets		103,808						110,507
Goodwill		1,986,467						1,926,814
Indefinite-lived intangible assets		140,597						114,841
DEFINITE-LIVED INTANGIBLE ASSETS, net		1,770,512						1,602,454
Total assets		5,189,030						4,807,332
Accounts payable and accrued liabilities		225,645						179,156
Current portion of long-term debt		1,851						1,611
Current portion of affiliate long-term debt		1,514						1,311
Other current liabilities		127,967						103,627
Total current liabilities		356,977						285,705
Long-term debt		31,014						32,743
Affiliate long-term debt		12,663						14,240
Other liabilities		1,190,717						1,060,211
Total liabilities		1,591,371						1,392,899
Total Sinclair Broadcast Group shareholders’ equity		3,597,659						3,414,433
Noncontrolling interests		0						0
Total liabilities and equity		5,189,030						4,807,332
Reportable legal entities | Non-Guarantor Subsidiaries
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		17,012						33,966	12,539				13,536
Accounts and other receivables		37,024						33,949
Other current assets		25,406						23,278
Total current assets		79,442						91,193
Property and equipment, net		131,326						143,667
Investment in consolidated subsidiaries		0						0
Other long-term assets		169,817						140,910
Goodwill		4,279						4,279
Indefinite-lived intangible assets		15,709						17,624
DEFINITE-LIVED INTANGIBLE ASSETS, net		233,368						206,975
Total assets		633,941						604,648
Accounts payable and accrued liabilities		48,815						27,462
Current portion of long-term debt		113,779						106,358
Current portion of affiliate long-term debt		2,336						456
Other current liabilities		13,590						12,713
Total current liabilities		178,520						146,989
Long-term debt		44,455						42,199
Affiliate long-term debt		396,957						366,042
Other liabilities		183,418						171,102
Total liabilities		803,350						726,332
Total Sinclair Broadcast Group shareholders’ equity		(134,991)						(91,703)
Noncontrolling interests		(34,418)						(29,981)
Total liabilities and equity		633,941						604,648
Eliminations
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		0						0	$ 0				$ 0
Accounts and other receivables		(1,260)						(1,258)
Other current assets		(27,273)						(4,033)
Total current assets		(28,533)						(5,291)
Property and equipment, net		(3,784)						(8,792)
Investment in consolidated subsidiaries		(4,170,034)						(3,931,875)
Other long-term assets		(890,668)						(779,173)
Goodwill		0						0
Indefinite-lived intangible assets		0						0
DEFINITE-LIVED INTANGIBLE ASSETS, net		(59,477)						(57,859)
Total assets		(5,152,496)						(4,782,990)
Accounts payable and accrued liabilities		(21,173)						(4,837)
Current portion of long-term debt		0						(1,425)
Current portion of affiliate long-term debt		(2,103)						(252)
Other current liabilities		(2,324)						0
Total current liabilities		(25,600)						(6,514)
Long-term debt		0						0
Affiliate long-term debt		(395,439)						(364,289)
Other liabilities		(681,583)						(576,055)
Total liabilities		(1,102,622)						(946,858)
Total Sinclair Broadcast Group shareholders’ equity		(4,054,245)						(3,839,981)
Noncontrolling interests		4,371						3,849
Total liabilities and equity		$ (5,152,496)						$ (4,782,990)
Senior Notes | 5.375% Senior Unsecured Notes due 2021
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)								5.375%				5.375%
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.375%
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.375%
Senior Notes | 5.625% Senior Notes, due | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.625%
Senior Notes | 6.125% Senior Unsecured Notes due 2022
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)								6.125%			6.125%			6.125%
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		6.125%
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		6.125%
Senior Notes | 6.375% Senior Unsecured Notes due 2021
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)			6.375%		6.375%
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		6.375%
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		6.375%
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.625%
Senior Notes | 5.875% Senior Unsecured Notes due 2026
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)						5.875%	5.875%	5.875%
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.875%
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.875%
Senior Notes | 5.125% Senior Unsecured Notes due 2027
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)			5.125%	5.125%				5.125%
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.125%
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Interest rate (as a percent)		5.125%

[1] (a) Our consolidated total assets as of December 31, 2016 and 2015 include total assets of variable interest entities (VIEs) of $142.3 million and $152.4 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2016 and 2015 include total liabilities of the VIEs of $40.9 million and $35.6 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue	$ 797,691	$ 693,835	$ 666,534	$ 578,889	$ 611,790	$ 548,404	$ 554,167	$ 504,775	$ 2,736,949	$ 2,219,136	$ 1,976,558
Media production expenses									953,089	733,199	578,687
Selling, general and administrative									575,145	495,974	434,715
Depreciation, amortization and other operating expenses									605,862	567,227	468,505
Total operating expenses									2,134,096	1,796,400	1,481,907
Operating income	233,446	153,994	129,074	86,339	124,243	99,606	114,340	84,547	602,853	422,736	494,651
Equity in earnings of consolidated subsidiaries									0	0	0
Interest expense									(211,143)	(191,447)	(174,862)
Other income (expense)									(18,820)	2,504	(7,242)
Total other expense									(229,963)	(188,943)	(182,104)
Income tax benefit (provision)									(122,128)	(57,694)	(97,432)
Income from discontinued operations, net of tax											0
NET INCOME									250,762	176,099	215,115
Net income attributable to the noncontrolling interests									(5,461)	(4,575)	(2,836)
Net income attributable to Sinclair Broadcast Group	$ 120,897	$ 50,845	$ 49,419	$ 24,140	$ 58,200	$ 43,255	$ 45,787	$ 24,282	245,301	171,524	212,279
Comprehensive income (loss)									250,789	181,720	211,759
Reportable legal entities | Sinclair Broadcast Group, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue									0	0	0
Media production expenses									0	0	0
Selling, general and administrative									4,062	4,441	4,320
Depreciation, amortization and other operating expenses									1,064	1,065	1,068
Total operating expenses									5,126	5,506	5,388
Operating income									(5,126)	(5,506)	(5,388)
Equity in earnings of consolidated subsidiaries									244,580	170,104	211,782
Interest expense									(238)	(382)	(573)
Other income (expense)									3,613	4,765	4,377
Total other expense									247,955	174,487	215,586
Income tax benefit (provision)									2,472	2,543	2,081
Income from discontinued operations, net of tax											0
NET INCOME									245,301	171,524	212,279
Net income attributable to the noncontrolling interests									0	0	0
Net income attributable to Sinclair Broadcast Group									245,301	171,524	212,279
Comprehensive income (loss)									250,789	181,720	211,759
Reportable legal entities | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue									0	0	0
Media production expenses									0	0	76
Selling, general and administrative									70,503	58,543	57,799
Depreciation, amortization and other operating expenses									7,331	3,779	5,425
Total operating expenses									77,834	62,322	63,300
Operating income									(77,834)	(62,322)	(63,300)
Equity in earnings of consolidated subsidiaries									463,598	343,183	373,228
Interest expense									(198,893)	(180,166)	(163,347)
Other income (expense)									(22,867)	(151)	(14,651)
Total other expense									241,838	162,866	195,230
Income tax benefit (provision)									99,148	81,626	83,897
Income from discontinued operations, net of tax											0
NET INCOME									263,152	182,170	215,827
Net income attributable to the noncontrolling interests									0	0	0
Net income attributable to Sinclair Broadcast Group									263,152	182,170	215,827
Comprehensive income (loss)									263,179	187,791	213,284
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue									2,579,284	2,076,851	1,870,408
Media production expenses									918,200	725,037	573,725
Selling, general and administrative									489,882	418,885	359,880
Depreciation, amortization and other operating expenses									465,680	433,690	367,514
Total operating expenses									1,873,762	1,577,612	1,301,119
Operating income									705,522	499,239	569,289
Equity in earnings of consolidated subsidiaries									220	195	(201)
Interest expense									(4,481)	(4,658)	(4,869)
Other income (expense)									715	269	998
Total other expense									(3,546)	(4,194)	(4,072)
Income tax benefit (provision)									(231,504)	(146,331)	(185,193)
Income from discontinued operations, net of tax											0
NET INCOME									470,472	348,714	380,024
Net income attributable to the noncontrolling interests									0	0	0
Net income attributable to Sinclair Broadcast Group									470,472	348,714	380,024
Comprehensive income (loss)									470,472	351,760	378,926
Reportable legal entities | Non-Guarantor Subsidiaries
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue									265,855	221,633	192,616
Media production expenses									135,511	82,450	86,266
Selling, general and administrative									10,804	14,272	14,795
Depreciation, amortization and other operating expenses									133,810	131,373	96,265
Total operating expenses									280,125	228,095	197,326
Operating income									(14,270)	(6,462)	(4,710)
Equity in earnings of consolidated subsidiaries									0	0	0
Interest expense									(32,521)	(30,022)	(27,364)
Other income (expense)									(281)	(2,379)	2,024
Total other expense									(32,802)	(32,401)	(25,340)
Income tax benefit (provision)									7,756	4,468	1,783
Income from discontinued operations, net of tax											0
NET INCOME									(39,316)	(34,395)	(28,267)
Net income attributable to the noncontrolling interests									(4,937)	(4,914)	(2,836)
Net income attributable to Sinclair Broadcast Group									(44,253)	(39,309)	(31,103)
Comprehensive income (loss)									(39,316)	(39,309)	(27,982)
Eliminations
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue									(108,190)	(79,348)	(86,466)
Media production expenses									(100,622)	(74,288)	(81,380)
Selling, general and administrative									(106)	(167)	(2,079)
Depreciation, amortization and other operating expenses									(2,023)	(2,680)	(1,767)
Total operating expenses									(102,751)	(77,135)	(85,226)
Operating income									(5,439)	(2,213)	(1,240)
Equity in earnings of consolidated subsidiaries									(708,398)	(513,482)	(584,809)
Interest expense									24,990	23,781	21,291
Other income (expense)									0	0	10
Total other expense									(683,408)	(489,701)	(563,508)
Income tax benefit (provision)									0	0	0
Income from discontinued operations, net of tax											0
NET INCOME									(688,847)	(491,914)	(564,748)
Net income attributable to the noncontrolling interests									(524)	339	0
Net income attributable to Sinclair Broadcast Group									(689,371)	(491,575)	(564,748)
Comprehensive income (loss)									$ (694,335)	$ (500,242)	$ (564,228)

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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$ 591,766	$ 402,927	$ 432,599
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	(94,465)	(91,421)	(81,458)
Acquisition of businesses, net of cash acquired	(425,857)	(17,011)	(1,485,039)
Purchase of alarm monitoring contracts	(40,206)	(39,185)	(27,701)
Proceeds from the sale of assets	16,396	23,650	176,675
Decrease in restricted cash	(3,725)	3,725	(11,616)
Investments in equity and cost method investees	(51,247)	(44,715)	(8,104)
Proceeds from insurance settlement			17,042
Other, net	(10,624)	17,371	(387)
Net cash flow used in investing activities	(606,003)	(151,311)	(1,397,356)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	1,024,912	382,887	1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(671,215)	(395,147)	(582,764)
Dividends paid on Class A and Class B Common Stock	(65,909)	(62,733)	(61,103)
Repurchase of outstanding Class A Common Stock	(136,283)	(28,823)	(133,157)
Payments for deferred financing costs	(15,681)	(3,847)	(16,590)
Noncontrolling interests distributions	(10,464)	(9,918)	(8,184)
Increase (decrease) in intercompany payables	0	0	0
Other, net	(1,111)	(1,745)	3,413
Net cash flows from (used in) financing activities	124,249	(119,326)	702,335
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	110,012	132,290	(262,422)
CASH AND CASH EQUIVALENTS, beginning of year	149,972	17,682	280,104
CASH AND CASH EQUIVALENTS, end of year	259,984	149,972	17,682
Reportable legal entities | Sinclair Broadcast Group, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	(11,784)	(3,759)	(26,528)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	0	0	0
Acquisition of businesses, net of cash acquired	0	0	0
Purchase of alarm monitoring contracts	0	0	0
Proceeds from the sale of assets	0	0	0
Decrease in restricted cash			0
Investments in equity and cost method investees	(2,945)	0	0
Proceeds from insurance settlement			0
Other, net	1,714	4,598	1,000
Net cash flow used in investing activities	(1,231)	4,598	1,000
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	0	0	0
Repayments of notes payable, commercial bank financing and capital leases	0	(528)	(556)
Dividends paid on Class A and Class B Common Stock	(65,909)	(62,733)	(61,103)
Repurchase of outstanding Class A Common Stock	(136,283)	(28,823)	(133,157)
Payments for deferred financing costs	0	0	0
Noncontrolling interests distributions	0	0	0
Increase (decrease) in intercompany payables	218,054	89,319	218,081
Other, net	(2,847)	1,926	2,263
Net cash flows from (used in) financing activities	13,015	(839)	25,528
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	0	0	0
CASH AND CASH EQUIVALENTS, beginning of year	0	0
CASH AND CASH EQUIVALENTS, end of year	0	0	0
Reportable legal entities | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	(150,230)	(131,363)	(145,795)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	(8,006)	(6,605)	(8,864)
Acquisition of businesses, net of cash acquired	0	0	0
Purchase of alarm monitoring contracts	0	0	0
Proceeds from the sale of assets	0	0	0
Decrease in restricted cash			(11,525)
Investments in equity and cost method investees	(15,620)	(8,998)	0
Proceeds from insurance settlement			17,042
Other, net	(21,395)	(5,447)	0
Net cash flow used in investing activities	(45,021)	(21,050)	19,703
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	995,000	349,562	1,466,500
Repayments of notes payable, commercial bank financing and capital leases	(650,422)	(382,691)	(574,584)
Dividends paid on Class A and Class B Common Stock	0	0	0
Repurchase of outstanding Class A Common Stock	0	0	0
Payments for deferred financing costs	(15,430)	(3,604)	(16,590)
Noncontrolling interests distributions	0	0	0
Increase (decrease) in intercompany payables	(17,778)	303,755	(981,669)
Other, net	407	(2,232)	(2,145)
Net cash flows from (used in) financing activities	311,777	264,790	(108,488)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	116,526	112,377	(234,580)
CASH AND CASH EQUIVALENTS, beginning of year	115,771	3,394
CASH AND CASH EQUIVALENTS, end of year	232,297	115,771	3,394
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	721,991	530,768	628,103
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	(82,450)	(84,079)	(71,152)
Acquisition of businesses, net of cash acquired	(415,482)	(17,011)	(1,485,039)
Purchase of alarm monitoring contracts	0	0	0
Proceeds from the sale of assets	7,263	23,650	176,675
Decrease in restricted cash			(91)
Investments in equity and cost method investees	(27)	(27)	0
Proceeds from insurance settlement			0
Other, net	3,985	575	392
Net cash flow used in investing activities	(486,711)	(76,892)	(1,379,033)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	0	0	507
Repayments of notes payable, commercial bank financing and capital leases	(1,633)	(1,286)	(1,028)
Dividends paid on Class A and Class B Common Stock	0	0	0
Repurchase of outstanding Class A Common Stock	0	0	0
Payments for deferred financing costs	0	0	0
Noncontrolling interests distributions	0	0	0
Increase (decrease) in intercompany payables	(224,551)	(452,897)	725,678
Other, net	1,344	(1,207)	(1,072)
Net cash flows from (used in) financing activities	(224,840)	(455,390)	724,085
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	10,440	(1,514)	(26,845)
CASH AND CASH EQUIVALENTS, beginning of year	235	1,749
CASH AND CASH EQUIVALENTS, end of year	10,675	235	1,749
Reportable legal entities | Non-Guarantor Subsidiaries
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	7,914	(16,864)	(35,694)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	(5,009)	(2,586)	(2,722)
Acquisition of businesses, net of cash acquired	(10,375)	0	0
Purchase of alarm monitoring contracts	(40,206)	(39,185)	(27,701)
Proceeds from the sale of assets	9,133	0	0
Decrease in restricted cash			0
Investments in equity and cost method investees	(32,655)	(35,690)	(8,104)
Proceeds from insurance settlement			0
Other, net	5,072	17,645	(1,779)
Net cash flow used in investing activities	(74,040)	(59,816)	(40,306)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	29,912	33,325	33,713
Repayments of notes payable, commercial bank financing and capital leases	(19,160)	(10,642)	(6,596)
Dividends paid on Class A and Class B Common Stock	0	0	0
Repurchase of outstanding Class A Common Stock	0	0	0
Payments for deferred financing costs	(251)	(243)	0
Noncontrolling interests distributions	(10,464)	(9,918)	(8,184)
Increase (decrease) in intercompany payables	49,403	85,953	51,703
Other, net	(268)	(368)	4,367
Net cash flows from (used in) financing activities	49,172	98,107	75,003
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(16,954)	21,427	(997)
CASH AND CASH EQUIVALENTS, beginning of year	33,966	12,539
CASH AND CASH EQUIVALENTS, end of year	17,012	33,966	12,539
Eliminations
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	23,875	24,145	12,513
CASH FLOWS USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment	1,000	1,849	1,280
Acquisition of businesses, net of cash acquired	0	0	0
Purchase of alarm monitoring contracts	0	0	0
Proceeds from the sale of assets	0	0	0
Decrease in restricted cash			0
Investments in equity and cost method investees	0	0	0
Proceeds from insurance settlement			0
Other, net	0	0	0
Net cash flow used in investing activities	1,000	1,849	1,280
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	0	0	0
Repayments of notes payable, commercial bank financing and capital leases	0	0	0
Dividends paid on Class A and Class B Common Stock	0	0	0
Repurchase of outstanding Class A Common Stock	0	0	0
Payments for deferred financing costs	0	0	0
Noncontrolling interests distributions	0	0	0
Increase (decrease) in intercompany payables	(25,128)	(26,130)	(13,793)
Other, net	253	136	0
Net cash flows from (used in) financing activities	(24,875)	(25,994)	(13,793)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	0	0	0
CASH AND CASH EQUIVALENTS, beginning of year	0	0
CASH AND CASH EQUIVALENTS, end of year	$ 0	$ 0	$ 0

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QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Total revenues, net	$ 797,691	$ 693,835	$ 666,534	$ 578,889	$ 611,790	$ 548,404	$ 554,167	$ 504,775	$ 2,736,949	$ 2,219,136	$ 1,976,558
Operating income	233,446	153,994	129,074	86,339	124,243	99,606	114,340	84,547	602,853	422,736	494,651
Net Income	122,500	52,033	50,600	25,629	60,830	44,034	46,399	24,836	250,762	176,099	215,115
Net income attributable to Sinclair Broadcast Group	$ 120,897	$ 50,845	$ 49,419	$ 24,140	$ 58,200	$ 43,255	$ 45,787	$ 24,282	$ 245,301	$ 171,524	$ 212,279
Basic earnings per share common shares (in dollars per share)	$ 1.34	$ 0.54	$ 0.52	$ 0.25	$ 0.62	$ 0.46	$ 0.48	$ 0.26	$ 2.62	$ 1.81	$ 2.19
Diluted earnings per share common shares (in dollars per share)	$ 1.32	$ 0.54	$ 0.52	$ 0.25	$ 0.61	$ 0.45	$ 0.48	$ 0.25	$ 2.60	$ 1.79	$ 2.17