CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2019

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	238	$	9	$	1,152	$	—		$	1,399
Accounts receivable, net	—		—		530		607		—			1,137
Other current assets	6		19		178		190		(26		)	367
Total current assets	6		257		717		1,949		(26		)	2,903
Property and equipment, net	1		31		631		97		(20		)	740
Investment in consolidated subsidiaries	2,263		3,601		—		—		(5,864		)	—
Goodwill	—		—		2,120		1,928		—			4,048
Indefinite-lived intangible assets	—		—		144		14		—			158
Definite-lived intangible assets, net	—		—		1,481		7,671		(48		)	9,104
Other long-term assets	75		1,601		289		601		(1,740		)	826
Total assets	$	2,345	$	5,490	$	5,382	$	12,260	$	(7,698	)	$	17,779
Accounts payable and accrued liabilities	$	136	$	73	$	233	$	214	$	(26	)	$	630
Current portion of long-term debt	—		27		4		41		(1		)	71
Other current liabilities	1		4		147		240		—			392
Total current liabilities	137		104		384		495		(27		)	1,093
Long-term debt	700		4,360		33		8,333		(1,034		)	12,392
Other long-term liabilities	13		49		1,364		749		(918		)	1,257
Total liabilities	850		4,513		1,781		9,577		(1,979		)	14,742
Redeemable noncontrolling interests	—		—		—		1,362		—			1,362
Total Sinclair Broadcast Group equity (deficit)	1,495		977		3,601		1,145		(5,723		)	1,495
Noncontrolling interests in consolidated subsidiaries	—		—		—		176		4			180
Total liabilities and equity (deficit)	$	2,345	$	5,490	$	5,382	$	12,260	$	(7,698	)	$	17,779

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2018

(in millions)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash and cash equivalents	$	—	$	962	$	19	$	79		$	—		$	1,060
Accounts receivable, net	—		—		531		68			—			599
Other current assets	3		6		103		37			(24		)	125
Total current assets	3		968		653		184			(24		)	1,784
Property and equipment, net	1		32		594		70			(14		)	683
Investment in consolidated subsidiaries	1,604		3,654		4		—			(5,262		)	—
Goodwill	—		—		2,120		4			—			2,124
Indefinite-lived intangible assets	—		—		144		14			—			158
Definite-lived intangible assets, net	—		—		1,609		70			(52		)	1,627
Other long-term assets	31		851		119		166			(971		)	196
Total assets	$	1,639	$	5,505	$	5,243	$	508		$	(6,323	)	$	6,572
Accounts payable and accrued liabilities	$	—	$	78	$	236	$	40		$	(24	)	$	330
Current portion of long-term debt	—		31		4		8			—			43
Other current liabilities	—		1		144		55			—			200
Total current liabilities	—		110		384		103			(24		)	573
Long-term debt	—		3,776		37		383			(346		)	3,850
Other long-term liabilities	—		40		1,169		173			(833		)	549
Total liabilities	—		3,926		1,590		659			(1,203		)	4,972
Total Sinclair Broadcast Group equity (deficit)	1,639		1,579		3,653		(108		)	(5,124		)	1,639
Noncontrolling interests in consolidated subsidiaries	—		—		—		(43		)	4			(39		)
Total liabilities and equity (deficit)	$	1,639	$	5,505	$	5,243	$	508		$	(6,323	)	$	6,572

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, 2019

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	9		$	702		$	445		$	(31	)	$	1,125
Media programming and production expenses	—			—			312			262			(14		)	560
Selling, general and administrative	122			24			162			124			(10		)	422
Depreciation, amortization and other operating expenses	—			(6		)	55			104			(4		)	149
Total operating expenses	122			18			529			490			(28		)	1,131
Operating (loss) income	(122		)	(9		)	173			(45		)	(3		)	(6		)
Equity in earnings of consolidated subsidiaries	35			202			—			—			(237		)	—
Interest expense	(1		)	(55		)	(1		)	(76		)	4			(129		)
Other income (expense)	1			(2		)	(12		)	6			(2		)	(9		)
Total other income (expense)	35			145			(13		)	(70		)	(235		)	(138		)
Income tax benefit	27			4			43			21			—			95
Net (loss) income	(60		)	140			203			(94		)	(238		)	(49		)
Net income attributable to redeemable noncontrolling interests	—			—			—			(11		)	—			(11		)
Net (loss) income attributable to Sinclair Broadcast Group	$	(60	)	$	140		$	203		$	(105	)	$	(238	)	$	(60	)
Comprehensive (loss) income	$	(60	)	$	140		$	203		$	(94	)	$	(238	)	$	(49	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2018

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	714		$	77		$	(25	)	$	766
Media programming and production expenses	—			—			289			36			(21		)	304
Selling, general and administrative	3			32			150			5			(1		)	189
Depreciation, amortization and other operating expenses	—			1			77			39			(2		)	115
Total operating expenses	3			33			516			80			(24		)	608
Operating (loss) income	(3		)	(33		)	198			(3		)	(1		)	158
Equity in earnings of consolidated subsidiaries	65			155			—			—			(220		)	—
Interest expense	—			(74		)	(1		)	(5		)	4			(76		)
Other income (expense)	1			(6		)	(16		)	1			—			(20		)
Total other income (expense)	66			75			(17		)	(4		)	(216		)	(96		)
Income tax benefit (provision)	1			28			(25		)	(1		)	—			3
Net income (loss)	64			70			156			(8		)	(217		)	65
Net income attributable to the noncontrolling interests	—			—			—			(1		)	—			(1		)
Net income (loss) attributable to Sinclair Broadcast Group	$	64		$	70		$	156		$	(9	)	$	(217	)	$	64
Comprehensive income (loss)	$	64		$	70		$	156		$	(8	)	$	(217	)	$	65

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	9		$	2,064		$	616		$	(71	)	$	2,618
Media programming and production expenses	—			—			931			325			(41		)	1,215
Selling, general and administrative	143			82			481			133			(12		)	827
Depreciation, amortization and other operating expenses	—			(3		)	203			193			(10		)	383
Total operating expenses	143			79			1,615			651			(63		)	2,425
Operating (loss) income	(143		)	(70		)	449			(35		)	(8		)	193
Equity in earnings of consolidated subsidiaries	116			410			—			—			(526		)	—
Interest expense	(2		)	(160		)	(2		)	(85		)	12			(237		)
Other income (expense)	2			3			(35		)	5			(1		)	(26		)
Total other income (expense)	116			253			(37		)	(80		)	(515		)	(263		)
Income tax benefit	31			33			3			21			—			88
Net income (loss)	4			216			415			(94		)	(523		)	18
Net income attributable to redeemable noncontrolling interests	—			—			—			(11		)	—			(11		)
Net income attributable to the noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income (loss) attributable to Sinclair Broadcast Group	$	4		$	216		$	415		$	(108	)	$	(523	)	$	4
Comprehensive income (loss)	$	4		$	216		$	415		$	(94	)	$	(523	)	$	18

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,020		$	207		$	(65	)	$	2,162
Media programming and production expenses	—			—			849			101			(56		)	894
Selling, general and administrative	8			80			440			14			(1		)	541
Depreciation, amortization and other operating expenses	—			4			168			163			(5		)	330
Total operating expenses	8			84			1,457			278			(62		)	1,765
Operating (loss) income	(8		)	(84		)	563			(71		)	(3		)	397
Equity in earnings of consolidated subsidiaries	140			454			—			—			(594		)	—
Interest expense	—			(233		)	(3		)	(14		)	12			(238		)
Other income (expense)	1			—			(43		)	—			—			(42		)
Total other income (expense)	141			221			(46		)	(14		)	(582		)	(280		)
Income tax benefit (provision)	2			65			(58		)	12			—			21
Net income (loss)	135			202			459			(73		)	(585		)	138
Net income attributable to the noncontrolling interests	—			—			—			(3		)	—			(3		)
Net income (loss) attributable to Sinclair Broadcast Group	$	135		$	202		$	459		$	(76	)	$	(585	)	$	135
Comprehensive income (loss)	$	135		$	202		$	459		$	(73	)	$	(585	)	$	138

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2019

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(4	)	$	(188	)	$	538		$	157		$	(9	)	$	494
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2		)	(99		)	(4		)	9			(96		)
Acquisition of businesses, net of cash acquired	—			—			—			(9,006		)	—			(9,006		)
Purchases of investments	(2		)	(32		)	(42		)	(351		)	—			(427		)
Distributions from investments	—			—			—			4			—			4
Spectrum repack reimbursements	—			—			50			—			—			50
Other, net	—			(2		)	—			—			—			(2		)
Net cash flows (used in) from investing activities	(2		)	(36		)	(91		)	(9,357		)	9			(9,477		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			1,294			—			8,159			—			9,453
Repayments of notes payable, commercial bank financing and finance leases	—			(706		)	(3		)	(26		)	20			(715		)
Debt issuance costs	—			(15		)	—			(167		)	—			(182		)
Proceeds from the issuance of redeemable subsidiary preferred equity, net	—			—			—			985			—			985
Dividends paid on Class A and Class B Common Stock	(55		)	—			—			—			—			(55		)
Dividends paid on redeemable subsidiary preferred equity	—			—			—			(10		)	—			(10		)
Repurchase of outstanding Class A Common Stock	(125		)	—			—			—			—			(125		)
Distributions to noncontrolling interests	—			—			—			(30		)	—			(30		)
Increase (decrease) in intercompany payables	186			(1,074		)	(454		)	1,362			(20		)	—
Other, net	—			1			—			—			—			1
Net cash flows from (used in) financing activities	6			(500		)	(457		)	10,273			—			9,322
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			(724		)	(10		)	1,073			—			339
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			962			19			79			—			1,060
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	238		$	9		$	1,152		$	—		$	1,399

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(8	)	$	(232	)	$	622		$	(19	)	$	10		$	373
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(5		)	(73		)	(3		)	3			(78		)
Purchases of investments	(2		)	(5		)	(21		)	(2		)	—			(30		)
Distributions from investments	6			—			—			17			—			23
Spectrum repack reimbursements	—			—			2			—			—			2
Other, net	—			(4		)	—			—			—			(4		)
Net cash flows from (used in) investing activities	4			(14		)	(92		)	12			3			(87		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			—			—			3			—			3
Repayments of notes payable, commercial bank financing and finance leases	—			(140		)	(3		)	(11		)	—			(154		)
Dividends paid on Class A and Class B Common Stock	(55		)	—			—			—			—			(55		)
Repurchase of outstanding Class A Common Stock	(46		)	—			—			—			—			(46		)
Proceeds from the issuance of subsidiary equity	—			—			—			—			—			—
Distributions to noncontrolling interests	—			—			—			(7		)	—			(7		)
Increase (decrease) in intercompany payables	103			688			(839		)	61			(13		)	—
Other, net	2			—			—			(1		)	—			1
Net cash flows from (used in) financing activities	4			548			(842		)	45			(13		)	(258		)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			302			(312		)	38			—			28
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			645			324			27			—			996
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	947		$	12		$	65		$	—		$	1,024