CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2019

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	891,865	$	2,995	$	34,178		$	—		$	929,038
Accounts receivable, net	—		—		538,644		51,308			—			589,952
Other current assets	4,511		12,655		91,021		34,348			(25,895		)	116,640
Total current assets	4,511		904,520		632,660		119,834			(25,895		)	1,635,630
Property and equipment, net	723		31,187		612,278		71,960			(16,643		)	699,505
Investment in consolidated subsidiaries	1,546,563		3,579,483		—		—			(5,126,046		)	—
Goodwill	—		—		2,120,035		3,867			—			2,123,902
Indefinite-lived intangible assets	—		—		143,924		14,440			—			158,364
Definite-lived intangible assets, net	—		—		1,523,633		66,307			(49,457		)	1,540,483
Other long-term assets	45,396		879,846		297,849		164,460			(991,769		)	395,782
Total assets	$	1,597,193	$	5,395,036	$	5,330,379	$	440,868		$	(6,209,810	)	$	6,553,666
Accounts payable and accrued liabilities	$	15,101	$	90,325	$	269,371	$	76,592		$	(26,809	)	$	424,580
Current portion of long-term debt	—		13,700		4,247		7,838			(578		)	25,207
Other current liabilities	1,052		616		67,945		6,824			—			76,437
Total current liabilities	16,153		104,641		341,563		91,254			(27,387		)	526,224
Long-term debt	—		3,693,460		34,555		365,283			(330,504		)	3,762,794
Other long-term liabilities	11,925		46,745		1,376,146		173,456			(872,623		)	735,649
Total liabilities	28,078		3,844,846		1,752,264		629,993			(1,230,514		)	5,024,667
Total Sinclair Broadcast Group equity (deficit)	1,569,115		1,550,190		3,578,115		(145,440		)	(4,982,865		)	1,569,115
Noncontrolling interests in consolidated subsidiaries	—		—		—		(43,685		)	3,569			(40,116		)
Total liabilities and equity (deficit)	$	1,597,193	$	5,395,036	$	5,330,379	$	440,868		$	(6,209,810	)	$	6,553,666

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2018

(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	$	—	$	961,963	$	19,648	$	78,719		$	—		$	1,060,330
Accounts receivable, net	—		—		530,543		68,054			—			598,597
Other current assets	3,235		5,548		103,111		37,157			(24,072		)	124,979
Total current assets	3,235		967,511		653,302		183,930			(24,072		)	1,783,906
Property and equipment, net	754		31,773		593,755		70,223			(13,371		)	683,134
Investment in consolidated subsidiaries	1,604,234		3,654,263		4,179		—			(5,262,676		)	—
Goodwill	—		—		2,120,035		3,867			—			2,123,902
Indefinite-lived intangible assets	—		—		143,924		14,298			—			158,222
Definite-lived intangible assets, net	—		—		1,608,748		70,409			(52,277		)	1,626,880
Other long-term assets	31,002		851,170		119,187		165,064			(970,375		)	196,048
Total assets	$	1,639,225	$	5,504,717	$	5,243,130	$	507,791		$	(6,322,771	)	$	6,572,092
Accounts payable and accrued liabilities	$	100	$	78,814	$	273,444	$	85,875		$	(25,006	)	$	413,227
Current portion of long-term debt	—		31,135		4,100		7,842			(513		)	42,564
Other current liabilities	—		—		107,051		9,743			—			116,794
Total current liabilities	100		109,949		384,595		103,460			(25,519		)	572,585
Long-term debt	—		3,775,489		36,551		381,913			(344,062		)	3,849,891
Other long-term liabilities	289		40,132		1,169,184		173,197			(833,506		)	549,296
Total liabilities	389		3,925,570		1,590,330		658,570			(1,203,087		)	4,971,772
Total Sinclair Broadcast Group equity (deficit)	1,638,836		1,579,147		3,652,800		(107,825		)	(5,124,122		)	1,638,836
Noncontrolling interests in consolidated subsidiaries	—		—		—		(42,954		)	4,438			(38,516		)
Total liabilities and equity (deficit)	$	1,639,225	$	5,504,717	$	5,243,130	$	507,791		$	(6,322,771	)	$	6,572,092

Schedule of condensed consolidating statement of operations and comprehensive income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2019

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	704,513		$	88,710		$	(22,504	)	$	770,719
Media program and production expenses	—			—			317,279			32,744			(14,861		)	335,162
Selling, general and administrative	18,999			32,569			162,019			4,123			(1,300		)	216,410
Depreciation, amortization and other operating expenses	152			1,328			69,499			46,422			(4,253		)	113,148
Total operating expenses	19,151			33,897			548,797			83,289			(20,414		)	664,720
Operating (loss) income	(19,151		)	(33,897		)	155,716			5,421			(2,090		)	105,999
Equity in earnings of consolidated subsidiaries	57,015			118,038			—			—			(175,053		)	—
Interest expense	(163		)	(52,020		)	(889		)	(4,136		)	3,530			(53,678		)
Other income (expense)	351			4,789			(11,729		)	278			—			(6,311		)
Total other income (expense)	57,203			70,807			(12,618		)	(3,858		)	(171,523		)	(59,989		)
Income tax benefit (provision)	4,245			17,370			(23,902		)	(340		)	—			(2,627		)
Net income	42,297			54,280			119,196			1,223			(173,613		)	43,383
Net income attributable to the noncontrolling interests	—			—			—			(1,072		)	(14		)	(1,086		)
Net income attributable to Sinclair Broadcast Group	$	42,297		$	54,280		$	119,196		$	151		$	(173,627	)	$	42,297
Comprehensive income	$	42,297		$	54,280		$	119,196		$	1,223		$	(173,613	)	$	43,383

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2018

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	680,130		$	71,730		$	(21,717	)	$	730,143
Media program and production expenses	—			—			285,940			33,175			(18,257		)	300,858
Selling, general and administrative	2,874			26,585			147,180			4,352			(512		)	180,479
Depreciation, amortization and other operating expenses	19			1,134			84,573			33,223			(1,725		)	117,224
Total operating expenses	2,893			27,719			517,693			70,750			(20,494		)	598,561
Operating (loss) income	(2,893		)	(27,719		)	162,437			980			(1,223		)	131,582
Equity in earnings of consolidated subsidiaries	29,345			128,164			(185		)	—			(157,324		)	—
Interest expense	(1		)	(90,635		)	(989		)	(4,643		)	3,997			(92,271		)
Other income (expense)	642			3,256			(14,345		)	(2,852		)	—			(13,299		)
Total other income (expense)	29,986			40,785			(15,519		)	(7,495		)	(153,327		)	(105,570		)
Income tax benefit (provision)	948			22,056			(17,607		)	(2,100		)	—			3,297
Net income (loss)	28,041			35,122			129,311			(8,615		)	(154,550		)	29,309
Net income attributable to the noncontrolling interests	—			—			—			(1,268		)	—			(1,268		)
Net income (loss) attributable to Sinclair Broadcast Group	$	28,041		$	35,122		$	129,311		$	(9,883	)	$	(154,550	)	$	28,041
Comprehensive income (loss)	$	28,041		$	35,122		$	129,311		$	(8,615	)	$	(154,550	)	$	29,309

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2019

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	4		$	1,360,858		$	171,903		$	(39,943	)	$	1,492,822
Media program and production expenses	—			—			618,722			62,938			(27,454		)	654,206
Selling, general and administrative	20,986			58,329			318,435			8,832			(2,523		)	404,059
Depreciation, amortization and other operating expenses	383			2,535			147,691			90,099			(5,748		)	234,960
Total operating expenses	21,369			60,864			1,084,848			161,869			(35,725		)	1,293,225
Operating (loss) income	(21,369		)	(60,860		)	276,010			10,034			(4,218		)	199,597
Equity in earnings of consolidated subsidiaries	80,250			207,320			—			—			(287,570		)	—
Interest expense	(163		)	(104,971		)	(1,939		)	(8,592		)	7,361			(108,304		)
Other income (expense)	723			5,796			(23,398		)	(874		)	—			(17,753		)
Total other income (expense)	80,810			108,145			(25,337		)	(9,466		)	(280,209		)	(126,057		)
Income tax benefit (provision)	4,528			29,003			(40,776		)	(141		)	—			(7,386		)
Net income	63,969			76,288			209,897			427			(284,427		)	66,154
Net income attributable to the noncontrolling interests	—			—			—			(3,051		)	866			(2,185		)
Net income (loss) attributable to Sinclair Broadcast Group	$	63,969		$	76,288		$	209,897		$	(2,624	)	$	(283,561	)	$	63,969
Comprehensive income	$	63,969		$	76,288		$	209,897		$	427		$	(284,427	)	$	66,154

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2018

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,305,814		$	129,741		$	(40,059	)	$	1,395,496
Media program and production expenses	—			—			559,355			65,195			(35,143		)	589,407
Selling, general and administrative	5,471			48,339			290,481			8,636			(953		)	351,974
Depreciation, amortization and other operating expenses	38			2,384			90,989			124,231			(2,424		)	215,218
Total operating expenses	5,509			50,723			940,825			198,062			(38,520		)	1,156,599
Operating (loss) income	(5,509		)	(50,723		)	364,989			(68,321		)	(1,539		)	238,897
Equity in earnings of consolidated subsidiaries	74,383			299,934			245			—			(374,562		)	—
Interest expense	(1		)	(158,803		)	(1,961		)	(9,193		)	7,945			(162,013		)
Other income (expense)	1,323			5,551			(27,706		)	(1,673		)	—			(22,505		)
Total other income (expense)	75,705			146,682			(29,422		)	(10,866		)	(366,617		)	(184,518		)
Income tax benefit (provision)	969			37,454			(33,283		)	13,785			—			18,925
Net income (loss)	71,165			133,413			302,284			(65,402		)	(368,156		)	73,304
Net income attributable to the noncontrolling interests	—			—			—			(2,324		)	185			(2,139		)
Net income (loss) attributable to Sinclair Broadcast Group	$	71,165		$	133,413		$	302,284		$	(67,726	)	$	(367,971	)	$	71,165
Comprehensive income (loss)	$	71,165		$	133,413		$	302,284		$	(65,402	)	$	(368,156	)	$	73,304

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2019

(in thousands) (unaudited)

	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	$	(198	)	$	(122,095	)	$	328,029		$	22,155		$	(5,200	)	$	222,691
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(8		)	(1,691		)	(63,374		)	(1,476		)	4,954			(61,595		)
Purchases of investments	(2,291		)	(6,005		)	(29,970		)	(5,328		)	—			(43,594		)
Distributions from investments	—			—			—			3,026			—			3,026
Spectrum repack reimbursements	—			—			22,119			—			—			22,119
Other, net	—			(1,041		)	(373		)	9			—			(1,405		)
Net cash flows (used in) from investing activities	(2,299		)	(8,737		)	(71,598		)	(3,769		)	4,954			(81,449		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			—			—			668			(159		)	509
Repayments of notes payable, commercial bank financing and finance leases	—			(102,742		)	(2,015		)	(24,558		)	20,761			(108,554		)
Dividends paid on Class A and Class B Common Stock	(36,765		)	—			—			—			—			(36,765		)
Repurchase of outstanding Class A Common Stock	(125,034		)	—			—			—			—			(125,034		)
Increase (decrease) in intercompany payables	164,061			163,476			(271,069		)	(36,112		)	(20,356		)	—
Other, net	235			—			—			(2,925		)	—			(2,690		)
Net cash flows from (used in) financing activities	2,497			60,734			(273,084		)	(62,927		)	246			(272,534		)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			(70,098		)	(16,653		)	(44,541		)	—			(131,292		)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			961,963			19,648			78,719			—			1,060,330
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	891,865		$	2,995		$	34,178		$	—		$	929,038

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2018

(in thousands) (unaudited)

	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	$	(1,196	)	$	(154,476	)	$	412,837		$	(9,691	)	$	7,682		$	255,156
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(4,250		)	(46,803		)	(2,463		)	1,248			(52,268		)
Purchases of investments	(1,735		)	(1,821		)	(13,586		)	(1,454		)	—			(18,596		)
Distributions from investments	2,498			—			—			11,007			—			13,505
Spectrum repack reimbursements	—			—			1,542			—			—			1,542
Other, net	1,670			(2,731		)	1,005			—			—			(56		)
Net cash flows from (used in) investing activities	2,433			(8,802		)	(57,842		)	7,090			1,248			(55,873		)
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			—			—			2,016			—			2,016
Repayments of notes payable, commercial bank financing and finance leases	—			(132,937		)	(1,715		)	(7,612		)	187			(142,077		)
Dividends paid on Class A and Class B Common Stock	(36,794		)	—			—			—			—			(36,794		)
Increase (decrease) in intercompany payables	33,309			606,796			(666,187		)	35,199			(9,117		)	—
Other, net	2,248			—			—			(4,392		)	—			(2,144		)
Net cash flows (used in) from financing activities	(1,237		)	473,859			(667,902		)	25,211			(8,930		)	(178,999		)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			310,581			(312,907		)	22,610			—			20,284
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			645,830			323,383			26,727			—			995,940
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	956,411		$	10,476		$	49,337		$	—		$	1,016,224