(State or other jurisdiction of Incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | No | ☐ |
☒ | No | ☐ |
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Yes | No | ☒ |
Number of shares outstanding as of | ||||||||
Title of each class | May 5, 2023 | |||||||
Class A Common Stock | ||||||||
Class B Common Stock |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Income taxes receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Indefinite-lived intangible assets | |||||||||||
Customer relationships, net | |||||||||||
Other definite-lived intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets (a) | $ | $ | |||||||||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Current portion of notes payable, finance leases, and commercial bank financing | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Current portion of program contracts payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Notes payable, finance leases, and commercial bank financing, less current portion | |||||||||||
Operating lease liabilities, less current portion | |||||||||||
Program contracts payable, less current portion | |||||||||||
Deferred tax liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities (a) | |||||||||||
Commitments and contingencies (See Note 5) | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Shareholders' equity: | |||||||||||
Class A Common Stock, $ | |||||||||||
Class B Common Stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Total Sinclair Broadcast Group shareholders’ equity | |||||||||||
Noncontrolling interests | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities, redeemable noncontrolling interests, and equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
REVENUES: | |||||||||||
Media revenues | $ | $ | |||||||||
Non-media revenues | |||||||||||
Total revenues | |||||||||||
OPERATING EXPENSES: | |||||||||||
Media programming and production expenses | |||||||||||
Media selling, general and administrative expenses | |||||||||||
Amortization of program contract costs | |||||||||||
Non-media expenses | |||||||||||
Depreciation of property and equipment | |||||||||||
Corporate general and administrative expenses | |||||||||||
Amortization of definite-lived intangible assets | |||||||||||
Gain on deconsolidation of subsidiary | ( | ||||||||||
Loss (gain) on asset dispositions and other, net of impairment | ( | ||||||||||
Total operating expenses (gains) | ( | ||||||||||
Operating income | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest expense including amortization of debt discount and deferred financing costs | ( | ( | |||||||||
Income from equity method investments | |||||||||||
Other income (expense), net | ( | ||||||||||
Total other expense, net | ( | ( | |||||||||
(Loss) income before income taxes | ( | ||||||||||
INCOME TAX BENEFIT (PROVISION) | ( | ||||||||||
NET INCOME | |||||||||||
Net loss (income) attributable to the redeemable noncontrolling interests | ( | ||||||||||
Net income attributable to the noncontrolling interests | ( | ( | |||||||||
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | $ | $ | |||||||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | |||||||||||
Basic earnings per share | $ | $ | |||||||||
Diluted earnings per share | $ | $ | |||||||||
Basic weighted average common shares outstanding (in thousands) | |||||||||||
Diluted weighted average common and common equivalent shares outstanding (in thousands) |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | $ | |||||||||
Unrealized loss on interest rate swap | ( | ||||||||||
Share of other comprehensive income of equity method investments | |||||||||||
Comprehensive income | |||||||||||
Comprehensive loss (income) attributable to the redeemable noncontrolling interests | ( | ||||||||||
Comprehensive income attributable to the noncontrolling interests | ( | ( | |||||||||
Comprehensive income attributable to Sinclair Broadcast Group | $ | $ |
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sinclair Broadcast Group Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total (Deficit) Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Values | Shares | Values | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid on Class A and Class B Common Stock ($ | — | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Class A Common Stock | — | ( | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock issued pursuant to employee benefit plans | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidation of subsidiary | ( | — | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, March 31, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sinclair Broadcast Group Shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Values | Shares | Values | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared and paid on Class A and Class B Common Stock ($ | — | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of Class A Common Stock | — | ( | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock issued pursuant to employee benefit plans | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of redeemable subsidiary preferred equity | ( | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, March 31, 2023 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||
Amortization of sports programming rights | |||||||||||
Amortization of definite-lived intangible and other assets | |||||||||||
Depreciation of property and equipment | |||||||||||
Amortization of program contract costs | |||||||||||
Stock-based compensation | |||||||||||
Deferred tax (benefit) provision | ( | ||||||||||
Loss (gain) on asset dispositions and other, net of impairment | ( | ||||||||||
Gain on deconsolidation of subsidiary | ( | ||||||||||
Income from equity method investments | ( | ( | |||||||||
Loss from investments | |||||||||||
Distributions from investments | |||||||||||
Sports programming rights payments | ( | ||||||||||
Rebate payments to distributors | ( | ||||||||||
Change in assets and liabilities, net of acquisitions and deconsolidation of subsidiary: | |||||||||||
Decrease in accounts receivable | |||||||||||
Increase in prepaid expenses and other current assets | ( | ( | |||||||||
Increase in accounts payable and accrued and other current liabilities | |||||||||||
Net change in net income taxes payable/receivable | ( | ||||||||||
Decrease in program contracts payable | ( | ( | |||||||||
Other, net | |||||||||||
Net cash flows from operating activities | |||||||||||
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||||||||||
Acquisition of property and equipment | ( | ( | |||||||||
Spectrum repack reimbursements | |||||||||||
Proceeds from sale of assets | |||||||||||
Deconsolidation of subsidiary cash | ( | ||||||||||
Purchases of investments | ( | ( | |||||||||
Distributions from investments | |||||||||||
Net cash flows used in investing activities | ( | ( | |||||||||
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||||||||||
Repayments of notes payable, commercial bank financing, and finance leases | ( | ( | |||||||||
Repurchase of outstanding Class A Common Stock | ( | ( | |||||||||
Dividends paid on Class A and Class B Common Stock | ( | ( | |||||||||
Dividends paid on redeemable subsidiary preferred equity | ( | ||||||||||
Repurchase of redeemable subsidiary preferred equity | ( | ||||||||||
Distributions to noncontrolling interests, net | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net cash flows used in financing activities | ( | ( | |||||||||
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ( | ( | |||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | |||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ | $ |
For the three months ended March 31, 2023 | Broadcast | Other | Eliminations | Total | |||||||||||||||||||||||||
Distribution revenue | $ | $ | $ | $ | |||||||||||||||||||||||||
Advertising revenue | ( | ||||||||||||||||||||||||||||
Other media, non-media, and intercompany revenues | ( | ||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
For the three months ended March 31, 2022 | Broadcast | Local sports | Other | Eliminations | Total | ||||||||||||||||||||||||
Distribution revenue | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Advertising revenue | ( | ||||||||||||||||||||||||||||
Other media, non-media, and intercompany revenues | ( | ||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
As of March 31, 2023 | As of December 31, 2022 | ||||||||||
Equity method investments | $ | $ | |||||||||
Other investments | |||||||||||
Note receivable | |||||||||||
Post-retirement plan assets | |||||||||||
Other | |||||||||||
Total other assets | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Income (Numerator) | |||||||||||
Net income | $ | $ | |||||||||
Net loss (income) attributable to the redeemable noncontrolling interests | ( | ||||||||||
Net income attributable to the noncontrolling interests | ( | ( | |||||||||
Numerator for basic and diluted earnings per common share available to common shareholders | $ | $ | |||||||||
Shares (Denominator) | |||||||||||
Basic weighted-average common shares outstanding | |||||||||||
Dilutive effect of stock-settled appreciation rights and outstanding stock options | |||||||||||
Diluted weighted-average common and common equivalent shares outstanding |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Weighted-average stock-settled appreciation rights and outstanding stock options excluded |
As of March 31, 2023 | Broadcast | Other & Corporate | Eliminations | Consolidated | ||||||||||||||||||||||
Assets | $ | $ | (d) | $ | $ |
For the three months ended March 31, 2023 | Broadcast | Other & Corporate | Eliminations | Consolidated | ||||||||||||||||||||||
Revenue | $ | (b) | $ | $ | ( | (a) | $ | |||||||||||||||||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | ( | |||||||||||||||||||||||||
Amortization of program contract costs | ||||||||||||||||||||||||||
Corporate general and administrative expenses | ||||||||||||||||||||||||||
(Gain) loss on asset dispositions and other, net of impairment | ( | |||||||||||||||||||||||||
Operating income (loss) | ( | |||||||||||||||||||||||||
Interest expense including amortization of debt discount and deferred financing costs | ( | |||||||||||||||||||||||||
Income from equity method investments |
For the three months ended March 31, 2022 | Broadcast | Local sports (c) | Other & Corporate | Eliminations | Consolidated | |||||||||||||||||||||||||||
Revenue | $ | (b) | $ | $ | $ | ( | (a) | $ | ||||||||||||||||||||||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | ( | |||||||||||||||||||||||||||||||
Amortization of sports programming rights | ||||||||||||||||||||||||||||||||
Amortization of program contract costs | ||||||||||||||||||||||||||||||||
Corporate general and administrative expenses | ||||||||||||||||||||||||||||||||
Gain on deconsolidation of subsidiary | ( | ( | ||||||||||||||||||||||||||||||
Gain on asset dispositions and other, net of impairment | ( | ( | ||||||||||||||||||||||||||||||
Operating income (loss) | ( | |||||||||||||||||||||||||||||||
Interest expense including amortization of debt discount and deferred financing costs | ( | |||||||||||||||||||||||||||||||
Income from equity method investments |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Accounts receivable, net | $ | $ | |||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill and indefinite-lived intangible assets | |||||||||||
Definite-lived intangible assets, net | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Other current liabilities | $ | $ | |||||||||
Notes payable, finance leases and commercial bank financing, less current portion | |||||||||||
Program contracts payable, less current portion | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | $ | $ |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Face Value | Fair Value | Face Value | Fair Value | ||||||||||||||||||||
Level 1: | |||||||||||||||||||||||
Investments in equity securities | N/A | $ | N/A | $ | |||||||||||||||||||
Money market funds | N/A | N/A | |||||||||||||||||||||
Deferred compensation assets | |||||||||||||||||||||||
Deferred compensation liabilities | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||
Investments in equity securities (a) | N/A | N/A | |||||||||||||||||||||
Interest rate swap (b) | N/A | N/A | |||||||||||||||||||||
STG (c): | |||||||||||||||||||||||
Term Loan B-2, due September 30, 2026 | |||||||||||||||||||||||
Term Loan B-3, due April 1, 2028 | |||||||||||||||||||||||
Term Loan B-4, due April 21, 2029 | |||||||||||||||||||||||
Debt of variable interest entities (c) | |||||||||||||||||||||||
Debt of non-media subsidiaries (c) | |||||||||||||||||||||||
Level 3: | |||||||||||||||||||||||
Investments in equity securities (d) | N/A | N/A |
Options and Warrants | |||||
Three Months Ended March 31, 2023 | |||||
Fair value at December 31, 2022 | $ | ||||
Measurement adjustments | |||||
Fair value at March 31, 2023 | $ |
Options and Warrants | |||||
Three Months Ended March 31, 2022 | |||||
Fair value at December 31, 2021 | $ | ||||
Measurement adjustments | ( | ||||
Fair value at March 31, 2022 | $ |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||||||||||||||
Other current assets | ( | ||||||||||||||||||||||||||||||||||
Total current assets | ( | ||||||||||||||||||||||||||||||||||
Property and equipment, net | ( | ||||||||||||||||||||||||||||||||||
Investment in equity of consolidated subsidiaries | ( | ||||||||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Definite-lived intangible assets, net | ( | ||||||||||||||||||||||||||||||||||
Other long-term assets | ( | ||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Current portion of long-term debt | ( | ||||||||||||||||||||||||||||||||||
Other current liabilities | ( | ||||||||||||||||||||||||||||||||||
Total current liabilities | ( | ||||||||||||||||||||||||||||||||||
Long-term debt | ( | ||||||||||||||||||||||||||||||||||
Other long-term liabilities | ( | ||||||||||||||||||||||||||||||||||
Total liabilities | ( | ||||||||||||||||||||||||||||||||||
Total Sinclair Broadcast Group equity | ( | ||||||||||||||||||||||||||||||||||
Noncontrolling interests in consolidated subsidiaries | ( | ( | |||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | $ | ( | $ |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||||||||||||||
Other current assets | ( | ||||||||||||||||||||||||||||||||||
Total current assets | ( | ||||||||||||||||||||||||||||||||||
Property and equipment, net | ( | ||||||||||||||||||||||||||||||||||
Investment in equity of consolidated subsidiaries | ( | ||||||||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Definite-lived intangible assets, net | ( | ||||||||||||||||||||||||||||||||||
Other long-term assets | ( | ||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Current portion of long-term debt | ( | ||||||||||||||||||||||||||||||||||
Other current liabilities | ( | ||||||||||||||||||||||||||||||||||
Total current liabilities | ( | ||||||||||||||||||||||||||||||||||
Long-term debt | ( | ||||||||||||||||||||||||||||||||||
Other long-term liabilities | ( | ||||||||||||||||||||||||||||||||||
Total liabilities | ( | ||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||||||||||||||||||||||
Total Sinclair Broadcast Group equity (deficit) | ( | ( | |||||||||||||||||||||||||||||||||
Noncontrolling interests in consolidated subsidiaries | ( | ( | |||||||||||||||||||||||||||||||||
Total liabilities, redeemable noncontrolling interests, and equity | $ | $ | $ | $ | $ | ( | $ |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||||||||||||||
Net revenue | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Media programming and production expenses | ( | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | ( | ||||||||||||||||||||||||||||||||||
Depreciation, amortization and other operating expenses | ( | ||||||||||||||||||||||||||||||||||
Total operating expenses | ( | ||||||||||||||||||||||||||||||||||
Operating (loss) income | ( | ( | ( | ||||||||||||||||||||||||||||||||
Equity in earnings of consolidated subsidiaries | ( | ||||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Other (expense) income | ( | ||||||||||||||||||||||||||||||||||
Total other income (expense) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Income tax benefit (provision) | ( | ||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||||||||||||||
Net loss attributable to the redeemable noncontrolling interests | |||||||||||||||||||||||||||||||||||
Net income attributable to the noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to Sinclair Broadcast Group | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ | $ | ( | $ |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||||||||||||||
Net revenue | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Media programming and production expenses | ( | ||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | ( | ||||||||||||||||||||||||||||||||||
Gain on deconsolidation of subsidiary | ( | ( | |||||||||||||||||||||||||||||||||
Depreciation, amortization and other operating expenses | ( | ||||||||||||||||||||||||||||||||||
Total operating (gains) expenses | ( | ( | ( | ||||||||||||||||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||||||||||||||
Equity in (loss) earnings of consolidated subsidiaries | ( | ( | |||||||||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Other income (expense) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total other (expense) income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Income tax (provision) benefit | ( | ( | ( | ||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||||||||||||||
Net income attributable to the redeemable noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Net income attributable to the noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Net income (loss) attributable to Sinclair Broadcast Group | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( | $ | ( | $ |
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 | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||||||
Acquisition of property and equipment | ( | ( | ( | ||||||||||||||||||||||||||||||||
Spectrum repack reimbursements | |||||||||||||||||||||||||||||||||||
Purchases of investments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Distributions from investments | |||||||||||||||||||||||||||||||||||
Net cash flows used in investing activities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||||||
Repayments of notes payable, commercial bank financing and finance leases | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Repurchase of outstanding Class A Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
Dividends paid on Class A and Class B Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
Redemption of redeemable subsidiary preferred equity | ( | ( | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Increase (decrease) in intercompany payables | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other, net | ( | ( | |||||||||||||||||||||||||||||||||
Net cash flows from (used in) financing activities | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ( | ( | |||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | |||||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ | $ | $ | $ | $ | $ |
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 | $ | ( | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||||||
Acquisition of property and equipment | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Spectrum repack reimbursements | |||||||||||||||||||||||||||||||||||
Proceeds from the sale of assets | |||||||||||||||||||||||||||||||||||
Deconsolidation of subsidiary cash | ( | ( | |||||||||||||||||||||||||||||||||
Purchases of investments | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Distributions from investments | |||||||||||||||||||||||||||||||||||
Net cash flows from (used in) investing activities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||||||
Repayments of notes payable, commercial bank financing and finance leases | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Repurchase of outstanding Class A Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
Dividends paid on Class A and Class B Common Stock | ( | ( | |||||||||||||||||||||||||||||||||
Dividends paid on redeemable subsidiary preferred equity | ( | ( | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||
Increase (decrease) in intercompany payables | ( | ( | |||||||||||||||||||||||||||||||||
Other, net | ( | ( | |||||||||||||||||||||||||||||||||
Net cash flows from (used in) financing activities | ( | ( | ( | ||||||||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ( | ( | ( | ||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | |||||||||||||||||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ | $ | $ | $ | $ | $ |
Month | Market | Number of Stations | Company Stations | |||||||||||||||||
March 2023 | Rochester, NY | 4 | WHAM-TV(a) (ABC), WUHF (FOX) | |||||||||||||||||
March 2023 | Des Moines, IA | 4 | KDSM-TV (FOX) |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Media revenues | $ | 766 | $ | 1,275 | |||||||
Non-media revenues | 7 | 13 | |||||||||
Total revenues | 773 | 1,288 | |||||||||
Media programming and production expenses | 398 | 758 | |||||||||
Media selling, general and administrative expenses | 191 | 220 | |||||||||
Depreciation and amortization expenses | 65 | 121 | |||||||||
Amortization of program contract costs | 22 | 25 | |||||||||
Non-media expenses | 12 | 13 | |||||||||
Corporate general and administrative expenses | 58 | 47 | |||||||||
Gain on deconsolidation of subsidiary | — | (3,357) | |||||||||
Loss (gain) on asset dispositions and other, net of impairment | 6 | (5) | |||||||||
Operating income | $ | 21 | $ | 3,466 | |||||||
Net income attributable to Sinclair Broadcast Group | $ | 185 | $ | 2,587 |
Three Months Ended March 31, | Percent Change Increase / (Decrease) | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Revenue: | |||||||||||||||||
Distribution revenue | $ | 380 | $ | 392 | (3)% | ||||||||||||
Advertising revenue | 268 | 282 | (5)% | ||||||||||||||
Other media revenues (a) | 28 | 47 | (40)% | ||||||||||||||
Media revenues | $ | 676 | $ | 721 | (6)% | ||||||||||||
Operating Expenses: | |||||||||||||||||
Media programming and production expenses | $ | 358 | $ | 350 | 2% | ||||||||||||
Media selling, general and administrative expenses (b) | 160 | 156 | 3% | ||||||||||||||
Depreciation and amortization expenses | 59 | 60 | (2)% | ||||||||||||||
Amortization of program contract costs | 17 | 20 | (15)% | ||||||||||||||
Corporate general and administrative expenses | 33 | 43 | (23)% | ||||||||||||||
Gain on asset dispositions and other, net of impairment | (2) | (5) | (60)% | ||||||||||||||
Operating income | $ | 51 | $ | 97 | (47)% |
Percent of Advertising Revenue (Excluding Digital) for the | |||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Local news | 34% | 34% | |||||||||
Syndicated/Other programming | 24% | 26% | |||||||||
Network programming | 19% | 21% | |||||||||
Sports programming | 19% | 15% | |||||||||
Paid programming | 4% | 4% | |||||||||
Percent of Advertising Revenue for the | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
# of Channels (a) | 2023 | 2022 | |||||||||||||||
ABC | 40 | 29% | 30% | ||||||||||||||
FOX | 55 | 28% | 23% | ||||||||||||||
CBS | 30 | 21% | 21% | ||||||||||||||
NBC | 25 | 12% | 16% | ||||||||||||||
CW | 46 | 5% | 5% | ||||||||||||||
MNT | 40 | 4% | 4% | ||||||||||||||
Other | 401 | 1% | 1% | ||||||||||||||
Total | 637 |
Three Months Ended March 31, | |||||
2022 | |||||
Revenue: | (b) | ||||
Distribution revenue | $ | 433 | |||
Advertising revenue | 44 | ||||
Other media revenue | 5 | ||||
Media revenue | $ | 482 | |||
Operating Expenses: | |||||
Media programming and production expenses | $ | 376 | |||
Media selling, general and administrative expenses (a) | 55 | ||||
Depreciation and amortization expenses | 54 | ||||
Corporate general and administrative | 1 | ||||
Operating loss (a) | $ | (4) | |||
Income from equity method investments | $ | 10 |
Three Months Ended March 31, | Percent Change Increase / (Decrease) | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Revenue: | |||||||||||||||||
Distribution revenue | $ | 46 | $ | 48 | (4)% | ||||||||||||
Advertising revenue | 46 | 68 | (32)% | ||||||||||||||
Other media revenues | 4 | 4 | —% | ||||||||||||||
Media revenues (a) | $ | 96 | $ | 120 | (20)% | ||||||||||||
Non-media revenues (b) | $ | 8 | $ | 14 | (43)% | ||||||||||||
Operating Expenses: | |||||||||||||||||
Media expenses (c) | $ | 77 | $ | 89 | (13)% | ||||||||||||
Non-media expenses (d) | $ | 12 | $ | 14 | (14)% | ||||||||||||
Amortization of program contract costs | $ | 5 | $ | 5 | —% | ||||||||||||
Operating (loss) income | $ | (5) | $ | 18 | n/m | ||||||||||||
Income from equity method investments | $ | 31 | $ | 2 | n/m |
Three Months Ended March 31, | Percent Change Increase/ (Decrease) | ||||||||||||||||
2023 | 2022 | ||||||||||||||||
Corporate general and administrative expenses | $ | 58 | $ | 47 | 23% | ||||||||||||
Gain on deconsolidation of subsidiary | $ | — | $ | (3,357) | n/m | ||||||||||||
Interest expense including amortization of debt discount and deferred financing costs | $ | 74 | $ | 115 | (36)% | ||||||||||||
Other income (expense), net | $ | 11 | $ | (60) | n/m | ||||||||||||
Income tax benefit (provision) | $ | 204 | $ | (687) | n/m | ||||||||||||
Net loss (income) attributable to the redeemable noncontrolling interests | $ | 4 | $ | (4) | n/m | ||||||||||||
Net income attributable to the noncontrolling interests | $ | (12) | $ | (25) | (52)% |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash flows from operating activities | $ | 62 | $ | 70 | |||||||
Cash flows used in investing activities: | |||||||||||
Acquisition of property and equipment | $ | (20) | $ | (21) | |||||||
Proceeds from the sale of assets | — | 4 | |||||||||
Purchases of investments | (33) | (5) | |||||||||
Deconsolidation of subsidiary cash | — | (315) | |||||||||
Distributions from investments | 8 | 70 | |||||||||
Spectrum repack reimbursements | 1 | 1 | |||||||||
Net cash flows used in investing activities | $ | (44) | $ | (266) | |||||||
Cash flows used in financing activities: | |||||||||||
Repayments of notes payable, commercial bank financing, and finance leases | $ | (9) | $ | (7) | |||||||
Dividends paid on Class A and Class B Common Stock | (18) | (18) | |||||||||
Repurchase of outstanding Class A Common Stock | (53) | (68) | |||||||||
Repurchase of redeemable subsidiary preferred equity | (190) | — | |||||||||
Distributions to noncontrolling interests, net | (4) | (3) | |||||||||
Other, net | (5) | (6) | |||||||||
Net cash flows used in financing activities | $ | (279) | $ | (102) |
Period | Total Number of Shares Purchased (a) | 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: (b) | ||||||||||||||||||||||||||
01/01/23 - 01/31/23 | — | $ | — | — | $ | — | ||||||||||||||||||||
02/01/23 - 02/28/23 | — | $ | — | — | $ | — | ||||||||||||||||||||
03/01/23 - 03/31/23 | 3,583,213 | $ | 14.67 | 3,583,213 | $ | 646 |
Exhibit Number | Description | |||||||
10.1* | ||||||||
10.2* | ||||||||
31.1** | ||||||||
31.2** | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101* | The Company's Consolidated Financial Statements and related Notes for the quarter ended March 31, 2023 from this Quarterly Report on Form 10-Q, formatted in iXBRL (Inline eXtensible Business Reporting Language).* | |||||||
104 | Cover Page Interactive Data File (included in Exhibit 101). |
SINCLAIR BROADCAST GROUP, INC. | ||||||||
By: | /s/ David R. Bochenek | |||||||
David R. Bochenek | ||||||||
Senior Vice President/Chief Accounting Officer | ||||||||
(Authorized Officer and Chief Accounting Officer) |
The Plan and Other Agreements | The Restricted Shares that you are receiving are granted pursuant and subject in all respects to the applicable provisions of the Plan, which is incorporated herein by reference. Capitalized terms not defined in this Agreement will have the meanings ascribed to them in the Plan. The attached Notice, this Agreement and the Plan constitute the entire understanding between you and the Company regarding this Award. Any prior agreements, commitments or negotiations concerning this Award are superseded. This Agreement may be amended by the Committee without your consent; however, if any such amendment would materially impair your rights or obligations under this Agreement, this Agreement may be amended only by another written agreement, signed by you and the Company. | ||||
Payment For Shares | No cash payment is required for the Shares you receive. You are receiving the Shares in consideration for Services rendered by you. | ||||
Vesting | The Shares that you are receiving will vest in installments, as shown in the Equity Portal. No additional Shares vest after your Service as an Employee or a Consultant has terminated for any reason. Notwithstanding anything to the contrary contained herein, your Restricted Shares with respect to which the restrictions have not yet lapsed shall immediately vest on the consummation of a Change in Control. | ||||
Shares Restricted | Unvested Shares will be considered “Restricted Shares.” Except to the extent permitted by the Committee, you may not sell, transfer, assign, pledge or otherwise dispose of Restricted Shares. | ||||
Forfeiture | If your Service terminates for any reason other than a Qualifying Termination (as defined below) then your Shares will be forfeited to the extent that they have not vested before the termination date and do not vest as a result of termination. This means that the Restricted Shares will immediately revert to the Company. You receive no payment for Restricted Shares that are forfeited. The Company Group determines when your Service terminates for this purpose and all purposes under the Plan and its determinations are conclusive and binding on all persons. Unvested Restricted Shares shall vest immediately on the date of termination of your Service with the Company Group if your Service with the Company Group is terminated due to a Qualifying Termination before the date on which the Shares fully vest; provided, in the case of termination as a result of Retirement (as defined below), you must agree to enter into an agreement reasonably requested by the Company Group which provides for |
(a) a full release of the Company Group for any claims you may have, (b) an agreement not to disparage the Company Group and (c) an agreement to comply with any previously agreed covenants not to compete or solicit the Company Group’s employees and/or customers to which you are otherwise subject. You acknowledge that, notwithstanding that Restricted Shares may be unvested following attainment of eligibility for Retirement for purposes of this Agreement, such Shares (and related dividends paid thereon) may nevertheless be includible in income for federal, state and local tax purposes. For purposes of this Award, the term “Qualifying Termination” shall mean a termination of your Service for reasons of your death, Disability, termination by the Company Group without Cause (as defined below), termination by you for Good Reason (as defined below) or termination as a result of Retirement. For the purposes of this Award, the term “Cause” shall have the meaning set forth in your employment agreement with the Company Group or, in the event there is no employment agreement between you and the Company Group, shall mean any of the following: (i) the wrongful appropriation for your own use or benefit of property or money entrusted to you by the Company Group; (ii) your conviction or granting of a Probation Before Judgment (or similar such finding or determination if not by a court of competent jurisdiction) of a crime involving moral turpitude; (iii) your continued willful disregard of your duties and responsibilities hereunder after written notice of such disregard and the reasonable opportunity to correct such disregard; (iv) your continued violation of Company Group policy after written notice of such violations (such policy may include policies as to drug or alcohol abuse) and the reasonable opportunity to cure such violations; (v) any willful misconduct or gross negligence by you which is reasonably likely (in the opinion of the Company Group’s FCC counsel) to actually jeopardize a Federal Communications Commission license of any broadcast station owned directly or indirectly by the Company Group or programmed, directly or indirectly, by the Company Group; or (vi) your continued insubordination and/or your repeated failure to follow the reasonable directives of your supervisor or the Board of Directors after written notice of such insubordination or the failure to follow such reasonable directives. In the event that there is no employment agreement between you and the Company Group, and except in the occurrence of an event listed in clauses (i) through (vi) above which, by its nature, cannot reasonably be expected to be cured, you shall have ten (10) business days from the delivery of written notice by the Company Group within which to cure any acts constituting Cause; provided however, that, if the Company Group reasonably expects irreparable injury from a delay of ten (10) business days, the Company Group may give you notice of such shorter period within which to cure as is reasonable under the circumstances. |
For purposes of this Award, the term “Good Reason” shall have the meaning set forth in your employment agreement with the Company Group or, in the event there is no employment agreement between you and the Company Group, shall mean any of the following without your approval: (i) a more than five percent (5.0%) reduction in your compensation (other than a reduction consistent with a company-wide reduction in pay affecting substantially all similarly situated executive employees of the Company Group); (ii) the relocation of your principal place of employment more than fifty (50) miles from its present location; or (iii) a material reduction in your duties or a material change in your working conditions. In the event that there is no employment agreement between you and the Company Group, you cannot terminate employment for Good Reason unless you have provided written notice to the Company Group of the existence of the alleged circumstances providing grounds for termination for Good Reason within ten (10) business days of the initial existence of such grounds and the Company Group has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances. If you do not terminate employment for Good Reason within forty-five (45) days after the first occurrence of the applicable grounds, then you will be deemed to have waived the right to terminate for Good Reason with respect to such grounds for purposes of this Agreement. For purposes of this Award, the term “Retirement” shall mean your voluntary separation from service with the Company Group either (i) after age 65 or (ii) after age 55, if at such time you have had at least ten (10) years of service with the Company Group. | |||||
Leaves of Absence | For purposes of this Award, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave of absence was approved by the Company Group in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you immediately return to active work. If you go on a leave of absence, then the vesting schedule specified in the Equity Portal may be adjusted in accordance with the Company Group’s leave of absence policy or the terms of your leave. If you commence working on a part-time basis, then the vesting schedule specified in the Equity Portal may be adjusted in accordance with the Company Group’s part-time work policy or the terms of an agreement between you and the Company Group pertaining to your part-time schedule. | ||||
Stock Certificates or Book Entry Form | The Restricted Shares will be evidenced by either stock certificates or book entries on the Company’s stock transfer records pending expiration of the restrictions thereon. If you are issued certificates for the Restricted Shares, the certificates will have stamped on them a special legend referring to the forfeiture restrictions. In addition to or in lieu of imposing the legend, the Company may hold the certificates in escrow. As your vested percentage increases, you may request (at reasonable intervals) that the Company release to you a non-legended certificate for your vested Shares. |
Shareholder Rights | During the period of time between the Grant Date and the date the Restricted Shares become vested, you shall have the same voting, dividend, and other rights as the Company’s other stockholders. | ||||
Withholding Taxes and Stock Withholding | Regardless of any action any member of the Company Group employing you (“Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or your Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Shares received under this Award, including the award or vesting of such Shares, the subsequent sale of Shares under this Award and the receipt of any dividends; and (2) do not commit to structure the terms of the award to reduce or eliminate your liability for Tax-Related Items. No stock certificates will be released to you or no notations on any Restricted Shares issued in book-entry form will be removed, as applicable, unless you have paid or made adequate arrangements satisfactory to the Company and/or your Employer to satisfy all withholding and payment on account obligations of the Company and/or your Employer. At your election made through an online election process established by, or on behalf of the Company Group, either (a) Shares transferable to you hereunder shall be reduced by a number of Shares with a Fair Market Value (calculated on the trading day preceding the date on which the taxable event occurs as described below) which the Company Group is required to withhold under the then applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”), or its successors, or any other federal, state or local tax withholding requirement (“Withholding”) or (b) you shall pay to the Company Group in immediately available funds the amount of such Withholding; provided, if you do not make such election prior to the time that such Withholding would be required, you shall be deemed to have elected the action under clause (a) of this paragraph. Such reductions shall occur, and Withholding shall be applicable, at the times the Restricted Shares become vested in accordance with this Agreement and the rules under the Code and, in order to facilitate withholding by the Company Group at such times, you shall make no election under Section 83(b) of the Code. An online election made by you pursuant to this paragraph shall remain in effect with respect to all Restricted Shares held by you until such time, as any, that you utilize the online election process to make an alternative election. |
Restrictions on Resale | You agree to not voluntarily or involuntarily transfer, sell, pledge, assign, give, hypothecate, encumber or otherwise dispose of any Restricted Shares until the restrictions on such shares lapse as shown in the Equity Portal. You agree not to sell any Shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as long as your Service continues and for such period of time after the termination of your Service as the Company Group may specify, or until the restrictions on such shares lapse as shown in the Equity Portal. | ||||
No Retention Rights | Neither this Award nor this Agreement gives you the right to be employed or retained by the Company Group in any capacity. The Company Group reserves the right to terminate your Service at any time, with or without cause. | ||||
Adjustments | The number of Restricted Shares covered by this Award will be subject to adjustment in the event of a stock split, a stock dividend or a similar change in Shares, and in other circumstances, as set forth in the Plan. The forfeiture provisions and restrictions described above will apply to all new, substitute or additional restricted shares or securities to which you are entitled by reason of this Award. | ||||
Successors and Assigns | Except as otherwise provided in the Plan or this Agreement, every term of this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees and assigns. | ||||
Notice | Any notice required or permitted under this Agreement will be given in writing and will be deemed effectively given upon the earliest of personal delivery, receipt or the third (3rd) full day following mailing with postage and fees prepaid, addressed to the other party hereto at the address last known in the Company Group’s records or at such other address as such party may designate by ten (10) days’ advance written notice to the other party hereto. | ||||
Applicable Law and Choice of Venue | This Agreement will be interpreted and enforced under the laws of the State of Maryland without application of the conflicts of law principles thereof. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this Award or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Maryland and agree that any such litigation will be conducted only in the courts of Maryland, or the federal courts of the United States located in Maryland and no other courts. |
Miscellaneous | You understand and acknowledge that (1) the Plan is entirely discretionary, (2) the Company Group and your Employer have reserved the right to amend, suspend or terminate the Plan at any time, (3) the grant of this Award does not in any way create any contractual or other right to receive additional grants of awards (or benefits in lieu of awards) at any time or in any amount and (4) all determinations with respect to any additional grants, including (without limitation) the times when awards will be granted, the number of Shares subject to awards, the purchase price and the vesting schedule, will be at the sole discretion of the Company. In the event of a conflict between the terms of this Award and the terms of your employment agreement or similar agreement, the terms of this Award will govern. The value of this Award will be an extraordinary item of compensation outside the scope of your employment contract, if any, and will not be considered a part of your normal or expected compensation for purposes of calculating severance, resignation, redundancy or end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. You understand and acknowledge that participation in the Plan ceases upon termination of your Service for any reason, except as may explicitly be provided otherwise in the Plan or this Agreement. You hereby authorize and direct your Employer to disclose to the Company Group any information regarding your employment, the nature and amount of your compensation and the fact and conditions of your participation in the Plan, as your Employer deems necessary or appropriate to facilitate the administration of the Plan. |
You consent to the collection, use and transfer of personal data as described in this subsection. You understand and acknowledge that the Company Group and your Employer hold certain personal information regarding you for the purpose of managing and administering the Plan, including (without limitation) your name, home address, telephone number, date of birth, social insurance or other government identification number, salary, nationality, job title, any Shares or directorships held in the Company and details of all awards or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in your favor (the “Data”). You further understand and acknowledge that the Company Group will transfer Data among itself as necessary for the purpose of implementation, administration and management of your participation in the Plan and that the Company Group may each further transfer Data to any third party assisting the Company Group in the implementation, administration and management of the Plan. You understand and acknowledge that the recipients of Data may be located in the United States or elsewhere, and that the laws of a recipient’s country of operation (e.g., the United States) may not have equivalent privacy protections as local laws where you reside or work. You authorize such recipients to receive, possess, use, retain and transfer Data, in electronic or other form, for the purpose of administering your participation in the Plan, including a transfer to any broker or other third party with whom you elect to deposit Shares acquired under the Plan of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf. You may, at any time, view the Data, require any necessary modifications of Data, make inquiries about the treatment of Data or withdraw the consents set forth in this subsection by contacting the Human Resources Department of the Company in writing. |
Name of Participant: | [Name of Participant] | ||||
Grant Date: | March 2, 2023 | ||||
Total Number of Shares Covered by SAR Award: | [Total Shares] | ||||
Exercise Price Per Share: | $15.97 | ||||
Vesting Commencement Date: | March 2, 2023 | ||||
Vesting Schedule: | This SAR Award shall vest fifty percent (50%) on each anniversary of the Grant Date, subject to the Stock Appreciation Right Agreement. Fractional vested Shares will be rounded up to the nearest whole number of Shares at all times. | ||||
Expiration Date: | March 2, 2033 This SAR Award expires earlier if your Service terminates earlier, as described in the Stock Appreciation Right Agreement. |
PARTICIPANT | SINCLAIR BROADCAST GROUP, INC. | ||||
Participant’s Signature Participant’s Printed Name | By: Name: Title: |
The Plan and Other Agreements | The SAR Award that you are receiving is granted pursuant and subject in all respects to the applicable provisions of the Plan, which is incorporated herein by reference. Capitalized terms not defined in this Agreement will have the meanings ascribed to them in the Plan. The attached Notice, this Agreement and the Plan constitute the entire understanding between you and the Company regarding this SAR Award. Any prior agreements, commitments or negotiations concerning this SAR Award are superseded. This Agreement may be amended by the Committee without your consent; however, if any such amendment would materially impair your rights or obligations under this Agreement, this Agreement may be amended only by another written agreement, signed by you and the Company. | ||||
Vesting | This SAR Award becomes exercisable in installments, as shown in the Notice of Stock Appreciation Right Award. After the SAR Award has become vested, it may be exercised prior to the Expiration Date, or its earlier termination, subject to the terms and conditions set forth in this Agreement. This SAR Award will in no event become exercisable with respect to additional Shares after your Service as an Employee or a Consultant has terminated for any reason. Notwithstanding anything to the contrary contained herein, in the event that your Service is terminated due to your Retirement (as defined below), by the Company Group without Cause (as defined below) or by you for Good Reason, then the SARs shall become fully vested as of the effective date of your termination of Service. All SARs which are unvested at the time of your termination of Service for any other reason, after giving effect to the preceding sentence, shall terminate and be of no force and effect. |
For the purposes of this SAR Award, the term “Cause” shall have the meaning set forth in your employment agreement with the Company Group or, in the event there is no employment agreement between you and the Company Group, shall mean any of the following: (i) the wrongful appropriation for your own use or benefit of property or money entrusted to you by the Company Group; (ii) your conviction or granting of a Probation Before Judgment (or similar such finding or determination if not by a court of competent jurisdiction) of a crime involving moral turpitude; (iii) your continued willful disregard of your duties and responsibilities hereunder after written notice of such disregard and the reasonable opportunity to correct such disregard; (iv) your continued violation of Company Group policy after written notice of such violations (such policy may include policies as to drug or alcohol abuse) and the reasonable opportunity to cure such violations; (v) any willful misconduct or gross negligence by you which is reasonably likely (in the opinion of the Company Group’s FCC counsel) to actually jeopardize a Federal Communications Commission license of any broadcast station owned directly or indirectly by the Company Group or programmed, directly or indirectly, by the Company Group; or (vi) your continued insubordination and/or your repeated failure to follow the reasonable directives of your supervisor or the Board after written notice of such insubordination or the failure to follow such reasonable directives. In the event that there is no employment agreement between you and the Company Group, and except in the occurrence of an event listed in clauses (i) through (vi) above which, by its nature, cannot reasonably be expected to be cured, you shall have ten (10) business days from the delivery of written notice by the Company Group within which to cure any acts constituting Cause; provided however, that, if the Company Group reasonably expects irreparable injury from a delay of ten (10) business days, the Company Group may give you notice of such shorter period within which to cure as is reasonable under the circumstances. |
For purposes of this SAR Award, the term “Good Reason” shall have the meaning set forth in your employment agreement with the Company Group or, in the event there is no employment agreement between you and the Company Group, shall mean any of the following without your approval: (i) a more than five percent (5.0%) reduction in your compensation (other than a reduction consistent with a company-wide reduction in pay affecting substantially all similarly situated executive employees of the Company Group); (ii) the relocation of your principal place of employment more than fifty (50) miles from its present location; or (iii) a material reduction in your duties or a material change in your working conditions. In the event that there is no employment agreement between you and the Company Group, you cannot terminate employment for Good Reason unless you have provided written notice to the Company Group of the existence of the alleged circumstances providing grounds for termination for Good Reason within ten (10) business days of the initial existence of such grounds and the Company Group has had at least thirty (30) days from the date on which such notice is provided to cure such circumstances. If you do not terminate employment for Good Reason within forty-five (45) days after the first occurrence of the applicable grounds, then you will be deemed to have waived the right to terminate for Good Reason with respect to such grounds for purposes of this Agreement. For purposes of this SAR Award, the term “Retirement” shall mean your voluntary separation from service with the Company Group either (i) after age 65 or (ii) after age 55, if at such time you have had at least ten (10) years of service with the Company Group. Notwithstanding anything to the contrary contained herein, in the event of a Change in Control, all the unvested SARs shall vest immediately prior to the consummation of the Change in Control. | |||||
Term | This SAR Award expires in any event at the close of business at Company headquarters on the Expiration Date. This SAR Award may expire earlier if your Service terminates, as described below. | ||||
Regular Termination | If your Service terminates for any reason other than due to your death or Disability, then this SAR Award will expire at the close of business at Company headquarters on the date three (3) months after the date your Service terminates (or, if earlier, the Expiration Date). The Company Group determines when your Service terminates for this purpose and all purposes under the Plan and its determinations are conclusive and binding on all persons. | ||||
Death | If your Service terminates because of your death, then this SAR Award will expire at the close of business at Company headquarters on the date twelve (12) months after the date your Service terminates (or, if earlier, the Expiration Date). During that period of up to twelve (12) months, your estate or heirs may exercise this SAR Award. |
Disability | If your Service terminates because of your Disability, then this SAR Award will expire at the close of business at Company headquarters on the date twelve (12) months after the date your Service terminates (or, if earlier, the Expiration Date). | ||||
Leaves of Absence | For purposes of this SAR Award, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave of absence was approved by the Company Group in writing and if continued crediting of Service is required by the terms of the leave or by applicable law. But your Service terminates when the approved leave ends, unless you immediately return to active work. If you go on a leave of absence, then the vesting schedule specified in the Notice of Stock Appreciation Right Award may be adjusted in accordance with the Company Group’s leave of absence policy or the terms of your leave. If you commence working on a part-time basis, then the vesting schedule specified in the Notice of Stock Appreciation Right Award may be adjusted in accordance with the Company Group’s part-time work policy or the terms of an agreement between you and the Company Group pertaining to your part-time schedule. | ||||
Restrictions on Exercise | The Company will not permit you to exercise this SAR Award if the issuance of Shares at that time would violate any law or regulation. The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance of the Shares pursuant to this SAR Award will relieve the Company of any liability with respect to the non-issuance of the Shares as to which such approval will not have been obtained. | ||||
Notice of Exercise | When you wish to exercise this SAR Award you must provide a written or electronic notice of exercise form (substantially in the form attached to this Agreement as Exhibit A) in accordance with such procedures as are established by the Company and communicated to you from time to time. Any notice of exercise must specify how many Shares you wish to exercise. The notice of exercise will be effective when it is received by the Company. If someone else wants to exercise this SAR Award after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so. | ||||
Settlement | Upon exercise of the SARs, the Company shall issue to you whole Shares with a Fair Market Value (determined as of the date on which the SAR is exercised) equal to the Spread, less required withholding. The Shares to be issued under this Agreement may be issued in book or other electronic form, and a certificate for the Shares shall only be delivered to you upon your request, unless otherwise restricted. |
Withholding Taxes and Stock Withholding | Regardless of any action any member of the Company Group employing you (“Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company and/or your Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of this SAR grant, including the grant, vesting or exercise of this SAR Award, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends; and (2) do not commit to structure the terms of the grant or any aspect of this SAR Award to reduce or eliminate your liability for Tax-Related Items. At your election made through an online election process established by, or on behalf of the Company Group, either (a) Shares acquired by you upon exercise of the SARs hereunder shall be reduced by a number of Shares with a Fair Market Value equal to the taxes which the Company Group is required to withhold under the then applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”), or its successors, or any other federal, state or local tax withholding requirement (“Withholding”) during an open trading window or (b) you shall pay to the Company Group in immediately available funds the amount of such Withholding; provided, if you do not make such election prior to the time that such Withholding would be required, you shall be deemed to have elected the action under clause (a) of this paragraph. Such reductions shall occur, and Withholding shall be applicable immediately upon the exercise of any SARs. An online election made by you pursuant to this paragraph shall remain in effect with respect to all SARs held by you until such time, as any, that you utilize the online election process to make an alternative election. The Company may refuse to honor the exercise and refuse to deliver the Shares if you fail to comply with your obligations in connection with the Tax-Related Items as described in this section. | ||||
Restrictions on Resale | You agree not to sell any Shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as long as your Service continues and for such period of time after the termination of your Service as the Company Group may specify. |
Transfer of SAR | In general, only you can exercise this SAR Award prior to your death. You may not sell, transfer, assign, pledge or otherwise dispose of this SAR Award, other than as designated by you by will or by the laws of descent and distribution, except as provided below. For instance, you may not use this SAR Award as security for a loan. If you attempt to do any of these things, this SAR Award will immediately become invalid. You may in any event dispose of this SAR Award in your will. Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your former spouse, nor is the Company obligated to recognize your former spouse’s interest in this SAR Award in any other way. However, the Committee may, in its sole discretion, allow you to transfer this SAR Award as a gift to one or more family members. For purposes of this Agreement, “family member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including adoptive relationships), any individual sharing your household (other than a tenant or employee), a trust in which one or more of these individuals have more than fifty percent (50%) of the beneficial interest, a foundation in which you or one or more of these persons control the management of assets, and any entity in which you or one or more of these persons own more than fifty percent (50%) of the voting interest. In addition, the Committee may, in its sole discretion, allow you to transfer this SAR Award to your spouse or former spouse pursuant to a domestic relations order in settlement of marital property rights. The Committee will allow you to transfer this SAR Award only if both you and the transferee(s) execute the forms prescribed by the Committee, which include the consent of the transferee(s) to be bound by this Agreement. | ||||
Retention Rights | Neither this SAR Award nor this Agreement gives you the right to be employed or retained by the Company Group in any capacity. The Company Group reserves the right to terminate your Service at any time, with or without cause. | ||||
Shareholder Rights | This SAR Award carries neither voting rights nor rights to dividends. You, or your estate or heirs, have no rights as a shareholder of the Company with respect to the Shares covered by this SAR Award unless and until you have exercised this SAR Award by giving the required notice to the Company. No adjustments will be made for dividends or other rights if the applicable record date occurs before you exercise this SAR Award, except as described in the Plan. |
Adjustments | The number of Shares covered by this SAR Award and the exercise price per Share will be subject to adjustment in the event of a stock split, a stock dividend or a similar change in Company Shares, and in other circumstances, as set forth in the Plan. The forfeiture provisions and restrictions described above will apply to all new, substitute or additional SARs or securities to which you are entitled by reason of this SAR Award. | ||||
Successors and Assigns | Except as otherwise provided in the Plan or this Agreement, every term of this Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees and assigns. | ||||
Notice | Any notice required or permitted under this Agreement will be given in writing and will be deemed effectively given upon the earliest of personal delivery, receipt or the third (3rd) full day following mailing with postage and fees prepaid, addressed to the other party hereto at the address last known in the Company Group’s records or at such other address as such party may designate by ten (10) days’ advance written notice to the other party hereto. | ||||
Section 409A of the Code | To the extent this Agreement is subject to, and not exempt from, Section 409A of the Code, this Agreement is intended to comply with Section 409A, and its provisions will be interpreted in a manner consistent with such intent. You acknowledge and agree that changes may be made to this Agreement to avoid adverse tax consequences to you under Section 409A. | ||||
Applicable Law and Choice of Venue | This Agreement will be interpreted and enforced under the laws of the State of Maryland without application of the conflicts of law principles thereof. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this SAR Award or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the State of Maryland and agree that any such litigation will be conducted only in the courts of Maryland, or the federal courts of the United States located in Maryland and no other courts. | ||||
Miscellaneous | You understand and acknowledge that (1) the Plan is entirely discretionary, (2) the Company Group and your Employer have reserved the right to amend, suspend or terminate the Plan at any time, (3) the grant of this SAR Award does not in any way create any contractual or other right to receive additional grants of SARs (or benefits in lieu of SARs) at any time or in any amount and (4) all determinations with respect to any additional grants, including (without limitation) the times when SARs will be granted, the number of Shares subject to awards, the exercise price and the vesting schedule, will be at the sole discretion of the Company. In the event of a conflict between the terms of this SAR Award and the terms of your employment agreement or similar agreement, the terms of this SAR Award will govern. |
The value of this SAR Award will be an extraordinary item of compensation outside the scope of your employment contract, if any, and will not be considered a part of your normal or expected compensation for purposes of calculating severance, resignation, redundancy or end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments. You understand and acknowledge that participation in the Plan ceases upon termination of your Service for any reason, except as may explicitly be provided otherwise in the Plan or this Agreement. You hereby authorize and direct your Employer to disclose to the Company Group any information regarding your employment, the nature and amount of your compensation and the fact and conditions of your participation in the Plan, as your Employer deems necessary or appropriate to facilitate the administration of the Plan. You consent to the collection, use and transfer of personal data as described in this subsection. You understand and acknowledge that the Company Group and your Employer hold certain personal information regarding you for the purpose of managing and administering the Plan, including (without limitation) your name, home address, telephone number, date of birth, social insurance or other government identification number, salary, nationality, job title, any Shares or directorships held in the Company and details of all SARs or any other entitlements to Shares awarded, canceled, exercised, vested, unvested or outstanding in your favor (the “Data”). You further understand and acknowledge that the Company Group will transfer Data among itself as necessary for the purpose of implementation, administration and management of your participation in the Plan and that the Company Group may each further transfer Data to any third party assisting the Company Group in the implementation, administration and management of the Plan. You understand and acknowledge that the recipients of Data may be located in the United States or elsewhere, and that the laws of a recipient’s country of operation (e.g., the United States) may not have equivalent privacy protections as local laws where you reside or work. You authorize such recipients to receive, possess, use, retain and transfer Data, in electronic or other form, for the purpose of administering your participation in the Plan, including a transfer to any broker or other third party with whom you elect to deposit Shares acquired under the Plan of such Data as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf. You may, at any time, view the Data, require any necessary modifications of Data, make inquiries about the treatment of Data or withdraw the consents set forth in this subsection by contacting the Human Resources Department of the Company in writing. |
Date: | May 10, 2023 | |||||||||||||
/s/ Christopher S. Ripley | ||||||||||||||
Signature: | Christopher S. Ripley | |||||||||||||
Chief Executive Officer |
Date: | May 10, 2023 | |||||||||||||
/s/ Lucy A. Rutishauser | ||||||||||||||
Signature: | Lucy A. Rutishauser | |||||||||||||
Chief Financial Officer |
/s/ Christopher S. Ripley | |||||
Christopher S. Ripley | |||||
Chief Executive Officer | |||||
May 10, 2023 |
/s/ Lucy A. Rutishauser | |||||
Lucy A. Rutishauser | |||||
Chief Financial Officer | |||||
May 10, 2023 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Accounts receivable, allowance for doubtful accounts | $ 5 | $ 5 | ||
Assets | [1] | 6,436 | 6,704 | |
Liabilities | [1] | 5,605 | 5,829 | |
Consolidated VIEs | ||||
Assets | 83 | 115 | ||
Liabilities | 24 | 26 | ||
Consolidated VIEs | Recourse | ||||
Liabilities | $ 17 | $ 18 | ||
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) | 44,360,502 | 45,847,879 | ||
Common stock, shares outstanding (in shares) | 44,360,502 | 45,847,879 | ||
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) | 23,775,056 | 23,775,056 | ||
Common stock, shares outstanding (in shares) | 23,775,056 | 23,775,056 | ||
|
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
REVENUES: | ||
Media revenues | $ 766 | $ 1,275 |
Non-media revenues | 7 | 13 |
Revenue | 773 | 1,288 |
OPERATING EXPENSES: | ||
Media programming and production expenses | 398 | 758 |
Media selling, general and administrative expenses | 191 | 220 |
Amortization of program contract costs | 22 | 25 |
Non-media expenses | 12 | 13 |
Depreciation of property and equipment | 24 | 28 |
Corporate general and administrative expenses | 58 | 47 |
Amortization of definite-lived intangible assets | 41 | 93 |
Gain on deconsolidation of subsidiary | 0 | (3,357) |
Loss (gain) on asset dispositions and other, net of impairment | 6 | (5) |
Total operating expenses (gains) | 752 | (2,178) |
Operating (loss) income | 21 | 3,466 |
OTHER INCOME (EXPENSE): | ||
Interest expense including amortization of debt discount and deferred financing costs | (74) | (115) |
Income from equity method investments | 31 | 12 |
Other income (expense), net | 11 | (60) |
Total other expense, net | (32) | (163) |
(Loss) income before income taxes | (11) | 3,303 |
INCOME TAX BENEFIT (PROVISION) | 204 | (687) |
Net income (loss) | 193 | 2,616 |
Net loss (income) attributable to the redeemable noncontrolling interests | 4 | (4) |
Net income attributable to the noncontrolling interests | (12) | (25) |
Net income (loss) attributable to Sinclair Broadcast Group | $ 185 | $ 2,587 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | ||
Basic earnings per share (in dollars per share) | $ 2.65 | $ 35.85 |
Diluted earnings per share (in dollars per share) | $ 2.64 | $ 35.84 |
Basic weighted average common shares outstanding (in shares) | 69,744 | 72,164 |
Diluted weighted average common and common equivalent shares outstanding (in shares) | 69,864 | 72,176 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 193 | $ 2,616 |
Unrealized loss on interest rate swap | (3) | 0 |
Share of other comprehensive income of equity method investments | 0 | 3 |
Comprehensive income | 190 | 2,619 |
Comprehensive loss (income) attributable to the redeemable noncontrolling interests | 4 | (4) |
Comprehensive income attributable to the noncontrolling interests | (12) | (25) |
Comprehensive income attributable to Sinclair Broadcast Group | $ 182 | $ 2,590 |
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions |
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) Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interests |
---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2021 | $ 197 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Distributions to noncontrolling interests, net | (1) | ||||||||
Deconsolidation of subsidiary | (16) | ||||||||
Net income | 4 | ||||||||
Ending balance at Mar. 31, 2022 | 184 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 49,314,303 | 23,775,056 | |||||||
Beginning balance at Dec. 31, 2021 | (1,706) | $ 1 | $ 0 | $ 691 | $ (2,460) | $ (2) | $ 64 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends declared and paid on Class A and Class B Common Stock | (18) | (18) | |||||||
Repurchases of Class A Common Stock (in shares) | (2,472,485) | ||||||||
Repurchases of Class A Common Stock | (68) | (68) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (in shares) | 1,092,997 | ||||||||
Class A Common Stock issued pursuant to employee benefit plans | 34 | 34 | |||||||
Distributions to noncontrolling interests, net | (3) | (3) | |||||||
Other comprehensive income (loss) | 3 | 3 | |||||||
Deconsolidation of subsidiary | (151) | (3) | (148) | ||||||
Net (loss) income | 2,612 | 2,587 | 25 | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 47,934,815 | 23,775,056 | |||||||
Ending balance at Mar. 31, 2022 | 703 | $ 1 | $ 0 | 657 | 109 | (2) | (62) | ||
Beginning balance at Dec. 31, 2022 | 194 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Redemption of redeemable subsidiary preferred equity, net of fees | (190) | ||||||||
Net income | (4) | ||||||||
Ending balance at Mar. 31, 2023 | 0 | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 45,847,879 | 23,775,056 | 45,847,879 | 23,775,056 | |||||
Beginning balance at Dec. 31, 2022 | 681 | $ 1 | $ 0 | 624 | 122 | 1 | (67) | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends declared and paid on Class A and Class B Common Stock | (18) | (18) | |||||||
Repurchases of Class A Common Stock (in shares) | (3,583,213) | ||||||||
Repurchases of Class A Common Stock | (53) | (53) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (in shares) | 2,095,836 | ||||||||
Class A Common Stock issued pursuant to employee benefit plans | 31 | 31 | |||||||
Distributions to noncontrolling interests, net | (4) | (4) | |||||||
Other comprehensive income (loss) | (3) | (3) | |||||||
Net (loss) income | 197 | 185 | 12 | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 44,360,502 | 23,775,056 | 44,360,502 | 23,775,056 | |||||
Ending balance at Mar. 31, 2023 | $ 831 | $ 1 | $ 0 | $ 602 | $ 289 | $ (2) | $ (59) |
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class A Common Stock | ||
Dividends declared per share (in dollars per share) | $ 0.25 | $ 0.25 |
Dividends paid per share (in dollars per share) | 0.25 | 0.25 |
Class B Common Stock | ||
Dividends declared per share (in dollars per share) | 0.25 | 0.25 |
Dividends paid per share (in dollars per share) | $ 0.25 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 193 | $ 2,616 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Amortization of sports programming rights | 0 | 326 |
Amortization of definite-lived intangible and other assets | 41 | 93 |
Depreciation of property and equipment | 24 | 28 |
Amortization of program contract costs | 22 | 25 |
Stock-based compensation | 23 | 29 |
Deferred tax (benefit) provision | (207) | 689 |
Loss (gain) on asset dispositions and other, net of impairment | 6 | (5) |
Gain on deconsolidation of subsidiary | 0 | (3,357) |
Income from equity method investments | (31) | (12) |
Loss from investments | 2 | 54 |
Distributions from investments | 28 | 25 |
Sports programming rights payments | 0 | (325) |
Rebate payments to distributors | 0 | (15) |
Change in assets and liabilities, net of acquisitions and deconsolidation of subsidiary: | ||
Decrease in accounts receivable | 4 | 16 |
Increase in prepaid expenses and other current assets | (42) | (99) |
Increase in accounts payable and accrued and other current liabilities | 21 | 5 |
Net change in net income taxes payable/receivable | 0 | (3) |
Decrease in program contracts payable | (23) | (26) |
Other, net | 1 | 6 |
Net cash flows from operating activities | 62 | 70 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (20) | (21) |
Spectrum repack reimbursements | 1 | 1 |
Proceeds from sale of assets | 0 | 4 |
Deconsolidation of subsidiary cash | 0 | (315) |
Purchases of investments | (33) | (5) |
Distributions from investments | 8 | 70 |
Net cash flows used in investing activities | (44) | (266) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing, and finance leases | (9) | (7) |
Repurchase of outstanding Class A Common Stock | (53) | (68) |
Dividends paid on Class A and Class B Common Stock | (18) | (18) |
Dividends paid on redeemable subsidiary preferred equity | 0 | (1) |
Redemption of redeemable subsidiary preferred equity | (190) | 0 |
Distributions to noncontrolling interests, net | (4) | (3) |
Other, net | (5) | (5) |
Net cash flows used in financing activities | (279) | (102) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (261) | (298) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 884 | 819 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ 623 | $ 521 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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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. ("SBG," the "Company," or sometimes referred to as "we" or "our") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks, and, prior to the Deconsolidation, college and professional sports. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage and/or operate technical and software services companies, research and development for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments. For the quarter ended March 31, 2023, we had one reportable segment for accounting purposes, broadcast. Prior to the Deconsolidation, as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC, we had two reportable segments for accounting purposes, broadcast and local sports. The broadcast segment consists primarily of our 185 broadcast television stations in 86 markets, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements ("LMA"), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements ("JSA") and shared services agreements ("SSA")). These stations broadcast 637 channels as of March 31, 2023. For the purpose of this report, these 185 stations and 637 channels are referred to as "our" stations and channels. The local sports segment consisted primarily of our Bally Sports network brands ("Bally RSNs"), the Marquee Sports Network ("Marquee") joint venture, and a minority equity interest in the Yankee Entertainment and Sports Network, LLC ("YES Network") through February 28, 2022. On March 1, 2022, the Bally RSNs, Marquee, and YES Network were deconsolidated from our financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC below. Through February 28, 2022, we refer to the Bally RSNs and Marquee as "the RSNs". The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas. Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner’s proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation. We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs. Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees. Deconsolidation of Diamond Sports Intermediate Holdings LLC On March 1, 2022, SBG's subsidiary Diamond Sports Intermediate Holdings, LLC, and certain of its subsidiaries (collectively "DSIH"), completed a series of transactions (the "Transaction"). As part of the Transaction, the governance structure of DSIH was modified including changes to the composition of its Board of Managers, resulting in the Company's loss of voting control. As a result, DSIH, whose operations represented the entirety of our local sports segment, was deconsolidated from our consolidated financial statements effective as of March 1, 2022 (the "Deconsolidation"). The consolidated statement of operations for the fiscal quarter ended March 31, 2022 therefore includes two months of activity related to DSIH prior to the Deconsolidation. Subsequent to February 28, 2022, the assets and liabilities of DSIH are no longer included within our consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with DSIH are referring to the periods prior to the Deconsolidation. Upon Deconsolidation, we recognized a gain before income taxes of approximately $3,357 million, which is recorded within gain on deconsolidation of subsidiary in our consolidated statements of operations for the three months ended March 31, 2022. Subsequent to the Deconsolidation, we accounted for our equity ownership interest in DSIH under the equity method of accounting. See Note 2. Other Assets for more information. Interim Financial Statements The consolidated financial statements for the three months ended March 31, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of equity (deficit) and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements. As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year. 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 October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements. Broadcast Television Programming We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from 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 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. 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 fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. 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 amortization or fair value adjustments. Fair value is determined utilizing a discounted cash flow model based on management’s expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value. Sports Programming Rights DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term. The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons. Hedge Accounting We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR"). We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive (loss) income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows. See Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. Non-cash Investing and Financing Activities Leased assets obtained in exchange for new operating lease liabilities were $3 million and $5 million for the three months ended March 31, 2023 and 2022, respectively. Leased assets obtained in exchange for new finance lease liabilities were $1 million for the three months ended March 31, 2022. Non-cash investing activities included property and equipment purchases of $6 million for the three months ended March 31, 2023. For the three months ended March 31, 2023, we received warrants in an investment valued at $1 million in exchange for an equivalent value of advertising spots. Revenue Recognition The following table presents our revenue disaggregated by type and segment (in millions):
Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material. Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs. In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty. Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations. Deferred revenue was $198 million and $200 million as of March 31, 2023 and December 31, 2022, respectively, of which $139 million and $144 million, respectively, was reflected in other long-term liabilities in our consolidated balance sheets. Deferred revenue recognized during the three months ended March 31, 2023 and 2022, included in the deferred revenue balance as of December 31, 2022 and 2021, was $19 million and $29 million, respectively. For the three months ended March 31, 2023, two customers accounted for 11% and 10%, respectively, of our total revenues. For the three months ended March 31, 2022, three customers accounted for 17%, 17%, and 14%, respectively, of our total revenues. As of March 31, 2023, three customers accounted for 12%, 11%, and 10%, respectively, of our accounts receivable, net. As of December 31, 2022, one customer accounted for 13% of our accounts receivable, net. For purposes of this disclosure, a single customer may include multiple entities under common control. Income Taxes Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three months ended March 31, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. 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, current and cumulative losses, 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. 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 basis differences, alternative tax strategies and projected future taxable income. Our effective income tax rate for the three months ended March 31, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the three months ended March 31, 2022 approximated the statutory rate. We believe that our liability for unrecognized tax benefits could be reduced by up to $1 million, in the next twelve months, as a result of expected statute of limitations expirations and the resolution of examination issues and settlements with tax authorities. Share Repurchase Program On August 4, 2020, the Board of Directors authorized an additional $500 million share repurchase authorization in addition to the previous repurchase authorization of $1 billion. There is no expiration date and currently, management has no plans to terminate this program. For the three months ended March 31, 2023, we repurchased approximately 3.6 million shares of Class A Common Stock for $53 million. As of March 31, 2023, the total remaining purchase authorization was $646 million. As of May 5, 2023, we repurchased an additional 5.2 million shares of Class A Common Stock for $99 million since March 31, 2023. All shares were repurchased under an SEC Rule 10b5-1 plan. Reclassifications Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation. Subsequent Events In April 2023, we filed documents with the SEC detailing our plan to implement a reorganization of the Company in which a new holding company, Sinclair, Inc. would become the publicly-traded parent of SBG. In May 2023, our Board of Directors declared a quarterly dividend of $0.25 per share, payable on June 15, 2023 to holders of record at the close of business on May 30, 2023.
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OTHER ASSETS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS | OTHER ASSETS: Other assets as of March 31, 2023 and December 31, 2022 consisted of the following (in millions):
Equity Method Investments We have a portfolio of investments, including our investment in DSIH (subsequent to the Deconsolidation), and also a number of entities that are primarily focused on the development of real estate and other media and non-media businesses. No investments were individually significant for the periods presented. Diamond Sports Intermediate Holdings LLC. Subsequent to the Deconsolidation, we began accounting for our equity interest in DSIH under the equity method of accounting. As of March 1, 2022, we reflected the investment in DSIH at fair value, which was determined to be nominal. For the three months ended March 31, 2023 and 2022, we recorded no equity method loss related to the investment because the carrying value of the investment is zero and we are not obligated to fund losses incurred by DSIH. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. YES Network Investment. Prior to the Deconsolidation, we accounted for our investment in the YES Network as an equity method investment. We recorded income of $10 million for the three months ended March 31, 2022 related to this investment, which is reflected in income from equity method investments in our consolidated statements of operations. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other Investments We measure our investments, excluding equity method investments, at fair value or, in situations where fair value is not readily determinable, we have the option to value investments at cost plus observable changes in value, less impairment. Additionally, certain investments are measured at net asset value ("NAV"). As of both March 31, 2023 and December 31, 2022, we held $234 million in investments measured at fair value. As of March 31, 2023 and December 31, 2022, we held $191 million and $190 million, respectively, in investments measured at NAV. We recognized a fair value adjustment loss of $1 million for the three months ended March 31, 2023 and a fair value adjustment loss of $56 million for the three months ended March 31, 2022 associated with these investments, which are reflected in other income (expense), net in our consolidated statements of operations. As of March 31, 2023 and December 31, 2022, our unfunded commitments related to our investments valued using the NAV practical expedient totaled $86 million and $88 million, respectively. Investments accounted for utilizing the measurement alternative were $20 million, net of $7 million of cumulative impairments, as of March 31, 2023, and $18 million, net of $7 million of cumulative impairments, as of December 31, 2022. There were no adjustments to the carrying amount of investments accounted for utilizing the measurement alternative for any of the three months ended March 31, 2023 or 2022. Note Receivable On November 5, 2021, we purchased and assumed the lenders’ and the administrative agent’s rights and obligations under the Accounts Receivable Securitization Facility ("A/R Facility"), held by Diamond Sports Finance SPV, LLC ("DSPV"), an indirect wholly-owned subsidiary of DSIH, by making a payment to the lenders equal to approximately $184 million, representing 101% of the aggregate outstanding principal amount of the loans under the A/R Facility, plus any accrued interest and outstanding fees and expenses. The maximum facility limit availability under the A/R Facility is $400 million and has a maturity date of September 23, 2024. Subsequent to the Deconsolidation, transactions related to the A/R Facility are no longer intercompany transactions and, therefore, are reflected in our consolidated financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. As of both March 31, 2023 and December 31, 2022, the note receivable due to the Company was approximately $193 million, which is reflected in other assets in our consolidated balance sheets.
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NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING |
3 Months Ended |
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Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING | NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING: Bank Credit Agreement and Notes The bank credit agreement of Sinclair Television Group, Inc. ("STG"), a wholly owned subsidiary of the Company, (the "Bank Credit Agreement") includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of March 31, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of March 31, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of March 31, 2023. Finance leases to affiliates The current portion of notes payable, finance leases, and commercial bank financing in our consolidated balance sheets includes finance leases to affiliates of $3 million as of both March 31, 2023 and December 31, 2022. Notes payable, finance leases, and commercial bank financing, less current portion, in our consolidated balance sheets includes finances leases to affiliates of $5 million and $6 million as of March 31, 2023 and December 31, 2022, respectively. See Note 9. Related Person Transactions. Debt of variable interest entities and guarantees of third-party obligations STG jointly, severally, unconditionally, and irrevocably guaranteed $2 million of debt of certain third parties as of both March 31, 2023 and December 31, 2022, all of which related to consolidated VIEs and is included in our consolidated balance sheets as of both March 31, 2023 and December 31, 2022. We provide a guarantee of certain obligations of a regional sports network subject to a maximum annual amount of $112 million with annual escalations of 4% for the next seven years. We have determined that, as of March 31, 2023, it is not probable that we would have to perform under any of these guarantees. Interest Rate Swap We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR"). See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion. As of March 31, 2023, the fair value of the interest rate swap was a liability of $3 million, which is recorded in other current liabilities in our consolidated balance sheets.
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REDEEMABLE NONCONTROLLING INTERESTS |
3 Months Ended |
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Mar. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS:We account for redeemable noncontrolling interests in accordance with ASC 480, Distinguishing Liabilities from Equity, and classify them as mezzanine equity in our consolidated balance sheets because their possible redemption is outside of the control of the Company. Our redeemable non-controlling interests consist of the following: Redeemable Subsidiary Preferred Equity. On August 23, 2019, Diamond Sports Holdings LLC ("DSH"), an indirect parent of Diamond Sports Group, LLC ("DSG") and indirect wholly-owned subsidiary of the Company, issued preferred equity (the "Redeemable Subsidiary Preferred Equity"). Dividends accrued during both the three months ended March 31, 2023 and 2022 were $3 million and are reflected in net income attributable to the redeemable noncontrolling interests in our consolidated statements of operations. The dividends paid in cash accrue at a rate equal to 1-month LIBOR (with a 0.75% floor) plus 8.0%, which is 0.5% lower than the rate payable if the dividends were paid-in-kind during the quarter. Dividends accrued during both the three months ended March 31, 2023 and 2022 were paid-in-kind and added to the liquidation preference, which was partially offset by certain required cash tax distributions. The balance, net of issuance costs, and the liquidation preference of the Redeemable Subsidiary Preferred Equity were $194 million and $198 million, respectively, as of December 31, 2022. On February 10, 2023, we purchased the remaining 175,000 units of the Redeemable Subsidiary Preferred Equity for an aggregate purchase price of $190 million, representing 95% of the sum of the remaining unreturned capital contribution of $175 million, and accrued and unpaid dividends up to, but not including, the date of purchase.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: Litigation We are a party to lawsuits, claims, and regulatory matters 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. Except as noted below, we do not believe the outcome of these matters, individually or in the aggregate, will have a material effect on our financial statements. FCC Litigation Matters On May 22, 2020, the Federal Communications Commission ("FCC") released an Order and Consent Decree pursuant to which the Company agreed to pay $48 million to resolve the matters covered by a Notice of Apparent Liability for Forfeiture ("NAL") issued in December 2017 proposing a $13 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries, the FCC’s investigation of the allegations raised in the Hearing Designation Order issued in connection with the Company's proposed acquisition of Tribune, and a retransmission related matter. The Company submitted the $48 million payment on August 19, 2020. As part of the consent decree, the Company also agreed to implement a 4-year compliance plan. Two petitions were filed on June 8, 2020 seeking reconsideration of the Order and Consent Decree. The Company filed an opposition to the petitions on June 18, 2020, and the petitions remain pending. On September 1, 2020, one of the individuals who filed a petition for reconsideration of the Order and Consent Decree filed a petition to deny the license renewal application of WBFF(TV), Baltimore, MD, and the license renewal applications of two other Baltimore, MD stations with which the Company has a JSA or LMA, Deerfield Media station WUTB(TV) and Cunningham station WNUV(TV). The Company filed an opposition to the petition on October 1, 2020, and the petition remains pending. On September 2, 2020, the FCC adopted a Memorandum Opinion and Order and NAL against the licensees of several stations with whom the Company has LMAs, JSAs, and/or SSAs in response to a complaint regarding those stations’ retransmission consent negotiations. The NAL proposed a $0.5 million penalty for each station, totaling $9 million. The licensees filed a response to the NAL on October 15, 2020, asking the Commission to dismiss the proceeding or, alternatively, to reduce the proposed forfeiture to $25,000 per station. On July 28, 2021, the FCC issued a forfeiture order in which the $0.5 million penalty was upheld for all but one station. A Petition for Reconsideration of the forfeiture order was filed on August 7, 2021. On March 14, 2022, the FCC released a Memorandum Opinion and Order and Order on Reconsideration, reaffirming the forfeiture order and dismissing (and in the alternative, denying) the Petition for Reconsideration. The Company is not a party to this forfeiture order; however, our consolidated financial statements include an accrual of additional expenses of $8 million for the above legal matters during the year ended December 31, 2021, as we consolidate these stations as VIEs. On September 21, 2022, the FCC released an NAL against the licensees of a number of stations, including 83 Company stations and several stations with whom the Company has LMAs, JSAs, and/or SSAs, for violation of the FCC's limitations on commercial matter in children’s television programming related to KidsClick network programming distributed by the Company in 2018. The NAL proposed a fine of $2.7 million against the Company, and fines ranging from $20,000 to $26,000 per station for the other licensees, including the LMA, JSA, and/or SSA stations, for a total of $3.4 million. As of March 31, 2023, we have accrued $3.4 million. On October 21, 2022, the Company filed a written response seeking reduction of the proposed fine amount, and the matter remains pending. Other Litigation Matters On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice ("DOJ"). This consent decree resolves the DOJ’s investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The U.S. District Court for the District of Columbia entered the consent decree on May 22, 2019. The consent decree is not an admission of any wrongdoing by the Company and does not subject the Company to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the DOJ has required in previous consent decrees in other industries. The consent decree also requires the Company's stations not to exchange pacing and certain other information with other stations in their local markets, which the Company’s management had already instructed them not to do. The Company is aware of twenty-two putative class action lawsuits that were filed against the Company following published reports of the DOJ investigation into the exchange of pacing data within the industry. On October 3, 2018, these lawsuits were consolidated in the Northern District of Illinois. The consolidated action alleges that the Company and thirteen other broadcasters conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States and engaged in unlawful information sharing, in violation of the Sherman Antitrust Act. The consolidated action seeks damages, attorneys’ fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The Court denied the Defendants’ motion to dismiss on November 6, 2020. Since then, the Plaintiffs have served the Defendants with written discovery requests and have begun taking depositions of the employees of the defendants and certain third parties. On March 13, 2023, the Court vacated a pretrial schedule that would have required discovery to be completed by April 15, 2023 and briefing on class certification to be completed by September 1, 2023. The Court has not yet set an amended pretrial schedule. The Company believes the lawsuits are without merit and intends to vigorously defend itself against all such claims.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table reconciles income (numerator) and shares (denominator) used in our computations of basic and diluted earnings per share for the periods presented (in millions, except share amounts which are reflected in thousands):
The following table shows the weighted-average stock-settled appreciation rights and outstanding stock options (in thousands) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive:
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SEGMENT DATA |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA | SEGMENT DATA: During the period ended March 31, 2023, we measured segment performance based on operating income (loss). For the quarter ended March 31, 2023, we had one reportable segment, broadcast. Prior to the Deconsolidation, we had two reportable segments, broadcast and local sports. Our broadcast segment provides free over-the-air programming to television viewing audiences for stations in markets located throughout the continental United States, as well as distributes the content of these stations to MVPDs for distribution to their customers in exchange for contractual fees. See Revenue Recognition under Note 1. Nature of Operations and Summary of Significant Accounting Policies for further detail. Our local sports segment provided viewers with live professional sports content and included our Bally RSNs, Marquee, and our investment in the YES Network, prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of original networks and content, including Tennis, non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. All of our businesses are located within the United States. Segment financial information is included in the following tables for the periods presented (in millions):
(a)Includes $5 million and $22 million for the three months ended March 31, 2023 and 2022, respectively, of revenue for services provided by other to broadcast, which is eliminated in consolidation, and $1 million and $24 million for the three months ended March 31, 2023 and 2022, respectively, of revenue for services provided by broadcast to other and local sports, which is eliminated in consolidation. (b)Includes $10 million and $5 million for the three months ended March 31, 2023 and 2022, respectively, of revenue for services provided by broadcast under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. (c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. (d)Includes the note receivable due to the Company outstanding under the A/R facility of approximately $193 million. See Note Receivable within Note 2. Other Assets.
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VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES: Certain of our stations provide services to other station owners within the same respective market through agreements, 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. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, 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 we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation. A subsidiary of DSIH is a party to a joint venture associated with Marquee. Marquee is party to a long term telecast rights agreement which provides the rights to air certain live game telecasts and other content, which we guarantee. In connection with a prior acquisition, we became party to a joint venture associated with one other regional sports network. DSIH participated significantly in the economics and had the power to direct the activities which significantly impacted the economic performance of these regional sports networks, including sales and certain operational services. As of December 31, 2021, we consolidated these regional sports networks because they were variable interest entities and we were the primary beneficiary. As of March 1, 2022, as a result of the Deconsolidation, we no longer consolidate these regional sports networks. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. 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 the dates presented, were as follows (in millions):
The amounts above represent the combined assets and liabilities of the VIEs described above, for which we are the primary beneficiary. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $131 million and $130 million as of March 31, 2023 and December 31, 2022, respectively, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of March 31, 2023, all of the liabilities are non-recourse to us except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar. Other VIEs We have several investments in entities 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. The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary were $196 million and $187 million as of March 31, 2023 and December 31, 2022, respectively, and are included in other assets in our consolidated balance sheets. See Note 2. Other Assets for more information related to our equity investments. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to equity method investments and other investments are recorded in income from equity method investments and other income (expense), net, respectively, in our consolidated statements of operations. We recorded gains of $35 million for the three months ended March 31, 2023 and gains of $20 million for the three months ended March 31, 2022 related to these investments. In conjunction with the Transaction, the composition of the DSIH board of managers was modified resulting in our loss of voting control over DSIH. We hold substantially all of the equity of DSIH and provide certain management and general and administrative services to DSIH. However, it was determined that we are not the primary beneficiary because we lack the ability to control the activities that most significantly drive the economics of the business. The carrying amount of our investment in DSIH is zero and there is no obligation for us to provide additional financial support. We are also party to an A/R facility held by an indirect wholly-owned subsidiary of DSIH which had an outstanding balance of approximately $193 million as of both March 31, 2023 and December 31, 2022. See Note Receivable within Note 2. Other Assets. The amounts drawn under the A/R facility represent our maximum loss exposure.
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RELATED PERSON TRANSACTIONS |
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Mar. 31, 2023 | |
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 our 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 $2 million for both the three months ended March 31, 2023 and 2022. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing. Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of less than $0.1 million for the three months ended March 31, 2023 and $0.2 million for the three months ended March 31, 2022. 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; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah; and KTXD-TV in Dallas, Texas (collectively, the "Cunningham Stations"). Certain of our stations provide services to the Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 8. Variable Interest Entities, for further discussion of the scope of services provided under these types of arrangements. All of the non-voting stock of the Cunningham Stations 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. 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, 2028 and there is one additional five-year renewal term 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. 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 or (ii) $6 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 cumulative prepayments made under these purchase agreements were $62 million and $61 million as of March 31, 2023 and December 31, 2022, respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both March 31, 2023 and December 31, 2022, was approximately $54 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and have a purchase option to acquire for $0.2 million. We paid Cunningham, under these agreements, $3 million for both the three months ended March 31, 2023 and 2022. The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WDBB-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between August 2023 and November 2029 and certain stations have renewal provisions for successive eight-year periods. 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 in our consolidated statements of operations. Our consolidated revenues include $36 million for the three months ended March 31, 2023 and $34 million for the three months ended March 31, 2022 related to the Cunningham Stations. We have an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which Cunningham has an LMA that expires in June 2025. Under the agreement, Cunningham paid us an initial fee of $1 million and pays us $0.3 million annually for master control services plus the cost to maintain and repair the equipment. In addition, we have an agreement with Cunningham to provide a news share service with the Johnstown, PA station for an annual fee of $0.6 million, which increases by 3% on each anniversary and expires in November 2024. We have multi-cast agreements with Cunningham Stations in the Eureka/Chico-Redding, California; Tri-Cities, Tennessee; Anderson, South Carolina; Baltimore, Maryland; Portland, Maine; Charleston, West Virginia; Dallas, Texas; and Greenville, North Carolina markets. In exchange for carriage of these networks in their markets, we paid $0.5 million for the three months ended March 31, 2023 and $0.2 million for the three months ended March 31, 2022 under these agreements. MileOne Autogroup Inc. We sell advertising time to certain operating subsidiaries of MileOne Autogroup, Inc. ("MileOne"), including automobile dealerships, body shops, and an automobile leasing company. David D. Smith, our Executive Chairman, has a controlling interest in, and is a member of the Board of Directors of, MileOne. We received payments for advertising totaling less than $0.1 million for each of the three months ended March 31, 2023 and 2022. Leased property by real estate ventures Certain of our real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent payments received under these leases were $0.4 million for the three months ended March 31, 2023 and $0.2 million for the three months ended March 31, 2022. Diamond Sports Intermediate Holdings LLC Subsequent to February 28, 2022, we accounted for our equity interest in DSIH as an equity method investment. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. Management Services Agreement. In 2019, we entered into a management services agreement with DSG, a wholly-owned subsidiary of DSIH, in which we provide DSG with affiliate sales and marketing services and general and administrative services. The contractual annual amount due from DSG for these services during the fiscal year ended December 31, 2023 is $78 million, which is subject to increases on an annual basis. Additionally, the agreement contains an incentive fee payable to us calculated based on certain terms contained within new or renewed distribution agreements with Distributors. As a condition to the Transaction, DSG will defer the cash payment of a portion of its management fee payable to the Company over the next five years. Pursuant to this agreement, the Broadcast segment recorded $9 million and $28 million of revenue for the three months ended March 31, 2023 and 2022, respectively, of which $24 million for the three months ended March 31, 2022 was eliminated in consolidation prior to the Deconsolidation. We will not recognize the portion of deferred management fees as revenue until such fees are determined to be collectible. Distributions. DSIH made distributions to DSH for tax payments on the dividends of the Redeemable Subsidiary Preferred Equity of $1 million during the three months ended March 31, 2022. Note receivable. We received payments totaling $3 million and $50 million from DSPV during the three months ended March 31, 2023 and 2022, respectively, related to the note receivable associated with the A/R facility. We recorded revenue of $5 million and $1 million during the three months ended March 31, 2023 and 2022, respectively, within other related to certain other transactions between DSIH and the Company. Other equity method investees YES Network. In August 2019, YES Network, which was accounted for as an equity method investment prior to the Deconsolidation, entered into a management services agreement with the Company, in which we provide certain services for an initial term that expires on August 29, 2025. The agreement will automatically renew for two 2-year renewal terms, with a final expiration on August 29, 2029. Pursuant to the terms of the agreement, the YES Network paid us a management services fee of $1 million for the three months ended March 31, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. DSIH has a minority interest in certain mobile production businesses. Prior to the Deconsolidation, we accounted for these as equity method investments. DSIH made payments to these businesses for production services totaling $5 million for the three months ended March 31, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. We have a minority interest in a sports marketing company, which we account for as an equity method investment. We made payments to this business for marketing services totaling $2 million for the three months ended March 31, 2022. Sports Programming Rights Affiliates of six professional teams have non-controlling equity interests in certain of DSIH's RSNs. DSIH paid $61 million for the three months ended March 31, 2022 under sports programming rights agreements covering the broadcast of regular season games associated with these professional teams. Prior to the Deconsolidation, these payments were recorded in our consolidated statements of operations and cash flows. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. Employees Jason Smith, an employee of the Company, is the son of Frederick Smith, who is a Vice President of the Company and a member of the Company's Board of Directors. Jason Smith received total compensation of $0.2 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively, consisting of salary and bonus. Ethan White, an employee of the Company, is the son-in-law of J. Duncan Smith, who is a Vice President of the Company and Secretary of the Company’s Board of Directors. Ethan White received total compensation of less than $0.1 million for both the three months ended March 31, 2023 and 2022, consisting of salary and bonus, and was granted 1,252 shares of restricted stock, vesting over two years, during the three months ended March 31, 2023. Amberly Thompson, an employee of the Company, is the daughter of Donald Thompson, who is an Executive Vice President and Chief Human Resources Officer of the Company. Amberly Thompson received total compensation of $0.1 million and less than $0.1 million for the three months ended March 31, 2023 and 2022, respectively, consisting of salary and bonus. Edward Kim, an employee of the company, is the brother-in-law of Christopher Ripley, who is the President and Chief Executive Officer of the Company. Edward Kim received total compensation of less than $0.1 million for both the three months ended March 31, 2023 and 2022, consisting of salary, and was granted 516 and 302 shares of restricted stock, vesting over two years, during the three months ended March 31, 2023 and 2022, respectively. Frederick Smith is the brother of David Smith, Executive Chairman of the Company and Chairman of the Company’s Board of Directors; Robert Smith, a member of the Company’s Board of Directors; and J. Duncan Smith. Frederick Smith received total compensation of $0.2 million for both the three months ended March 31, 2023 and 2022, consisting of salary and bonus. J. Duncan Smith is the brother of David Smith, Frederick Smith, and Robert Smith. J. Duncan Smith received total compensation of $0.2 million for both the three months ended March 31, 2023 and 2022, consisting of salary and bonus.
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FAIR VALUE MEASUREMENTS |
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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 following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):
N/A - Not applicable (a)Consists of unrestricted warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price. (b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was a liability as of March 31, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing. (c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $54 million and $56 million as of March 31, 2023 and December 31, 2022, respectively. (d)On November 18, 2020, we entered into a commercial agreement with Bally's Corporation ("Bally's") and received warrants and options to acquire common equity in the business. During the three months ended March 31, 2022 we recorded a fair value adjustment loss of $56 million related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share. The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three months ended March 31, 2023 and 2022 (in millions):
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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: STG is the primary obligor under the Bank Credit Agreement, 5.125% Notes, 5.500% Notes, and 4.125% Secured Notes (collectively, the notes are referred to as the "STG Notes"). Our Class A Common Stock and Class B Common Stock as of March 31, 2023, were obligations or securities of SBG and not obligations or securities of STG. SBG is a guarantor under the STG Notes. As of March 31, 2023, our consolidated total debt, net of deferred financing costs and debt discounts, of $4,258 million included $4,243 million related to STG and its subsidiaries of which we guaranteed $4,211 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. CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2023 (in millions) (unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2022 (in millions)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2023 (in millions) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2022 (in millions) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2023 (in millions) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2022 (in millions) (unaudited)
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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Sinclair Broadcast Group, Inc. ("SBG," the "Company," or sometimes referred to as "we" or "our") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks, and, prior to the Deconsolidation, college and professional sports. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage and/or operate technical and software services companies, research and development for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.
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Principles of Consolidation and Interim Financial Statements | Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner’s proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation. We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs. Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees. Interim Financial Statements The consolidated financial statements for the three months ended March 31, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of equity (deficit) and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements. As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.
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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.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements.
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Broadcast Television Programming | Broadcast Television Programming We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from 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 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. 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 fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. 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 amortization or fair value adjustments. Fair value is determined utilizing a discounted cash flow model based on management’s expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.
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Sports Programming Rights | Sports Programming Rights DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term. The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.
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Hedge Accounting | We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive (loss) income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows. |
Revenue Recognition | Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material. Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs. In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty. Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations.
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Income Taxes | Income Taxes Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three months ended March 31, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. 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, current and cumulative losses, 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. 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 basis differences, alternative tax strategies and projected future taxable income. Our effective income tax rate for the three months ended March 31, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).
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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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Variable Interest Entities | Certain of our stations provide services to other station owners within the same respective market through agreements, 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. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, 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 we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation. Other VIEs We have several investments in entities 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.
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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.
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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table presents our revenue disaggregated by type and segment (in millions):
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OTHER ASSETS (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets as of March 31, 2023 and December 31, 2022 consisted of the following (in millions):
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EARNINGS PER SHARE (Tables) |
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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 basic and diluted earnings per share for the periods presented (in millions, except share amounts which are reflected in thousands):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table shows the weighted-average stock-settled appreciation rights and outstanding stock options (in thousands) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive:
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SEGMENT DATA (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Financial Information | Segment financial information is included in the following tables for the periods presented (in millions):
(a)Includes $5 million and $22 million for the three months ended March 31, 2023 and 2022, respectively, of revenue for services provided by other to broadcast, which is eliminated in consolidation, and $1 million and $24 million for the three months ended March 31, 2023 and 2022, respectively, of revenue for services provided by broadcast to other and local sports, which is eliminated in consolidation. (b)Includes $10 million and $5 million for the three months ended March 31, 2023 and 2022, respectively, of revenue for services provided by broadcast under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. (c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. (d)Includes the note receivable due to the Company outstanding under the A/R facility of approximately $193 million. See Note Receivable within Note 2. Other Assets.
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VARIABLE INTEREST ENTITIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | 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 the dates presented, were as follows (in millions):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Fair Value of Notes and Debentures | The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):
N/A - Not applicable (a)Consists of unrestricted warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price. (b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was a liability as of March 31, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing. (c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $54 million and $56 million as of March 31, 2023 and December 31, 2022, respectively. (d)On November 18, 2020, we entered into a commercial agreement with Bally's Corporation ("Bally's") and received warrants and options to acquire common equity in the business. During the three months ended March 31, 2022 we recorded a fair value adjustment loss of $56 million related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.
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Schedule of Changes in Level 3 Financial Liabilities Measured on Recurring Basis | The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three months ended March 31, 2023 and 2022 (in millions):
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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2023 (in millions) (unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2022 (in millions)
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Schedule of Condensed Consolidating Statement of Operations and Comprehensive Income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2023 (in millions) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2022 (in millions) (unaudited)
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Schedule of Condensed Consolidating Statement of Cash Flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2023 (in millions) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2022 (in millions) (unaudited)
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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) |
2 Months Ended | 3 Months Ended |
---|---|---|
Feb. 28, 2022
segment
|
Mar. 31, 2023
segment
channel
market
station
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | segment | 2 | 1 |
Number of television stations owned | station | 185 | |
Number of markets | market | 86 | |
Number of channels | channel | 637 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deconsolidation of Diamond Sports Intermediate Holdings LLC (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 01, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gain on deconsolidation of subsidiary | $ 3,357 | $ 0 | $ 3,357 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Broadcast Television Programming (Details) - Television Programming Contract Rights |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Television programming contract period | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Television programming contract period | 7 years |
Contract period utilizing accelerated amortization method | 3 years |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Hedge Accounting (Details) - Interest Rate Swap |
Feb. 07, 2023
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Notional amount | $ 600,000,000 |
Fixed interest rate | 3.90% |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Leased assets obtained in exchange for new operating lease liabilities | $ 3 | $ 5 |
Leased assets obtained in exchange for new finance lease liabilities | $ 1 | |
Property and equipment purchases | 6 | |
Incremental investment | $ 1 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 773 | $ 1,288 |
Distribution revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 426 | 873 |
Advertising revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 309 | 371 |
Other media, non-media, and intercompany revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 38 | 44 |
Operating Segments | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 676 | 721 |
Operating Segments | Local sports | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 482 | |
Operating Segments | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 104 | 134 |
Operating Segments | Distribution revenue | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 380 | 392 |
Operating Segments | Distribution revenue | Local sports | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 433 | |
Operating Segments | Distribution revenue | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 46 | 48 |
Operating Segments | Advertising revenue | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 268 | 282 |
Operating Segments | Advertising revenue | Local sports | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 44 | |
Operating Segments | Advertising revenue | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 46 | 68 |
Operating Segments | Other media, non-media, and intercompany revenues | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 28 | 47 |
Operating Segments | Other media, non-media, and intercompany revenues | Local sports | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 5 | |
Operating Segments | Other media, non-media, and intercompany revenues | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 12 | 18 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | (7) | (49) |
Eliminations | Distribution revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Eliminations | Advertising revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | (5) | (23) |
Eliminations | Other media, non-media, and intercompany revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ (2) | $ (26) |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 198 | $ 200 | |
Deferred revenue, noncurrent | 139 | $ 144 | |
Deferred revenue, revenue recognized | $ 19 | $ 29 | |
Customer Concentration Risk | Revenue Benchmark | Customer One | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percent) | 11.00% | 17.00% | |
Customer Concentration Risk | Revenue Benchmark | Customer Two | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percent) | 10.00% | 17.00% | |
Customer Concentration Risk | Revenue Benchmark | Customer Three | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percent) | 14.00% | ||
Customer Concentration Risk | Accounts Receivable | Customer One | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percent) | 12.00% | 13.00% | |
Customer Concentration Risk | Accounts Receivable | Customer Two | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percent) | 11.00% | ||
Customer Concentration Risk | Accounts Receivable | Customer Three | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percent) | 10.00% |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Decrease in unrecognized tax benefits is reasonably possible | $ 1 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - USD ($) shares in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
May 05, 2023 |
Mar. 31, 2023 |
Aug. 04, 2020 |
Aug. 03, 2020 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, additional authorized repurchase amount | $ 500,000,000 | $ 1,000,000,000 | ||
Treasury stock, shares acquired (in shares) | 3.6 | |||
Treasury stock, value acquired | $ 53,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 646,000,000 | |||
Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, shares acquired (in shares) | 5.2 | |||
Treasury stock, value acquired | $ 99,000,000 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Subsequent Events (Details) |
May 10, 2023
$ / shares
|
---|---|
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends declared per share (in dollars per share) | $ 0.25 |
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Equity method investments | $ 137 | $ 113 |
Other investments | 445 | 442 |
Note receivable | 193 | 193 |
Post-retirement plan assets | 42 | 41 |
Other | 173 | 175 |
Total other assets | $ 990 | $ 964 |
OTHER ASSETS - Narrative (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
Mar. 01, 2022 |
Nov. 05, 2021 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | $ 31,000,000 | $ 12,000,000 | |||
Investments in equity securities measured at fair value | 234,000,000 | $ 234,000,000 | |||
Unrealized gain (loss) on FV-NI and NAV investments | (1,000,000) | (56,000,000) | |||
Equity investments, net of cumulative impairment | 20,000,000 | 18,000,000 | |||
Cumulative impairment | 7,000,000 | 7,000,000 | |||
Impairment recorded | 0 | 0 | |||
Note receivable | 193,000,000 | 193,000,000 | |||
Affiliated Entity | Notes Receivable of Diamond Sports Finance SPV, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Note receivable | 193,000,000 | 193,000,000 | |||
A/R Facility | Line of Credit Facility | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payment to purchase lenders' rights and obligations | $ 184,000,000 | ||||
Payment to purchase lenders' rights and obligations as a proportion of total aggregate outstanding principal amount (as a percent) | 101.00% | ||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Fair Value Measured at Net Asset Value Per Share | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments measured at NAV | 191,000,000 | 190,000,000 | |||
Unfunded commitments related to investments valued using NAV practical expedient | 86,000,000 | $ 88,000,000 | |||
DSIH | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Fair value of equity method investments | 0 | 0 | $ 0 | ||
Income (loss) from equity method investments | $ 0 | 0 | |||
YES Network | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | $ 10,000,000 |
NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING (Details) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023
USD ($)
|
Feb. 07, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Debt Instrument [Line Items] | |||
Borrowings under revolving credit facility exceed total commitments (as a percent) | 35.00% | ||
Consolidated total debt | $ 4,258,000,000 | ||
Consolidated VIEs | |||
Debt Instrument [Line Items] | |||
Consolidated total debt | 2,000,000 | $ 2,000,000 | |
Interest Rate Swap | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 3.90% | ||
Notional amount | $ 600,000,000 | ||
Fair value of interest rate swap | 3,000,000 | ||
Interest Rate Swap | Level 2 | Fair Value | |||
Debt Instrument [Line Items] | |||
Fair value of interest rate swap | 3,000,000 | 0 | |
Guarantee Obligations | |||
Debt Instrument [Line Items] | |||
Unconditional and irrevocably guaranteed debt | 2,000,000 | 2,000,000 | |
Provide guarantee of certain obligations | $ 112,000,000 | ||
Annual escalations (as a percent) | 4.00% | ||
Debt term ( year) | 7 years | ||
Finance leases to affiliates | |||
Debt Instrument [Line Items] | |||
Finance lease liabilities, current | $ 3,000,000 | 3,000,000 | |
Finance lease liabilities, non-current | $ 5,000,000 | $ 6,000,000 | |
STG Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
First lien leverage ratio | 4.5 | ||
Borrowings outstanding | $ 0 |
REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Feb. 10, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Temporary Equity [Line Items] | ||||
Dividends accrued during the period | $ 3 | $ 3 | ||
Redeemable subsidiary preferred equity | $ 194 | |||
Liquidation preference | $ 198 | |||
Aggregate redemption price | $ 190 | |||
Unreturned capital contribution, percentage | 95.00% | |||
Unreturned capital contribution | $ 175 | |||
Redeemable Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Redeemed units (in shares) | 175,000 | |||
LIBOR | ||||
Temporary Equity [Line Items] | ||||
Cash interest rate (as a percent) | 8.00% | |||
Percent higher than the rate payable if dividends were paid in cash (as a percent) | 0.50% | |||
Minimum | ||||
Temporary Equity [Line Items] | ||||
Cash interest rate (as a percent) | 0.75% |
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands |
1 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 21, 2022
USD ($)
station
|
Jul. 28, 2021
USD ($)
|
Oct. 15, 2020
USD ($)
|
Sep. 02, 2020
USD ($)
|
Aug. 19, 2020
USD ($)
|
Jun. 08, 2020
petition
|
May 22, 2020
USD ($)
|
Nov. 06, 2018
lawsuit
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2021
USD ($)
|
Mar. 31, 2023
USD ($)
station
|
Oct. 03, 2018
broadcaster
|
|
Commitments and Contingencies [Line Items] | ||||||||||||
Number of television stations owned | station | 185 | |||||||||||
Unfavorable Regulatory Action | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Proposed fine | $ 2,700 | $ 9,000 | $ 13,000 | |||||||||
Proposed fine per station | $ 25 | $ 500 | ||||||||||
Issuance of forfeiture penalty upheld | $ 500 | |||||||||||
Additional legal expenses accrued | $ 8,000 | |||||||||||
Number of television stations owned | station | 83 | |||||||||||
Loss contingency, damages sought, total | $ 3,400 | |||||||||||
Loss contingency accrual | $ 3,400 | |||||||||||
Unfavorable Regulatory Action | Minimum | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Proposed fine per station | 20 | |||||||||||
Unfavorable Regulatory Action | Maximum | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Proposed fine per station | $ 26 | |||||||||||
Breach of Merger Agreement | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Agreement to pay to resolve FCC investigation | $ 48,000 | |||||||||||
Payments for resolve FCC investigation | $ 48,000 | |||||||||||
Compliance plan term | 4 years | |||||||||||
Number of petitions filed | petition | 2 | |||||||||||
Various Cases Alleging Violation of Sherman Antitrust Act | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Loss contingency, new claims filed, number (lawsuit) | lawsuit | 22 | |||||||||||
Loss contingency, number of other broadcasters | broadcaster | 13 |
EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Income (Numerator) | ||
Net income | $ 193 | $ 2,616 |
Net loss (income) attributable to the redeemable noncontrolling interests | 4 | (4) |
Net income attributable to the noncontrolling interests | (12) | (25) |
Net income (loss) attributable to Sinclair Broadcast Group | 185 | 2,587 |
Numerator for diluted earnings per common share available to common shareholders | $ 185 | $ 2,587 |
Shares (Denominator) | ||
Basic weighted-average common shares outstanding (in shares) | 69,744 | 72,164 |
Dilutive effect of stock-settled appreciation rights and outstanding stock options (in shares) | 120 | 12 |
Diluted weighted-average common and common equivalent shares outstanding (in shares) | 69,864 | 72,176 |
Antidilutive Securities Excluded from Computation | ||
Weighted-average stock-settled appreciation rights and outstanding stock options excluded (in shares) | 3,645 | 2,545 |
SEGMENT DATA - Narrative (Details) - segment |
2 Months Ended | 3 Months Ended |
---|---|---|
Feb. 28, 2022 |
Mar. 31, 2023 |
|
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | 1 |
SEGMENT DATA - Segment Financial Information (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 01, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|||
Segment data | ||||||
Assets | [1] | $ 6,436 | $ 6,704 | |||
Revenue | 773 | $ 1,288 | ||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 65 | 121 | ||||
Amortization of sports programming rights | 0 | 326 | ||||
Amortization of program contract costs | 22 | 25 | ||||
Corporate general and administrative expenses | 58 | 47 | ||||
Gain on deconsolidation of subsidiary | $ (3,357) | 0 | (3,357) | |||
(Gain) loss on asset dispositions and other, net of impairment | 6 | (5) | ||||
Operating income (loss) | 21 | 3,466 | ||||
Interest expense including amortization of debt discount and deferred financing costs | 74 | 115 | ||||
Income from equity method investments | 31 | 12 | ||||
Note receivable | 193 | 193 | ||||
Notes Receivable of Diamond Sports Finance SPV, LLC | Affiliated Entity | ||||||
Segment data | ||||||
Note receivable | 193 | $ 193 | ||||
Broadcast | ||||||
Segment data | ||||||
Intersegment revenues | 1 | 24 | ||||
Revenue from related parties | 10 | 5 | ||||
Operating Segments | Broadcast | ||||||
Segment data | ||||||
Assets | 4,379 | |||||
Revenue | 676 | 721 | ||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 59 | 60 | ||||
Amortization of sports programming rights | 0 | |||||
Amortization of program contract costs | 17 | 20 | ||||
Corporate general and administrative expenses | 33 | 43 | ||||
Gain on deconsolidation of subsidiary | 0 | |||||
(Gain) loss on asset dispositions and other, net of impairment | (2) | (5) | ||||
Operating income (loss) | 51 | 97 | ||||
Interest expense including amortization of debt discount and deferred financing costs | 1 | 1 | ||||
Income from equity method investments | 0 | 0 | ||||
Operating Segments | Local sports | ||||||
Segment data | ||||||
Revenue | 482 | |||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 54 | |||||
Amortization of sports programming rights | 326 | |||||
Amortization of program contract costs | 0 | |||||
Corporate general and administrative expenses | 1 | |||||
Gain on deconsolidation of subsidiary | 0 | |||||
(Gain) loss on asset dispositions and other, net of impairment | 0 | |||||
Operating income (loss) | (4) | |||||
Interest expense including amortization of debt discount and deferred financing costs | 72 | |||||
Income from equity method investments | 10 | |||||
Other & Corporate | ||||||
Segment data | ||||||
Assets | 2,057 | |||||
Revenue | 104 | 134 | ||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 7 | 8 | ||||
Amortization of sports programming rights | 0 | |||||
Amortization of program contract costs | 5 | 5 | ||||
Corporate general and administrative expenses | 25 | 3 | ||||
Gain on deconsolidation of subsidiary | (3,357) | |||||
(Gain) loss on asset dispositions and other, net of impairment | 8 | 0 | ||||
Operating income (loss) | (30) | 3,372 | ||||
Interest expense including amortization of debt discount and deferred financing costs | 76 | 47 | ||||
Income from equity method investments | 31 | 2 | ||||
Intersegment revenues | 5 | 22 | ||||
Eliminations | ||||||
Segment data | ||||||
Assets | 0 | |||||
Revenue | (7) | (49) | ||||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | (1) | (1) | ||||
Amortization of sports programming rights | 0 | |||||
Amortization of program contract costs | 0 | 0 | ||||
Corporate general and administrative expenses | 0 | 0 | ||||
Gain on deconsolidation of subsidiary | 0 | |||||
(Gain) loss on asset dispositions and other, net of impairment | 0 | 0 | ||||
Operating income (loss) | 0 | 1 | ||||
Interest expense including amortization of debt discount and deferred financing costs | (3) | (5) | ||||
Income from equity method investments | $ 0 | $ 0 | ||||
|
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|||
Variable Interest Entity [Line Items] | |||||
Assets | [1] | $ 6,436 | $ 6,704 | ||
Note receivable | 193 | 193 | |||
Notes Receivable of Diamond Sports Finance SPV, LLC | Affiliated Entity | |||||
Variable Interest Entity [Line Items] | |||||
Note receivable | 193 | 193 | |||
Eliminations | |||||
Variable Interest Entity [Line Items] | |||||
Assets | $ (6,322) | (5,999) | |||
Consolidated VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Variable interest entities outsourcing agreement initial term | 5 years | ||||
Assets | $ 83 | 115 | |||
Consolidated VIEs | Eliminations | |||||
Variable Interest Entity [Line Items] | |||||
Liabilities associated with the certain outsourcing agreements and purchase options | 131 | 130 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Assets | 196 | $ 187 | |||
Gain from related equity investments and other investments | $ 35 | $ 20 | |||
|
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Current assets: | ||||
Accounts receivable, net | $ 603 | $ 612 | ||
Other current assets | 216 | 182 | ||
Total current assets | 1,447 | 1,683 | ||
Property and equipment, net | 725 | 728 | ||
Definite-lived intangible assets, net | 904 | 946 | ||
Total assets | [1] | 6,436 | 6,704 | |
Current liabilities: | ||||
Other current liabilities | 605 | 608 | ||
Long-term liabilities: | ||||
Notes payable, finance leases, and commercial bank financing, less current portion | 4,221 | 4,227 | ||
Program contracts payable, less current portion | 10 | 10 | ||
Other long-term liabilities | 214 | 220 | ||
Total liabilities | [1] | 5,605 | 5,829 | |
Consolidated VIEs | ||||
Current assets: | ||||
Accounts receivable, net | 17 | 47 | ||
Other current assets | 2 | 3 | ||
Total current assets | 19 | 50 | ||
Property and equipment, net | 11 | 10 | ||
Goodwill and indefinite-lived intangible assets | 15 | 15 | ||
Definite-lived intangible assets, net | 38 | 40 | ||
Total assets | 83 | 115 | ||
Current liabilities: | ||||
Other current liabilities | 14 | 15 | ||
Long-term liabilities: | ||||
Notes payable, finance leases, and commercial bank financing, less current portion | 6 | 7 | ||
Program contracts payable, less current portion | 1 | 1 | ||
Other long-term liabilities | 3 | 3 | ||
Total liabilities | $ 24 | $ 26 | ||
|
RELATED PERSON TRANSACTIONS - Transactions with our Controlling Shareholders (Details) - Entities Owned by Controlling Shareholders - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Lease Services | ||
Related Party Transaction [Line Items] | ||
Lease payments made to entities | $ 2.0 | $ 2.0 |
Charter Aircraft | ||
Related Party Transaction [Line Items] | ||
Aircraft expenses (less than) | $ 0.1 | $ 0.2 |
RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Millions |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Aug. 31, 2016
USD ($)
|
Apr. 30, 2016
USD ($)
|
Mar. 31, 2023
USD ($)
renewal
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Related Party Transaction [Line Items] | |||||
Total revenues | $ 773.0 | $ 1,288.0 | |||
Affiliated Entity | Cunningham | |||||
Related Party Transaction [Line Items] | |||||
Agreement renewal period | 8 years | ||||
Right to acquire capital stock | 100.00% | ||||
Total payments made under the LMA excluded from liabilities | $ 62.0 | $ 61.0 | |||
Remaining purchase price | 54.0 | $ 54.0 | |||
Purchase options, broadcast stations | $ 0.2 | ||||
Proceeds from sale of master control equipment | $ 1.0 | ||||
Annual revenue from master control services | $ 0.3 | ||||
Annual revenue for share service | $ 0.6 | ||||
Share service agreement, annual service consideration increasing rate ( as a percent) | 3.00% | ||||
Affiliated Entity | Cunningham | LMA | |||||
Related Party Transaction [Line Items] | |||||
Number of additional renewal terms | renewal | 1 | ||||
Agreement renewal period | 5 years | ||||
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid | 3.00% | ||||
Amount used to determine annual LMA fees required to be paid | $ 6.0 | ||||
Annual increase in aggregate purchase price | 6.00% | ||||
Amount paid | $ 3.0 | 3.0 | |||
Affiliated Entity | Cunningham | Multi-Cast Agreements | |||||
Related Party Transaction [Line Items] | |||||
Amount paid | 0.5 | 0.2 | |||
Cunningham License Related Assets | Cunningham | |||||
Related Party Transaction [Line Items] | |||||
Total revenues | $ 36.0 | $ 34.0 |
RELATED PERSON TRANSACTIONS - MileOne Autogroup Inc. (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
MileOne AutoGroup | Advertising Time | ||
Related Party Transaction [Line Items] | ||
Amount received (less than) | $ 0.1 | $ 0.1 |
RELATED PERSON TRANSACTIONS - Leased Property by Real Estate Ventures (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Entities Owned by Controlling Shareholders | Lease Services | ||
Related Party Transaction [Line Items] | ||
Amount received | $ 0.4 | $ 0.2 |
RELATED PERSON TRANSACTIONS - Diamond Sports Intermediate Holdings LLC (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Broadcast | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 10 | $ 5 |
Management Services Agreement with Diamond Sports Group | Broadcast | Eliminations | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 24 | |
Affiliated Entity | Management Services Agreement with Diamond Sports Group | ||
Related Party Transaction [Line Items] | ||
Annual management service fee | $ 78 | |
Annual management service fee, deferral period | 5 years | |
Affiliated Entity | Distributions from Diamond Sports Intermediate Holdings LLC | Redeemable Subsidiary Preferred Equity | ||
Related Party Transaction [Line Items] | ||
Distributions of tax payments on dividends | 1 | |
Affiliated Entity | Notes Receivable of Diamond Sports Finance SPV, LLC | ||
Related Party Transaction [Line Items] | ||
Proceeds from collection of notes receivable | $ 3 | 50 |
Management Services Agreement with Diamond Sports Group | Broadcast | ||
Related Party Transaction [Line Items] | ||
Revenue from related parties | 9 | 28 |
DSIH | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 5 | $ 1 |
RELATED PERSON TRANSACTIONS - Other Equity Method Investees (Details) $ in Millions |
1 Months Ended | 3 Months Ended |
---|---|---|
Aug. 31, 2019
renewal
|
Mar. 31, 2022
USD ($)
|
|
Sports marketing company | ||
Related Party Transaction [Line Items] | ||
Marketing services | $ 2 | |
YES Network | ||
Related Party Transaction [Line Items] | ||
Number of renewal terms | renewal | 2 | |
Renewal period | 2 years | |
Revenue from related parties | 1 | |
Mobile Trucks | ||
Related Party Transaction [Line Items] | ||
Amount paid | $ 5 |
RELATED PERSON TRANSACTIONS - Sports Programming Rights (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023
USD ($)
|
Mar. 31, 2022
USD ($)
professional_team
|
|
Related Party Transaction [Line Items] | ||
Sports programming rights payments | $ 0 | $ 325 |
Sports Teams Affiliates | ||
Related Party Transaction [Line Items] | ||
Number of sports rights agreements assumed | professional_team | 6 | |
Sports programming rights payments | $ 61 |
RELATED PERSON TRANSACTIONS - Employees (Details) - Affiliated Entity - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Employee | Jason Smith | ||
Related Party Transaction [Line Items] | ||
Total compensation (less than) | $ 0.2 | $ 0.1 |
Employee | Ethan White | ||
Related Party Transaction [Line Items] | ||
Total compensation (less than) | $ 0.1 | 0.1 |
Employee | Ethan White | Restricted Stock | ||
Related Party Transaction [Line Items] | ||
Granted (in shares) | 1,252 | |
Vesting period | 2 years | |
Employee | Amberly Thompson | ||
Related Party Transaction [Line Items] | ||
Total compensation (less than) | $ 0.1 | 0.1 |
Employee | Edward Kim | ||
Related Party Transaction [Line Items] | ||
Total compensation (less than) | $ 0.1 | $ 0.1 |
Employee | Edward Kim | Restricted Stock | ||
Related Party Transaction [Line Items] | ||
Granted (in shares) | 516 | 302 |
Vesting period | 2 years | 2 years |
Vice President | Frederick Smith | ||
Related Party Transaction [Line Items] | ||
Total compensation (less than) | $ 0.2 | $ 0.2 |
Director | J. Duncan Smith | ||
Related Party Transaction [Line Items] | ||
Total compensation (less than) | $ 0.2 | $ 0.2 |
FAIR VALUE MEASUREMENTS - Schedule of Carrying Value and Fair Value of Notes and Debentures (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Feb. 07, 2023 |
Dec. 31, 2022 |
|
FAIR VALUE MEASUREMENTS: | ||||
Investments in equity securities | $ 234,000,000 | $ 234,000,000 | ||
Debt discount and deferred financing costs | 54,000,000 | 56,000,000 | ||
Interest Rate Swap | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate swap | $ 3,000,000 | |||
Notional amount | $ 600,000,000 | |||
Fixed interest rate | 3.90% | |||
Senior Notes | 5.500% Senior Notes due 2030 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate (as a percent) | 5.50% | |||
Senior Notes | 5.500% Senior Notes due 2030 | Sinclair Television Group, Inc. | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate (as a percent) | 5.50% | |||
Senior Notes | 5.125% Senior Notes due 2027 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate (as a percent) | 5.125% | |||
Senior Notes | 5.125% Senior Notes due 2027 | Sinclair Television Group, Inc. | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate (as a percent) | 5.125% | |||
Senior Notes | 4.125% Senior Secured Notes due 2030 | Sinclair Television Group, Inc. | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate (as a percent) | 4.125% | |||
Bally's | ||||
FAIR VALUE MEASUREMENTS: | ||||
Option purchase price, minimum (in dollars per share) | $ 30 | |||
Option purchase price, maximum (in dollars per share) | $ 45 | |||
Bally's | Options and Warrants | ||||
FAIR VALUE MEASUREMENTS: | ||||
Measurement adjustments | $ (56,000,000) | |||
Level 1 | Face Value | ||||
FAIR VALUE MEASUREMENTS: | ||||
Deferred compensation assets | $ 42,000,000 | 41,000,000 | ||
Deferred compensation liabilities | 37,000,000 | 35,000,000 | ||
Level 1 | Fair Value | ||||
FAIR VALUE MEASUREMENTS: | ||||
Investments in equity securities | 5,000,000 | 6,000,000 | ||
Deferred compensation assets | 42,000,000 | 41,000,000 | ||
Deferred compensation liabilities | 37,000,000 | 35,000,000 | ||
Level 1 | Fair Value | Money market funds | ||||
FAIR VALUE MEASUREMENTS: | ||||
Money market funds | 450,000,000 | 741,000,000 | ||
Level 2 | Face Value | Debt of variable interest entities | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 8,000,000 | 8,000,000 | ||
Level 2 | Face Value | Debt of non-media subsidiaries | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 16,000,000 | 16,000,000 | ||
Level 2 | Face Value | Senior Notes | 5.500% Senior Notes due 2030 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 500,000,000 | 500,000,000 | ||
Level 2 | Face Value | Senior Notes | 5.125% Senior Notes due 2027 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 282,000,000 | 282,000,000 | ||
Level 2 | Face Value | Senior Notes | 4.125% Senior Secured Notes due 2030 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 750,000,000 | 750,000,000 | ||
Level 2 | Face Value | Term Loan | Term Loan B-2, due September 30, 2026 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 1,255,000,000 | 1,258,000,000 | ||
Level 2 | Face Value | Term Loan | Term Loan B-3, due April 1, 2028 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 727,000,000 | 729,000,000 | ||
Level 2 | Face Value | Term Loan | Term Loan B-4, due April 21, 2029 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 744,000,000 | 746,000,000 | ||
Level 2 | Fair Value | ||||
FAIR VALUE MEASUREMENTS: | ||||
Investments in equity securities | 154,000,000 | 153,000,000 | ||
Level 2 | Fair Value | Debt of variable interest entities | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 8,000,000 | 8,000,000 | ||
Level 2 | Fair Value | Debt of non-media subsidiaries | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 16,000,000 | 16,000,000 | ||
Level 2 | Fair Value | Senior Notes | 5.500% Senior Notes due 2030 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 399,000,000 | 347,000,000 | ||
Level 2 | Fair Value | Senior Notes | 5.125% Senior Notes due 2027 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 244,000,000 | 230,000,000 | ||
Level 2 | Fair Value | Senior Notes | 4.125% Senior Secured Notes due 2030 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 608,000,000 | 560,000,000 | ||
Level 2 | Fair Value | Term Loan | Term Loan B-2, due September 30, 2026 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 1,148,000,000 | 1,198,000,000 | ||
Level 2 | Fair Value | Term Loan | Term Loan B-3, due April 1, 2028 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 656,000,000 | 692,000,000 | ||
Level 2 | Fair Value | Term Loan | Term Loan B-4, due April 21, 2029 | ||||
FAIR VALUE MEASUREMENTS: | ||||
Debt fair value disclosure | 676,000,000 | 709,000,000 | ||
Level 2 | Fair Value | Interest Rate Swap | ||||
FAIR VALUE MEASUREMENTS: | ||||
Interest rate swap | 3,000,000 | 0 | ||
Level 3 | Face Value | Options and Warrants | ||||
FAIR VALUE MEASUREMENTS: | ||||
Measurement adjustments | 0 | $ (56,000,000) | ||
Level 3 | Fair Value | ||||
FAIR VALUE MEASUREMENTS: | ||||
Investments in equity securities | $ 75,000,000 | $ 75,000,000 |
FAIR VALUE MEASUREMENTS - Schedule of Level 3 Activity (Details) - Level 3 - Face Value - Options and Warrants - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value at beginning of period | $ 75 | $ 282 |
Measurement adjustments | 0 | (56) |
Fair value at end of period | $ 75 | $ 226 |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) $ in Millions |
Mar. 31, 2023
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Consolidated total debt | $ 4,258 |
Subsidiary Issuer | |
Debt Instrument [Line Items] | |
Consolidated total debt | 4,243 |
Amount of debt guaranteed by parent | $ 4,211 |
5.125% Senior Notes due 2027 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.125% |
5.125% Senior Notes due 2027 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.125% |
5.500% Senior Notes due 2030 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.50% |
5.500% Senior Notes due 2030 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.50% |
4.125% Senior Secured Notes due 2030 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 4.125% |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions |
Mar. 31, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
CONDENSED CONSOLIDATING BALANCE SHEET | ||||
Cash and cash equivalents | $ 623 | $ 884 | ||
Accounts receivable, net | 603 | 612 | ||
Other current assets | 221 | 187 | ||
Total current assets | 1,447 | 1,683 | ||
Property and equipment, net | 725 | 728 | ||
Investment in equity of consolidated subsidiaries | 0 | 0 | ||
Goodwill | 2,082 | 2,088 | ||
Indefinite-lived intangible assets | 150 | 150 | ||
Definite-lived intangible assets, net | 904 | 946 | ||
Other long-term assets | 1,128 | 1,109 | ||
Total assets | [1] | 6,436 | 6,704 | |
Accounts payable and accrued liabilities | 402 | 397 | ||
Current portion of long-term debt | 37 | 38 | ||
Other current liabilities | 166 | 173 | ||
Total current liabilities | 605 | 608 | ||
Long-term debt | 4,221 | 4,227 | ||
Other long-term liabilities | 779 | 994 | ||
Total liabilities | [1] | 5,605 | 5,829 | |
Redeemable noncontrolling interests | 0 | 194 | ||
Total Sinclair Broadcast Group shareholders’ equity | 890 | 748 | ||
Noncontrolling interests in consolidated subsidiaries | (59) | (67) | ||
Total liabilities, redeemable noncontrolling interests, and equity | 6,436 | 6,704 | ||
Reportable Legal Entities | Sinclair Broadcast Group, Inc. | ||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||
Cash and cash equivalents | 48 | 47 | ||
Accounts receivable, net | 0 | 0 | ||
Other current assets | 26 | 32 | ||
Total current assets | 74 | 79 | ||
Property and equipment, net | 0 | 0 | ||
Investment in equity of consolidated subsidiaries | 1,091 | 962 | ||
Goodwill | 0 | 0 | ||
Indefinite-lived intangible assets | 0 | 0 | ||
Definite-lived intangible assets, net | 0 | 0 | ||
Other long-term assets | 536 | 542 | ||
Total assets | 1,701 | 1,583 | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Other current liabilities | 3 | 4 | ||
Total current liabilities | 3 | 4 | ||
Long-term debt | 0 | 0 | ||
Other long-term liabilities | 808 | 831 | ||
Total liabilities | 811 | 835 | ||
Redeemable noncontrolling interests | 0 | |||
Total Sinclair Broadcast Group shareholders’ equity | 890 | 748 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total liabilities, redeemable noncontrolling interests, and equity | 1,701 | 1,583 | ||
Reportable Legal Entities | Sinclair Television Group, Inc. | ||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||
Cash and cash equivalents | 461 | 750 | ||
Accounts receivable, net | 0 | 0 | ||
Other current assets | 57 | 42 | ||
Total current assets | 518 | 792 | ||
Property and equipment, net | 30 | 31 | ||
Investment in equity of consolidated subsidiaries | 3,492 | 3,463 | ||
Goodwill | 0 | 0 | ||
Indefinite-lived intangible assets | 0 | 0 | ||
Definite-lived intangible assets, net | 0 | 0 | ||
Other long-term assets | 944 | 938 | ||
Total assets | 4,984 | 5,224 | ||
Accounts payable and accrued liabilities | 70 | 80 | ||
Current portion of long-term debt | 28 | 28 | ||
Other current liabilities | 11 | 8 | ||
Total current liabilities | 109 | 116 | ||
Long-term debt | 4,176 | 4,181 | ||
Other long-term liabilities | 54 | 52 | ||
Total liabilities | 4,339 | 4,349 | ||
Redeemable noncontrolling interests | 0 | |||
Total Sinclair Broadcast Group shareholders’ equity | 645 | 875 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total liabilities, redeemable noncontrolling interests, and equity | 4,984 | 5,224 | ||
Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC | ||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||
Cash and cash equivalents | 1 | 1 | ||
Accounts receivable, net | 581 | 555 | ||
Other current assets | 165 | 159 | ||
Total current assets | 747 | 715 | ||
Property and equipment, net | 666 | 668 | ||
Investment in equity of consolidated subsidiaries | 0 | 0 | ||
Goodwill | 2,081 | 2,081 | ||
Indefinite-lived intangible assets | 136 | 136 | ||
Definite-lived intangible assets, net | 894 | 935 | ||
Other long-term assets | 550 | 512 | ||
Total assets | 5,074 | 5,047 | ||
Accounts payable and accrued liabilities | 315 | 300 | ||
Current portion of long-term debt | 6 | 6 | ||
Other current liabilities | 123 | 139 | ||
Total current liabilities | 444 | 445 | ||
Long-term debt | 23 | 24 | ||
Other long-term liabilities | 1,116 | 1,120 | ||
Total liabilities | 1,583 | 1,589 | ||
Redeemable noncontrolling interests | 0 | |||
Total Sinclair Broadcast Group shareholders’ equity | 3,491 | 3,458 | ||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | ||
Total liabilities, redeemable noncontrolling interests, and equity | 5,074 | 5,047 | ||
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||
Cash and cash equivalents | 113 | 86 | ||
Accounts receivable, net | 22 | 57 | ||
Other current assets | 25 | 19 | ||
Total current assets | 160 | 162 | ||
Property and equipment, net | 50 | 51 | ||
Investment in equity of consolidated subsidiaries | 0 | 0 | ||
Goodwill | 1 | 7 | ||
Indefinite-lived intangible assets | 14 | 14 | ||
Definite-lived intangible assets, net | 38 | 42 | ||
Other long-term assets | 736 | 573 | ||
Total assets | 999 | 849 | ||
Accounts payable and accrued liabilities | 18 | 18 | ||
Current portion of long-term debt | 4 | 5 | ||
Other current liabilities | 79 | 87 | ||
Total current liabilities | 101 | 110 | ||
Long-term debt | 389 | 387 | ||
Other long-term liabilities | 305 | 314 | ||
Total liabilities | 795 | 811 | ||
Redeemable noncontrolling interests | 194 | |||
Total Sinclair Broadcast Group shareholders’ equity | 267 | (86) | ||
Noncontrolling interests in consolidated subsidiaries | (63) | (70) | ||
Total liabilities, redeemable noncontrolling interests, and equity | 999 | 849 | ||
Eliminations | ||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Other current assets | (52) | (65) | ||
Total current assets | (52) | (65) | ||
Property and equipment, net | (21) | (22) | ||
Investment in equity of consolidated subsidiaries | (4,583) | (4,425) | ||
Goodwill | 0 | 0 | ||
Indefinite-lived intangible assets | 0 | 0 | ||
Definite-lived intangible assets, net | (28) | (31) | ||
Other long-term assets | (1,638) | (1,456) | ||
Total assets | (6,322) | (5,999) | ||
Accounts payable and accrued liabilities | (1) | (1) | ||
Current portion of long-term debt | (1) | (1) | ||
Other current liabilities | (50) | (65) | ||
Total current liabilities | (52) | (67) | ||
Long-term debt | (367) | (365) | ||
Other long-term liabilities | (1,504) | (1,323) | ||
Total liabilities | (1,923) | (1,755) | ||
Redeemable noncontrolling interests | 0 | |||
Total Sinclair Broadcast Group shareholders’ equity | (4,403) | (4,247) | ||
Noncontrolling interests in consolidated subsidiaries | 4 | 3 | ||
Total liabilities, redeemable noncontrolling interests, and equity | $ (6,322) | $ (5,999) | ||
|
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 01, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||
Total revenues | $ 773 | $ 1,288 | |
Media programming and production expenses | 398 | 758 | |
Selling, general and administrative expenses | 249 | 267 | |
Gain on deconsolidation of subsidiary | $ (3,357) | 0 | (3,357) |
Depreciation, amortization and other operating expenses | 105 | 154 | |
Total operating expenses (gains) | 752 | (2,178) | |
Operating (loss) income | 21 | 3,466 | |
Equity in earnings of consolidated subsidiaries | 0 | 0 | |
Interest expense | (74) | (115) | |
Other (expense) income | 42 | (48) | |
Total other expense, net | (32) | (163) | |
Income tax (provision) benefit | 204 | (687) | |
Net income (loss) | 193 | 2,616 | |
Net income attributable to the redeemable noncontrolling interests | 4 | (4) | |
Net income attributable to the noncontrolling interests | (12) | (25) | |
Net income (loss) attributable to Sinclair Broadcast Group | 185 | 2,587 | |
Comprehensive income | 190 | 2,619 | |
Reportable Legal Entities | Sinclair Broadcast Group, Inc. | |||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||
Total revenues | 0 | 0 | |
Media programming and production expenses | 0 | 0 | |
Selling, general and administrative expenses | 25 | 3 | |
Gain on deconsolidation of subsidiary | (3,357) | ||
Depreciation, amortization and other operating expenses | 1 | 0 | |
Total operating expenses (gains) | 26 | (3,354) | |
Operating (loss) income | (26) | 3,354 | |
Equity in earnings of consolidated subsidiaries | 207 | (38) | |
Interest expense | 0 | (4) | |
Other (expense) income | (3) | 4 | |
Total other expense, net | 204 | (38) | |
Income tax (provision) benefit | 7 | (729) | |
Net income (loss) | 185 | 2,587 | |
Net income attributable to the redeemable noncontrolling interests | 0 | 0 | |
Net income attributable to the noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Sinclair Broadcast Group | 185 | 2,587 | |
Comprehensive income | 185 | 2,587 | |
Reportable Legal Entities | Sinclair Television Group, Inc. | |||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||
Total revenues | 10 | 29 | |
Media programming and production expenses | 3 | 0 | |
Selling, general and administrative expenses | 35 | 48 | |
Gain on deconsolidation of subsidiary | 0 | ||
Depreciation, amortization and other operating expenses | 1 | 2 | |
Total operating expenses (gains) | 39 | 50 | |
Operating (loss) income | (29) | (21) | |
Equity in earnings of consolidated subsidiaries | 69 | 100 | |
Interest expense | (73) | (44) | |
Other (expense) income | 8 | 1 | |
Total other expense, net | 4 | 57 | |
Income tax (provision) benefit | 19 | 20 | |
Net income (loss) | (6) | 56 | |
Net income attributable to the redeemable noncontrolling interests | 0 | 0 | |
Net income attributable to the noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Sinclair Broadcast Group | (6) | 56 | |
Comprehensive income | (9) | 56 | |
Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC | |||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||
Total revenues | 739 | 791 | |
Media programming and production expenses | 376 | 362 | |
Selling, general and administrative expenses | 187 | 199 | |
Gain on deconsolidation of subsidiary | 0 | ||
Depreciation, amortization and other operating expenses | 82 | 84 | |
Total operating expenses (gains) | 645 | 645 | |
Operating (loss) income | 94 | 146 | |
Equity in earnings of consolidated subsidiaries | 0 | 0 | |
Interest expense | (1) | (1) | |
Other (expense) income | 0 | 3 | |
Total other expense, net | (1) | 2 | |
Income tax (provision) benefit | (23) | (47) | |
Net income (loss) | 70 | 101 | |
Net income attributable to the redeemable noncontrolling interests | 0 | 0 | |
Net income attributable to the noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Sinclair Broadcast Group | 70 | 101 | |
Comprehensive income | 70 | 101 | |
Reportable Legal Entities | Non- Guarantor Subsidiaries | |||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||
Total revenues | 43 | 531 | |
Media programming and production expenses | 34 | 412 | |
Selling, general and administrative expenses | 5 | 63 | |
Gain on deconsolidation of subsidiary | 0 | ||
Depreciation, amortization and other operating expenses | 22 | 70 | |
Total operating expenses (gains) | 61 | 545 | |
Operating (loss) income | (18) | (14) | |
Equity in earnings of consolidated subsidiaries | 0 | 0 | |
Interest expense | (3) | (75) | |
Other (expense) income | 37 | (50) | |
Total other expense, net | 34 | (125) | |
Income tax (provision) benefit | 201 | 69 | |
Net income (loss) | 217 | (70) | |
Net income attributable to the redeemable noncontrolling interests | 4 | (4) | |
Net income attributable to the noncontrolling interests | (12) | (25) | |
Net income (loss) attributable to Sinclair Broadcast Group | 209 | (99) | |
Comprehensive income | 217 | (67) | |
Eliminations | |||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | |||
Total revenues | (19) | (63) | |
Media programming and production expenses | (15) | (16) | |
Selling, general and administrative expenses | (3) | (46) | |
Gain on deconsolidation of subsidiary | 0 | ||
Depreciation, amortization and other operating expenses | (1) | (2) | |
Total operating expenses (gains) | (19) | (64) | |
Operating (loss) income | 0 | 1 | |
Equity in earnings of consolidated subsidiaries | (276) | (62) | |
Interest expense | 3 | 9 | |
Other (expense) income | 0 | (6) | |
Total other expense, net | (273) | (59) | |
Income tax (provision) benefit | 0 | 0 | |
Net income (loss) | (273) | (58) | |
Net income attributable to the redeemable noncontrolling interests | 0 | 0 | |
Net income attributable to the noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Sinclair Broadcast Group | (273) | (58) | |
Comprehensive income | $ (273) | $ (58) |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | $ 62 | $ 70 |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (20) | (21) |
Spectrum repack reimbursements | 1 | 1 |
Proceeds from sale of assets | 0 | 4 |
Deconsolidation of subsidiary cash | 0 | (315) |
Purchases of investments | (33) | (5) |
Distributions from investments | 8 | 70 |
Net cash flows used in investing activities | (44) | (266) |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of notes payable, commercial bank financing, and finance leases | (9) | (7) |
Repurchase of outstanding Class A Common Stock | (53) | (68) |
Dividends paid on Class A and Class B Common Stock | (18) | (18) |
Dividends paid on redeemable subsidiary preferred equity | 0 | (1) |
Redemption of redeemable subsidiary preferred equity | (190) | 0 |
Distributions to noncontrolling interests, net | (4) | (3) |
Increase (decrease) in intercompany payables | 0 | 0 |
Other, net | (5) | (5) |
Net cash flows used in financing activities | (279) | (102) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (261) | (298) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 884 | 819 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 623 | 521 |
Reportable Legal Entities | Sinclair Broadcast Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (26) | (5) |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Acquisition of property and equipment | 0 | 0 |
Spectrum repack reimbursements | 0 | 0 |
Proceeds from sale of assets | 0 | |
Deconsolidation of subsidiary cash | 0 | |
Purchases of investments | (2) | (2) |
Distributions from investments | 0 | 50 |
Net cash flows used in investing activities | (2) | 48 |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of notes payable, commercial bank financing, and finance leases | 0 | 0 |
Repurchase of outstanding Class A Common Stock | (53) | (68) |
Dividends paid on Class A and Class B Common Stock | (18) | (18) |
Dividends paid on redeemable subsidiary preferred equity | 0 | |
Redemption of redeemable subsidiary preferred equity | 0 | |
Distributions to noncontrolling interests, net | 0 | 0 |
Increase (decrease) in intercompany payables | 105 | 100 |
Other, net | (5) | (5) |
Net cash flows used in financing activities | 29 | 9 |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 1 | 52 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 47 | 2 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 48 | 54 |
Reportable Legal Entities | Sinclair Television Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (74) | (45) |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Acquisition of property and equipment | 0 | (1) |
Spectrum repack reimbursements | 0 | 0 |
Proceeds from sale of assets | 0 | |
Deconsolidation of subsidiary cash | 0 | |
Purchases of investments | 0 | (1) |
Distributions from investments | 0 | 0 |
Net cash flows used in investing activities | 0 | (2) |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of notes payable, commercial bank financing, and finance leases | (7) | (5) |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Dividends paid on redeemable subsidiary preferred equity | 0 | |
Redemption of redeemable subsidiary preferred equity | 0 | |
Distributions to noncontrolling interests, net | 0 | 0 |
Increase (decrease) in intercompany payables | (208) | 151 |
Other, net | 0 | 0 |
Net cash flows used in financing activities | (215) | 146 |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (289) | 99 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 750 | 316 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 461 | 415 |
Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 83 | 327 |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (19) | (18) |
Spectrum repack reimbursements | 1 | 1 |
Proceeds from sale of assets | 4 | |
Deconsolidation of subsidiary cash | 0 | |
Purchases of investments | (21) | (1) |
Distributions from investments | 0 | 10 |
Net cash flows used in investing activities | (39) | (4) |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of notes payable, commercial bank financing, and finance leases | (1) | (1) |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Dividends paid on redeemable subsidiary preferred equity | 0 | |
Redemption of redeemable subsidiary preferred equity | 0 | |
Distributions to noncontrolling interests, net | 0 | 0 |
Increase (decrease) in intercompany payables | (43) | (323) |
Other, net | 0 | 0 |
Net cash flows used in financing activities | (44) | (324) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | (1) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 1 | 2 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 1 | 1 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 77 | (209) |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Acquisition of property and equipment | (1) | (2) |
Spectrum repack reimbursements | 0 | 0 |
Proceeds from sale of assets | 0 | |
Deconsolidation of subsidiary cash | (315) | |
Purchases of investments | (10) | (1) |
Distributions from investments | 8 | 10 |
Net cash flows used in investing activities | (3) | (308) |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of notes payable, commercial bank financing, and finance leases | (1) | (1) |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Dividends paid on redeemable subsidiary preferred equity | (1) | |
Redemption of redeemable subsidiary preferred equity | (190) | |
Distributions to noncontrolling interests, net | (4) | (3) |
Increase (decrease) in intercompany payables | 148 | 74 |
Other, net | 0 | 0 |
Net cash flows used in financing activities | (47) | 69 |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 27 | (448) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 86 | 499 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 113 | 51 |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 2 | 2 |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | ||
Acquisition of property and equipment | 0 | 0 |
Spectrum repack reimbursements | 0 | 0 |
Proceeds from sale of assets | 0 | |
Deconsolidation of subsidiary cash | 0 | |
Purchases of investments | 0 | 0 |
Distributions from investments | 0 | 0 |
Net cash flows used in investing activities | 0 | 0 |
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Repayments of notes payable, commercial bank financing, and finance leases | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Dividends paid on redeemable subsidiary preferred equity | 0 | |
Redemption of redeemable subsidiary preferred equity | 0 | |
Distributions to noncontrolling interests, net | 0 | 0 |
Increase (decrease) in intercompany payables | (2) | (2) |
Other, net | 0 | 0 |
Net cash flows used in financing activities | (2) | (2) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ 0 | $ 0 |
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