CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: (Tables)

6 Months Ended

Jun. 30, 2013

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—		$	517,227		$	6,390		$	27,195		$	—		$	550,812
Accounts and other receivables	63			432			204,706			6,700			(1,070		)	210,831
Other current assets	(197		)	7,395			31,099			8,941			(1,960		)	45,278
Total current assets	(134		)	525,054			242,195			42,836			(3,030		)	806,921
Property and equipment, net	5,632			9,964			335,456			114,496			(10,734		)	454,814
Investment in consolidated subsidiaries	340,967			1,703,612			4,179			—			(2,048,758		)	—
Restricted cash — long-term	—			33,636			223			—			—			33,859
Other long-term assets	81,472			410,344			58,363			122,514			(473,057		)	199,636
Total other long-term assets	422,439			2,147,592			62,765			122,514			(2,521,815		)	233,495
Goodwill and other intangible assets	—			—			1,768,272			166,240			(86,349		)	1,848,163
Total assets	$	427,937		$	2,682,610		$	2,408,688		$	446,086		$	(2,621,928	)	$	3,343,393
Accounts payable and accrued liabilities	$	490		$	41,187		$	84,735		$	12,427		$	(226	)	$	138,613
Current portion of long-term debt	518			4,621			903			13,052			—			19,094
Current portion of affiliate long-term debt	1,214			—			964			605			(605		)	2,178
Other current liabilities	2,638			—			57,064			8,377			(1,676		)	66,403
Total current liabilities	4,860			45,808			143,666			34,461			(2,507		)	226,288
Long-term debt	12,324			2,276,353			36,226			82,777			—			2,407,680
Affiliate long-term debt	5,633			—			14,587			277,835			(277,835		)	20,220
Other liabilities	26,401			6,476			511,743			115,137			(356,560		)	303,197
Total liabilities	49,218			2,328,637			706,222			510,210			(636,902		)	2,957,385
Common stock	997			—			10			—			(10		)	997
Additional paid-in capital	1,088,639			261,323			1,005,263			54,119			(1,320,705		)	1,088,639
Accumulated (deficit) earnings	(705,846		)	96,103			700,232			(127,425		)	(668,910		)	(705,846		)
Accumulated other comprehensive (loss) income	(5,071		)	(3,453		)	(3,039		)	1,893			4,599			(5,071		)
Total Sinclair Broadcast Group equity (deficit)	378,719			353,973			1,702,466			(71,413		)	(1,985,026		)	378,719
Noncontrolling interests in consolidated subsidiaries	—			—			—			7,289			—			7,289
Total liabilities and equity (deficit)	$	427,937		$	2,682,610		$	2,408,688		$	446,086		$	(2,621,928	)	$	3,343,393

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012

(in thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—		$	7,230		$	199		$	15,436		$	—		$	22,865
Accounts and other receivables	152			907			175,837			7,622			(622		)	183,896
Other current assets	2,821			2,342			56,522			9,028			(3,383		)	67,330
Assets held for sale	—			—			30,357			—			—			30,357
Total current assets	2,973			10,479			262,915			32,086			(4,005		)	304,448
Property and equipment, net	6,315			8,938			321,873			113,454			(10,867		)	439,713
Investment in consolidated subsidiaries	—			1,636,504			1,956			—			(1,638,460		)	—
Restricted cash — long term	—			2			223			—			—			225
Other long-term assets	84,055			375,687			60,114			112,757			(429,862		)	202,751
Total other long-term assets	84,055			2,012,193			62,293			112,757			(2,068,322		)	202,976
Goodwill and other intangible assets	—			—			1,706,646			153,961			(78,047		)	1,782,560
Total assets	$	93,343		$	2,031,610		$	2,353,727		$	412,258		$	(2,161,241	)	$	2,729,697
Accounts payable and accrued liabilities	$	326		$	61,165		$	83,049		$	9,379		$	(102	)	$	153,817
Current portion of long-term debt	483			31,113			800			15,226			—			47,622
Current portion of affiliate long-term debt	1,102			—			602			433			(433		)	1,704
Other current liabilities	—			—			96,288			8,871			(3,099		)	102,060
Liabilities held for sale	—			—			2,397			—			—			2,397
Total current liabilities	1,911			92,278			183,136			33,909			(3,634		)	307,600
Long-term debt	12,502			2,088,586			36,705			73,073			—			2,210,866
Affiliate long-term debt	6,303			—			6,884			267,521			(267,521		)	13,187
Dividends in excess of investment in consolidated subsidiaries	178,869			—			—			—			(178,869		)	—
Other liabilities	10,708			2,509			491,845			103,007			(309,972		)	298,097
Total liabilities	210,293			2,183,373			718,570			477,510			(759,996		)	2,829,750
Common stock	812			—			10			—			(10		)	812
Additional paid-in capital	600,928			(175,973		)	1,084,302			64,096			(972,425		)	600,928
Accumulated (deficit) earnings	(713,697		)	27,597			553,777			(147,299		)	(434,075		)	(713,697		)
Accumulated other comprehensive (loss) gain	(4,993		)	(3,387		)	(2,932		)	1,054			5,265			(4,993		)
Total Sinclair Broadcast Group shareholders’ (deficit) equity	(116,950		)	(151,763		)	1,635,157			(82,149		)	(1,401,245		)	(116,950		)
Noncontrolling interests in consolidated subsidiaries	—			—			—			16,897			—			16,897
Total liabilities and equity (deficit)	$	93,343		$	2,031,610		$	2,353,727		$	412,258		$	(2,161,241	)	$	2,729,697

Schedule of condensed consolidating statement of operations and comprehensive income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	297,175		$	33,515		$	(16,536	)	$	314,154
Program and production	—			63			87,474			9,031			(10,874		)	85,694
Selling, general and administrative	954			10,211			52,151			6,552			(5,124		)	64,744
Depreciation, amortization and other operating expenses	348			630			56,004			16,566			5,888			79,436
Total operating expenses	1,302			10,904			195,629			32,149			(10,110		)	229,874
Operating (loss) income	(1,302		)	(10,904		)	101,546			1,366			(6,426		)	84,280
Equity in earnings of consolidated subsidiaries	18,227			62,525			(30		)	—			(80,722		)	—
Interest expense	(389		)	(42,758		)	(1,224		)	(6,302		)	5,208			(45,465		)
Other income (expense)	1,077			(11,069		)	(5,436		)	5,163			(5,940		)	(16,205		)
Total other income (expense)	18,915			8,698			(6,690		)	(1,139		)	(81,454		)	(61,670		)
Income tax benefit (provision)	213			22,992			(32,297		)	(562		)	—			(9,654		)
Income from discontinued operations	—			5,013			90			—			—			5,103
Net income (loss)	17,826			25,799			62,649			(335		)	(87,880		)	18,059
Net income attributable to the noncontrolling interests	—			—			—			(233		)	—			(233		)
Net income (loss) attributable to Sinclair Broadcast Group	$	17,826		$	25,799		$	62,649		$	(568	)	$	(87,880	)	$	17,826
Comprehensive income (loss)	$	18,020		$	25,759		$	62,649		$	(568	)	$	(87,841	)	$	18,020

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2012

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	239,243		$	14,141		$	(2,310	)	$	251,074
Program and production	—			5			64,907			83			(2,399		)	62,596
Selling, general and administrative	518			11,932			35,854			896			(106		)	49,094
Depreciation, amortization and other operating expenses	383			313			54,320			12,617			(138		)	67,495
Total operating expenses	901			12,250			155,081			13,596			(2,643		)	179,185
Operating (loss) income	(901		)	(12,250		)	84,162			545			333			71,889
Equity in earnings of consolidated subsidiaries	30,365			54,217			—			—			(84,582		)	—
Interest expense	(318		)	(26,953		)	(1,185		)	(6,055		)	5,191			(29,320		)
Other income (expense)	723			293			22			4,953			(128		)	5,863
Total other income (expense)	30,770			27,557			(1,163		)	(1,102		)	(79,519		)	(23,457		)
Income tax benefit (provision)	191			10,417			(27,770		)	(1,136		)	—			(18,298		)
(Loss) income from discontinued operations	—			(67		)	65			—			—			(2		)
Net income (loss)	30,060			25,657			55,294			(1,693		)	(79,186		)	30,132
Net income attributable to the noncontrolling interests	—			—			—			(72		)	—			(72		)
Net income (loss) attributable to Sinclair Broadcast Group	$	30,060		$	25,657		$	55,294		$	(1,765	)	$	(79,186	)	$	30,060
Comprehensive income (loss)	$	30,217		$	25,743		$	55,294		$	(1,765	)	$	(79,272	)	$	30,217

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	567,722		$	57,432		$	(28,382	)	$	596,772
Program and production	—			95			170,174			14,619			(18,761		)	166,127
Selling, general and administrative	1,778			20,128			103,354			12,241			(9,569		)	127,932
Depreciation, amortization and other operating expenses	690			929			118,107			31,547			3,504			154,777
Total operating expenses	2,468			21,152			391,635			58,407			(24,826		)	448,836
Operating (loss) income	(2,468		)	(21,152		)	176,087			(975		)	(3,556		)	147,936
Equity in earnings of consolidated subsidiaries	36,076			109,242			(60		)	—			(145,258		)	—
Interest expense	(700		)	(77,992		)	(2,338		)	(12,489		)	10,357			(83,162		)
Other income (expense)	2,033			(3,631		)	(12,724		)	3,906			(6,384		)	(16,800		)
Total other income (expense)	37,409			27,619			(15,122		)	(8,583		)	(141,285		)	(99,962		)
Income tax (provision) benefit	(118		)	30,978			(51,031		)	1,668			—			(18,503		)
Income from discontinued operations	—			4,955			503			—			—			5,458
Net income (loss)	34,823			42,400			110,437			(7,890		)	(144,841		)	34,929
Net income attributable to the noncontrolling interests	—			—			—			(106		)	—			(106		)
Net income (loss) attributable to Sinclair Broadcast Group	$	34,823		$	42,400		$	110,437		$	(7,996	)	$	(144,841	)	$	34,823
Comprehensive income (loss)	$	34,851		$	42,322		$	110,437		$	(7,996	)	$	(144,763	)	$	34,851

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2012

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	447,989		$	29,815		$	(4,356	)	$	473,448
Program and production	—			13			126,392			159			(4,171		)	122,393
Selling, general and administrative	1,371			25,563			65,355			2,091			(207		)	94,173
Depreciation, amortization and other operating expenses	766			664			96,817			27,128			(276		)	125,099
Total operating expenses	2,137			26,240			288,564			29,378			(4,654		)	341,665
Operating (loss) income	(2,137		)	(26,240		)	159,425			437			298			131,783
Equity in earnings of consolidated subsidiaries	60,556			106,078			—			—			(166,634		)	—
Interest expense	(658		)	(51,717		)	(2,404		)	(12,299		)	10,371			(56,707		)
Other income (expense)	1,323			10			45			6,154			(257		)	7,275
Total other income (expense)	61,221			54,371			(2,359		)	(6,145		)	(156,520		)	(49,432		)
Income tax benefit (provision)	335			18,542			(49,005		)	7,036			—			(23,092		)
(Loss) income from discontinued operations	—			(134		)	81			—			—			(53		)
Net income (loss)	59,419			46,539			108,142			1,328			(156,222		)	59,206
Net loss attributable to the noncontrolling interests	—			—			—			213			—			213
Net income (loss) attributable to Sinclair Broadcast Group	$	59,419		$	46,539		$	108,142		$	1,541		$	(156,222	)	$	59,419
Comprehensive income	$	59,395		$	46,728		$	108,142		$	1,541		$	(156,411	)	$	59,395

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(30,295	)	$	(107,075	)	$	187,733		$	7,027		$	(4,020	)	$	53,370
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(1,112		)	(14,484		)	(1,570		)	—			(17,166		)
Payments for acquisitions of television stations	—			—			(96,160		)	—			—			(96,160		)
Payments for acquisitions in other operating divisions	—			—			—			(4,650		)	—			(4,650		)
Purchase of alarm monitoring contracts	—			—			—			(6,284		)	—			(6,284		)
Proceeds from sale of broadcast assets	—			—			27,992			—			—			27,992
Decrease in restricted cash	—			(33,634		)	—			—			—			(33,634		)
Other, net	711			—			173			12,245			(9,863		)	3,266
Net cash flows (used in) from investing activities	711			(34,746		)	(82,479		)	(259		)	(9,863		)	(126,636		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,148,500			—			13,844			—			1,162,344
Repayments of notes payable, commercial bank financing and capital leases	(234		)	(984,755		)	(372		)	(6,363		)	—			(991,724		)
Proceeds from the sale of common stock	472,400			—			—			—			—			472,400
Dividends paid on Class A and Class B Common Stock	(27,210		)	—			(2		)	—			240			(26,972		)
Increase (decrease) in intercompany payables	(416,440		)	504,822			(98,340		)	(3,685		)	13,643			—
Other, net	1,068			(16,749		)	(349		)	1,195			—			(14,835		)
Net cash flows (used in) from financing activities	29,584			651,818			(99,063		)	4,991			13,883			601,213
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			509,997			6,191			11,759			—			527,947
CASH AND CASH EQUIVALENTS, beginning of period	—			7,230			199			15,436			—			22,865
CASH AND CASH EQUIVALENTS, end of period	$	—		$	517,227		$	6,390		$	27,195		$	—		$	550,812

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2012

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	1,450		$	(50,204	)	$	119,977		$	9,421		$	(369	)	$	80,275
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2,373		)	(14,463		)	(1,637		)	—			(18,473		)
Payments for acquisitions of television stations	—			—			(590,887		)	—			—			(590,887		)
Purchase of alarm monitoring contracts	—			—			—			(5,627		)	—			(5,627		)
Decrease in restricted cash	—			58,500			—			—			—			58,500
Other, net	812			(166		)	38			(593		)	—			91
Net cash flows (used in) from investing activities	812			55,961			(605,312		)	(7,857		)	—			(556,396		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			537,275			—			17,859			—			555,134
Repayments of notes payable, commercial bank financing and capital leases	(202		)	(20,164		)	(270		)	(12,708		)	—			(33,344		)
Dividends paid on Class A and Class B Common Stock	(19,461		)	—			—			—			257			(19,204		)
Payments for deferred financing costs	—			(6,702		)	—			—			—			(6,702		)
Increase (decrease) in intercompany payables	17,610			(512,249		)	486,505			8,022			112			—
Other, net	(209		)	—			(981		)	(462		)	—			(1,652		)
Net cash flows (used in) from financing activities	(2,262		)	(1,840		)	485,254			12,711			369			494,232
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			3,917			(81		)	14,275			—			18,111
CASH AND CASH EQUIVALENTS, beginning of period	—			188			313			12,466			—			12,967
CASH AND CASH EQUIVALENTS, end of period	$	—		$	4,105		$	232		$	26,741		$	—		$	31,078