CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: (Tables)

9 Months Ended

Sep. 30, 2012

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2012

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—		$	11,410		$	488		$	32,727		$	—		$	44,625
Accounts and other receivables	157			232			145,299			6,599			(256		)	152,031
Other current assets	869			2,460			69,822			5,030			(284		)	77,897
Assets held for sale	—			—			14,605			—			—			14,605
Total current assets	1,026			14,102			230,214			44,356			(540		)	289,158
Property and equipment, net	7,087			8,775			255,299			105,216			(10,692		)	365,685
Investment in consolidated subsidiaries	—			1,146,971			—			—			(1,146,971		)	—
Restricted cash — long-term	—			42,651			223			—			—			42,874
Other long-term assets	82,606			359,808			64,528			98,657			(416,213		)	189,386
Total other long-term assets	82,606			1,549,430			64,751			98,657			(1,563,184		)	232,260
Acquired intangible assets	—			—			1,302,843			89,799			(34,209		)	1,358,433
Total assets	$	90,719		$	1,572,307		$	1,853,107		$	338,028		$	(1,608,625	)	$	2,245,536
Accounts payable and accrued liabilities	$	10		$	76,731		$	70,996		$	8,127		$	(2,323	)	$	153,541
Current portion of long-term debt	466			27,428			746			15,937			—			44,577
Current portion of affiliate long-term debt	1,102			—			2,192			112			(112		)	3,294
Other current liabilities	—			—			98,868			2,633			—			101,501
Liabilities held for sale	—			—			325			—			—			325
Total current liabilities	1,578			104,159			173,127			26,809			(2,435		)	303,238
Long-term debt	12,585			1,562,282			36,927			53,089			—			1,664,883
Affiliate long-term debt	6,560			—			7,475			262,583			(262,583		)	14,035
Dividends in excess of investment in consolidated subsidiaries	122,198			—			—			—			(122,198		)	—
Other liabilities	9,547			2,041			489,331			65,640			(250,795		)	315,764
Total liabilities	152,468			1,668,482			706,860			408,121			(638,011		)	2,297,920
Common stock	812			—			10			—			(10		)	812
Additional paid-in capital	622,133			(40,576		)	676,204			58,998			(694,626		)	622,133
Accumulated (deficit) earnings	(680,092		)	(52,663		)	472,239			(138,999		)	(280,577		)	(680,092		)
Accumulated other comprehensive (loss) income	(4,602		)	(2,936		)	(2,206		)	543			4,599			(4,602		)
Total Sinclair Broadcast Group (deficit) equity	(61,749		)	(96,175		)	1,146,247			(79,458		)	(970,614		)	(61,749		)
Noncontrolling interests in consolidated subsidiaries	—			—			—			9,365			—			9,365
Total liabilities and equity (deficit)	$	90,719		$	1,572,307		$	1,853,107		$	338,028		$	(1,608,625	)	$	2,245,536

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2011

(in thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—		$	188		$	313		$	12,466		$	—		$	12,967
Accounts and other receivables	60			348			126,590			6,276			(107		)	133,167
Other current assets	2,430			2,561			55,855			3,021			(284		)	63,583
Total current assets	2,490			3,097			182,758			21,763			(391		)	209,717
Property and equipment, net	8,234			7,783			171,749			104,825			(11,070		)	281,521
Investment in consolidated subsidiaries	—			575,848			—			—			(575,848		)	—
Restricted cash	—			58,503			223			—			—			58,726
Other long-term assets	86,186			353,929			17,209			99,630			(417,961		)	138,993
Total other long-term assets	86,186			988,280			17,432			99,630			(993,809		)	197,719
Acquired intangible assets	—			—			826,175			83,387			(27,102		)	882,460
Total assets	$	96,910		$	999,160		$	1,198,114		$	309,605		$	(1,032,372	)	$	1,571,417
Accounts payable and accrued liabilities	$	1,499		$	30,888		$	51,119		$	7,555		$	(2,491	)	$	88,570
Current portion of long-term debt	420			14,450			589			22,736			—			38,195
Current portion of affiliate long-term debt	998			—			2,016			210			(210		)	3,014
Other current liabilities	—			—			65,431			372			—			65,803
Total current liabilities	2,917			45,338			119,155			30,873			(2,701		)	195,582
Long-term debt	12,811			1,055,446			37,502			42,512			—			1,148,271
Affiliate long-term debt	7,405			—			9,140			246,552			(246,552		)	16,545
Dividends in excess of investment in consolidated subsidiaries	143,857			—			—			—			(143,857		)	—
Other liabilities	51,095			2,222			457,003			58,222			(246,161		)	322,381
Total liabilities	218,085			1,103,006			622,800			378,159			(639,271		)	1,682,779
Common stock	809			—			10			—			(10		)	809
Additional paid-in capital	617,375			7,755			264,413			52,710			(324,878		)	617,375
Accumulated (deficit) earnings	(734,511		)	(108,558		)	313,269			(131,527		)	(73,184		)	(734,511		)
Accumulated other comprehensive (loss) income	(4,848		)	(3,043		)	(2,378		)	450			4,971			(4,848		)
Total Sinclair Broadcast Group shareholders’ (deficit) equity	(121,175		)	(103,846		)	575,314			(78,367		)	(393,101		)	(121,175		)
Noncontrolling interests in consolidated subsidiaries	—			—			—			9,813			—			9,813
Total liabilities and equity (deficit)	$	96,910		$	999,160		$	1,198,114		$	309,605		$	(1,032,372	)	$	1,571,417

Schedule of condensed consolidating statement of operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	248,306		$	14,364		$	(2,181	)	$	260,489
Program and production	—			278			64,039			(1		)	(2,349		)	61,967
Selling, general and administrative	746			13,157			37,155			908			(76		)	51,890
Depreciation, amortization and other operating expenses	382			618			54,738			12,508			(171		)	68,075
Total operating expenses	1,128			14,053			155,932			13,415			(2,596		)	181,932
Operating (loss) income	(1,128		)	(14,053		)	92,374			949			415			78,557
Equity in earnings of consolidated subsidiaries	26,435			50,171			—			—			(76,606		)	—
Interest expense	(341		)	(32,560		)	(1,291		)	(6,352		)	5,250			(35,294		)
Other income (expense)	869			43			40			1,597			(83		)	2,466
Total other income (expense)	26,963			17,654			(1,251		)	(4,755		)	(71,439		)	(32,828		)
Income tax benefit (provision)	326			19,872			(39,456		)	105			—			(19,153		)
Income (loss) from discontinued operations	84			(68		)	(240		)	—			—			(224		)
Net income (loss)	26,245			23,405			51,427			(3,701		)	(71,024		)	26,352
Net loss attributable to the noncontrolling interests	—			—			—			(107		)	—			(107		)
Net income (loss) attributable to Sinclair Broadcast Group	$	26,245		$	23,405		$	51,427		$	(3,808	)	$	(71,024	)	$	26,245
Comprehensive income (loss)	$	26,409		$	23,462		$	51,427		$	(3,808	)	$	(71,081	)	$	26,409

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	169,673		$	13,583		$	(2,214	)	$	181,042
Program and production	—			331			43,062			83			(1,983		)	41,493
Selling, general and administrative	505			5,178			30,546			1,058			(157		)	37,130
Depreciation, amortization and other operating expenses	397			121			38,432			11,200			(138		)	50,012
Total operating expenses	902			5,630			112,040			12,341			(2,278		)	128,635
Operating (loss) income	(902		)	(5,630		)	57,633			1,242			64			52,407
Equity in earnings of consolidated subsidiaries	19,456			35,862			—			—			(55,318		)	—
Interest expense	(355		)	(21,942		)	(1,228		)	(6,154		)	5,216			(24,463		)
Other income (expense)	1,563			5,285			(5,343		)	928			(61		)	2,372
Total other income (expense)	20,664			19,205			(6,571		)	(5,226		)	(50,163		)	(22,091		)
Income tax (provision) benefit	(523		)	3,894			(14,457		)	211			—			(10,875		)
Loss from discontinued operations	—			(110		)	—			—			—			(110		)
Net income (loss)	19,239			17,359			36,605			(3,773		)	(50,099		)	19,331
Net loss attributable to the noncontrolling interests	—			—			—			(93		)	—			(93		)
Net income (loss) attributable to Sinclair Broadcast Group	$	19,239		$	17,359		$	36,605		$	(3,866	)	$	(50,099	)	$	19,238
Comprehensive income (loss)	$	19,372		$	17,400		$	36,605		$	(3,866	)	$	(50,139	)	$	19,372

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	699,175		$	44,179		$	(6,537	)	$	736,817
Program and production	—			291			191,318			158			(6,520		)	185,247
Selling, general and administrative	2,117			38,720			103,389			2,999			(283		)	146,942
Depreciation, amortization and other operating expenses	1,148			1,282			152,766			39,636			(447		)	194,385
Total operating expenses	3,265			40,293			447,473			42,793			(7,250		)	526,574
Operating (loss) income	(3,265		)	(40,293		)	251,702			1,386			713			210,243
Equity in earnings of consolidated subsidiaries	86,991			156,249			—			—			(243,240		)	—
Interest expense	(999		)	(84,277		)	(3,695		)	(18,651		)	15,621			(92,001		)
Other income (expense)	2,192			53			85			7,751			(340		)	9,741
Total other income (expense)	88,184			72,025			(3,610		)	(10,900		)	(227,959		)	(82,260		)
Income tax benefit (provision)	745			38,414			(88,511		)	7,141			—			(42,211		)
Loss from discontinued operations	—			(202		)	(12		)	—			—			(214		)
Net income (loss)	85,664			69,944			159,569			(2,373		)	(227,246		)	85,558
Net loss attributable to the noncontrolling interests	—			—			—			106			—			106
Net income (loss) attributable to Sinclair Broadcast Group	$	85,664		$	69,944		$	159,569		$	(2,267	)	$	(227,246	)	$	85,664
Comprehensive income (loss)	$	85,804		$	70,190		$	159,569		$	(2,267	)	$	(227,492	)	$	85,804

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	521,280		$	37,958		$	(6,727	)	$	552,511
Program and production	—			958			131,677			254			(6,134		)	126,755
Selling, general and administrative	1,830			18,962			90,440			2,738			(349		)	113,621
Depreciation, amortization and other operating expenses	1,205			404			117,409			31,412			(414		)	150,016
Total operating expenses	3,035			20,324			339,526			34,404			(6,897		)	390,392
Operating (loss) income	(3,035		)	(20,324		)	181,754			3,554			170			162,119
Equity in earnings of consolidated subsidiaries	57,906			102,960			—			—			(160,866		)	—
Interest expense	(2,934		)	(69,463		)	(3,717		)	(17,851		)	15,401			(78,564		)
Gain on sales of securities	—			—			—			391			(391		)	—
Other (expense) income	(793		)	16,047			(15,205		)	1,610			(278		)	1,381
Total other income (expense)	54,179			49,544			(18,922		)	(15,850		)	(146,134		)	(77,183		)
Income tax benefit (provision)	1,953			22,647			(57,278		)	977			—			(31,701		)
Loss from discontinued operations	—			(300		)	—			—			—			(300		)
Net income (loss)	53,097			51,567			105,554			(11,319		)	(145,964		)	52,935
Net loss attributable to the noncontrolling interests	—			—			—			161			—			161
Net income (loss) attributable to Sinclair Broadcast Group	$	53,097		$	51,567		$	105,554		$	(11,158	)	$	(145,964	)	$	53,096
Comprehensive income (loss)	$	53,057		$	51,689		$	105,554		$	(11,158	)	$	(146,085	)	$	53,057

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012

(in thousands) (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	$	(460	)	$	(75,408	)	$	228,829		$	9,428		$	915		$	163,304
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2,458		)	(25,624		)	(2,075		)	—			(30,157		)
Payments for acquisitions of television stations	—			—			(590,917		)	—			—			(590,917		)
Purchase of alarm monitoring contracts	—			—			—			(7,343		)	—			(7,343		)
Decrease in restricted cash	—			15,849			—			—			—			15,849
Distributions from investments	836			—			—			8,678			—			9,514
Investment in equity and cost method investees	—			—			—			(6,176		)	—			(6,176		)
Proceeds from insurance settlement	—			—			32			—			—			32
Proceeds from sales of assets	—			—			31			—			—			31
Loans to affiliates	(236		)	—			—			—			—			(236		)
Proceeds from loans to affiliates	140			—			—			—			—			140
Net cash flows from (used in) investing activities	740			13,391			(616,478		)	(6,916		)	—			(609,263		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			596,275			—			19,432			—			615,707
Repayments of notes payable, commercial bank financing and capital leases	(308		)	(79,077		)	(458		)	(16,002		)	—			(95,845		)
Proceeds from share based awards	327			—			—			—			—			327
Dividends paid on Class A and Class B Common Stock	(31,646		)	—			—			—			401			(31,245		)
Payments for deferred financing costs	—			(8,364		)	—			—			—			(8,364		)
Distributions to noncontrolling interests	—			—			—			(734		)	—			(734		)
Repayment of notes and capital leases to affiliates	(740		)	—			(1,489		)	—			—			(2,229		)
Increase (decrease) in intercompany payables	32,087			(435,595		)	389,771			15,053			(1,316		)	—
Net cash flows (used in) from financing activities	(280		)	73,239			387,824			17,749			(915		)	477,617
NET INCREASE IN CASH AND CASH EQUIVALENTS	—			11,222			175			20,261			—			31,658
CASH AND CASH EQUIVALENTS, beginning of period	—			188			313			12,466			—			12,967
CASH AND CASH EQUIVALENTS, end of period	$	—		$	11,410		$	488		$	32,727		$	—		$	44,625

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011

(in thousands) (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	$	(14,407	)	$	(47,986	)	$	189,301		$	3,366		$	(1,924	)	$	128,350
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(403		)	(25,126		)	(1,265		)	—			(26,794		)
Acquisition of intangibles	—			—			—			(242		)	—			(242		)
Purchase of alarm monitoring contracts	—			—			—			(6,930		)	—			(6,930		)
Increase in restricted cash	—			(14,943		)	—			—			—			(14,943		)
Dividends and distributions from equity and cost method investments	—			—			—			2,632			—			2,632
Investment in equity and cost method investees	(2,000		)	—			—			(7,414		)	—			(9,414		)
Purchase of investments	—			—			—			(4,820		)	—			(4,820		)
Proceeds from insurance settlement	—			—			1,736			—			—			1,736
Proceeds from sales of assets	—			—			56			10			—			66
Proceeds from sale of securities	—			—			—			1,808			(1,808		)	—
Proceeds from sale of equity investment	—			—			—			1,166			—			1,166
Loans to affiliates	(143		)	—			—			—			—			(143		)
Proceeds from loans to affiliates	152			—			—			—			—			152
Net cash flows used in investing activities	(1,991		)	(15,346		)	(23,334		)	(15,055		)	(1,808		)	(57,534		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			124,719			—			11,630			—			136,349
Repayments of notes payable, commercial bank financing and capital leases	(57,022		)	(60,976		)	(313		)	(16,839		)	—			(135,150		)
Proceeds from exercise of stock options, including excess tax benefits of share based payments	1,730			—			—			—			—			1,730
Dividends paid on Class A and Class B Common Stock	(29,105		)	—			—			—			169			(28,936		)
Payments for deferred financing costs	—			(4,299		)	—			(66		)	—			(4,365		)
Proceeds from Class A Common Stock sold by variable interest entity	—			—			—			—			1,808			1,808
Noncontrolling interests distributions	—			—			—			(346		)	—			(346		)
Repayment of notes and capital leases to affiliates	(645		)	—			(1,868		)	—			—			(2,513		)
Increase (decrease) in intercompany payables	101,440			44,507			(164,355		)	16,653			1,755			—
Net cash flows from (used in) financing activities	16,398			103,951			(166,536		)	11,032			3,732			(31,423		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			40,619			(569		)	(657		)	—			39,393
CASH AND CASH EQUIVALENTS, beginning of period	—			5,071			1,022			15,881			—			21,974
CASH AND CASH EQUIVALENTS, end of period	$	—		$	45,690		$	453		$	15,224		$	—		$	61,367