CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2015

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Schedule of condensed consolidating balance sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2015

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	35,551	$	936	$	21,356		$	—		$	57,843
Accounts and other receivables	—		—		341,056		28,861			(1,221		)	368,696
Other current assets	1,627		16,261		86,304		21,758			(18,712		)	107,238
Total current assets	1,627		51,812		428,296		71,975			(19,933		)	533,777
Property and equipment, net	3,683		19,618		554,338		172,105			(7,347		)	742,397
Investment in consolidated subsidiaries	412,044		3,519,449		4,129		—			(3,935,622		)	—
Other long-term assets	63,286		628,279		82,312		115,725			(652,497		)	237,105
Total other long-term assets	475,330		4,147,728		86,441		115,725			(4,588,119		)	237,105
Goodwill and other intangible assets	—		—		3,800,607		217,368			(113,775		)	3,904,200
Total assets	$	480,640	$	4,219,158	$	4,869,682	$	577,173		$	(4,729,174	)	$	5,417,479
Accounts payable and accrued liabilities	$	1,812	$	57,224	$	178,665	$	28,595		$	(21,241	)	$	245,055
Current portion of long-term debt	375		46,250		1,371		10,830			—			58,826
Current portion of affiliate long-term debt	1,509		—		1,086		1,402			(1,219		)	2,778
Other current liabilities	3,026		—		113,656		9,323			(1,485		)	124,520
Total current liabilities	6,722		103,474		294,778		50,150			(23,945		)	431,179
Long-term debt	—		3,652,382		33,971		145,470			—			3,831,823
Affiliate long-term debt	3,109		—		12,587		334,367			(332,458		)	17,605
Other liabilities	33,565		28,261		1,007,725		170,858			(515,977		)	724,432
Total liabilities	43,396		3,784,117		1,349,061		700,845			(872,380		)	5,005,039
Total Sinclair Broadcast Group equity (deficit)	437,244		435,041		3,520,621		(94,620		)	(3,861,042		)	437,244
Noncontrolling interests in consolidated subsidiaries	—		—		—		(29,052		)	4,248			(24,804		)
Total liabilities and equity (deficit)	$	480,640	$	4,219,158	$	4,869,682	$	577,173		$	(4,729,174	)	$	5,417,479

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2014

(in thousands)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	3,394	$	1,749	$	12,539		$	—		$	17,682
Accounts and other receivables	—		164		359,486		25,111			(1,258		)	383,503
Other current assets	5,741		12,996		98,751		12,721			(11,733		)	118,476
Assets held for sale	—		—		—		6,504			—			6,504
Total current assets	5,741		16,554		459,986		56,875			(12,991		)	526,165
Property and equipment, net	3,949		17,554		569,372		168,762			(7,099		)	752,538
Assets held for sale	—		—		1,843		6,974			—			8,817
Investment in consolidated subsidiaries	395,225		3,585,037		3,978		—			(3,984,240		)	—
Other long-term assets	65,988		595,112		90,914		115,375			(620,628		)	246,761
Total other long-term assets	461,213		4,180,149		96,735		122,349			(4,604,868		)	255,578
Goodwill and other intangible assets	—		1,483		3,821,985		209,724			(115,301		)	3,917,891
Total assets	$	470,903	$	4,215,740	$	4,948,078	$	557,710		$	(4,740,259	)	$	5,452,172
Accounts payable and accrued liabilities	$	541	$	46,083	$	201,102	$	24,325		$	(13,680	)	$	258,371
Current portion of long-term debt	529		42,953		1,302		68,332			—			113,116
Current portion of affiliate long-term debt	1,464		—		1,182		1,026			(1,047		)	2,625
Other current liabilities	1,208		—		107,867		9,749			(1,407		)	117,417
Liabilities held for sale	—		—		—		2,477			—			2,477
Total current liabilities	3,742		89,036		311,453		105,909			(16,134		)	494,006
Long-term debt	—		3,679,004		34,338		83,324			—			3,796,666
Affiliate long-term debt	3,508		—		12,802		319,901			(319,902		)	16,309
Other liabilities	35,771		28,856		1,003,213		169,935			(497,927		)	739,848
Total liabilities	43,021		3,796,896		1,361,806		679,069			(833,963		)	5,046,829
Total Sinclair Broadcast Group equity (deficit)	427,882		418,844		3,586,272		(94,632		)	(3,910,484		)	427,882
Noncontrolling interests in consolidated subsidiaries	—		—		—		(26,727		)	4,188			(22,539		)
Total liabilities and equity (deficit)	$	470,903	$	4,215,740	$	4,948,078	$	557,710		$	(4,740,259	)	$	5,452,172

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, 2015

(in thousands) (unaudited)

	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	476,670		$	47,004		$	(18,899	)	$	504,775
Program and production	—			—			169,693			19,849			(18,527		)	171,015
Selling, general and administrative	1,045			14,783			99,347			2,640			88			117,903
Depreciation, amortization and other operating expenses	266			775			102,360			28,250			(341		)	131,310
Total operating expenses	1,311			15,558			371,400			50,739			(18,780		)	420,228
Operating (loss) income	(1,311		)	(15,558		)	105,270			(3,735		)	(119		)	84,547
Equity in earnings of consolidated subsidiaries	24,325			64,465			(50		)	—			(88,740		)	—
Interest expense	(102		)	(43,873		)	(1,176		)	(6,706		)	5,209			(46,648		)
Other income (expense)	1,350			(154		)	64			2,104			—			3,364
Total other income (expense)	25,573			20,438			(1,162		)	(4,602		)	(83,531		)	(43,284		)
Income tax benefit (provision)	20			20,615			(38,377		)	1,315			—			(16,427		)
Net income (loss)	24,282			25,495			65,731			(7,022		)	(83,650		)	24,836
Net income attributable to the noncontrolling interests	—			—			—			(554		)	—			(554		)
Net income (loss) attributable to Sinclair Broadcast Group	$	24,282		$	25,495		$	65,731		$	(7,576	)	$	(83,650	)	$	24,282
Comprehensive income (loss)	$	24,920		$	25,579		$	65,731		$	(7,576	)	$	(83,734	)	$	24,920

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		)
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

Schedule of condensed consolidating statement of cash flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(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	$	6,591		$	(25,325	)	$	139,443		$	(13,488	)	$	4,398		$	111,619
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(2,912		)	(20,309		)	(635		)	208			(23,648		)
Purchase of alarm monitoring contracts	—			—			—			(5,744		)	—			(5,744		)
Distributions from equity and costs method investees	1,425			419			—			2,308			—			4,152
Investments in equity and cost method investees	—			(1,100		)	—			(1,845		)	—			(2,945		)
Other, net	—			—			272			—			—			272
Net cash flows (used in) from investing activities	1,425			(3,593		)	(20,037		)	(5,916		)	208			(27,913		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			—			—			7,866			—			7,866
Repayments of notes payable, commercial bank financing and capital leases	(508		)	(23,514		)	56			(1,089		)	—			(25,055		)
Dividends paid on Class A and Class B Common Stock	(15,715		)	—			—			—			—			(15,715		)
Repurchase of outstanding Class A Common Stock	(7,803		)	—			—			—			—			(7,803		)
Increase (decrease) in intercompany payables	15,323			84,589			(120,275		)	24,969			(4,606		)	—
Other, net	687			—			—			(3,525		)	—			(2,838		)
Net cash flows (used in) from financing activities	(8,016		)	61,075			(120,219		)	28,221			(4,606		)	(43,545		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			32,157			(813		)	8,817			—			40,161
CASH AND CASH EQUIVALENTS, beginning of period	—			3,394			1,749			12,539			—			17,682
CASH AND CASH EQUIVALENTS, end of period	$	—		$	35,551		$	936		$	21,356		$	—		$	57,843

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	$	—		$	299,883		$	394		$	17,534		$	—		$	317,811