CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2020

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	168	$	3	$	451	$	—		$	622
Accounts receivable, net	—		—		494		491		—			985
Other current assets	12		86		201		781		(95		)	985
Total current assets	12		254		698		1,723		(95		)	2,592
Property and equipment, net	1		33		702		100		(27		)	809
Investment in consolidated subsidiaries	2,258		3,497		—		—		(5,755		)	—
Goodwill	—		—		2,091		2,625		—			4,716
Indefinite-lived intangible assets	—		—		149		14		—			163
Definite-lived intangible assets, net	—		—		1,342		6,366		(44		)	7,664
Other long-term assets	84		1,632		280		476		(1,647		)	825
Total assets	$	2,355	$	5,416	$	5,262	$	11,304	$	(7,568	)	$	16,769
Accounts payable and accrued liabilities	$	31	$	99	$	277	$	261	$	(95	)	$	573
Current portion of long-term debt	—		27		5		41		(2		)	71
Other current liabilities	1		—		99		159		—			259
Total current liabilities	32		126		381		461		(97		)	903
Long-term debt	700		4,336		36		8,291		(1,035		)	12,328
Other long-term liabilities	13		59		1,351		624		(830		)	1,217
Total liabilities	745		4,521		1,768		9,376		(1,962		)	14,448
Redeemable noncontrolling interests	—		—		—		510		—			510
Total Sinclair Broadcast Group equity	1,610		895		3,494		1,220		(5,610		)	1,609
Noncontrolling interests in consolidated subsidiaries	—		—		—		198		4			202
Total liabilities, redeemable noncontrolling interests, and equity	$	2,355	$	5,416	$	5,262	$	11,304	$	(7,568	)	$	16,769

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2019

(in millions)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	357	$	3	$	973	$	—		$	1,333
Accounts receivable, net	—		—		561		571		—			1,132
Other current assets	5		41		264		188		(50		)	448
Total current assets	5		398		828		1,732		(50		)	2,913
Property and equipment, net	1		31		659		96		(22		)	765
Investment in consolidated subsidiaries	2,270		3,558		—		—		(5,828		)	—
Goodwill	—		—		2,091		2,625		—			4,716
Indefinite-lived intangible assets	—		—		144		14		—			158
Definite-lived intangible assets, net	—		—		1,426		6,598		(47		)	7,977
Other long-term assets	82		1,611		279		618		(1,749		)	841
Total assets	$	2,358	$	5,598	$	5,427	$	11,683	$	(7,696	)	$	17,370
Accounts payable and accrued liabilities	$	142	$	109	$	286	$	296	$	(51	)	$	782
Current portion of long-term debt	—		27		4		41		(1		)	71
Other current liabilities	—		1		133		147		—			281
Total current liabilities	142		137		423		484		(52		)	1,134
Long-term debt	700		4,348		32		8,317		(1,030		)	12,367
Other long-term liabilities	13		53		1,418		547		(934		)	1,097
Total liabilities	855		4,538		1,873		9,348		(2,016		)	14,598
Redeemable noncontrolling interests	—		—		—		1,078		—			1,078
Total Sinclair Broadcast Group equity	1,503		1,060		3,554		1,069		(5,684		)	1,502
Noncontrolling interests in consolidated subsidiaries	—		—		—		188		4			192
Total liabilities, redeemable noncontrolling interests, and equity	$	2,358	$	5,598	$	5,427	$	11,683	$	(7,696	)	$	17,370

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, 2020

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	25		$	627		$	671		$	(40	)	$	1,283
Media programming and production expenses	—			—			312			83			(12		)	383
Selling, general and administrative expenses	3			26			151			63			(25		)	218
Depreciation, amortization and other operating expenses	—			4			52			136			(2		)	190
Total operating expenses	3			30			515			282			(39		)	791
Operating (loss) income	(3		)	(5		)	112			389			(1		)	492
Equity in earnings of consolidated subsidiaries	257			67			—			—			(324		)	—
Interest expense	(4		)	(47		)	(1		)	(120		)	7			(165		)
Other income (expense)	1			8			(10		)	4			(3		)	—
Total other income (expense)	254			28			(11		)	(116		)	(320		)	(165		)
Income tax benefit (provision)	1			(9		)	(34		)	(12		)	—			(54		)
Net income	252			14			67			261			(321		)	273
Net income attributable to the redeemable noncontrolling interests	—			—			—			(12		)	—			(12		)
Net income attributable to the noncontrolling interests	—			—			—			(9		)	—			(9		)
Net income attributable to Sinclair Broadcast Group	$	252		$	14		$	67		$	240		$	(321	)	$	252
Comprehensive income	$	252		$	14		$	67		$	252		$	(321	)	$	264

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2019

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	705		$	89		$	(23	)	$	771
Media programming and production expenses	—			—			318			33			(16		)	335
Selling, general and administrative expenses	19			33			162			4			(1		)	217
Depreciation, amortization and other operating expenses	—			1			70			46			(4		)	113
Total operating expenses	19			34			550			83			(21		)	665
Operating (loss) income	(19		)	(34		)	155			6			(2		)	106
Equity in earnings of consolidated subsidiaries	56			118			—			—			(174		)	—
Interest expense	—			(51		)	(1		)	(5		)	3			(54		)
Other income (expense)	1			4			(11		)	—			—			(6		)
Total other income (expense)	57			71			(12		)	(5		)	(171		)	(60		)
Income tax benefit (provision)	4			17			(24		)	—			—			(3		)
Net income	42			54			119			1			(173		)	43
Net income attributable to the noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income attributable to Sinclair Broadcast Group	$	42		$	54		$	119		$	—		$	(173	)	$	42
Comprehensive income	$	42		$	54		$	119		$	1		$	(173	)	$	43

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2020

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	49		$	1,366		$	1,564		$	(87	)	$	2,892
Media programming and production expenses	—			—			640			599			(28		)	1,211
Selling, general and administrative expenses	6			70			319			130			(48		)	477
Depreciation, amortization and other operating expenses	—			5			103			283			(6		)	385
Total operating expenses	6			75			1,062			1,012			(82		)	2,073
Operating (loss) income	(6		)	(26		)	304			552			(5		)	819
Equity in earnings of consolidated subsidiaries	386			240			—			—			(626		)	—
Interest expense	(7		)	(102		)	(2		)	(247		)	13			(345		)
Other (expense) income	(1		)	6			(19		)	12			(6		)	(8		)
Total other income (expense)	378			144			(21		)	(235		)	(619		)	(353		)
Income tax benefit (provision)	3			20			(40		)	(25		)	—			(42		)
Net income	375			138			243			292			(624		)	424
Net income attributable to the redeemable noncontrolling interests	—			—			—			(32		)	—			(32		)
Net income attributable to the noncontrolling interests	—			—			—			(17		)	—			(17		)
Net income attributable to Sinclair Broadcast Group	$	375		$	138		$	243		$	243		$	(624	)	$	375
Comprehensive income	$	375		$	138		$	243		$	283		$	(624	)	$	415

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2019

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,361		$	172		$	(40	)	$	1,493
Media programming and production expenses	—			—			619			63			(28		)	654
Selling, general and administrative expenses	21			59			318			9			(2		)	405
Depreciation, amortization and other operating expenses	—			2			148			90			(6		)	234
Total operating expenses	21			61			1,085			162			(36		)	1,293
Operating (loss) income	(21		)	(61		)	276			10			(4		)	200
Equity in earnings of consolidated subsidiaries	80			207			—			—			(287		)	—
Interest expense	—			(104		)	(2		)	(9		)	7			(108		)
Other income (expense)	1			5			(23		)	(1		)	—			(18		)
Total other income (expense)	81			108			(25		)	(10		)	(280		)	(126		)
Income tax benefit (provision)	4			29			(41		)	—			—			(8		)
Net income	64			76			210			—			(284		)	66
Net income attributable to the noncontrolling interests	—			—			—			(3		)	1			(2		)
Net income (loss) attributable to Sinclair Broadcast Group	$	64		$	76		$	210		$	(3	)	$	(283	)	$	64
Comprehensive income	$	64		$	76		$	210		$	—		$	(284	)	$	66

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2020

(in millions) (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	$	(124	)	$	(98	)	$	313		$	243		$	—		$	334
NET CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisition of property and equipment	—			(6		)	(83		)	(13		)	5			(97		)
Spectrum repack reimbursements	—			—			52			—			—			52
Proceeds from the sale of assets	—			—			18			—			—			18
Purchases of investments	(1		)	(5		)	(22		)	(20		)	—			(48		)
Other, net	1			—			(8		)	11			—			4
Net cash flows used in investing activities	—			(11		)	(43		)	(22		)	5			(71		)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing	—			648			—			225			—			873
Repayments of notes payable, commercial bank financing and finance leases	—			(663		)	(2		)	(263		)	—			(928		)
Repurchase of outstanding Class A Common Stock	(261		)	—			—			—			—			(261		)
Dividends paid on Class A and Class B Common Stock	(35		)	—			—			—			—			(35		)
Dividends paid on redeemable subsidiary preferred equity	—			—			—			(24		)	—			(24		)
Redemption of redeemable subsidiary preferred equity	—			—			—			(198		)	—			(198		)
Distributions to noncontrolling interests, net	—			—			—			(7		)	—			(7		)
Distributions to redeemable noncontrolling interests	—			—			—			(378		)	—			(378		)
Increase (decrease) in intercompany payables	420			(65		)	(268		)	(82		)	(5		)	—
Other, net	—			—			—			(16		)	—			(16		)
Net cash flows from (used in) financing activities	124			(80		)	(270		)	(743		)	(5		)	(974		)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			(189		)	—			(522		)	—			(711		)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			357			3			973			—			1,333
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	168		$	3		$	451		$	—		$	622

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2019

(in millions) (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	$	—		$	(122	)	$	328		$	22		$	(5	)	$	223
NET CASH FLOWS USED IN INVESTING ACTIVITIES
Acquisition of property and equipment	—			(2		)	(64		)	(1		)	5			(62		)
Spectrum repack reimbursements	—			—			22			—			—			22
Purchases of investments	(2		)	(9		)	(30		)	(6		)	—			(47		)
Other, net	—			2			—			3			—			5
Net cash flows used in investing activities	(2		)	(9		)	(72		)	(4		)	5			(82		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			—			—			1			—			1
Repayments of notes payable, commercial bank financing and finance leases	—			(103		)	(2		)	(25		)	21			(109		)
Repurchase of outstanding Class A Common Stock	(125		)	—			—			—			—			(125		)
Dividends paid on Class A and Class B Common Stock	(36		)	—			—			—			—			(36		)
Distributions to noncontrolling interests	—			—			—			(3		)	—			(3		)
Increase (decrease) in intercompany payables	163			164			(270		)	(36		)	(21		)	—
Net cash flows from (used in) financing activities	2			61			(272		)	(63		)	—			(272		)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			(70		)	(16		)	(45		)	—			(131		)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			962			19			79			—			1,060
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	892		$	3		$	34		$	—		$	929