CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

19. 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 STG's Bank Credit Agreement, 5.625% Notes, 5.875% Notes, 5.125% Notes, 5.500% Notes and, until they were redeemed, STG's 5.375% Notes and 6.125% Notes. STG’s 5.625% Notes were publicly registered in a Registration Statement on Form S-3ASR (No. 333-203483), effective April 17, 2015, and, until they were redeemed, STG’s 6.125% Notes were publicly registered in a Registration Statement on Form S-4 (No. 333-187724), effective April 16, 2013. Our Class A Common Stock and Class B Common Stock as of December 31, 2019, were obligations or securities of SBG and not obligations or securities of STG.  SBG is a guarantor under STG's Bank Credit Agreement, 5.625% Notes, 5.875% Notes, 5.125% Notes, 5.500% Notes and, until they were redeemed, STG's 5.375% Notes and 6.125% Notes. As of December 31, 2019, our consolidated total debt of $12,438 million included $4,433 million of debt related to STG and its subsidiaries of which SBG guaranteed $4,395 million.

SBG, KDSM, LLC, a wholly-owned subsidiary of SBG, and STG’s wholly-owned subsidiaries (guarantor subsidiaries), have fully and unconditionally guaranteed, subject to certain customary automatic release provisions, all of STG’s obligations.  Those guarantees are joint and several.  There are certain contractual restrictions on the ability of SBG, STG or KDSM, LLC to obtain funds from their subsidiaries in the form of dividends or loans.

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

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

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2019

(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	$	—	$	357	$	3	$	973	$	—		1,333
Accounts receivable, net	—		—		561		571		—			1,132
Other current assets	5		41		264		188		(50		)	448
Total current assets	5		398		828		1,732		(50		)	2,913
Property and equipment, net	1		31		659		96		(22		)	765
Investment in consolidated subsidiaries	2,270		3,558		—		—		(5,828		)	—
Goodwill	—		—		2,091		2,625		—			4,716
Indefinite-lived intangible assets	—		—		144		14		—			158
Definite-lived intangible assets	—		—		1,426		6,598		(47		)	7,977
Other long-term assets	82		1,611		279		618		(1,749		)	841
Total assets	$	2,358	$	5,598	$	5,427	$	11,683	$	(7,696	)	$	17,370
Accounts payable and accrued liabilities	$	142	$	109	$	286	$	296	$	(51	)	$	782
Current portion of long-term debt	—		27		4		41		(1		)	71
Other current liabilities	—		1		133		147		—			281
Total current liabilities	142		137		423		484		(52		)	1,134
Long-term debt	700		4,348		32		8,317		(1,030		)	12,367
Other liabilities	13		53		1,418		547		(934		)	1,097
Total liabilities	855		4,538		1,873		9,348		(2,016		)	14,598
Redeemable noncontrolling interests	—		—		—		1,078		—			1,078
Total Sinclair Broadcast Group equity	1,503		1,060		3,554		1,069		(5,684		)	1,502
Noncontrolling interests in consolidated subsidiaries	—		—		—		188		4			192
Total liabilities, redeemable noncontrolling interests, and equity	$	2,358	$	5,598	$	5,427	$	11,683	$	(7,696	)	$	17,370

CONDENSED CONSOLIDATED 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	—		—		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	$	237	$	40		$	(25	)	$	330
Current portion of long-term debt	—		31		4		8			—			43
Other current liabilities	—		1		144		55			—			200
Total current liabilities	—		110		385		103			(25		)	573
Long-term debt	—		3,776		36		383			(345		)	3,850
Other liabilities	—		40		1,169		173			(833		)	549
Total liabilities	—		3,926		1,590		659			(1,203		)	4,972
Total Sinclair Broadcast Group equity	1,639		1,579		3,653		(108		)	(5,124		)	1,639
Noncontrolling interests in consolidated subsidiaries	—		—		—		(43		)	4			(39		)
Total liabilities and equity	$	1,639	$	5,505	$	5,243	$	508		$	(6,323	)	$	6,572

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2019

(In millions)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	35		$	2,841		$	1,487		$	(123	)	$	4,240
Media programming and production expenses	—			—			1,238			894			(59		)	2,073
Selling, general and administrative	147			147			663			202			(40		)	1,119
Depreciation, amortization and other operating expenses	—			(20		)	278			334			(14		)	578
Total operating expenses	147			127			2,179			1,430			(113		)	3,770
Operating (loss) income	(147		)	(92		)	662			57			(10		)	470
Equity in earnings of consolidated subsidiaries	165			577			—			—			(742		)	—
Interest expense	(5		)	(216		)	(4		)	(216		)	19			(422		)
Other income (expense)	2			(7		)	(53		)	24			(5		)	(39		)
Total other income (expense)	162			354			(57		)	(192		)	(728		)	(461		)
Income tax benefit (provision)	32			66			(21		)	19			—			96
Net income (loss)	47			328			584			(116		)	(738		)	105
Net income attributable to the redeemable noncontrolling interests	—			—			—			(48		)	—			(48		)
Net income attributable to the noncontrolling interests	—			—			—			(10		)	—			(10		)
Net income (loss) attributable to Sinclair Broadcast Group	$	47		$	328		$	584		$	(174	)	$	(738	)	$	47
Comprehensive income (loss)	$	47		$	327		$	584		$	(116	)	$	(738	)	$	104

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2018

(In millions)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,856		$	293		$	(94	)	$	3,055
Media programming and production expenses	—			—			1,131			141			(81		)	1,191
Selling, general and administrative	10			100			613			20			(2		)	741
Depreciation, amortization and other operating expenses	—			5			258			207			(7		)	463
Total operating expenses	10			105			2,002			368			(90		)	2,395
Operating (loss) income	(10		)	(105		)	854			(75		)	(4		)	660
Equity in earnings of consolidated subsidiaries	348			724			—			—			(1,072		)	—
Interest expense	—			(285		)	(4		)	(18		)	15			(292		)
Other income (expense)	2			(2		)	(58		)	—			—			(58		)
Total other income (expense)	350			437			(62		)	(18		)	(1,057		)	(350		)
Income tax benefit (provision)	2			90			(62		)	6			—			36
Net income (loss)	342			422			730			(87		)	(1,061		)	346
Net income attributable to the noncontrolling interests	—			—			—			(5		)	—			(5		)
Net income (loss) attributable to Sinclair Broadcast Group	$	342		$	422		$	730		$	(92	)	$	(1,061	)	$	341
Comprehensive income (loss)	$	347		$	422		$	730		$	(87	)	$	(1,065	)	$	347

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2017

(In millions)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	2,507		$	210		$	(81	)	$	2,636
Media programming and production expenses	—			—			1,013			124			(73		)	1,064
Selling, general and administrative	9			103			522			15			(2		)	647
Depreciation, amortization and other operating expenses	1			6			132			51			(2		)	188
Total operating expenses	10			109			1,667			190			(77		)	1,899
Operating (loss) income	(10		)	(109		)	840			20			(4		)	737
Equity in earnings of consolidated subsidiaries	579			794			—			—			(1,373		)	—
Interest expense	—			(205		)	(4		)	(22		)	19			(212		)
Other income (expense)	2			5			(6		)	(7		)	—			(6		)
Total other income (expense)	581			594			(10		)	(29		)	(1,354		)	(218		)
Income tax benefit (provision)	5			100			(30		)	—			—			75
Net income (loss)	576			585			800			(9		)	(1,358		)	594
Net income attributable to the noncontrolling interests	—			—			—			(18		)	—			(18		)
Net income (loss) attributable to Sinclair Broadcast Group	$	576		$	585		$	800		$	(27	)	$	(1,358	)	$	576
Comprehensive income (loss)	$	593		$	584		$	800		$	(9	)	$	(1,375	)	$	593

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2019

(In million)

	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	$	(5	)	$	(210	)	$	734		$	396		$	1		$	916
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(4		)	(152		)	(11		)	11			(156		)
Acquisition of businesses, net of cash acquired	—			—			—			(8,999		)	—			(8,999		)
Proceeds from the sale of assets	—			—			—			8			—			8
Purchases of investments	(6		)	(39		)	(54		)	(353		)	—			(452		)
Distributions from investments	—			3			—			4			—			7
Spectrum repack reimbursements	—			—			62			—			—			62
Other, net	—			—			(1		)	1			—			—
Net cash flows (used in) from investing activities	(6		)	(40		)	(145		)	(9,350		)	11			(9,530		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			1,793			—			8,163			—			9,956
Repayments of notes payable, commercial bank financing and finance leases	—			(1,213		)	(4		)	(19		)	—			(1,236		)
Proceeds from the issuance of redeemable subsidiary preferred equity, net	—			—			—			985			—			985
Dividends paid on Class A and Class B Common Stock	(73		)	—			—			—			—			(73		)
Dividends paid on redeemable subsidiary preferred equity	—			—			—			(33		)	—			(33		)
Repurchases of outstanding Class A Common Stock	(145		)	—			—			—			—			(145		)
Redemption of redeemable subsidiary preferred equity	—			—			—			(297		)	—			(297		)
Debt issuance costs	—			(25		)	—			(174		)	—			(199		)
Distributions to noncontrolling interests	—			—			—			(32		)	—			(32		)
Increase (decrease) in intercompany payables	227			(905		)	(601		)	1,291			(12		)	—
Other, net	2			(5		)	—			(36		)	—			(39		)
Net cash flows from (used in) financing activities	11			(355		)	(605		)	9,848			(12		)	8,887
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			(605		)	(16		)	894			—			273
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			962			19			79			—			1,060
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	357		$	3		$	973		$	—		$	1,333

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2018

(In millions)

	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	$	(9	)	$	(253	)	$	936		$	(40	)	$	13		647
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(7		)	(98		)	(4		)	4			(105		)
Spectrum repack reimbursements	—			—			6			—			—			6
Proceeds from the sale of assets	—			—			2			—			—			2
Purchases of investments	(2		)	(14		)	(29		)	(3		)	—			(48		)
Distributions from investments	6			—			—			18			—			24
Other, net	—			—			3			—			—			3
Net cash flows from (used in) investing activities	4			(21		)	(116		)	11			4			(118		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			—			—			4			—			4
Repayments of notes payable, commercial bank financing and finance leases	—			(148		)	(4		)	(15		)	—			(167		)
Debt issuance costs	—			—			—			(1		)	—			(1		)
Dividends paid on Class A and Class B Common Stock	(74		)	—			—			—			—			(74		)
Repurchase of outstanding Class A Common Stock	(221		)	—			—			—			—			(221		)
Distributions to noncontrolling interests	—			—			—			(9		)	—			(9		)
Increase (decrease) in intercompany payables	297			738			(1,117		)	100			(18		)	—
Other, net	3			—			(3		)	2			1			3
Net cash flows from (used in) financing activities	5			590			(1,124		)	81			(17		)	(465		)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			316			(304		)	52			—			64
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			646			323			27			—			996
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	962		$	19		$	79		$	—		$	1,060

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2017

(In millions)

	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	)	$	(181	)	$	600		$	12		$	9		$	432
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(15		)	(68		)	(3		)	2			(84		)
Acquisition of businesses, net of cash acquired	—			(8		)	(263		)	—			—			(271		)
Proceeds from the sale of assets	—			—			—			195			—			195
Purchases of investments	(1		)	(8		)	(21		)	(33		)	—			(63		)
Distributions from investments	6			20			—			6			—			32
Spectrum auction proceeds	—			—			311			—			—			311
Other, net	—			—			—			(6		)	—			(6		)
Net cash flows from (used in) investing activities	5			(11		)	(41		)	159			2			114
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—			159			—			7			—			166
Repayments of notes payable, commercial bank financing and finance leases	(2		)	(214		)	(3		)	(121		)	—			(340		)
Debt issuance costs	—			(1		)	—			—			—			(1		)
Proceeds from sale of Class A Common Stock	488			—			—			—			—			488
Dividends paid on Class A and Class B Common Stock	(71		)	—			—			—			—			(71		)
Repurchase of outstanding Class A Common Stock	(30		)	—			—			—			—			(30		)
Distributions to noncontrolling interests	—			—			—			(22		)	—			(22		)
(Decrease) increase in intercompany payables	(382		)	661			(243		)	(25		)	(11		)	—
Other, net	—			1			(1		)	—			—			—
Net cash flows from (used in) financing activities	3			606			(247		)	(161		)	(11		)	190
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	—			414			312			10			—			736
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	—			232			11			17			—			260
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—		$	646		$	323		$	27		$	—		$	996