CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:

Sinclair Television Group, Inc. (STG), a wholly-owned subsidiary and the television operating subsidiary of Sinclair Broadcast Group, Inc. (SBG), is the primary obligor under the Bank Credit Agreement, the 5.375% Notes, the 5.625% Notes, 6.125% Notes, and 6.375% Notes. Our Class A Common Stock and Class B Common Stock as of December 31, 2015, were obligations or securities of SBG and not obligations or securities of STG.  SBG is a guarantor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, and 6.375% Notes. As of December 31, 2015, our consolidated total debt of $3,854.4 million included $3,730.0 million of debt related to STG and its subsidiaries of which SBG guaranteed $3,678.2 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.

The following condensed consolidating financial statements present the consolidated balance sheets, consolidated statements of operations and comprehensive income, and consolidated statements of cash flows of SBG, STG, KDSM, LLC and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG and the eliminations necessary to arrive at our information on a consolidated basis.

These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10.

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	115,771	$	235	$	33,966		$	—		$	149,972
Accounts and other receivables	—		1,775		390,142		33,949			(1,258		)	424,608
Other current assets	3,648		5,172		99,118		23,278			(4,033		)	127,183
Total current assets	3,648		122,718		489,495		91,193			(5,291		)	701,763
Property and equipment, net	2,884		20,336		559,042		143,667			(8,792		)	717,137
Investment in consolidated subsidiaries	497,262		3,430,434		4,179		—			(3,931,875		)	—
Other long-term assets	52,128		673,915		110,507		140,910			(779,173		)	198,287
Goodwill	—		—		1,926,814		4,279			—			1,931,093
Broadcast licenses	—		—		114,841		17,624			—			132,465
Definite-lived intangible assets	—		—		1,602,454		206,975			(57,859		)	1,751,570
Total assets	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315
Accounts payable and accrued liabilities	$	104	$	49,428	$	179,156	$	27,462		$	(4,837	)	$	251,313
Current portion of long-term debt	—		57,640		1,611		106,358			(1,425		)	164,184
Current portion of affiliate long-term debt	1,651		—		1,311		456			(252		)	3,166
Other current liabilities	—		—		103,627		12,713			—			116,340
Total current liabilities	1,755		107,068		285,705		146,989			(6,514		)	535,003
Long-term debt	—		3,594,218		32,743		42,199			—			3,669,160
Affiliate long-term debt	1,857		—		14,240		366,042			(364,289		)	17,850
Other liabilities	26,500		28,866		1,060,211		171,102			(576,055		)	710,624
Total liabilities	30,112		3,730,152		1,392,899		726,332			(946,858		)	4,932,637
Total Sinclair Broadcast Group equity	525,810		517,251		3,414,433		(91,703		)	(3,839,981		)	525,810
Noncontrolling interests in consolidated subsidiaries	—		—		—		(29,981		)	3,849			(26,132		)
Total liabilities and equity	$	555,922	$	4,247,403	$	4,807,332	$	604,648		$	(4,782,990	)	$	5,432,315

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	3,394	$	1,749	$	12,539		$	—		$	17,682
Accounts and other receivables	—		164		359,486		25,111			(1,258		)	383,503
Other current assets	5,741		12,996		98,751		19,225			(11,733		)	124,980
Total current assets	5,741		16,554		459,986		56,875			(12,991		)	526,165
Property and equipment, net	3,949		17,554		569,372		168,762			(7,099		)	752,538
Investment in consolidated subsidiaries	395,225		3,585,037		3,978		—			(3,984,240		)	—
Other long-term assets	65,988		555,877		134,454		128,247			(670,832		)	213,734
Goodwill	—		—		1,963,254		1,299			—			1,964,553
Broadcast Licenses	—		—		118,115		16,960			—			135,075
Definite-lived intangible assets	—		—		1,698,919		184,441			(65,097		)	1,818,263
Total assets	$	470,903	$	4,175,022	$	4,948,078	$	556,584		$	(4,740,259	)	$	5,410,328
Accounts payable and accrued liabilities	$	541	$	46,083	$	201,102	$	26,802		$	(13,680	)	$	260,848
Current portion of long-term debt	529		42,953		1,302		68,332			—			113,116
Current portion of affiliate long-term debt	1,464		—		1,182		1,026			(1,047		)	2,625
Other current liabilities	—		—		100,979		9,749						110,728
Total current liabilities	2,534		89,036		304,565		105,909			(14,727		)	487,317
Long-term debt	—		3,638,286		34,338		82,198			—			3,754,822
Affiliate long-term debt	3,508		—		12,802		319,901			(319,902		)	16,309
Other liabilities	36,979		28,856		1,010,101		169,935			(499,334		)	746,537
Total liabilities	43,021		3,756,178		1,361,806		677,943			(833,963		)	5,004,985
Total Sinclair Broadcast Group equity	427,882		418,844		3,586,272		(94,632		)	(3,910,484		)	427,882
Noncontrolling interests in consolidated subsidiaries	—		—		—		(26,727		)	4,188			(22,539		)
Total liabilities and equity	$	470,903	$	4,175,022	$	4,948,078	$	556,584		$	(4,740,259	)	$	5,410,328

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,076,851		$	221,633		$	(79,348	)	$	2,219,136
Media production expenses	—			—			725,037			82,450			(74,288		)	733,199
Selling, general and administrative	4,441			58,543			418,885			14,272			(167		)	495,974
Depreciation, amortization and other operating expenses	1,065			3,779			433,690			131,373			(2,680		)	567,227
Total operating expenses	5,506			62,322			1,577,612			228,095			(77,135		)	1,796,400
Operating (loss) income	(5,506		)	(62,322		)	499,239			(6,462		)	(2,213		)	422,736
Equity in earnings of consolidated subsidiaries	170,104			343,183			195			—			(513,482		)	—
Interest expense	(382		)	(180,166		)	(4,658		)	(30,022		)	23,781			(191,447		)
Other income (expense)	4,765			(151		)	269			(2,379		)	—			2,504
Total other income (expense)	174,487			162,866			(4,194		)	(32,401		)	(489,701		)	(188,943		)
Income tax benefit (provision)	2,543			81,626			(146,331		)	4,468			—			(57,694		)
Net income (loss)	171,524			182,170			348,714			(34,395		)	(491,914		)	176,099
Net income attributable to the noncontrolling interests	—			—			—			(4,914		)	339			(4,575		)
Net income (loss) attributable to Sinclair Broadcast Group	$	171,524		$	182,170		$	348,714		$	(39,309	)	$	(491,575	)	$	171,524
Comprehensive income (loss)	$	181,720		$	187,791		$	351,760		$	(39,309	)	$	(500,242	)	$	181,720

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,870,408		$	192,616		$	(86,466	)	$	1,976,558
Media production expenses	—			76			573,725			86,266			(81,380		)	578,687
Selling, general and administrative	4,320			57,799			359,880			14,795			(2,079		)	434,715
Depreciation, amortization and other operating expenses	1,068			5,425			367,514			96,265			(1,767		)	468,505
Total operating expenses	5,388			63,300			1,301,119			197,326			(85,226		)	1,481,907
Operating (loss) income	(5,388		)	(63,300		)	569,289			(4,710		)	(1,240		)	494,651
Equity in earnings of consolidated subsidiaries	211,782			373,228			(201		)	—			(584,809		)	—
Interest expense	(573		)	(163,347		)	(4,869		)	(27,364		)	21,291			(174,862		)
Other income (expense)	4,377			(14,651		)	998			2,024			10			(7,242		)
Total other income (expense)	215,586			195,230			(4,072		)	(25,340		)	(563,508		)	(182,104		)
Income tax benefit (provision)	2,081			83,897			(185,193		)	1,783			—			(97,432		)
Net income (loss)	212,279			215,827			380,024			(28,267		)	(564,748		)	215,115
Net income attributable to the noncontrolling interests	—			—			—			(2,836		)	—			(2,836		)
Net income (loss) attributable to Sinclair Broadcast Group	$	212,279		$	215,827		$	380,024		$	(31,103	)	$	(564,748	)	$	212,279
Comprehensive income (loss)	$	211,759		$	213,284		$	378,926		$	(27,982	)	$	(564,228	)	$	211,759

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(In thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,296,736		$	123,017		$	(56,622	)	$	1,363,131
Media production expenses	15			357			391,410			52,492			(57,628		)	386,646
Selling, general and administrative	3,733			48,363			241,548			10,694			82			304,420
Depreciation, amortization and other operating expenses	1,307			3,105			275,889			68,215			(471		)	348,045
Total operating expenses	5,055			51,825			908,847			131,401			(58,017		)	1,039,111
Operating (loss) income	(5,055		)	(51,825		)	387,889			(8,384		)	1,395			324,020
Equity in earnings of consolidated subsidiaries	97,138			309,388			1,009			—			(407,535		)	—
Interest expense	(1,083		)	(152,174		)	(4,965		)	(25,624		)	20,909			(162,937		)
Other income (expense)	4,633			(59,033		)	245			5,361			(6,781		)	(55,575		)
Total other income (expense)	100,688			98,181			(3,711		)	(20,263		)	(393,407		)	(218,512		)
Income tax benefit (provision)	(22,165		)	47,645			(73,266		)	2,637			3,900			(41,249		)
Income from discontinued operations, net of tax	—			11,063			495			—			—			11,558
Net income (loss)	73,468			105,064			311,407			(26,010		)	(388,112		)	75,817
Net income attributable to the noncontrolling interests	—			—			—			(2,349		)	—			(2,349		)
Net income (loss) attributable to Sinclair Broadcast Group	$	73,468		$	105,064		$	311,407		$	(28,359	)	$	(388,112	)	$	73,468
Comprehensive income (loss)	$	78,257		$	107,243		$	311,407		$	(28,098	)	$	(390,552	)	$	78,257

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2015

(In thousands)

	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	$	(3,759	)	$	(133,595	)	$	530,768		$	(16,864	)	$	24,145		400,695
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(6,605		)	(84,079		)	(2,586		)	1,849			(91,421		)
Payments for acquisition of television stations	—			—			(17,011		)	—			—			(17,011		)
Purchase of alarm monitoring contracts	—			—			—			(39,185		)	—			(39,185		)
Proceeds from sale of broadcast assets	—			—			23,650			—			—			23,650
Investments in equity and cost method investees	—			(8,998		)	(27		)	(35,690		)	—			(44,715		)
Other, net	4,598			(5,447		)	575			17,645			—			17,371
Net cash flows (used in) from investing activities	4,598			(21,050		)	(76,892		)	(59,816		)	1,849			(151,311		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			349,562			—			33,325			—			382,887
Repayments of notes payable, commercial bank financing and capital leases	(528		)	(382,691		)	(1,286		)	(10,642		)	—			(395,147		)
Dividends paid on Class A and Class B Common Stock	(62,733		)	—			—			—			—			(62,733		)
Repurchase of outstanding Class A Common Stock	(28,823		)	—			—			—			—			(28,823		)
Payments for deferred financing cost	—			(3,604		)	—			(243		)	—			(3,847		)
Noncontrolling interests distributions	—			—			—			(9,918		)	—			(9,918		)
Increase (decrease) in intercompany payables	89,319			303,755			(452,897		)	85,953			(26,130		)	—
Other, net	1,926			—			(1,207		)	(368		)	136			487
Net cash flows (used in) from financing activities	(839		)	267,022			(455,390		)	98,107			(25,994		)	(117,094		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			112,377			(1,514		)	21,427			—			132,290
CASH AND CASH EQUIVALENTS, beginning of period	—			3,394			1,749			12,539			—			17,682
CASH AND CASH EQUIVALENTS, end of period	$	—		$	115,771		$	235		$	33,966		$	—		$	149,972

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2014

(In thousands)

	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	$	(26,528	)	$	(147,940	)	$	628,103		$	(35,694	)	$	12,513		$	430,454
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,864		)	(71,152		)	(2,722		)	1,280			(81,458		)
Payments for acquisition of television stations	—			—			(1,485,039		)	—			—			(1,485,039		)
Purchase of alarm monitoring contracts	—			—			—			(27,701		)	—			(27,701		)
Proceeds from sale of broadcast assets	—			—			176,675			—			—			176,675
Decrease in restricted cash	—			11,525			91			—			—			11,616
Investments in equity and cost method investees	—			—			—			(8,104		)	—			(8,104		)
Proceeds from insurance settlement	—			17,042			—			—			—			17,042
Other, net	1,000			—			392			(1,779		)	—			(387		)
Net cash flows (used in) from investing activities	1,000			19,703			(1,379,033		)	(40,306		)	1,280			(1,397,356		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,466,500			507			33,713			—			1,500,720
Repayments of notes payable, commercial bank financing and capital leases	(556		)	(574,584		)	(1,028		)	(6,596		)	—			(582,764		)
Dividends paid on Class A and Class B Common Stock	(61,103		)	—			—			—			—			(61,103		)
Repurchase of outstanding Class A Common Stock	(133,157		)	—			—			—			—			(133,157		)
Payments for deferred financing costs	—			(16,590		)	—			—			—			(16,590		)
Noncontrolling interest distributions	—			—			—			(8,184		)	—			(8,184		)
Increase (decrease) in intercompany payables	218,081			(981,669		)	725,678			51,703			(13,793		)	—
Other, net	2,263			—			(1,072		)	4,367			—			5,558
Net cash flows (used in) from financing activities	25,528			(106,343		)	724,085			75,003			(13,793		)	704,480
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(234,580		)	(26,845		)	(997		)	—			(262,422		)
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	3,394		$	1,749		$	12,539		$	—		$	17,682

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2013

(In thousands)

	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	$	(37,107	)	$	(264,925	)	$	444,680		$	(40,414	)	$	58,343		$	160,577
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2,700		)	(35,659		)	(5,029		)	—			(43,388		)
Payments for acquisition of television stations	—			—			(998,664		)	(50,480		)	43,000			(1,006,144		)
Purchase of alarm monitoring contracts	—			—			—			(23,721		)	—			(23,721		)
Proceeds from sale of broadcast assets	—			—			71,738			21,000			(43,000		)	49,738
Decrease in restricted cash	—			(11,522		)	—			—			—			(11,522		)
Investments in equity and cost method investees	—			—			—			(10,767		)	—			(10,767		)
Other, net	1,648			—			50			3,773			(10,908		)	(5,437		)
Net cash flows (used in) from investing activities	1,648			(14,222		)	(962,535		)	(65,224		)	(10,908		)	(1,051,241		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			2,189,753			—			88,540			—			2,278,293
Repayments of notes payable, commercial bank financing and capital leases	(482		)	(1,473,898		)	(1,069		)	(34,311		)	—			(1,509,760		)
Proceeds from the sale of Class A Common Stock	472,913			—			—			—			—			472,913
Dividends paid on Class A and Class B Common Stock	(56,767		)	—			—			—			—			(56,767		)
Payments for deferred financing costs	—			(27,724		)	—			—			—			(27,724		)
Noncontrolling interest distributions	—			—			—			(10,256		)	—			(10,256		)
Increase (decrease) in intercompany payables	(371,331		)	(178,240		)	548,139			59,765			(58,333		)	—
Other, net	(8,874		)	—			(820		)	—			10,898			1,204
Net cash flows (used in) from financing activities	35,459			509,891			546,250			103,738			(47,435		)	1,147,903
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			230,744			28,395			(1,900		)	—			257,239
CASH AND CASH EQUIVALENTS, beginning of period	—			7,230			199			15,436			—			22,865
CASH AND CASH EQUIVALENTS, end of period	$	—		$	237,974		$	28,594		$	13,536		$	—		$	280,104