SEGMENT DATA

9 Months Ended

Sep. 30, 2024

Segment data

SEGMENT DATA

SEGMENT DATA:

We measure segment performance based on operating income (loss). For the quarter ended September 30, 2024, we had two reportable segments, local media and tennis. Our local media segment includes our television stations, original networks and content and provides these through 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 tennis segment provides viewers coverage of many of tennis' top tournaments and original professional sport and tennis lifestyle shows. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of 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 our businesses are located within the United States. As a result of the Reorganization, the local media segment assets are owned and operated by SBG, the assets of the tennis segment are owned and operated by Ventures, and the other Transferred Assets, which are included in other and corporate, are owned and operated by Ventures.

Segment financial information is included in the following tables for the periods presented (in millions):

As of September 30, 2024	Local Media		Tennis		Other & Corporate		Eliminations		Consolidated
Assets	$	4,546	$	271	$	971	$	(3)	$	5,785

For the three months ended September 30, 2024	Local Media		Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	845	$	60	$	19	$	(7)	(a)	$	917
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	58		5		1		(1)			63
Amortization of program costs	18		—		—		—			18
Corporate general and administrative expenses	24		1		16		—			41
Gain on asset dispositions and other, net of impairment	(11)		—		(2)		—			(13)
Operating income (loss)	182		11		(14)		—			179
Interest expense including amortization of debt discount and deferred financing costs	78		—		—		—			78
Income (loss) from equity method investments	1		(1)		—		—			—
For the nine months ended September 30, 2024	Local Media		Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	2,322	$	190	$	54	$	(22)	(a)	$	2,544
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	174		16		2		(3)			189
Amortization of program costs	55		—		—		—			55
Corporate general and administrative expenses	94		2		53		—			149
Gain on asset dispositions and other, net of impairment	(11)		—		—		—			(11)
Operating income (loss)	306		32		(53)		—			285
Interest expense including amortization of debt discount and deferred financing costs	230		—		—		—			230
Income (loss) from equity method investments	1		(2)		93		—			92

For the three months ended September 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	697	$	59	$	17	$	(6)	(a)	$	767
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	59		5		3		(1)			66
Amortization of program costs	18		—		—		—			18
Corporate general and administrative expenses	31		1		13		—			45
Loss on deconsolidation of subsidiary	—		—		10		—			10
(Gain) loss on asset dispositions and other, net of impairment	(2)		—		2		—			—
Operating income (loss)	53		13		(29)		—			37
Interest expense including amortization of debt discount and deferred financing costs	77		—		—		—			77
For the nine months ended September 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	2,101	$	174	$	48	$	(15)	(a)	$	2,308
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	185		15		6		(2)			204
Amortization of program costs	59		—		—		—			59
Corporate general and administrative expenses	109		1		55		—			165
Loss on deconsolidation of subsidiary	—		—		10		—			10
(Gain) loss on asset dispositions and other, net of impairment	(5)		—		16		—			11
Operating income (loss)	116		34		(95)		—			55
Interest expense including amortization of debt discount and deferred financing costs	227		—		—		—			227
Income from equity method investments	—		—		30		—			30

(a)Includes $4 million and $9 million for the three and nine months ended September 30, 2024, respectively, and $2 million and $5 million for the three and nine months ended September 30, 2023, respectively, of revenue for services provided by other to local media, which is eliminated in consolidation.

Sinclair Broadcast Group, LLC

Segment data

SEGMENT DATA

SEGMENT DATA:

SBG measures segment performance based on operating income (loss). For the quarter ended September 30, 2024, SBG had one reportable segment: local media. The local media segment includes SBG's television stations, original networks, and content and provides these through 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. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of tennis, non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include SBG's costs to operate as the parent company of its subsidiaries. All of SBG's businesses are located within the United States. The businesses included in other were transferred to Ventures as part of the Reorganization discussed within Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Segment financial information is included in the following tables for the periods presented (in millions):

As of September 30, 2024	Local Media		Corporate		Consolidated
Assets	$	4,547	$	66	$	4,613

For the three months ended September 30, 2024	Local Media		Corporate		Consolidated
Revenue	$	845	$	—	$	845
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	58		—		58
Amortization of program costs	18		—		18
Corporate general and administrative expenses	24		—		24
Gain on asset dispositions and other, net of impairment	(11)		—		(11)
Operating income	182		—		182
Interest expense including amortization of debt discount and deferred financing costs	78		—		78
For the nine months ended September 30, 2024	Local Media		Corporate		Consolidated
Revenue	$	2,322	$	—	2,322
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	174		—		174
Amortization of program costs	55		—		55
Corporate general and administrative expenses	94		6		100
Gain on asset dispositions and other, net of impairment	(11)		—		(11)
Operating income (loss)	306		(6)		300
Interest expense including amortization of debt discount and deferred financing costs	230		—		230

For the three months ended September 30, 2023	Local Media		Corporate		Consolidated
Revenue	$	697	$	—	$	697
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	59		—		59
Amortization of program costs	18		—		18
Corporate general and administrative expenses	31		—		31
Loss on deconsolidation of subsidiary	—		10		10
Gain on asset dispositions and other, net of impairment	(2)		(1)		(3)
Operating income (loss)	53		(9)		44
Interest expense including amortization of debt discount and deferred financing costs	77		—		77

For the nine months ended September 30, 2023	Local Media		Other & Corporate (a)		Eliminations			Consolidated
Revenue	$	2,101	$	119	$	(7)	(b)	$	2,213
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	185		10		(1)			194
Amortization of program costs	59		—		—			59
Corporate general and administrative expenses	109		38		—			147
Loss on deconsolidation of subsidiary	—		10		—			10
(Gain) loss on asset dispositions and other, net of impairment	(5)		12		—			7
Operating income (loss)	116		(47)		—			69
Interest expense including amortization of debt discount and deferred financing costs	227		—		—			227
Income from equity method investments	—		31		—			31

(a)Represents the activity in tennis, non-broadcast digital and internet solutions, technical services, and non-media investments (collectively, other) prior to the Reorganization on June 1, 2023 and the activity in corporate prior and subsequent to the Reorganization. See Company Reorganization within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(b)Includes $1 million for the nine months ended September 30, 2023 of revenue for services provided by local media to other, which is eliminated in consolidation.