Maryland (State or other jurisdiction of Incorporation or organization) | 52-1494660 (I.R.S. Employer Identification No.) |
Yes x | No o |
Yes x | No o |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Yes o | No x |
Title of each class | Number of shares outstanding as of November 4, 2016 | |
Class A Common Stock | 64,706,034 | |
Class B Common Stock | 25,928,357 |
As of September 30, 2016 | As of December 31, 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 104,545 | $ | 149,972 | |||
Accounts receivable, net of allowance for doubtful accounts of $2,838 and $4,495, respectively | 519,662 | 424,608 | |||||
Current portion of program contract costs | 110,228 | 91,466 | |||||
Income taxes receivable | 9,234 | 823 | |||||
Prepaid expenses and other current assets | 37,909 | 26,903 | |||||
Deferred barter costs | 8,512 | 7,991 | |||||
Total current assets | 790,090 | 701,763 | |||||
PROGRAM CONTRACT COSTS, less current portion | 12,245 | 18,996 | |||||
PROPERTY AND EQUIPMENT, net | 713,088 | 717,137 | |||||
RESTRICTED CASH | — | 3,725 | |||||
GOODWILL | 1,989,578 | 1,931,093 | |||||
INDEFINITE-LIVED INTANGIBLE ASSETS | 153,125 | 132,465 | |||||
DEFINITE-LIVED INTANGIBLE ASSETS, net | 1,983,326 | 1,751,570 | |||||
OTHER ASSETS | 224,736 | 175,566 | |||||
Total assets (a) | $ | 5,866,188 | $ | 5,432,315 | |||
LIABILITIES AND EQUITY (DEFICIT) | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued liabilities | $ | 291,213 | $ | 251,313 | |||
Current portion of notes payable, capital leases and commercial bank financing | 165,238 | 164,184 | |||||
Current portion of notes and capital leases payable to affiliates | 3,599 | 3,166 | |||||
Current portion of program contracts payable | 131,553 | 108,260 | |||||
Deferred barter revenues | 8,142 | 8,080 | |||||
Total current liabilities | 599,745 | 535,003 | |||||
LONG-TERM LIABILITIES: | |||||||
Notes payable, capital leases and commercial bank financing, less current portion | 4,022,437 | 3,669,160 | |||||
Notes payable and capital leases to affiliates, less current portion | 15,036 | 17,850 | |||||
Program contracts payable, less current portion | 57,724 | 56,921 | |||||
Deferred tax liabilities | 612,961 | 585,072 | |||||
Other long-term liabilities | 71,619 | 68,631 | |||||
Total liabilities (a) | 5,379,522 | 4,932,637 | |||||
COMMITMENTS AND CONTINGENCIES (See Note 4) | |||||||
EQUITY: | |||||||
SINCLAIR BROADCAST GROUP SHAREHOLDERS’ EQUITY: | |||||||
Class A Common Stock, $.01 par value, 500,000,000 shares authorized, 65,546,601 and 68,792,483 shares issued and outstanding, respectively | 655 | 688 | |||||
Class B Common Stock, $.01 par value, 140,000,000 shares authorized, 25,928,357 and 25,928,357 shares issued and outstanding, respectively, convertible into Class A Common Stock | 259 | 259 | |||||
Additional paid-in capital | 876,895 | 962,726 | |||||
Accumulated deficit | (360,459 | ) | (437,029 | ) | |||
Accumulated other comprehensive loss | (834 | ) | (834 | ) | |||
Total Sinclair Broadcast Group shareholders’ equity | 516,516 | 525,810 | |||||
Noncontrolling interests | (29,850 | ) | (26,132 | ) | |||
Total equity | 486,666 | 499,678 | |||||
Total liabilities and equity | $ | 5,866,188 | $ | 5,432,315 |
(a) | Our consolidated total assets as of September 30, 2016 and December 31, 2015 include total assets of variable interest entities (VIEs) of $151.1 million and $152.4 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of September 30, 2016 and December 31, 2015 include total liabilities of the VIEs of $41.1 million and $35.6 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
REVENUES: | |||||||||||||||
Media revenues | $ | 635,269 | $ | 498,167 | $ | 1,772,860 | $ | 1,466,088 | |||||||
Revenues realized from station barter arrangements | 32,061 | 28,618 | 92,574 | 79,950 | |||||||||||
Other non-media revenues | 26,505 | 21,619 | 73,824 | 61,308 | |||||||||||
Total revenues | 693,835 | 548,404 | 1,939,258 | 1,607,346 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Media production expenses | 242,880 | 187,173 | 702,377 | 540,554 | |||||||||||
Media selling, general and administrative expenses | 126,672 | 105,622 | 370,169 | 311,088 | |||||||||||
Expenses realized from barter arrangements | 27,181 | 23,105 | 79,365 | 66,898 | |||||||||||
Amortization of program contract costs and net realizable value adjustments | 32,441 | 29,841 | 96,722 | 90,014 | |||||||||||
Other non-media expenses | 20,488 | 16,555 | 57,946 | 46,988 | |||||||||||
Depreciation of property and equipment | 25,886 | 25,476 | 74,330 | 75,938 | |||||||||||
Corporate general and administrative expenses | 19,052 | 16,464 | 54,672 | 46,685 | |||||||||||
Amortization of definite-lived intangible and other assets | 47,807 | 40,014 | 137,197 | 119,439 | |||||||||||
Research and development expenses | 745 | 4,803 | 3,055 | 11,555 | |||||||||||
Gain on asset dispositions | (3,311 | ) | (255 | ) | (5,982 | ) | (306 | ) | |||||||
Total operating expenses | 539,841 | 448,798 | 1,569,851 | 1,308,853 | |||||||||||
Operating income | 153,994 | 99,606 | 369,407 | 298,493 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense and amortization of debt discount and deferred financing costs | (53,488 | ) | (48,566 | ) | (156,819 | ) | (142,878 | ) | |||||||
Loss from extinguishment of debt | (23,699 | ) | — | (23,699 | ) | — | |||||||||
Income from equity investments | 1,423 | 252 | 2,789 | 5,405 | |||||||||||
Other income (expense) | 789 | (48 | ) | 2,355 | 1,220 | ||||||||||
Total other expense, net | (74,975 | ) | (48,362 | ) | (175,374 | ) | (136,253 | ) | |||||||
Income before income taxes | 79,019 | 51,244 | 194,033 | 162,240 | |||||||||||
INCOME TAX PROVISION | (26,986 | ) | (7,210 | ) | (65,771 | ) | (46,971 | ) | |||||||
NET INCOME | 52,033 | 44,034 | 128,262 | 115,269 | |||||||||||
Net income attributable to the noncontrolling interests | (1,188 | ) | (779 | ) | (3,858 | ) | (1,945 | ) | |||||||
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | $ | 50,845 | $ | 43,255 | $ | 124,404 | $ | 113,324 | |||||||
Dividends declared per share | $ | 0.180 | $ | 0.165 | $ | 0.525 | $ | 0.345 | |||||||
BASIC AND DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | |||||||||||||||
Basic earnings per share | $ | 0.54 | $ | 0.46 | $ | 1.32 | $ | 1.19 | |||||||
Diluted earnings per share | $ | 0.54 | $ | 0.45 | $ | 1.30 | $ | 1.18 | |||||||
Weighted average common shares outstanding | 93,948 | 95,002 | 94,595 | 95,146 | |||||||||||
Weighted average common and common equivalent shares outstanding | 94,766 | 95,692 | 95,465 | 95,837 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 52,033 | $ | 44,034 | $ | 128,262 | $ | 115,269 | |||||||
Amortization of net periodic pension benefit costs, net of taxes | — | 10 | — | 178 | |||||||||||
Comprehensive income | 52,033 | 44,044 | 128,262 | 115,447 | |||||||||||
Comprehensive income attributable to the noncontrolling interests | (1,188 | ) | (779 | ) | (3,858 | ) | (1,945 | ) | |||||||
Comprehensive income attributable to Sinclair Broadcast Group | $ | 50,845 | $ | 43,265 | $ | 124,404 | $ | 113,502 |
Sinclair Broadcast Group Shareholders | |||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity (Deficit) | |||||||||||||||||||||||||||
Shares | Values | Shares | Values | ||||||||||||||||||||||||||||||
BALANCE, December 31, 2014 | 69,578,899 | $ | 696 | 25,928,357 | $ | 259 | $ | 979,202 | $ | (545,820 | ) | $ | (6,455 | ) | $ | (22,539 | ) | $ | 405,343 | ||||||||||||||
Dividends declared and paid on Class A and Class B Common Stock | — | — | — | — | — | (47,104 | ) | — | — | (47,104 | ) | ||||||||||||||||||||||
Repurchases of Class A Common Stock | (1,107,887 | ) | (11 | ) | — | — | (28,812 | ) | — | — | — | (28,823 | ) | ||||||||||||||||||||
Class A Common Stock issued pursuant to employee benefit plans | 291,911 | 3 | — | — | 10,616 | — | — | — | 10,619 | ||||||||||||||||||||||||
Tax benefit on share based awards | — | — | — | — | 703 | — | — | — | 703 | ||||||||||||||||||||||||
Distributions to noncontrolling interests, net | — | — | — | — | — | — | — | (6,655 | ) | (6,655 | ) | ||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 178 | — | 178 | ||||||||||||||||||||||||
Issuance of subsidiary stock awards | — | — | — | — | — | — | — | 1,731 | 1,731 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 113,324 | — | 1,945 | 115,269 | ||||||||||||||||||||||||
BALANCE, September 30, 2015 | 68,762,923 | $ | 688 | 25,928,357 | $ | 259 | $ | 961,709 | $ | (479,600 | ) | $ | (6,277 | ) | $ | (25,518 | ) | $ | 451,261 |
Sinclair Broadcast Group Shareholders | |||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total Equity (Deficit) | |||||||||||||||||||||||||||
Shares | Values | Shares | Values | ||||||||||||||||||||||||||||||
BALANCE, December 31, 2015 | 68,792,483 | $ | 688 | 25,928,357 | $ | 259 | $ | 962,726 | $ | (437,029 | ) | $ | (834 | ) | $ | (26,132 | ) | $ | 499,678 | ||||||||||||||
Cumulative effect of adoption of new accounting standard (see Note 1) | — | — | — | — | 431 | 1,833 | — | — | 2,264 | ||||||||||||||||||||||||
Dividends declared and paid on Class A and Class B Common Stock | — | — | — | — | — | (49,667 | ) | — | — | (49,667 | ) | ||||||||||||||||||||||
Repurchases of Class A Common Stock | (3,610,201 | ) | (37 | ) | — | — | (101,127 | ) | — | — | — | (101,164 | ) | ||||||||||||||||||||
Class A Common Stock issued pursuant to employee benefit plans | 364,319 | 4 | — | — | 14,865 | — | — | — | 14,869 | ||||||||||||||||||||||||
Distributions to noncontrolling interests, net | — | — | — | — | — | — | — | (8,363 | ) | (8,363 | ) | ||||||||||||||||||||||
Issuance of subsidiary stock awards | — | — | — | — | — | — | — | 787 | 787 | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 124,404 | — | 3,858 | 128,262 | ||||||||||||||||||||||||
BALANCE, September 30, 2016 | 65,546,601 | $ | 655 | 25,928,357 | $ | 259 | $ | 876,895 | $ | (360,459 | ) | $ | (834 | ) | $ | (29,850 | ) | $ | 486,666 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: | |||||||
Net income | $ | 128,262 | $ | 115,269 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation of property and equipment | 74,330 | 75,938 | |||||
Amortization of definite-lived intangible and other assets | 137,197 | 119,439 | |||||
Amortization of program contract costs and net realizable value adjustments | 96,722 | 90,014 | |||||
Loss on extinguishment of debt, non-cash portion | 3,875 | — | |||||
Stock-based compensation expense | 13,470 | 14,778 | |||||
Deferred tax benefit | 6,631 | (19,623 | ) | ||||
Change in assets and liabilities, net of acquisitions: | |||||||
(Increase) decrease in accounts receivable | (77,118 | ) | 563 | ||||
Increase in prepaid expenses and other current assets | (4,344 | ) | (11,643 | ) | |||
Increase in accounts payable and accrued liabilities | 36,286 | 8,128 | |||||
Net change in net income taxes payable/receivable | (8,411 | ) | 5,623 | ||||
Payments on program contracts payable | (84,625 | ) | (82,594 | ) | |||
Other, net | 7,985 | (2,171 | ) | ||||
Net cash flows from operating activities | 330,260 | 313,721 | |||||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | (68,601 | ) | (72,476 | ) | |||
Acquisition of businesses, net of cash acquired | (425,856 | ) | (15,514 | ) | |||
Purchase of alarm monitoring contracts | (29,143 | ) | (31,340 | ) | |||
Proceeds from sale of assets | 16,396 | 23,650 | |||||
Investments in equity and cost method investees | (34,224 | ) | (43,068 | ) | |||
Loans to affiliates | (19,500 | ) | — | ||||
Other, net | 3,401 | 11,215 | |||||
Net cash flows used in investing activities | (557,527 | ) | (127,533 | ) | |||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | |||||||
Proceeds from notes payable and commercial bank financing | 1,011,312 | 379,481 | |||||
Repayments of notes payable, commercial bank financing and capital leases | (653,987 | ) | (375,104 | ) | |||
Dividends paid on Class A and Class B Common Stock | (49,667 | ) | (47,104 | ) | |||
Repurchase of outstanding Class A Common Stock | (101,164 | ) | (28,823 | ) | |||
Payments for deferred financing cost | (15,598 | ) | (3,847 | ) | |||
Other, net | (9,056 | ) | (9,084 | ) | |||
Net cash flows from (used in) financing activities | 181,840 | (84,481 | ) | ||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (45,427 | ) | 101,707 | ||||
CASH AND CASH EQUIVALENTS, beginning of period | 149,972 | 17,682 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 104,545 | $ | 119,389 |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 490 | $ | 490 | |||
Accounts receivable | 24,945 | 21,719 | |||||
Current portion of program contract costs | 14,895 | 13,287 | |||||
Prepaid expenses and other current assets | 318 | 331 | |||||
Total current assets | 40,648 | 35,827 | |||||
PROGRAM CONTRACT COSTS, less current portion | 3,078 | 4,541 | |||||
PROPERTY AND EQUIPMENT, net | 3,301 | 7,609 | |||||
GOODWILL | 791 | 787 | |||||
INDEFINITE-LIVED INTANGIBLE ASSETS | 15,684 | 17,599 | |||||
DEFINITE-LIVED INTANGIBLE ASSETS, net | 80,693 | 79,086 | |||||
OTHER ASSETS | 6,924 | 6,924 | |||||
Total assets | $ | 151,119 | $ | 152,373 | |||
LIABILITIES | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued liabilities | $ | 1,112 | $ | 1,240 | |||
Current portion of notes payable, capital leases and commercial bank financing | 3,710 | 3,687 | |||||
Current portion of program contracts payable | 16,573 | 12,627 | |||||
Total current liabilities | 21,395 | 17,554 | |||||
LONG-TERM LIABILITIES: | |||||||
Notes payable, capital leases and commercial bank financing, less current portion | 21,944 | 24,594 | |||||
Program contracts payable, less current portion | 14,036 | 13,679 | |||||
Other long-term liabilities | 9,364 | 8,067 | |||||
Total liabilities | $ | 66,739 | $ | 63,894 |
Cash | $ | 5,111 | |
Accounts receivable | 17,629 | ||
Prepaid expenses and other current assets | 6,518 | ||
Property and equipment | 5,964 | ||
Definite-lived intangible assets | 272,686 | ||
Indefinite-lived intangible assets | 23,400 | ||
Other assets | 619 | ||
Accounts payable and accrued liabilities | (7,414 | ) | |
Capital leases | (115 | ) | |
Deferred tax liability | (20,056 | ) | |
Other long term liabilities | (1,669 | ) | |
Fair value of identifiable net assets acquired | 302,673 | ||
Goodwill | 56,492 | ||
Total | $ | 359,165 |
Customer relationships | $ | 269,300 | |
Other intangible assets | 3,386 | ||
Fair value of identifiable definite-lived intangible assets acquired | $ | 272,686 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Total revenues | $ | 693,835 | $ | 571,437 | $ | 1,953,750 | $ | 1,678,800 | ||||||||
Net Income | $ | 79,019 | $ | 40,911 | $ | 127,222 | $ | 107,312 | ||||||||
Net Income attributable to Sinclair Broadcast Group | $ | 50,845 | $ | 40,132 | $ | 123,364 | $ | 105,367 | ||||||||
Basic earnings per share attributable to Sinclair Broadcast Group | $ | 0.54 | $ | 0.42 | $ | 1.30 | $ | 1.11 | ||||||||
Diluted earnings per share attributable to Sinclair Broadcast Group | $ | 0.54 | $ | 0.42 | $ | 1.29 | $ | 1.10 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Income (Numerator) | ||||||||||||||||
Net Income | $ | 52,033 | $ | 44,034 | $ | 128,262 | $ | 115,269 | ||||||||
Net income attributable to noncontrolling interests | (1,188 | ) | (779 | ) | (3,858 | ) | (1,945 | ) | ||||||||
Numerator for diluted earnings per common share available to common shareholders | $ | 50,845 | $ | 43,255 | $ | 124,404 | $ | 113,324 | ||||||||
Shares (Denominator) | ||||||||||||||||
Weighted-average common shares outstanding | 93,948 | 95,002 | 94,595 | 95,146 | ||||||||||||
Dilutive effect of stock-settled appreciation rights, restricted stock awards and outstanding stock options | 818 | 690 | 870 | 691 | ||||||||||||
Weighted-average common and common equivalent shares outstanding | 94,766 | 95,692 | 95,465 | 95,837 |
For the three months ended September 30, 2016 | Broadcast | Other | Corporate | Consolidated | ||||||||||||
Revenue | $ | 635,559 | $ | 58,276 | $ | — | $ | 693,835 | ||||||||
Depreciation of property and equipment | 24,195 | 1,425 | 266 | 25,886 | ||||||||||||
Amortization of definite-lived intangible assets and other assets | 38,717 | 9,090 | — | 47,807 | ||||||||||||
Amortization of program contract costs and net realizable value adjustments | 32,441 | — | — | 32,441 | ||||||||||||
General and administrative overhead expenses | 17,530 | 247 | 1,275 | 19,052 | ||||||||||||
Research and development | — | 745 | — | 745 | ||||||||||||
Operating income (loss) | 158,666 | (3,077 | ) | (1,595 | ) | 153,994 | ||||||||||
Interest expense | 1,404 | 1,664 | 50,420 | 53,488 | ||||||||||||
Income from equity and cost method investments | — | 611 | 812 | 1,423 | ||||||||||||
Assets | 4,901,549 | 825,996 | 138,643 | 5,866,188 |
For the three months ended September 30, 2015 | Broadcast | Other | Corporate | Consolidated | ||||||||||||
Revenue | $ | 525,529 | $ | 22,875 | $ | — | $ | 548,404 | ||||||||
Depreciation of property and equipment | 24,489 | 708 | 279 | 25,476 | ||||||||||||
Amortization of definite-lived intangible assets and other assets | 37,601 | 2,413 | — | 40,014 | ||||||||||||
Amortization of program contract costs and net realizable value adjustments | 29,841 | — | — | 29,841 | ||||||||||||
General and administrative overhead expenses | 14,378 | 1,087 | 999 | 16,464 | ||||||||||||
Research and development | — | 4,803 | — | 4,803 | ||||||||||||
Operating income (loss) | 109,231 | (7,653 | ) | (1,972 | ) | 99,606 | ||||||||||
Interest expense | — | 1,305 | 47,261 | 48,566 | ||||||||||||
Income from equity and cost method investments | — | 252 | — | 252 |
For the nine months ended September 30, 2016 | Broadcast | Other | Corporate | Consolidated | ||||||||
Revenue | 1,790,561 | 148,697 | — | 1,939,258 | ||||||||
Depreciation of property and equipment | 69,469 | 4,063 | 798 | 74,330 | ||||||||
Amortization of definite-lived intangible assets and other assets | 117,038 | 20,159 | — | 137,197 | ||||||||
Amortization of program contract costs and net realizable value adjustments | 96,722 | — | — | 96,722 | ||||||||
General and administrative overhead expenses | 50,320 | 1,075 | 3,277 | 54,672 | ||||||||
Research and development | — | 3,055 | — | 3,055 | ||||||||
Operating income (loss) | 402,236 | (28,699 | ) | (4,130 | ) | 369,407 | ||||||
Interest expense | 4,297 | 4,695 | 147,827 | 156,819 | ||||||||
Income from equity and cost method investments | — | 414 | 2,375 | 2,789 |
For the nine months ended September 30, 2015 | Broadcast | Other | Corporate | Consolidated | ||||||||||||
Revenue | $ | 1,542,943 | $ | 64,403 | $ | — | $ | 1,607,346 | ||||||||
Depreciation of property and equipment | 73,028 | 2,073 | 837 | 75,938 | ||||||||||||
Amortization of definite-lived intangible assets and other assets | 112,724 | 6,715 | — | 119,439 | ||||||||||||
Amortization of program contract costs and net realizable value adjustments | 90,014 | — | — | 90,014 | ||||||||||||
General and administrative overhead expenses | 40,637 | 2,611 | 3,437 | 46,685 | ||||||||||||
Research and development | — | 11,555 | — | 11,555 | ||||||||||||
Operating income (loss) | 323,336 | (20,498 | ) | (4,345 | ) | 298,493 | ||||||||||
Interest expense | — | 3,541 | 139,337 | 142,878 | ||||||||||||
Income from equity and cost method investments | — | 5,405 | — | 5,405 |
• | 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. |
As of September 30, 2016 | As of December 31, 2015 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Level 2: | |||||||||||||||
6.375% Senior Unsecured Notes due 2021 (a) | $ | — | $ | — | $ | 350,000 | $ | 367,325 | |||||||
6.125% Senior Unsecured Notes due 2022 | 500,000 | 526,910 | 500,000 | 512,500 | |||||||||||
5.875% Senior Unsecured Notes due 2026 (b) | 350,000 | 364,000 | — | — | |||||||||||
5.625% Senior Unsecured Notes due 2024 | 550,000 | 563,750 | 550,000 | 539,000 | |||||||||||
5.375% Senior Unsecured Notes due 2021 | 600,000 | 623,250 | 600,000 | 605,658 | |||||||||||
5.125% Senior Unsecured Notes due 2027 (c) | 400,000 | 392,356 | — | — | |||||||||||
Term Loan A | 282,573 | 283,280 | 313,620 | 308,916 | |||||||||||
Term Loan B | 1,366,117 | 1,378,636 | 1,376,007 | 1,365,461 | |||||||||||
Debt of variable interest entities | 24,069 | 24,069 | 26,682 | 26,682 | |||||||||||
Debt of other operating divisions | 123,599 | 123,599 | 120,969 | 120,969 |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||
Cash | $ | — | $ | 81,671 | $ | 4,550 | $ | 18,324 | $ | — | $ | 104,545 | |||||||||||
Accounts receivable | — | — | 483,686 | 37,237 | (1,261 | ) | 519,662 | ||||||||||||||||
Other current assets | 3,371 | 6,457 | 132,250 | 27,434 | (3,629 | ) | 165,883 | ||||||||||||||||
Total current assets | 3,371 | 88,128 | 620,486 | 82,995 | (4,890 | ) | 790,090 | ||||||||||||||||
Property and equipment, net | 2,086 | 17,710 | 566,633 | 130,309 | (3,650 | ) | 713,088 | ||||||||||||||||
Investment in consolidated subsidiaries | 483,523 | 3,696,504 | 4,180 | — | (4,184,207 | ) | — | ||||||||||||||||
Goodwill | — | — | 1,985,299 | 4,279 | — | 1,989,578 | |||||||||||||||||
Indefinite-lived intangible assets | — | — | 137,416 | 15,709 | — | 153,125 | |||||||||||||||||
Definite-lived intangible assets | — | — | 1,816,553 | 227,351 | (60,578 | ) | 1,983,326 | ||||||||||||||||
Other long-term assets | 52,116 | 782,850 | 105,247 | 160,180 | (863,412 | ) | 236,981 | ||||||||||||||||
Total assets | $ | 541,096 | $ | 4,585,192 | $ | 5,235,814 | $ | 620,823 | $ | (5,116,737 | ) | $ | 5,866,188 | ||||||||||
Accounts payable and accrued liabilities | $ | 102 | $ | 55,484 | $ | 211,362 | $ | 28,427 | $ | (4,162 | ) | $ | 291,213 | ||||||||||
Current portion of long-term debt | — | 55,500 | 1,803 | 107,935 | — | 165,238 | |||||||||||||||||
Current portion of affiliate long-term debt | 1,804 | — | 1,569 | 2,258 | (2,032 | ) | 3,599 | ||||||||||||||||
Other current liabilities | — | — | 123,020 | 16,675 | — | 139,695 | |||||||||||||||||
Total current liabilities | 1,906 | 110,984 | 337,754 | 155,295 | (6,194 | ) | 599,745 | ||||||||||||||||
Long-term debt | — | 3,951,479 | 31,521 | 39,437 | — | 4,022,437 | |||||||||||||||||
Affiliate long-term debt | 479 | — | 12,977 | 384,174 | (382,594 | ) | 15,036 | ||||||||||||||||
Other liabilities | 22,196 | 31,612 | 1,173,805 | 177,155 | (662,464 | ) | 742,304 | ||||||||||||||||
Total liabilities | 24,581 | 4,094,075 | 1,556,057 | 756,061 | (1,051,252 | ) | 5,379,522 | ||||||||||||||||
Total Sinclair Broadcast Group equity (deficit) | 516,515 | 491,117 | 3,679,757 | (101,024 | ) | (4,069,849 | ) | 516,516 | |||||||||||||||
Noncontrolling interests in consolidated subsidiaries | — | — | — | (34,214 | ) | 4,364 | (29,850 | ) | |||||||||||||||
Total liabilities and equity (deficit) | $ | 541,096 | $ | 4,585,192 | $ | 5,235,814 | $ | 620,823 | $ | (5,116,737 | ) | $ | 5,866,188 |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||
Cash | $ | — | $ | 115,771 | $ | 235 | $ | 33,966 | $ | — | $ | 149,972 | |||||||||||
Accounts receivable | — | 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 | ) | — | ||||||||||||||||
Goodwill | — | — | 1,926,814 | 4,279 | — | 1,931,093 | |||||||||||||||||
Indefinite-lived intangible assets | — | — | 114,841 | 17,624 | — | 132,465 | |||||||||||||||||
Definite-lived intangible assets | — | — | 1,602,454 | 206,975 | (57,859 | ) | 1,751,570 | ||||||||||||||||
Other long-term assets | 52,128 | 673,915 | 110,507 | 140,910 | (779,173 | ) | 198,287 | ||||||||||||||||
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 (deficit) | 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 (deficit) | $ | 555,922 | $ | 4,247,403 | $ | 4,807,332 | $ | 604,648 | $ | (4,782,990 | ) | $ | 5,432,315 |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 655,778 | $ | 63,877 | $ | (25,820 | ) | $ | 693,835 | ||||||||||
Media program and production expenses | — | — | 234,474 | 33,556 | (25,150 | ) | 242,880 | ||||||||||||||||
Selling, general and administrative | 1,275 | 16,969 | 124,352 | 3,153 | (25 | ) | 145,724 | ||||||||||||||||
Depreciation, amortization and other operating expenses | 266 | 3,257 | 115,527 | 32,571 | (384 | ) | 151,237 | ||||||||||||||||
Total operating expenses | 1,541 | 20,226 | 474,353 | 69,280 | (25,559 | ) | 539,841 | ||||||||||||||||
Operating (loss) income | (1,541 | ) | (20,226 | ) | 181,425 | (5,403 | ) | (261 | ) | 153,994 | |||||||||||||
Equity in earnings of consolidated subsidiaries | 51,113 | 114,060 | 51 | — | (165,224 | ) | — | ||||||||||||||||
Interest expense | (56 | ) | (50,364 | ) | (1,117 | ) | (8,256 | ) | 6,305 | (53,488 | ) | ||||||||||||
Loss from extinguishment of debt | — | (23,699 | ) | — | — | — | (23,699 | ) | |||||||||||||||
Other income (expense) | 1,157 | 469 | (27 | ) | 613 | — | 2,212 | ||||||||||||||||
Total other income (expense) | 52,214 | 40,466 | (1,093 | ) | (7,643 | ) | (158,919 | ) | (74,975 | ) | |||||||||||||
Income tax benefit (provision) | 172 | 34,334 | (64,535 | ) | 3,043 | — | (26,986 | ) | |||||||||||||||
Net income (loss) | 50,845 | 54,574 | 115,797 | (10,003 | ) | (159,180 | ) | 52,033 | |||||||||||||||
Net income attributable to the noncontrolling interests | — | — | — | (1,180 | ) | (8 | ) | (1,188 | ) | ||||||||||||||
Net income (loss) attributable to Sinclair Broadcast Group | $ | 50,845 | $ | 54,574 | $ | 115,797 | $ | (11,183 | ) | $ | (159,188 | ) | $ | 50,845 | |||||||||
Comprehensive income (loss) | $ | 50,845 | $ | 54,574 | $ | 115,797 | $ | (10,003 | ) | $ | (159,180 | ) | $ | 52,033 |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 515,097 | $ | 53,845 | $ | (20,538 | ) | $ | 548,404 | ||||||||||
Media program and production expenses | — | — | 185,371 | 20,272 | (18,470 | ) | 187,173 | ||||||||||||||||
Selling, general and administrative | 930 | 14,386 | 102,984 | 3,819 | (33 | ) | 122,086 | ||||||||||||||||
Depreciation, amortization and other operating expenses | 266 | 1,040 | 105,427 | 34,336 | (1,530 | ) | 139,539 | ||||||||||||||||
Total operating expenses | 1,196 | 15,426 | 393,782 | 58,427 | (20,033 | ) | 448,798 | ||||||||||||||||
Operating (loss) income | (1,196 | ) | (15,426 | ) | 121,315 | (4,582 | ) | (505 | ) | 99,606 | |||||||||||||
Equity in earnings of consolidated subsidiaries | 43,480 | 88,687 | 100 | — | (132,267 | ) | — | ||||||||||||||||
Interest expense | (93 | ) | (45,784 | ) | (1,140 | ) | (7,721 | ) | 6,172 | (48,566 | ) | ||||||||||||
Other income (expense) | 957 | (407 | ) | 3 | (349 | ) | — | 204 | |||||||||||||||
Total other income (expense) | 44,344 | 42,496 | (1,037 | ) | (8,070 | ) | (126,095 | ) | (48,362 | ) | |||||||||||||
Income tax benefit (provision) | 107 | 20,235 | (30,126 | ) | 2,574 | — | (7,210 | ) | |||||||||||||||
Net income (loss) | 43,255 | 47,305 | 90,152 | (10,078 | ) | (126,600 | ) | 44,034 | |||||||||||||||
Net income attributable to the noncontrolling interests | — | — | — | (799 | ) | 20 | (779 | ) | |||||||||||||||
Net income (loss) attributable to Sinclair Broadcast Group | $ | 43,255 | $ | 47,305 | $ | 90,152 | $ | (10,877 | ) | $ | (126,580 | ) | $ | 43,255 | |||||||||
Comprehensive income (loss) | $ | 44,044 | $ | 47,315 | $ | 90,152 | $ | (10,078 | ) | $ | (127,389 | ) | $ | 44,044 |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 1,828,407 | $ | 178,164 | $ | (67,313 | ) | $ | 1,939,258 | ||||||||||
Media program and production expenses | — | — | 679,337 | 88,378 | (65,338 | ) | 702,377 | ||||||||||||||||
Selling, general and administrative | 3,277 | 53,189 | 360,793 | 7,641 | (59 | ) | 424,841 | ||||||||||||||||
Depreciation, amortization and other operating expenses | 798 | 5,666 | 340,974 | 96,560 | (1,365 | ) | 442,633 | ||||||||||||||||
Total operating expenses | 4,075 | 58,855 | 1,381,104 | 192,579 | (66,762 | ) | 1,569,851 | ||||||||||||||||
Operating (loss) income | (4,075 | ) | (58,855 | ) | 447,303 | (14,415 | ) | (551 | ) | 369,407 | |||||||||||||
Equity in earnings of consolidated subsidiaries | 124,536 | 289,593 | 170 | — | (414,299 | ) | — | ||||||||||||||||
Interest expense | (192 | ) | (147,635 | ) | (3,417 | ) | (24,258 | ) | 18,683 | (156,819 | ) | ||||||||||||
Loss from the extinguishment of debt | — | (23,699 | ) | — | — | — | (23,699 | ) | |||||||||||||||
Other income | 3,386 | 736 | 583 | 439 | — | 5,144 | |||||||||||||||||
Total other income (expense) | 127,730 | 118,995 | (2,664 | ) | (23,819 | ) | (395,616 | ) | (175,374 | ) | |||||||||||||
Income tax benefit (provision) | 749 | 75,470 | (150,436 | ) | 8,446 | — | (65,771 | ) | |||||||||||||||
Net income (loss) | 124,404 | 135,610 | 294,203 | (29,788 | ) | (396,167 | ) | 128,262 | |||||||||||||||
Net income attributable to the noncontrolling interests | — | — | — | (3,341 | ) | (517 | ) | (3,858 | ) | ||||||||||||||
Net income (loss) attributable to Sinclair Broadcast Group | $ | 124,404 | $ | 135,610 | $ | 294,203 | $ | (33,129 | ) | $ | (396,684 | ) | $ | 124,404 | |||||||||
Comprehensive income (loss) | $ | 124,404 | $ | 135,610 | $ | 294,203 | $ | (29,788 | ) | $ | (396,167 | ) | $ | 128,262 |
Sinclair Broadcast Group, Inc. | Sinclair Television Group, Inc. | Guarantor Subsidiaries and KDSM, LLC | Non- Guarantor Subsidiaries | Eliminations | Sinclair Consolidated | ||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 1,514,173 | $ | 153,757 | $ | (60,584 | ) | $ | 1,607,346 | ||||||||||
Media program and production expenses | — | — | 535,098 | 61,949 | (56,493 | ) | 540,554 | ||||||||||||||||
Selling, general and administrative | 3,432 | 40,598 | 302,962 | 10,919 | (138 | ) | 357,773 | ||||||||||||||||
Depreciation, amortization and other operating expenses | 799 | 2,624 | 316,934 | 92,667 | (2,498 | ) | 410,526 | ||||||||||||||||
Total operating expenses | 4,231 | 43,222 | 1,154,994 | 165,535 | (59,129 | ) | 1,308,853 | ||||||||||||||||
Operating (loss) income | (4,231 | ) | (43,222 | ) | 359,179 | (11,778 | ) | (1,455 | ) | 298,493 | |||||||||||||
Equity in earnings of consolidated subsidiaries | 114,176 | 238,635 | — | — | (352,811 | ) | — | ||||||||||||||||
Interest expense | (301 | ) | (134,626 | ) | (3,481 | ) | (21,898 | ) | 17,428 | (142,878 | ) | ||||||||||||
Other income (expense) | 3,250 | (116 | ) | 269 | 3,222 | — | 6,625 | ||||||||||||||||
Total other income (expense) | 117,125 | 103,893 | (3,212 | ) | (18,676 | ) | (335,383 | ) | (136,253 | ) | |||||||||||||
Income tax benefit (provision) | 430 | 60,435 | (113,403 | ) | 5,567 | — | (46,971 | ) | |||||||||||||||
Net income (loss) | 113,324 | 121,106 | 242,564 | (24,887 | ) | (336,838 | ) | 115,269 | |||||||||||||||
Net income attributable to the noncontrolling interests | — | — | — | (1,999 | ) | 54 | (1,945 | ) | |||||||||||||||
Net income (loss) attributable to Sinclair Broadcast Group | $ | 113,324 | $ | 121,106 | $ | 242,564 | $ | (26,886 | ) | $ | (336,784 | ) | $ | 113,324 | |||||||||
Comprehensive income (loss) | $ | 115,447 | $ | 121,132 | $ | 242,713 | $ | (24,885 | ) | $ | (338,960 | ) | $ | 115,447 |
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 | $ | (4,060 | ) | $ | (152,724 | ) | $ | 451,804 | $ | 17,138 | $ | 18,102 | $ | 330,260 | |||||||||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Acquisition of property and equipment | (7 | ) | (3,626 | ) | (61,758 | ) | (3,842 | ) | 632 | (68,601 | ) | ||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (415,481 | ) | (10,375 | ) | — | (425,856 | ) | ||||||||||||||
Purchase of alarm monitoring contracts | — | — | — | (29,143 | ) | — | (29,143 | ) | |||||||||||||||
Proceeds from sale of assets | — | — | 7,263 | 9,133 | — | 16,396 | |||||||||||||||||
Investments in equity and cost method investees | (2,945 | ) | (10,840 | ) | (34 | ) | (20,405 | ) | — | (34,224 | ) | ||||||||||||
Loans to affiliates | — | (19,500 | ) | — | — | — | (19,500 | ) | |||||||||||||||
Other, net | 1,714 | (1,828 | ) | (86 | ) | 3,601 | — | 3,401 | |||||||||||||||
Net cash flows (used in) from investing activities | (1,238 | ) | (35,794 | ) | (470,096 | ) | (51,031 | ) | 632 | (557,527 | ) | ||||||||||||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | |||||||||||||||||||||||
Proceeds from notes payable, commercial bank financing | — | 995,000 | — | 16,312 | — | 1,011,312 | |||||||||||||||||
Repayments of notes payable, commercial bank financing and capital leases | — | (636,547 | ) | (1,171 | ) | (16,269 | ) | — | (653,987 | ) | |||||||||||||
Dividends paid on Class A and Class B Common Stock | (49,667 | ) | — | — | — | — | (49,667 | ) | |||||||||||||||
Repurchase of outstanding Class A Common Stock | (101,164 | ) | — | — | — | — | (101,164 | ) | |||||||||||||||
Increase (decrease) in intercompany payables | 158,574 | (189,022 | ) | 22,603 | 26,764 | (18,919 | ) | — | |||||||||||||||
Other, net | (2,445 | ) | (15,013 | ) | 1,175 | (8,556 | ) | 185 | (24,654 | ) | |||||||||||||
Net cash flows from (used in) financing activities | 5,298 | 154,418 | 22,607 | 18,251 | (18,734 | ) | 181,840 | ||||||||||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | — | (34,100 | ) | 4,315 | (15,642 | ) | — | (45,427 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | — | 115,771 | 235 | 33,966 | — | 149,972 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | — | $ | 81,671 | $ | 4,550 | $ | 18,324 | $ | — | $ | 104,545 |
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 | $ | (6,476 | ) | $ | (66,929 | ) | $ | 390,101 | $ | (21,156 | ) | $ | 18,181 | $ | 313,721 | ||||||||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Acquisition of property and equipment | — | (7,687 | ) | (64,693 | ) | (1,603 | ) | 1,507 | (72,476 | ) | |||||||||||||
Payments for acquisition of television stations | — | — | (15,514 | ) | — | — | (15,514 | ) | |||||||||||||||
Purchase of alarm monitoring contracts | — | — | — | (31,340 | ) | — | (31,340 | ) | |||||||||||||||
Proceeds from sale of assets | — | — | 23,650 | — | — | 23,650 | |||||||||||||||||
Investments in equity and cost method investees | — | (7,486 | ) | (27 | ) | (35,555 | ) | — | (43,068 | ) | |||||||||||||
Other, net | 3,776 | 539 | 530 | 6,370 | — | 11,215 | |||||||||||||||||
Net cash flows (used in) from investing activities | 3,776 | (14,634 | ) | (56,054 | ) | (62,128 | ) | 1,507 | (127,533 | ) | |||||||||||||
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | |||||||||||||||||||||||
Proceeds from notes payable, commercial bank financing and capital leases | — | 349,559 | — | 29,922 | — | 379,481 | |||||||||||||||||
Repayments of notes payable, commercial bank financing and capital leases | (473 | ) | (370,011 | ) | (937 | ) | (3,683 | ) | — | (375,104 | ) | ||||||||||||
Dividends paid on Class A and Class B Common Stock | (47,104 | ) | — | — | — | — | (47,104 | ) | |||||||||||||||
Repurchase of outstanding Class A Common Stock | (28,823 | ) | — | — | — | — | (28,823 | ) | |||||||||||||||
Increase (decrease) in intercompany payables | 82,410 | 200,108 | (335,447 | ) | 72,757 | (19,828 | ) | — | |||||||||||||||
Other, net | (3,310 | ) | (3,491 | ) | 847 | (7,117 | ) | 140 | (12,931 | ) | |||||||||||||
Net cash flows (used in) from financing activities | 2,700 | 176,165 | (335,537 | ) | 91,879 | (19,688 | ) | (84,481 | ) | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | — | 94,602 | (1,490 | ) | 8,595 | — | 101,707 | ||||||||||||||||
CASH AND CASH EQUIVALENTS, beginning of period | — | 3,394 | 1,749 | 12,539 | — | 17,682 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | — | $ | 97,996 | $ | 259 | $ | 21,134 | $ | — | $ | 119,389 |
• | the conditions of our advertisers particularly in the automotive, service, and political categories; |
• | competition with other broadcast television stations, radio stations, multi-channel video programming distributors (MVPDs), internet and broadband content providers and other print and media outlets serving in the same markets; |
• | the performance of networks and syndicators that provide us with programming content, as well as the performance of internally originated programming; |
• | the availability and cost of programming from networks and syndicators, as well as the cost of internally originated programming; |
• | our relationships with networks and their strategies to distribute their programming via means other than their local television affiliates, such as over-the-top content; |
• | the effects of the Federal Communications Commission’s (FCC’s) National Broadband Plan and incentive auction and the potential repacking of our broadcasting spectrum within a limited timeframe; |
• | the potential for additional governmental regulation of broadcasting or changes in those regulations and court actions interpreting those regulations, including ownership regulations limiting over-the-air television’s ability to compete effectively (including regulations relating to Joint Sales Agreements (JSA) and Shared Services Agreements (SSA), and the national ownership cap), arbitrary enforcement of indecency regulations, retransmission consent regulations and political or other advertising restrictions; |
• | labor disputes and legislation and other union activity associated with film, acting, writing and other guilds and professional sports leagues; |
• | the broadcasting community’s ability to develop and adopt a viable mobile digital broadcast television (mobile DTV) strategy and platform, such as the adoption of ATSC 3.0 broadcast standard, and the consumer’s appetite for mobile television; |
• | the impact of programming payments charged by networks pursuant to their affiliation agreements with broadcasters requiring compensation for network programming; |
• | the effects of declining live/appointment viewership as reported through rating systems and local television efforts to adopt and receive credit for same day viewing plus viewing on-demand thereafter; |
• | changes in television rating measurement methodologies that could negatively impact audience results; |
• | the ability of local MVPDs to coordinate and determine local advertising rates as a consortium; |
• | the impact of new FCC rules requiring broadcast stations to publish, among other information, political advertising rates online; |
• | changes in the makeup of the population in the areas where stations are located; |
• | the operation of low power devices in the broadcast spectrum, which could interfere with our broadcast signals; |
• | the impact of FCC and Congressional efforts to limit the ability of a television station to negotiate retransmission consent agreements for the same-market stations it does not own and other FCC efforts which may restrict a television station's retransmission consent negotiations; |
• | the effects of decreases in subscribers of MVPDs whom which we receive retransmission revenue; |
• | Over-the-top (OTT) technologies and their potential impact on cord-cutting; and |
• | the impact of MVPDs offering “skinny” programming bundles that may not include television broadcast stations. |
• | the effectiveness of our management; |
• | our ability to attract and maintain local, national and network advertising and successfully participate in new sales channels such as programmatic advertising through business partnership ventures and the development of technology; |
• | our ability to service our debt obligations and operate our business under restrictions contained in our financing agreements; |
• | our ability to successfully implement and monetize our own content management system (CMS) designed to provide our viewers significantly improved content via the internet and other digital platforms; |
• | our ability to successfully renegotiate retransmission consent agreements; |
• | our ability to renew our FCC licenses; |
• | our limited ability to obtain FCC approval for any future acquisitions, as well as, in certain cases, customary antitrust clearance for any future acquisitions; |
• | our ability to identify media business investment opportunities and to successfully integrate any acquired businesses, as well as the success of our digital initiatives in a competitive environment, such as the investment in the re-launch of Circa; |
• | our ability to maintain our affiliation and programming service agreements with our networks and program service providers and at renewal, to successfully negotiate these agreements with favorable terms; |
• | our ability to effectively respond to technology affecting our industry and to increasing competition from other media providers; |
• | the strength of ratings for our local news broadcasts including our news sharing arrangements; |
• | the successful execution of our program development and multi-channel broadcasting initiatives including, but not limited to, American Sports Network (ASN), COMET, and other original programming, and mobile DTV; and |
• | the results of prior year tax audits by taxing authorities. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Statement of Operations Data: | ||||||||||||||||
Media revenues (a) | $ | 635,269 | $ | 498,167 | $ | 1,772,860 | $ | 1,466,088 | ||||||||
Revenues realized from station barter arrangements | 32,061 | 28,618 | 92,574 | 79,950 | ||||||||||||
Other non-media revenues | 26,505 | 21,619 | 73,824 | 61,308 | ||||||||||||
Total revenues | 693,835 | 548,404 | 1,939,258 | 1,607,346 | ||||||||||||
Media production expenses | 242,880 | 187,173 | 702,377 | 540,554 | ||||||||||||
Media selling, general and administrative expenses | 126,672 | 105,622 | 370,169 | 311,088 | ||||||||||||
Expenses realized from barter arrangements | 27,181 | 23,105 | 79,365 | 66,898 | ||||||||||||
Depreciation and amortization expenses (b) | 106,134 | 95,331 | 308,249 | 285,391 | ||||||||||||
Other non-media expenses | 20,488 | 16,555 | 57,946 | 46,988 | ||||||||||||
Corporate general and administrative expenses | 19,052 | 16,464 | 54,672 | 46,685 | ||||||||||||
Research and development expenses | 745 | 4,803 | 3,055 | 11,555 | ||||||||||||
Gain on asset dispositions | (3,311 | ) | (255 | ) | (5,982 | ) | (306 | ) | ||||||||
Operating income | 153,994 | 99,606 | 369,407 | 298,493 | ||||||||||||
Interest expense and amortization of debt discount and deferred financing costs | (53,488 | ) | (48,566 | ) | (156,819 | ) | (142,878 | ) | ||||||||
Loss from extinguishment of debt | (23,699 | ) | — | (23,699 | ) | — | ||||||||||
Income from equity and cost method investees | 1,423 | 252 | 2,789 | 5,405 | ||||||||||||
Other income (expense), net | 789 | (48 | ) | 2,355 | 1,220 | |||||||||||
Income before income taxes | 79,019 | 51,244 | 194,033 | 162,240 | ||||||||||||
Income tax provision | (26,986 | ) | (7,210 | ) | (65,771 | ) | (46,971 | ) | ||||||||
Net income | 52,033 | 44,034 | 128,262 | 115,269 | ||||||||||||
Net income attributable to the noncontrolling interests | (1,188 | ) | (779 | ) | (3,858 | ) | (1,945 | ) | ||||||||
Net income attributable to Sinclair Broadcast Group | $ | 50,845 | $ | 43,255 | $ | 124,404 | $ | 113,324 | ||||||||
Basic and Diluted Earnings Per Common Share Attributable to Sinclair Broadcast Group: | ||||||||||||||||
Basic earnings per share | $ | 0.54 | $ | 0.46 | $ | 1.32 | $ | 1.19 | ||||||||
Diluted earnings per share | $ | 0.54 | $ | 0.45 | $ | 1.30 | $ | 1.18 |
Balance Sheet Data: | September 30, 2016 | December 31, 2015 | |||||
Cash and cash equivalents | $ | 104,545 | $ | 149,972 | |||
Total assets | $ | 5,866,188 | $ | 5,432,315 | |||
Total debt (c) | $ | 4,206,310 | $ | 3,854,360 | |||
Total equity | $ | 486,666 | $ | 499,678 |
• | In July 2016, nine recipients received the inaugural awards from the Sinclair Broadcast Diversity Scholarship Fund that was established in 2015. |
• | In July 2016, we launched the new Circa.com website. This site uses new technology designed for enhanced mobile video and new-generation news consumers. |
• | In July 2016, we extended the maturity date of certain loans and commitments under our existing bank credit facility until July 31, 2021. |
• | In July 2016, we rebranded our digital agency solutions group under the name Compulse Integrated Marketing to provide in-depth digital marketing services aimed at small and medium sized businesses. |
• | In July 2016, we entered into a Consent Decree with the FCC resolving a number of previously disclosed matters relating to certain content broadcast on our stations, technical issues relating to LMAs, and the FCC's rule regarding retransmission consent negotiations. The FCC dismissed all pending claims against us with the Media Bureau and issued renewals for 90 television stations. In September 2016, as part of the settlement we paid of $9.5 million which was accrued as of June 30, 2016. |
• | In July 2016, we entered into agreements with FOX for the renewal of FOX affiliations in five markets. The FOX affiliations were also renewed in three markets by the licensees of stations that we provide sales and other services to under joint sales agreements. |
• | In August 2016, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on September 15, 2016 to the holders of record at the close of business on September 1, 2016. |
• | In August 2016, we signed a multi-year retransmission consent agreement with Comcast Cable for carriage of our broadcast television stations. |
• | In August 2016, we sponsored the 2016 National Association of Black Journalists and National Association of Hispanic Journalists convention, held in Washington, D.C. |
• | In August 2016, we issued $400 million in senior unsecured notes, which bear interest at a rate of 5.125% per annum and mature on February 15, 2027. The proceeds were used to redeem $350 million in senior unsecured notes due in 2021 and for general corporate purposes. As of September 30, 2016, we had $154.3 million of capacity to repurchase our stock. |
• | In September 2016, the Board of Directors approved an additional $150.0 million share repurchase authorization to be accessed once the existing authorization is exhausted. |
• | In September 2016, the Tennis Channel signed an eight-year rights agreement with the Volvo Car Open in Charleston, S.C., one of the largest women's-only tennis tournaments in the world. |
• | In September 2016, we showcased responsible drone reporting at a Capitol Hill science and technology fair aimed to educate Members of Congress and their staff on the uses of this innovative advancement in aeronautics. |
• | For the three months ended September 30, 2016, we purchased approximately 3.2 million shares of Class A Common Stock for $90.0 million. For the nine months ended September 30, 2016, we purchased approximately 3.6 million shares of Class A Common Stock for $101.2 million. As of September 30, 2016, the total remaining authorization was $154.3 million. In October and November 2016, we repurchased an additional 1.1 million shares of Class A Common Stock for $31.1 million. |
• | In November 2016, we announced the following executive promotions and changes which will become effective January 1, 2017: David Smith from Chairman, President & Chief Executive Officer to Executive Chairman; Christopher Ripley from Chief Financial Officer to President & Chief Executive Officer; and Lucy Rutishauser from SVP Corporate Finance & Treasurer to SVP Chief Financial Officer & Treasurer. |
• | In November 2016, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on December 15, 2016 to the holders of record at the close of business of December 1, 2016. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Media revenues (a) | $ | 635.3 | $ | 498.2 | $ | 1,772.9 | $ | 1,466.1 | |||||||
Revenues realized from station barter arrangements | 32.1 | 28.6 | 92.6 | 80.0 | |||||||||||
Other non-media revenues | 26.5 | 21.6 | 73.8 | 61.3 | |||||||||||
Total revenues | 693.9 | 548.4 | 1,939.3 | 1,607.4 | |||||||||||
Media production expenses (a) | 242.9 | 187.2 | 702.4 | 540.6 | |||||||||||
Media selling, general and administrative expenses (a) | 126.7 | 105.7 | 370.2 | 311.1 | |||||||||||
Expenses recognized from station barter arrangements | 27.2 | 23.1 | 79.4 | 66.9 | |||||||||||
Depreciation and amortization | 106.1 | 95.3 | 308.2 | 285.4 | |||||||||||
Other non-media expenses | 20.5 | 16.6 | 57.9 | 47.0 | |||||||||||
Corporate general and administrative expenses | 19.1 | 16.4 | 54.7 | 46.7 | |||||||||||
Research and development | 0.7 | 4.8 | 3.1 | 11.5 | |||||||||||
Gain on asset dispositions | (3.3 | ) | (0.3 | ) | (6.0 | ) | (0.3 | ) | |||||||
Operating income | $ | 154.0 | $ | 99.6 | $ | 369.4 | $ | 298.5 | |||||||
Net income attributable to Sinclair Broadcast Group | $ | 50.8 | $ | 43.3 | $ | 124.4 | $ | 113.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2016 | 2015 | Percent Change | 2016 | 2015 | Percent Change | ||||||||||||||||
Local revenues: | |||||||||||||||||||||
Non-political | $ | 469.6 | $ | 403.9 | 16.3 | % | $ | 1,350.8 | $ | 1,192.6 | 13.3 | % | |||||||||
Political | 3.7 | 3.2 | (b) | 11.4 | 5.4 | (b) | |||||||||||||||
Total local | 473.3 | 407.1 | 16.3 | % | 1,362.2 | 1,198.0 | 13.7 | % | |||||||||||||
National revenues (a): | |||||||||||||||||||||
Non-political | 89.7 | 85.2 | 5.3 | % | 264.4 | 256.4 | 3.1 | % | |||||||||||||
Political | 41.3 | 4.7 | (b) | 74.7 | 8.7 | (b) | |||||||||||||||
Total national | 131.0 | 89.9 | 45.7 | % | 339.1 | 265.1 | 27.9 | % | |||||||||||||
Total broadcast segment media revenues | $ | 604.3 | $ | 497.0 | 21.6 | % | $ | 1,701.3 | $ | 1,463.1 | 16.3 | % |
# of channels | Percent of Net Time Sales for the | Net Time Sales Percent Change | Percent of Net Time Sales for the | Net Time Sales Percent Change | |||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
ABC | 36 | 26.1% | 28.1% | (2.0)% | 27.5% | 28.6% | (1.1)% | ||||||
FOX | 54 | 23.3% | 26.1% | (2.8)% | 24.3% | 25.8% | (1.5)% | ||||||
CBS | 30 | 18.5% | 17.6% | 0.9% | 19.2% | 17.5% | 1.7% | ||||||
NBC | 22 | 16.7% | 11.7% | 5.0% | 13.4% | 11.8% | 1.6% | ||||||
CW | 43 | 7.3% | 8.1% | (0.8)% | 7.6% | 8.1% | (0.5)% | ||||||
MNT | 35 | 6.2% | 6.7% | (0.5)% | 6.2% | 6.7% | (0.5)% | ||||||
Other (a) | 262 | 1.9% | 1.7% | 0.2% | 1.7% | 1.5% | 0.2% | ||||||
Total | 482 |
Three months ended September 30, | Percent Change (Increase/(Decrease)) | Nine months ended September 30, | Percent Change (Increase/(Decrease)) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Media production expenses | $ | 222.7 | $ | 183.2 | 21.6 | % | $ | 639.2 | $ | 528.7 | 20.9 | % | |||||||||
Media selling, general and administrative expenses | $ | 116.8 | $ | 104.0 | 12.3 | % | $ | 344.2 | $ | 308.0 | 11.8 | % | |||||||||
Amortization of program contract costs and net realizable value adjustments | $ | 32.4 | $ | 29.8 | 8.7 | % | $ | 96.7 | $ | 90.0 | 7.4 | % | |||||||||
Corporate general and administrative expenses | $ | 17.5 | $ | 14.4 | 21.5 | % | $ | 50.3 | $ | 40.6 | 23.9 | % | |||||||||
Depreciation and amortization expenses | $ | 62.9 | $ | 62.1 | 1.3 | % | $ | 186.5 | $ | 185.8 | 0.4 | % |
Three months ended September 30, | Percent Change (Increase/ (Decrease)) | Nine months ended September 30, | Percent Change (Increase/ (Decrease)) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Corporate general and administrative expenses | $ | 1.3 | $ | 1.0 | 30.0 | % | $ | 3.3 | $ | 3.4 | (2.9 | )% | |||||||||
Interest expense | $ | 50.4 | $ | 47.3 | 6.6 | % | $ | 147.8 | $ | 139.3 | 6.1 | % | |||||||||
Income tax provision | $ | (27.0 | ) | $ | (7.2 | ) | 275.0 | % | $ | (65.8 | ) | $ | (47.0 | ) | 40.0 | % |
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net cash flows from operating activities | $ | 120.6 | $ | 133.5 | $ | 330.3 | $ | 313.7 | ||||||||
Cash flows (used in) from investing activities: | ||||||||||||||||
Acquisition of property and equipment | $ | (18.8 | ) | $ | (25.4 | ) | $ | (68.6 | ) | $ | (72.5 | ) | ||||
Acquisition of businesses, net of cash acquired | (2.8 | ) | (15.5 | ) | (425.9 | ) | (15.5 | ) | ||||||||
Purchase of alarm monitoring contracts | (7.5 | ) | (14.7 | ) | (29.1 | ) | (31.3 | ) | ||||||||
Proceeds from sale of assets | 16.4 | 18.8 | 16.4 | 23.7 | ||||||||||||
Investments in equity and costs method investees | (12.4 | ) | (5.3 | ) | (34.2 | ) | (43.1 | ) | ||||||||
Loans to affiliates | — | — | (19.5 | ) | — | |||||||||||
Other | (4.0 | ) | 4.4 | 3.4 | 11.2 | |||||||||||
Net cash flows used in investing activities | $ | (29.1 | ) | $ | (37.7 | ) | $ | (557.5 | ) | $ | (127.5 | ) | ||||
Cash flows (used in) from financing activities: | ||||||||||||||||
Proceeds from notes payable, commercial bank financing and capital leases | $ | 403.8 | $ | 14.6 | $ | 1,011.3 | $ | 379.5 | ||||||||
Repayments of notes payable, commercial bank financing and capital leases | (374.4 | ) | (14.6 | ) | (654.0 | ) | (375.1 | ) | ||||||||
Dividends paid on Class A and Class B Common Stock | (16.9 | ) | (15.6 | ) | (49.7 | ) | (47.1 | ) | ||||||||
Repurchase of outstanding Class A Common Stock | (89.9 | ) | (21.0 | ) | (101.2 | ) | (28.8 | ) | ||||||||
Other | (13.3 | ) | (4.4 | ) | (24.7 | ) | (12.9 | ) | ||||||||
Net cash flows (used in) from in financing activities | $ | (90.7 | ) | $ | (41.0 | ) | $ | 181.8 | $ | (84.5 | ) |
• | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that our receipts and expenditures are being made in accordance with authorizations of management or our Board of Directors; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material adverse effect on our financial statements. |
Period | Total Number of Shares Purchased (1) | Average Price Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (in millions) | |||||||||
Class A Common Stock : (2) | |||||||||||||
07/01/16 – 07/31/16 | 274,400 | 29.24 | 234,400 | 86.2 | |||||||||
08/01/16 – 08/31/16 | 406,000 | 28.75 | 406,000 | 74.6 | |||||||||
09/01/16 – 09/30/16 | 2,545,101 | 28.13 | 2,545,101 | 154.3 |
Exhibit Number | Description | |
10.1 | Indenture, dated as of August 30, 2016, by and among Sinclair Television Group, Inc., the guarantors party thereto, and U.S. Bank National Association, as trustee (Incorporated by reference from Registrant's Current Report on Form 8-K filed on September 2, 2016. | |
31.1 | Certification by David D. Smith, as Chairman and Chief Executive Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241). | |
31.2 | Certification by Christopher S. Ripley, as Chief Financial Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241). | |
32.1 | Certification by David D. Smith, as Chairman and Chief Executive Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350). | |
32.2 | Certification by Christopher S. Ripley, as Chief Financial Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350). | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
SINCLAIR BROADCAST GROUP, INC. | ||
By: | /s/ David R. Bochenek | |
David R. Bochenek | ||
Senior Vice President/Chief Accounting Officer | ||
(Authorized Officer and Chief Accounting Officer) |
Exhibit Number | Description | |
10.1 | Indenture, dated as of August 30, 2016, by and among Sinclair Television Group, Inc., the guarantors party thereto, and U.S. Bank National Association, as trustee (Incorporated by reference from Registrant's Current Report on Form 8-K filed on September 2, 2016. | |
31.1 | Certification by David D. Smith, as Chairman and Chief Executive Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241). | |
31.2 | Certification by Christopher S. Ripley, as Chief Financial Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241). | |
32.1 | Certification by David D. Smith, as Chairman and Chief Executive Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350). | |
32.2 | Certification by Christopher S. Ripley, as Chief Financial Officer of Sinclair Broadcast Group, Inc., pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350). | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
Date: | November 8, 2016 | |||
/s/ David D.Smith | ||||
Signature: | David D. Smith | |||
Chief Executive Officer |
Date: | November 8, 2016 | |||
/s/ Christopher S. Ripley | ||||
Signature: | Christopher S. Ripley | |||
Chief Financial Officer |
/s/ David D. Smith | |
David D. Smith | |
Chief Executive Officer | |
November 8, 2016 |
/s/ Christopher S. Ripley | |
Christopher S. Ripley | |
Chief Financial Officer | |
November 8, 2016 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 04, 2016 |
|
Entity Listings | ||
Entity Registrant Name | SINCLAIR BROADCAST GROUP INC | |
Entity Central Index Key | 0000912752 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Listings | ||
Entity Common Stock, Shares Outstanding (shares) | 64,706,034 | |
Class B Common Stock | ||
Entity Listings | ||
Entity Common Stock, Shares Outstanding (shares) | 25,928,357 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts receivable, allowance for doubtful accounts | $ 2,838 | $ 4,495 |
Class A Common Stock | ||
Common Stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common Stock, shares issued (shares) | 65,546,601 | 68,792,483 |
Common Stock, shares outstanding (shares) | 65,546,601 | 68,792,483 |
Class B Common Stock | ||
Common Stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common Stock, shares issued (shares) | 25,928,357 | 25,928,357 |
Common Stock, shares outstanding (shares) | 25,928,357 | 25,928,357 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
REVENUES: | ||||
Media revenues | $ 635,269 | $ 498,167 | $ 1,772,860 | $ 1,466,088 |
Revenues realized from station barter arrangements | 32,061 | 28,618 | 92,574 | 79,950 |
Other non-media revenues | 26,505 | 21,619 | 73,824 | 61,308 |
Total revenues | 693,835 | 548,404 | 1,939,258 | 1,607,346 |
OPERATING EXPENSES: | ||||
Media production expenses | 242,880 | 187,173 | 702,377 | 540,554 |
Media selling, general and administrative expenses | 126,672 | 105,622 | 370,169 | 311,088 |
Expenses realized from barter arrangements | 27,181 | 23,105 | 79,365 | 66,898 |
Amortization of program contract costs and net realizable value adjustments | 32,441 | 29,841 | 96,722 | 90,014 |
Other non-media expenses | 20,488 | 16,555 | 57,946 | 46,988 |
Depreciation of property and equipment | 25,886 | 25,476 | 74,330 | 75,938 |
Corporate general and administrative expenses | 19,052 | 16,464 | 54,672 | 46,685 |
Amortization of definite-lived intangible and other assets | 47,807 | 40,014 | 137,197 | 119,439 |
Research and development expenses | 745 | 4,803 | 3,055 | 11,555 |
Gain on asset dispositions | (3,311) | (255) | (5,982) | (306) |
Total operating expenses | 539,841 | 448,798 | 1,569,851 | 1,308,853 |
Operating income | 153,994 | 99,606 | 369,407 | 298,493 |
OTHER INCOME (EXPENSE): | ||||
Interest expense and amortization of debt discount and deferred financing costs | (53,488) | (48,566) | (156,819) | (142,878) |
Loss from extinguishment of debt | (23,699) | 0 | (23,699) | 0 |
Income from equity investments | 1,423 | 252 | 2,789 | 5,405 |
Other income (expense) | 789 | (48) | 2,355 | 1,220 |
Total other expense, net | (74,975) | (48,362) | (175,374) | (136,253) |
Income before income taxes | 79,019 | 51,244 | 194,033 | 162,240 |
INCOME TAX PROVISION | (26,986) | (7,210) | (65,771) | (46,971) |
NET INCOME | 52,033 | 44,034 | 128,262 | 115,269 |
Net income attributable to the noncontrolling interests | (1,188) | (779) | (3,858) | (1,945) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | $ 50,845 | $ 43,255 | $ 124,404 | $ 113,324 |
Dividends declared per share (USD per share) | $ 0.18 | $ 0.165 | $ 0.525 | $ 0.345 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | ||||
Basic earnings per share (USD per share) | 0.54 | 0.46 | 1.32 | 1.19 |
Diluted earnings per share (USD per share) | $ 0.54 | $ 0.45 | $ 1.30 | $ 1.18 |
Weighted average common shares outstanding (shares) | 93,948 | 95,002 | 94,595 | 95,146 |
Weighted average common and common equivalent shares outstanding (shares) | 94,766 | 95,692 | 95,465 | 95,837 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 52,033 | $ 44,034 | $ 128,262 | $ 115,269 |
Amortization of net periodic pension benefit costs, net of taxes | 0 | 10 | 0 | 178 |
Comprehensive income | 52,033 | 44,044 | 128,262 | 115,447 |
Comprehensive income attributable to the noncontrolling interests | (1,188) | (779) | (3,858) | (1,945) |
Comprehensive income attributable to Sinclair Broadcast Group | $ 50,845 | $ 43,265 | $ 124,404 | $ 113,502 |
CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) - USD ($) $ in Thousands |
Total |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Noncontrolling Interests |
Class A Common Stock |
Class A Common Stock
Common Stock
|
Class B Common Stock |
Class B Common Stock
Common Stock
|
---|---|---|---|---|---|---|---|---|---|
BALANCE (shares) at Dec. 31, 2014 | 69,578,899 | 25,928,357 | |||||||
BALANCE at Dec. 31, 2014 | $ 405,343 | $ 979,202 | $ (545,820) | $ (6,455) | $ (22,539) | $ 696 | $ 259 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends declared and paid on Class A and Class B Common Stock | (47,104) | (47,104) | |||||||
Repurchases of Class A Common Stock (shares) | (1,107,887) | ||||||||
Repurchases of Class A Common Stock | (28,823) | (28,812) | $ (11) | ||||||
Class A Common Stock issued pursuant to employee benefit plans (shares) | 291,911 | ||||||||
Class A Common Stock issued pursuant to employee benefit plans | 10,619 | 10,616 | $ 3 | ||||||
Tax benefit on share based awards | 703 | 703 | |||||||
Distributions to noncontrolling interests, net | (6,655) | (6,655) | |||||||
Other comprehensive income | 178 | 178 | |||||||
Issuance of subsidiary stock awards | 1,731 | 1,731 | |||||||
Net income | 115,269 | 113,324 | 1,945 | ||||||
BALANCE (shares) at Sep. 30, 2015 | 68,762,923 | 25,928,357 | |||||||
BALANCE at Sep. 30, 2015 | 451,261 | 961,709 | (479,600) | (6,277) | (25,518) | $ 688 | $ 259 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Cumulative effect of adoption of new accounting standard (see Note 1) | 2,264 | 431 | 1,833 | ||||||
BALANCE (shares) at Dec. 31, 2015 | 68,792,483 | 68,792,483 | 25,928,357 | 25,928,357 | |||||
BALANCE at Dec. 31, 2015 | 499,678 | 962,726 | (437,029) | (834) | (26,132) | $ 688 | $ 259 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends declared and paid on Class A and Class B Common Stock | (49,667) | (49,667) | |||||||
Repurchases of Class A Common Stock (shares) | (3,600,000) | (3,610,201) | |||||||
Repurchases of Class A Common Stock | (101,164) | (101,127) | $ (101,200) | $ (37) | |||||
Class A Common Stock issued pursuant to employee benefit plans (shares) | 364,319 | ||||||||
Class A Common Stock issued pursuant to employee benefit plans | 14,869 | 14,865 | 0 | $ 4 | |||||
Distributions to noncontrolling interests, net | (8,363) | (8,363) | |||||||
Issuance of subsidiary stock awards | 787 | 787 | |||||||
Net income | 128,262 | 124,404 | 3,858 | ||||||
BALANCE (shares) at Sep. 30, 2016 | 65,546,601 | 65,546,601 | 25,928,357 | 25,928,357 | |||||
BALANCE at Sep. 30, 2016 | $ 486,666 | $ 876,895 | $ (360,459) | $ (834) | $ (29,850) | $ 655 | $ 259 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
9 Months Ended | |
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Sep. 30, 2016 |
Sep. 30, 2015 |
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CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES: | ||
Net income | $ 128,262 | $ 115,269 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation of property and equipment | 74,330 | 75,938 |
Amortization of definite-lived intangible and other assets | 137,197 | 119,439 |
Amortization of program contract costs and net realizable value adjustments | 96,722 | 90,014 |
Loss on extinguishment of debt, non-cash portion | 3,875 | 0 |
Stock-based compensation expense | 13,470 | 14,778 |
Deferred tax benefit | 6,631 | (19,623) |
Change in assets and liabilities, net of acquisitions: | ||
(Increase) decrease in accounts receivable | (77,118) | 563 |
Increase in prepaid expenses and other current assets | (4,344) | (11,643) |
Increase in accounts payable and accrued liabilities | 36,286 | 8,128 |
Net change in net income taxes payable/receivable | (8,411) | 5,623 |
Payments on program contracts payable | (84,625) | (82,594) |
Other, net | 7,985 | (2,171) |
Net cash flows from operating activities | 330,260 | 313,721 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (68,601) | (72,476) |
Acquisition of businesses, net of cash acquired | (425,856) | (15,514) |
Purchase of alarm monitoring contracts | (29,143) | (31,340) |
Proceeds from sale of assets | 16,396 | 23,650 |
Investments in equity and cost method investees | (34,224) | (43,068) |
Loans to affiliates | (19,500) | 0 |
Other, net | 3,401 | 11,215 |
Net cash flows used in investing activities | (557,527) | (127,533) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 1,011,312 | 379,481 |
Repayments of notes payable, commercial bank financing and capital leases | (653,987) | (375,104) |
Dividends paid on Class A and Class B Common Stock | (49,667) | (47,104) |
Repurchase of outstanding Class A Common Stock | (101,164) | (28,823) |
Payments for deferred financing cost | (15,598) | (3,847) |
Other, net | (9,056) | (9,084) |
Net cash flows from (used in) financing activities | 181,840 | (84,481) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (45,427) | 101,707 |
CASH AND CASH EQUIVALENTS, beginning of period | 149,972 | 17,682 |
CASH AND CASH EQUIVALENTS, end of period | $ 104,545 | $ 119,389 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Nature of Operations Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments. As of September 30, 2016, our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 173 stations in 81 markets. These stations broadcast 482 channels, as of September 30, 2016. For the purpose of this report, these 173 stations and 482 channels are referred to as “our” stations and channels. Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and variable interest entities (VIEs) for which we are the primary beneficiary. Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities. All intercompany transactions and account balances have been eliminated in consolidation. Interim Financial Statements The consolidated financial statements for the three and nine months ended September 30, 2016 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statement of equity (deficit) and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements discussed below. As permitted under the applicable rules and regulations of the Securities and Exchange Commission (SEC), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year. Variable Interest Entities In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. We consolidate VIEs when we are the primary beneficiary. Third-party station licensees. Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee’s acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. As of September 30, 2016 and December 31, 2015, respectively, we have concluded that 37 of these licensees are VIEs. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary of the variable interests because, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and because we absorb losses and returns that would be considered significant to the VIEs. Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham). See Note 7. Related Person Transactions for more information about the arrangements with Cunningham. The net revenues of the stations which we consolidate were $79.1 million and $227.4 million for the three and nine months ended September 30, 2016, and $71 million and $207.6 million for the three and nine months ended September 30, 2015, respectively. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation. See Changes in the Rules of Television Ownership, Joint Sales Agreements, Retransmission Consent Negotiations, and National Ownership Cap within Note 4. Commitments and Contingencies for discussion of recent changes in FCC rules related to JSAs. As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets for the periods presented (in thousands):
The amounts above represent the consolidated assets and liabilities of the VIEs described above, for which we are the primary beneficiary, and have been aggregated as they all relate to our broadcast business. Excluded from the amounts above are payments made to Cunningham under the LMAs and certain JSAs which are treated as a prepayment of the purchase price of the stations and capital leases between us and Cunningham which are eliminated in consolidation. The total payments made under these LMAs and certain JSAs as of September 30, 2016 and December 31, 2015, which are excluded from liabilities above, were $40.0 million and $37.6 million, respectively. The total capital lease liabilities, net of capital lease assets, excluded from the above were $4.5 million for both September 30, 2016 and December 31, 2015. Also excluded from the amounts above are liabilities associated with certain outsourcing agreements and purchase options with certain VIEs totaling $77.8 million and $72.5 million as of September 30, 2016 and December 31, 2015, respectively, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. All the liabilities are non-recourse to us except for certain debt of VIEs which we guarantee. The risk and reward characteristics of the VIEs are similar. Other investments. We have investments in real estate ventures and investment companies which are considered VIEs. However, we do not participate in the management of these entities including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs. We account for these entities using the equity or cost method of accounting. The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary as of September 30, 2016 and December 31, 2015 are $119.9 million and $18.1 million, respectively, and are included in other assets in the consolidated balance sheets. The increase in 2016 was due to the adoption of the revised accounting guidance during the first quarter of 2016 related to consolidation as discussed under Recent Accounting Pronouncements below, which resulted in additional investments being considered VIEs. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to these investments are recorded in income from equity and cost method investments in the consolidated statement of operations. We recorded income of $1.4 million and $2.8 million for the three and nine months ended September 30, 2016, and income of $0.7 million and $6.5 million for the three and nine months ended September 30, 2015 respectively. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective for the annual reporting period beginning after December 15, 2017, however, early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of this guidance on our consolidated financial statements. In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. The new standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We will be adopting this guidance beginning December 31, 2016, which will involve adding policies and procedures around our assessments to continue as a going concern. In February 2015, the FASB issued new guidance that amends the current consolidation guidance on the determination of whether an entity is a variable interest entity. The new standard is effective for the interim and annual periods beginning after December 15, 2015. We adopted this revised guidance on a modified retrospective basis during the three months ended March 31, 2016. As disclosed under Other investments under Variable Interest Entities above, the adoption of the revised guidance resulted in additional investments in real estate ventures and investment companies being considered VIEs, however, we concluded that we were not the primary beneficiary of these investments. The revised guidance did not have any other impact on our consolidation conclusions. In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This new guidance will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In March 2016, the FASB issued new guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income tax effects, forfeitures, the impact of employee income tax withholdings and classification of certain related items in the statement of cash flows. We early adopted this guidance effective January 1, 2016, which did not have a material effect on the consolidated financial statements. The adoption of the various changes in the guidance were applied as required by the guidance either on the prospective, modified retrospective, or full retrospective basis. As shown in the consolidated statement of stockholders' equity, upon adoption, we recorded a $0.4 million increase to additional paid in capital and a $1.8 million decrease in accumulated deficit, net of taxes, to record the cumulative effect of changing the classification of certain liability awards to equity classification. Additionally, for the nine months ended September 30, 2015, we reclassified $2.2 million from net cash flows from operating activities to net cash flows from financing activities in our consolidated statement of cash flows related to cash payments made to taxing authorities on certain employees' behalf for shares withheld. In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard, which includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flow. The new standard is effective for fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. Revenue Recognition Total revenues include: (i) cash and barter advertising revenues, net of agency commissions; (ii) retransmission consent fees; (iii) network compensation; (iv) other media revenues and (v) revenues from our other businesses. Advertising revenues, net of agency commissions, are recognized in the period during which advertisements are placed. Some of our retransmission consent agreements contain both advertising and retransmission consent elements. We have determined that these retransmission consent agreements are revenue arrangements with multiple deliverables. Advertising and retransmission consent deliverables sold under our agreements are separated into different units of accounting at fair value. Revenue applicable to the advertising element of the arrangement is recognized similar to the advertising revenue policy noted above. Revenue applicable to the retransmission consent element of the arrangement is recognized over the life of the agreement. Network compensation revenue is recognized over the term of the contract. All other significant revenues are recognized as services are provided. Income Taxes Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the nine months ended September 30, 2016 and 2015 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial portion of our available state net operating loss (NOL) carryforwards, based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Our effective income tax rate for the three and nine months ended September 30, 2016 approximated the statutory rate. Our effective income tax rate for the three and nine months ended September 30, 2015 was less than the statutory rate primarily due to 1) a reduction in liability for unrecognized tax benefits of $5.7 million, in the third quarter of 2015, as a result of statute of limitations expiration and 2) a $3.3 million adjustment to the income tax provision upon finalization of the 2014 federal income tax return, primarily related to greater than originally projected available income tax deductions and credits. Share Repurchase Program On March 20, 2014, the Board of Directors authorized a $150.0 million share repurchase authorization. On September 6, 2016 the Board of Directors authorized an additional $150.0 million share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. For the three months ended September 30, 2016, we purchased approximately 3.2 million shares of Class A Common Stock for $90.0 million. For the nine months ended September 30, 2016, we purchased approximately 3.6 million shares of Class A Common Stock for $101.2 million. As of September 30, 2016, the total remaining authorization was $154.3 million. In October and November 2016, we repurchased an additional 1.1 million shares of Class A Common Stock for $31.1 million. Reclassifications Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation. |
ACQUISITIONS |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS: Tennis Channel. In March 2016, we acquired all of the outstanding common stock of Tennis Channel (Tennis), a cable network which includes coverage of the top 100 tennis tournaments and original professional sport and tennis lifestyle shows, for $350.0 million plus a working capital adjustment of $9.2 million. This was funded through cash on hand and a draw on the Bank Credit Agreement. The acquisition provides an expansion of our network business and increases value based on the synergies we can achieve. Tennis is reported within Other within Note 6. Segment Data. The following table summarizes the allocated fair value of acquired assets and assumed liabilities (in thousands):
The preliminary allocation presented above is based upon management’s estimate of the fair values using valuation techniques including income, cost and market approaches. In estimating the fair value of the acquired assets and assumed liabilities, the fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates. The purchase price has been allocated to the acquired assets and assumed liabilities based on estimated fair values. The allocation is preliminary pending a final determination of the fair values of the assets and liabilities. During the three months ended September 30, 2016, we made certain measurement period adjustments to the initial purchase accounting: an increase to definite-lived intangible assets of $45.6 million, a decrease to indefinite-lived intangible assets of $1.5 million, a decrease to deferred taxes assets of $16.1 million resulting in a net deferred tax liability, a decrease to goodwill of $25.3 million, and an increase to amortization of $1.1 million during the three months ended September 30, 2016. Indefinite-lived intangible assets are comprised of trade names. Customer relationships, which represent existing advertiser relationships and contractual relationships with MVPDs, will be amortized over the estimated remaining useful lives of 10 to 15 years. Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives. Goodwill is calculated as the excess of the consideration over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies. Goodwill will not be deductible for tax purposes. Other intangible assets will be amortized over the respective weighted average useful lives ranging from 1 to 3 years. The following table summarizes the amounts allocated to definite-lived intangible assets representing the estimated fair values (in thousands):
In connection with the acquisitions, for the nine months ended September 30, 2016, we incurred a total of $0.2 million of costs primarily related to legal and other professional services which we expensed as incurred and classified as corporate general and administrative expenses in the consolidated statements of operations. For the three months ended September 30, 2016, net revenues and operating income of Tennis were $27.4 million and $1.3 million, respectively. For the nine months ended September 30, 2016, net revenues and an operating loss of Tennis were $62.5 million and $9.6 million, respectively. Pro Forma Information The following table sets forth unaudited results of operations for the three and nine months ended September 30, 2016 and 2015 assuming that Tennis, along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the acquisition of television station acquisitions discussed below, as they were deemed not material both individually and in the aggregate (in thousands, except per share data):
This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments, and is not indicative of what our results would have been had we operated Tennis since the beginning of the annual period presented because the pro forma results do not reflect expected synergies. The pro forma adjustments reflect depreciation expense and amortization of intangible assets related to the fair value adjustments of the assets acquired, additional interest expense related to the financing of the transactions, and exclusion of nonrecurring financing and transaction related costs. Depreciation and amortization expense are higher than amounts recorded in the historical financial statements of the acquirees due to the fair value adjustments recorded for long-lived tangible and intangible assets in purchase accounting. Television Station Acquisitions. During the nine months ended September 30, 2016, we acquired certain television station related assets for an aggregate purchase price of $72.0 million less working capital of $0.2 million. In conjunction with the acquisition of certain television stations, we simultaneously sold broadcast assets of certain stations. During the three and nine months ended September 30, 2016, we recognized a gain on sale of those broadcast assets of $1.8 million and $2.6 million, respectively. |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING |
9 Months Ended |
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Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | NOTES PAYABLE AND COMMERCIAL BANK FINANCING: 5.125% Senior Notes, due 2027 On August 30, 2016, we issued $400.0 million of senior unsecured notes, which bear interest at a rate of 5.125% per annum and mature on February 15, 2027 (the 5.125% Notes), pursuant to an indenture dated August 30, 2016 (the 5.125% Indenture). The 5.125% Notes were priced at 100% of their par value and interest is payable semi-annually on February 15 and August 15, commencing on February15, 2017. Prior to August 15, 2021, we may redeem the 5.125% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.125% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.125% Indenture. In addition, on or prior to August 15, 2019, we may redeem up to 35% of the 5.125% Notes, using proceeds of certain equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, the holders of the 5.125% Notes may require us to repurchase some or all of the notes. There are no registration rights associated with the 5.125% Notes. The net proceeds of the 5.125% Notes were used to redeem $350.0 million aggregate principal amount of STG's 6.375% senior unsecured notes due 2021 (the 6.375% Notes) and for general corporate purposes. The redemption price, including the outstanding principal amount of the 6.375% Notes, accrued and unpaid interest, and a make-whole premium, totaled $377.2 million. We recorded a loss on extinguishment of debt of $23.7 million related to this redemption. We incurred $6.6 million of deferred financing costs in connection with the issuance of the 5.125% Notes as of September 30, 2016. 5.875% Senior Notes, due 2026 On March 23, 2016, we issued $350.0 million of senior unsecured notes, which bear interest at a rate of 5.875% per annum and mature on March 15, 2026 (the 5.875% Notes), pursuant to an indenture dated March 23, 2016 (the 5.875% Indenture). The 5.875% Notes were priced at 100% of their par value and interest is payable semi-annually on March 15 and September 15, commencing on September 15, 2016. Prior to March 15, 2021, we may redeem the 5.875% Notes, in whole or in part, at any time or from time to time at a price equal to 100% of the principal amount of the 5.875% Notes plus accrued and unpaid interest, if any, to the date of redemption, plus a “make-whole” premium as set forth in the 5.875% Indenture. In addition, on or prior to March 15, 2019, we may redeem up to 35% of the 5.875% Notes, using proceeds of certain equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, the holders of the 5.875% Notes may require us to repurchase some or all of the notes. There are no registration rights associated with the 5.875% Notes. The proceeds from the offering of the 5.875% Notes, were used to repay amounts under our revolving credit facility and for other general corporate purposes. We incurred $5.9 million of deferred financing costs in connection with the issuance of the 5.875% Notes. As discussed in Note 2. Acquisitions, we completed the acquisition of Tennis in March 2016. The acquisition was funded, in part, by a draw on our revolving line of credit which was repaid using the proceeds from the 5.875% Notes discussed above. Bank Credit Agreement On July 19, 2016, we entered into an amendment and extension of our bank credit agreement. Pursuant to the amendment, the maturity date applicable to $485.2 million in revolving commitments and $139.5 million of term loan A loans were extended to July 31, 2021. The remaining $153.5 million of outstanding term loan A loans will mature April 9, 2018. In connection with the transaction, we also amended certain pricing terms related to the loans. We incurred approximately $2.6 million of financing costs in connection with the amendment, of which $0.3 million was expensed and the remaining $2.3 million was capitalized as deferred financing cost as of September 30, 2016. As of September 30, 2016 and December 31, 2015, there was no outstanding balance under our revolving credit facility. As of September 30, 2016, we had $483.3 million borrowing capacity under our revolving credit facility. |
COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: Litigation We are a party to lawsuits and claims from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. After reviewing developments to date with legal counsel, our management is of the opinion that none of our pending and threatened matters are material. The FCC has undertaken an investigation in response to a complaint it received alleging possible violations of the FCC’s sponsorship identification rules by the Company and certain of its subsidiaries. We cannot predict the outcome of any potential FCC action related to this matter but it is possible that such action could include fines and/or compliance programs. Changes in the Rules of Television Ownership, Joint Sales Agreements, Retransmission Consent Negotiations, and National Ownership Cap In March, 2014, the FCC issued a public notice indicating that it will closely scrutinize any broadcast assignment or transfer application proposing sharing arrangements (such as JSAs, LMAs and other shared services agreements) and contingent interests (such as options). We cannot now predict what actions the FCC may require in connection with the processing of applications for FCC consent to future transactions. In addition, in August, 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of its media ownership rules and issued an order which left most of the existing multiple ownership rules intact, but amended the rules to provide that, for JSAs where two television stations are located in the same market, and a party with an attributable interest in one station sells more than 15% of the ad time per week of the other station, the party selling such ad time shall be treated as if it had an attributable ownership interest in the second station. The order provides that JSAs that existed prior to March 31, 2014, may remain in place until October 1, 2025, at which point they must be terminated, amended or otherwise come into compliance with the rules. In addition, these "grandfathered" JSAs may be transferred or assigned without losing grandfathering status. These new rules could limit our future ability to create duopolies or other two station operations in certain markets. The revenues of these JSA arrangements we earned were $16.0 million and $11.5 million for the three months ended September 30, 2016 and 2015 and $42.5 million and $34.2 million for the nine months ended September 30, 2016 and 2015, respectively. In February 2015, the FCC issued an order implementing certain statutorily required changes to its rules governing the duty to negotiate retransmission consent agreements in good faith. With these changes, a television broadcast station is prohibited from negotiating retransmission consent jointly with another television station in the same market unless the “stations are directly or indirectly under common de jure control permitted under the regulations of the Commission.” During a 2015 retransmission consent negotiation, an MVPD filed a complaint with the FCC accusing us of violating this rule. Although we reached agreement with the MVPD and they withdrew their complaint, the FCC undertook its own internal investigation regarding the allegations made by the MVPD and whether we negotiated in good faith as defined by the rules. In order to resolve the issues raised by the investigation described above and all other pending matters before the FCC's Media Bureau (Bureau), the Company, on July 29, 2016, without any admission of liability, entered into a consent decree with the FCC pursuant to which the Bureau agreed (i) to terminate their investigation regarding the retransmission consent negotiations described above as well as any other investigations pending before the Bureau, (ii) to dismiss with prejudice or deny any outstanding adversarial pleadings against the Company pending before the Bureau, (iii) to cancel outstanding forfeiture orders issued by the Bureau relating to the Company, and (iv) to grant all of the Company’s pending license renewals, subject to a payment by the Company to the United States Treasury in the amount of $9.5 million which was paid in September 2016. In addition, pursuant to the terms of the consent decree, the Company agreed to be subject to ongoing compliance monitoring by the FCC for a period of 36 months. Further, in September 2015, the FCC released a Notice of Proposed Rulemaking in response to a Congressional directive in STELAR to examine the “totality of the circumstances test” for good-faith negotiations of retransmission consent. The proposed rulemaking seeks comment on new factors and evidence to consider in its evaluation of claims of bad faith negotiation, including service interruptions prior to a “marquee sports or entertainment event,” restrictions on online access to broadcast programming during negotiation impasses, broadcasters’ ability to offer bundles of broadcast signals with other broadcast stations or cable networks, and broadcasters’ ability to invoke the FCC’s exclusivity rules during service interruptions. On July 14, 2016, the FCC’s Chairman announced that the FCC would not, at this time, proceed to adopt additional rules governing good faith negotiations of retransmission consent. No formal action has yet been taken on this Notice of Proposed Rulemaking, and we cannot predict if the full Commission will agree to terminate the Rulemaking without action. On September 6, 2016, the FCC released an order eliminating the UHF discount. The UHF discount allowed television station owners to discount the coverage of UHF stations when calculating compliance with the FCC’s national ownership cap, which prohibits a single entity from owning television stations that reach, in total, more than 39% of all the television households in the nation. All but 28 of the stations we own and operate, or to which we provide programming services are UHF. As a result of the elimination of the UHF discount, counting all our present stations and pending transactions, we reach over 37% of U.S. households. The changes to the national ownership cap could limit our future ability to make television station acquisitions. |
EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE: The following table reconciles income (numerator) and shares (denominator) used in our computations of basic and diluted earnings per share for the periods presented (in thousands):
There were 525,000 shares for the three and nine months ended September 30, 2016, and 200,000 shares for the three and nine months ended September 30, 2015 which had an anti-dilutive effect on the equivalent shares outstanding and therefore excluded from the diluted effect above. |
RELATED PERSON TRANSACTIONS |
9 Months Ended |
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Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PERSON TRANSACTIONS | RELATED PERSON TRANSACTIONS: Transactions with our controlling shareholders David, Frederick, J. Duncan and Robert Smith (collectively, the controlling shareholders) are brothers and hold substantially all of the Class B Common Stock and some of our Class A Common Stock. We engaged in the following transactions with them and/or entities in which they have substantial interests. Leases. Certain assets used by us and our operating subsidiaries are leased from Cunningham Communications Inc., Keyser Investment Group, Gerstell Development Limited Partnership and Beaver Dam, LLC (entities owned by the controlling shareholders). Lease payments made to these entities were $1.3 million for both the three months ended September 30, 2016 and 2015, and $3.8 million and $3.9 million for nine months ended September 30, 2016 and 2015, respectively. In September 2015, we were granted authority by the Federal Communications Commission (FCC) to operate an experimental facility in Washington D.C. and Baltimore markets to implement a Single Frequency Network (SFN) using the base elements of the new ATSC 3.0 transmission standard. In conjunction with this experimental facility, Cunningham Communications, Inc. provides tower space without charge. Charter Aircraft. We lease aircraft owned by certain controlling shareholders, including a new lease agreement as of February 2016 for the term of thirty months and will be renewed thereafter for successive terms of twelve months. For all leases, we incurred expenses of $0.3 million and $0.4 million for the three months ended September 30, 2016 and 2015, and $1.0 million for both the nine months ended September 30, 2016 and 2015, respectively. Cunningham Broadcasting Corporation Cunningham owns a portfolio of television stations including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; and WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan (collectively, the Cunningham Stations). Certain of our stations provide services to these Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 1. Nature of Operations and Summary of Significant Accounting Policies, for further discussion of the scope of services provided under these types of arrangements. The estate of Carolyn C. Smith, the mother of our controlling shareholders, currently owns all of the voting stock of the Cunningham Stations. The sale of the voting stock by the estate to an unrelated party is pending approval of the FCC. All of the non-voting stock is owned by trusts for the benefit of the children of our controlling shareholders. We consolidate certain subsidiaries of Cunningham, with which we have variable interests through various arrangements related to the Cunningham Stations discussed further below. The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2023 and there are two additional 5- year renewal terms remaining with final expiration on July 1, 2033. We also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant us the right to acquire, and grant Cunningham the right to require us to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Our applications to acquire these license related assets are pending FCC approval. Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station’s annual net broadcast revenue and (ii) $4.7 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The remaining aggregate purchase price of these stations as of September 30, 2016 was approximately $53.6 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025. We paid Cunningham under these agreements, $2.1 million and $2.1 million for the three months ended September 30, 2016 and 2015, respectively and $6.6 million and $7.8 million for nine months ended September 30, 2016 and 2015, respectively. The agreements with WBSF-TV and WGTU-TV/WGTQ-TV expire in November 2021 and August 2023, respectively, and each has renewal provisions for successive eight year periods. We earned $1.4 million and $1.5 million from the services we performed for these stations for the three months ended September 30, 2016 and 2015, respectively, and $3.9 million and $4.2 million for the nine months ended September 30, 2016 and 2015, respectively. As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported within our consolidated statement of operations. Our consolidated revenues related to the Cunningham Stations include $29.4 million and $25.8 million for the three months ended September 30, 2016 and 2015, respectively, and $83.8 million and $74.8 million for the nine months ended September 30, 2016 and 2015, respectively. During January 2016, Cunningham entered into a promissory note to borrow $19.5 million from us. The note bears interest at a fixed rate of 5.0% per annum (the 5.0% Notes), which is payable quarterly, commencing March 31, 2016. The note matures in January 2021, with additional one year renewal periods upon our approval. In April 2016, we entered into an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which they have an LMA that expires in April 2019, Cunningham will pay us an initial fee of $0.7 million and $0.2 million annually for master control services plus the cost to maintain and repair the equipment. Also, in August 2016, we entered into an agreement, expiring October 2021, with Cunningham to provide a news share service with their station in Johnstown, PA beginning in October 2016 for an annual fee of $1.0 million per year. Atlantic Automotive Corporation We sell advertising time to Atlantic Automotive Corporation (Atlantic Automotive), a holding company that owns automobile dealerships and an automobile leasing company. David D. Smith, our President and Chief Executive Officer, has a controlling interest in, and is a member of the Board of Directors of Atlantic Automotive. We received payments for advertising totaling $0.3 million and $0.1 million for the three months ended September 30, 2016 and 2015, and $0.6 million and $0.3 million for the nine months ended September 30, 2016 and 2015, respectively. Additionally, Atlantic Automotive leases office space owned by one of our consolidated real estate ventures in Towson, Maryland. Atlantic Automotive paid $0.3 million in rent during both the three months ended September 30, 2016 and 2015, and $0.8 million and $0.9 million for the nine months ended September 30, 2016 and 2015, respectively. Leased property by real estate ventures Certain of our real estate ventures have entered into leases with entities owned by David Smith to lease restaurant space. There are leases for three restaurants in a building owned by one of our consolidated real estate ventures in Baltimore, MD. Total rent received under these leases was $0.2 million for both the three months ended September 30, 2016 and 2015, and $0.5 million for both the nine months ended September 30, 2016 and 2015. There is also one lease for a restaurant in a building owned by one of our real estate ventures, accounted for under the equity method, in Towson, MD. This investment received $0.1 million in rent pursuant to the lease for both the three months ended September 30, 2016 and 2015, and $0.2 million and $0.3 million for the nine months ended September 30, 2016 and 2015, respectively. Payments for services provided by these three restaurants to us was less than $0.1 million for the three and nine months ended September 30, 2016 and 2015, respectively. |
SEGMENT DATA |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA | SEGMENT DATA: We measure segment performance based on operating income (loss). Our broadcast segment includes stations in 81 markets located throughout the continental United States. Other primarily consists of original networks and content, digital and internet solutions, technical services and other non-media investments. All of our businesses are located within the United States. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. Other and Corporate are not reportable segments but are included for reconciliation purposes. We had approximately $226.5 million and $226.0 million of intercompany loans between the broadcast segment, other, and corporate as of September 30, 2016 and 2015, respectively. We had $6.1 million in intercompany interest expense related to intercompany loans between the broadcast segment, other, and corporate for the three months ended September 30, 2016 and 2015. We had $18.3 million and $16.9 million in intercompany interest expense for the nine months ended September 30, 2016 and 2015, respectively. All other intercompany transactions are immaterial. Segment financial information is included in the following tables for the periods presented (in thousands):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
The carrying value and fair value of our notes and debentures for the periods presented (in thousands):
(a) In August 2016, we redeemed our 6.375% Senior Unsecured Notes due 2021. See Note 3. Notes Payable and Commercial Bank Financing, for additional information. (b) In March 2016, we issued $350 million in senior unsecured notes, which bear interest at a rate of 5.875% per annum and maturing in 2026. See Note 3. Notes Payable and Commercial Bank Financing, for additional information. (c) In August 2016, we issued $400 million in senior unsecured notes, which bear interest at a rate of 5.125% per annum and maturing in 2027. See Note 3. Notes Payable and Commercial Bank Financing, for additional information. |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING 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, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. Our Class A Common Stock and Class B Common Stock as of September 30, 2016, 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, 5.875% Notes, 6.125% Notes, and until they were redeemed, the 6.375% Notes. As of September 30, 2016, our consolidated total debt, net of deferred financing costs and debt discounts, of $4,206.3 million included $4,078.7 million related to STG and its subsidiaries of which SBG guaranteed $4,030.9 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 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 CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2015 (in thousands)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 (in thousands) (unaudited)
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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations | Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach with a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments. As of September 30, 2016, our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 173 stations in 81 markets. These stations broadcast 482 channels, as of September 30, 2016. For the purpose of this report, these 173 stations and 482 channels are referred to as “our” stations and channels. |
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Principles of Consolidation and Interim Financial Statements | The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and variable interest entities (VIEs) for which we are the primary beneficiary. Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities. All intercompany transactions and account balances have been eliminated in consolidation. Interim Financial Statements The consolidated financial statements for the three and nine months ended September 30, 2016 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statement of equity (deficit) and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements discussed below. As permitted under the applicable rules and regulations of the Securities and Exchange Commission (SEC), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year. |
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Variable Interest Entities | In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. We consolidate VIEs when we are the primary beneficiary. Third-party station licensees. Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee’s acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. As of September 30, 2016 and December 31, 2015, respectively, we have concluded that 37 of these licensees are VIEs. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary of the variable interests because, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and because we absorb losses and returns that would be considered significant to the VIEs. Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham). See Note 7. Related Person Transactions for more information about the arrangements with Cunningham. The net revenues of the stations which we consolidate were $79.1 million and $227.4 million for the three and nine months ended September 30, 2016, and $71 million and $207.6 million for the three and nine months ended September 30, 2015, respectively. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation. See Changes in the Rules of Television Ownership, Joint Sales Agreements, Retransmission Consent Negotiations, and National Ownership Cap within Note 4. Commitments and Contingencies for discussion of recent changes in FCC rules related to JSAs. As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets for the periods presented (in thousands):
The amounts above represent the consolidated assets and liabilities of the VIEs described above, for which we are the primary beneficiary, and have been aggregated as they all relate to our broadcast business. Excluded from the amounts above are payments made to Cunningham under the LMAs and certain JSAs which are treated as a prepayment of the purchase price of the stations and capital leases between us and Cunningham which are eliminated in consolidation. The total payments made under these LMAs and certain JSAs as of September 30, 2016 and December 31, 2015, which are excluded from liabilities above, were $40.0 million and $37.6 million, respectively. The total capital lease liabilities, net of capital lease assets, excluded from the above were $4.5 million for both September 30, 2016 and December 31, 2015. Also excluded from the amounts above are liabilities associated with certain outsourcing agreements and purchase options with certain VIEs totaling $77.8 million and $72.5 million as of September 30, 2016 and December 31, 2015, respectively, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. All the liabilities are non-recourse to us except for certain debt of VIEs which we guarantee. The risk and reward characteristics of the VIEs are similar. Other investments. We have investments in real estate ventures and investment companies which are considered VIEs. However, we do not participate in the management of these entities including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs. We account for these entities using the equity or cost method of accounting. The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary as of September 30, 2016 and December 31, 2015 are $119.9 million and $18.1 million, respectively, and are included in other assets in the consolidated balance sheets. The increase in 2016 was due to the adoption of the revised accounting guidance during the first quarter of 2016 related to consolidation as discussed under Recent Accounting Pronouncements below, which resulted in additional investments being considered VIEs. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to these investments are recorded in income from equity and cost method investments in the consolidated statement of operations. |
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Use of Estimates | The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
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Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective for the annual reporting period beginning after December 15, 2017, however, early adoption is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact of this guidance on our consolidated financial statements. In August 2014, the FASB issued guidance on disclosure of uncertainties about an entity’s ability to continue as a going concern. The new standard is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. We will be adopting this guidance beginning December 31, 2016, which will involve adding policies and procedures around our assessments to continue as a going concern. In February 2015, the FASB issued new guidance that amends the current consolidation guidance on the determination of whether an entity is a variable interest entity. The new standard is effective for the interim and annual periods beginning after December 15, 2015. We adopted this revised guidance on a modified retrospective basis during the three months ended March 31, 2016. As disclosed under Other investments under Variable Interest Entities above, the adoption of the revised guidance resulted in additional investments in real estate ventures and investment companies being considered VIEs, however, we concluded that we were not the primary beneficiary of these investments. The revised guidance did not have any other impact on our consolidation conclusions. In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. This new guidance will be effective for fiscal periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In March 2016, the FASB issued new guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income tax effects, forfeitures, the impact of employee income tax withholdings and classification of certain related items in the statement of cash flows. We early adopted this guidance effective January 1, 2016, which did not have a material effect on the consolidated financial statements. The adoption of the various changes in the guidance were applied as required by the guidance either on the prospective, modified retrospective, or full retrospective basis. As shown in the consolidated statement of stockholders' equity, upon adoption, we recorded a $0.4 million increase to additional paid in capital and a $1.8 million decrease in accumulated deficit, net of taxes, to record the cumulative effect of changing the classification of certain liability awards to equity classification. Additionally, for the nine months ended September 30, 2015, we reclassified $2.2 million from net cash flows from operating activities to net cash flows from financing activities in our consolidated statement of cash flows related to cash payments made to taxing authorities on certain employees' behalf for shares withheld. In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard, which includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flow. The new standard is effective for fiscal year beginning after December 15, 2017, including the interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. |
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Revenue Recognition | Total revenues include: (i) cash and barter advertising revenues, net of agency commissions; (ii) retransmission consent fees; (iii) network compensation; (iv) other media revenues and (v) revenues from our other businesses. Advertising revenues, net of agency commissions, are recognized in the period during which advertisements are placed. Some of our retransmission consent agreements contain both advertising and retransmission consent elements. We have determined that these retransmission consent agreements are revenue arrangements with multiple deliverables. Advertising and retransmission consent deliverables sold under our agreements are separated into different units of accounting at fair value. Revenue applicable to the advertising element of the arrangement is recognized similar to the advertising revenue policy noted above. Revenue applicable to the retransmission consent element of the arrangement is recognized over the life of the agreement. Network compensation revenue is recognized over the term of the contract. All other significant revenues are recognized as services are provided. |
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Income Taxes | Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the nine months ended September 30, 2016 and 2015 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial portion of our available state net operating loss (NOL) carryforwards, based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. |
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Reclassifications | Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation. |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Classification of Assets and Liabilities of VIEs | As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets for the periods presented (in thousands):
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ACQUISITIONS (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allocated fair value of acquired assets and liabilities assumed | The following table summarizes the allocated fair value of acquired assets and assumed liabilities (in thousands):
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Schedule of allocated to definite-lived intangible assets | The following table summarizes the amounts allocated to definite-lived intangible assets representing the estimated fair values (in thousands):
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Schedule of unaudited pro forma results of operations | The pro forma results exclude the acquisition of television station acquisitions discussed below, as they were deemed not material both individually and in the aggregate (in thousands, except per share data):
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EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of income (numerator) and shares (denominator) used in computation of diluted earnings per share | The following table reconciles income (numerator) and shares (denominator) used in our computations of basic and diluted earnings per share for the periods presented (in thousands):
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SEGMENT DATA (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment financial information | Segment financial information is included in the following tables for the periods presented (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying value and fair value of notes and debentures | The carrying value and fair value of our notes and debentures for the periods presented (in thousands):
(a) In August 2016, we redeemed our 6.375% Senior Unsecured Notes due 2021. See Note 3. Notes Payable and Commercial Bank Financing, for additional information. (b) In March 2016, we issued $350 million in senior unsecured notes, which bear interest at a rate of 5.875% per annum and maturing in 2026. See Note 3. Notes Payable and Commercial Bank Financing, for additional information. (c) In August 2016, we issued $400 million in senior unsecured notes, which bear interest at a rate of 5.125% per annum and maturing in 2027. See Note 3. Notes Payable and Commercial Bank Financing, for additional information. |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating balance sheet | These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10. CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2015 (in thousands)
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Schedule of condensed consolidating statement of operations and comprehensive income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 (in thousands) (unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016 (in thousands) (unaudited)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 (in thousands) (unaudited)
|
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Narrative) (Details) |
Sep. 30, 2016
channel
station
market
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of television stations owned | station | 173 |
Number of markets | market | 81 |
Number of channels | channel | 482 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Narrative) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
license
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
license
|
|
Variable Interest Entity [Line Items] | |||||
Media revenues | $ 693,835 | $ 548,404 | $ 1,939,258 | $ 1,607,346 | |
Income (loss) from equity investments | 1,423 | 252 | 2,789 | 5,405 | |
Eliminations | |||||
Variable Interest Entity [Line Items] | |||||
Media revenues | (25,820) | (20,538) | $ (67,313) | (60,584) | |
Consolidated VIEs, aggregated | |||||
Variable Interest Entity [Line Items] | |||||
Initial term of certain outsourcing agreements | 5 years | ||||
Number of licensees as VIEs (license) | license | 37 | 37 | |||
Media revenues | 79,100 | 71,000 | $ 227,400 | 207,600 | |
Consolidated VIEs | Eliminations | |||||
Variable Interest Entity [Line Items] | |||||
Liabilities associated with the certain outsourcing agreements and purchase options | 77,800 | 77,800 | $ 72,500 | ||
Consolidated VIEs | Cunningham | Eliminations | |||||
Variable Interest Entity [Line Items] | |||||
Total payments made under the LMA excluded from liabilities | 40,000 | 40,000 | 37,600 | ||
Total capital leased liabilities excluded from VIE consolidation | 4,500 | 4,500 | 4,500 | ||
VIEs which are not primary beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount | 119,900 | 119,900 | $ 18,100 | ||
Income (loss) from equity investments | $ 1,400 | $ 700 | $ 2,800 | $ 6,500 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|---|---|
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ 104,545 | $ 149,972 | $ 119,389 | $ 17,682 | |||
Accounts receivable | 519,662 | 424,608 | |||||
Current portion of program contract costs | 110,228 | 91,466 | |||||
Prepaid expenses and other current assets | 37,909 | 26,903 | |||||
Total current assets | 790,090 | 701,763 | |||||
PROGRAM CONTRACT COSTS, less current portion | 12,245 | 18,996 | |||||
PROPERTY AND EQUIPMENT, net | 713,088 | 717,137 | |||||
GOODWILL | 1,989,578 | 1,931,093 | |||||
INDEFINITE-LIVED INTANGIBLE ASSETS | 153,125 | 132,465 | |||||
DEFINITE-LIVED INTANGIBLE ASSETS, net | 1,983,326 | 1,751,570 | |||||
OTHER ASSETS | 224,736 | 175,566 | |||||
Total assets | [1] | 5,866,188 | 5,432,315 | ||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued liabilities | 291,213 | 251,313 | |||||
Current portion of notes payable, capital leases and commercial bank financing | 165,238 | 164,184 | |||||
Current portion of program contracts payable | 131,553 | 108,260 | |||||
Total current liabilities | 599,745 | 535,003 | |||||
LONG-TERM LIABILITIES: | |||||||
Notes payable, capital leases and commercial bank financing, less current portion | 4,022,437 | 3,669,160 | |||||
Program contracts payable, less current portion | 57,724 | 56,921 | |||||
Other long-term liabilities | 71,619 | 68,631 | |||||
Total liabilities | [1] | 5,379,522 | 4,932,637 | ||||
Consolidated VIEs, aggregated | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 490 | 490 | |||||
Accounts receivable | 24,945 | 21,719 | |||||
Current portion of program contract costs | 14,895 | 13,287 | |||||
Prepaid expenses and other current assets | 318 | 331 | |||||
Total current assets | 40,648 | 35,827 | |||||
PROGRAM CONTRACT COSTS, less current portion | 3,078 | 4,541 | |||||
PROPERTY AND EQUIPMENT, net | 3,301 | 7,609 | |||||
GOODWILL | 791 | 787 | |||||
INDEFINITE-LIVED INTANGIBLE ASSETS | 15,684 | 17,599 | |||||
DEFINITE-LIVED INTANGIBLE ASSETS, net | 80,693 | 79,086 | |||||
OTHER ASSETS | 6,924 | 6,924 | |||||
Total assets | 151,119 | 152,373 | |||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued liabilities | 1,112 | 1,240 | |||||
Current portion of notes payable, capital leases and commercial bank financing | 3,710 | 3,687 | |||||
Current portion of program contracts payable | 16,573 | 12,627 | |||||
Total current liabilities | 21,395 | 17,554 | |||||
LONG-TERM LIABILITIES: | |||||||
Notes payable, capital leases and commercial bank financing, less current portion | 21,944 | 24,594 | |||||
Program contracts payable, less current portion | 14,036 | 13,679 | |||||
Other long-term liabilities | 9,364 | 8,067 | |||||
Total liabilities | $ 66,739 | $ 63,894 | |||||
|
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect of classification change | $ (2,264) | |||
Reclassification from net cash flows from operating activities | $ (330,260) | $ (313,721) | ||
Reclassification to net cash flows from financing activities | $ 181,840 | $ (84,481) | ||
Additional Paid-In Capital | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect of classification change | (431) | |||
Accumulated Deficit | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect of classification change | (1,833) | |||
New Accounting Pronouncement, Early Adoption, Effect | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Reclassification from net cash flows from operating activities | $ 2,200 | |||
Reclassification to net cash flows from financing activities | $ 2,200 | |||
New Accounting Pronouncement, Early Adoption, Effect | Additional Paid-In Capital | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect of classification change | (400) | |||
New Accounting Pronouncement, Early Adoption, Effect | Accumulated Deficit | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cumulative effect of classification change | $ (1,800) |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Income Tax Contingency [Line Items] | |
Reduction on liability for unrecognized tax benefits | $ 5.7 |
2014 Federal Income Tax Return | |
Income Tax Contingency [Line Items] | |
Adjustment to income tax provision | $ 3.3 |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|---|
Nov. 08, 2016 |
Sep. 30, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 06, 2016 |
Mar. 20, 2014 |
|
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchase authorization | $ 150,000,000.0 | $ 150,000,000 | ||||
Shares repurchased | $ 101,164,000 | $ 28,823,000 | ||||
Remaining authorization amount | $ 154,300,000 | $ 154,300,000 | ||||
Class A Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (shares) | 3,200,000 | 3,600,000 | ||||
Shares repurchased | $ 90,000,000 | $ 101,200,000 | ||||
Subsequent Event | Class A Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares repurchased (shares) | 1,100,000.0 | |||||
Shares repurchased | $ 31,100,000 |
ACQUISITIONS (Narrative) (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 200,000 | ||||
Net revenues | $ 27,400,000 | 62,500,000 | |||
Operating income (loss) | 1,300,000 | (9,600,000) | |||
Gains of sale of broadcast assets | 3,311,000 | $ 255,000 | 5,982,000 | $ 306,000 | |
Tennis Channel | |||||
Business Acquisition [Line Items] | |||||
Business combination purchase price | $ 350,000,000 | ||||
Working capital adjustment | $ 9,200,000 | ||||
Decrease to deferred tax assets | 16,100,000 | ||||
Decrease to goodwill | 25,300,000 | ||||
Increase to amortization | 1,100,000 | ||||
Goodwill deductible for tax purposes | 0 | $ 0 | |||
Tennis Channel | Definite-lived intangible assets | |||||
Business Acquisition [Line Items] | |||||
Increase (decrease) to intangible assets | 45,600,000 | ||||
Tennis Channel | Indefinite-lived intangible assets | |||||
Business Acquisition [Line Items] | |||||
Increase (decrease) to intangible assets | (1,500,000) | ||||
Tennis Channel | Customer relationships | Minimum | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 10 years | ||||
Tennis Channel | Customer relationships | Maximum | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 15 years | ||||
Tennis Channel | Other intangible assets | Minimum | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 1 year | ||||
Tennis Channel | Other intangible assets | Maximum | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 3 years | ||||
Television Station Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Business combination purchase price | $ 72,000,000 | ||||
Working capital adjustment | 200,000 | ||||
Gains of sale of broadcast assets | $ 1,800,000 | $ 2,600,000 |
ACQUISITIONS - Fair Value of Acquired Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Allocated fair value of acquired assets and assumed liabilities | ||
Goodwill | $ 1,989,578 | $ 1,931,093 |
Tennis Channel | ||
Allocated fair value of acquired assets and assumed liabilities | ||
Cash | 5,111 | |
Accounts receivable | 17,629 | |
Prepaid expenses and other current assets | 6,518 | |
Property and equipment | 5,964 | |
Definite-lived intangible assets | 272,686 | |
Indefinite-lived intangible assets | 23,400 | |
Other assets | 619 | |
Accounts payable and accrued liabilities | (7,414) | |
Capital leases | (115) | |
Deferred tax liability | (20,056) | |
Other long term liabilities | (1,669) | |
Fair value of identifiable net assets acquired | 302,673 | |
Goodwill | 56,492 | |
Total | $ 359,165 |
ACQUISITIONS - Fair Value Allocation of Assets and Goodwill (Details) - Tennis Channel $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Fair value of identifiable definite-lived intangible assets acquired | $ 272,686 |
Customer relationships | |
Business Acquisition [Line Items] | |
Fair value of identifiable definite-lived intangible assets acquired | 269,300 |
Other intangible assets | |
Business Acquisition [Line Items] | |
Fair value of identifiable definite-lived intangible assets acquired | $ 3,386 |
ACQUISITIONS - Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Pro Forma Information | ||||
Total revenues | $ 693,835 | $ 571,437 | $ 1,953,750 | $ 1,678,800 |
Net Income | 79,019 | 40,911 | 127,222 | 107,312 |
Net Income attributable to Sinclair Broadcast Group | $ 50,845 | $ 40,132 | $ 123,364 | $ 105,367 |
Basic earnings per share attributable to Sinclair (USD per share) | $ 0.54 | $ 0.42 | $ 1.30 | $ 1.11 |
Diluted earnings per share attributable to Sinclair (USD per share) | $ 0.54 | $ 0.42 | $ 1.29 | $ 1.10 |
NOTES PAYABLE AND COMMERICAL BANK FINANCING - 5.125% Senior Notes, due 2027 (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 15, 2021 |
Aug. 15, 2019 |
Mar. 15, 2019 |
Aug. 30, 2016 |
Mar. 23, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Aug. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment related to redemption | $ 23,699,000 | $ 0 | $ 23,699,000 | $ 0 | ||||||||
Senior Notes | 5.125% Senior Notes, due 2027 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issued | $ 400,000,000.0 | $ 400,000,000 | ||||||||||
Interest rate | 5.125% | 5.125% | 5.125% | 5.125% | ||||||||
Percentage of the par value | 100.00% | |||||||||||
Deferred financing costs | $ 6,600,000 | |||||||||||
Senior Notes | 5.875% Senior Notes, due 2026 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issued | $ 350,000,000.0 | $ 350,000,000 | ||||||||||
Interest rate | 5.875% | 5.875% | 5.875% | 5.875% | ||||||||
Percentage of the par value | 100.00% | |||||||||||
Deferred financing costs | $ 5,900,000 | |||||||||||
Senior Notes | 5.875% Senior Notes, due 2026 | Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of the par value | 100.00% | 35.00% | 35.00% | |||||||||
Senior Notes | 6.375% Senior Notes due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.375% | 6.375% | 6.375% | |||||||||
Aggregate principal amount | $ 350,000,000 | |||||||||||
Redemption price | 377,200,000 | |||||||||||
Loss on extinguishment related to redemption | $ 23,700,000 |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - 5.875% Senior Notes, due 2026 (Details) - Senior Notes - 5.875% Senior Notes, due 2026 - USD ($) |
Mar. 15, 2021 |
Aug. 15, 2019 |
Mar. 15, 2019 |
Mar. 23, 2016 |
Sep. 30, 2016 |
Mar. 31, 2016 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Debt issued | $ 350,000,000.0 | $ 350,000,000 | ||||
Interest rate | 5.875% | 5.875% | 5.875% | |||
Percentage of the par value | 100.00% | |||||
Deferred financing costs | $ 5,900,000 | |||||
Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of the par value | 100.00% | 35.00% | 35.00% |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Bank Credit Agreement (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Jul. 19, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | |||
Outstanding debt | $ 4,206,300,000 | ||
Bank Credit Agreement | |||
Debt Instrument [Line Items] | |||
Financing costs | 2,300,000 | ||
Financing costs to be expensed | 300,000 | ||
Bank Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving commitments | $ 485,200,000.0 | ||
Financing costs | 2,600,000 | ||
Outstanding balance | 0 | $ 0 | |
Current borrowing capacity | $ 483,300,000 | ||
Bank Credit Agreement | Term Loan | Term Loan A Extended to July 2021 | |||
Debt Instrument [Line Items] | |||
Outstanding debt | 139,500,000 | ||
Bank Credit Agreement | Term Loan | Term Loan A Maturing April 2018 | |||
Debt Instrument [Line Items] | |||
Outstanding debt | $ 153,500,000 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016
USD ($)
station
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
station
|
Sep. 30, 2015
USD ($)
|
Sep. 06, 2016
station
|
Jul. 29, 2016
USD ($)
|
Apr. 15, 2014
station
|
|
COMMITMENTS AND CONTINGENCIES | |||||||
Number of television stations with attributable interest (station) | station | 1 | ||||||
Percentage of ad time to be considered an owner | 15.00% | ||||||
Net revenue | $ | $ 693,835 | $ 548,404 | $ 1,939,258 | $ 1,607,346 | |||
Period subject to ongoing compliance monitoring by the FCC | 36 months | ||||||
Number of television stations owned and operated | station | 173 | 173 | |||||
FCC Consent Decree Settlement | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Subject payment amount to the United States Treasury | $ | $ 9,500 | ||||||
Number of television stations owned and operated | station | 28 | ||||||
Percentage of U.S. households reached (over) | 37.00% | ||||||
Joint Sales Agreements | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Net revenue | $ | $ 16,000 | $ 11,500 | $ 42,500 | $ 34,200 |
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income (Numerator) | ||||
Net Income | $ 52,033 | $ 44,034 | $ 128,262 | $ 115,269 |
Net income attributable to noncontrolling interests | (1,188) | (779) | (3,858) | (1,945) |
Numerator for diluted earnings per common share available to common shareholders | $ 50,845 | $ 43,255 | $ 124,404 | $ 113,324 |
Shares (Denominator) | ||||
Weighted-average common shares outstanding (shares) | 93,948 | 95,002 | 94,595 | 95,146 |
Dilutive effect of stock-settled appreciation rights, restricted stock awards and outstanding stock options (shares) | 818 | 690 | 870 | 691 |
Weighted-average common and common equivalent shares outstanding (shares) | 94,766 | 95,692 | 95,465 | 95,837 |
Additional Disclosures | ||||
Potentially antidilutive dilutive securities excluded from calculation of diluted earnings per share (shares) | 525 | 200 | 525 | 200 |
RELATED PERSON TRANSACTIONS - Transactions with our Controlling Shareholders (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Feb. 29, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Lease Services | Entities owned by the controlling shareholders | |||||
Related Party Transaction [Line Items] | |||||
Lease payments made to entities | $ 1.3 | $ 1.3 | $ 3.8 | $ 3.9 | |
Charter Aircraft | Controlling shareholders | |||||
Related Party Transaction [Line Items] | |||||
Lease term | 30 months | ||||
Lease renewal term | 12 months | ||||
Charter Aircraft | Controlling shareholders | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Aircraft expenses | $ 0.3 | $ 0.4 | $ 1.0 | $ 1.0 |
RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Aug. 31, 2016
USD ($)
|
Apr. 30, 2016
USD ($)
|
Jan. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
renewal
|
Sep. 30, 2015
USD ($)
|
|
Related Party Transaction [Line Items] | |||||||
Net revenue | $ 693,835 | $ 548,404 | $ 1,939,258 | $ 1,607,346 | |||
Affiliated Entity | Cunningham | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement renewal period | 1 year | ||||||
Right to acquire capital stock | 100.00% | 100.00% | |||||
Remaining purchase price | $ 53,600 | $ 53,600 | |||||
Related party promissory note | $ 19,500 | ||||||
Loan receivable, interest rate | 5.00% | ||||||
Proceeds from sale of master control equipment | $ 700 | ||||||
Annual revenue from master control services | $ 200 | ||||||
Annual revenue for share service | $ 1,000 | ||||||
Affiliated Entity | Cunningham | LMA | |||||||
Related Party Transaction [Line Items] | |||||||
Number of additional renewal terms | renewal | 2 | ||||||
Agreement renewal period | 5 years | ||||||
Lease payments made to entities | $ 2,100 | 2,100 | $ 6,600 | 7,800 | |||
Affiliated Entity | Cunningham | LMA | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid | 3.00% | 3.00% | |||||
Amount used to determine annual LMA fees required to be paid | $ 4,700 | $ 4,700 | |||||
Annual increase in aggregate purchase price | 6.00% | 6.00% | |||||
Cunningham license related assets | Cunningham | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement renewal period | 8 years | ||||||
Amount received | $ 1,400 | 1,500 | $ 3,900 | 4,200 | |||
Net revenue | $ 29,400 | $ 25,800 | $ 83,800 | $ 74,800 |
RELATED PERSON TRANSACTIONS - Atlantic Automotive Corporation (Details) - Atlantic Automotive Corporation - Affiliated Entity $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
real_estate_venture
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
real_estate_venture
|
Sep. 30, 2015
USD ($)
|
|
Lease Services | ||||
Related Party Transaction [Line Items] | ||||
Annual rent | $ 0.3 | $ 0.3 | $ 0.8 | $ 0.9 |
Lease Services | Real estate ventures in Towson, MD | ||||
Related Party Transaction [Line Items] | ||||
Number of consolidated real estate ventures | real_estate_venture | 1 | 1 | ||
Maximum | Advertising time | ||||
Related Party Transaction [Line Items] | ||||
Amount received | $ 0.3 | $ 0.1 | $ 0.6 | $ 0.3 |
RELATED PERSON TRANSACTIONS - Leased Property by Real Estate Ventures (Details) - President and Chief Executive Officer |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
lease
real_estate_venture
restaurant
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
lease
real_estate_venture
restaurant
|
Sep. 30, 2015
USD ($)
|
|
Lease Services | ||||
Related Party Transaction [Line Items] | ||||
Payments for services (less than) | $ 100,000 | $ 100,000.0 | $ 100,000 | $ 100,000 |
Real estate ventures in Baltimore, MD | Lease Services | ||||
Related Party Transaction [Line Items] | ||||
Number of restaurants owned by a related party | restaurant | 3 | 3 | ||
Number of consolidated real estate ventures | real_estate_venture | 1 | 1 | ||
Number of Properties Subject to Ground Leases | lease | 1 | 1 | ||
Real estate ventures in Towson, MD | Lease Services | ||||
Related Party Transaction [Line Items] | ||||
Annual rent | $ 100,000 | 100,000 | $ 200,000 | 300,000 |
Maximum | Real estate ventures in Baltimore, MD | Lease Services | ||||
Related Party Transaction [Line Items] | ||||
Amount received | $ 200,000 | $ 200,000 | $ 500,000 | $ 500,000 |
SEGMENT DATA (Narrative) (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016
USD ($)
market
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
market
|
Sep. 30, 2015
USD ($)
|
|
Segment data | ||||
Number of markets | market | 81 | 81 | ||
Intercompany loans | $ | $ 226.5 | $ 226.0 | $ 226.5 | $ 226.0 |
Intercompany interest expense | $ | $ 6.1 | $ 6.1 | $ 18.3 | $ 16.9 |
Operating segments | Broadcast | ||||
Segment data | ||||
Number of markets | market | 81 | 81 |
SEGMENT DATA (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|||
Segment data | |||||||
Revenue | $ 693,835 | $ 548,404 | $ 1,939,258 | $ 1,607,346 | |||
Depreciation of property and equipment | 25,886 | 25,476 | 74,330 | 75,938 | |||
Amortization of definite-lived intangible assets and other assets | 47,807 | 40,014 | 137,197 | 119,439 | |||
Amortization of program contract costs and net realizable value adjustments | 32,441 | 29,841 | 96,722 | 90,014 | |||
General and administrative overhead expenses | 19,052 | 16,464 | 54,672 | 46,685 | |||
Research and development expenses | 745 | 4,803 | 3,055 | 11,555 | |||
Operating income (loss) | 153,994 | 99,606 | 369,407 | 298,493 | |||
Interest expense | 53,488 | 48,566 | 156,819 | 142,878 | |||
Income (loss) from equity investments | 1,423 | 252 | 2,789 | 5,405 | |||
Assets | [1] | 5,866,188 | 5,866,188 | $ 5,432,315 | |||
Broadcast | |||||||
Segment data | |||||||
Revenue | 635,559 | 525,529 | 1,790,561 | 1,542,943 | |||
Depreciation of property and equipment | 24,195 | 24,489 | 69,469 | 73,028 | |||
Amortization of definite-lived intangible assets and other assets | 38,717 | 37,601 | 117,038 | 112,724 | |||
Amortization of program contract costs and net realizable value adjustments | 32,441 | 29,841 | 96,722 | 90,014 | |||
General and administrative overhead expenses | 17,530 | 14,378 | 50,320 | 40,637 | |||
Research and development expenses | 0 | 0 | 0 | 0 | |||
Operating income (loss) | 158,666 | 109,231 | 402,236 | 323,336 | |||
Interest expense | 1,404 | 0 | 4,297 | 0 | |||
Income (loss) from equity investments | 0 | 0 | 0 | 0 | |||
Assets | 4,901,549 | 4,901,549 | |||||
Other | |||||||
Segment data | |||||||
Revenue | 58,276 | 22,875 | 148,697 | 64,403 | |||
Depreciation of property and equipment | 1,425 | 708 | 4,063 | 2,073 | |||
Amortization of definite-lived intangible assets and other assets | 9,090 | 2,413 | 20,159 | 6,715 | |||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | 0 | 0 | |||
General and administrative overhead expenses | 247 | 1,087 | 1,075 | 2,611 | |||
Research and development expenses | 745 | 4,803 | 3,055 | 11,555 | |||
Operating income (loss) | (3,077) | (7,653) | (28,699) | (20,498) | |||
Interest expense | 1,664 | 1,305 | 4,695 | 3,541 | |||
Income (loss) from equity investments | 611 | 252 | 414 | 5,405 | |||
Assets | 825,996 | 825,996 | |||||
Corporate | |||||||
Segment data | |||||||
Revenue | 0 | 0 | 0 | 0 | |||
Depreciation of property and equipment | 266 | 279 | 798 | 837 | |||
Amortization of definite-lived intangible assets and other assets | 0 | 0 | 0 | 0 | |||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | 0 | 0 | |||
General and administrative overhead expenses | 1,275 | 999 | 3,277 | 3,437 | |||
Research and development expenses | 0 | 0 | 0 | 0 | |||
Operating income (loss) | (1,595) | (1,972) | (4,130) | (4,345) | |||
Interest expense | 50,420 | 47,261 | 147,827 | 139,337 | |||
Income (loss) from equity investments | 812 | $ 0 | 2,375 | $ 0 | |||
Assets | $ 138,643 | $ 138,643 | |||||
|
FAIR VALUE MEASUREMENTS (Details) - USD ($) |
Sep. 30, 2016 |
Aug. 31, 2016 |
Aug. 30, 2016 |
Mar. 31, 2016 |
Mar. 23, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|---|---|
Level 2 | Carrying Value | Debt of variable interest entities | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | $ 24,069,000 | $ 26,682,000 | ||||
Level 2 | Carrying Value | Debt of other operating divisions | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 123,599,000 | 120,969,000 | ||||
Level 2 | Fair Value | Debt of variable interest entities | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 24,069,000 | 26,682,000 | ||||
Level 2 | Fair Value | Debt of other operating divisions | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | $ 123,599,000 | $ 120,969,000 | ||||
Senior Unsecured Notes | 6.375% Senior Unsecured Notes due 2021 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Interest rate | 6.375% | 6.375% | 6.375% | |||
Senior Unsecured Notes | 6.125% Senior Unsecured Notes due 2022 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Interest rate | 6.125% | 6.125% | ||||
Senior Unsecured Notes | 5.875% Senior Unsecured Notes due 2026 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Interest rate | 5.875% | 5.875% | 5.875% | |||
Debt issued | $ 350,000,000 | $ 350,000,000.0 | ||||
Senior Unsecured Notes | 5.625% Senior Unsecured Notes due 2024 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Interest rate | 5.625% | 5.625% | ||||
Senior Unsecured Notes | 5.375% Senior Unsecured Notes due 2021 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Interest rate | 5.375% | 5.375% | ||||
Senior Unsecured Notes | 5.125% Senior Unsecured Notes due 2027 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Interest rate | 5.125% | 5.125% | 5.125% | |||
Debt issued | $ 400,000,000 | $ 400,000,000.0 | ||||
Senior Unsecured Notes | Level 2 | Carrying Value | 6.375% Senior Unsecured Notes due 2021 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | $ 0 | $ 350,000,000 | ||||
Senior Unsecured Notes | Level 2 | Carrying Value | 6.125% Senior Unsecured Notes due 2022 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 500,000,000 | 500,000,000 | ||||
Senior Unsecured Notes | Level 2 | Carrying Value | 5.875% Senior Unsecured Notes due 2026 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 350,000,000 | 0 | ||||
Senior Unsecured Notes | Level 2 | Carrying Value | 5.625% Senior Unsecured Notes due 2024 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 550,000,000 | 550,000,000 | ||||
Senior Unsecured Notes | Level 2 | Carrying Value | 5.375% Senior Unsecured Notes due 2021 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 600,000,000 | 600,000,000 | ||||
Senior Unsecured Notes | Level 2 | Carrying Value | 5.125% Senior Unsecured Notes due 2027 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 400,000,000 | 0 | ||||
Senior Unsecured Notes | Level 2 | Fair Value | 6.375% Senior Unsecured Notes due 2021 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 0 | 367,325,000 | ||||
Senior Unsecured Notes | Level 2 | Fair Value | 6.125% Senior Unsecured Notes due 2022 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 526,910,000 | 512,500,000 | ||||
Senior Unsecured Notes | Level 2 | Fair Value | 5.875% Senior Unsecured Notes due 2026 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 364,000,000 | 0 | ||||
Senior Unsecured Notes | Level 2 | Fair Value | 5.625% Senior Unsecured Notes due 2024 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 563,750,000 | 539,000,000 | ||||
Senior Unsecured Notes | Level 2 | Fair Value | 5.375% Senior Unsecured Notes due 2021 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 623,250,000 | 605,658,000 | ||||
Senior Unsecured Notes | Level 2 | Fair Value | 5.125% Senior Unsecured Notes due 2027 | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 392,356,000 | 0 | ||||
Term Loan | Level 2 | Carrying Value | Term Loan A | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 282,573,000 | 313,620,000 | ||||
Term Loan | Level 2 | Carrying Value | Term Loan B | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 1,366,117,000 | 1,376,007,000 | ||||
Term Loan | Level 2 | Fair Value | Term Loan A | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | 283,280,000 | 308,916,000 | ||||
Term Loan | Level 2 | Fair Value | Term Loan B | ||||||
FAIR VALUE MEASUREMENTS: | ||||||
Debt fair value disclosure | $ 1,378,636,000 | $ 1,365,461,000 |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Narrative) (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Debt | $ 4,206.3 |
Sinclair Television Group, Inc. | |
Debt Instrument [Line Items] | |
Amount of debt guaranteed by parent | $ 4,078.7 |
Sinclair Television Group, Inc. | 5.375% Senior Unsecured Notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 5.375% |
Sinclair Television Group, Inc. | 5.625% Senior Unsecured Notes, due 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 5.625% |
Sinclair Television Group, Inc. | 6.125% Senior Unsecured Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 6.125% |
Sinclair Television Group, Inc. | 5.875% Senior Unsecured Notes due 2026 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Sinclair Television Group, Inc. | 5.125% Senior Notes, due 2027 | |
Debt Instrument [Line Items] | |
Interest rate | 5.125% |
Sinclair Television Group, Inc. | 6.375% Senior Notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 6.375% |
Sinclair Broadcast Group, Inc. | |
Debt Instrument [Line Items] | |
Amount of debt guaranteed by parent | $ 4,030.9 |
Sinclair Broadcast Group, Inc. | 5.375% Senior Unsecured Notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 5.375% |
Sinclair Broadcast Group, Inc. | 5.625% Senior Unsecured Notes, due 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 5.625% |
Sinclair Broadcast Group, Inc. | 6.125% Senior Unsecured Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 6.125% |
Sinclair Broadcast Group, Inc. | 5.875% Senior Unsecured Notes due 2026 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|---|---|
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||
Cash | $ 104,545 | $ 149,972 | $ 119,389 | $ 17,682 | |||
Accounts receivable | 519,662 | 424,608 | |||||
Other current assets | 165,883 | 127,183 | |||||
Total current assets | 790,090 | 701,763 | |||||
Property and equipment, net | 713,088 | 717,137 | |||||
Investment in consolidated subsidiaries | 0 | 0 | |||||
Goodwill | 1,989,578 | 1,931,093 | |||||
Indefinite-lived intangible assets | 153,125 | 132,465 | |||||
Definite-lived intangible assets | 1,983,326 | 1,751,570 | |||||
Other long-term assets | 236,981 | 198,287 | |||||
Total assets | [1] | 5,866,188 | 5,432,315 | ||||
Accounts payable and accrued liabilities | 291,213 | 251,313 | |||||
Current portion of long-term debt | 165,238 | 164,184 | |||||
Current portion of affiliate long-term debt | 3,599 | 3,166 | |||||
Other current liabilities | 139,695 | 116,340 | |||||
Total current liabilities | 599,745 | 535,003 | |||||
Long-term debt | 4,022,437 | 3,669,160 | |||||
Affiliate long-term debt | 15,036 | 17,850 | |||||
Other liabilities | 742,304 | 710,624 | |||||
Total liabilities | [1] | 5,379,522 | 4,932,637 | ||||
Total Sinclair Broadcast Group equity (deficit) | 516,516 | 525,810 | |||||
Noncontrolling interests in consolidated subsidiaries | (29,850) | (26,132) | |||||
Total liabilities and equity | 5,866,188 | 5,432,315 | |||||
Reportable legal entities | Sinclair Broadcast Group, Inc. | |||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||
Cash | 0 | 0 | 0 | 0 | |||
Accounts receivable | 0 | 0 | |||||
Other current assets | 3,371 | 3,648 | |||||
Total current assets | 3,371 | 3,648 | |||||
Property and equipment, net | 2,086 | 2,884 | |||||
Investment in consolidated subsidiaries | 483,523 | 497,262 | |||||
Goodwill | 0 | 0 | |||||
Indefinite-lived intangible assets | 0 | 0 | |||||
Definite-lived intangible assets | 0 | 0 | |||||
Other long-term assets | 52,116 | 52,128 | |||||
Total assets | 541,096 | 555,922 | |||||
Accounts payable and accrued liabilities | 102 | 104 | |||||
Current portion of long-term debt | 0 | 0 | |||||
Current portion of affiliate long-term debt | 1,804 | 1,651 | |||||
Other current liabilities | 0 | 0 | |||||
Total current liabilities | 1,906 | 1,755 | |||||
Long-term debt | 0 | 0 | |||||
Affiliate long-term debt | 479 | 1,857 | |||||
Other liabilities | 22,196 | 26,500 | |||||
Total liabilities | 24,581 | 30,112 | |||||
Total Sinclair Broadcast Group equity (deficit) | 516,515 | 525,810 | |||||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |||||
Total liabilities and equity | 541,096 | 555,922 | |||||
Reportable legal entities | Sinclair Television Group, Inc. | |||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||
Cash | 81,671 | 115,771 | 97,996 | 3,394 | |||
Accounts receivable | 0 | 1,775 | |||||
Other current assets | 6,457 | 5,172 | |||||
Total current assets | 88,128 | 122,718 | |||||
Property and equipment, net | 17,710 | 20,336 | |||||
Investment in consolidated subsidiaries | 3,696,504 | 3,430,434 | |||||
Goodwill | 0 | 0 | |||||
Indefinite-lived intangible assets | 0 | 0 | |||||
Definite-lived intangible assets | 0 | 0 | |||||
Other long-term assets | 782,850 | 673,915 | |||||
Total assets | 4,585,192 | 4,247,403 | |||||
Accounts payable and accrued liabilities | 55,484 | 49,428 | |||||
Current portion of long-term debt | 55,500 | 57,640 | |||||
Current portion of affiliate long-term debt | 0 | 0 | |||||
Other current liabilities | 0 | 0 | |||||
Total current liabilities | 110,984 | 107,068 | |||||
Long-term debt | 3,951,479 | 3,594,218 | |||||
Affiliate long-term debt | 0 | 0 | |||||
Other liabilities | 31,612 | 28,866 | |||||
Total liabilities | 4,094,075 | 3,730,152 | |||||
Total Sinclair Broadcast Group equity (deficit) | 491,117 | 517,251 | |||||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |||||
Total liabilities and equity | 4,585,192 | 4,247,403 | |||||
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | |||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||
Cash | 4,550 | 235 | 259 | 1,749 | |||
Accounts receivable | 483,686 | 390,142 | |||||
Other current assets | 132,250 | 99,118 | |||||
Total current assets | 620,486 | 489,495 | |||||
Property and equipment, net | 566,633 | 559,042 | |||||
Investment in consolidated subsidiaries | 4,180 | 4,179 | |||||
Goodwill | 1,985,299 | 1,926,814 | |||||
Indefinite-lived intangible assets | 137,416 | 114,841 | |||||
Definite-lived intangible assets | 1,816,553 | 1,602,454 | |||||
Other long-term assets | 105,247 | 110,507 | |||||
Total assets | 5,235,814 | 4,807,332 | |||||
Accounts payable and accrued liabilities | 211,362 | 179,156 | |||||
Current portion of long-term debt | 1,803 | 1,611 | |||||
Current portion of affiliate long-term debt | 1,569 | 1,311 | |||||
Other current liabilities | 123,020 | 103,627 | |||||
Total current liabilities | 337,754 | 285,705 | |||||
Long-term debt | 31,521 | 32,743 | |||||
Affiliate long-term debt | 12,977 | 14,240 | |||||
Other liabilities | 1,173,805 | 1,060,211 | |||||
Total liabilities | 1,556,057 | 1,392,899 | |||||
Total Sinclair Broadcast Group equity (deficit) | 3,679,757 | 3,414,433 | |||||
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |||||
Total liabilities and equity | 5,235,814 | 4,807,332 | |||||
Reportable legal entities | Non- Guarantor Subsidiaries | |||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||
Cash | 18,324 | 33,966 | 21,134 | 12,539 | |||
Accounts receivable | 37,237 | 33,949 | |||||
Other current assets | 27,434 | 23,278 | |||||
Total current assets | 82,995 | 91,193 | |||||
Property and equipment, net | 130,309 | 143,667 | |||||
Investment in consolidated subsidiaries | 0 | 0 | |||||
Goodwill | 4,279 | 4,279 | |||||
Indefinite-lived intangible assets | 15,709 | 17,624 | |||||
Definite-lived intangible assets | 227,351 | 206,975 | |||||
Other long-term assets | 160,180 | 140,910 | |||||
Total assets | 620,823 | 604,648 | |||||
Accounts payable and accrued liabilities | 28,427 | 27,462 | |||||
Current portion of long-term debt | 107,935 | 106,358 | |||||
Current portion of affiliate long-term debt | 2,258 | 456 | |||||
Other current liabilities | 16,675 | 12,713 | |||||
Total current liabilities | 155,295 | 146,989 | |||||
Long-term debt | 39,437 | 42,199 | |||||
Affiliate long-term debt | 384,174 | 366,042 | |||||
Other liabilities | 177,155 | 171,102 | |||||
Total liabilities | 756,061 | 726,332 | |||||
Total Sinclair Broadcast Group equity (deficit) | (101,024) | (91,703) | |||||
Noncontrolling interests in consolidated subsidiaries | (34,214) | (29,981) | |||||
Total liabilities and equity | 620,823 | 604,648 | |||||
Eliminations | |||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||
Cash | 0 | 0 | $ 0 | $ 0 | |||
Accounts receivable | (1,261) | (1,258) | |||||
Other current assets | (3,629) | (4,033) | |||||
Total current assets | (4,890) | (5,291) | |||||
Property and equipment, net | (3,650) | (8,792) | |||||
Investment in consolidated subsidiaries | (4,184,207) | (3,931,875) | |||||
Goodwill | 0 | 0 | |||||
Indefinite-lived intangible assets | 0 | 0 | |||||
Definite-lived intangible assets | (60,578) | (57,859) | |||||
Other long-term assets | (863,412) | (779,173) | |||||
Total assets | (5,116,737) | (4,782,990) | |||||
Accounts payable and accrued liabilities | (4,162) | (4,837) | |||||
Current portion of long-term debt | 0 | (1,425) | |||||
Current portion of affiliate long-term debt | (2,032) | (252) | |||||
Other current liabilities | 0 | 0 | |||||
Total current liabilities | (6,194) | (6,514) | |||||
Long-term debt | 0 | 0 | |||||
Affiliate long-term debt | (382,594) | (364,289) | |||||
Other liabilities | (662,464) | (576,055) | |||||
Total liabilities | (1,051,252) | (946,858) | |||||
Total Sinclair Broadcast Group equity (deficit) | (4,069,849) | (3,839,981) | |||||
Noncontrolling interests in consolidated subsidiaries | 4,364 | 3,849 | |||||
Total liabilities and equity | $ (5,116,737) | $ (4,782,990) | |||||
|
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Net revenue | $ 693,835 | $ 548,404 | $ 1,939,258 | $ 1,607,346 |
Media program and production expenses | 242,880 | 187,173 | 702,377 | 540,554 |
Selling, general and administrative | 145,724 | 122,086 | 424,841 | 357,773 |
Depreciation, amortization and other operating expenses | 151,237 | 139,539 | 442,633 | 410,526 |
Total operating expenses | 539,841 | 448,798 | 1,569,851 | 1,308,853 |
Operating income | 153,994 | 99,606 | 369,407 | 298,493 |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Interest expense | (53,488) | (48,566) | (156,819) | (142,878) |
Loss from extinguishment of debt | (23,699) | 0 | (23,699) | 0 |
Other income (expense) | 2,212 | 204 | 5,144 | 6,625 |
Total other expense, net | (74,975) | (48,362) | (175,374) | (136,253) |
Income tax benefit (provision) | (26,986) | (7,210) | (65,771) | (46,971) |
NET INCOME | 52,033 | 44,034 | 128,262 | 115,269 |
Net income attributable to the noncontrolling interests | (1,188) | (779) | (3,858) | (1,945) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 50,845 | 43,255 | 124,404 | 113,324 |
Comprehensive income | 52,033 | 44,044 | 128,262 | 115,447 |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Net revenue | 0 | 0 | 0 | 0 |
Media program and production expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative | 1,275 | 930 | 3,277 | 3,432 |
Depreciation, amortization and other operating expenses | 266 | 266 | 798 | 799 |
Total operating expenses | 1,541 | 1,196 | 4,075 | 4,231 |
Operating income | (1,541) | (1,196) | (4,075) | (4,231) |
Equity in earnings of consolidated subsidiaries | 51,113 | 43,480 | 124,536 | 114,176 |
Interest expense | (56) | (93) | (192) | (301) |
Loss from extinguishment of debt | 0 | 0 | ||
Other income (expense) | 1,157 | 957 | 3,386 | 3,250 |
Total other expense, net | 52,214 | 44,344 | 127,730 | 117,125 |
Income tax benefit (provision) | 172 | 107 | 749 | 430 |
NET INCOME | 50,845 | 43,255 | 124,404 | 113,324 |
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 50,845 | 43,255 | 124,404 | 113,324 |
Comprehensive income | 50,845 | 44,044 | 124,404 | 115,447 |
Reportable legal entities | Sinclair Television Group, Inc. | ||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Net revenue | 0 | 0 | 0 | 0 |
Media program and production expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative | 16,969 | 14,386 | 53,189 | 40,598 |
Depreciation, amortization and other operating expenses | 3,257 | 1,040 | 5,666 | 2,624 |
Total operating expenses | 20,226 | 15,426 | 58,855 | 43,222 |
Operating income | (20,226) | (15,426) | (58,855) | (43,222) |
Equity in earnings of consolidated subsidiaries | 114,060 | 88,687 | 289,593 | 238,635 |
Interest expense | (50,364) | (45,784) | (147,635) | (134,626) |
Loss from extinguishment of debt | (23,699) | (23,699) | ||
Other income (expense) | 469 | (407) | 736 | (116) |
Total other expense, net | 40,466 | 42,496 | 118,995 | 103,893 |
Income tax benefit (provision) | 34,334 | 20,235 | 75,470 | 60,435 |
NET INCOME | 54,574 | 47,305 | 135,610 | 121,106 |
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 54,574 | 47,305 | 135,610 | 121,106 |
Comprehensive income | 54,574 | 47,315 | 135,610 | 121,132 |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Net revenue | 655,778 | 515,097 | 1,828,407 | 1,514,173 |
Media program and production expenses | 234,474 | 185,371 | 679,337 | 535,098 |
Selling, general and administrative | 124,352 | 102,984 | 360,793 | 302,962 |
Depreciation, amortization and other operating expenses | 115,527 | 105,427 | 340,974 | 316,934 |
Total operating expenses | 474,353 | 393,782 | 1,381,104 | 1,154,994 |
Operating income | 181,425 | 121,315 | 447,303 | 359,179 |
Equity in earnings of consolidated subsidiaries | 51 | 100 | 170 | 0 |
Interest expense | (1,117) | (1,140) | (3,417) | (3,481) |
Loss from extinguishment of debt | 0 | 0 | ||
Other income (expense) | (27) | 3 | 583 | 269 |
Total other expense, net | (1,093) | (1,037) | (2,664) | (3,212) |
Income tax benefit (provision) | (64,535) | (30,126) | (150,436) | (113,403) |
NET INCOME | 115,797 | 90,152 | 294,203 | 242,564 |
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 115,797 | 90,152 | 294,203 | 242,564 |
Comprehensive income | 115,797 | 90,152 | 294,203 | 242,713 |
Reportable legal entities | Non- Guarantor Subsidiaries | ||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Net revenue | 63,877 | 53,845 | 178,164 | 153,757 |
Media program and production expenses | 33,556 | 20,272 | 88,378 | 61,949 |
Selling, general and administrative | 3,153 | 3,819 | 7,641 | 10,919 |
Depreciation, amortization and other operating expenses | 32,571 | 34,336 | 96,560 | 92,667 |
Total operating expenses | 69,280 | 58,427 | 192,579 | 165,535 |
Operating income | (5,403) | (4,582) | (14,415) | (11,778) |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Interest expense | (8,256) | (7,721) | (24,258) | (21,898) |
Loss from extinguishment of debt | 0 | 0 | ||
Other income (expense) | 613 | (349) | 439 | 3,222 |
Total other expense, net | (7,643) | (8,070) | (23,819) | (18,676) |
Income tax benefit (provision) | 3,043 | 2,574 | 8,446 | 5,567 |
NET INCOME | (10,003) | (10,078) | (29,788) | (24,887) |
Net income attributable to the noncontrolling interests | (1,180) | (799) | (3,341) | (1,999) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | (11,183) | (10,877) | (33,129) | (26,886) |
Comprehensive income | (10,003) | (10,078) | (29,788) | (24,885) |
Eliminations | ||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Net revenue | (25,820) | (20,538) | (67,313) | (60,584) |
Media program and production expenses | (25,150) | (18,470) | (65,338) | (56,493) |
Selling, general and administrative | (25) | (33) | (59) | (138) |
Depreciation, amortization and other operating expenses | (384) | (1,530) | (1,365) | (2,498) |
Total operating expenses | (25,559) | (20,033) | (66,762) | (59,129) |
Operating income | (261) | (505) | (551) | (1,455) |
Equity in earnings of consolidated subsidiaries | (165,224) | (132,267) | (414,299) | (352,811) |
Interest expense | 6,305 | 6,172 | 18,683 | 17,428 |
Loss from extinguishment of debt | 0 | 0 | ||
Other income (expense) | 0 | 0 | 0 | 0 |
Total other expense, net | (158,919) | (126,095) | (395,616) | (335,383) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
NET INCOME | (159,180) | (126,600) | (396,167) | (336,838) |
Net income attributable to the noncontrolling interests | (8) | 20 | (517) | 54 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | (159,188) | (126,580) | (396,684) | (336,784) |
Comprehensive income | $ (159,180) | $ (127,389) | $ (396,167) | $ (338,960) |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | $ 330,260 | $ 313,721 |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (68,601) | (72,476) |
Acquisition of businesses, net of cash acquired | (425,856) | (15,514) |
Purchase of alarm monitoring contracts | (29,143) | (31,340) |
Proceeds from sale of assets | 16,396 | 23,650 |
Investments in equity and cost method investees | (34,224) | (43,068) |
Loans to affiliates | (19,500) | 0 |
Other, net | 3,401 | 11,215 |
Net cash flows used in investing activities | (557,527) | (127,533) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 1,011,312 | 379,481 |
Repayments of notes payable, commercial bank financing and capital leases | (653,987) | (375,104) |
Dividends paid on Class A and Class B Common Stock | (49,667) | (47,104) |
Repurchase of outstanding Class A Common Stock | (101,164) | (28,823) |
Increase (decrease) in intercompany payables | 0 | 0 |
Other, net | (24,654) | (12,931) |
Net cash flows from (used in) financing activities | 181,840 | (84,481) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (45,427) | 101,707 |
CASH AND CASH EQUIVALENTS, beginning of period | 149,972 | 17,682 |
CASH AND CASH EQUIVALENTS, end of period | 104,545 | 119,389 |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (4,060) | (6,476) |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (7) | 0 |
Acquisition of businesses, net of cash acquired | 0 | 0 |
Purchase of alarm monitoring contracts | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Investments in equity and cost method investees | (2,945) | 0 |
Loans to affiliates | 0 | |
Other, net | 1,714 | 3,776 |
Net cash flows used in investing activities | (1,238) | 3,776 |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 0 |
Repayments of notes payable, commercial bank financing and capital leases | 0 | (473) |
Dividends paid on Class A and Class B Common Stock | (49,667) | (47,104) |
Repurchase of outstanding Class A Common Stock | (101,164) | (28,823) |
Increase (decrease) in intercompany payables | 158,574 | 82,410 |
Other, net | (2,445) | (3,310) |
Net cash flows from (used in) financing activities | 5,298 | 2,700 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | 0 | 0 |
Reportable legal entities | Sinclair Television Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (152,724) | (66,929) |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (3,626) | (7,687) |
Acquisition of businesses, net of cash acquired | 0 | 0 |
Purchase of alarm monitoring contracts | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Investments in equity and cost method investees | (10,840) | (7,486) |
Loans to affiliates | (19,500) | |
Other, net | (1,828) | 539 |
Net cash flows used in investing activities | (35,794) | (14,634) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 995,000 | 349,559 |
Repayments of notes payable, commercial bank financing and capital leases | (636,547) | (370,011) |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | (189,022) | 200,108 |
Other, net | (15,013) | (3,491) |
Net cash flows from (used in) financing activities | 154,418 | 176,165 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (34,100) | 94,602 |
CASH AND CASH EQUIVALENTS, beginning of period | 115,771 | 3,394 |
CASH AND CASH EQUIVALENTS, end of period | 81,671 | 97,996 |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 451,804 | 390,101 |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (61,758) | (64,693) |
Acquisition of businesses, net of cash acquired | (415,481) | (15,514) |
Purchase of alarm monitoring contracts | 0 | 0 |
Proceeds from sale of assets | 7,263 | 23,650 |
Investments in equity and cost method investees | (34) | (27) |
Loans to affiliates | 0 | |
Other, net | (86) | 530 |
Net cash flows used in investing activities | (470,096) | (56,054) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 0 |
Repayments of notes payable, commercial bank financing and capital leases | (1,171) | (937) |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | 22,603 | (335,447) |
Other, net | 1,175 | 847 |
Net cash flows from (used in) financing activities | 22,607 | (335,537) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 4,315 | (1,490) |
CASH AND CASH EQUIVALENTS, beginning of period | 235 | 1,749 |
CASH AND CASH EQUIVALENTS, end of period | 4,550 | 259 |
Reportable legal entities | Non- Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 17,138 | (21,156) |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (3,842) | (1,603) |
Acquisition of businesses, net of cash acquired | (10,375) | 0 |
Purchase of alarm monitoring contracts | (29,143) | (31,340) |
Proceeds from sale of assets | 9,133 | 0 |
Investments in equity and cost method investees | (20,405) | (35,555) |
Loans to affiliates | 0 | |
Other, net | 3,601 | 6,370 |
Net cash flows used in investing activities | (51,031) | (62,128) |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 16,312 | 29,922 |
Repayments of notes payable, commercial bank financing and capital leases | (16,269) | (3,683) |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | 26,764 | 72,757 |
Other, net | (8,556) | (7,117) |
Net cash flows from (used in) financing activities | 18,251 | 91,879 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (15,642) | 8,595 |
CASH AND CASH EQUIVALENTS, beginning of period | 33,966 | 12,539 |
CASH AND CASH EQUIVALENTS, end of period | 18,324 | 21,134 |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 18,102 | 18,181 |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | 632 | 1,507 |
Acquisition of businesses, net of cash acquired | 0 | 0 |
Purchase of alarm monitoring contracts | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Investments in equity and cost method investees | 0 | 0 |
Loans to affiliates | 0 | |
Other, net | 0 | 0 |
Net cash flows used in investing activities | 632 | 1,507 |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 0 |
Repayments of notes payable, commercial bank financing and capital leases | 0 | 0 |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | (18,919) | (19,828) |
Other, net | 185 | 140 |
Net cash flows from (used in) financing activities | (18,734) | (19,688) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, beginning of period | 0 | 0 |
CASH AND CASH EQUIVALENTS, end of period | $ 0 | $ 0 |
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