CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: (Tables)

3 Months Ended

Mar. 31, 2014

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF March 31, 2014

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	299,883	$	394	$	17,534		$	—		$	317,811
Accounts and other receivables	23		1,335		259,573		25,397			(862		)	285,466
Other current assets	1,857		12,968		63,856		16,397			(10,509		)	84,569
Assets held for sale	—		—		97,909		—			—			97,909
Total current assets	1,880		314,186		421,732		59,328			(11,371		)	785,755
Property and equipment, net	4,750		14,175		430,870		131,757			(7,461		)	574,091
Investment in consolidated subsidiaries	315,503		2,412,432		4,179		—			(2,732,114		)	—
Restricted cash — long-term	—		12,426		—		—			—			12,426
Other long-term assets	75,904		522,272		53,638		132,275			(558,211		)	225,878
Total other long-term assets	391,407		2,947,130		57,817		132,275			(3,290,325		)	238,304
Goodwill and other intangible assets	—		—		2,388,734		217,848			(94,619		)	2,511,963
Total assets	$	398,037	$	3,275,491	$	3,299,153	$	541,208		$	(3,403,776	)	$	4,110,113
Accounts payable and accrued liabilities	$	108	$	76,681	$	140,017	$	17,849		$	(1,319	)	$	233,336
Current portion of long-term debt	577		44,000		1,110		6,853			156			52,696
Current portion of affiliate long-term debt	1,335		—		1,131		824			(824		)	2,466
Other current liabilities	17,820		5,292		72,020		10,075			(6,159		)	99,048
Liabilities held for sale	—		—		10,335		—			—			10,335
Total current liabilities	19,840		125,973		224,613		35,601			(8,146		)	397,881
Long-term debt	375		2,782,567		29,733		139,341			2,092			2,954,108
Affiliate long-term debt	4,618		—		13,674		299,929			(299,931		)	18,290
Other liabilities	40,410		23,904		616,894		146,034			(429,775		)	397,467
Total liabilities	65,243		2,932,444		884,914		620,905			(735,760		)	3,767,746
Total Sinclair Broadcast Group equity (deficit)	332,794		343,047		2,414,240		(89,271		)	(2,668,016		)	332,794
Noncontrolling interests in consolidated subsidiaries	—		—		—		9,573			—			9,573
Total liabilities and equity (deficit)	$	398,037	$	3,275,491	$	3,299,154	$	541,207		$	(3,403,776	)	$	4,110,113

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2013

(in thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	237,974	$	28,594	$	13,536		$	—		$	280,104
Accounts and other receivables	59		818		281,822		27,479			(1,022		)	309,156
Other current assets	5,500		25,887		67,279		16,391			(6,446		)	108,611
Total current assets	5,559		264,679		377,695		57,406			(7,468		)	697,871
Property and equipment, net	5,017		13,561		454,917		130,019			(7,443		)	596,071
Investment in consolidated subsidiaries	363,231		2,508,058		4,179		—			(2,875,468		)	—
Restricted cash — long term	—		11,524		223		—			—			11,747
Other long-term assets	78,849		503,674		62,435		132,840			(544,881		)	232,917
Total other long-term assets	442,080		3,023,256		66,837		132,840			(3,420,349		)	244,664
Goodwill and other intangible assets	—		—		2,486,794		214,325			(92,253		)	2,608,866
Total assets	$	452,656	$	3,301,496	$	3,386,243	$	534,590		$	(3,527,513	)	$	4,147,472
Accounts payable and accrued liabilities	$	234	$	51,781	$	126,245	$	17,914		$	—		$	196,174
Current portion of long-term debt	556		37,335		1,007		7,448			—			46,346
Current portion of affiliate long-term debt	1,294		—		1,073		1,003			(1,003		)	2,367
Other current liabilities	3,529		—		87,612		9,645			(2,292		)	98,494
Total current liabilities	5,613		89,116		215,937		36,010			(3,295		)	343,381
Long-term debt	529		2,793,334		35,709		136,830			—			2,966,402
Affiliate long-term debt	4,972		—		13,984		294,919			(294,950		)	18,925
Other liabilities	45,172		23,645		610,491		145,828			(412,076		)	413,060
Total liabilities	56,286		2,906,095		876,121		613,587			(710,321		)	3,741,768
Total Sinclair Broadcast Group equity (deficit)	396,370		395,401		2,510,122		(88,331		)	(2,817,192		)	396,370
Noncontrolling interests in consolidated subsidiaries	—		—		—		9,334			—			9,334
Total liabilities and equity (deficit)	$	452,656	$	3,301,496	$	3,386,243	$	534,590		$	(3,527,513	)	$	4,147,472

Schedule of condensed consolidating statement of operations and comprehensive income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED March 31, 2014

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	390,080		$	41,427		$	(18,859	)	$	412,648
Program and production	—			76			126,733			18,411			(18,181		)	127,039
Selling, general and administrative	885			14,545			80,502			2,400			(572		)	97,760
Depreciation, amortization and other operating expenses	267			1,107			86,390			19,160			(75		)	106,849
Total operating expenses	1,152			15,728			293,625			39,971			(18,828		)	331,648
Operating (loss) income	(1,152		)	(15,728		)	96,455			1,456			(31		)	81,000
Equity in earnings of consolidated subsidiaries	26,687			62,264			—			—			(88,951		)	—
Interest expense	(159		)	(36,748		)	(1,242		)	(6,553		)	5,164			(39,538		)
Other income (expense)	646			296			93			—			(20		)	1,015
Total other income (expense)	27,174			25,812			(1,149		)	(6,553		)	(83,807		)	(38,523		)
Income tax benefit (provision)	1,136			17,267			(33,042		)	(181		)	—			(14,820		)
Income from discontinued operations	—			—			—			—			—			—
Net income (loss)	27,158			27,351			62,264			(5,278		)	(83,838		)	27,657
Net income attributable to the noncontrolling interests	—			—			—			(499		)	—			(499		)
Net income (loss) attributable to Sinclair Broadcast Group	$	27,158		$	27,351		$	62,264		$	(5,777	)	$	(83,838	)	$	27,158
Comprehensive income (loss)	$	27,696		$	27,265		$	62,264		$	(5,652	)	$	(83,877	)	$	27,696

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED March 31, 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	$	—		$	—		$	270,547		$	23,917		$	(11,846	)	$	282,618
Program and production	—			32			82,700			5,588			(7,887		)	80,433
Selling, general and administrative	824			9,917			51,203			5,689			(4,445		)	63,188
Depreciation, amortization and other operating expenses	342			299			62,103			14,981			(2,384		)	75,341
Total operating expenses	1,166			10,248			196,006			26,258			(14,716		)	218,962
Operating (loss) income	(1,166		)	(10,248		)	74,541			(2,341		)	2,870			63,656
Equity in earnings of consolidated subsidiaries	17,849			46,717			(30		)	—			(64,536		)	—
Interest expense	(311		)	(35,233		)	(1,115		)	(6,187		)	5,149			(37,697		)
Other income (expense)	956			7,438			(7,288		)	(1,257		)	(444		)	(595		)
Total other income (expense)	18,494			18,922			(8,433		)	(7,444		)	(59,831		)	(38,292		)
Income tax benefit (provision)	(331		)	7,986			(18,734		)	2,230			—			(8,849		)
Income (loss) from discontinued operations	—			(58		)	413			—			—			355
Net income (loss)	16,997			16,602			47,787			(7,555		)	(56,961		)	16,870
Net loss attributable to the noncontrolling interests	—			—			—			127			—			127
Net income (loss) attributable to Sinclair Broadcast Group	$	16,997		$	16,602		$	47,787		$	(7,428	)	$	(56,961	)	$	16,997
Comprehensive income (loss)	$	16,831		$	16,563		$	47,787		$	(7,428	)	$	(56,922	)	$	16,831

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED March 31, 2014

(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	$	13,532		$	(8,180	)	$	124,353		$	6,472		$	83		$	136,260
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(1,721		)	(9,587		)	(599		)	—			(11,907		)
Purchase of alarm monitoring contracts	—			—			—			(4,323		)	—			(4,323		)
Decrease in restricted cash	—			(900		)	221			—			—			(679		)
Investments in equity and cost method investees	—			—			—			(2,154		)	—			(2,154		)
Proceeds from termination of life insurance policies	—			17,042			—			—						17,042
Other, net	—			—			—			55			—			55
Net cash flows (used in) from investing activities	—			14,421			(9,366		)	(7,021		)	—			(1,966		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			—			—			5,885			—			5,885
Repayments of notes payable, commercial bank financing and capital leases	(132		)	(4,335		)	(268		)	(1,661		)	—			(6,396		)
Dividends paid on Class A and Class B Common Stock	(14,719		)	—			—			—			23			(14,696		)
Repurchase of outstanding Class A Common Stock	(82,371		)	—			—			—			—			(82,371		)
Increase (decrease) in intercompany payables	82,043			60,147			(142,667		)	583			(106		)	—
Other, net	1,647			(144		)	(252		)	(260		)	—			991
Net cash flows (used in) from financing activities	(13,532		)	55,668			(143,187		)	4,547			(83		)	(96,587		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			61,909			(28,200		)	3,998			—			37,707
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	229,883		$	394		$	17,534		$	—		$	317,811

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED March 31, 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 FROM (USED IN) OPERATING ACTIVITIES	$	3,002		$	(8,428	)	$	56,623		$	(4,012	)	$	2,517		$	49,702
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(181		)	(6,725		)	(576		)	—			(7,482		)
Proceeds from the sale of broadcast assets	—			—			14,312			—			—			14,312
Purchase of alarm monitoring contracts	—			—			—			(1,924		)	—			(1,924		)
Increase in restricted cash	—			(24,945		)	—			—			—			(24,945		)
Investment in marketable securities	—			—			—			(1,195		)				(1,195		)
Distributions from investments	—			—			—			2,228			—			2,228
Investment in equity and cost method investees	—			—			—			(1,758		)	—			(1,758		)
Proceeds from the sale of real estate investment	—			—			—			5,516			—			5,516
Proceeds from loans to affiliates	13			—			—			—			—			13
Other investing activities	(42		)	—			335			—			—			293
Net cash flows (used in) from investing activities	(29		)	(25,126		)	7,922			2,291			—			(14,942		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			93,500			—			7,628			—			101,128
Repayments of notes payable, commercial bank financing and capital leases	(115		)	(110,092		)	(181		)	(2,235		)	—			(112,623		)
Proceeds from share based awards	1,242			—			—			—			—			1,242
Dividends paid on Class A and Class B Common Stock	(12,195		)	—			—			—			147			(12,048		)
Payments for deferred financing costs	—			(778		)	—			(23		)	—			(801		)
Proceeds from Class A Common Stock sold by variable interest entity	—			—			—			1,045			—			1,045
Distributions to noncontrolling interests	—			—			—			(9,329		)	—			(9,329		)
Repayment of notes and capital leases to affiliates	(276		)	—			(138		)	—			—			(414		)
Increase (decrease) in intercompany payables	8,371			50,193			(63,769		)	7,869			(2,664		)	—
Net cash flows (used in) from financing activities	(2,973		)	32,823			(64,088		)	4,955			(2,517		)	(31,800		)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	—			(731		)	457			3,234			—			2,960
CASH AND CASH EQUIVALENTS, beginning of period	—			7,230			199			15,436			—			22,865
CASH AND CASH EQUIVALENTS, end of period	$	—		$	6,499		$	656		$	18,670		$	—		$	25,825