XML 75 R19.htm IDEA: XBRL DOCUMENT v3.20.1
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
 3 Months Ended
Mar. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
CONDENSED CONSOLIDATING 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 STG's Bank Credit Agreement, 5.625% Notes, 5.875% Notes, 5.125% Notes, and 5.500% Notes (collectively, the Notes are referred to as, the STG Notes), and, until they were redeemed, STG's 5.375% Notes and 6.125% Notes. STG’s 5.625% Notes were publicly registered on 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 on 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 March 31, 2020, were obligations or securities of SBG and not obligations or securities of STG.  SBG is a guarantor under STG 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 March 31, 2020, our consolidated total debt, net of deferred financing costs and debt discounts, of $13,302 million included $5,079 million related to STG and its subsidiaries of which SBG guaranteed $5,037 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 CONSOLIDATING BALANCE SHEET
AS OF MARCH 31, 2020
(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
$
—

 
$
840

 
$
3

 
$
499

 
$
—

 
$
1,342

Accounts receivable, net
—

 
1

 
538

 
561

 
—

 
1,100

Other current assets
2

 
46

 
258

 
373

 
(52
)
 
627

Total current assets
2

 
887

 
799

 
1,433

 
(52
)
 
3,069

 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment, net
1

 
35

 
678

 
98

 
(26
)
 
786

 
 
 
 
 
 
 
 
 
 
 
 
Investment in consolidated subsidiaries
2,120

 
3,595

 
—

 
—

 
(5,715
)
 
—

Goodwill
—

 
—

 
2,091

 
2,625

 
—

 
4,716

Indefinite-lived intangible assets
—

 
—

 
144

 
14

 
—

 
158

Definite-lived intangible assets, net
—

 
—

 
1,384

 
6,476

 
(46
)
 
7,814

Other long-term assets
79

 
1,604

 
277

 
529

 
(1,672
)
 
817

Total assets
$
2,202

 
$
6,121

 
$
5,373

 
$
11,175

 
$
(7,511
)
 
$
17,360

 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
28

 
$
98

 
$
256

 
$
197

 
$
(53
)
 
$
526

Current portion of long-term debt
—

 
27

 
5

 
40

 
(1
)
 
71

Other current liabilities
1

 
1

 
117

 
124

 
—

 
243

Total current liabilities
29

 
126

 
378

 
361

 
(54
)
 
840

 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
700

 
4,991

 
37

 
8,529

 
(1,026
)
 
13,231

Other long-term liabilities
13

 
48

 
1,364

 
550

 
(864
)
 
1,111

Total liabilities
742

 
5,165

 
1,779

 
9,440

 
(1,944
)
 
15,182

 
 
 
 
 
 
 
 
 
 
 
 
Redeemable noncontrolling interests
—

 
—

 
—

 
522

 
—

 
522

Total Sinclair Broadcast Group equity
1,460

 
956

 
3,594

 
1,020

 
(5,571
)
 
1,459

Noncontrolling interests in consolidated subsidiaries
—

 
—

 
—

 
193

 
4

 
197

Total liabilities, redeemable noncontrolling interests, and equity
$
2,202

 
$
6,121

 
$
5,373

 
$
11,175

 
$
(7,511
)
 
$
17,360


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2020
(in millions) (unaudited)
  
 
Sinclair
Broadcast
Group, Inc.
 
Sinclair
Television
Group, Inc.
 
Guarantor
Subsidiaries
and KDSM,
LLC
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Sinclair
Consolidated
Net revenue
$
—

 
$
24

 
$
739

 
$
893

 
$
(47
)
 
$
1,609

 
 
 
 
 
 
 
 
 
 
 
 
Media programming and production expenses
—

 
—

 
328

 
516

 
(16
)
 
828

Selling, general and administrative expenses
3

 
44

 
168

 
67

 
(23
)
 
259

Depreciation, amortization and other operating expenses
—

 
1

 
51

 
147

 
(4
)
 
195

Total operating expenses
3

 
45

 
547

 
730

 
(43
)
 
1,282

 
 
 
 
 
 
 
 
 
 
 
 
Operating (loss) income
(3
)
 
(21
)
 
192

 
163

 
(4
)
 
327

 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of consolidated subsidiaries
129

 
173

 
—

 
—

 
(302
)
 
—

Interest expense
(3
)
 
(55
)
 
(1
)
 
(127
)
 
6

 
(180
)
Other (expense) income
(2
)
 
(2
)
 
(9
)
 
8

 
(3
)
 
(8
)
Total other income (expense)
124

 
116

 
(10
)
 
(119
)
 
(299
)
 
(188
)
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (provision)
2

 
29

 
(6
)
 
(13
)
 
—

 
12

Net income
123

 
124

 
176

 
31

 
(303
)
 
151

Net income attributable to the redeemable noncontrolling interests
—

 
—

 
—

 
(20
)
 
—

 
(20
)
Net income attributable to the noncontrolling interests
—

 
—

 
—

 
(8
)
 
—

 
(8
)
Net income attributable to Sinclair Broadcast Group
$
123

 
$
124

 
$
176

 
$
3

 
$
(303
)
 
$
123

Comprehensive income
$
123

 
$
124

 
$
176

 
$
31

 
$
(303
)
 
$
151


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 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
$
—

 
$
—

 
$
656

 
$
83

 
$
(17
)
 
$
722

 
 
 
 
 
 
 
 
 
 
 
 
Media programming and production expenses
—

 
—

 
301

 
30

 
(12
)
 
319

Selling, general and administrative expenses
2

 
26

 
156

 
5

 
(1
)
 
188

Depreciation, amortization and other operating expenses


 
1

 
78

 
44

 
(2
)
 
121

Total operating expenses
2

 
27

 
535

 
79

 
(15
)
 
628

 
 
 
 
 
 
 
 
 
 
 
 
Operating (loss) income
(2
)
 
(27
)
 
121

 
4

 
(2
)
 
94

 
 
 
 
 
 
 
 
 
 
 
 
Equity in earnings of consolidated subsidiaries
24

 
89

 
—

 
—

 
(113
)
 
—

Interest expense
—

 
(53
)
 
(1
)
 
(4
)
 
4

 
(54
)
Other income (expense)
—

 
1

 
(12
)
 
(1
)
 
—

 
(12
)
Total other income (expense)
24

 
37

 
(13
)
 
(5
)
 
(109
)
 
(66
)
 
 
 
 
 
 
 
 
 
 
 
 
Income tax benefit (provision)
—

 
12

 
(17
)
 
—

 
—

 
(5
)
Net income (loss)
22

 
22

 
91

 
(1
)
 
(111
)
 
23

Net income attributable to the noncontrolling interests
—

 
—

 
—

 
(2
)
 
1

 
(1
)
Net income (loss) attributable to Sinclair Broadcast Group
$
22

 
$
22

 
$
91

 
$
(3
)
 
$
(110
)
 
$
22

Comprehensive income (loss)
$
23

 
$
22

 
$
91

 
$
(1
)
 
$
(112
)
 
$
23


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2020
(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
$
(115
)
 
$
(40
)
 
$
154

 
$
(37
)
 
$
(1
)
 
$
(39
)
 
 
 
 
 
 
 
 
 
 
 
 
NET CASH FLOWS USED IN INVESTING ACTIVITIES
 
 
 
 
 
 
 
 
 
 
 
Acquisition of property and equipment
—

 
(5
)
 
(41
)
 
(4
)
 
4

 
(46
)
Spectrum repack reimbursements
—

 
—

 
24

 
—

 
—

 
24

Proceeds from the sale of assets
—

 
—

 
18

 
—

 
—

 
18

Purchases of investments
(1
)
 
(2
)
 
(12
)
 
(10
)
 
—

 
(25
)
Distributions from investments
1

 
—

 
—

 
5

 
—

 
6

Net cash flows used in investing activities
—

 
(7
)
 
(11
)
 
(9
)
 
4

 
(23
)
 
 
 
 
 
 
 
 
 
 
 
 
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
 

 
 

 
 

 
 

 
 

 
 

Proceeds from notes payable and commercial bank financing
—

 
648

 
—

 
225

 
—

 
873

Repayments of notes payable, commercial bank financing and finance leases
—

 
(7
)
 
(1
)
 
(12
)
 
—

 
(20
)
Repurchase of outstanding Class A Common Stock
(176
)
 
—

 
—

 
—

 
—

 
(176
)
Dividends paid on Class A and Class B Common Stock
(18
)
 
—

 
—

 
—

 
—

 
(18
)
Redemption of redeemable subsidiary preferred equity
—

 
—

 
—

 
(198
)
 
—

 
(198
)
Distributions to noncontrolling interests
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Distributions to redeemable noncontrolling interests
—

 
—

 
—

 
(378
)
 
—

 
(378
)
Increase (decrease) in intercompany payables
310

 
(111
)
 
(142
)
 
(54
)
 
(3
)
 
—

Other, net
(1
)
 
—

 
—

 
(8
)
 
—

 
(9
)
Net cash flows from (used in) financing activities
115

 
530

 
(143
)
 
(428
)
 
(3
)
 
71

 
 
 
 
 
 
 
 
 
 
 
 
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
—

 
483

 
—

 
(474
)
 
—

 
9

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period
—

 
357

 
3

 
973

 
—

 
1,333

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period
$
—

 
$
840

 
$
3

 
$
499

 
$
—

 
$
1,342