CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: (Tables)

6 Months Ended

Jun. 30, 2014

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF June 30, 2014

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	382,989	$	488	$	12,069		$	—		$	395,546
Accounts and other receivables	44		1,534		271,765		29,479			(2,326		)	300,496
Other current assets	—		17,090		71,307		15,267			(36,701		)	66,963
Total current assets	44		401,613		343,560		56,815			(39,027		)	763,005
Property and equipment, net	4,483		14,160		465,210		160,304			(8,045		)	636,112
Investment in consolidated subsidiaries	333,022		2,382,613		4,179		—			(2,719,814		)	—
Restricted cash — long-term	—		12,430		—		—			—			12,430
Other long-term assets	71,570		561,885		54,034		138,167			(599,705		)	225,951
Total other long-term assets	404,592		2,956,928		58,213		138,167			(3,319,519		)	238,381
Goodwill and other intangible assets	—		—		2,439,387		203,481			(98,404		)	2,544,464
Total assets	$	409,119	$	3,372,701	$	3,306,370	$	558,767		$	(3,464,995	)	$	4,181,962
Accounts payable and accrued liabilities	$	445	$	50,829	$	128,759	$	51,611		$	(34,281	)	$	197,363
Current portion of long-term debt	599		47,125		1,172		7,138			—			56,034
Current portion of affiliate long-term debt	1,377		—		1,192		926			(926		)	2,569
Other current liabilities	565		—		74,725		6,304			(876		)	80,718
Total current liabilities	2,986		97,954		205,848		65,979			(36,083		)	336,684
Long-term debt	217		2,858,754		35,062		144,735			—			3,038,768
Affiliate long-term debt	4,256		—		13,352		311,208			(311,210		)	17,606
Other liabilities	38,882		24,869		667,646		150,315			(462,981		)	418,731
Total liabilities	46,341		2,981,577		921,908		672,237			(810,274		)	3,811,789
Total Sinclair Broadcast Group equity (deficit)	362,778		391,124		2,384,462		(120,865		)	(2,654,721		)	362,778
Noncontrolling interests in consolidated subsidiaries	—		—		—		7,395			—			7,395
Total liabilities and equity (deficit)	$	409,119	$	3,372,701	$	3,306,370	$	558,767		$	(3,464,995	)	$	4,181,962

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2013

(in thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non-Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	237,974	$	28,594	$	13,536		$	—		$	280,104
Accounts and other receivables	59		818		281,822		27,479			(1,022		)	309,156
Other current assets	5,500		25,887		67,279		16,391			(6,446		)	108,611
Total current assets	5,559		264,679		377,695		57,406			(7,468		)	697,871
Property and equipment, net	5,017		13,561		454,917		130,019			(7,443		)	596,071
Investment in consolidated subsidiaries	363,231		2,508,058		4,179		—			(2,875,468		)	—
Restricted cash — long term	—		11,524		223		—			—			11,747
Other long-term assets	78,849		503,674		62,435		132,840			(544,881		)	232,917
Total other long-term assets	442,080		3,023,256		66,837		132,840			(3,420,349		)	244,664
Goodwill and other intangible assets	—		—		2,486,794		214,325			(92,253		)	2,608,866
Total assets	$	452,656	$	3,301,496	$	3,386,243	$	534,590		$	(3,527,513	)	$	4,147,472
Accounts payable and accrued liabilities	$	234	$	51,781	$	126,245	$	17,914		$	—		$	196,174
Current portion of long-term debt	556		37,335		1,007		7,448			—			46,346
Current portion of affiliate long-term debt	1,294		—		1,073		1,003			(1,003		)	2,367
Other current liabilities	3,529		—		87,612		9,645			(2,292		)	98,494
Total current liabilities	5,613		89,116		215,937		36,010			(3,295		)	343,381
Long-term debt	529		2,793,334		35,709		136,830			—			2,966,402
Affiliate long-term debt	4,972		—		13,984		294,919			(294,950		)	18,925
Other liabilities	45,172		23,645		610,491		145,828			(412,076		)	413,060
Total liabilities	56,286		2,906,095		876,121		613,587			(710,321		)	3,741,768
Total Sinclair Broadcast Group equity (deficit)	396,370		395,401		2,510,122		(88,331		)	(2,817,192		)	396,370
Noncontrolling interests in consolidated subsidiaries	—		—		—		9,334			—			9,334
Total liabilities and equity (deficit)	$	452,656	$	3,301,496	$	3,386,243	$	534,590		$	(3,527,513	)	$	4,147,472

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, 2014

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	430,334		$	47,527		$	(22,725	)	$	455,136
Program and production	—			114			133,440			21,492			(20,743		)	134,303
Selling, general and administrative	1,155			14,000			80,324			5,094			(575		)	99,998
Depreciation, amortization and other operating expenses	267			1,138			93,889			23,222			(720		)	117,796
Total operating expenses	1,422			15,252			307,653			49,808			(22,038		)	352,097
Operating (loss) income	(1,422		)	(15,252		)	122,681			(2,281		)	(687		)	103,039
Equity in earnings of consolidated subsidiaries	42,662			75,388			—			—			(118,050		)	—
Interest expense	(149		)	(37,082		)	(1,224		)	(6,974		)	5,308			(40,121		)
Other income (expense)	941			86			465			285			(20		)	1,757
Total other income (expense)	43,454			38,392			(759		)	(6,689		)	(112,762		)	(38,364		)
Income tax benefit (provision)	(697		)	19,209			(43,691		)	2,105			—			(23,074		)
Net income (loss)	41,335			42,349			78,231			(6,865		)	(113,449		)	41,601
Net income attributable to the noncontrolling interests	—			—			—			(299		)	33			(266		)
Net income (loss) attributable to Sinclair Broadcast Group	$	41,335		$	42,349		$	78,231		$	(7,164	)	$	(113,416	)	$	41,335
Comprehensive income (loss)	$	42,247		$	42,515		$	78,231		$	(5,887	)	$	(114,859	)	$	42,247

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	)	$	(87,840	)	$	18,020

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2014

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	820,414		$	88,954		$	(41,584	)	$	867,784
Program and production	—			190			260,173			39,903			(38,924		)	261,342
Selling, general and administrative	2,040			28,545			160,826			7,494			(1,147		)	197,758
Depreciation, amortization and other operating expenses	534			2,245			180,279			42,382			(795		)	224,645
Total operating expenses	2,574			30,980			601,278			89,779			(40,866		)	683,745
Operating (loss) income	(2,574		)	(30,980		)	219,136			(825		)	(718		)	184,039
Equity in earnings of consolidated subsidiaries	69,349			137,652			—			—			(207,001		)	—
Interest expense	(308		)	(73,830		)	(2,466		)	(13,527		)	10,472			(79,659		)
Other income (expense)	1,587			382			558			285			(40		)	2,772
Total other income (expense)	70,628			64,204			(1,908		)	(13,242		)	(196,569		)	(76,887		)
Income tax benefit (provision)	439			36,476			(76,733		)	1,924			—			(37,894		)
Net income (loss)	68,493			69,700			140,495			(12,143		)	(197,287		)	69,258
Net income attributable to the noncontrolling interests	—			—			—			(798		)	33			(765		)
Net income (loss) attributable to Sinclair Broadcast Group	$	68,493		$	69,700		$	140,495		$	(12,941	)	$	(197,254	)	$	68,493
Comprehensive income (loss)	$	69,942		$	69,780		$	140,495		$	(11,539	)	$	(198,736	)	$	69,942

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 benefit (provision)	(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

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED June 30, 2014

(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	$	(2,354	)	$	(73,198	)	$	232,107		$	19,126		$	4,303		$	179,984
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2,935		)	(21,993		)	(1,659		)	—			(26,587		)
Purchase of alarm monitoring contracts	—			—			—			(7,835		)	—			(7,835		)
Decrease in restricted cash	—			(900		)	217						—			(683		)
Investments in equity and cost method investees	—			—			—			(6,167		)	—			(6,167		)
Payments for acquisition of assets in other operating divisions	—			—			—			(8,273		)	—			(8,273		)
Proceeds from termination of life insurance policies	—			17,042			—			—			—			17,042
Other, net	1,000			—			264			(67		)	—			1,197
Net cash flows (used in) from investing activities	1,000			13,207			(21,512		)	(24,001		)	—			(31,306		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			91,796			—			10,928			—			102,724
Repayments of notes payable, commercial bank financing and capital leases	(268		)	(17,056		)	(482		)	(3,308		)	—			(21,114		)
Dividends paid on Class A and Class B Common Stock	(29,284		)	—			—			—			—			(29,284		)
Repurchase of outstanding Class A Common Stock	(82,371		)	—			—			—			—			(82,371		)
Increase (decrease) in intercompany payables	111,767			130,501			(238,219		)	254			(4,303		)	—
Other, net	1,510			(235		)	—			(4,466		)	—			(3,191		)
Net cash flows (used in) from financing activities	1,354			205,006			(238,701		)	3,408			(4,303		)	(33,236		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			145,015			(28,106		)	(1,467		)	—			115,442
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	382,989		$	488		$	12,069		$	—		$	395,546

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