CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: (Tables)

9 Months Ended

Sep. 30, 2013

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	194,539	$	16,911	$	17,544		$	—		$	228,994
Accounts and other receivables	86		1,733		239,971		9,620			(1,356		)	250,054
Other current assets	2,487		8,538		81,134		12,446			(1,971		)	102,634
Assets held for sale	—		—		5,900		—			—			5,900
Total current assets	2,573		204,810		343,916		39,610			(3,327		)	587,582
Property and equipment, net	5,284		11,008		380,973		123,359			(7,242		)	513,382
Investment in consolidated subsidiaries	378,899		2,098,135		2,783		—			(2,479,817		)	—
Restricted cash — long-term	—		38,933		222		2,102			—			41,257
Other long-term assets	80,396		474,993		78,519		118,092			(492,074		)	259,926
Total other long-term assets	459,295		2,612,061		81,524		120,194			(2,971,891		)	301,183
Goodwill and other intangible assets	—		—		2,113,626		176,899			(74,999		)	2,215,526
Total assets	$	467,152	$	2,827,879	$	2,920,039	$	460,062		$	(3,057,459	)	$	3,617,673
Accounts payable and accrued liabilities	$	200	$	89,341	$	111,616	$	14,354		$	(320	)	$	215,191
Current portion of long-term debt	536		4,665		967		10,454			—			16,622
Current portion of affiliate long-term debt	1,254		—		1,017		720			(720		)	2,271
Other current liabilities	938		—		95,595		10,070			24			106,627
Total current liabilities	2,928		94,006		209,195		35,598			(1,016		)	340,711
Long-term debt	6,076		2,275,837		35,965		118,508			—			2,436,386
Affiliate long-term debt	5,306		—		14,314		283,097			(283,098		)	19,619
Other liabilities	44,321		28,381		563,579		110,021			(341,583		)	404,719
Total liabilities	58,631		2,398,224		823,053		547,224			(625,697		)	3,201,435
Total Sinclair Broadcast Group equity (deficit)	408,521		429,655		2,096,986		(94,879		)	(2,431,762		)	408,521
Noncontrolling interests in consolidated subsidiaries	—		—		—		7,717			—			7,717
Total liabilities and equity (deficit)	$	467,152	$	2,827,879	$	2,920,039	$	460,062		$	3,057,459		$	3,617,673

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2012

(in thousands)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—		$	7,230		$	199	$	15,436		$	—		$	22,865
Accounts and other receivables	152			907			175,837		7,622			(622		)	183,896
Other current assets	2,821			2,342			56,522		9,028			(3,383		)	67,330
Assets held for sale	—			—			30,357		—			—			30,357
Total current assets	2,973			10,479			262,915		32,086			(4,005		)	304,448
Property and equipment, net	6,315			8,938			321,873		113,454			(10,867		)	439,713
Investment in consolidated subsidiaries	—			1,636,504			1,956		—			(1,638,460		)	—
Restricted cash — long term	—			2			223		—			—			225
Other long-term assets	84,055			375,687			60,114		112,757			(429,862		)	202,751
Total other long-term assets	84,055			2,012,193			62,293		112,757			(2,068,322		)	202,976
Goodwill and other intangible assets	—			—			1,706,646		153,961			(78,047		)	1,782,560
Total assets	$	93,343		$	2,031,610		$	2,353,727	$	412,258		$	(2,161,241	)	$	2,729,697
Accounts payable and accrued liabilities	$	326		$	61,165		$	83,049	$	9,379		$	(102	)	$	153,817
Current portion of long-term debt	483			31,113			800		15,226			—			47,622
Current portion of affiliate long-term debt	1,102			—			602		433			(433		)	1,704
Other current liabilities	—			—			96,288		8,871			(3,099		)	102,060
Liabilities held for sale	—			—			2,397		—			—			2,397
Total current liabilities	1,911			92,278			183,136		33,909			(3,634		)	307,600
Long-term debt	12,502			2,088,586			36,705		73,073			—			2,210,866
Affiliate long-term debt	6,303			—			6,884		267,521			(267,521		)	13,187
Dividends in excess of investment in consolidated subsidiaries	178,869			—			—		—			(178,869		)	—
Other liabilities	10,708			2,509			491,845		103,007			(309,972		)	298,097
Total liabilities	210,293			2,183,373			718,570		477,510			(759,996		)	2,829,750
Total Sinclair Broadcast Group shareholders’ (deficit) equity	(116,950		)	(151,763		)	1,635,157		(82,149		)	(1,401,245		)	(116,950		)
Noncontrolling interests in consolidated subsidiaries	—			—			—		16,897			—			16,897
Total liabilities and equity (deficit)	$	93,343		$	2,031,610		$	2,353,727	$	412,258		$	(2,161,241	)	$	2,729,697

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, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non-Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	319,767		$	32,970		$	(14,093	)	$	338,644
Program and production	—			112			99,186			13,870			(14,229		)	98,939
Selling, general and administrative	901			14,712			64,300			2,386			(75		)	82,224
Depreciation, amortization and other operating expenses	348			629			68,820			19,143			(4,307		)	84,633
Total operating expenses	1,249			15,453			232,306			35,399			(18,611		)	265,796
Operating (loss) income	(1,249		)	(15,453		)	87,461			(2,429)			4,518			72,848
Equity in earnings of consolidated subsidiaries	40,547			55,128			60			—			(95,735		)	—
Interest expense	(203		)	(37,123		)	(1,269		)	(6,538		)	5,266			(39,867		)
Other income (expense)	996			6,772			(6,710		)	1,085			(84		)	2,059
Total other income (expense)	41,340			24,777			(7,919		)	(5,453		)	(90,553		)	(37,808		)
Income tax benefit (provision)	(3,749		)	16,667			(22,236		)	929			3,900			(4,489		)
Income from discontinued operations	—			6,108			(8		)	—			—			6,100
Net income (loss)	36,342			32,099			57,298			(6,953		)	(82,135		)	36,651
Net income attributable to the noncontrolling interests	—			—			—			(309		)	—			(309		)
Net income (loss) attributable to Sinclair Broadcast Group	$	36,342		$	32,099		$	57,298		$	(7,262	)	$	(82,135	)	$	36,342
Comprehensive income (loss)	$	36,613		$	32,061		$	57,298		$	(7,262	)	$	(82,097	)	$	36,613

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	$	—		$	—		$	246,531		$	14,364		$	(2,181	)	$	258,714
Program and production	—			278			63,777			(1		)	(2,349		)	61,705
Selling, general and administrative	746			13,157			36,720			908			(76		)	51,455
Depreciation, amortization and other operating expenses	382			618			53,819			12,508			(171		)	67,156
Total operating expenses	1,128			14,053			154,316			13,415			(2,596		)	180,316
Operating (loss) income	(1,128		)	(14,053		)	92,215			949			415			78,398
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			(39,396		)	105			—			(19,093		)
(Loss) income from discontinued operations	84			(68		)	(141		)	—			—			(125		)
Net income (loss)	26,245			23,405			51,427			(3,701		)	(71,024		)	26,352
Net income 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 NINE MONTHS ENDED SEPTEMBER 30, 2013

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	887,489		$	90,402		$	(42,475	)	$	935,416
Program and production	—			207			269,360			28,489			(32,990		)	265,066
Selling, general and administrative	2,679			34,840			167,654			14,627			(9,644		)	210,156
Depreciation, amortization and other operating expenses	1,038			1,558			186,926			50,691			(803		)	239,410
Total operating expenses	3,717			36,605			623,940			93,807			(43,437		)	714,632
Operating (loss) income	(3,717		)	(36,605		)	263,549			(3,405		)	962			220,784
Equity in earnings of consolidated subsidiaries	76,623			164,370			—			—			(240,993		)	—
Interest expense	(903		)	(115,115		)	(3,607		)	(19,027		)	15,623			(123,029		)
Other income (expense)	3,029			3,141			(19,433		)	4,990			(6,468		)	(14,741		)
Total other income (expense)	78,749			52,396			(23,040		)	(14,037		)	(231,838		)	(137,770		)
Income tax (provision) benefit	(3,867		)	47,645			(73,267		)	2,597			3,900			(22,992		)
Income from discontinued operations	—			11,063			495			—			—			11,558
Net income (loss)	71,165			74,499			167,737			(14,845		)	(226,976		)	71,580
Net income attributable to the noncontrolling interests	—			—			—			(415		)	—			(415		)
Net income (loss) attributable to Sinclair Broadcast Group	$	71,165		$	74,499		$	167,737		$	(15,260	)	$	(226,976	)	$	71,165
Comprehensive income (loss)	$	71,464		$	74,383		$	167,737		$	(15,260	)	$	(226,860	)	$	71,464

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	$	—		$	—		$	694,520		$	44,179		$	(6,537	)	$	732,162
Program and production	—			291			190,169			158			(6,520		)	184,098
Selling, general and administrative	2,117			38,720			102,075			2,999			(283		)	145,628
Depreciation, amortization and other operating expenses	1,148			1,282			150,636			39,636			(447		)	192,255
Total operating expenses	3,265			40,293			442,880			42,793			(7,250		)	521,981
Operating (loss) income	(3,265		)	(40,293		)	251,640			1,386			713			210,181
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			(88,485		)	7,141			—			(42,185		)
(Loss) income from discontinued operations	—			(202		)	24			—			—			(178		)
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	$	85,804		$	70,190		$	159,569		$	(2,267	)	$	(227,492	)	$	85,804

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013

(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	$	(3,042	)	$	(66,985	)	$	208,126		$	(816	)	$	13,356		$	150,639
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2,253		)	(21,109		)	(5,414		)	—			(28,776		)
Payments for acquisitions of television stations	—			—			(495,440		)	—			—			(495,440		)
Payments for acquisitions in other operating divisions	—			—			—			(4,650		)	—			(4,650		)
Purchase of alarm monitoring contracts	—			—			1,114			(13,042		)	—			(11,928		)
Proceeds from sale of broadcast assets	—			—			27,992			—			—			27,992
Decrease in restricted cash	—			(38,930		)	—			(2,102		)	—			(41,032		)
Other, net	1,648			—			4,454			1,898			(10,908		)	(2,908		)
Net cash flows (used in) from investing activities	1,648			(41,183		)	(482,989		)	(23,310		)	(10,908		)	(556,742		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,146,789			—			52,026			—			1,198,815
Repayments of notes payable, commercial bank financing and capital leases	(234		)	(985,755		)	(802		)	(11,294		)	—			(998,085		)
Proceeds from the sale of common stock	472,400			—			—			—			—			472,400
Dividends paid on Class A and Class B Common Stock	(41,938		)	—			235			—			(235		)	(41,938		)
Increase (decrease) in intercompany payables	(429,664		)	154,648			292,696			(4,549		)	(13,131		)	—
Other, net	830			(20,205		)	(554		)	(9,949		)	10,918			(18,960		)
Net cash flows (used in) from financing activities	1,394			295,477			291,575			26,234			(2,448		)	612,232
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			187,309			16,712			2,108			—			206,129
CASH AND CASH EQUIVALENTS, beginning of period	—			7,230			199			15,436			—			22,865
CASH AND CASH EQUIVALENTS, end of period	$	—		$	194,539		$	16,911		$	17,544		$	—		$	228,994

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
Other, net	740			—			63			2,502			—			3,305
Net cash flows (used in) from 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		)
Dividends paid on Class A and Class B Common Stock	(31,646		)	—			—			—			401			(31,245		)
Increase (decrease) in intercompany payables	32,087			(435,595		)	389,771			15,053			(1,316		)	—
Other, net	(413		)	(8,364		)	(1,489		)	(734		)	—			(11,000		)
Net cash flows (used in) from financing activities	(280		)	73,239			387,824			17,749			(915		)	477,617
NET INCREASE (DECREASE) 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