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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2025
FAIR VALUE MEASUREMENTS:  
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):
 As of September 30, 2025As of December 31, 2024
 Face ValueFair ValueFace ValueFair Value
Level 1:
Investments in equity securitiesN/A$— N/A$19 
Money market fundsN/A378 N/A601 
Deferred compensation assetsN/A51 N/A47 
Deferred compensation liabilitiesN/A47 N/A46 
Level 2:
Investments in equity securities (a)N/A130 N/A141 
Interest rate swap (b)N/A— N/A1 
STG (c):
9.750% Second Lien Senior Secured Notes due 2033 (d)
$432 472 $— — 
8.125% First-Out First Lien Secured Notes due 2033 (d)
1,430 1,472 — — 
5.500% Senior Notes due 2030
485 415 485 328 
5.125% Senior Notes due 2027 (d)
89 89 274 249 
4.375% Second-Out First Lien Secured Notes due 2032 (d)
238 171 — — 
4.125% Senior Secured Notes due 2030 (d)
— — 737 546 
4.125% Unsecured Notes due 2030 (d)
4 3 — — 
Term Loan B-2, due September 30, 2026 (d)— — 1,175 1,160 
Term Loan B-3, due April 1, 2028 (d)3 2 714 575 
Term Loan B-4, due April 21, 2029 (d)— — 731 589 
Term Loan B-6, due December 31, 2029 (d)708 630 — — 
Term Loan B-7, due December 31, 2030 (d)728 648 — — 
Debt of variable interest entities (c)6 6 7 7 
Level 3:
Investments in equity securities (e)N/A2 N/A68 
N/A - Not applicable
(a)Consists of 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)The fair value of the interest rate swap was a liability as of September 30, 2025 and an asset as of December 31, 2024. For further information, 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 and deferred financing cost, which are excluded in the above table, of $56 million and $36 million as of September 30, 2025 and December 31, 2024, respectively.
(d)STG completed a series of financing transactions, including a new money financing and debt recapitalization, during the nine months ended September 30, 2025. In October 2025, STG repurchased the remaining $89 million aggregate principal amount of the 5.125% Senior Notes due 2027. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.
(e)Amounts primarily relate to warrants and options to acquire common equity in Bally’s. We recorded a fair value adjustment loss of $8 million for the nine months ended September 30, 2025 and gains of $18 million and $10 million for the three and nine months ended September 30, 2024, respectively. 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. All outstanding awards to acquire common equity in Bally’s were converted to warrants and transferred to Level 2 during the nine months ended September 30, 2025.
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 and nine months ended September 30, 2025 and 2024 (in millions):
Three Months Ended September 30, 2025
Fair value at June 30, 2025$2 
Fair value at September 30, 2025$2 
Nine Months Ended September 30, 2025
Fair value at December 31, 2024$68 
Transfer to Level 2(58)
Measurement adjustments(8)
Fair value at September 30, 2025$2 
Three Months Ended September 30, 2024
Fair value at June 30, 2024$42 
Measurement adjustments16 
Fair value at September 30, 2024$58 
Nine Months Ended September 30, 2024
Fair value at December 31, 2023$46 
Measurement adjustments12 
Fair value at September 30, 2024$58 
Sinclair Broadcast Group, LLC  
FAIR VALUE MEASUREMENTS:  
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 SBG’s financial assets and liabilities for the periods presented (in millions):
 As of September 30, 2025As of December 31, 2024
 Face ValueFair ValueFace ValueFair Value
Level 1:
Money market fundsN/A$103 N/A$253 
Level 2:
Interest rate swap (a)N/A— N/A1 
STG (b):
9.750% Second Lien Senior Secured Notes due 2033 (c)
$432 472 $— — 
8.125% First-Out First Lien Secured Notes due 2033 (c)
1,430 1,472 — — 
5.500% Senior Notes due 2030
485 415 485 328 
5.125% Senior Notes due 2027 (c)
89 89 274 249 
4.375% Second-Out First Lien Secured Notes due 2032 (c)
238 171 — — 
4.125% Senior Secured Notes due 2030 (c)
— — 737 546 
4.125% Unsecured Notes due 2030 (c)
4 3 — — 
Term Loan B-2, due September 30, 2026 (c)— — 1,175 1,160 
Term Loan B-3, due April 1, 2028 (c)3 2 714 575 
Term Loan B-4, due April 21, 2029 (c)— — 731 589 
Term Loan B-6, due December 31, 2029 (c)708 630 — — 
Term Loan B-7, due December 31, 2030 (c)728 648 — — 
Debt of variable interest entities (b)6 6 7 7 
N/A - Not applicable

(a)The fair value of the interest rate swap was a liability as of September 30, 2025 and an asset as of December 31, 2024. For further information, 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.
(b)Amounts are carried in SBG’s consolidated balance sheets net of debt discount and deferred financing cost, which are excluded in the above table, of $56 million and $36 million as of September 30, 2025 and December 31, 2024, respectively.
(c)STG completed a series of financing transactions, including a new money financing and debt recapitalization, during the nine months ended September 30, 2025. In October 2025, STG repurchased the remaining $89 million aggregate principal amount of the 5.125% Senior Notes due 2027. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.