10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One) 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the quarterly period ended June 30, 2023

OR

☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from                      to                       .

COMMISSION FILE NUMBER:

333-271072 (Sinclair, Inc.)

000-26076 (Sinclair Broadcast Group, LLC)

Sinclair, Inc.

Sinclair Broadcast Group, LLC

(Exact name of Registrant as specified in its charter)

 

Maryland	92-1076143 (Sinclair, Inc.)
Maryland	52-1494660 (Sinclair Broadcast Group, LLC)
(State or other jurisdiction of Incorporation or organization)	(I.R.S. Employer Identification No.)

10706 Beaver Dam Road

Hunt Valley, Maryland 21030

(Address of principal executive office, zip code)

(410) 568-1500

(Registrant's telephone number, including area code)

Sinclair Broadcast Group, Inc.

(Former name, former address and former fiscal year, if changed since last report)

Securities registered by Sinclair, Inc. pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $ 0.01 per share	SBGI	The NASDAQ Stock Market LLC

Securities registered by Sinclair Broadcast Group, LLC pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Sinclair, Inc. Yes ☒ No ☐

Sinclair Broadcast Group, LLC Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such file).

Sinclair, Inc. Yes ☒ No ☐

Sinclair Broadcast Group, LLC Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Sinclair, Inc. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

Sinclair Broadcast Group, LLC Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Sinclair, Inc. ☐

Sinclair Broadcast Group, LLC ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Sinclair, Inc. Yes ☐ No ☒

Sinclair Broadcast Group, LLC Yes ☐ No ☒

As of August 7, 2023, there were 39,649,259 shares of Sinclair, Inc. Class A Common Stock outstanding and 23,775,056 shares of Sinclair, Inc. Class B Common Stock outstanding.

GENERAL

This combined report on Form 10-Q is filed by both Sinclair, Inc. ("Sinclair") and Sinclair Broadcast Group, LLC ("SBG"). Certain information contained in this document relating to SBG is filed by Sinclair and separately by SBG. SBG makes no representation as to information relating to Sinclair or its subsidiaries, except as it may relate to SBG and its subsidiaries. References in this report to "we," "us," "our," the "Company" and similar terms refer to Sinclair and its consolidated subsidiaries, including SBG, unless context indicates otherwise. As described under Company Reorganization in Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements below, upon consummation of the Reorganization (as defined therein) on June 1, 2023, Sinclair became the successor issuer to Sinclair Broadcast Group, Inc. ("Old Sinclair"), which, immediately following the Reorganization was converted into a limited liability company. SBG files reports under the Securities Exchange Act of 1934, as amended (the "Exchange Act") solely to comply with Section 1018(a) of the indenture governing the 5.125% Senior Notes due 2027 of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG. References to SBG herein may also include its predecessor, Old Sinclair, as context indicates.

FORWARD-LOOKING STATEMENTS

This report includes or incorporates forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act, and the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to risks, uncertainties and assumptions about us, including, among other things, the following risks. All risk factors are deemed to be related to both Sinclair and its subsidiaries, including SBG. Any risks only applicable to Sinclair are denoted as such.

Industry risks

•The business conditions of our advertisers, particularly in the political, automotive and service categories;

•the performance of networks and syndicators that provide us with programming content, as well as the performance of internally originated programming;

•subscriber churn due to the impact of technological changes, the proliferation of over-the-top ("OTT") direct to consumer platforms, and economic conditions on consumers desire to pay for subscription services;

•the loss of appeal of our local news, network content, syndicated program content and sports programming, which may be unpredictable;

•the availability and cost of programming from networks and syndicators, as well as the cost of internally originated programming;

•for Sinclair, the availability and cost of rights to air professional tennis tournaments;

•our relationships with networks and their strategies to distribute their programming via means other than their local television affiliates, such as OTT or direct-to-consumer content;

•labor disputes and legislation and other union activity associated with film, acting, writing, and other guilds;

•the broadcasting community's ability to develop and adopt a viable mobile digital broadcast television ("mobile DTV") strategy and platform, such as the adoption of a next generation broadcast standard ("NextGen TV"), and the consumer's appetite for mobile television;

•the impact of programming payments charged by networks pursuant to their affiliation agreements with broadcasters requiring compensation for network programming;

•the effects of declining live/appointment viewership as reported through rating systems and local television efforts to adopt and receive credit for same day viewing plus viewing on-demand thereafter;

•changes in television rating measurement methodologies that could negatively impact audience results;

•the ability of local multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors") to coordinate and determine local advertising rates as a consortium;

•the operation of low power devices in the broadcast spectrum, which could interfere with our broadcast; and

•the impact of Distributors and OTTs offering "skinny" programming bundles that may not include television broadcast stations or other programming that we distribute.

Regulatory risks

•the Federal Communications Commission ("FCC") task force appointed to help ensure a smoother roll-out of NextGen TV could impact business-use cases for the NextGen TV technology and the timeframe for the discontinuance of ATSC 1.0;

•the potential for additional governmental regulation of broadcasting or changes in those regulations and court actions interpreting those regulations, including ownership regulations limiting over-the-air television's ability to compete effectively (including regulations relating to joint sales agreements ("JSA"), shared services agreements ("SSA"), cross ownership rules, the national ownership cap and the UHF discount), arbitrary enforcement of indecency regulations, retransmission consent regulations, and political or other advertising restrictions, such as payola rules;

•the impact of FCC and Congressional efforts which may restrict a television station's retransmission consent negotiations;

•the impact of FCC rules requiring broadcast stations to publish, among other information, political advertising rates online;

•our ability to obtain regulatory approval for transactions related to FCC licenses;

•our ability to execute on our initiatives and goals related to environmental, social and governance ("ESG") matters and the increasing legal and regulatory focus on ESG;

•the impact of foreign government rules related to digital and online assets; and

•the potential impact from the elimination of rules prohibiting mergers of the four major television networks.

Risks specific to us

•the bankruptcy proceedings involving Diamond Sports Group, LLC ("DSG"), an independently managed and unconsolidated subsidiary of Sinclair; DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC may require us to pay monetary damages, which could materially and adversely affect our financial position and results of operations;

•the impact of the war in Ukraine including related disruption to supply chains and the increased price of energy, all of which affect our operations as well as those of our advertisers;

•our ability to attract and maintain local, national, and network advertising and successfully participate in new sales channels such as programmatic and addressable advertising through business partnership ventures and the development of technology;

•our ability to service our debt obligations and operate our business under restrictions contained in our financing agreements;

•our use of derivative financial instruments to reduce interest rate risk may result in added volatility in our operating results;

•our ability to successfully implement and monetize our own content management system designed to provide our viewers significantly improved content via the internet and other digital platforms;

•our ability to successfully renegotiate retransmission consent and distribution agreements for our existing and any acquired businesses with favorable terms;

•the ability of stations which we consolidate, but do not negotiate on their behalf, to successfully renegotiate retransmission consent and affiliation fees (cable network fees) agreements and comply with laws and regulations that apply to them;

•our ability to renew our FCC licenses;

•our ability to identify investment opportunities;

•our ability to successfully integrate any acquired businesses, as well as the success of our new content and distribution initiatives in a competitive environment, including CHARGE!, TBD, Comet, other original programming, mobile DTV, and FAST channels;

•our ability to maintain our affiliation and programming service agreements with our networks and program service providers and, at renewal, to successfully negotiate these agreements with favorable terms;

•our ability to generate synergies and leverage new revenue opportunities;

•changes in the makeup of the population in the areas where our stations are located;

•our ability to effectively respond to technology affecting our industry;

•our ability to deploy NextGen TV nationwide, as well as monetize the associated technology;

•the strength of ratings for our local news broadcasts including our news sharing arrangements;

•risks associated with the use of artificial intelligence by us and third parties, including our use in the operations of our business;

•the results of prior year tax audits by taxing authorities;

•for Sinclair, our ability to execute on our investment and growth strategies related to our subsidiary Sinclair Ventures, LLC ("Ventures"); and

•our ability to monetize our investments in real estate, venture capital and private equity holdings, and direct strategic investments in companies.

General risks

•The impact of changes in national and regional economies and credit and capital markets;

•loss of consumer confidence;

•the potential impact of changes in tax law;

•the activities of our competitors;

•acts of violence or war, such as the war in Ukraine, and other geopolitical events;

•natural disasters and pandemics (such as the outbreak and worldwide spread of COVID-19) that impact our employees, Distributors, advertisers, suppliers, stations and networks; and

•cybersecurity incidents, data privacy, and other information technology failures have, and in the future, may, adversely affect us and disrupt our operations.

Other matters set forth in this report, including the Risk Factors set forth in Item 1A of this Quarterly Report on Form 10-Q and Old Sinclair's Annual Report on Form 10-K for the year ended December 31, 2022, may also cause actual results in the future to differ materially from those described in the forward-looking statements. However, additional factors and risks not currently known to us or that we currently deem immaterial may also cause actual results in the future to differ materially from those described in the forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of these risks, uncertainties, and assumptions, events described in the forward-looking statements discussed in this report might not occur.

PART I. FINANCIAL INFORMATION

SINCLAIR, INC.

 SINCLAIR BROADCAST GROUP, LLC

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2023

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	2
ITEM 1. FINANCIAL STATEMENTS	3
ITEM 1A. FINANCIAL STATEMENTS OF SINCLAIR, INC. (UNAUDITED)	3
CONSOLIDATED BALANCE SHEETS	4
CONSOLIDATED STATEMENTS OF OPERATIONS	5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME	6
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS	7
CONSOLIDATED STATEMENTS OF CASH FLOWS	9
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	10
ITEM 1B. FINANCIAL STATEMENTS OF SINCLAIR BROADCAST GROUP, LLC (UNAUDITED)	30
CONSOLIDATED BALANCE SHEETS	31
CONSOLIDATED STATEMENTS OF OPERATIONS	32
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME	33
CONSOLIDATED STATEMENTS OF MEMBER'S EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS	34
CONSOLIDATED STATEMENTS OF CASH FLOWS	36
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	37
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	65
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	81
ITEM 4. CONTROLS AND PROCEDURES	81
PART II. OTHER INFORMATION	83
ITEM 1. LEGAL PROCEEDINGS	83
ITEM 1A. RISK FACTORS	83
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	84
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	84
ITEM 4. MINE SAFETY DISCLOSURES	84
ITEM 5. OTHER INFORMATION	84
ITEM 6. EXHIBITS	85
SIGNATURE	86

2

ITEM 1. FINANCIAL STATEMENTS

This report includes the Consolidated Financial Statements of Sinclair and SBG in Item 1A and Item 1B, respectively.

ITEM 1A.  FINANCIAL STATEMENTS OF SINCLAIR, INC.

3

SINCLAIR, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data) (Unaudited) 

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	728	$	884
Accounts receivable, net of allowance for doubtful accounts of $5 as of both periods	582		612
Income taxes receivable	6		5
Prepaid expenses and other current assets	190		182
Total current assets	1,506		1,683
Property and equipment, net	715		728
Operating lease assets	133		145
Goodwill	2,082		2,088
Indefinite-lived intangible assets	150		150
Customer relationships, net	405		444
Other definite-lived intangible assets, net	458		502
Other assets	752		964
Total assets (a)	$	6,201	$	6,704
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	452	$	397
Current portion of notes payable, finance leases, and commercial bank financing	37		38
Current portion of operating lease liabilities	21		23
Current portion of program contracts payable	48		83
Other current liabilities	66		67
Total current liabilities	624		608
Notes payable, finance leases, and commercial bank financing, less current portion	4,185		4,227
Operating lease liabilities, less current portion	145		154
Program contracts payable, less current portion	7		10
Deferred tax liabilities	387		610
Other long-term liabilities	212		220
Total liabilities (a)	5,560		5,829
Commitments and contingencies (See Note 5)
Redeemable noncontrolling interests	—		194
Shareholders' equity:
Class A Common Stock, $.01 par value, 500,000,000 shares authorized, 39,274,843 and 45,847,879 shares issued and outstanding, respectively	1		1
Class B Common Stock, $.01 par value, 140,000,000 shares authorized, 23,775,056 and 23,775,056 shares issued and outstanding, respectively, convertible into Class A Common Stock	—		—
Additional paid-in capital	510		624
Retained earnings	184		122
Accumulated other comprehensive income	7		1
Total Sinclair shareholders' equity	702		748
Noncontrolling interests	(61)		(67)
Total equity	641		681
Total liabilities, redeemable noncontrolling interests, and equity	$	6,201	$	6,704

The accompanying notes are an integral part of these unaudited consolidated financial statements.

(a)     Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

4

SINCLAIR, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data) (Unaudited) 

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
REVENUES:
Media revenues	$	761	$	831	$	1,527	$	2,106
Non-media revenues	7		6		14		19
Total revenues	768		837		1,541		2,125
OPERATING EXPENSES:
Media programming and production expenses	413		403		811		1,161
Media selling, general and administrative expenses	190		195		381		415
Amortization of program contract costs	19		21		41		46
Non-media expenses	9		10		21		23
Depreciation of property and equipment	32		24		56		52
Corporate general and administrative expenses	62		38		120		85
Amortization of definite-lived intangible assets	41		43		82		136
Gain on deconsolidation of subsidiary	—		—		—		(3,357)
Loss (gain) on asset dispositions and other, net of impairment	5		(4)		11		(9)
Total operating expenses (gains)	771		730		1,523		(1,448)
Operating (loss) income	(3)		107		18		3,573
OTHER INCOME (EXPENSE):
Interest expense including amortization of debt discount and deferred financing costs	(76)		(54)		(150)		(169)
Gain on extinguishment of debt	11		3		11		3
(Loss) income from equity method investments	(1)		3		30		15
Other expense, net	(38)		(105)		(27)		(165)
Total other expense, net	(104)		(153)		(136)		(316)
(Loss) income before income taxes	(107)		(46)		(118)		3,257
INCOME TAX BENEFIT (PROVISION)	20		40		224		(647)
NET (LOSS) INCOME	(87)		(6)		106		2,610
Net (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Net income attributable to the noncontrolling interests	(2)		—		(14)		(25)
NET (LOSS) INCOME ATTRIBUTABLE TO SINCLAIR	$	(89)	$	(11)	$	96	$	2,576
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR:
Basic earnings per share	$	(1.38)	$	(0.17)	$	1.44	$	36.00
Diluted earnings per share	$	(1.38)	$	(0.17)	$	1.43	$	36.00
Basic weighted average common shares outstanding (in thousands)	64,012		70,897		66,862		71,527
Diluted weighted average common and common equivalent shares outstanding (in thousands)	64,012		70,897		66,947		71,533

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

SINCLAIR, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in millions) (Unaudited)

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Net (loss) income	$	(87)	$	(6)	$	106	$	2,610
Unrealized gain on interest rate swap, net of tax	9		—		6		—
Share of other comprehensive income of equity method investments	—		—		—		3
Comprehensive (loss) income	(78)		(6)		112		2,613
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Comprehensive income attributable to the noncontrolling interests	(2)		—		(14)		(25)
Comprehensive (loss) income attributable to Sinclair	$	(80)	$	(11)	$	102	$	2,579

The accompanying notes are an integral part of these unaudited consolidated financial statements.

6

SINCLAIR, INC.

CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS

(in millions, except share and per share data) (Unaudited)

	Three Months Ended June 30, 2022
			Sinclair Shareholders
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total  Equity
			Shares	Values		Shares	Values
BALANCE, March 31, 2022	$	184	47,934,815	$	1	23,775,056	$	—	$	657	$	109	$	(2)	$	(62)	$	703
Dividends declared and paid on Class A and Class B Common Stock ($0.25 per share)	—		—	—		—	—		—		(19)		—		—		(19)
Repurchases of Class A Common Stock	—		(1,585,834)	—		—	—		(36)		—		—		—		(36)
Class A Common Stock issued pursuant to employee benefit plans	—		121,565	—		—	—		7		—		—		—		7
Distributions to noncontrolling interests	(2)		—	—		—	—		—		—		—		(2)		(2)
Net income (loss)	5		—	—		—	—		—		(11)		—		—		(11)
BALANCE, June 30, 2022	$	187	46,470,546	$	1	23,775,056	$	—	$	628	$	79	$	(2)	$	(64)	$	642
	Six Months Ended June 30, 2022
			Sinclair Shareholders
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total  (Deficit) Equity
			Shares	Values		Shares	Values
BALANCE, December 31, 2021	$	197	49,314,303	$	1	23,775,056	$	—	$	691	$	(2,460)	$	(2)	$	64	$	(1,706)
Dividends declared and paid on Class A and Class B Common Stock ($0.50 per share)	—		—	—		—	—		—		(37)		—		—		(37)
Repurchases of Class A Common Stock	—		(4,058,319)	—		—	—		(104)		—		—		—		(104)
Class A Common Stock issued pursuant to employee benefit plans	—		1,214,562	—		—	—		41		—		—		—		41
Distributions to noncontrolling interests	(3)		—	—		—	—		—		—		—		(5)		(5)
Other comprehensive income	—		—	—		—	—		—		—		3		—		3
Deconsolidation of subsidiary	(16)		—	—		—	—		—		—		(3)		(148)		(151)
Net income	9		—	—		—	—		—		2,576		—		25		2,601
BALANCE, June 30, 2022	$	187	46,470,546	$	1	23,775,056	$	—	$	628	$	79	$	(2)	$	(64)	$	642

 The accompanying notes are an integral part of these unaudited consolidated financial statements.

7

SINCLAIR, INC.

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

(in millions, except share and per share data) (Unaudited)

	Three Months Ended June 30, 2023
			Sinclair Shareholders
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Noncontrolling Interests		Total Equity
			Shares	Values		Shares	Values
BALANCE, March 31, 2023	$	—	44,360,502	$	1	23,775,056	$	—	$	602	$	289	$	(2)	$	(59)	$	831
Dividends declared and paid on Class A and Class B Common Stock ($0.25 per share)	—		—	—		—	—		—		(16)		—		—		(16)
Repurchases of Class A Common Stock	—		(5,201,809)	—		—	—		(100)		—		—		—		(100)
Class A Common Stock issued pursuant to employee benefit plans	—		116,150	—		—	—		8		—		—		—		8
Distributions to noncontrolling interests	—		—	—		—	—		—		—		—		(4)		(4)
Other comprehensive loss	—		—	—		—	—		—		—		9		—		9
Net (loss) income	—		—	—		—	—		—		(89)		—		2		(87)
BALANCE, June 30, 2023	$	—	39,274,843	$	1	23,775,056	$	—	$	510	$	184	$	7	$	(61)	$	641
	Six Months Ended June 30, 2023
			Sinclair Shareholders
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income		Noncontrolling Interests		Total Equity
			Shares	Values		Shares	Values
BALANCE, December 31, 2022	$	194	45,847,879	$	1	23,775,056	$	—	$	624	$	122	$	1	$	(67)	$	681
Dividends declared and paid on Class A and Class B Common Stock ($0.50 per share)	—		—	—		—	—		—		(34)		—		—		(34)
Repurchases of Class A Common Stock	—		(8,785,022)	—		—	—		(153)		—		—		—		(153)
Class A Common Stock issued pursuant to employee benefit plans	—		2,211,986	—		—	—		39		—		—		—		39
Distributions to noncontrolling interests	—		—	—		—	—		—		—		—		(8)		(8)
Other comprehensive income	—		—	—		—	—		—		—		6		—		6
Redemption, net	(190)		—	—		—	—		—		—		—		—		—
Net (loss) income	(4)		—	—		—	—		—		96		—		14		110
BALANCE, June 30, 2023	$	—	39,274,843	$	1	23,775,056	$	—	$	510	$	184	$	7	$	(61)	$	641

The accompanying notes are an integral part of these unaudited consolidated financial statements.

8

SINCLAIR, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions) (Unaudited)

	Six Months Ended June 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	106	$	2,610
Adjustments to reconcile net income to net cash flows from operating activities:
Amortization of sports programming rights	—		326
Amortization of definite-lived intangible and other assets	82		136
Depreciation of property and equipment	56		52
Amortization of program contract costs	41		46
Stock-based compensation	36		38
Deferred tax (benefit) provision	(227)		654
Loss (gain) on asset dispositions and other, net of impairment	11		(9)
Gain on deconsolidation of subsidiary	—		(3,357)
Income from equity method investments	(30)		(15)
Loss from investments	53		159
Distributions from investments	29		31
Sports programming rights payments	—		(325)
Rebate payments to distributors	—		(15)
Gain on extinguishment of debt	(11)		(3)
Change in assets and liabilities, net of acquisitions and deconsolidation of subsidiary:
Decrease in accounts receivable	26		29
Increase in prepaid expenses and other current assets	(47)		(107)
Increase in accounts payable and accrued and other current liabilities	62		29
Net change in net income taxes payable/receivable	(1)		(21)
Decrease in program contracts payable	(46)		(52)
Other, net	2		1
Net cash flows from operating activities	142		207
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	(40)		(45)
Deconsolidation of subsidiary cash	—		(315)
Purchases of investments	(39)		(61)
Distributions from investments	204		81
Other, net	4		11
Net cash flows from (used in) investing activities	129		(329)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—		728
Repayments of notes payable, commercial bank financing, and finance leases	(38)		(845)
Repurchase of outstanding Class A Common Stock	(153)		(104)
Dividends paid on Class A and Class B Common Stock	(34)		(36)
Dividends paid on redeemable subsidiary preferred equity	—		(3)
Repurchase of redeemable subsidiary preferred equity	(190)		—
Distributions to noncontrolling interests, net	(8)		(5)
Other, net	(4)		(12)
Net cash flows used in financing activities	(427)		(277)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(156)		(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884		819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	728	$	420

The accompanying notes are an integral part of these unaudited consolidated financial statements.

9

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.              NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

Sinclair, Inc. ("Sinclair") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks and professional sports. Additionally, we own digital media companies that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage, and/or operate technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

For the quarter ended June 30, 2023, we had two reportable segments: local media and tennis. Prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), we had one additional reportable segment, local sports. The local media segment consists primarily of our 185 broadcast television stations in 86 markets, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements ("LMA"), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements ("JSA") and shared services agreements ("SSA")). These stations broadcast 639 channels as of June 30, 2023. For the purpose of this report, these 185 stations and 639 channels are referred to as "our" stations and channels. The tennis segment consists of Tennis Channel, a cable network which includes coverage of many of tennis' top tournaments and original professional sports and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. The local sports segment consisted primarily of our Bally Sports network brands ("Bally RSNs"), the Marquee Sports Network ("Marquee") joint venture, and a minority equity interest in the Yankee Entertainment and Sports Network, LLC ("YES Network") through February 28, 2022. On March 1, 2022, the Bally RSNs, Marquee, and YES Network were deconsolidated from our financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC below. Through February 28, 2022, we refer to the Bally RSNs and Marquee as "the RSNs". The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas.

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner's proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs.

Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees.

Company Reorganization

On April 3, 2023, the company formerly known as Sinclair Broadcast Group, Inc., a Maryland corporation ("Old Sinclair"), entered into an Agreement of Share Exchange and Plan of Reorganization (the "Share Exchange Agreement") with Sinclair, and Sinclair Holdings, LLC, a Maryland limited liability company ("Sinclair Holdings"). The purpose of the transactions contemplated by the Share Exchange Agreement was to effect a holding company reorganization in which Sinclair would become the publicly-traded parent company of Old Sinclair.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Effective at 12:00 am Eastern U.S. time on June 1, 2023 (the "Share Exchange Effective Time"), pursuant to the Share Exchange Agreement and Articles of Share Exchange filed with the Maryland State Department of Assessments and Taxation, the share exchange between Sinclair and Old Sinclair was completed (the "Share Exchange"). In the Share Exchange, (i) each share or fraction of a share of Old Sinclair's Class A common stock, par value $0.01 per share ("Old Sinclair Class A Common Shares"), outstanding immediately prior to the Share Exchange Effective Time was exchanged on a one-for-one basis for an equivalent share of Sinclair's Class A common stock, par value $0.01 per share ("Sinclair Class A Common Shares"), and (ii) each share or fraction of a share of Old Sinclair's Class B common stock, par value $0.01 per share ("Old Sinclair Class B Common Shares"), outstanding immediately prior to the Share Exchange Effective Time was exchanged on a one-for-one basis for an equivalent share of Sinclair’s Class B common stock, par value $0.01 per share ("Sinclair Class B Common Shares").

Immediately following the Share Exchange Effective Time, Old Sinclair converted from a Maryland corporation to a Maryland limited liability company named Sinclair Broadcast Group, LLC ("SBG"). On the day following the Share Exchange Effective Time (June 2, 2023), Sinclair Holdings became the intermediate holding company between Sinclair and SBG, and SBG transferred certain of its assets (the "Transferred Assets") to Ventures, a new indirect wholly-owned subsidiary of Sinclair. We refer to the Share Exchange and the related steps described above collectively as the "Reorganization." The Transferred Assets included technical and software services companies, intellectual property for the advancement of broadcast technology, and other media and non-media related businesses and assets including real estate, venture capital, private equity, and direct investments, as well as Compulse, a marketing technology and managed services company, and Tennis Channel and related assets. As a result of the Reorganization, the local media segment assets are owned and operated by SBG and the assets of the tennis segment and the Transferred Assets are owned and operated by Ventures.

At the Share Exchange Effective Time, Sinclair's articles of incorporation and bylaws were amended and restated to be the same in all material respects as the existing articles of incorporation and bylaws of Old Sinclair immediately prior to the Share Exchange. As a result, the Sinclair Class A Common Shares confer upon the holders thereof the same rights with respect to Sinclair that the holders of the Old Sinclair Class A Common Shares had with respect to Old Sinclair, and the Sinclair Class B Common Shares confer upon the holders thereof the same rights with respect to Sinclair that the holders of the Old Sinclair Class B Common Shares had with respect to Old Sinclair. Sinclair's Board of Directors, including its committees, and senior management team immediately after the Share Exchange were the same as Old Sinclair's immediately before the Share Exchange.

The Reorganization is considered transactions between entities under common control and as SBG and Ventures are both subsidiaries of Sinclair, there was no impact on the consolidated financial statements of Sinclair.

Deconsolidation of Diamond Sports Intermediate Holdings LLC

On March 1, 2022, Old Sinclair's subsidiary Diamond Sports Intermediate Holdings, LLC, and certain of its subsidiaries (collectively "DSIH"), completed a series of transactions (the "Transaction"). As part of the Transaction, the governance structure of DSIH was modified including changes to the composition of its Board of Managers, resulting in the Company's loss of voting control. As a result, DSIH, whose operations represented the entirety of our local sports segment, was deconsolidated from our consolidated financial statements effective as of March 1, 2022 (the "Deconsolidation"). The consolidated statement of operations for the six months ended June 30, 2022 therefore includes two months of activity related to DSIH prior to the Deconsolidation. Subsequent to February 28, 2022, the assets and liabilities of DSIH are no longer included within our consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with DSIH are referring to the periods prior to the Deconsolidation.

Upon Deconsolidation, we recognized a gain before income taxes of approximately $3,357 million, which is recorded within gain on deconsolidation of subsidiary in our consolidated statements of operations for the six months ended June 30, 2022. Subsequent to the Deconsolidation, we accounted for our equity ownership interest in DSIH under the equity method of accounting. See Note 2. Other Assets for more information.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Interim Financial Statements

The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements.

Broadcast Television Programming

We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to three years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR").

We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows. See Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion.

Non-cash Investing and Financing Activities

Leased assets obtained in exchange for new operating lease liabilities were $4 million and $7 million for the six months ended June 30, 2023 and 2022, respectively. Leased assets obtained in exchange for new finance lease liabilities were $1 million for the six months ended June 30, 2022. Non-cash investing activities included property and equipment purchases of $5 million for the six months ended June 30, 2023.

13

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Revenue Recognition

The following table presents our revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	372	$	46	$	—	$	—	$	418
Advertising revenue	293		14		6		(4)		309
Other media, non-media, and intercompany revenues	34		—		8		(1)		41
Total revenues	$	699	$	60	$	14	$	(5)	$	768
For the six months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	753	$	91	$	—	$	—	$	844
Advertising revenue	589		23		12		(6)		618
Other media, non-media, and intercompany revenues	62		1		19		(3)		79
Total revenues	$	1,404	$	115	$	31	$	(9)	$	1,541
For the three months ended June 30, 2022	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	—	$	430
Advertising revenue	343		11		13		(1)		366
Other media, non-media, and intercompany revenues	32		2		14		(7)		41
Total revenues	$	760	$	58	$	27	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Tennis		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	92	$	433	$	—	$	—	$	1,303
Advertising revenue	656		19		44		27		(9)		737
Other media, non-media, and intercompany revenues	80		3		5		30		(33)		85
Total revenues	$	1,514	$	114	$	482	$	57	$	(42)	$	2,125

Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

14

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations. Deferred revenue was $191 million and $200 million as of June 30, 2023 and December 31, 2022, respectively, of which $134 million and $144 million, respectively, was reflected in other long-term liabilities in our consolidated balance sheets. Deferred revenue recognized during the six months ended June 30, 2023 and 2022, included in the deferred revenue balance as of December 31, 2022 and 2021, was $33 million and $42 million, respectively.

For the three months ended June 30, 2023, two customers accounted for 12% and 10%, respectively, of our total revenues. For the six months ended June 30, 2023, two customers accounted for 11% and 10%, respectively, of our total revenues. For the three months ended June 30, 2022, two customers accounted for 11% and 10%, respectively, of our total revenues. For the six months ended June 30, 2022, three customers accounted for 15%, 14%, and 12%, respectively, of our total revenues. As of June 30, 2023, three customers accounted for 11%, 10%, and 10%, respectively, of our accounts receivable, net. As of December 31, 2022, one customer accounted for 13% of our accounts receivable, net. For purposes of this disclosure, a single customer may include multiple entities under common control.

Income Taxes

Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

Our effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. Our effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the six months ended June 30, 2022 approximated our statutory rate.

We believe that our liability for unrecognized tax benefits could be reduced by up to $1 million in the next twelve months, as a result of the expected statute of limitations expirations, and the resolution of examination issues and settlements with tax authorities.

Share Repurchase Program

On August 4, 2020, the Board of Directors authorized an additional $500 million share repurchase authorization in addition to the previous repurchase authorization of $1 billion. There is no expiration date and currently, management has no plans to terminate this program. For the six months ended June 30, 2023, we repurchased approximately 8.8 million shares of Class A Common Stock for $151 million. As of June 30, 2023, the total remaining purchase authorization was $547 million. All shares were repurchased under an SEC Rule 10b5-1 plan.

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

Subsequent Events

In August 2023, our Board of Directors declared a quarterly dividend of $0.25 per share, payable on September 15, 2023 to holders of record at the close of business on September 1, 2023.

15

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2.              OTHER ASSETS:

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments	$	130	$	113
Other investments	397		442
Note receivable	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	51		44
Total other assets	$	752	$	964

Equity Method Investments

We have a portfolio of investments, including our investment in DSIH (subsequent to the Deconsolidation), and also a number of entities that are primarily focused on the development of real estate and other media and non-media businesses. No investments were individually significant for the periods presented.

Diamond Sports Intermediate Holdings LLC. Subsequent to the Deconsolidation, we began accounting for our equity interest in DSIH under the equity method of accounting. As of March 1, 2022, we reflected the investment in DSIH at fair value, which was determined to be nominal. For the three and six months ended June 30, 2023 and 2022, we recorded no equity method loss related to the investment because the carrying value of the investment is zero and we are not obligated to fund losses incurred by DSIH. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

YES Network Investment. Prior to the Deconsolidation, we accounted for our investment in the YES Network as an equity method investment. We recorded income of $10 million for the six months ended June 30, 2022 related to this investment, which is reflected in (loss) income from equity method investments in our consolidated statements of operations. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Other Investments

We measure our investments, excluding equity method investments, at fair value or, in situations where fair value is not readily determinable, we have the option to value investments at cost plus observable changes in value, less impairment. Additionally, certain investments are measured at net asset value ("NAV").

As of June 30, 2023 and December 31, 2022, we held $186 million and $234 million, respectively, in investments measured at fair value. As of June 30, 2023 and December 31, 2022, we held $197 million and $190 million, respectively, in investments measured at NAV. We recognized fair value adjustment losses of $47 million and $48 million for the three and six months ended June 30, 2023, respectively, and fair value adjustment losses of $105 million and $161 million for the three and six months ended June 30, 2022, respectively, associated with these investments, which are reflected in other expense, net in our consolidated statements of operations. As of June 30, 2023 and December 31, 2022, our unfunded commitments related to our investments valued using the NAV practical expedient totaled $80 million and $88 million, respectively.

Investments accounted for utilizing the measurement alternative were $14 million as of June 30, 2023 and $18 million, net of $7 million of cumulative impairments, as of December 31, 2022. We recorded a $6 million impairment related to one investment for the three and six months ended June 30, 2023, which is reflected in other expense, net in our consolidated statements of operations. There were no adjustments to the carrying amount of investments accounted for utilizing the measurement alternative for either of the three and six months ended June 30, 2022.

16

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note Receivable

We are party to an Accounts Receivable Securitization Facility ("A/R Facility"), held by Diamond Sports Finance SPV, LLC ("DSPV"), an indirect wholly-owned subsidiary of DSIH. Subsequent to the Deconsolidation, transactions related to the A/R Facility are no longer eliminated as intercompany transactions and, therefore, are reflected in our consolidated financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. On May 10, 2023, DSPV paid the Company approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. As of June 30, 2023, the note receivable due to the Company had no outstanding balance and, as of December 31, 2022, the note receivable due to the Company was $193 million, which is reflected in other assets in our consolidated balance sheets. The maximum aggregate commitment under the A/R Facility is $50 million and the A/R Facility has a maturity date of September 23, 2024.

3.              NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement and Notes

The bank credit agreement of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG (the "Bank Credit Agreement"), includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of June 30, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of June 30, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2023.

In June 2023, we purchased $3 million, $15 million, and $13 million aggregate principal amount of the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"), respectively, in open market transactions for consideration of $3 million, $8 million, and $8 million, respectively. The STG Notes acquired in June 2023 were canceled immediately following their acquisition. We recognized a gain on extinguishment of the STG Notes of $11 million for the three and six months ended June 30, 2023.

In July 2023, we purchased $0.5 million aggregate principal amount of the 5.125% Senior Notes due 2027 in open market transactions for consideration of $0.4 million and repaid $1 million aggregate principal amount of the Term Loan B-2, due September 30, 2026, for consideration of $0.8 million. The STG Notes acquired in July 2023 were canceled immediately following their acquisition.

Finance leases to affiliates

The current portion of notes payable, finance leases, and commercial bank financing in our consolidated balance sheets includes finance leases to affiliates of $2 million and $3 million as of June 30, 2023 and December 31, 2022, respectively. Notes payable, finance leases, and commercial bank financing, less current portion, in our consolidated balance sheets includes finances leases to affiliates of $6 million as of both June 30, 2023 and December 31, 2022. See Note 9. Related Person Transactions.

Debt of variable interest entities and guarantees of third-party obligations

STG jointly, severally, unconditionally, and irrevocably guaranteed $2 million of debt of certain third parties as of both June 30, 2023 and December 31, 2022, all of which related to consolidated VIEs and is included in our consolidated balance sheets as of both June 30, 2023 and December 31, 2022. We provide a guarantee of certain obligations of a regional sports network subject to a maximum annual amount of $112 million with annual escalations of 4% for the next six years. We have determined that, as of June 30, 2023, it is not probable that we would have to perform under any of these guarantees.

17

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Interest Rate Swap

We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion. As of June 30, 2023, the fair value of the interest rate swap was an asset of $8 million, which is recorded in other assets in our consolidated balance sheets.

4.              REDEEMABLE NONCONTROLLING INTERESTS:

We account for redeemable noncontrolling interests in accordance with ASC 480, Distinguishing Liabilities from Equity, and classify them as mezzanine equity in our consolidated balance sheets because their possible redemption is outside of the control of the Company. Our redeemable non-controlling interests consist of the following:

Redeemable Subsidiary Preferred Equity. On August 23, 2019, Diamond Sports Holdings LLC ("DSH"), an indirect parent of Diamond Sports Group, LLC ("DSG") and indirect wholly-owned subsidiary of the Company, issued preferred equity (the "Redeemable Subsidiary Preferred Equity").

Dividends accrued during the six months ended June 30, 2023 were $3 million and during the three and six months ended June 30, 2022 were $3 million and $6 million, respectively, and are reflected in net income attributable to the redeemable noncontrolling interests in our consolidated statements of operations. Dividends accrued during all of the six months ended June 30, 2023 and the three and six months ended June 30, 2022 were paid-in-kind and added to the liquidation preference, which was partially offset by certain required cash tax distributions.

The balance, net of issuance costs, and the liquidation preference of the Redeemable Subsidiary Preferred Equity were $194 million and $198 million, respectively, as of December 31, 2022. On February 10, 2023, we purchased the remaining 175,000 units of the Redeemable Subsidiary Preferred Equity for an aggregate purchase price of $190 million, representing 95% of the sum of the remaining unreturned capital contribution of $175 million, and accrued and unpaid dividends up to, but not including, the date of purchase.

5.              COMMITMENTS AND CONTINGENCIES:

Litigation

We are a party to lawsuits, claims, and regulatory matters from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. Except as noted below, we do not believe the outcome of these matters, individually or in the aggregate, will have a material effect on our financial statements. 

FCC Litigation Matters

On May 22, 2020, the Federal Communications Commission ("FCC") released an Order and Consent Decree pursuant to which the Company agreed to pay $48 million to resolve the matters covered by a Notice of Apparent Liability for Forfeiture ("NAL") issued in December 2017 proposing a $13 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries, the FCC's investigation of the allegations raised in the Hearing Designation Order issued in connection with the Company's proposed acquisition of Tribune, and a retransmission related matter. The Company submitted the $48 million payment on August 19, 2020. As part of the consent decree, the Company also agreed to implement a 4-year compliance plan. Two petitions were filed on June 8, 2020 seeking reconsideration of the Order and Consent Decree. The Company filed an opposition to the petitions on June 18, 2020, and the petitions remain pending.

On September 1, 2020, one of the individuals who filed a petition for reconsideration of the Order and Consent Decree filed a petition to deny the license renewal application of WBFF(TV), Baltimore, MD, and the license renewal applications of two other Baltimore, MD stations with which the Company has a JSA or LMA, Deerfield Media station WUTB(TV) and Cunningham Broadcasting Corporation ("Cunningham") station WNUV(TV). The Company filed an opposition to the petition on October 1, 2020, and the petition remains pending.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

On September 2, 2020, the FCC adopted a Memorandum Opinion and Order and NAL against the licensees of several stations with whom the Company has LMAs, JSAs, and/or SSAs in response to a complaint regarding those stations' retransmission consent negotiations. The NAL proposed a $0.5 million penalty for each station, totaling $9 million. The licensees filed a response to the NAL on October 15, 2020, asking the Commission to dismiss the proceeding or, alternatively, to reduce the proposed forfeiture to $25,000 per station. On July 28, 2021, the FCC issued a forfeiture order in which the $0.5 million penalty was upheld for all but one station. A Petition for Reconsideration of the forfeiture order was filed on August 7, 2021. On March 14, 2022, the FCC released a Memorandum Opinion and Order and Order on Reconsideration, reaffirming the forfeiture order and dismissing (and in the alternative, denying) the Petition for Reconsideration. The Company is not a party to this forfeiture order; however, our consolidated financial statements include an accrual of additional expenses of $8 million for the above legal matters during the year ended December 31, 2021, as we consolidate these stations as VIEs.

On September 21, 2022, the FCC released an NAL against the licensees of a number of stations, including 83 Company stations and several stations with whom the Company has LMAs, JSAs, and/or SSAs, for violation of the FCC's limitations on commercial matter in children's television programming related to KidsClick network programming distributed by the Company in 2018. The NAL proposed a fine of $2.7 million against the Company, and fines ranging from $20,000 to $26,000 per station for the other licensees, including the LMA, JSA, and/or SSA stations, for a total of $3.4 million. As of June 30, 2023, we have accrued $3.4 million. On October 21, 2022, the Company filed a written response seeking reduction of the proposed fine amount, and the matter remains pending.

Other Litigation Matters

On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice ("DOJ"). This consent decree resolves the DOJ's investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The U.S. District Court for the District of Columbia entered the consent decree on May 22, 2019. The consent decree is not an admission of any wrongdoing by the Company and does not subject the Company to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the DOJ has required in previous consent decrees in other industries. The consent decree also requires the Company's stations not to exchange pacing and certain other information with other stations in their local markets, which the Company's management had already instructed them not to do.

The Company is aware of twenty-two putative class action lawsuits that were filed against the Company following published reports of the DOJ investigation into the exchange of pacing data within the industry. On October 3, 2018, these lawsuits were consolidated in the Northern District of Illinois. The consolidated action alleges that the Company and thirteen other broadcasters conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States and engaged in unlawful information sharing, in violation of the Sherman Antitrust Act. The consolidated action seeks damages, attorneys' fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The Court denied the Defendants' motion to dismiss on November 6, 2020. Since then, the Plaintiffs have served the Defendants with written discovery requests and have begun taking depositions of the employees of the defendants and certain third parties. The Court has set a pretrial schedule which currently requires discovery to be completed by December 15, 2023, or 90 days after the Special Master certifies completion of the privilege review, whichever date is later, and requires briefing on class certification to be completed within 195 days after that date. The Company believes the lawsuits are without merit and intends to vigorously defend itself against all such claims.

On July 19, 2023, as part of the ongoing bankruptcy proceedings of DSG, an independently managed and unconsolidated subsidiary of Sinclair, DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC, filed a complaint, under seal, in the United States Bankruptcy Court for the Southern District of Texas naming certain subsidiaries of Sinclair, including SBG and STG, David D. Smith, Sinclair's Executive Chairman, Christopher S. Ripley, Sinclair's President and Chief Executive Officer, Lucy A. Rutishauser, Sinclair's Executive Vice President & Chief Financial Officer, and Scott Shapiro, Sinclair's Executive Vice President, Corporate Development and Strategy, as defendants.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

In the complaint, plaintiffs challenge a series of transactions involving SBG and certain of its subsidiaries, on the one hand, and DSG and its subsidiaries, on the other hand, since SBG acquired the former Fox Sports regional sports networks from The Walt Disney Company in August 2019. The complaint alleges, among other things, that the management services agreement entered into by STG and DSG was not fair to DSG and was designed to benefit STG and SBG; that the Bally's Corporation ("Bally's") transaction in November 2020 through which Bally's acquired naming rights to certain regional sports networks was not fair to DSG and was designed to benefit STG and SBG; and that certain distributions made by DSG that were used to pay down preferred equity of DSH, were inappropriate and were conducted at a time when DSG was insolvent. The complaint alleges that SBG and its subsidiaries (other than DSG and its subsidiaries) received payments or indirect benefits of approximately $1.5 billion as a result of the alleged misconduct. The complaint asserts a variety of claims, including certain fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties. The plaintiffs are seeking, among other relief, avoidance of fraudulent transfers and unlawful distributions, and unspecified monetary damages to be determined. The defendants believe the allegations in this lawsuit are without merit and intend to vigorously defend against plaintiffs' claims.

While at this early stage of the proceedings it is not possible to determine the probability of any outcome or probability or amount of any loss, in the event of an unfavorable outcome, Sinclair's subsidiaries may be required to pay monetary damages, which could materially and adversely affect Sinclair's financial and results of operations.

6.              EARNINGS PER SHARE:

The following table reconciles income (numerator) and shares (denominator) used in our computations of basic and diluted earnings per share for the periods presented (in millions, except share amounts which are reflected in thousands):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Income (Numerator)
Net (loss) income	$	(87)	$	(6)	$	106	$	2,610
Net (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Net income attributable to the noncontrolling interests	(2)		—		(14)		(25)
Numerator for basic and diluted earnings per common share available to common shareholders	$	(89)	$	(11)	$	96	$	2,576
Shares (Denominator)
Basic weighted-average common shares outstanding	64,012		70,897		66,862		71,527
Dilutive effect of stock-settled appreciation rights and outstanding stock options	—		—		85		6
Diluted weighted-average common and common equivalent shares outstanding	64,012		70,897		66,947		71,533

The following table shows the weighted-average stock-settled appreciation rights and outstanding stock options (in thousands) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2023	2022	2023	2022
Weighted-average stock-settled appreciation rights and outstanding stock options excluded	3,693	3,645	3,645	3,095

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

7.              SEGMENT DATA:

During the period ended June 30, 2023 we modified our segment reporting to align with the new organizational structure of the Company discussed within Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies. The segment information within the comparative periods have been revised to reflect this new presentation. During the period ended June 30, 2023, we measured segment performance based on operating income (loss). For the quarter ended June 30, 2023, we had two reportable segments, local media and tennis. Prior to the Deconsolidation, we had one additional reportable segment, local sports. Our local media segment includes our television stations, original networks and content and provides these through free over-the-air programming to television viewing audiences for stations in markets located throughout the continental United States, as well as distributes the content of these stations to MVPDs for distribution to their customers in exchange for contractual fees. See Revenue Recognition under Note 1. Nature of Operations and Summary of Significant Accounting Policies for further detail. Our tennis segment provides viewers coverage of many of tennis' top tournaments and original professional sport and tennis lifestyle shows. Our local sports segment provided viewers with live professional sports content and included the Bally RSNs, Marquee, and our investment in the YES Network, prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. All of our businesses are located within the United States. As a result of the Reorganization, the local media segment assets are owned and operated by SBG, the assets of the tennis segment are owned and operated by Ventures, and the other Transferred Assets, which are included in other and corporate, are owned and operated by Ventures.

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations		Consolidated
Assets	$	4,315	$	309	$	1,577	$	—	$	6,201

For the three months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	699	(b)	$	60	$	14	$	(5)	(a)	$	768
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			5		1		—			73
Amortization of program contract costs	19			—		—		—			19
Corporate general and administrative expenses	46			—		16		—			62
(Gain) loss on asset dispositions and other, net of impairment	(2)			—		7		—			5
Operating income (loss)	22			3		(28)		—			(3)
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		—			76
Loss from equity method investments	—			—		(1)		—			(1)

For the six months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	115	$	31	$	(9)	(a)	$	1,541
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		3		(1)			138
Amortization of program contract costs	41			—		—		—			41
Corporate general and administrative expenses	78			—		42		—			120
(Gain) loss on asset dispositions and other, net of impairment	(3)			—		14		—			11
Operating income (loss)	63			21		(66)		—			18
Interest expense including amortization of debt discount and deferred financing costs	150			—		—		—			150
Income from equity method investments	—			—		30		—			30

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended June 30, 2022	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	58	$	27	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			5		2		(1)			67
Amortization of program contract costs	21			—		—		—			21
Corporate general and administrative expenses	34			—		4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—		—			(4)
Operating income (loss)	116			—		(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			—		3		(3)			54
Income from equity method investments	—			—		3		—			3

For the six months ended June 30, 2022	Local Media			Tennis		Local Sports (c)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	114	$	482	$	57	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			10		54		4		(2)			188
Amortization of sports programming rights	—			—		326		—		—			326
Amortization of program contract costs	46			—		—		—		—			46
Corporate general and administrative expenses	77			—		1		7		—			85
Gain on deconsolidation of subsidiary	—			—		—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		—		(1)		—			(9)
Operating income (loss)	211			24		(4)		3,342		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			—		72		6		(8)			169
Income from equity method investments	—			—		10		5		—			15

(a)Includes $2 million and $3 million for the three and six months ended June 30, 2023, respectively, and $3 million and $10 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by other to local media, which is eliminated in consolidation; $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation; and $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to local media from tennis, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8.              VARIABLE INTEREST ENTITIES: 

Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational, and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational, and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.

A subsidiary of DSIH is a party to a joint venture associated with Marquee. Marquee is party to a long term telecast rights agreement which provides the rights to air certain live game telecasts and other content, which we guarantee. In connection with a prior acquisition, we became party to a joint venture associated with one other regional sports network. DSIH participated significantly in the economics and had the power to direct the activities which significantly impacted the economic performance of these regional sports networks, including sales and certain operational services. As of March 1, 2022, as a result of the Deconsolidation, we no longer consolidate these regional sports networks. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The amounts above represent the combined assets and liabilities of the VIEs described above, for which we are the primary beneficiary. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $130 million as of both June 30, 2023 and December 31, 2022, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of June 30, 2023, all of the liabilities are non-recourse to us except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar.

Other VIEs 

We have several investments in entities which are considered VIEs. However, we do not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.

The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary were $201 million and $187 million as of June 30, 2023 and December 31, 2022, respectively, and are included in other assets in our consolidated balance sheets. See Note 2. Other Assets for more information related to our equity investments. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to equity method investments and other investments are recorded in (loss) income from equity method investments and other expense, net, respectively, in our consolidated statements of operations. We recorded gains of $3 million and $38 million for the three and six months ended June 30, 2023, respectively, and gains of $5 million and $25 million for the three and six months ended June 30, 2022, respectively, related to these investments.

In conjunction with the Transaction, the composition of the DSIH board of managers was modified resulting in our loss of voting control over DSIH. We hold substantially all of the equity of DSIH and provide certain management and general and administrative services to DSIH. However, it was determined that we are not the primary beneficiary because we lack the ability to control the activities that most significantly drive the economics of the business. The carrying amount of our investment in DSIH is zero and there is no obligation for us to provide additional financial support. We are also party to the A/R Facility held by an indirect wholly-owned subsidiary of DSIH which has a maturity date of September 23, 2024. On May 10, 2023, DSPV paid the Company approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. There was no outstanding balance as of June 30, 2023 and an outstanding balance of approximately $193 million as of December 31, 2022. As of June 30, 2023, our aggregate commitment under the A/R Facility is $50 million. See Note Receivable within Note 2. Other Assets.

9.              RELATED PERSON TRANSACTIONS:

Transactions with our controlling shareholders

David, Frederick, J. Duncan, and Robert Smith (collectively, the "controlling shareholders") are brothers and hold substantially all of our Class B Common Stock and some of our Class A Common Stock. We engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases. Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders. Lease payments made to these entities were $1 million and $3 million for the three and six months ended June 30, 2023, respectively, and $1 million and $3 million for the three and six months ended June 30, 2022, respectively. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of $0.1 million and $0.2 million for the three and six months ended June 30, 2023, respectively. We incurred expenses of less than $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations, including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah; and KTXD-TV in Dallas, Texas (collectively, the "Cunningham Stations"). Certain of our stations provide services to the Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 8. Variable Interest Entities, for further discussion of the scope of services provided under these types of arrangements.

All of the non-voting stock of the Cunningham Stations is owned by trusts for the benefit of the children of our controlling shareholders. We consolidate certain subsidiaries of Cunningham with which we have variable interests through various arrangements related to the Cunningham Stations.

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2028 and there is one additional five-year renewal term remaining with final expiration on July 1, 2033. We also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant us the right to acquire, and grant Cunningham the right to require us to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station's annual net broadcast revenue or (ii) $6 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The cumulative prepayments made under these purchase agreements were $63 million and $61 million as of June 30, 2023 and December 31, 2022, respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both June 30, 2023 and December 31, 2022, was approximately $54 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and have a purchase option to acquire for $0.2 million. We paid Cunningham, under these agreements, $3 million and $6 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively.

The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WDBB-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between April 2025 and November 2029 and certain stations have renewal provisions for successive eight-year periods.

As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported in our consolidated statements of operations. Our consolidated revenues include $33 million and $69 million for the three and six months ended June 30, 2023, respectively, and $37 million and $71 million for the three and six months ended June 30, 2022, respectively, related to the Cunningham Stations.

We have an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which Cunningham has an LMA that expires in June 2025. Under the agreement, Cunningham paid us an initial fee of $1 million and pays us $0.3 million annually for master control services plus the cost to maintain and repair the equipment. In addition, we have an agreement with Cunningham to provide a news share service with the Johnstown, PA station for an annual fee of $0.6 million, which increases by 3% on each anniversary and expires in November 2024.

We have multi-cast agreements with Cunningham Stations in the Eureka/Chico-Redding, California; Tri-Cities, Tennessee; Anderson, South Carolina; Baltimore, Maryland; Portland, Maine; Charleston, West Virginia; Dallas, Texas; and Greenville, North Carolina markets. In exchange for carriage of these networks in their markets, we paid $0.5 million and $1 million for the three and six months ended June 30, 2023, respectively, and $1 million for both the three and six months ended June 30, 2022 under these agreements.

MileOne Autogroup Inc.

We sell advertising time to certain operating subsidiaries of MileOne Autogroup, Inc. ("MileOne"), including automobile dealerships, body shops, and an automobile leasing company. David D. Smith, our Executive Chairman, has a controlling interest in, and is a member of the Board of Directors of, MileOne. We received payments for advertising totaling less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022.

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SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Leased property by real estate ventures

Certain of our real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent payments received under these leases were $0.3 million and $0.7 million for the three and six months ended June 30, 2023, respectively, and $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.

Diamond Sports Intermediate Holdings LLC

Subsequent to February 28, 2022, we accounted for our equity interest in DSIH as an equity method investment. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Management Services Agreement. In 2019, we entered into a management services agreement with DSG, a wholly-owned subsidiary of DSIH, in which we provide DSG with affiliate sales and marketing services and general and administrative services. The contractual annual amount due from DSG for these services during the fiscal year ended December 31, 2023 is $78 million, which is subject to increases on an annual basis. Additionally, the agreement contains an incentive fee payable to us calculated based on certain terms contained within new or renewed distribution agreements with Distributors. As a condition to the Transaction, DSG will defer the cash payment of a portion of its management fee payable to the Company over the next four years. Pursuant to this agreement, the local media segment recorded $13 million and $22 million of revenue for the three and six months ended June 30, 2023, respectively, and $10 million and $38 million of revenue for the three and six months ended June 30, 2022, respectively, of which $24 million for the six months ended June 30, 2022 was eliminated in consolidation prior to the Deconsolidation. We will not recognize the portion of deferred management fees as revenue until such fees are determined to be collectible.

Distributions. DSIH made distributions to DSH for tax payments on the dividends of the Redeemable Subsidiary Preferred Equity of $2 million and $3 million during the three and six months ended June 30, 2022, respectively.

Note receivable. We received payments totaling $206 million and $209 million during the three and six months ended June 30, 2023, respectively, and $10 million and $60 million during the three and six months ended June 30, 2022, respectively, from DSPV related to the note receivable associated with the A/R Facility, including $199 million from DSPV on May 10, 2023, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses.

We recorded revenue of $6 million and $11 million during the three and six months ended June 30, 2023, respectively, and $4 million and $5 million during the three and six months ended June 30, 2022, respectively, related to certain other transactions between DSIH and the Company.

Other equity method investees

YES Network. In August 2019, YES Network, which was accounted for as an equity method investment prior to the Deconsolidation, entered into a management services agreement with the Company, in which we provide certain services for an initial term that expires on August 29, 2025. The agreement will automatically renew for two 2-year renewal terms, with a final expiration on August 29, 2029. Pursuant to the terms of the agreement, the YES Network paid us a management services fee of $1 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

DSIH has a minority interest in certain mobile production businesses. Prior to the Deconsolidation, we accounted for these as equity method investments. DSIH made payments to these businesses for production services totaling $5 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

We have a minority interest in a sports marketing company, which we account for as an equity method investment. We made payments to this business for marketing services totaling $2 million for the six months ended June 30, 2022.

26

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Sports Programming Rights

Affiliates of six professional teams had non-controlling equity interests in certain of DSIH's RSNs. DSIH paid $61 million for the six months ended June 30, 2022 under sports programming rights agreements covering the broadcast of regular season games associated with these professional teams. Prior to the Deconsolidation, these payments were recorded in our consolidated statements of operations and cash flows. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Employees

Jason Smith, an employee of the Company, is the son of Frederick Smith, who is a Vice President of the Company and a member of the Company's Board of Directors. Jason Smith received total compensation of $0.2 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively, consisting of salary and bonus. Ethan White, an employee of the Company, is the son-in-law of J. Duncan Smith, who is a Vice President of the Company and Secretary of the Company's Board of Directors. Ethan White received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus, and was granted 1,252 shares of restricted stock, vesting over two years, during the six months ended June 30, 2023. Amberly Thompson, an employee of the Company, is the daughter of Donald Thompson, who is an Executive Vice President and Chief Human Resources Officer of the Company. Amberly Thompson received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. Edward Kim, an employee of the company, is the brother-in-law of Christopher Ripley, who is the President and Chief Executive Officer of the Company. Edward Kim received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary, and was granted 516 and 302 shares of restricted stock during the six months ended June 30, 2023 and 2022, respectively, vesting over two years.

Frederick Smith is the brother of David Smith, Executive Chairman of the Company and Chairman of the Company's Board of Directors; Robert Smith, a member of the Company's Board of Directors; and J. Duncan Smith. Frederick Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. J. Duncan Smith is the brother of David Smith, Frederick Smith, and Robert Smith. J. Duncan Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus.

10.              FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

27

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities	N/A		$	5	N/A		$	6
Money market funds	N/A		523		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a)	N/A		123		N/A		153
Interest rate swap (b)	N/A		8		N/A		—
STG (c):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (c)	7		7		8		8
Debt of non-media subsidiaries (c)	16		16		16		16
Level 3:
Investments in equity securities (d)	N/A		58		N/A		75

N/A - Not applicable

(a)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(d)On November 18, 2020, we entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 we recorded a fair value adjustment loss of $17 million and during the three and six months ended June 30, 2022 we recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.

28

SINCLAIR, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(17)		Measurement adjustments	(17)
Fair value at June 30, 2023	$	58	Fair value at June 30, 2023	$	58

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

29

ITEM 1B.  FINANCIAL STATEMENTS OF SINCLAIR BROADCAST GROUP, LLC

30

SINCLAIR BROADCAST GROUP, LLC

CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data) (Unaudited) 

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	368	$	884
Accounts receivable, net of allowance for doubtful accounts of $4 and $5, respectively	544		612
Income taxes receivable	6		5
Prepaid expenses and other current assets	146		182
Total current assets	1,064		1,683
Property and equipment, net	689		728
Operating lease assets	132		145
Goodwill	2,016		2,088
Indefinite-lived intangible assets	123		150
Customer relationships, net	265		444
Other definite-lived intangible assets, net	450		502
Other assets	255		964
Total assets (a)	$	4,994	$	6,704
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	378	$	397
Current portion of notes payable, finance leases, and commercial bank financing	36		38
Current portion of operating lease liabilities	20		23
Current portion of program contracts payable	48		83
Other current liabilities	56		67
Total current liabilities	538		608
Notes payable, finance leases, and commercial bank financing, less current portion	4,170		4,227
Operating lease liabilities, less current portion	145		154
Program contracts payable, less current portion	7		10
Deferred tax liabilities	394		610
Other long-term liabilities	212		220
Total liabilities (a)	5,466		5,829
Commitments and contingencies (See Note 5)
Redeemable noncontrolling interests	—		194
SBG member's equity:
Accumulated deficit	(418)		—
Accumulated other comprehensive income	7		—
Total SBG member's equity	(411)		—
Old Sinclair shareholders' equity:
Old Sinclair Class A Common Stock, $.01 par value, 500,000,000 shares authorized and 45,847,879 shares issued and outstanding as of December 31, 2022	—		1
Old Sinclair Class B Common Stock, $.01 par value, 140,000,000 shares authorized and 23,775,056 shares issued and outstanding as of December 31, 2022, convertible into Old Sinclair Class A Common Stock	—		—
Additional paid-in capital	—		624
Retained earnings	—		122
Accumulated other comprehensive income	—		1
Total Old Sinclair shareholders' equity	—		748
Noncontrolling interests	(61)		(67)
Total equity	(472)		681
Total liabilities, redeemable noncontrolling interests, and equity	$	4,994	$	6,704

 The accompanying notes are an integral part of these unaudited consolidated financial statements.

(a)     SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

31

SINCLAIR BROADCAST GROUP, LLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data) (Unaudited) 

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
REVENUES:
Media revenues	$	740	$	831	$	1,506	$	2,106
Non-media revenues	3		6		10		19
Total revenues	743		837		1,516		2,125
OPERATING EXPENSES:
Media programming and production expenses	397		403		795		1,161
Media selling, general and administrative expenses	184		195		375		415
Amortization of program contract costs	19		21		41		46
Non-media expenses	7		10		19		23
Depreciation of property and equipment	31		24		55		52
Corporate general and administrative expenses	58		38		116		85
Amortization of definite-lived intangible assets	39		43		80		136
Gain on deconsolidation of subsidiary	—		—		—		(3,357)
Loss (gain) on asset dispositions and other, net of impairment	4		(4)		10		(9)
Total operating expenses (gains)	739		730		1,491		(1,448)
Operating income	4		107		25		3,573
OTHER INCOME (EXPENSE):
Interest expense including amortization of debt discount and deferred financing costs	(76)		(54)		(150)		(169)
Gain on extinguishment of debt	11		3		11		3
Income from equity method investments	—		3		31		15
Other expense, net	(64)		(105)		(53)		(165)
Total other expense, net	(129)		(153)		(161)		(316)
(Loss) income before income taxes	(125)		(46)		(136)		3,257
INCOME TAX BENEFIT (PROVISION)	26		40		230		(647)
NET (LOSS) INCOME	(99)		(6)		94		2,610
Net (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Net income attributable to the noncontrolling interests	(2)		—		(14)		(25)
NET (LOSS) INCOME ATTRIBUTABLE TO SBG	$	(101)	$	(11)	$	84	$	2,576

The accompanying notes are an integral part of these unaudited consolidated financial statements.

32

SINCLAIR BROADCAST GROUP, LLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in millions) (Unaudited)

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Net (loss) income	$	(99)	$	(6)	$	94	$	2,610
Unrealized gain on interest rate swap, net of tax	9		—		6		—
Share of other comprehensive income of equity method investments	—		—		—		3
Comprehensive (loss) income	(90)		(6)		100		2,613
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Comprehensive income attributable to the noncontrolling interests	(2)		—		(14)		(25)
Comprehensive (loss) income attributable to SBG	$	(92)	$	(11)	$	90	$	2,579

The accompanying notes are an integral part of these unaudited consolidated financial statements.

33

SINCLAIR BROADCAST GROUP, LLC

CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS

(in millions, except share and per share data) (Unaudited)

	Three Months Ended June 30, 2022
			Old Sinclair Shareholders
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total  Equity
			Shares	Values		Shares	Values
BALANCE, March 31, 2022	$	184	47,934,815	$	1	23,775,056	$	—	$	657	$	109	$	(2)	$	(62)	$	703
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock ($0.25 per share)	—		—	—		—	—		—		(19)		—		—		(19)
Repurchases of Old Sinclair Class A Common Stock	—		(1,585,834)	—		—	—		(36)		—		—		—		(36)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	—		121,565	—		—	—		7		—		—		—		7
Distributions to noncontrolling interests	(2)		—	—		—	—		—		—		—		(2)		(2)
Net income (loss)	5		—	—		—	—		—		(11)		—		—		(11)
BALANCE, June 30, 2022	$	187	46,470,546	$	1	23,775,056	$	—	$	628	$	79	$	(2)	$	(64)	$	642
	Six Months Ended June 30, 2022
			Old Sinclair Shareholders
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		(Accumulated Deficit) Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total  (Deficit) Equity
			Shares	Values		Shares	Values
BALANCE, December 31, 2021	$	197	49,314,303	$	1	23,775,056	$	—	$	691	$	(2,460)	$	(2)	$	64	$	(1,706)
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock ($0.50 per share)	—		—	—		—	—		—		(37)		—		—		(37)
Repurchases of Old Sinclair Class A Common Stock	—		(4,058,319)	—		—	—		(104)		—		—		—		(104)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	—		1,214,562	—		—	—		41		—		—		—		41
Distributions to noncontrolling interests	(3)		—	—		—	—		—		—		—		(5)		(5)
Other comprehensive income	—		—	—		—	—		—		—		3		—		3
Deconsolidation of subsidiary	(16)		—	—		—	—		—		—		(3)		(148)		(151)
Net income	9		—	—		—	—		—		2,576		—		25		2,601
BALANCE, June 30, 2022	$	187	46,470,546	$	1	23,775,056	$	—	$	628	$	79	$	(2)	$	(64)	$	642

 The accompanying notes are an integral part of these unaudited consolidated financial statements.

34

SINCLAIR BROADCAST GROUP, LLC

CONSOLIDATED STATEMENTS OF MEMBER'S EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS

(in millions, except share and per share data) (Unaudited)

	Three Months Ended June 30, 2023
			SBG Member
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive (Loss) Income		Noncontrolling Interests		Total Member's Equity (Deficit)
			Shares	Values		Shares	Values
BALANCE, March 31, 2023	$	—	44,360,502	$	1	23,775,056	$	—	$	602	$	289	$	(2)	$	(59)	$	831
Repurchases of Old Sinclair Class A Common Stock	—		(5,201,809)	—		—	—		(100)		—		—		—		(100)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	—		178,722	—		—	—		9		—		—		—		9
Old Sinclair Class A and Class B Common Stock converted to SBG member's equity	—		(39,337,415)	(1)		(23,775,056)	—		—		—		—		—		(1)
Deemed dividend to parent	—		—	—		—	—		(511)		(606)		—		(1)		(1,118)
Distributions to noncontrolling interests	—		—	—		—	—		—				—		(3)		(3)
Other comprehensive income	—		—	—		—	—		—		—		9		—		9
Net (loss) income	—		—	—		—	—		—		(101)		—		2		(99)
BALANCE, June 30, 2023	$	—	—	$	—	—	$	—	$	—	$	(418)	$	7	$	(61)	$	(472)
	Six Months Ended June 30, 2023
			SBG Member
	Redeemable Noncontrolling Interests		Class A Common Stock			Class B Common Stock			Additional Paid-In Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income		Noncontrolling Interests		Total Member's Equity (Deficit)
			Shares	Values		Shares	Values
BALANCE, December 31, 2022	$	194	45,847,879	$	1	23,775,056	$	—	$	624	$	122	$	1	$	(67)	$	681
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock ($0.25 per share)	—		—	—		—	—		—		(18)		—		—		(18)
Repurchases of Old Sinclair Class A Common Stock	—		(8,785,022)	—		—	—		(153)		—		—		—		(153)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	—		2,274,558	—		—	—		40		—		—		—		40
Old Sinclair Class A and Class B Common Stock converted to SBG member's equity	—		(39,337,415)	(1)		(23,775,056)	—		—		—		—		—		(1)
Deemed dividend to parent	—		—	—		—	—		(511)		(606)		—		(1)		(1,118)
Repurchase of redeemable subsidiary preferred equity	(190)		—	—		—	—		—		—		—		—		—
Distributions to noncontrolling interests	—		—	—		—	—		—		—		—		(7)		(7)
Other comprehensive income	—		—	—		—	—		—		—		6		—		6
Net (loss) income	(4)		—	—		—	—		—		84		—		14		98
BALANCE, June 30, 2023	$	—	—	$	—	—	$	—	$	—	$	(418)	$	7	$	(61)	$	(472)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

35

SINCLAIR BROADCAST GROUP, LLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions) (Unaudited)

	Six Months Ended June 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	94	$	2,610
Adjustments to reconcile net income to net cash flows from operating activities:
Amortization of sports programming rights	—		326
Amortization of definite-lived intangible and other assets	80		136
Depreciation of property and equipment	55		52
Amortization of program contract costs	41		46
Stock-based compensation	34		38
Deferred tax (benefit) provision	(232)		654
Loss (gain) on asset dispositions and other, net of impairment	10		(9)
Gain on deconsolidation of subsidiary	—		(3,357)
Income from equity method investments	(31)		(15)
Loss from investments	78		159
Distributions from investments	28		31
Sports programming rights payments	—		(325)
Rebate payments to distributors	—		(15)
Gain on extinguishment of debt	(11)		(3)
Change in assets and liabilities, net of acquisitions, deconsolidation of subsidiary, and asset transfer to Ventures:
Decrease in accounts receivable	33		29
Increase in prepaid expenses and other current assets	(34)		(107)
Increase in accounts payable and accrued and other current liabilities	21		29
Net change in net income taxes payable/receivable	(1)		(21)
Decrease in program contracts payable	(46)		(52)
Other, net	3		1
Net cash flows from operating activities	122		207
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	(41)		(45)
Deconsolidation of subsidiary cash	—		(315)
Purchases of investments	(37)		(61)
Distributions from investments	204		81
Other, net	4		11
Net cash flows from (used in) investing activities	130		(329)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	—		728
Repayments of notes payable, commercial bank financing, and finance leases	(37)		(845)
Repurchase of outstanding Old Sinclair Class A Common Stock	(153)		(104)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(18)		(36)
Dividends paid on redeemable subsidiary preferred equity	—		(3)
Repurchase of redeemable subsidiary preferred equity	(190)		—
Distributions to member	(360)		—
Distributions to noncontrolling interests, net	(7)		(5)
Other, net	(3)		(12)
Net cash flows used in financing activities	(768)		(277)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(516)		(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884		819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	368	$	420

The accompanying notes are an integral part of these unaudited consolidated financial statements.

36

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.              NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

Sinclair Broadcast Group, LLC ("SBG"), a Maryland limited liability company and a wholly owned subsidiary of Sinclair, Inc. ("Sinclair"), is a diversified media company with national reach and a strong focus on providing high-quality content on SBG's local television stations, digital properties, and regional sports networks (prior to the Deconsolidation, as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC). The content, distributed through SBG's broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by SBG and SBG owned networks, and, prior to the Deconsolidation, college and professional sports. Additionally, prior to the Reorganization (as defined below in Company Reorganization), SBG had interests in, owned, managed, and/or operated Tennis Channel, digital media companies, technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

For the quarter ended June 30, 2023, SBG had one reportable segment: local media. Prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), SBG had one additional reportable segment: local sports. The local media segment consists primarily of SBG's 185 broadcast television stations in 86 markets, which SBG owns, provides programming and operating services pursuant to agreements commonly referred to as local marketing agreements ("LMA"), or provides sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements ("JSA") and shared services agreements ("SSA")). These stations broadcast 639 channels as of June 30, 2023. For the purpose of this report, these 185 stations and 639 channels are referred to as "SBG" stations and channels. The local sports segment consisted primarily of the Bally Sports network brands ("Bally RSNs"), the Marquee Sports Network ("Marquee") joint venture, and a minority equity interest in the Yankee Entertainment and Sports Network, LLC ("YES Network") through February 28, 2022. On March 1, 2022, the Bally RSNs, Marquee, and YES Network were deconsolidated from SBG's financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC below. Through February 28, 2022, the Bally RSNs and Marquee are referred to as "the RSNs". The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas.

Principles of Consolidation

The consolidated financial statements include SBG's accounts and those of SBG's wholly-owned and majority-owned subsidiaries, and VIEs for which SBG is the primary beneficiary. Noncontrolling interests represent a minority owner’s proportionate share of the equity in certain of SBG's consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of SBG's control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

SBG consolidates VIEs when SBG is the primary beneficiary. SBG is the primary beneficiary of a VIE when SBG has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 7. Variable Interest Entities for more information on SBG's VIEs.

Investments in entities over which SBG has significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents SBG's proportionate share of net income generated by equity method investees.

Company Reorganization

On April 3, 2023, the company formerly known as Sinclair Broadcast Group, Inc., a Maryland corporation ("Old Sinclair"), entered into an Agreement of Share Exchange and Plan of Reorganization (the "Share Exchange Agreement") with Sinclair and Sinclair Holdings, LLC, a Maryland limited liability company ("Sinclair Holdings"). The purpose of the transactions contemplated by the Share Exchange Agreement was to effect a holding company reorganization in which Sinclair would become the publicly-traded parent company of Old Sinclair.

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Effective at 12:00 am Eastern U.S. time on June 1, 2023 (the "Share Exchange Effective Time"), pursuant to the Share Exchange Agreement and Articles of Share Exchange filed with the Maryland State Department of Assessments and Taxation, the share exchange between Sinclair and Old Sinclair was completed (the "Share Exchange"). Immediately following the Share Exchange Effective Time, Old Sinclair converted from a Maryland corporation to a Maryland limited liability company named Sinclair Broadcast Group, LLC. On the day following the Share Exchange Effective Time, Sinclair Holdings became the intermediate holding company between Sinclair and SBG, and SBG transferred certain of its assets (the "Transferred Assets") to Sinclair Ventures, LLC, a new indirect wholly-owned subsidiary of Sinclair ("Ventures"). We refer to the Share Exchange and the related steps described above collectively as the "Reorganization." The Transferred Assets included technical and software services companies, intellectual property for the advancement of broadcast technology, and other media and non-media related businesses and assets including real estate, venture capital, private equity, and direct investments, as well as Compulse, a marketing technology and managed services company, and Tennis Channel and related assets.

As a result of the Reorganization, SBG's consolidated statement of operations for the three months ended June 30, 2023 includes two months of activity related to the Transferred Assets and for the six months ended June 30, 2023 includes five months of activity related to the Transferred Assets prior to the Reorganization. Subsequent to June 1, 2023, the assets and liabilities of the Transferred Assets are no longer included within SBG's consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with the Transferred Assets are referring to the periods prior to the Reorganization.

The Reorganization is considered transactions between entities under common control and therefore the Transferred Assets were transferred from SBG to Ventures at a net book value of $1,118 million, which is recognized in SBG's consolidated statements of equity and redeemable noncontrolling interests as a dividend to SBG's parent.

Deconsolidation of Diamond Sports Intermediate Holdings LLC

On March 1, 2022, Old Sinclair's subsidiary Diamond Sports Intermediate Holdings, LLC, and certain of its subsidiaries (collectively "DSIH"), completed a series of transactions (the "Transaction"). As part of the Transaction, the governance structure of DSIH was modified including changes to the composition of its Board of Managers, resulting in SBG's loss of voting control. As a result, DSIH, whose operations represented the entirety of SBG's local sports segment, was deconsolidated from SBG's consolidated financial statements effective as of March 1, 2022 (the "Deconsolidation"). SBG's consolidated statement of operations for the six months ended June 30, 2022 therefore includes two months of activity related to DSIH prior to the Deconsolidation. Subsequent to February 28, 2022, the assets and liabilities of DSIH are no longer included within SBG's consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with DSIH are referring to the periods prior to the Deconsolidation.

Upon Deconsolidation, SBG recognized a gain before income taxes of approximately $3,357 million, which is recorded within gain on deconsolidation of subsidiary in SBG's consolidated statements of operations for the six months ended June 30, 2022. Subsequent to the Deconsolidation, SBG's equity ownership interest in DSIH is accounted for under the equity method of accounting. See Note 2. Other Assets for more information.

Interim Financial Statements

SBG's consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the SEC, SBG's consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in Old Sinclair's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. SBG's consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. SBG adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on SBG's consolidated financial statements.

Broadcast Television Programming

SBG has agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to seven years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. SBG assesses the program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, SBG amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR").

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SBG has determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in SBG's consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in SBG's consolidated statements of cash flows. See Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion.

Non-cash Investing and Financing Activities

Leased assets obtained in exchange for new operating lease liabilities were $3 million and $7 million for the six months ended June 30, 2023 and 2022, respectively. Leased assets obtained in exchange for new finance lease liabilities were $1 million for the six months ended June 30, 2022. Non-cash investing activities included property and equipment purchases of $5 million for the six months ended June 30, 2023.

As part of the Reorganization, SBG made a noncash distribution of $758 million to Ventures for the six months ended June 30, 2023, which represents the book value of the net assets distributed. See Company Reorganization above.

Revenue Recognition

The following table presents SBG's revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Other		Eliminations		Total
Distribution revenue	$	372	$	31	$	—	$	403
Advertising revenue	293		13		(3)		303
Other media, non-media, and intercompany revenues	34		3		—		37
Total revenues	$	699	$	47	$	(3)	$	743
For the six months ended June 30, 2023	Local Media		Other		Eliminations		Total
Distribution revenue	$	753	$	76	$	—	$	829
Advertising revenue	589		29		(5)		613
Other media, non-media, and intercompany revenues	62		14		(2)		74
Total revenues	$	1,404	$	119	$	(7)	$	1,516
For the three months ended June 30, 2022	Local Media		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	430
Advertising revenue	343		25		(2)		366
Other media, non-media, and intercompany revenues	32		15		(6)		41
Total revenues	$	760	$	85	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	433	$	92	$	—	$	1,303
Advertising revenue	656		44		47		(10)		737
Other media, non-media, and intercompany revenues	80		5		32		(32)		85
Total revenues	$	1,514	$	482	$	171	$	(42)	$	2,125

Distribution Revenue. SBG has agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). SBG generates distribution revenue through fees received from these Distributors for the right to distribute SBG's stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to SBG's customers (as usage occurs) which corresponds with the satisfaction of SBG's performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. SBG's customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Advertising Revenue. SBG generates advertising revenue primarily from the sale of advertising spots/impressions within broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, SBG does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. SBG records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. SBG classifies deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in SBG's consolidated balance sheets based on the timing of when SBG expects to satisfy performance obligations. Deferred revenue was $181 million and $200 million as of June 30, 2023 and December 31, 2022, respectively, of which $134 million and $144 million, respectively, was reflected in other long-term liabilities in SBG's consolidated balance sheets. Deferred revenue recognized during the six months ended June 30, 2023 and 2022, included in the deferred revenue balance as of December 31, 2022 and 2021, was $32 million and $42 million, respectively.

For the three months ended June 30, 2023, two customers accounted for 12% and 10%, respectively, of SBG's total revenues. For the six months ended June 30, 2023, two customers accounted for 11% and 10%, respectively, of SBG's total revenues. For the three months ended June 30, 2022, two customers accounted for 11% and 10%, respectively, of SBG's total revenues. For the six months ended June 30, 2022, three customers accounted for 15%, 14%, and 12%, respectively, of SBG's total revenues. As of June 30, 2023, three customers accounted for 11%, 11%, and 10%, respectively, of SBG's accounts receivable, net. As of December 31, 2022, one customer accounted for 13% of SBG's accounts receivable, net. For purposes of this disclosure, a single customer may include multiple entities under common control.

Income Taxes

SBG's (provision) benefit for taxes and deferred tax balances have been calculated on a separate return basis as if SBG filed its own tax returns, although its operations are included in the Sinclair consolidated tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if SBG were a separate taxpayer and a standalone enterprise.

SBG's income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. SBG provides a valuation allowance for deferred tax assets if it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating SBG's ability to realize net deferred tax assets, SBG considers all available evidence, both positive and negative, including past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, SBG must make certain judgments that are based on the plans and estimates used to manage SBG's underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of SBG's available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

SBG's effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. SBG's effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). SBG's effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). SBG's effective income tax rate for the six months ended June 30, 2022 approximated SBG's statutory rate.

SBG believes that its liability for unrecognized tax benefits could be reduced by up to $1 million, in the next twelve months, as a result of the expected statute of limitations expirations, and the resolution of examination issues and settlements with tax authorities.

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Share Repurchase Program

For the six months ended June 30, 2023, SBG repurchased approximately 8.8 million shares of Old Sinclair Class A Common Stock for $151 million. All shares were repurchased under an SEC Rule 10b5-1 plan, which is no longer applicable subsequent to the Reorganization.

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

2.              OTHER ASSETS:

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments (a)	$	1	$	113
Other investments (a)	26		442
Note receivable (a)	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	54		44
Total other assets	$	255	$	964

(a)The note receivable and certain of the equity method and other investments were transferred to Ventures as part of the Reorganization.

Equity Method Investments

Prior to the Reorganization, SBG had a portfolio of investments, including a number of entities that are primarily focused on the development of real estate and other media and non-media businesses. Subsequent to the Deconsolidation, SBG has an investment in DSIH that is accounted for under the equity method of accounting. No investments were individually significant for the periods presented.

Diamond Sports Intermediate Holdings LLC. Subsequent to the Deconsolidation, SBG's equity interest in DSIH is accounted for under the equity method of accounting. As of March 1, 2022, SBG reflected the investment in DSIH at fair value, which was determined to be nominal. For the three and six months ended June 30, 2023 and 2022, SBG recorded no equity method loss related to the investment because the carrying value of the investment is zero and SBG is not obligated to fund losses incurred by DSIH. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

YES Network Investment. Prior to the Deconsolidation, SBG's investment in the YES Network was accounted for as an equity method investment. SBG recorded income of $10 million for the six months ended June 30, 2022 related to this investment, which is reflected in (loss) income from equity method investments in SBG's consolidated statements of operations. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Other Investments

SBG's investments, excluding equity method investments, are accounted for at fair value or, in situations where fair value is not readily determinable, SBG has the option to value investments at cost plus observable changes in value, less impairment. Additionally, certain investments are measured at net asset value ("NAV").

All of the investments measured at fair value and certain of the investments measured at NAV were transferred to Ventures as part of the Reorganization. As of December 31, 2022, SBG held $234 million in investments measured at fair value. As of June 30, 2023 and December 31, 2022, SBG held $25 million and $190 million, respectively, in investments measured at NAV. SBG recognized fair value adjustment losses of $72 million and $73 million for the three and six months ended June 30, 2023,

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

respectively, and fair value adjustment losses of $105 million and $161 million for the three and six months ended June 30, 2022, respectively, associated with these investments, which are reflected in other expense, net in SBG's consolidated statements of operations. As of June 30, 2023 and December 31, 2022, SBG's unfunded commitments related to the investments valued using the NAV practical expedient totaled $40 million and $88 million, respectively. The investments remaining at SBG will be transferred to Ventures upon receipt of third party consents.

Certain of the investments accounted for utilizing the measurement alternative were transferred to Ventures as part of the Reorganization. Investments accounted for utilizing the measurement alternative were $1 million as of June 30, 2023 and $18 million, net of $7 million of cumulative impairments, as of December 31, 2022. SBG recorded a $6 million impairment related to one investment for the three and six months ended June 30, 2023, which is reflected in other expense, net in SBG's consolidated statements of operations. There were no adjustments to the carrying amount of investments accounted for utilizing the measurement alternative for either of the three and six months ended June 30, 2022. The investments remaining at SBG will be transferred to Ventures upon receipt of third party consents.

Note Receivable

SBG was party to an Accounts Receivable Securitization Facility ("A/R Facility"), held by Diamond Sports Finance SPV, LLC ("DSPV"), an indirect wholly-owned subsidiary of DSIH. Subsequent to the Deconsolidation, transactions related to the A/R Facility are no longer intercompany transactions and, therefore, are reflected in SBG's consolidated financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. As of December 31, 2022, the note receivable due to SBG was approximately $193 million, which is reflected in other assets in SBG's consolidated balance sheets. On May 10, 2023, DSPV paid SBG approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. The loans under the A/R Facility and cash received were transferred to Ventures as part of the Reorganization.

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.              NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement and Notes

The bank credit agreement of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG (the "Bank Credit Agreement"), includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of June 30, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of June 30, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2023.

In June 2023, STG purchased $3 million, $15 million, and $13 million aggregate principal amount of the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"), respectively, in open market transactions for consideration of $3 million, $8 million, and $8 million, respectively. The STG Notes acquired in June 2023 were canceled immediately following their acquisition. SBG recognized a gain on extinguishment of the STG Notes of $11 million for the three and six months ended June 30, 2023.

In July 2023, STG purchased $0.5 million aggregate principal amount of the 5.125% Senior Notes due 2027 in open market transactions for consideration of $0.4 million and repaid $1 million aggregate principal amount of the Term Loan B-2, due September 30, 2026, for consideration of $0.8 million. The STG Notes acquired in July 2023 were canceled immediately following their acquisition.

Finance leases to affiliates

The current portion of notes payable, finance leases, and commercial bank financing in SBG's consolidated balance sheets includes finance leases to affiliates of $2 million and $3 million as of June 30, 2023 and December 31, 2022, respectively. Notes payable, finance leases, and commercial bank financing, less current portion, in SBG's consolidated balance sheets includes finances leases to affiliates of $6 million as of both June 30, 2023 and December 31, 2022. See Note 9. Related Person Transactions.

Debt of variable interest entities and guarantees of third-party obligations

STG jointly, severally, unconditionally, and irrevocably guaranteed $2 million of debt of certain third parties as of both June 30, 2023 and December 31, 2022, all of which relate to consolidated VIEs and is included in SBG's consolidated balance sheets as of both June 30, 2023 and December 31, 2022. SBG provides a guarantee of certain obligations of a regional sports network subject to a maximum annual amount of $112 million with annual escalations of 4% for the next seven years. SBG has determined that, as of June 30, 2023, it is not probable that SBG would have to perform under any of these guarantees.

Interest Rate Swap

SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on SOFR. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion. As of June 30, 2023, the fair value of the interest rate swap was an asset of $8 million, which is recorded in other assets in SBG's consolidated balance sheets.

4.              REDEEMABLE NONCONTROLLING INTERESTS:

SBG accounts for redeemable noncontrolling interests in accordance with ASC 480, Distinguishing Liabilities from Equity, and classifies them as mezzanine equity in SBG's consolidated balance sheets because their possible redemption is outside of the control of SBG. SBG's redeemable non-controlling interests consist of the following:

Redeemable Subsidiary Preferred Equity . On August 23, 2019, Diamond Sports Holdings LLC ("DSH"), an indirect parent of Diamond Sports Group, LLC ("DSG") and indirect wholly-owned subsidiary of SBG, issued preferred equity (the "Redeemable Subsidiary Preferred Equity").

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Distributions accrued during the six months ended June 30, 2023 were $3 million and during the three and six months ended June 30, 2022 were $3 million and $6 million, respectively, and are reflected in net income attributable to the redeemable noncontrolling interests in SBG's consolidated statements of operations. Distributions accrued during all of the six months ended June 30, 2023 and the three and six months ended June 30, 2022 were paid-in-kind and added to the liquidation preference, which was partially offset by certain required cash tax distributions.

The balance, net of issuance costs, and the liquidation preference of the Redeemable Subsidiary Preferred Equity were $194 million and $198 million, respectively, as of December 31, 2022. On February 10, 2023, SBG purchased the remaining 175,000 units of the Redeemable Subsidiary Preferred Equity for an aggregate purchase price of $190 million, representing 95% of the sum of the remaining unreturned capital contribution of $175 million, and accrued and unpaid distributions up to, but not including, the date of purchase.

5.              COMMITMENTS AND CONTINGENCIES:

Litigation

SBG is a party to lawsuits, claims, and regulatory matters from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. Except as noted below, SBG does not believe the outcome of these matters, individually or in the aggregate, will have a material effect on SBG's financial statements. 

FCC Litigation Matters

On May 22, 2020, the Federal Communications Commission ("FCC") released an Order and Consent Decree pursuant to which the Company agreed to pay $48 million to resolve the matters covered by a Notice of Apparent Liability for Forfeiture ("NAL") issued in December 2017 proposing a $13 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries, the FCC's investigation of the allegations raised in the Hearing Designation Order issued in connection with the Company's proposed acquisition of Tribune, and a retransmission related matter. The Company submitted the $48 million payment on August 19, 2020. As part of the consent decree, the Company also agreed to implement a 4-year compliance plan. Two petitions were filed on June 8, 2020 seeking reconsideration of the Order and Consent Decree. The Company filed an opposition to the petitions on June 18, 2020, and the petitions remain pending.

On September 1, 2020, one of the individuals who filed a petition for reconsideration of the Order and Consent Decree filed a petition to deny the license renewal application of WBFF(TV), Baltimore, MD, and the license renewal applications of two other Baltimore, MD stations with which the Company has a JSA or LMA, Deerfield Media station WUTB(TV) and Cunningham Broadcasting Corporation ("Cunningham") station WNUV(TV). The Company filed an opposition to the petition on October 1, 2020, and the petition remains pending.

On September 2, 2020, the FCC adopted a Memorandum Opinion and Order and NAL against the licensees of several stations with whom the Company has LMAs, JSAs, and/or SSAs in response to a complaint regarding those stations' retransmission consent negotiations. The NAL proposed a $0.5 million penalty for each station, totaling $9 million. The licensees filed a response to the NAL on October 15, 2020, asking the Commission to dismiss the proceeding or, alternatively, to reduce the proposed forfeiture to $25,000 per station. On July 28, 2021, the FCC issued a forfeiture order in which the $0.5 million penalty was upheld for all but one station. A Petition for Reconsideration of the forfeiture order was filed on August 7, 2021. On March 14, 2022, the FCC released a Memorandum Opinion and Order and Order on Reconsideration, reaffirming the forfeiture order and dismissing (and in the alternative, denying) the Petition for Reconsideration. The Company is not a party to this forfeiture order; however, SBG's consolidated financial statements include an accrual of additional expenses of $8 million for the above legal matters during the year ended December 31, 2021, as SBG consolidates these stations as VIEs.

On September 21, 2022, the FCC released an NAL against the licensees of a number of stations, including 83 Company stations and several stations with whom the Company has LMAs, JSAs, and/or SSAs, for violation of the FCC's limitations on commercial matter in children's television programming related to KidsClick network programming distributed by the Company in 2018. The NAL proposed a fine of $2.7 million against the Company, and fines ranging from $20,000 to $26,000 per station for the other licensees, including the LMA, JSA, and/or SSA stations, for a total of $3.4 million. As of June 30, 2023, SBG has accrued $3.4 million. On October 21, 2022, the Company filed a written response seeking reduction of the proposed fine amount, and the matter remains pending.

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Other Litigation Matters

On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice ("DOJ"). This consent decree resolves the DOJ's investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The U.S. District Court for the District of Columbia entered the consent decree on May 22, 2019. The consent decree is not an admission of any wrongdoing by the Company and does not subject the Company to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the DOJ has required in previous consent decrees in other industries. The consent decree also requires the Company's stations not to exchange pacing and certain other information with other stations in their local markets, which the Company's management had already instructed them not to do.

The Company is aware of twenty-two putative class action lawsuits that were filed against the Company following published reports of the DOJ investigation into the exchange of pacing data within the industry. On October 3, 2018, these lawsuits were consolidated in the Northern District of Illinois. The consolidated action alleges that the Company and thirteen other broadcasters conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States and engaged in unlawful information sharing, in violation of the Sherman Antitrust Act. The consolidated action seeks damages, attorneys' fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The Court denied the Defendants' motion to dismiss on November 6, 2020. Since then, the Plaintiffs have served the Defendants with written discovery requests and have begun taking depositions of the employees of the defendants and certain third parties. The Court has set a pretrial schedule which currently requires discovery to be completed by December 15, 2023, or 90 days after the Special Master certifies completion of the privilege review, whichever date is later, and requires briefing on class certification to be completed within 195 days after that date. The Company believes the lawsuits are without merit and intends to vigorously defend itself against all such claims.

On July 19, 2023, as part of the ongoing bankruptcy proceedings of DSG, an independently managed and unconsolidated subsidiary of Sinclair, DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC, filed a complaint, under seal, in the United States Bankruptcy Court for the Southern District of Texas naming certain subsidiaries of Sinclair, including SBG and STG, David D. Smith, Sinclair's Executive Chairman, Christopher S. Ripley, Sinclair's President and Chief Executive Officer, Lucy A. Rutishauser, Sinclair's Executive Vice President & Chief Financial Officer, and Scott Shapiro, Sinclair's Executive Vice President, Corporate Development and Strategy, as defendants.

In the complaint, plaintiffs challenge a series of transactions involving SBG and certain of its subsidiaries, on the one hand, and DSG and its subsidiaries, on the other hand, since SBG acquired the former Fox Sports regional sports networks from The Walt Disney Company in August 2019. The complaint alleges, among other things, that the management services agreement entered into by STG and DSG was not fair to DSG and was designed to benefit STG and SBG; that the Bally's Corporation ("Bally's") transaction in November 2020 through which Bally's acquired naming rights to certain regional sports networks was not fair to DSG and was designed to benefit STG and SBG; and that certain distributions made by DSG that were used to pay down preferred equity of DSH, were inappropriate and were conducted at a time when DSG was insolvent. The complaint alleges that SBG and its subsidiaries (other than DSG and its subsidiaries) received payments or indirect benefits of approximately $1.5 billion as a result of the alleged misconduct. The complaint asserts a variety of claims, including certain fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties. The plaintiffs are seeking, among other relief, avoidance of fraudulent transfers and unlawful distributions, and unspecified monetary damages to be determined. The defendants believe the allegations in this lawsuit are without merit and intend to vigorously defend against plaintiffs' claims.

While at this early stage of the proceedings it is not possible to determine the probability of any outcome or probability or amount of any loss, in the event of an unfavorable outcome, SBG's subsidiaries may be required to pay monetary damages, which could materially and adversely affect SBG's financial and results of operations.

46

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6.              SEGMENT DATA:

During the period ended June 30, 2023 SBG modified its segment reporting to align with the new organizational structure of SBG discussed within Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies. The segment information within the comparative periods have been revised to reflect this new presentation. During the period ended June 30, 2023, SBG measured segment performance based on operating income (loss). For the quarter ended June 30, 2023, SBG had one reportable segment: local media. Prior to the Deconsolidation, SBG had one additional reportable segment: local sports. The local media segment includes SBG's television stations, original networks, and content and provides these through free over-the-air programming to television viewing audiences for stations in markets located throughout the continental United States, as well as distributes the content of these stations to MVPDs for distribution to their customers in exchange for contractual fees. See Revenue Recognition under Note 1. Nature of Operations and Summary of Significant Accounting Policies for further detail. The local sports segment provided viewers with live professional sports content and included the Bally RSNs, Marquee, and SBG's investment in the YES Network, prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of tennis, non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include SBG's costs to operate as the parent company of its subsidiaries. All of SBG's businesses are located within the United States.

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Other & Corporate		Eliminations		Consolidated
Assets	$	4,349	$	645	$	—	$	4,994

For the three months ended June 30, 2023	Local Media			Other & Corporate (c)		Eliminations		Consolidated
Revenue	$	699	(b)	$	47	$	(3)	$	743
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			3		—		70
Amortization of program contract costs	19			—		—		19
Corporate general and administrative expenses	46			12		—		58
(Gain) loss on asset dispositions and other, net of impairment	(2)			6		—		4
Operating income (loss)	22			(18)		—		4
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		76

For the six months ended June 30, 2023	Local Media			Other & Corporate (c)		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	119	$	(7)	(a)	$	1,516
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		(1)			135
Amortization of program contract costs	41			—		—			41
Corporate general and administrative expenses	78			38		—			116
(Gain) loss on asset dispositions and other, net of impairment	(3)			13		—			10
Operating income (loss)	63			(38)		—			25
Interest expense including amortization of debt discount and deferred financing costs	150			—		—			150
Income from equity method investments	—			31		—			31

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SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended June 30, 2022	Local Media			Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	85	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			7		(1)			67
Amortization of program contract costs	21			—		—			21
Corporate general and administrative expenses	34			4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—			(4)
Operating income (loss)	116			(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			3		(3)			54
Income from equity method investments	—			3		—			3

For the six months ended June 30, 2022	Local Media			Local Sports (d)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	482	$	171	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			54		14		(2)			188
Amortization of sports programming rights	—			326		—		—			326
Amortization of program contract costs	46			—		—		—			46
Corporate general and administrative expenses	77			1		7		—			85
Gain on deconsolidation of subsidiary	—			—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		(1)		—			(9)
Operating income (loss)	211			(4)		3,366		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			72		6		(8)			169
Income from equity method investments	—			10		5		—			15

(a)Includes $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity in tennis, non-broadcast digital and internet solutions, technical services, and non-media investments (collectively, other) prior to the Reorganization on June 1, 2023 and the activity in corporate prior and subsequent to the Reorganization. See Company Reorganization within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(d)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

48

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

7.              VARIABLE INTEREST ENTITIES: 

Certain of SBG's stations provide services to other station owners within the same respective market through agreements, such as LMAs, where SBG provides programming, sales, operational, and administrative services, and JSAs and SSAs, where SBG provides non-programming, sales, operational, and administrative services. In certain cases, SBG has also entered into purchase agreements or options to purchase the license related assets of the licensee. SBG typically owns the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with SBG's acquisition of the non-license assets of the station, SBG has provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of SBG's investment in the stations, SBG is the primary beneficiary when, subject to the ultimate control of the licensees, SBG has the power to direct the activities which significantly impact the economic performance of the VIE through the services SBG provides and SBG absorbs losses and returns that would be considered significant to the VIEs. The fees paid between SBG and the licensees pursuant to these arrangements are eliminated in consolidation.

A subsidiary of DSIH is a party to a joint venture associated with Marquee. Marquee is party to a long term telecast rights agreement which provides the rights to air certain live game telecasts and other content, which SBG guarantees. In connection with a prior acquisition, SBG became party to a joint venture associated with one other regional sports network. DSIH participated significantly in the economics and had the power to direct the activities which significantly impacted the economic performance of these regional sports networks, including sales and certain operational services. As of March 1, 2022, as a result of the Deconsolidation, SBG no longer consolidates these regional sports networks. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in SBG's consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Long-term liabilities:
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

49

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The amounts above represent the combined assets and liabilities of the VIEs described above, for which SBG is the primary beneficiary. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $130 million as of both June 30, 2023 and December 31, 2022 as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of June 30, 2023, all of the liabilities are non-recourse to SBG except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar.

Other VIEs 

Prior to the Reorganization, SBG had several investments in entities which are considered VIEs. However, SBG did not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow SBG to control the entity, and therefore, SBG was not considered the primary beneficiary of these VIEs. SBG's investments in these VIEs for which SBG was not the primary beneficiary were transferred to Ventures as part of the Reorganization.

The carrying amounts of SBG's investments in these VIEs for which SBG was not the primary beneficiary were $187 million as of December 31, 2022, and are included in other assets in SBG's consolidated balance sheets. See Note 2. Other Assets for more information related to SBG's equity investments. The income and loss related to equity method investments and other investments are recorded in (loss) income from equity method investments and other expense, net, respectively, in SBG's consolidated statements of operations. SBG recorded gains of $2 million and $37 million for the three and six months ended June 30, 2023, respectively, and gains of $5 million and $25 million for the three and six months ended June 30, 2022, respectively, related to these investments.

In conjunction with the Transaction, the composition of the DSIH board of managers was modified resulting in SBG's loss of voting control over DSIH. SBG holds substantially all of the equity of DSIH and provides certain management and general and administrative services to DSIH. However, it was determined that SBG is not the primary beneficiary because SBG lacks the ability to control the activities that most significantly drive the economics of the business. The carrying amount of SBG's investment in DSIH is zero and there is no obligation for SBG to provide additional financial support.

Prior to the Reorganization, SBG was also party to the A/R Facility held by an indirect wholly-owned subsidiary of DSIH which had an outstanding balance of approximately $193 million as of December 31, 2022. See Note Receivable within Note 2. Other Assets. The loans under the A/R Facility were transferred to Ventures as part of the Reorganization.

8.              RELATED PERSON TRANSACTIONS:

Transactions with SBG's indirect controlling shareholders

David, Frederick, J. Duncan, and Robert Smith (collectively, the "Sinclair controlling shareholders") are brothers and hold substantially all of the Sinclair Class B Common Stock and some of the Sinclair Class A Common Stock and, subsequent to the Reorganization, David, Frederick, and J. Duncan Smith are on the Board of Managers of SBG. SBG engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases. Certain assets used by SBG and SBG's operating subsidiaries are leased from entities owned by the Sinclair controlling shareholders. Lease payments made to these entities were $1 million and $3 million for the three and six months ended June 30, 2023, respectively, and $1 million and $3 million for the three and six months ended June 30, 2022, respectively. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

Charter Aircraft. SBG leases aircraft owned by certain Sinclair controlling shareholders. For all leases, SBG incurred expenses of $0.1 million and $0.2 million for the three and six months ended June 30, 2023, respectively, and less than $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively.

50

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations, including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah; and KTXD-TV in Dallas, Texas (collectively, the "Cunningham Stations"). Certain of SBG's stations provide services to the Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 7. Variable Interest Entities, for further discussion of the scope of services provided under these types of arrangements.

All of the non-voting stock of the Cunningham Stations is owned by trusts for the benefit of the children of the Sinclair controlling shareholders. SBG consolidates certain subsidiaries of Cunningham with which SBG has variable interests through various arrangements related to the Cunningham Stations.

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2028 and there is one additional five-year renewal term remaining with final expiration on July 1, 2033. SBG also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant SBG the right to acquire, and grant Cunningham the right to require SBG to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Pursuant to the terms of this agreement SBG is obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station's annual net broadcast revenue or (ii) $6 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The cumulative prepayments made under these purchase agreements were $63 million and $61 million as of June 30, 2023 and December 31, 2022, respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both June 30, 2023 and December 31, 2022, was approximately $54 million. Additionally, SBG provides services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and has a purchase option to acquire for $0.2 million. SBG paid Cunningham, under these agreements, $3 million and $6 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively.

The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WDBB-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between April 2025 and November 2029 and certain stations have renewal provisions for successive eight-year periods.

As SBG consolidates the licensees as VIEs, the amounts SBG earns or pays under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported in SBG's consolidated statements of operations. SBG's consolidated revenues include $33 million and $69 million for the three and six months ended June 30, 2023, respectively, and $37 million and $71 million for the three and six months ended June 30, 2022, respectively, related to the Cunningham Stations.

SBG has an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which Cunningham has an LMA that expires in June 2025. Under the agreement, Cunningham paid SBG an initial fee of $1 million and pays SBG $0.3 million annually for master control services plus the cost to maintain and repair the equipment. In addition, SBG has an agreement with Cunningham to provide a news share service with the Johnstown, PA station for an annual fee of $0.6 million, which increases by 3% on each anniversary and expires in November 2024.

SBG has multi-cast agreements with Cunningham Stations in the Eureka/Chico-Redding, California; Tri-Cities, Tennessee; Anderson, South Carolina; Baltimore, Maryland; Portland, Maine; Charleston, West Virginia; Dallas, Texas; and Greenville, North Carolina markets. In exchange for carriage of these networks in their markets, SBG paid $0.5 million and $1 million for the three and six months ended June 30, 2023, respectively, and $1 million for both the three and six months ended June 30, 2022 under these agreements.

MileOne Autogroup Inc.

SBG sells advertising time to certain operating subsidiaries of MileOne Autogroup, Inc. ("MileOne"), including automobile dealerships, body shops, and an automobile leasing company. David D. Smith, has a controlling interest in, and is a member of the Board of Directors of, MileOne. SBG received payments for advertising totaling less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022.

51

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Leased property by real estate ventures

Certain of SBG's real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent payments received under these leases were $0.3 million and $0.7 million for the three and six months ended June 30, 2023, respectively, and $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.

Sinclair, Inc.

Subsequent to the Reorganization, Sinclair is the sole member of SBG. See Company Reorganization within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion.

SBG recorded revenue of $1 million during both the three and six months ended June 30, 2023 within the local media segment related to sales services provided by SBG to Sinclair, and certain of its direct and indirect subsidiaries.

SBG recorded expenses of $2 million during both the three and six months ended June 30, 2023 within the local media segment related to digital advertising services provided by Sinclair, and certain of its direct and indirect subsidiaries, to SBG.

SBG made a cash distribution of $360 million to Sinclair, and certain of its direct and indirect subsidiaries, during both the three and six months ended June 30, 2023, as part of the Reorganization.

As of June 30, 2023, SBG had a receivable from Sinclair, and certain of its direct and indirect subsidiaries, of $16 million, included within prepaid expenses and other current assets in SBG's consolidated balance sheets.

Diamond Sports Intermediate Holdings LLC

Subsequent to February 28, 2022, SBG's equity interest in DSIH is accounted for as an equity method investment. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Management Services Agreement. In 2019, SBG entered into a management services agreement with DSG, a wholly-owned subsidiary of DSIH, in which SBG provided DSG with affiliate sales and marketing services and general and administrative services. The contractual annual amount due from DSG for these services during the fiscal year ended December 31, 2023 is $78 million, which is subject to increases on an annual basis. Additionally, the agreement contains an incentive fee payable to SBG calculated based on certain terms contained within new or renewed distribution agreements with Distributors. As a condition to the Transaction, DSG will defer the cash payment of a portion of its management fee payable to SBG over the next four years. Pursuant to this agreement, the local media segment recorded $13 million and $22 million of revenue for the three and six months ended June 30, 2023, respectively, and $10 million and $38 million of revenue for the three and six months ended June 30, 2022, respectively, of which $24 million for the six months ended June 30, 2022 was eliminated in consolidation prior to the Deconsolidation. SBG will not recognize the portion of deferred management fees as revenue until such fees are determined to be collectible.

Distributions. DSIH made distributions to DSH for tax payments on the dividends of the Redeemable Subsidiary Preferred Equity of $2 million and $3 million during the three and six months ended June 30, 2022, respectively.

Note receivable. SBG received payments totaling $206 million and $209 million during the three and six months ended June 30, 2023, respectively, and $10 million and $60 million during the three and six months ended June 30, 2022, respectively, from DSPV related to the note receivable associated with the A/R Facility, including $199 million from DSPV on May 10, 2023, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. The loans under the A/R Facility and cash received on May 10, 2023 were transferred to Ventures as part of the Reorganization.

SBG recorded revenue of $4 million and $9 million during the three and six months ended June 30, 2023, respectively, and $4 million and $5 million during the three and six months ended June 30, 2022, respectively, within the local media segment and other related to certain other transactions between DSIH and SBG.

52

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Other equity method investees

YES Network. In August 2019, YES Network, which was accounted for as an equity method investment prior to the Deconsolidation, entered into a management services agreement with SBG, in which certain services were provided for an initial term that expires on August 29, 2025. The agreement will automatically renew for two 2-year renewal terms, with a final expiration on August 29, 2029. Pursuant to the terms of the agreement, the YES Network paid SBG a management services fee of $1 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

DSIH has a minority interest in certain mobile production businesses. Prior to the Deconsolidation, SBG accounted for these as equity method investments. DSIH made payments to these businesses for production services totaling $5 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

SBG has a minority interest in a sports marketing company, which is accounted for as an equity method investment. Payments to this business for marketing services totaled $2 million for the six months ended June 30, 2022.

Sports Programming Rights

Affiliates of six professional teams had non-controlling equity interests in certain of DSIH's RSNs. DSIH paid $61 million for the six months ended June 30, 2022 under sports programming rights agreements covering the broadcast of regular season games associated with these professional teams. Prior to the Deconsolidation, these payments were recorded in SBG's consolidated statements of operations and cash flows. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Employees

Jason Smith, an employee of SBG, is the son of Frederick Smith, who is a Vice President of SBG and a member of SBG's Board of Managers. Jason Smith received total compensation of $0.2 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively, consisting of salary and bonus. Ethan White, an employee of SBG, is the son-in-law of J. Duncan Smith, who is a Vice President of SBG and member of SBG's Board of Managers. Ethan White received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus, and was granted 1,252 shares of restricted stock, vesting over two years, during the six months ended June 30, 2023. Amberly Thompson, an employee of SBG, is the daughter of Donald Thompson, who is an Executive Vice President and Chief Human Resources Officer of SBG. Amberly Thompson received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. Edward Kim, an employee of SBG, is the brother-in-law of Christopher Ripley, who is the President and Chief Executive Officer of SBG. Edward Kim received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary, and was granted 516 and 302 shares of restricted stock during the six months ended June 30, 2023 and 2022, respectively, vesting over two years.

Frederick Smith is the brother of David Smith, Executive Chairman of SBG and a member of SBG's Board of Managers, and J. Duncan Smith. Frederick Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. J. Duncan Smith is the brother of David Smith and Frederick Smith. J. Duncan Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus.

53

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

9.              FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity's own assumptions.

54

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table sets forth the face value and fair value of SBG's financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities (a)	N/A		$	—	N/A		$	6
Money market funds	N/A		348		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a) (b)	N/A		—		N/A		153
Interest rate swap (c)	N/A		8		N/A		—
STG (d):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (d)	7		7		8		8
Debt of non-media subsidiaries (a) (d)	—		—		16		16
Level 3:
Investments in equity securities (a) (e)	N/A		—		N/A		75

N/A - Not applicable

(a)The debt of non-media subsidiaries and the investments in equity securities were transferred to Ventures as part of the Reorganization.

(b)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(c)SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(d)Amounts are carried in SBG's consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(e)On November 18, 2020, SBG entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 SBG recorded a fair value adjustment loss of $25 million and during the three and six months ended June 30, 2022 SBG recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share. The warrants and options were transferred to Ventures as part of the Reorganization.

55

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(25)		Measurement adjustments	(25)
Transfer to Ventures	(50)		Transfer to Ventures	(50)
Fair value at June 30, 2023	$	—	Fair value at June 30, 2023	$	—

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

10.              CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

STG is the primary obligor under the Bank Credit Agreement, the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"). Sinclair's Class A Common Stock and Class B Common Stock as of June 30, 2023, were obligations or securities of Sinclair and not obligations or securities of STG. SBG is a guarantor under the STG Notes. As of June 30, 2023, SBG's consolidated total debt, net of deferred financing costs and debt discounts, of $4,206 million included $4,206 million related to STG and its subsidiaries of which SBG guaranteed $4,176 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 (subsequent to the Reorganization), Old Sinclair (prior to the Reorganization), STG, KDSM, LLC and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG, and the eliminations necessary to arrive at SBG's information on a consolidated basis. The condensed consolidating financial statements are provided pursuant to the terms of certain of SBG's debt agreements.

Investments in the subsidiaries of SBG (subsequent to the Reorganization), Old Sinclair (prior to the Reorganization), STG, KDSM, LLC and the guarantor subsidiaries, and the direct and indirect non-guarantor subsidiaries of SBG are presented in each column under the equity method of accounting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. As such, these condensed consolidating financial statements should be read in conjunction with the accompanying notes to consolidated financial statements.

56

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Cash and cash equivalents	$	—	$	368	$	—	$	—	$	—	$	368
Accounts receivable, net	—		1		526		17		—		544
Other current assets	18		55		94		2		(17)		152
Total current assets	18		424		620		19		(17)		1,064
Property and equipment, net	16		14		644		17		(2)		689
Investment in equity of consolidated subsidiaries	274		3,144		—		—		(3,418)		—
Goodwill	—		—		2,015		1		—		2,016
Indefinite-lived intangible assets	—		—		109		14		—		123
Definite-lived intangible assets, net	—		—		707		36		(28)		715
Other long-term assets	92		987		638		119		(1,449)		387
Total assets	$	400	$	4,569	$	4,733	$	206	$	(4,914)	$	4,994
Accounts payable and accrued liabilities	$	5	$	101	$	266	$	8	$	(2)	$	378
Current portion of long-term debt	—		27		6		4		(1)		36
Other current liabilities	4		2		114		21		(17)		124
Total current liabilities	9		130		386		33		(20)		538
Long-term debt	—		4,142		22		10		(4)		4,170
Other long-term liabilities	802		56		1,183		166		(1,449)		758
Total liabilities	811		4,328		1,591		209		(1,473)		5,466
Total SBG (deficit) equity	(411)		241		3,142		62		(3,445)		(411)
Noncontrolling interests in consolidated subsidiaries	—		—		—		(65)		4		(61)
Total liabilities and equity	$	400	$	4,569	$	4,733	$	206	$	(4,914)	$	4,994

57

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2022

(in millions)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Cash and cash equivalents	$	47	$	750	$	1	$	86	$	—	$	884
Accounts receivable, net	—		—		555		57		—		612
Other current assets	32		42		159		19		(65)		187
Total current assets	79		792		715		162		(65)		1,683
Property and equipment, net	—		31		668		51		(22)		728
Investment in equity of consolidated subsidiaries	1,093		3,463		—		—		(4,556)		—
Goodwill	—		—		2,081		7		—		2,088
Indefinite-lived intangible assets	—		—		136		14		—		150
Definite-lived intangible assets, net	—		—		935		42		(31)		946
Other long-term assets	411		938		512		573		(1,325)		1,109
Total assets	$	1,583	$	5,224	$	5,047	$	849	$	(5,999)	$	6,704
Accounts payable and accrued liabilities	$	—	$	80	$	300	$	18	$	(1)	$	397
Current portion of long-term debt	—		28		6		5		(1)		38
Other current liabilities	4		8		139		87		(65)		173
Total current liabilities	4		116		445		110		(67)		608
Long-term debt	—		4,181		24		26		(4)		4,227
Other long-term liabilities	831		52		1,120		314		(1,323)		994
Total liabilities	835		4,349		1,589		450		(1,394)		5,829
Redeemable noncontrolling interests	—		—		—		194		—		194
Total Old Sinclair equity	748		875		3,458		275		(4,608)		748
Noncontrolling interests in consolidated subsidiaries	—		—		—		(70)		3		(67)
Total liabilities, redeemable noncontrolling interests, and equity	$	1,583	$	5,224	$	5,047	$	849	$	(5,999)	$	6,704

58

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Net revenue	$	—	$	15	$	713	$	33	$	(18)	$	743
Media programming and production expenses	—		4		377		27		(11)		397
Selling, general and administrative expenses	13		49		181		4		(5)		242
Depreciation, amortization and other operating expenses	1		1		85		15		(2)		100
Total operating expenses	14		54		643		46		(18)		739
Operating (loss) income	(14)		(39)		70		(13)		—		4
Equity in (loss) earnings of consolidated subsidiaries	(88)		54		—		—		34		—
Interest expense	—		(75)		—		2		(3)		(76)
Other (expense) income	(1)		17		—		(69)		—		(53)
Total other (expense) income	(89)		(4)		—		(67)		31		(129)
Income tax benefit (provision)	2		19		(15)		20		—		26
Net (loss) income	(101)		(24)		55		(60)		31		(99)
Net income attributable to the noncontrolling interests	—		—		—		(2)		—		(2)
Net (loss) income attributable to SBG	$	(101)	$	(24)	$	55	$	(62)	$	31	$	(101)
Comprehensive (loss) income	$	(101)	$	(15)	$	55	$	(60)	$	31	$	(90)

59

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Net revenue	$	—	$	11	$	820	$	46	$	(40)	$	837
Media programming and production expenses	—		2		383		36		(18)		403
Selling, general and administrative expenses	3		38		206		6		(20)		233
Depreciation, amortization and other operating expenses	1		1		84		12		(4)		94
Total operating expenses	4		41		673		54		(42)		730
Operating (loss) income	(4)		(30)		147		(8)		2		107
Equity in (loss) earnings of consolidated subsidiaries	(12)		119		—		—		(107)		—
Interest expense	—		(53)		—		(4)		3		(54)
Other income (expense)	6		(2)		—		(103)		—		(99)
Total other (expense) income	(6)		64		—		(107)		(104)		(153)
Income tax (provision) benefit	(1)		10		(27)		58		—		40
Net (loss) income	(11)		44		120		(57)		(102)		(6)
Net income attributable to the redeemable noncontrolling interests	—		—		—		(5)		—		(5)
Net (loss) income attributable to Old Sinclair	$	(11)	$	44	$	120	$	(62)	$	(102)	$	(11)
Comprehensive (loss) income	$	(11)	$	44	$	120	$	(57)	$	(102)	$	(6)

60

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Net revenue	$	—	$	25	$	1,452	$	76	$	(37)	$	1,516
Media programming and production expenses	—		7		753		61		(26)		795
Selling, general and administrative expenses	38		84		368		9		(8)		491
Depreciation, amortization and other operating expenses	2		2		167		37		(3)		205
Total operating expenses	40		93		1,288		107		(37)		1,491
Operating (loss) income	(40)		(68)		164		(31)		—		25
Equity in earnings of consolidated subsidiaries	119		123		—		—		(242)		—
Interest expense	—		(148)		(1)		(1)		—		(150)
Other (expense) income	(4)		25		—		(32)		—		(11)
Total other income (expense)	115		—		(1)		(33)		(242)		(161)
Income tax benefit (provision)	9		38		(38)		221		—		230
Net income (loss)	84		(30)		125		157		(242)		94
Net loss attributable to the redeemable noncontrolling interests	—		—		—		4		—		4
Net income attributable to the noncontrolling interests	—		—		—		(14)		—		(14)
Net income (loss) attributable to SBG	$	84	$	(30)	$	125	$	147	$	(242)	$	84
Comprehensive income (loss)	$	84	$	(24)	$	125	$	157	$	(242)	$	100

61

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Net revenue	$	—	$	40	$	1,611	$	577	$	(103)	$	2,125
Media programming and production expenses	—		2		745		448		(34)		1,161
Selling, general and administrative expenses	6		86		405		69		(66)		500
Gain on deconsolidation of subsidiary	(3,357)		—		—		—		—		(3,357)
Depreciation, amortization and other operating expenses	1		3		168		82		(6)		248
Total operating (gains) expenses	(3,350)		91		1,318		599		(106)		(1,448)
Operating income (loss)	3,350		(51)		293		(22)		3		3,573
Equity in (loss) earnings of consolidated subsidiaries	(50)		219		—		—		(169)		—
Interest expense	(4)		(97)		(1)		(79)		12		(169)
Other income (expense)	10		(1)		3		(153)		(6)		(147)
Total other (expense) income	(44)		121		2		(232)		(163)		(316)
Income tax (provision) benefit	(730)		30		(74)		127		—		(647)
Net income (loss)	2,576		100		221		(127)		(160)		2,610
Net income attributable to the redeemable noncontrolling interests	—		—		—		(9)		—		(9)
Net income attributable to the noncontrolling interests	—		—		—		(25)		—		(25)
Net income (loss) attributable to Old Sinclair	$	2,576	$	100	$	221	$	(161)	$	(160)	$	2,576
Comprehensive income (loss)	$	2,576	$	100	$	221	$	(124)	$	(160)	$	2,613

62

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(74)	$	(115)	$	91	$	221	$	(1)	$	122
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	—		(2)		(38)		(2)		1		(41)
Purchases of investments	(4)		—		(21)		(12)		—		(37)
Distributions from investments	196		—		—		8		—		204
Other, net	—		—		3		1		—		4
Net cash flows from (used in) investing activities	192		(2)		(56)		(5)		1		130
NET CASH FLOWS USED IN FINANCING ACTIVITIES
Repayments of notes payable, commercial bank financing and finance leases	—		(33)		(3)		(1)		—		(37)
Repurchase of outstanding Old Sinclair Class A Common Stock	(153)		—		—		—		—		(153)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(18)		—		—		—		—		(18)
Redemption of redeemable subsidiary preferred equity	—		—		—		(190)		—		(190)
Distributions to member	(250)		—		—		(110)		—		(360)
Distributions to noncontrolling interests	—		—		—		(7)		—		(7)
Increase (decrease) in intercompany payables	259		(232)		(33)		6		—		—
Other, net	(3)		—		—		—		—		(3)
Net cash flows used in financing activities	(165)		(265)		(36)		(302)		—		(768)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(47)		(382)		(1)		(86)		—		(516)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	47		750		1		86		—		884
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—	$	368	$	—	$	—	$	—	$	368

63

SINCLAIR BROADCAST GROUP, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(111)	$	(96)	$	616	$	(206)	$	4	$	207
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	—		(2)		(43)		(2)		2		(45)
Deconsolidation of subsidiary cash	—		—		—		(315)		—		(315)
Purchases of investments	(44)		(1)		(3)		(13)		—		(61)
Distributions from investments	60		—		10		11		—		81
Other, net	—		—		7		4		—		11
Net cash flows from (used in) investing activities	16		(3)		(29)		(315)		2		(329)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing	—		728		—		—		—		728
Repayments of notes payable, commercial bank financing and finance leases	—		(841)		(3)		(1)		—		(845)
Repurchase of outstanding Old Sinclair Class A Common Stock	(104)		—		—		—		—		(104)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(36)		—		—		—		—		(36)
Dividends paid on redeemable subsidiary preferred equity	—		—		—		(3)		—		(3)
Distributions to noncontrolling interests	—		—		—		(5)		—		(5)
Increase (decrease) in intercompany payables	269		248		(585)		74		(6)		—
Other, net	(4)		(8)		—		—		—		(12)
Net cash flows from (used in) financing activities	125		127		(588)		65		(6)		(277)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	30		28		(1)		(456)		—		(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	2		316		2		499		—		819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	32	$	344	$	1	$	43	$	—	$	420

64

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management's Discussion and Analysis provides qualitative and quantitative information about Sinclair's and SBG's financial performance and condition and should be read in conjunction with Sinclair's and SBG's consolidated financial statements and the accompanying notes to those statements. This discussion consists of the following sections:

Summary of Significant Events — financial events during the three months ended June 30, 2023 and through the date this Report on Form 10-Q is filed.

Results of Operations — an analysis of Sinclair's and SBG's revenues and expenses for the three and six months ended June 30, 2023 and 2022.

Liquidity and Capital Resources — a discussion of Sinclair's and SBG's primary sources of liquidity and an analysis of Sinclair's and SBG's cash flows from or used in operating activities, investing activities, and financing activities during the three and six months ended June 30, 2023.

SUMMARY OF SIGNIFICANT EVENTS

Content and Distribution

•In April 2023, Sinclair announced a distribution agreement with YouTube TV to add carriage of Sinclair's Tennis Channel and T2 and SBG's CHARGE! and TBD to YouTube TV's service offerings and to extend YouTube TV's existing carriage of SBG's CBS and MyNetworkTV affiliated television broadcast stations.

•In April 2023, SBG entered into an agreement with Hulu to resume carriage of SBG's ABC stations.

•In June 2023, SBG reached an agreement with Smith Entertainment Group, parent company of the Utah Jazz, to make KJZZ "The Home of the Utah Jazz," enabling fans within the Jazz's local broadcast market to watch all non-nationally televised exclusive Jazz games on the over-the-air, local TV station.

•In July 2023, Sinclair announced a distribution agreement with Hulu to add carriage of Sinclair's Tennis Channel and T2 and SBG's Comet and CHARGE! to Hulu's service offerings beginning in January 2024.

Environmental, Social, and Governance

•To date in 2023, SBG's newsrooms have won a total of 223 journalism awards, including 23 RTDNA Regional Edward R. Murrow awards, three National Headliner awards, and two Investigative Reporters and Editors awards.

•In April 2023, SBG announced that Project Baltimore, the special investigative reporting unit of WBFF/Fox 45 News, was honored by Investigative Reporters and Editors for its reporting on Baltimore's public school system, exposing how Baltimore City Schools denied students with disabilities a proper education, and in doing so, violated their federal education rights.

•In April 2023, Sinclair and SBG celebrated our first Sinclair Day of Service whereby all employees were encouraged to volunteer that day for charitable causes. Thousands of employees eagerly turned out to help out in their communities.

•In May 2023, Sinclair published its 2022 Environmental, Social and Governance report, detailing ESG achievements in 2022 and progress toward its longstanding ESG goals and commitments.

•In May 2023, SBG announced that "Hate Rising: Antisemitism in America," a 60-minute special, will initially air on WPEC and be available across SBG's stations throughout the summer, providing an unfiltered look at the rise of antisemitism in America, examining how the country is combating it through awareness, education, and legislation.

•In July 2023, Sinclair announced a partnership with the National Diaper Bank Network to launch Sinclair Cares: Summer Diaper Drive, a nationwide campaign to create awareness, provide assistance, and build a community to reduce diaper need in the US.

•In July 2023, SBG announced that scholarships were awarded to 15 university students as a part of SBG's annual Diversity Scholarship program.

65

NextGen Broadcasting (ATSC 3.0)

•In April 2023, Sinclair and its partners CAST.ERA, SK Telecom, and Saankhya Labs, announced they will build and operate an innovative and interconnected broadcast platform to provide commercial services and solutions for national data distribution using NextGen Broadcast (ATSC 3.0) network technology. The NextGen Broadcast Data Distribution Core Network will provide a wireless broadcast backbone for IP (Internet Protocol) data delivery across the country.

•In April 2023, the Metropolitan Washington Council of Governments and Sinclair's subsidiary, ONE Media 3.0, launched the nation's first pilot project to use Next Generation Broadcast to disseminate Advanced Emergency Information. The pilot program provides an efficient, instantaneous and simultaneous delivery of emergency messaging sent by local governments to all users for free, utilizing the over-the-air broadcast platform. The pilot also demonstrated delivery of enhanced, rich media supplements to those emergency messages that meet its newsworthy criteria.

•In 2023, Sinclair, in coordination with other broadcasters, and led by BitPath, its joint venture with another broadcaster, have deployed NextGen TV, powered by ATSC 3.0, in the 4 additional markets below. This brings the total number of our markets in which NextGen TV has been deployed to 41:

Month	Market	Number of Stations	Company Stations
March 2023	Rochester, NY	4	WHAM-TV(a) (ABC), WUHF (FOX)
March 2023	Des Moines, IA	4	KDSM-TV (FOX)
June 2023	South Bend, IN	5	WSBT-TV (CBS and FOX)
July 2023	Reno, NV	5	KRXI-TV (FOX), KRNV-DT(a) (NBC), and KNSN-TV(b) (MyNet)

(a)The license and programming assets for this station are currently owned by a third party. SBG provides certain non-programming related sales, operational, and administrative services to this station pursuant to a service agreement, such as a JSA and SSA.

(b)The license assets for these stations are currently owned by a third party. SBG provides programming, sales, operational, and administrative services to these stations pursuant to certain service agreements, such as LMAs.

Financing, Capital Allocation, and Shareholder Returns

•For the six months ended June 30, 2023, Sinclair repurchased approximately 8.8 million shares of Class A Common Stock for $151 million. All shares were repurchased under an SEC Rule 10b5-1 plan.

•In May 2023, Sinclair declared a quarterly dividend of $0.25 per share and in August 2023, Sinclair declared a quarterly dividend of $0.25 per share.

•In June and July 2023, STG purchased an aggregate $32 million of principal across multiple tranches of debt in the open market for $21 million.

66

SINCLAIR, INC. RESULTS OF OPERATIONS

SINCLAIR, INC. RESULTS OF OPERATIONS

Any references to the first, third, or fourth quarters are to the three months ended March 31, September 30, or December 31, respectively, for the year being discussed. For the quarter ended June 30, 2023, we have two reportable segments, local media and tennis that are disclosed separately from our other and corporate activities. Prior to the Deconsolidation, we had one additional reportable segment, local sports.

Seasonality / Cyclicality

The operating results of our local media segment are usually subject to cyclical fluctuations from political advertising. In even numbered years, political spending is usually significantly higher than in odd numbered years due to advertising expenditures preceding local and national elections. Additionally, every four years, political spending is usually elevated further due to advertising expenditures preceding the presidential election. Also, the second and fourth quarter operating results are usually higher than the first and third quarters' because advertising expenditures are increased in anticipation of certain seasonal and holiday spending by consumers.

The operating results of our tennis segment are usually subject to cyclical fluctuations due to the amount and significance of tournaments that take place in the respective quarters during the year. The first and fourth quarter operating results are usually higher than the second and third quarters' because of the amount and significance of tournaments that are played during the respective quarters.

Operating Data

The following table sets forth our consolidated operating data for the periods presented (in millions):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Media revenues	$	761	$	831	$	1,527	$	2,106
Non-media revenues	7		6		14		19
Total revenues	768		837		1,541		2,125
Media programming and production expenses	413		403		811		1,161
Media selling, general and administrative expenses	190		195		381		415
Depreciation and amortization expenses	73		67		138		188
Amortization of program contract costs	19		21		41		46
Non-media expenses	9		10		21		23
Corporate general and administrative expenses	62		38		120		85
Gain on deconsolidation of subsidiary	—		—		—		(3,357)
Loss (gain) on asset dispositions and other, net of impairment	5		(4)		11		(9)
Operating (loss) income	$	(3)	$	107	$	18	$	3,573
Net (loss) income attributable to Sinclair	$	(89)	$	(11)	$	96	$	2,576

67

SINCLAIR, INC. RESULTS OF OPERATIONS

Local Media Segment

The following table sets forth our revenue and expenses for our local media segment for the periods presented (in millions):

	Three Months Ended June 30,				Percent Change Increase / (Decrease)	Six Months Ended June 30,				Percent Change Increase / (Decrease)
	2023		2022			2023		2022
Revenue:
Distribution revenue	$	372	$	385	(3)%	$	753	$	778	(3)%
Advertising revenue (c)	293		343		(15)%	589		656		(10)%
Other media revenues (a)	34		32		6%	62		80		(23)%
Media revenues	$	699	$	760	(8)%	$	1,404	$	1,514	(7)%
Operating Expenses:
Media programming and production expenses	$	369	$	360	2%	$	740	$	721	3%
Media selling, general and administrative expenses (b)	175		169		4%	350		339		3%
Depreciation and amortization expenses	67		61		10%	126		122		3%
Amortization of program contract costs	19		21		(10)%	41		46		(11)%
Corporate general and administrative expenses	46		34		35%	78		77		1%
Non-media expenses	3		3		—%	9		6		50%
Gain on asset dispositions and other, net of impairment	(2)		(4)		(50)%	(3)		(8)		(63)%
Operating income	$	22	$	116	(81)%	$	63	$	211	(70)%
Interest expense including amortization of debt discount and deferred financing costs	$	76	$	54	41%	$	150	$	99	52%
Gain on extinguishment of debt	$	11	$	3	n/m	$	11	$	3	n/m

n/m - not meaningful

(a)Includes $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to other and local sports, prior to the Deconsolidation, under management services agreements, which is eliminated in consolidation, and $14 million and $24 million of revenue for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation.

(b)Includes $2 million and $3 million for the three and six months ended June 30, 2023, respectively, and $3 million and $4 million for the three and six months ended June 30, 2022, respectively, of intercompany expense related to certain services provided to local media from other, which is eliminated in consolidation.

(c)Includes $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to local media from tennis, which is eliminated in consolidation.

Revenue

Distribution revenue. Distribution revenue, which represents payments from Distributors for our broadcast signals, decreased $13 million and $25 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to a decrease in subscribers, partially offset by increases in contractual rates.

Advertising revenue. Advertising revenue decreased $50 million and $67 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to a decrease in political advertising revenue of $49 million for the three-month period and $62 million for the six-month period, as 2022 was a political year, compared to 2023 which is a non-political year.

68

SINCLAIR, INC. RESULTS OF OPERATIONS

The following table sets forth our primary types of programming and their approximate percentages of advertising revenue, excluding digital revenue, for the periods presented:

	Percent of Advertising Revenue (Excluding Digital) for the
	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Local news	38%	39%	35%	36%
Syndicated/Other programming	30%	29%	28%	29%
Network programming	20%	23%	19%	21%
Sports programming	7%	5%	12%	9%
Paid programming	5%	4%	6%	5%

The following table sets forth our affiliate percentages of advertising revenue for the periods presented:

		Percent of Advertising Revenue for the
		Three Months Ended June 30,		Six Months Ended June 30,
	# of Channels (a)	2023	2022	2023	2022
ABC	40	32%	33%	29%	30%
FOX	55	21%	21%	24%	21%
CBS	30	19%	18%	20%	19%
NBC	25	12%	14%	12%	15%
CW	46	5%	5%	5%	5%
MNT	40	4%	4%	4%	4%
Other	403	7%	5%	6%	6%
Total	639

(a)We broadcast other programming from the following providers on our channels including: Antenna TV, Bounce, CHARGE!, Comet, Dabl, Decades, Estrella TV, Get TV, Me TV, Quest, Rewind, Stadium, TBD, TCN, Telemundo, This TV, UniMas, Univision, and Weather.

Other Media Revenues. Other media revenues increased $2 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to an increase related to providing certain services under a management services agreement. Other media revenues decreased $18 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to a decrease in revenue from providing certain services under a management services agreement.

Expenses

Media programming and production expenses. Media programming and production expenses increased $9 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to an $8 million increase in fees pursuant to network affiliation agreements as a result of increased contractual rates. Media programming and production expenses increased $19 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to a $14 million increase in fees pursuant to network affiliation agreements as a result of increased contractual rates and a $6 million increase in employee compensation cost.

Media selling, general and administrative expenses. Media selling, general and administrative expenses increased $6 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to increases in third-party fulfillment cost from our digital business. Media selling, general and administrative expenses increased $11 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to an $8 million increase in third-party fulfillment cost from our digital business and a $3 million increase in information technology cost.

Amortization of program contract costs. The amortization of program contract costs decreased $2 million and $5 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily related to reduced renewal costs.

Corporate general and administrative expenses. See explanation under Corporate and Unallocated Expenses.

69

SINCLAIR, INC. RESULTS OF OPERATIONS

Non-media expenses. Non-media expenses remained flat for the three months ended June 30, 2023, when compared to the same period in 2022. Non-media expenses increased $3 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily related to expenses associated with our NextGen TV broadcast platform.

Gain on asset dispositions and other, net of impairments. For the three and six months ended June 30, 2023 we recorded gains of $2 million and $3 million, respectively, and for the three and six months ended June 30, 2022 we recorded gains of $1 million and $2 million, respectively, related to reimbursements from the spectrum repack. For the six months ended June 30, 2022, we recorded a gain of $3 million related to the sale of assets of one of our stations.

Interest expense including amortization of debt discount and deferred financing costs. Interest expense increased by $22 million and $51 million for the three and six months ended June 30, 2023, when compared to the same periods in 2022, primarily due to increased interest expense related to our variable rate debt resulting from higher interest rates.

Gain on extinguishment of debt. During the three months ended June 30, 2023, we purchased $31 million in aggregate principal amount of certain STG Notes and recognized a gain of $11 million for both the three and six months ended June 30, 2023. See Bank Credit Agreement and Notes under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing within Sinclair's Consolidated Financial Statements.

Tennis Segment

The following table sets forth our revenue and expenses for our tennis segment for the periods presented (in millions):

	Three Months Ended June 30,				Percent Change Increase / (Decrease)	Six Months Ended June 30,				Percent Change Increase / (Decrease)
	2023		2022			2023		2022
Revenue:
Distribution revenue	$	46	$	45	2%	$	91	$	92	(1)%
Advertising revenue	14		11		27%	23		19		21%
Other media revenues	—		2		n/m	1		3		(67)%
Media revenues	$	60	$	58	3%	$	115	$	114	1%
Operating Expenses:
Media programming and production expenses	$	40	$	39	3%	$	62	$	55	13%
Media selling, general and administrative expenses (a)	12		14		(14)%	22		25		(12)%
Depreciation and amortization expenses	5		5		—%	10		10		—%
Operating income	$	3	$	—	n/m	$	21	$	24	(13)%

n/m - not meaningful

(a)Includes $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany expense related to certain services provided to the local media segment, which is eliminated in consolidation.

Revenue

Distribution revenue. Distribution revenue, which is generated through fees received from Distributors for the right to distribute Tennis Channel, increased $1 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to an increase in subscribers as a result of increased carriage that occurred during the quarter. Distribution revenue decreased $1 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to a decrease in subscribers, partially offset by increases in contractual rates.

Advertising revenue. Advertising revenue is primarily generated from sales of commercial time within Tennis Channel programming. Advertising revenue increased $3 million and $4 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to an increase in the number of tournaments aired in the current periods versus the prior periods.

70

SINCLAIR, INC. RESULTS OF OPERATIONS

Expenses

Media programming and production expenses. Media programming and production expenses increased $1 million and $7 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to increased programming, including rights fees, and live production expenses related to various tournaments during each period, which was a result of an increase in the number of tournaments aired in the current periods versus the prior periods.

Media selling, general and administrative expenses. Media selling, general and administrative expenses decreased $2 million and $3 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to decreases in expenses related to our online tennis platforms.

Local Sports Segment

Our local sports segment reflected the results of our Bally RSNs, Marquee, and a minority interest in the YES Network prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements. The Bally RSNs, Marquee, and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas.

The following table sets forth our revenue and expenses for our local sports segment for the period presented (in millions):

	Six Months Ended June 30,
	2022
Revenue:	(b)
Distribution revenue	$	433
Advertising revenue	44
Other media revenue	5
Media revenue	$	482
Operating Expenses:
Media programming and production expenses	$	376
Media selling, general and administrative expenses (a)	55
Depreciation and amortization expenses	54
Corporate general and administrative	1
Operating loss (a)	$	(4)
Income from equity method investments	$	10

(a)Includes $24 million for the six months ended June 30, 2022 of intercompany expense related to certain services provided by the local media segment under a management services agreement, which is eliminated in consolidation.

(b)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements.

The revenue and expense items noted above for the six months ended June 30, 2022 represent activity prior to the Deconsolidation which occurred on March 1, 2022, thus there is no activity presented for periods subsequent to the first quarter of 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements for further discussion.

71

SINCLAIR, INC. RESULTS OF OPERATIONS

Other

The following table sets forth our revenues and expenses for our non-broadcast digital and internet solutions, technical services, and non-media investments (collectively, other) for the periods presented (in millions):

	Three Months Ended June 30,				Percent Change Increase / (Decrease)	Six Months Ended June 30,				Percent Change Increase/(Decrease)
	2023		2022			2023		2022
Revenue:
Media revenues (a)	$	6	$	15	(60)%	$	15	$	31	(52)%
Non-media revenues (b)	$	8	$	12	(33)%	$	16	$	26	(38)%
Operating Expenses:
Media expenses (c)	$	11	$	21	(48)%	$	25	$	42	(40)%
Non-media expenses (d)	$	7	$	9	(22)%	$	13	$	20	(35)%
Operating loss	$	(12)	$	(5)	n/m	$	(24)	$	(8)	n/m
(Loss) Income from equity method investments	$	(1)	$	3	n/m	$	30	$	5	n/m

n/m - not meaningful

(a)Media revenues for the three and six months ended June 30, 2023 include $2 million and $3 million, respectively, and for the three and six months ended June 30, 2022 include $3 million and $10 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.

(b)Non-media revenues for the three and six months ended June 30, 2023 include $1 million and $2 million, respectively, and for the three and six months ended June 30, 2022 include $6 million and $7 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.

(c)Media expenses for the three and six months ended June 30, 2023 include $1 million and $2 million, respectively, and for the three and six months ended June 30, 2022 include $2 million and $6 million, respectively, of intercompany expense primarily related to certain services provided by the local media segment, which is eliminated in consolidation.

(d)Non-media expenses for the three and six months ended June 30, 2023 include $1 million and $2 million, respectively, and for the three and six months ended June 30, 2022 include $1 million and $3 million, respectively, of intercompany expense related to certain services and sales provided by the local media segment, which is eliminated in consolidation.

Revenue. Media revenues decreased $9 million and $16 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to the sale of one of our businesses and a decrease in advertising revenue related to our digital initiatives. Non-media revenues decreased $4 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to a decrease in broadcast equipment sales. Non-media revenues decreased $10 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to lower sales within our consolidated real estate investments and a decrease in broadcast equipment sales.

Expenses. Media expenses decreased $10 million and $17 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to the sale of one of our businesses and a decrease in selling, general and administrative expenses related to our digital initiatives. Non-media expenses decreased $2 million and $7 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to decreased sales expenses associated with the lower broadcast equipment sales.

Income from equity method investments. During the six months ended June 30, 2023, we recognized a gain of $33 million on the sale of two of our real estate investments, which is included in income from equity method investments in our consolidated statements of operations.

72

SINCLAIR, INC. RESULTS OF OPERATIONS

Corporate and Unallocated Expenses

The following table presents our corporate and unallocated expenses for the periods presented (in millions):

	Three Months Ended June 30,				Percent Change Increase/ (Decrease)	Six Months Ended June 30,				Percent Change Increase/ (Decrease)
	2023		2022			2023		2022
Corporate general and administrative expenses	$	62	$	38	63%	$	120	$	85	41%
Gain on deconsolidation of subsidiary	$	—	$	—	n/m	$	—	$	(3,357)	n/m
Other expense, net	$	38	$	105	(64)%	$	27	$	165	(84)%
Income tax benefit (provision)	$	20	$	40	(50)%	$	224	$	(647)	n/m

n/m - not meaningful

Corporate general and administrative expenses. The table above and the explanation that follows cover total consolidated corporate general and administrative expenses. Corporate general and administrative expenses increased by $24 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to a $14 million increase in employee compensation cost and an $8 million increase in legal, consulting, and regulatory cost, primarily related to the litigation discussed under Note 5. Commitments and Contingencies within the Consolidated Financial Statements. Corporate general and administrative expenses increased by $35 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to an $18 million increase in employee compensation cost, a $10 million increase in legal, consulting, and regulatory cost, primarily related to the litigation discussed under Note 5. Commitments and Contingencies within the Consolidated Financial Statements, and a $5 million increase in insurance expenses, primarily related to our cyber insurance policy.

Gain on deconsolidation of subsidiary. For the six months ended June 30, 2022, we recorded a gain of $3,357 million related to the Deconsolidation, as discussed in Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements.

Other expense, net. Other expense decreased by $67 million and $138 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to changes in the fair value of certain investments recorded at fair value. See Note 2. Other Assets within Sinclair's Consolidated Financial Statements for further information.

Income tax benefit (provision). The effective tax rate for the three months ended June 30, 2023, was a benefit of 18.9% as compared to a benefit of 85.2% during the same period in 2022. The decrease in the effective tax rate for the three months ended June 30, 2023, as compared to the same period in 2022, is primarily due to 2022 valuation allowance recorded on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

The effective tax rate for the six months ended June 30, 2023, was a benefit of 189.3% compared to a provision of 19.9% during the same period in 2022. The increase in the effective tax rate for the six months ended June 30, 2023, as compared to the same period in 2022, is primarily due to a 2023 release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

73

SINCLAIR BROADCAST GROUP, LLC RESULTS OF OPERATIONS

SINCLAIR BROADCAST GROUP, LLC RESULTS OF OPERATIONS

Any references to the first, third, or fourth quarters are to the three months ended March 31, September 30, or December 31, respectively, for the year being discussed. For the quarter ended June 30, 2023, SBG has one reportable segment, local media that is disclosed separately from SBG's other and corporate activities. Prior to the Deconsolidation, SBG had one additional reportable segment, local sports, that was disclosed separately from SBG's other and corporate activities.

Seasonality / Cyclicality

The operating results of SBG's local media segment are usually subject to cyclical fluctuations from political advertising. In even numbered years, political spending is usually significantly higher than in odd numbered years due to advertising expenditures preceding local and national elections. Additionally, every four years, political spending is usually elevated further due to advertising expenditures preceding the presidential election. Also, the second and fourth quarter operating results are usually higher than the first and third quarters' because advertising expenditures are increased in anticipation of certain seasonal and holiday spending by consumers.

Operating Data

The following table sets forth SBG's consolidated operating data for the periods presented (in millions):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Media revenues	$	740	$	831	$	1,506	$	2,106
Non-media revenues	3		6		10		19
Total revenues	743		837		1,516		2,125
Media programming and production expenses	397		403		795		1,161
Media selling, general and administrative expenses	184		195		375		415
Depreciation and amortization expenses	70		67		135		188
Amortization of program contract costs	19		21		41		46
Non-media expenses	7		10		19		23
Corporate general and administrative expenses	58		38		116		85
Gain on deconsolidation of subsidiary	—		—		—		(3,357)
Loss (gain) on asset dispositions and other, net of impairment	4		(4)		10		(9)
Operating income	$	4	$	107	$	25	$	3,573
Net (loss) income attributable to SBG	$	(101)	$	(11)	$	84	$	2,576

Local Media Segment

Refer to Local Media Segment above under Sinclair, Inc.'s Results of Operations for a discussion of SBG's local media segment, which is the same as Sinclair's local media segment for all of the three and six months ended June 30, 2023 and 2022.

Local Sports Segment

Refer to Local Sports Segment above under Sinclair, Inc.'s Results of Operations for a discussion of SBG's local sports segment, which is the same as Sinclair's local sports segment for the six months ended June 30, 2022, prior to the Deconsolidation.

74

SINCLAIR BROADCAST GROUP, LLC RESULTS OF OPERATIONS

Other

The following table sets forth SBG's revenues and expenses for tennis, non-broadcast digital and internet solutions, technical services, and non-media investments (collectively, other) for the periods presented, prior to the Reorganization (in millions):

	Three Months Ended June 30,				Percent Change Increase / (Decrease)	Six Months Ended June 30,				Percent Change Increase/(Decrease)
	2023		2022			2023		2022
Revenue:	(e)					(e)
Distribution revenue	$	31	$	45	(31)%	$	76	$	92	(17)%
Advertising revenue	13		25		(48)%	29		47		(38)%
Other media revenues	—		4		n/m	3		7		(57)%
Media revenues (a)	$	44	$	74	(41)%	$	108	$	146	(26)%
Non-media revenues (b)	$	3	$	11	(73)%	$	11	$	25	(56)%
Operating Expenses:
Media expenses (c)	$	38	$	74	(49)%	$	84	$	122	(31)%
Non-media expenses (d)	$	4	$	9	(56)%	$	10	$	20	(50)%
Loss (gain) on asset dispositions and other, net of impairment	$	5	$	—	n/m	$	12	$	(1)	n/m
Operating (loss) income	$	(4)	$	(8)	(50)%	$	—	$	13	(100)%
Income from equity method investments	$	—	$	3	n/m	$	31	$	5	n/m

n/m - not meaningful

(a)Media revenues for the three and six months ended June 30, 2023 include $2 million and $3 million, respectively, and for the three and six months ended June 30, 2022 include $3 million and $10 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.

(b)Non-media revenues for the six months ended June 30, 2023 include $1 million, and for the three and six months ended June 30, 2022 include $2 million and $7 million, respectively, of intercompany revenue related to certain services and sales provided to the local media segment, which is eliminated in consolidation.

(c)Media expenses for the six months ended June 30, 2023 include $1 million, and for the three and six months ended June 30, 2022 include $2 million and $6 million, respectively, of intercompany expense primarily related to certain services provided by the local media segment, which is eliminated in consolidation.

(d)Non-media expenses for both the three and six months ended June 30, 2023 include $1 million, and for the three and six months ended June 30, 2022 include $1 million and $3 million, respectively, of intercompany expense related to certain services and sales provided by the local media segment, which is eliminated in consolidation.

(e)Represents the activity prior to the Reorganization on June 1, 2023. There was no reportable activity for the June period in the three and six months ended June 30, 2023 following the Reorganization on June 1, 2023. See Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements.

The decrease in the revenue and expense items noted above for the three and six months ended June 30, 2023, when compared to the same periods in the prior year, was primarily due to the Reorganization, as the three and six months ended June 30, 2023 results include only two and five months of activity, respectively, due to the Reorganization as the Transferred Assets were moved to Ventures effective June 1, 2023, versus a full period of activity in the prior year periods, and therefore the periods are not comparable. See Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements.

75

SINCLAIR BROADCAST GROUP, LLC RESULTS OF OPERATIONS

Corporate and Unallocated Expenses

The following table presents SBG's corporate and unallocated expenses for the periods presented (in millions):

	Three Months Ended June 30,				Percent Change Increase/ (Decrease)	Six Months Ended June 30,				Percent Change Increase/ (Decrease)
	2023		2022			2023		2022
Corporate general and administrative expenses	$	58	$	38	53%	$	116	$	85	36%
Gain on deconsolidation of subsidiary	$	—	$	—	n/m	$	—	$	(3,357)	n/m
Other expense, net	$	64	$	105	(39)%	$	53	$	165	(68)%
Income tax benefit (provision)	$	26	$	40	(35)%	$	230	$	(647)	n/m

n/m - not meaningful

Corporate general and administrative expenses. The table above and the explanation that follows cover total consolidated corporate general and administrative expenses. Corporate general and administrative expenses increased by $20 million for the three months ended June 30, 2023, when compared to the same period in 2022, primarily due to a $14 million increase in employee compensation cost and an $8 million increase in legal, consulting, and regulatory costs. Corporate general and administrative expenses increased by $31 million for the six months ended June 30, 2023, when compared to the same period in 2022, primarily due to an $18 million increase in employee compensation cost, a $10 million increase in legal, consulting, and regulatory costs, and a $4 million increase in insurance expenses, primarily related to SBG's cyber insurance policy.

Gain on deconsolidation of subsidiary. For the six months ended June 30, 2022, SBG recorded a gain of $3,357 million related to the Deconsolidation, as discussed in Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements.

Other expense, net. Other expense, net decreased by $41 million and $112 million for the three and six months ended June 30, 2023, respectively, when compared to the same periods in 2022, primarily due to changes in the fair value of certain investments recorded at fair value. See Note 2. Other Assets within SBG's Consolidated Financial Statements for further information.

Income tax benefit (provision). The effective tax rate for the three months ended June 30, 2023, was a benefit of 21.5% as compared to a provision of 85.2% during the same period in 2022. The decrease in the effective tax rate for the three months ended June 30, 2023, as compared to the same period in 2022, is primarily due to 2022 valuation allowance recorded on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

The effective tax rate for the six months ended June 30, 2023, was a benefit of 169.9% compared to a provision of 19.9% during the same period in 2022. The increase in the effective tax rate for the six months ended June 30, 2023, as compared to the same period in 2022, is primarily due to a 2023 release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

76

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Capital Resources

As of June 30, 2023, Sinclair had net working capital of approximately $882 million, including $728 million in cash and cash equivalent balances, and $650 million of available borrowing capacity. Cash on hand, cash generated by Sinclair's operations, and borrowing capacity under the Bank Credit Agreement are used as Sinclair's primary sources of liquidity.

As of June 30, 2023, SBG had net working capital of approximately $526 million, including $368 million in cash and cash equivalent balances, and $650 million of available borrowing capacity. Cash on hand, cash generated by SBG's operations, and borrowing capacity under the Bank Credit Agreement are used as SBG's primary sources of liquidity.

The Bank Credit Agreement includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of June 30, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of June 30, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2023.

During the six months ended June 30, 2023, there were no material changes to Sinclair's or SBG's contractual cash obligations as of June 30, 2023.

Sinclair and SBG anticipate that existing cash and cash equivalents, cash flow from the local media segment's operations, and borrowing capacity under the Bank Credit Agreement will be sufficient to satisfy the local media segment's debt service obligations, capital expenditure requirements, and working capital needs for the next twelve months. Sinclair anticipates that existing cash and cash equivalents and cash flow from the tennis segment and other's operations will be sufficient to satisfy the tennis segment and other's debt service obligations, capital expenditure requirements, and working capital needs for the next twelve months. However, certain factors, including but not limited to the war in Ukraine and other geopolitical matters, natural disasters, and pandemics (such as the outbreak and worldwide spread of COVID-19), and their resulting effect on the economy, Sinclair's and SBG's advertisers, and Sinclair's and SBG's Distributors and their subscribers, could affect Sinclair's and SBG's liquidity and first lien leverage ratio which could affect Sinclair's and SBG's ability to access the full borrowing capacity under the Bank Credit Agreement. In addition to the sources described above, Sinclair and SBG may rely upon various sources for long-term liquidity needs, such as but not limited to, the issuance of long-term debt, the issuance of Sinclair equity, for Sinclair only, the issuance of Ventures equity or debt, or other instruments convertible into or exchangeable for Sinclair equity, or the sale of assets. However, there can be no assurance that additional financing or capital or buyers of assets will be available, or that the terms of any transactions will be acceptable or advantageous to Sinclair or SBG.

77

LIQUIDITY AND CAPITAL RESOURCES

Sinclair, Inc. Sources and Uses of Cash

The following table sets forth Sinclair's cash flows for the periods presented (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net cash flows from operating activities	$	80	$	137	$	142	$	207
Cash flows from (used in) investing activities:
Acquisition of property and equipment	$	(20)	$	(24)	$	(40)	$	(45)
Purchases of investments	(6)		(56)		(39)		(61)
Deconsolidation of subsidiary cash	—		—		—		(315)
Distributions from investments	196		11		204		81
Other, net	3		6		4		11
Net cash flows from (used in) investing activities	$	173	$	(63)	$	129	$	(329)
Cash flows used in financing activities:
Proceeds from notes payable and commercial bank financing	$	—	$	728	$	—	$	728
Repayments of notes payable, commercial bank financing, and finance leases	(29)		(838)		(38)		(845)
Dividends paid on Class A and Class B Common Stock	(16)		(18)		(34)		(36)
Repurchase of outstanding Class A Common Stock	(100)		(36)		(153)		(104)
Repurchase of redeemable subsidiary preferred equity	—		—		(190)		—
Distributions to noncontrolling interests, net	(4)		(2)		(8)		(5)
Other, net	1		(9)		(4)		(15)
Net cash flows used in financing activities	$	(148)	$	(175)	$	(427)	$	(277)

Operating Activities

Net cash flows from Sinclair's operating activities decreased during the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to a decrease in cash collections from Distributors and an increase in production and overhead costs.

Net cash flows from Sinclair's operating activities decreased during the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to a decrease in cash collections from Distributors and an increase in production and overhead costs, as well as the partial period impact related to the Deconsolidation, as discussed in Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements.

Investing Activities

Net cash flows from Sinclair's investing activities increased during the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to the $193 million A/R Facility principal payment received from DSPV and a decrease in the purchases of investments during the three months ended June 30, 2023.

Net cash flows from Sinclair's investing activities increased during the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to the removal of DSIH's cash balance as a result of the Deconsolidation in the first quarter of 2022, as discussed in Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within Sinclair's Consolidated Financial Statements, as well as the $193 million A/R Facility principal payment received from DSPV and a decrease in the purchases of investments during the six months ended June 30, 2023.

78

LIQUIDITY AND CAPITAL RESOURCES

Financing Activities

Net cash flows used in Sinclair's financing activities decreased during the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to a decrease in the net repayment of debt (repayments less proceeds), partially offset by an increase in the repurchase of outstanding Common Stock during the three months ended June 30, 2023.

Net cash flows used in Sinclair's financing activities increased during the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to the repurchase of the Redeemable Subsidiary Preferred Equity and an increase in the repurchase of outstanding Common Stock, partially offset by a decrease in the net repayment of debt (repayments less proceeds), during the six months ended June 30, 2023.

Sinclair declared a quarterly dividend of $0.25 per share in May 2023 and $0.25 per share in August 2023. Future dividends on Sinclair's shares of common stock, if any, will be at the discretion of Sinclair's Board of Directors and will depend on several factors including Sinclair's results of operations, cash requirements and surplus, financial condition, covenant restrictions, and other factors that the Board of Directors may deem relevant.

79

LIQUIDITY AND CAPITAL RESOURCES

Sinclair Broadcast Group, LLC Sources and Uses of Cash

The following table sets forth SBG's cash flows for the periods presented (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net cash flows from operating activities	$	60	$	137	$	122	$	207
Cash flows from (used in) investing activities:
Acquisition of property and equipment	$	(21)	$	(24)	$	(41)	$	(45)
Purchases of investments	(4)		(56)		(37)		(61)
Deconsolidation of subsidiary cash	—		—		—		(315)
Distributions from investments	196		11		204		81
Other, net	3		6		4		11
Net cash flows from (used in) investing activities	$	174	$	(63)	$	130	$	(329)
Cash flows used in financing activities:
Proceeds from notes payable and commercial bank financing	$	—	$	728	$	—	$	728
Repayments of notes payable, commercial bank financing, and finance leases	(28)		(838)		(37)		(845)
Dividends paid on Old Sinclair Class A and Class B Common Stock	—		(18)		(18)		(36)
Repurchase of outstanding Old Sinclair Class A Common Stock	(100)		(36)		(153)		(104)
Repurchase of redeemable subsidiary preferred equity	—		—		(190)		—
Distributions to noncontrolling interests, net	(3)		(2)		(7)		(5)
Distributions to member	(360)		—		(360)		—
Other, net	2		(9)		(3)		(15)
Net cash flows used in financing activities	$	(489)	$	(175)	$	(768)	$	(277)

Operating Activities

Net cash flows from SBG's operating activities decreased during the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to a decrease in cash collections from Distributors and an increase in production and overhead costs, as well as the partial period impact related to the Reorganization, as discussed in Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements.

Net cash flows from SBG's operating activities decreased during the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to a decrease in cash collections from Distributors, as well as the partial period impact related to the Deconsolidation and Reorganization, as discussed in Deconsolidation of Diamond Sports Intermediate Holdings LLC and Company Reorganization, respectively, under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements.

Investing Activities

Net cash flows from SBG's investing activities increased during the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to the $193 million A/R Facility principal payment received from DSPV and a decrease in the purchases of investments during the three months ended June 30, 2023, as well as the partial period impact related to the Reorganization, as discussed in Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements. The A/R Facility payment received from DSPV was transferred to Ventures as part of the Reorganization.

80

LIQUIDITY AND CAPITAL RESOURCES

Net cash flows from SBG's investing activities increased during the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to the removal of DSIH's cash balance as a result of the Deconsolidation in the first quarter of 2022, as discussed in Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements; the $193 million A/R Facility principal payment received from DSPV; a decrease in the purchases of investments during the six months ended June 30, 2023; and the partial period impact related to the Reorganization, as discussed in Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements. The A/R Facility payment received from DSPV was transferred to Ventures as part of the Reorganization.

Financing Activities

Net cash flows used in SBG's financing activities increased during the three months ended June 30, 2023 when compared to the same period in 2022, primarily due to an increase in the repurchase of outstanding Old Sinclair Common Stock during the three months ended June 30, 2023, prior to the Reorganization; the distribution to member in the three months ended June 30, 2023 as a result of the Reorganization; and the partial period impact related to the Reorganization, as discussed in Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements, partially offset by a decrease in the net repayment of debt (repayments less proceeds).

Net cash flows used in SBG's financing activities increased during the six months ended June 30, 2023 when compared to the same period in 2022, primarily due to the repurchase of the Redeemable Subsidiary Preferred Equity; an increase in the repurchase of outstanding Old Sinclair Common Stock, prior to the Reorganization; the distribution to member in the three months ended June 30, 2023 as a result of the Reorganization; and the partial period impact related to the Reorganization, as discussed in Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies within SBG's Consolidated Financial Statements, partially offset by a decrease in the net repayment of debt (repayments less proceeds).

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There were no changes to the critical accounting policies and estimates from those disclosed in Critical Accounting Policies and Estimates under Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations within Old Sinclair's Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Other than as described below, there have been no material changes from the quantitative and qualitative discussion about market risk previously disclosed in Old Sinclair's Annual Report on Form 10-K for the year ended December 31, 2022.

STG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026. The swap agreement has a notional amount of $600 million and bears a fixed interest rate of 3.9%.

ITEM 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Each of Sinclair's and SBG's management, under the supervision and with the participation of its respective Chief Executive Officer and Chief Financial Officer, evaluated the design and effectiveness of its disclosure controls and procedures as of June 30, 2023.

The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to provide reasonable assurance that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

81

Assessment of Effectiveness of Disclosure Controls and Procedures

Based on the evaluation of its disclosure controls and procedures as of June 30, 2023, each of Sinclair's and SBG's Chief Executive Officer and Chief Financial Officer concluded that, as of such date, Sinclair's and SBG's disclosure controls and procedures, respectively, were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in either Sinclair's or SBG's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

Limitations on the Effectiveness of Controls

Management, including each of Sinclair's and SBG's Chief Executive Officer and Chief Financial Officer, do not expect that Sinclair's and SBG's disclosure controls and procedures or its internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within each company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management's override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

Sinclair and SBG are party to lawsuits and claims from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions.

See Litigation under Note 5. Commitments and Contingencies within Sinclair's Consolidated Financial Statements for discussion related to certain pending lawsuits.

See Litigation under Note 5. Commitments and Contingencies within SBG's Consolidated Financial Statements for discussion related to certain pending lawsuits.

ITEM 1A. RISK FACTORS

As of the date of this report, there have been no material changes to the risk factors we previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022, with the exception of the risk factor discussed below.

Diamond Sports Group's bankruptcy proceedings, which include litigation against SBG, STG and other subsidiaries of Sinclair as well as certain directors and officers of Sinclair, could have a material adverse effect on Sinclair and SBG's financial condition and results of operations.

On March 14, 2023, DSG, Sinclair and SBG's independently managed and unconsolidated subsidiary, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. On July 19, 2023, as part of the ongoing bankruptcy proceedings, DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC, filed a complaint, under seal, in the United States Bankruptcy Court for the Southern District of Texas naming certain subsidiaries of Sinclair, including SBG and STG, David D. Smith, Sinclair's Executive Chairman, Christopher S. Ripley, Sinclair's President and Chief Executive Officer, Lucy A. Rutishauser, Sinclair's Executive Vice President & Chief Financial Officer, and Scott Shapiro, Sinclair's Executive Vice President, Corporate Development and Strategy, as defendants.

In the complaint, plaintiffs challenge a series of transactions involving SBG and certain of its subsidiaries, on the one hand, and DSG and its subsidiaries, on the other hand, since SBG acquired the former Fox Sports regional sports networks from The Walt Disney Company in August 2019. The complaint alleges, among other things, that the management services agreement entered into by STG and DSG was not fair to DSG and was designed to benefit STG and SBG; that the Bally's transaction in November 2020 through which Bally's acquired naming rights to certain regional sports networks was not fair to DSG and was designed to benefit STG and SBG; and that certain distributions made by DSG that were used to pay down preferred equity of DSH were inappropriate and were conducted at a time when DSG was insolvent. The complaint alleges that SBG and its subsidiaries (other than DSG and its subsidiaries) received payments or indirect benefits of approximately $1.5 billion as a result of the alleged misconduct. The complaint asserts a variety of claims, including certain fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties. The plaintiffs are seeking, among other relief, avoidance of fraudulent transfers and unlawful distributions, and unspecified monetary damages to be determined. The defendants believe the allegations in this lawsuit are without merit and intend to vigorously defend against plaintiffs' claims.

While at this early stage of the proceedings it is not possible to determine the probability of any outcome or probability or amount of any loss, in the event of an unfavorable outcome, Sinclair's subsidiaries may be required to pay monetary damages, which could materially and adversely affect Sinclair and SBG's financial and results of operations. In addition, the ultimate court-approved structure and organization of DSG post-bankruptcy could result in adverse tax consequences to Sinclair and SBG. These potential consequences could materially and adversely affect Sinclair and SBG's financial condition and results of operations.

83

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table summarizes repurchases of Sinclair's stock in the quarter ended June 30, 2023:

  

Period	Total Number of Shares Purchased (a)	Average Price Per Share		Total Number of Shares Purchased as Part of a Publicly Announced Program	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (in millions)
Class A Common Stock: (b)
04/01/23 - 04/30/23	4,466,375	$	18.89	4,466,375	$	561
05/01/23 - 05/31/23	735,434	$	19.81	735,434	$	547
06/01/23 - 06/30/23	—	$	—	—	$	547

(a)All repurchases were made in open-market transactions and were repurchased under an SEC Rule 10b5-1 plan.

(b)On August 4, 2020, the Old Sinclair Board of Directors authorized an additional $500 million share repurchase authorization in addition to the previous repurchase authorization of $1 billion. There is no expiration date and currently, management has no plans to terminate this program. As of June 30, 2023, the remaining authorization under the program was $547 million.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

None.

ITEM 5.  OTHER INFORMATION

During the three months ended June 30, 2023, none of Sinclair's or SBG's directors, managers, or officers, as applicable, adopted or terminated any contract, instruction, or written plan for the purchase or sale of Sinclair's securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

84

ITEM 6.  EXHIBITS

Exhibit Number	Description
3.1*	Articles of Conversion of Sinclair Broadcast Group, Inc. into Sinclair Broadcast Group, LLC effective June 1, 2023.
3.2*	Articles of Organization of Sinclair Broadcast Group, LLC dated June 1, 2023.
3.3*	Operating Agreement of Sinclair Broadcast Group, LLC dated June 1, 2023.
3.4*	First Amended and Restated Operating Agreement of Sinclair Broadcast Group, LLC dated June 2, 2023.
3.5	Agreement of Share Exchange and Plan of Reorganization, dated as of April 3, 2023, by and among Sinclair Broadcast Group, Inc., Sinclair, Inc. and Sinclair Holdings, LLC (incorporated by reference from Exhibit 2.1 to Sinclair Broadcast Group, Inc.’s Current Report on Form 8-K filed April 3, 2023).
3.6	Articles of Amendment and Restatement of Sinclair, Inc., effective June 1, 2023 (incorporated by reference from Exhibit 3.1 to Sinclair Inc.’s Form 8-K filed on June 1, 2023).
3.7	Amended and Restated Bylaws of Sinclair, Inc., effective June 1, 2023 (incorporated by reference from Exhibit 3.2 to Sinclair, Inc.'s Form 8-K filed on June 1, 2023).
10.1	Omnibus Assignment, Assumption and Amendment Agreement, by and between Sinclair Broadcast Group, Inc. and Sinclair, Inc., effective as of June 1, 2023 (incorporated by reference from Exhibit 10.1 to Sinclair, Inc.’s Form 8-K filed June 1, 2023).
10.2*	Amendment No. 1 dated June 20, 2023 with an effective date of January 1, 2023 to the Amended and Restated Employment Agreement between Sinclair Television Group, Inc. and Robert Weisbord effective as of January 1, 2020.
31.1**	Certification by Christopher S. Ripley, as Chief Executive Officer of Sinclair, Inc., pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241).
31.2**	Certification by Lucy Rutishauser, as Chief Financial Officer of Sinclair, Inc., pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241).
31.3**	Certification by Christopher S. Ripley, as Chief Executive Officer of Sinclair Broadcast Group, LLC, pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241).
31.4**	Certification by Lucy Rutishauser, as Chief Financial Officer of Sinclair Broadcast Group, LLC, pursuant to Rule 13a-14(a) of the Exchange Act (15 U.S.C. § 7241).
32.1**	Certification by Christopher S. Ripley, as Chief Executive Officer of Sinclair, Inc., pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350).
32.2**	Certification by Lucy Rutishauser, as Chief Financial Officer of Sinclair, Inc., pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350).
32.3**	Certification by Christopher S. Ripley, as Chief Executive Officer of Sinclair Broadcast Group, LLC, pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350).
32.4**	Certification by Lucy Rutishauser, as Chief Financial Officer of Sinclair Broadcast Group, LLC, pursuant to Rule 13a-14(b) of the Exchange Act and § 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C § 1350).
101*	The Company's Consolidated Financial Statements and related Notes for the quarter ended June 30, 2023 from this Quarterly Report on Form 10-Q, formatted in iXBRL (Inline eXtensible Business Reporting Language).*
104	Cover Page Interactive Data File (included in Exhibit 101).

* Filed herewith.

** In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

85

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized on the 9th day of August 2023.

SINCLAIR, INC.
SINCLAIR BROADCAST GROUP, LLC
By:	/s/ David R. Bochenek
	David R. Bochenek
	Senior Vice President/Chief Accounting Officer
	(Authorized Officer and Chief Accounting Officer)

86

EX-3.1

ARTICLES OF CONVERSION

converting

SINCLAIR BROADCAST GROUP, INC.,
a Maryland corporation

into

SINCLAIR BROADCAST GROUP, LLC,
a Maryland limited liability company

    Sinclair Broadcast Group, Inc., a Maryland corporation (the “Converting Corporation”), hereby certifies that:

FIRST:     These Articles of Conversion shall become effective at 12:01 a.m. Eastern Time on June 1, 2023 (the “Effective Time”).

SECOND: The name of the Converting Corporation is Sinclair Broadcast Group, Inc. The original Articles of Incorporation of the Converting Corporation were filed with the State Department of Assessments and Taxation of Maryland on November 19, 1986.

THIRD: The Converting Corporation is converting (the “Conversion”) into Sinclair Broadcast Group, LLC, a Maryland limited liability company (the “Converted Company”).

FOURTH: The Conversion has been approved in accordance with the provisions of Title 3, Subtitle 9 of the Maryland General Corporation Law.

FIFTH: At the Effective Time, by virtue of the Conversion and without any action on the part of the Converting Corporation or the Converted Company, the sole stockholder of the issued and outstanding shares of capital stock of the Converting Corporation immediately prior to the Effective Time shall automatically receive a one hundred percent (100%) membership interest in the Converted Company.

SIXTH: The undersigned acknowledges these Articles of Conversion to be the act of the Converting Corporation, and further, as to all matters or facts required to be verified under oath, the undersigned acknowledges that to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

[Signature Page Follows]

IN WITNESS WHEREOF, these Articles of Conversion have been duly executed on behalf of the Converting Corporation by its President and Chief Executive Officer and attested by its Executive Vice President and Chief Financial Officer as of the 26th day of May, 2023.

ATTEST:	SINCLAIR BROADCAST GROUP, INC.,
	a Maryland corporation
By: /s/ Lucy Rutishauser	By: /s/ Christopher S. Ripley
Name: Lucy Rutishauser	Name: Christopher S. Ripley
Title:    Executive Vice President and Chief     Financial Officer	Title: President and Chief Executive Officer

EX-3.2

ARTICLES OF ORGANIZATION

OF

SINCLAIR BROADCAST GROUP, LLC

    The undersigned, with the intention of creating a Maryland limited liability company pursuant to Section 3-902 of the Maryland General Corporation Law and the Maryland Limited Liability Company Act, files the following Articles of Organization:

FIRST: These Articles of Organization shall be effective at 12:01 a.m. Eastern Time on June 1, 2023.

SECOND: In accordance with Section 3-902 of the Maryland General Corporation Law, Sinclair Broadcast Group, Inc. (the “Corporation”) is converting into a limited liability company effective at 12:01 a.m. Eastern Time on June 1, 2023. The Corporation was formed in Maryland on November 19, 1986 and its original Articles of Incorporation were filed with the State Department of Assessments and Taxation of Maryland on November 19, 1986.

THIRD: The name of the limited liability company (the “Company”) is Sinclair Broadcast Group, LLC.

FOURTH: The purpose for which the Company is formed is to engage in any and all activities and exercise any power permitted to limited liability companies under the laws of the State of Maryland.

FIFTH: The address of the Company’s principal office in Maryland is 10706 Beaver Dam Road, Hunt Valley, Maryland 21030.

SIXTH: The resident agent of the Company in Maryland is The Corporation Trust, Incorporated, and its address is 2405 York Road, Suite 201, Baltimore County, Lutherville Timonium, Maryland 21093-2264.

[Signature Page Follows]

IN WITNESS WHEREOF, I have adopted and signed these Articles of Organization and do hereby acknowledge that the adoption and signing are my act.

Dated: May 25, 2023

    By: /s/ Christopher S. Ripley

    Name: Christopher S. Ripley

    Title:     Authorized Person

I hereby consent to my designation in this document as resident agent of the Company.

    The Corporation Trust, Incorporated

                         By: /s/ John Flynn

    Name: John Flynn

    Title: Assistant Secretary

Filing party’s return address:

10706 Beaver Dam Road

Hunt Valley, Maryland 21030

EX-3.3

OPERATING AGREEMENT

OF

SINCLAIR BROADCAST GROUP, LLC

THIS OPERATING AGREEMENT (“Agreement”) of SINCLAIR BROADCAST GROUP, LLC, a Maryland limited liability company (the “Company”), is made this 1st day of June, 2023, by and between Sinclair, Inc., a Maryland corporation, as the sole member of the Company (the “Sole Member”), and the Company.

BACKGROUND

    WHEREAS, the Company was originally formed as a corporation on November 19, 1986 upon the filing of Articles of Incorporation for the Company with the Maryland State Department of Assessments and Taxation.

WHEREAS, the Company was converted from a corporation and formed as a limited liability company upon the filing of Articles of Conversion and Articles of Organization for the Company with the Maryland State Department of Assessments and Taxation (the “FormationDate”).

WHEREAS, the Sole Member and the Company desire to enter into this Agreement to set forth their relative rights and obligations with respect to the Company and its management.

NOW, THEREFORE, for good and adequate consideration, the receipt and sufficiency of which is hereby confirmed, and intending to be legally bound, the Sole Member and the Company hereby agree as follows:

1.    Formation and Continuation. The Company was converted from a corporation and organized as a limited liability company upon the Formation Date by the filing of the Articles of Conversion and Articles of Organization with the Maryland State Department of Assessments and Taxation. The Company shall continue as a limited liability company in accordance with the Maryland Limited Liability Company Act, as amended from time to time (the “Act”).

2.    Name. The name of the limited liability company is Sinclair Broadcast Group, LLC.

3.    Purpose. The Company is formed for the object and purpose of engaging in any lawful act or activity for which limited liability companies may be formed under the Act and any and all activities necessary, convenient, desirable or incidental to the foregoing.

4.    Management.

(a)    The business and affairs of the Company shall be managed and operated under the direction of a board of managers (the “Board”). The Board shall initially

consist of five (5) individuals designated by the Sole Member (each, a “Manager”), two (2) of whom shall be individuals who are not employees or officers of the Company or any of its affiliates or directors of any of the affiliates of the Company and would otherwise be considered an “independent director” of the Company under Rule 5605(a)(2) of The Nasdaq Stock Market (or any successor rule) (such individuals, the “Independent Managers”).

(b)    The Board shall have full, complete and exclusive authority, power and discretion to direct the management and operation of the business and affairs of the Company, including by delegating day-to-day management of the business and affairs of the Company to the officers of the Company in accordance with Section 9 of this Agreement and supervising the actions of such officers, and taking any and all other lawful actions necessary or appropriate for the management of the business and affairs of the Company. The Sole Member shall have no power to participate in the management of the Company or to vote on any matter under this Agreement, the Act or otherwise, except (i) as otherwise required by the Act and (ii) for the right of the Sole Member to designate or remove Managers as described in this Section 4.

(c)    The Sole Member shall be entitled to designate all Managers, including to fill any vacancies created by the resignation, removal or death of a Manager or by an increase in the size of the Board (in accordance with Section 4(e) below) or otherwise. No individual shall be eligible to serve as a Manager unless he or she is of legal age of majority. A Manager may resign at any time upon notice to the Company. The Sole Member may remove a Manager at any time and from time to time (with or without cause) and may replace such Manager with a successor.

(d)    Each Manager shall be entitled to serve on the Board until his or her death, resignation as Manager or removal by the Sole Member at any time and for any reason or no reason. Each Manager shall have one vote on all matters before the Board (whether or not such Manager is disinterested in respect of any matter before the Board). The vote, consent, approval or ratification of any matter by those Managers holding at least a majority of the votes held by all Managers present at any applicable meeting of the Board shall be required and shall be sufficient in order to constitute action of the Board. No Manager, acting individually, shall have the actual or apparent authority to take any action purporting to be on behalf of the Company. The Board shall have the power to act only collectively in accordance with this Agreement.

(e)    The size of the Board shall be determined from time to time by a majority of the Managers then serving on the Board or as otherwise determined by the Sole Member; provided that the Board shall at all times have at least two (2) Independent Managers.

(f)    Meetings of the Board may be called by the chairperson of the Board, if any, by Managers representing at least one-third (1/3) of the Managers then serving on the Board or by the Independent Managers. Notice of any meeting shall be given to all Managers not less than twenty-four (24) hours prior to the meeting (or such shorter time frame as shall be reasonably necessary under the circumstances). At all meetings of the Board, a majority of the

Managers then serving on the Board shall constitute a quorum for the transaction of business by the Board. A notice need not specify the purpose of any meeting. Notice of a meeting need not be given to any Manager who signs a waiver of notice, a consent to holding the meeting, an approval of the minutes thereof or a written consent to action taken in lieu of such meeting, whether before or after the meeting, or who attends the meeting without protesting the lack of notice prior to the commencement of the meeting. All such waivers, consents and approvals shall be filed with the Company’s records or made a part of the minutes of the meeting. Managers may participate in any meeting of the Managers by means of conference telephones or video connection so long as all Managers participating can hear or communicate with one another. A Manager so participating is deemed to be present at the meeting.

(g)    The Board shall have the authority to establish committees of the Board with such power and authority as shall be delegated by the Board. Each such committee shall consist of more than one Manager and shall serve at the pleasure of the Board. Each committee of the Board may fix its own rules of procedure and shall hold its meetings as provided by such rules, except as otherwise determined by the Board. Unless otherwise determined by the Board, a majority of the members of any committee of the Board shall constitute a quorum for the transaction of business by such committee.

(h)    Any action that is permitted or required to be taken by the Board or any committee thereof may be taken or ratified, without a meeting and without notice, by written consent of a majority of all of the Managers then serving on the Board or such committee, as applicable, setting forth the specific action to be taken.

5.    Capital Contributions and Membership Interest. The Sole Member of the Company owns 100% of the membership interests in the Company (the “Membership Interest”), as set forth on Schedule A. The Sole Member has contributed to the Company the cash, property, services or promissory obligations, if any, set forth on the books and records of the Company. The Sole Member shall not be required to make any additional capital contributions to the Company. The Sole Member’s Membership Interest in the Company shall not be evidenced by a separate certificate.

6.    Tax Characterization. It is the Sole Member’s intention that, for so long as the Company has one member for U.S. federal and applicable state and local income tax purposes, the Company shall be treated as a disregarded entity and that the activities of the Company shall be deemed to be activities of the Sole Member for such purposes. All provisions of the Company’s Articles of Organization and this Agreement are to be construed so as to preserve such tax status under those circumstances. If at any time the Company has more than one member for U.S. federal and applicable state and local income tax purposes, this Agreement shall be amended.

7.    Distributions. Distributions of cash and/or other assets or property of the Company, from whatever source (including, without limitation, net proceeds of Company operations and the sale, financing or refinancing of Company assets) shall be made to the Sole Member at such times, and in such amounts, as the Board shall determine, provided that such

distributions are not prohibited by any agreement to which the Company is a party or by applicable law.

8.    Duties; Other Interests. Except as expressly set forth in this Agreement, no Covered Person (as defined below) shall have any duties, stated or implied by law or equity, including fiduciary duties, or liabilities to the Company or the Sole Member, and the provisions of this Agreement shall replace any such other duties and liabilities of the Covered Persons. Without limiting the foregoing, each Covered Person may engage in any business or profession or possess any interest in other businesses or professions of every nature and description, independently or with others, including, without limitation, any business or other activity which might be in competition with the business or activities conducted by the Company. The Company shall not have any rights in such ventures, including, without limitation, any rights to the income or profits thereof. Unless otherwise expressly provided in this Agreement, whenever a potential conflict of interest exists or arises between the Sole Member or any of its affiliates (other than the Company and its controlled affiliates), or any Manager, on the one hand, and the Company or any of its controlled affiliates, on the other, any resolution or course of action in respect of such conflict of interest shall be permitted and deemed approved for all purposes, and shall not constitute a breach of this Agreement or of any obligation hereunder, if the resolution or course of action in respect of such conflict of interest is (i) approved by the Independent Managers, (ii) on terms no less favorable to the Company or its controlled affiliates, as applicable, than those generally being provided to or available from unrelated third parties or (iii) fair and reasonable to the Company or its controlled affiliate(s), as applicable, taking into account the totality of the relationships between the parties involved (including other transactions that may be favorable or advantageous to the Company or its controlled affiliates). The Company and the Board may but shall not be required in connection with the resolution of such conflict of interest to seek approval of the Independent Managers of such resolution, and the Board may also adopt a resolution or course of action that has not received the approval of the Independent Managers. If approval of the Independent Managers is not sought and the Board determines that the resolution or course of action taken with respect to a conflict of interest satisfies either of the standards set forth in clause (ii) or (iii) above, then it shall be presumed that, in making its decision, the Board acted in accordance with this Agreement, and in any proceeding brought by or on behalf of the Company or any other person or entity challenging such approval, the person or entity bringing or prosecuting such proceeding shall have the burden of overcoming such presumption.Notwithstanding anything to the contrary set forth in this Agreement, to the fullest extent permitted by applicable law, no Covered Person shall be liable for monetary damages to the Company or any other persons or entities for losses sustained or liabilities incurred as a result of any act or omission of a Covered Person. The Board, any Independent Manager or any officer of the Company may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisers selected by any of them, and any act taken or omitted to be taken in reliance upon the advice or opinion of such persons or entities as to matters that the Board, any Independent Manager or any officer of the Company reasonably believes to be within such person’s or entity’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such advice or opinion.

9.    Officers. The Board may designate one or more individuals to serve as officers of the Company and to serve at the direction of the Board, and the Board may delegate power and authority to such officers. The Company shall have such officers as the Board may from time to time determine, which officers may (but need not) include a President, one or more Vice Presidents (and in case of each such Vice President, with such descriptive title, if any, as the Board shall deem appropriate), a Secretary and a Treasurer. Any two or more offices may be held by the same person. The Board may remove an officer at any time and from time to time (with or without cause) and replace such officer with a successor. An officer may resign at any time upon notice to the Board. Until their subsequent removal or resignation, the officers of the corporation from which the Company was converted on the Formation Date shall continue to serve as the officers of the Company.

10.    Indemnification and Expenses. To the fullest extent permitted by applicable law, the Sole Member, any affiliate of the Sole Member, any officers, directors, managers, employees, representatives or agents of the Sole Member or any of its affiliates (other than the Company and its controlled affiliates), or any director, Manager, officer, employee or agent of the Company or its controlled affiliates (each, a “Covered Person”) shall be indemnified and held harmless by the Company from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including legal fees and expenses), judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Covered Person may be involved, or is threatened to be involved, as a party or otherwise, by reason of his, her or its status as a Covered Person or any act or omission of such Covered Person taken or omitted in the Covered Person’s capacity as such; provided, however, that any indemnity under this Section 10 shall be provided out of and to the extent of Company assets only, and no Covered Person shall have any personal liability on account thereof. To the fullest extent permitted by applicable law, expenses (including legal fees and expenses) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in this Section 10.

11.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland without regard to any conflict of law provisions.

12.    Limited Liability of the Sole Member. The Sole Member shall have no liability for the obligations or liabilities of the Company, except to the extent required by the Act.

13.    Binding Effect. This Agreement shall be legally binding upon the Sole Member and the Company and their respective successors and assigns.

14.    No Third-Party Beneficiaries. Except for the indemnification obligations of the Company and the rights of the Covered Persons as set forth in Sections 8 and 10 of this

Agreement, notwithstanding anything to the contrary contained herein, no provision of this Agreement is intended to benefit any party other than the Company, the signatory hereto and their permitted successors and assigns nor shall any such provision be enforceable by any other party.

15.    Dissolution.     The Company shall have a perpetual existence and shall be dissolved and its affairs shall be wound up solely upon the occurrence of the following events: (a) the determination of the Board to dissolve the Company and wind up its affairs; or (b) the entry by a court of competent jurisdiction of an order dissolving the Company pursuant to the Act.

[Signature Page Follows]

IN WITNESS WHEREOF, the undersigned have executed this Operating Agreement as of the day and year first above written.

COMPANY:

SINCLAIR BROADCAST GROUP, LLC

By: /s/ Christopher S. Ripley

Name: Christopher S. Ripley
Title: President and Chief Executive Officer

SOLE MEMBER:

SINCLAIR, INC.

By: /s/ Christopher S. Ripley
Name: Christopher S. Ripley
Title: President and Chief Executive Officer

Schedule A

Membership Interest

Name of Membership Interest Holder	Outstanding Membership Interests
Sinclair, Inc.	100%

EX-3.4

FIRST AMENDED AND RESTATED

OPERATING AGREEMENT

OF

SINCLAIR BROADCAST GROUP, LLC

THIS FIRST AMENDED AND RESTATED OPERATING AGREEMENT (“Agreement”) of SINCLAIR BROADCAST GROUP, LLC, a Maryland limited liability company (the “Company”), is made this 2nd day of June, 2023, by and between Sinclair Holdings, LLC, a Maryland limited liability company, as the sole member of the Company (the “Sole Member”), and the Company.

BACKGROUND

    WHEREAS, the Company was originally formed as a corporation on November 19, 1986 upon the filing of Articles of Incorporation for the Company with the Maryland State Department of Assessments and Taxation.

WHEREAS, the Company was converted from a corporation and formed as a limited liability company upon the filing of Articles of Conversion and Articles of Organization for the Company with the Maryland State Department of Assessments and Taxation (the “Formation Date”).

WHEREAS, Sinclair, Inc., a Maryland corporation (the “Original Member”) and direct parent of the Sole Member, was the original sole member of the Company as of the Formation Date, and the Original Member transferred and assigned all of its membership interests in the Company to the Sole Member effective as of the date hereof.

WHEREAS, the Company is governed by that certain Operating Agreement of the Company, dated as of June 1, 2023 (the “Prior Agreement”).

WHEREAS, the Sole Member and the Company desire to enter into this Agreement in order to amend and restate the Prior Agreement in its entirety and to set forth their relative rights and obligations with respect to the Company and its management.

NOW, THEREFORE, for good and adequate consideration, the receipt and sufficiency of which is hereby confirmed, and intending to be legally bound, the Sole Member and the Company hereby agree as follows:

1.    Formation and Continuation. The Company was converted from a corporation and organized as a limited liability company upon the Formation Date by the filing of the Articles of Conversion and Articles of Organization with the Maryland State Department of Assessments and Taxation. The Company shall continue as a limited liability company in accordance with the Maryland Limited Liability Company Act, as amended from time to time (the “Act”).

2.    Name. The name of the limited liability company is Sinclair Broadcast Group, LLC.

3.    Purpose. The Company is formed for the object and purpose of engaging in any lawful act or activity for which limited liability companies may be formed under the Act and any and all activities necessary, convenient, desirable or incidental to the foregoing.

4.    Management.

(a)    The business and affairs of the Company shall be managed and operated under the direction of a board of managers (the “Board”). The Board shall initially consist of five (5) individuals designated by the Sole Member (each, a “Manager”), two (2) of whom shall be individuals who are not employees or officers of the Company or any of its affiliates or directors of any of the affiliates of the Company and would otherwise be considered an “independent director” of the Company under Rule 5605(a)(2) of The Nasdaq Stock Market (or any successor rule) (such individuals, the “Independent Managers”).

(b)    The Board shall have full, complete and exclusive authority, power and discretion to direct the management and operation of the business and affairs of the Company, including by delegating day-to-day management of the business and affairs of the Company to the officers of the Company in accordance with Section 9 of this Agreement and supervising the actions of such officers, and taking any and all other lawful actions necessary or appropriate for the management of the business and affairs of the Company. The Sole Member shall have no power to participate in the management of the Company or to vote on any matter under this Agreement, the Act or otherwise, except (i) as otherwise required by the Act and (ii) for the right of the Sole Member to designate or remove Managers as described in this Section 4.

(c)    The Sole Member shall be entitled to designate all Managers, including to fill any vacancies created by the resignation, removal or death of a Manager or by an increase in the size of the Board (in accordance with Section 4(e) below) or otherwise. No individual shall be eligible to serve as a Manager unless he or she is of legal age of majority. A Manager may resign at any time upon notice to the Company. The Sole Member may remove a Manager at any time and from time to time (with or without cause) and may replace such Manager with a successor.

(d)    Each Manager shall be entitled to serve on the Board until his or her death, resignation as Manager or removal by the Sole Member at any time and for any reason or no reason. Each Manager shall have one vote on all matters before the Board (whether or not such Manager is disinterested in respect of any matter before the Board). The vote, consent, approval or ratification of any matter by those Managers holding at least a majority of the votes held by all Managers present at any applicable meeting of the Board shall be required and shall be sufficient in order to constitute action of the Board. No Manager, acting individually, shall have the actual or apparent authority to take any action purporting to be on behalf of the

Company. The Board shall have the power to act only collectively in accordance with this Agreement.

(e)    The size of the Board shall be determined from time to time by a majority of the Managers then serving on the Board or as otherwise determined by the Sole Member; provided that the Board shall at all times have at least two (2) Independent Managers.

(f)    Meetings of the Board may be called by the chairperson of the Board, if any, by Managers representing at least one-third (1/3) of the Managers then serving on the Board or by the Independent Managers. Notice of any meeting shall be given to all Managers not less than twenty-four (24) hours prior to the meeting (or such shorter time frame as shall be reasonably necessary under the circumstances). At all meetings of the Board, a majority of the Managers then serving on the Board shall constitute a quorum for the transaction of business by the Board. A notice need not specify the purpose of any meeting. Notice of a meeting need not be given to any Manager who signs a waiver of notice, a consent to holding the meeting, an approval of the minutes thereof or a written consent to action taken in lieu of such meeting, whether before or after the meeting, or who attends the meeting without protesting the lack of notice prior to the commencement of the meeting. All such waivers, consents and approvals shall be filed with the Company’s records or made a part of the minutes of the meeting. Managers may participate in any meeting of the Managers by means of conference telephones or video connection so long as all Managers participating can hear or communicate with one another. A Manager so participating is deemed to be present at the meeting.

(g)    The Board shall have the authority to establish committees of the Board with such power and authority as shall be delegated by the Board. Each such committee shall consist of more than one Manager and shall serve at the pleasure of the Board. Each committee of the Board may fix its own rules of procedure and shall hold its meetings as provided by such rules, except as otherwise determined by the Board. Unless otherwise determined by the Board, a majority of the members of any committee of the Board shall constitute a quorum for the transaction of business by such committee.

(h)    Any action that is permitted or required to be taken by the Board or any committee thereof may be taken or ratified, without a meeting and without notice, by written consent of a majority of all of the Managers then serving on the Board or such committee, as applicable, setting forth the specific action to be taken.

5.    Capital Contributions and Membership Interest. The Sole Member of the Company owns 100% of the membership interests in the Company (the “Membership Interest”), as set forth on Schedule A. The Sole Member or its predecessor has contributed to the Company the cash, property, services or promissory obligations, if any, set forth on the books and records of the Company. The Sole Member shall not be required to make any additional capital contributions to the Company. The Sole Member’s Membership Interest in the Company shall not be evidenced by a separate certificate.

6.    Tax Characterization. It is the Sole Member’s intention that, for so long as the Company has one member for U.S. federal and applicable state and local income tax purposes, the Company shall be treated as a disregarded entity and that the activities of the Company shall be deemed to be activities of the Sole Member for such purposes. All provisions of the Company’s Articles of Organization and this Agreement are to be construed so as to preserve such tax status under those circumstances. If at any time the Company has more than one member for U.S. federal and applicable state and local income tax purposes, this Agreement shall be amended.

7.    Distributions. Distributions of cash and/or other assets or property of the Company, from whatever source (including, without limitation, net proceeds of Company operations and the sale, financing or refinancing of Company assets) shall be made to the Sole Member at such times, and in such amounts, as the Board shall determine, provided that such distributions are not prohibited by any agreement to which the Company is a party or by applicable law.

8.    Duties; Other Interests. Except as expressly set forth in this Agreement, no Covered Person (as defined below) shall have any duties, stated or implied by law or equity, including fiduciary duties, or liabilities to the Company or the Sole Member, and the provisions of this Agreement shall replace any such other duties and liabilities of the Covered Persons. Without limiting the foregoing, each Covered Person may engage in any business or profession or possess any interest in other businesses or professions of every nature and description, independently or with others, including, without limitation, any business or other activity which might be in competition with the business or activities conducted by the Company. The Company shall not have any rights in such ventures, including, without limitation, any rights to the income or profits thereof. Unless otherwise expressly provided in this Agreement, whenever a potential conflict of interest exists or arises between the Sole Member or any of its affiliates (other than the Company and its controlled affiliates), or any Manager, on the one hand, and the Company or any of its controlled affiliates, on the other, any resolution or course of action in respect of such conflict of interest shall be permitted and deemed approved for all purposes, and shall not constitute a breach of this Agreement or of any obligation hereunder, if the resolution or course of action in respect of such conflict of interest is (i) approved by the Independent Managers, (ii) on terms no less favorable to the Company or its controlled affiliates, as applicable, than those generally being provided to or available from unrelated third parties or (iii) fair and reasonable to the Company or its controlled affiliate(s), as applicable, taking into account the totality of the relationships between the parties involved (including other transactions that may be favorable or advantageous to the Company or its controlled affiliates). The Company and the Board may but shall not be required in connection with the resolution of such conflict of interest to seek approval of the Independent Managers of such resolution, and the Board may also adopt a resolution or course of action that has not received the approval of the Independent Managers. If approval of the Independent Managers is not sought and the Board determines that the resolution or course of action taken with respect to a conflict of interest satisfies either of the standards set forth in clause (ii) or (iii) above, then it shall be presumed that, in making its decision, the Board acted in accordance with this Agreement, and in any proceeding brought by or on behalf of the Company or any other person or entity challenging such approval, the person

or entity bringing or prosecuting such proceeding shall have the burden of overcoming such presumption. Notwithstanding anything to the contrary set forth in this Agreement, to the fullest extent permitted by applicable law, no Covered Person shall be liable for monetary damages to the Company or any other persons or entities for losses sustained or liabilities incurred as a result of any act or omission of a Covered Person. The Board, any Independent Manager or any officer of the Company may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisers selected by any of them, and any act taken or omitted to be taken in reliance upon the advice or opinion of such persons or entities as to matters that the Board, any Independent Manager or any officer of the Company reasonably believes to be within such person’s or entity’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such advice or opinion.

9.    Officers. The Board may designate one or more individuals to serve as officers of the Company and to serve at the direction of the Board, and the Board may delegate power and authority to such officers. The Company shall have such officers as the Board may from time to time determine, which officers may (but need not) include a President, one or more Vice Presidents (and in case of each such Vice President, with such descriptive title, if any, as the Board shall deem appropriate), a Secretary and a Treasurer. Any two or more offices may be held by the same person. The Board may remove an officer at any time and from time to time (with or without cause) and replace such officer with a successor. An officer may resign at any time upon notice to the Board. Until their subsequent removal or resignation, the officers of the corporation from which the Company was converted on the Formation Date shall continue to serve as the officers of the Company.

10.    Indemnification and Expenses. To the fullest extent permitted by applicable law, the Sole Member, any affiliate of the Sole Member, any officers, directors, managers, employees, representatives or agents of the Sole Member or any of its affiliates (other than the Company and its controlled affiliates), or any director, Manager, officer, employee or agent of the Company or its controlled affiliates (each, a “Covered Person”) shall be indemnified and held harmless by the Company from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including legal fees and expenses), judgments, fines, penalties, interest, settlements or other amounts arising from any and all claims, demands, actions, suits or proceedings, whether civil, criminal, administrative or investigative, in which any Covered Person may be involved, or is threatened to be involved, as a party or otherwise, by reason of his, her or its status as a Covered Person or any act or omission of such Covered Person taken or omitted in the Covered Person’s capacity as such; provided, however, that any indemnity under this Section 10 shall be provided out of and to the extent of Company assets only, and no Covered Person shall have any personal liability on account thereof. To the fullest extent permitted by applicable law, expenses (including legal fees and expenses) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in this Section 10.

11.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland without regard to any conflict of law provisions.

12.    Limited Liability of the Sole Member. The Sole Member shall have no liability for the obligations or liabilities of the Company, except to the extent required by the Act.

13.    Binding Effect. This Agreement shall be legally binding upon the Sole Member and the Company and their respective successors and assigns.

14.    No Third-Party Beneficiaries. Except for the indemnification obligations of the Company and the rights of the Covered Persons as set forth in Sections 8 and 10 of this Agreement, notwithstanding anything to the contrary contained herein, no provision of this Agreement is intended to benefit any party other than the Company, the signatory hereto and their permitted successors and assigns nor shall any such provision be enforceable by any other party.

15.    Dissolution.     The Company shall have a perpetual existence and shall be dissolved and its affairs shall be wound up solely upon the occurrence of the following events: (a) the determination of the Board to dissolve the Company and wind up its affairs; or (b) the entry by a court of competent jurisdiction of an order dissolving the Company pursuant to the Act.

[Signature Page Follows]

IN WITNESS WHEREOF, the undersigned have executed this First Amended and Restated Operating Agreement as of the day and year first above written.

COMPANY:

SINCLAIR BROADCAST GROUP, LLC

By: /s/ Christopher S. Ripley

Name: Christopher S. Ripley
Title: President and Chief Executive Officer

SOLE MEMBER:

SINCLAIR HOLDINGS, LLC

By: /s/ Christopher S. Ripley
Name: Christopher S. Ripley
Title: President and Chief Executive Officer

Schedule A

Membership Interest

Name of Membership Interest Holder	Outstanding Membership Interests
Sinclair Holdings, LLC	100%

EX-10.2

AMENDMENT NUMBER ONE

TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT

    THIS AMENDMENT NUMBER ONE TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Amendment”) is dated this 20th day of June 2023 with an effective date as of the 1st day of January 2023 (the “Effective Date”), between Sinclair Television Group, Inc., a Maryland corporation ("STG" or “Company”), and Rob Weisbord ("Employee") to that certain Amended and Restated Employment Agreement effective as of January 1, 2020 (the “Agreement”).

WHEREAS, the Company has promoted Employee as provided for in Section 1 below; and

WHEREAS, the parties desire to increase Employee’s compensation; and

WHEREAS, all capitalized terms shall have the same meaning as ascribed to them in the Agreement; and

    WHEREAS, subject to the terms of the Agreement, it is the intent of the parties hereto to amend the Agreement in accordance with the terms hereof.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:

1.    The parties agree that Section 1.1 of the Agreement is amended by deleting the reference to “President, Local News and Marketing Services,” and replacing such reference with “Chief Operating Officer.”

2.    The Agreement is amended by deleting Section 3.1 in its entirety and replaced with the following:

“3.1Compensation.Employee’s annual base salary shall be One Million Four Hundred Thirty-Three Thousand Two Hundred Fifty Dollars ($1,433,250) effective January 1, 2023; and shall increase to One Million Five Hundred Four Thousand Nine Hundred Twelve Dollars and Fifty Cents ($1,504,912.50) effective January 1, 2024 (“Base Salary”). Company agrees that the foregoing Base Salary cannot be reduced. During each subsequent year of employment beginning January 1, 2025, Employee’s Base Salary shall be determined by the SBG Compensation Committee, in its absolute and complete discretion. In addition, the Employee will be eligible to certain Incentive Compensation as further described in Section 3.2 of this Agreement.”

3.    Section 3.2 (a)(i) of the Agreement is amended by deleting the reference to “One Hundred Twenty-Five Thousand Dollars ($125,000)” and replacing such reference with “One Million Four Hundred Thirty-Three Thousand Two Hundred Fifty Dollars ($1,433,250) for the calendar year ending December 31, 2023, and One Million Five Hundred Four Thousand Nine Hundred Twelve Dollars and Fifty Cents ($1,504,912.50) for the calendar year ending December 31, 2024”.

4.    Section 3.2 (a)(ii) of the Agreement is amended by deleting the reference to “Two Hundred Thousand Dollars ($200,000)” and replacing such reference with “Four Hundred Thousand Dollars ($400,000)”.

5.    Section 3.2 (b)(i) of the Agreement is amended by (a) deleting the following words “in respect of two hundred thousand (200,000) shares (each a “SARS Grant”)”, and replacing such wording with “the number of shares valued at Five Hundred Thousand Dollars and no cents ($500,000.00) as determined by the Comp Committee at the time the annual SARS

Grant is issued for each calendar year ending December 31, 2022 (issued in 2023), December 31, 2023, (issued in 2024) and December 31, 2024 (issued in 2025) (each, a “SARS Grant”); and for each of the calendar years ending December 31, 2023 and December 31, 2024, the Company shall grant to Employee restricted stock in the number of shares equivalent to One Million Dollars and no cents ($1,000,000.00); (b) deleting the reference to “four (4) year pro-rata vesting”, and replacing such reference with “two (2) year pro-rata vesting”; and (c) deleting the reference to “1996 Long Term Incentive Plan” and replacing such reference with “Sinclair Broadcast Group, Inc. 2022 Stock Incentive Plan (“SIP”).”

6.    The Agreement is amended by adding the following subsection:

    “3.2 (c) Longevity Bonus Compensation. Provided that Employee has been continually employed in good standing by the Company from the date hereof to and including January 1, 2027, the Company agrees to pay Employee one-time special longevity bonuses in the amount of: (i) Three Million Dollars and No/100 Cents ($3,000,000.00) (the “Guaranteed Longevity Bonus”) and (ii) Two Million Dollars and No/100 Cents ($2,000,000.00) (the “Conditional Longevity Bonus” along with the Guaranteed Longevity Bonus, collectively, the “Longevity Bonus”) payable as one lump sum in the form of cash. The Conditional Longevity Bonus shall be conditioned on that the earnings before interest, taxes, depreciation and amortization (“EBITDA”), less net retransmission revenue, for Sinclair Television Group, Inc. for the calendar years ending December 31, 2025 and December 31, 2026 is greater than the EBITDA, less net retransmission revenue, for Sinclair Television Group, Inc. for the calendar years ending December 31, 2021 and December 31, 2022, as determined by the Company’s standard and consistent accounting practices. Any earned Longevity Bonus shall be paid to Employee no later than March 31, 2027 unless agreed to otherwise by the Company and Employee or accelerated in accordance with the Agreement. In the event that Employee’s employment is terminated pursuant to Section 4.1 (a)(7) (due to Change in Control), then the Company’s successor shall pay Employee the Longevity Bonus within thirty (30) days after the Termination Date in the form of cash. T”

7.    The Agreement is amended by deleting all references to “LTIP” and replacing such references with “SIP.”

8.    Section 4.1(d) of the Agreement is hereby amended by adding the following subsentence:

    “; or (iii) a more than five percent (5.0%) reduction in Employee’s Base Salary (other than a reduction consistent with a company-wide reduction in pay affecting substantially all executive employees of SBG and its subsidiaries).”

9.    Section 4.2(a) of the Agreement is hereby amended by adding the following subsection:

“4.    within thirty (30) days after the Termination Date, Company shall pay Employee a lump sum separation payment in the amount equal to one month’s Base Salary in effect at the time of termination (not including bonuses) for each full year of his continuous employment with the Company (the “Separation Payment”).”

10.    Section 4.2(b) of the Agreement is hereby amended by adding the following subsection:

    “4.    the Separation Payment.”

11.    Section 4.2 (e)(1) of the Agreement is hereby amended by deleting the subsection in its entirety and replacing such subsection as follows:

“1.    the Separation Payment; provided however, the Company’s obligation to make the Separation Payment shall be conditioned upon Employee’s execution and delivery to Company of a general release by Employee of all claims against Company and its subsidiaries in form and substance reasonably acceptable to Company and consistent with the terms hereof;”

12.    This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one instrument that is binding upon all of the parties hereto, notwithstanding that all parties are not signatories to the same counterpart. This Amendment may be executed and/or delivered via facsimile, electronic mail (including .pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly executed and delivered and be valid and effective for all purposes. This Amendment shall be considered to have been executed by a person if there exists a photocopy, facsimile copy or electronic/PDF copy of an original hereof or of a counterpart hereof that has been signed by such person. Any photocopy, facsimile copy or electronic/PDF copy of this instrument or a counterpart hereof shall be admissible into evidence in any proceeding as though the same were an original.

13.    Except as expressly provided herein, the Agreement shall not be amended or modified by this Amendment and each of the terms thereof shall continue in full force and effect.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first written above.

SINCLAIR TELEVISION GROUP, INC.

a Maryland corporation

By: /s/ Christopher S. Ripley

Name:    Chris Ripley

Title:    President and Chief Executive Officer

EMPLOYEE:

/s/ Rob Weisbord

ROB WEISBORD

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Christopher S. Ripley, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sinclair, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

A)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

B)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

C)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

D)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

A)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

B)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 9, 2023
		/s/ Christopher S. Ripley
		Signature:	Christopher S. Ripley
			Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Lucy A. Rutishauser, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sinclair, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

A)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

B)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

C)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

D)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

A)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

B)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 9, 2023
		/s/ Lucy A. Rutishauser
		Signature:	Lucy A. Rutishauser
			Chief Financial Officer

EX-31.3

EXHIBIT 31.3

CERTIFICATION

I, Christopher S. Ripley, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sinclair Broadcast Group, LLC;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

A)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

B)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

C)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

D)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

A)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

B)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 9, 2023
		/s/ Christopher S. Ripley
		Signature:	Christopher S. Ripley
			Chief Executive Officer

EX-31.4

EXHIBIT 31.4

CERTIFICATION

I, Lucy A. Rutishauser, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sinclair Broadcast Group, LLC;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

A)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

B)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

C)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

D)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

A)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

B)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 9, 2023
		/s/ Lucy A. Rutishauser
		Signature:	Lucy A. Rutishauser
			Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Sinclair, Inc. (the “Company”) for the period ending June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher S. Ripley, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Christopher S. Ripley

Christopher S. Ripley

Chief Executive Officer

August 9, 2023

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Sinclair, Inc. (the “Company”) for the period ending June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lucy A. Rutishauser, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Lucy A. Rutishauser

Lucy A. Rutishauser

Chief Financial Officer

August 9, 2023

EX-32.3

EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Sinclair Broadcast Group, LLC (the “Company”) for the period ending June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher S. Ripley, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Christopher S. Ripley

Christopher S. Ripley

Chief Executive Officer

August 9, 2023

EX-32.4

EXHIBIT 32.4

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report on Form 10-Q of Sinclair Broadcast Group, LLC (the “Company”) for the period ending June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lucy A. Rutishauser, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Lucy A. Rutishauser

Lucy A. Rutishauser

Chief Financial Officer

August 9, 2023

XML

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 07, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	333-271072
Entity Registrant Name	Sinclair, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	92-1076143
Entity Address, Address Line One	10706 Beaver Dam Road
Entity Address, City or Town	Hunt Valley
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21030
City Area Code	410
Local Phone Number	568-1500
Former Name	Sinclair Broadcast Group, Inc.
Title of 12(b) Security	Class A Common Stock, par value $ 0.01 per share
Trading Symbol	SBGI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001971213
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Sinclair Broadcast Group, LLC
Entity Information [Line Items]
Entity File Number	000-26076
Entity Registrant Name	Sinclair Broadcast Group, LLC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-1494660
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000912752
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		39,649,259
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		23,775,056

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents		$ 728		$ 884
Accounts receivable, net of allowance for doubtful accounts of $5 as of both periods		582		612
Income taxes receivable		6		5
Prepaid expenses and other current assets		190		182
Total current assets		1,506		1,683
Property and equipment, net		715		728
Operating lease assets		133		145
Goodwill		2,082		2,088
Indefinite-lived intangible assets		150		150
Other assets		752		964
Total assets	[1]	6,201		6,704	[2]
Current liabilities:
Accounts payable and accrued liabilities		452		397
Current portion of notes payable, finance leases, and commercial bank financing		37		38
Current portion of operating lease liabilities		21		23
Current portion of program contracts payable		48		83
Other current liabilities		66		67
Total current liabilities		624		608
Notes payable, finance leases, and commercial bank financing, less current portion		4,185		4,227
Operating lease liabilities, less current portion		145		154
Program contracts payable, less current portion		7		10
Deferred tax liabilities		387		610
Other long-term liabilities		212		220
Total liabilities	[1]	5,560		5,829	[2]
Commitments and contingencies (See Note 5)
Redeemable noncontrolling interests		0		194
Shareholders' equity:
Additional paid-in capital		510		624
Retained earnings		184		122
Accumulated other comprehensive income		7		1
Total SBG (deficit) equity		702		748
Noncontrolling interests		(61)		(67)
Total equity		641	$ 831	681		$ 642	$ 703	$ (1,706)
Total liabilities, redeemable noncontrolling interests, and equity		6,201		6,704
Class A Common Stock
Shareholders' equity:
Common Stock		1		1
Class B Common Stock
Shareholders' equity:
Common Stock		0		0
Customer relationships, net
Current assets:
Definite-lived intangible assets, net		405		444
Other definite-lived intangible assets, net
Current assets:
Definite-lived intangible assets, net		$ 458		$ 502

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions		Jun. 30, 2023	Jun. 01, 2023	Dec. 31, 2022
Accounts receivable, allowance for doubtful accounts		$ 5		$ 5
Assets	[1]	6,201		6,704	[2]
Liabilities	[1]	5,560		5,829	[2]
Consolidated VIEs
Assets		78		115
Liabilities		22		26
Consolidated VIEs | Nonrecourse
Liabilities		$ 16		$ 18
Class A Common Stock
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)		500,000,000		500,000,000
Common stock, shares issued (in shares)		39,274,843		45,847,879
Common stock, shares outstanding (in shares)		39,274,843		45,847,879
Class B Common Stock
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)		140,000,000		140,000,000
Common stock, shares issued (in shares)		23,775,056		23,775,056
Common stock, shares outstanding (in shares)		23,775,056		23,775,056

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES:
Media revenues	$ 761	$ 831	$ 1,527	$ 2,106
Non-media revenues	7	6	14	19
Revenue	768	837	1,541	2,125
OPERATING EXPENSES:
Media programming and production expenses	413	403	811	1,161
Media selling, general and administrative expenses	190	195	381	415
Amortization of program contract costs	19	21	41	46
Non-media expenses	9	10	21	23
Depreciation of property and equipment	32	24	56	52
Corporate general and administrative expenses	62	38	120	85
Amortization of definite-lived intangible assets	41	43	82	136
Gain on deconsolidation of subsidiary	0	0	0	(3,357)
Loss (gain) on asset dispositions and other, net of impairment	5	(4)	11	(9)
Total operating expenses (gains)	771	730	1,523	(1,448)
Operating (loss) income	(3)	107	18	3,573
OTHER INCOME (EXPENSE):
Interest expense including amortization of debt discount and deferred financing costs	(76)	(54)	(150)	(169)
Gain on extinguishment of debt	11	3	11	3
(Loss) income from equity method investments	(1)	3	30	15
Other expense, net	(38)	(105)	(27)	(165)
Total other (expense) income	(104)	(153)	(136)	(316)
(Loss) income before income taxes	(107)	(46)	(118)	3,257
INCOME TAX BENEFIT (PROVISION)	20	40	224	(647)
Net income (loss)	(87)	(6)	106	2,610
Net (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Net income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Net income (loss) attributable to Sinclair	$ (89)	$ (11)	$ 96	$ 2,576
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR:
Basic earnings per share (in dollars per share)	$ (1.38)	$ (0.17)	$ 1.44	$ 36.00
Diluted earnings per share (in dollars per share)	$ (1.38)	$ (0.17)	$ 1.43	$ 36.00
Basic weighted average common shares outstanding (in shares)	64,012	70,897	66,862	71,527
Diluted weighted average common and common equivalent shares outstanding (in shares)	64,012	70,897	66,947	71,533

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (87)	$ (6)	$ 106	$ 2,610
Unrealized gain on interest rate swap, net of tax	9	0	6	0
Share of other comprehensive income of equity method investments	0	0	0	3
Comprehensive (loss) income	(78)	(6)	112	2,613
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Comprehensive income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Comprehensive (loss) income attributable to Sinclair	$ (80)	$ (11)	$ 102	$ 2,579

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interests
Beginning balance at Dec. 31, 2021	$ 197
Increase (Decrease) in Temporary Equity
Distributions to noncontrolling interests	(3)
Deconsolidation of subsidiary	(16)
Net income (loss)	9
Ending balance at Jun. 30, 2022	187
Beginning balance (in shares) at Dec. 31, 2021				49,314,303	23,775,056
Beginning balance at Dec. 31, 2021	(1,706)			$ 1	$ 0	$ 691	$ (2,460)	$ (2)	$ 64
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Class A and Class B Common Stock	(37)						(37)
Repurchases of Class A Common Stock (in shares)				(4,058,319)
Repurchases of Class A Common Stock	(104)					(104)
Class A Common Stock issued pursuant to employee benefit plans (in shares)				1,214,562
Class A Common Stock issued pursuant to employee benefit plans	41					41
Distributions to noncontrolling interests	(5)								(5)
Other comprehensive income	3							3
Deconsolidation of subsidiary	(151)							(3)	(148)
Net (loss) income	2,601						2,576		25
Ending balance (in shares) at Jun. 30, 2022				46,470,546	23,775,056
Ending balance at Jun. 30, 2022	642			$ 1	$ 0	628	79	(2)	(64)
Beginning balance at Mar. 31, 2022	184
Increase (Decrease) in Temporary Equity
Distributions to noncontrolling interests	(2)
Net income (loss)	5
Ending balance at Jun. 30, 2022	187
Beginning balance (in shares) at Mar. 31, 2022				47,934,815	23,775,056
Beginning balance at Mar. 31, 2022	703			$ 1	$ 0	657	109	(2)	(62)
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Class A and Class B Common Stock	(19)						(19)
Repurchases of Class A Common Stock (in shares)				(1,585,834)
Repurchases of Class A Common Stock	(36)					(36)
Class A Common Stock issued pursuant to employee benefit plans (in shares)				121,565
Class A Common Stock issued pursuant to employee benefit plans	7					7
Distributions to noncontrolling interests	(2)								(2)
Net (loss) income	(11)						(11)
Ending balance (in shares) at Jun. 30, 2022				46,470,546	23,775,056
Ending balance at Jun. 30, 2022	642			$ 1	$ 0	628	79	(2)	(64)
Beginning balance at Dec. 31, 2022	194
Increase (Decrease) in Temporary Equity
Redemption, net	(190)
Net income (loss)	(4)
Ending balance at Jun. 30, 2023	0
Beginning balance (in shares) at Dec. 31, 2022		45,847,879	23,775,056	45,847,879	23,775,056
Beginning balance at Dec. 31, 2022	681			$ 1	$ 0	624	122	1	(67)
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Class A and Class B Common Stock	(34)						(34)
Repurchases of Class A Common Stock (in shares)				(8,785,022)
Repurchases of Class A Common Stock	(153)					(153)
Class A Common Stock issued pursuant to employee benefit plans (in shares)				2,211,986
Class A Common Stock issued pursuant to employee benefit plans	39					39
Distributions to noncontrolling interests	(8)								(8)
Other comprehensive income	6							6
Net (loss) income	110						96		14
Ending balance (in shares) at Jun. 30, 2023		39,274,843	23,775,056	39,274,843	23,775,056
Ending balance at Jun. 30, 2023	641			$ 1	$ 0	510	184	7	(61)
Beginning balance at Mar. 31, 2023	0
Increase (Decrease) in Temporary Equity
Net income (loss)	0
Ending balance at Jun. 30, 2023	0
Beginning balance (in shares) at Mar. 31, 2023				44,360,502	23,775,056
Beginning balance at Mar. 31, 2023	831			$ 1	$ 0	602	289	(2)	(59)
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Class A and Class B Common Stock	(16)						(16)
Repurchases of Class A Common Stock (in shares)				(5,201,809)
Repurchases of Class A Common Stock	(100)					(100)
Class A Common Stock issued pursuant to employee benefit plans (in shares)				116,150
Class A Common Stock issued pursuant to employee benefit plans	8					8
Distributions to noncontrolling interests	(4)								(4)
Other comprehensive income	9							9
Net (loss) income	(87)						(89)		2
Ending balance (in shares) at Jun. 30, 2023		39,274,843	23,775,056	39,274,843	23,775,056
Ending balance at Jun. 30, 2023	$ 641			$ 1	$ 0	$ 510	$ 184	$ 7	$ (61)

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class A Common Stock
Dividends declared per share (in dollars per share)	$ 0.25	$ 0.25	$ 0.50	$ 0.50
Dividends paid per share (in dollars per share)	0.25	0.25	0.50	0.50
Class B Common Stock
Dividends declared per share (in dollars per share)	0.25	0.25	0.50	0.50
Dividends paid per share (in dollars per share)	$ 0.25	$ 0.25	$ 0.50	$ 0.50

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ 106	$ 2,610
Adjustments to reconcile net income to net cash flows from operating activities:
Amortization of sports programming rights	0	326
Amortization of definite-lived intangible and other assets	82	136
Depreciation of property and equipment	56	52
Amortization of program contract costs	41	46
Stock-based compensation	36	38
Deferred tax (benefit) provision	(227)	654
Loss (gain) on asset dispositions and other, net of impairment	11	(9)
Gain on deconsolidation of subsidiary	0	(3,357)
Income from equity method investments	(30)	(15)
Loss from investments	53	159
Distributions from investments	29	31
Sports programming rights payments	0	(325)
Rebate payments to distributors	0	(15)
Gain on extinguishment of debt	(11)	(3)
Change in assets and liabilities, net of acquisitions and deconsolidation of subsidiary:
Decrease in accounts receivable	26	29
Increase in prepaid expenses and other current assets	(47)	(107)
Increase in accounts payable and accrued and other current liabilities	62	29
Net change in net income taxes payable/receivable	(1)	(21)
Decrease in program contracts payable	(46)	(52)
Other, net	2	1
Net cash flows from operating activities	142	207
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	(40)	(45)
Deconsolidation of subsidiary cash	0	(315)
Purchases of investments	(39)	(61)
Distributions from investments	204	81
Other, net	4	11
Net cash flows from (used in) investing activities	129	(329)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	0	728
Repayments of notes payable, commercial bank financing, and finance leases	(38)	(845)
Repurchase of outstanding Class A Common Stock	(153)	(104)
Dividends paid on Class A and Class B Common Stock	(34)	(36)
Dividends paid on redeemable subsidiary preferred equity	0	(3)
Redemption of redeemable subsidiary preferred equity	(190)	0
Distributions to noncontrolling interests, net	(8)	(5)
Other, net	(4)	(12)
Net cash flows used in financing activities	(427)	(277)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(156)	(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884	819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$ 728	$ 420

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Jun. 30, 2023		Dec. 31, 2022
Current assets:
Cash and cash equivalents		$ 728		$ 884
Accounts receivable, net of allowance for doubtful accounts of $4 and $5, respectively		582		612
Income taxes receivable		6		5
Prepaid expenses and other current assets		190		182
Total current assets		1,506		1,683
Property and equipment, net		715		728
Operating lease assets		133		145
Goodwill		2,082		2,088
Indefinite-lived intangible assets		150		150
Other assets		752		964
Total assets	[1]	6,201		6,704	[2]
Current liabilities:
Accounts payable and accrued liabilities		452		397
Current portion of notes payable, finance leases, and commercial bank financing		37		38
Current portion of operating lease liabilities		21		23
Current portion of program contracts payable		48		83
Other current liabilities		66		67
Total current liabilities		624		608
Notes payable, finance leases, and commercial bank financing, less current portion		4,185		4,227
Operating lease liabilities, less current portion		145		154
Program contracts payable, less current portion		7		10
Deferred tax liabilities		387		610
Other long-term liabilities		212		220
Total liabilities	[1]	5,560		5,829	[2]
Commitments and contingencies (See Note 5)
Redeemable noncontrolling interests		0		194
Old Sinclair shareholders' equity:
Additional paid-in capital		510		624
Retained earnings		184		122
Accumulated other comprehensive income		7		1
Total SBG (deficit) equity		702		748
Noncontrolling interests		(61)		(67)
Total equity		641		681
Total liabilities, redeemable noncontrolling interests, and equity		6,201		6,704
Class A Common Stock
Old Sinclair shareholders' equity:
Common Stock		1		1
Class B Common Stock
Old Sinclair shareholders' equity:
Common Stock		0		0
Customer relationships, net
Current assets:
Definite-lived intangible assets, net		405		444
Other definite-lived intangible assets, net
Current assets:
Definite-lived intangible assets, net		458		502
Sinclair Broadcast Group, LLC
Current assets:
Cash and cash equivalents		368		884
Accounts receivable, net of allowance for doubtful accounts of $4 and $5, respectively		544		612
Income taxes receivable		6		5
Prepaid expenses and other current assets		146		182
Total current assets		1,064		1,683
Property and equipment, net		689		728
Operating lease assets		132		145
Goodwill		2,016		2,088
Indefinite-lived intangible assets		123		150
Definite-lived intangible assets, net		715		946
Other assets		255		964
Total assets		4,994	[2]	6,704
Current liabilities:
Accounts payable and accrued liabilities		378		397
Current portion of notes payable, finance leases, and commercial bank financing		36		38
Current portion of operating lease liabilities		20		23
Current portion of program contracts payable		48		83
Other current liabilities		56		67
Total current liabilities		538		608
Notes payable, finance leases, and commercial bank financing, less current portion		4,170		4,227
Operating lease liabilities, less current portion		145		154
Program contracts payable, less current portion		7		10
Deferred tax liabilities		394		610
Other long-term liabilities		212		220
Total liabilities		5,466	[2]	5,829
Commitments and contingencies (See Note 5)
Redeemable noncontrolling interests		0		194
Old Sinclair shareholders' equity:
Additional paid-in capital				624
Retained earnings		(418)		122
Accumulated other comprehensive income		7		1
Total SBG (deficit) equity		(411)		748
Noncontrolling interests		(61)		(67)
Total equity		(472)		681
Total liabilities, redeemable noncontrolling interests, and equity		4,994		6,704
Sinclair Broadcast Group, LLC | Class A Common Stock
Old Sinclair shareholders' equity:
Common Stock				1
Sinclair Broadcast Group, LLC | Class B Common Stock
Old Sinclair shareholders' equity:
Common Stock				0
Sinclair Broadcast Group, LLC | Customer relationships, net
Current assets:
Definite-lived intangible assets, net		265		444
Sinclair Broadcast Group, LLC | Other definite-lived intangible assets, net
Current assets:
Definite-lived intangible assets, net		$ 450		$ 502

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions		Jun. 30, 2023		Dec. 31, 2022
Accounts receivable, allowance for doubtful accounts		$ 5		$ 5
Assets	[1]	6,201		6,704	[2]
Liabilities	[1]	5,560		5,829	[2]
Consolidated VIEs
Assets		78		115
Liabilities		22		26
Consolidated VIEs | Nonrecourse
Liabilities		$ 16		$ 18
Class A Common Stock
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01
Common stock, shares authorized (in shares)		500,000,000		500,000,000
Common stock, shares issued (in shares)		39,274,843		45,847,879
Common stock, shares outstanding (in shares)		39,274,843		45,847,879
Class B Common Stock
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01
Common stock, shares authorized (in shares)		140,000,000		140,000,000
Common stock, shares issued (in shares)		23,775,056		23,775,056
Common stock, shares outstanding (in shares)		23,775,056		23,775,056
Sinclair Broadcast Group, LLC
Accounts receivable, allowance for doubtful accounts		$ 4		$ 5
Assets		4,994	[2]	6,704
Liabilities		5,466	[2]	5,829
Sinclair Broadcast Group, LLC | Consolidated VIEs
Assets		78		115
Liabilities		22		26
Sinclair Broadcast Group, LLC | Consolidated VIEs | Nonrecourse
Liabilities		$ 16		$ 18
Sinclair Broadcast Group, LLC | Class A Common Stock
Common stock, par value (in dollars per share)				$ 0.01
Common stock, shares authorized (in shares)				500,000,000
Common stock, shares issued (in shares)				45,847,879
Common stock, shares outstanding (in shares)				45,847,879
Sinclair Broadcast Group, LLC | Class B Common Stock
Common stock, par value (in dollars per share)				$ 0.01
Common stock, shares authorized (in shares)				140,000,000
Common stock, shares issued (in shares)				23,775,056
Common stock, shares outstanding (in shares)				23,775,056

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES:
Media revenues	$ 761	$ 831	$ 1,527	$ 2,106
Non-media revenues	7	6	14	19
Revenue	768	837	1,541	2,125
OPERATING EXPENSES:
Media programming and production expenses	413	403	811	1,161
Media selling, general and administrative expenses	190	195	381	415
Amortization of program contract costs	19	21	41	46
Non-media expenses	9	10	21	23
Depreciation of property and equipment	32	24	56	52
Corporate general and administrative expenses	62	38	120	85
Amortization of definite-lived intangible assets	41	43	82	136
Gain on deconsolidation of subsidiary	0	0	0	(3,357)
Loss (gain) on asset dispositions and other, net of impairment	5	(4)	11	(9)
Total operating expenses (gains)	771	730	1,523	(1,448)
Operating (loss) income	(3)	107	18	3,573
OTHER INCOME (EXPENSE):
Interest expense including amortization of debt discount and deferred financing costs	(76)	(54)	(150)	(169)
Gain on extinguishment of debt	11	3	11	3
(Loss) income from equity method investments	(1)	3	30	15
Other expense, net	(38)	(105)	(27)	(165)
Total other (expense) income	(104)	(153)	(136)	(316)
(Loss) income before income taxes	(107)	(46)	(118)	3,257
INCOME TAX BENEFIT (PROVISION)	20	40	224	(647)
Net income (loss)	(87)	(6)	106	2,610
Net (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Net income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Net income (loss) attributable to Sinclair	(89)	(11)	96	2,576
Sinclair Broadcast Group, LLC
REVENUES:
Media revenues	740	831	1,506	2,106
Non-media revenues	3	6	10	19
Revenue	743	837	1,516	2,125
OPERATING EXPENSES:
Media programming and production expenses	397	403	795	1,161
Media selling, general and administrative expenses	184	195	375	415
Amortization of program contract costs	19	21	41	46
Non-media expenses	7	10	19	23
Depreciation of property and equipment	31	24	55	52
Corporate general and administrative expenses	58	38	116	85
Amortization of definite-lived intangible assets	39	43	80	136
Gain on deconsolidation of subsidiary	0	0	0	(3,357)
Loss (gain) on asset dispositions and other, net of impairment	4	(4)	10	(9)
Total operating expenses (gains)	739	730	1,491	(1,448)
Operating (loss) income	4	107	25	3,573
OTHER INCOME (EXPENSE):
Interest expense including amortization of debt discount and deferred financing costs	(76)	(54)	(150)	(169)
Gain on extinguishment of debt	11	3	11	3
(Loss) income from equity method investments	0	3	31	15
Other expense, net	(64)	(105)	(53)	(165)
Total other (expense) income	(129)	(153)	(161)	(316)
(Loss) income before income taxes	(125)	(46)	(136)	3,257
INCOME TAX BENEFIT (PROVISION)	26	40	230	(647)
Net income (loss)	(99)	(6)	94	2,610
Net (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Net income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Net income (loss) attributable to Sinclair	$ (101)	$ (11)	$ 84	$ 2,576

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net (loss) income	$ (87)	$ (6)	$ 106	$ 2,610
Unrealized gain on interest rate swap, net of tax	9	0	6	0
Share of other comprehensive income of equity method investments	0	0	0	3
Comprehensive (loss) income	(78)	(6)	112	2,613
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Comprehensive income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Comprehensive (loss) income attributable to Sinclair	(80)	(11)	102	2,579
Sinclair Broadcast Group, LLC
Net (loss) income	(99)	(6)	94	2,610
Unrealized gain on interest rate swap, net of tax	9	0	6	0
Share of other comprehensive income of equity method investments	0	0	0	3
Comprehensive (loss) income	(90)	(6)	100	2,613
Comprehensive (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Comprehensive income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Comprehensive (loss) income attributable to Sinclair	$ (92)	$ (11)	$ 90	$ 2,579

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interests	Sinclair Broadcast Group, LLC	Sinclair Broadcast Group, LLC Class A Common Stock	Sinclair Broadcast Group, LLC Class B Common Stock	Sinclair Broadcast Group, LLC Common Stock Class A Common Stock	Sinclair Broadcast Group, LLC Common Stock Class B Common Stock	Sinclair Broadcast Group, LLC Additional Paid-In Capital	Sinclair Broadcast Group, LLC Retained Earnings (Accumulated Deficit)	Sinclair Broadcast Group, LLC Accumulated Other Comprehensive (Loss) Income	Sinclair Broadcast Group, LLC Noncontrolling Interests
Beginning balance at Dec. 31, 2021	$ 197									$ 197
Increase (Decrease) in Temporary Equity
Distributions to noncontrolling interests	(3)									(3)
Deconsolidation of subsidiary	(16)									(16)
Net income (loss)	9									9
Ending balance at Jun. 30, 2022	187									187
Beginning balance (in shares) at Dec. 31, 2021				49,314,303	23,775,056								49,314,303	23,775,056
Beginning balance at Dec. 31, 2021	(1,706)			$ 1	$ 0	$ 691	$ (2,460)	$ (2)	$ 64	(1,706)			$ 1	$ 0	$ 691	$ (2,460)	$ (2)	$ 64
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock	(37)						(37)			(37)						(37)
Repurchases of Old Sinclair Class A Common Stock (in shares)				(4,058,319)									(4,058,319)
Repurchases of Old Sinclair Class A Common Stock	(104)					(104)				(104)					(104)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans (in shares)				1,214,562									1,214,562
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	41					41				41					41
Distributions to noncontrolling interests	(5)								(5)	(5)								(5)
Other comprehensive income	3							3		3							3
Deconsolidation of subsidiary	(151)							(3)	(148)	(151)							(3)	(148)
Net income (loss)	2,601						2,576		25	2,601						2,576		25
Ending balance (in shares) at Jun. 30, 2022				46,470,546	23,775,056								46,470,546	23,775,056
Ending balance at Jun. 30, 2022	642			$ 1	$ 0	628	79	(2)	(64)	642			$ 1	$ 0	628	79	(2)	(64)
Beginning balance at Mar. 31, 2022	184									184
Increase (Decrease) in Temporary Equity
Distributions to noncontrolling interests	(2)									(2)
Net income (loss)	5									5
Ending balance at Jun. 30, 2022	187									187
Beginning balance (in shares) at Mar. 31, 2022				47,934,815	23,775,056								47,934,815	23,775,056
Beginning balance at Mar. 31, 2022	703			$ 1	$ 0	657	109	(2)	(62)	703			$ 1	$ 0	657	109	(2)	(62)
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock	(19)						(19)			(19)						(19)
Repurchases of Old Sinclair Class A Common Stock (in shares)				(1,585,834)									(1,585,834)
Repurchases of Old Sinclair Class A Common Stock	(36)					(36)				(36)					(36)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans (in shares)				121,565									121,565
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	7					7				7					7
Distributions to noncontrolling interests	(2)								(2)	(2)								(2)
Net income (loss)	(11)						(11)			(11)						(11)
Ending balance (in shares) at Jun. 30, 2022				46,470,546	23,775,056								46,470,546	23,775,056
Ending balance at Jun. 30, 2022	642			$ 1	$ 0	628	79	(2)	(64)	642			$ 1	$ 0	628	79	(2)	(64)
Beginning balance at Dec. 31, 2022	194									194
Increase (Decrease) in Temporary Equity
Repurchase of redeemable subsidiary preferred equity										(190)
Net income (loss)	(4)									(4)
Ending balance at Jun. 30, 2023	0									0
Beginning balance (in shares) at Dec. 31, 2022		45,847,879	23,775,056	45,847,879	23,775,056						45,847,879	23,775,056	45,847,879	23,775,056
Beginning balance at Dec. 31, 2022	681			$ 1	$ 0	624	122	1	(67)	681			$ 1	$ 0	624	122	1	(67)
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock	(34)						(34)			(18)						(18)
Repurchases of Old Sinclair Class A Common Stock (in shares)				(8,785,022)									(8,785,022)
Repurchases of Old Sinclair Class A Common Stock	(153)					(153)				(153)					(153)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans (in shares)				2,211,986									2,274,558
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	39					39				40					40
Old Sinclair Class A and Class B Common Stock converted to Member Equity (in shares)													(39,337,415)	(23,775,056)
Old Sinclair Class A and Class B Common Stock converted to SBG member's equity										(1)			$ (1)
Deemed dividend to parent										(1,118)					(511)	(606)		(1)
Distributions to noncontrolling interests	(8)								(8)	(7)								(7)
Other comprehensive income	6							6		6							6
Net income (loss)	110						96		14	98						84		14
Ending balance (in shares) at Jun. 30, 2023		39,274,843	23,775,056	39,274,843	23,775,056								0	0
Ending balance at Jun. 30, 2023	641			$ 1	$ 0	510	184	7	(61)	(472)			$ 0	$ 0	0	(418)	7	(61)
Beginning balance at Mar. 31, 2023	0									0
Increase (Decrease) in Temporary Equity
Net income (loss)	0									0
Ending balance at Jun. 30, 2023	0									0
Beginning balance (in shares) at Mar. 31, 2023				44,360,502	23,775,056								44,360,502	23,775,056
Beginning balance at Mar. 31, 2023	831			$ 1	$ 0	602	289	(2)	(59)	831			$ 1	$ 0	602	289	(2)	(59)
Increase (Decrease) in Stockholders' Equity
Dividends declared and paid on Old Sinclair Class A and Class B Common Stock	(16)						(16)
Repurchases of Old Sinclair Class A Common Stock (in shares)				(5,201,809)									(5,201,809)
Repurchases of Old Sinclair Class A Common Stock	(100)					(100)				(100)					(100)
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans (in shares)				116,150									178,722
Old Sinclair Class A Common Stock issued pursuant to employee benefit plans	8					8				9					9
Old Sinclair Class A and Class B Common Stock converted to Member Equity (in shares)													(39,337,415)	(23,775,056)
Old Sinclair Class A and Class B Common Stock converted to SBG member's equity										(1)			$ (1)
Deemed dividend to parent										(1,118)					(511)	(606)		(1)
Distributions to noncontrolling interests	(4)								(4)	(3)								(3)
Other comprehensive income	9							9		9							9
Net income (loss)	(87)						(89)		2	(99)						(101)		2
Ending balance (in shares) at Jun. 30, 2023		39,274,843	23,775,056	39,274,843	23,775,056								0	0
Ending balance at Jun. 30, 2023	$ 641			$ 1	$ 0	$ 510	$ 184	$ 7	$ (61)	$ (472)			$ 0	$ 0	$ 0	$ (418)	$ 7	$ (61)

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Class A Common Stock
Dividends declared on Old Sinclair (in dollars per share)	$ 0.25	$ 0.50	$ 0.50
Dividends paid on Old Sinclair (in dollars per share)	0.25	0.50	0.50
Class B Common Stock
Dividends declared on Old Sinclair (in dollars per share)	0.25	0.50	0.50
Dividends paid on Old Sinclair (in dollars per share)	0.25	0.50	0.50
Sinclair Broadcast Group, LLC | Class A Common Stock
Dividends declared on Old Sinclair (in dollars per share)	0.25	0.25	0.50
Dividends paid on Old Sinclair (in dollars per share)	0.25	0.25	0.50
Sinclair Broadcast Group, LLC | Class B Common Stock
Dividends declared on Old Sinclair (in dollars per share)	0.25	0.25	0.50
Dividends paid on Old Sinclair (in dollars per share)	$ 0.25	$ 0.25	$ 0.50

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ 106	$ 2,610
Adjustments to reconcile net income to net cash flows from operating activities:
Amortization of sports programming rights	0	326
Amortization of definite-lived intangible and other assets	82	136
Depreciation of property and equipment	56	52
Amortization of program contract costs	41	46
Stock-based compensation	36	38
Deferred tax (benefit) provision	(227)	654
Loss (gain) on asset dispositions and other, net of impairment	11	(9)
Gain on deconsolidation of subsidiary	0	(3,357)
Income from equity method investments	(30)	(15)
Loss from investments	53	159
Distributions from investments	29	31
Sports programming rights payments	0	(325)
Rebate payments to distributors	0	(15)
Gain on extinguishment of debt	(11)	(3)
Change in assets and liabilities, net of acquisitions, deconsolidation of subsidiary, and asset transfer to Ventures:
Decrease in accounts receivable	26	29
Increase in prepaid expenses and other current assets	(47)	(107)
Increase in accounts payable and accrued and other current liabilities	62	29
Net change in net income taxes payable/receivable	(1)	(21)
Decrease in program contracts payable	(46)	(52)
Other, net	2	1
Net cash flows from operating activities	142	207
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	(40)	(45)
Deconsolidation of subsidiary cash	0	(315)
Purchases of investments	(39)	(61)
Distributions from investments	204	81
Other, net	4	11
Net cash flows from (used in) investing activities	129	(329)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	0	728
Repayments of notes payable, commercial bank financing, and finance leases	(38)	(845)
Repurchase of outstanding Old Sinclair Class A Common Stock	(153)	(104)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(34)	(36)
Dividends paid on redeemable subsidiary preferred equity	0	(3)
Repurchase of redeemable subsidiary preferred equity	(190)	0
Distributions to noncontrolling interests, net	(8)	(5)
Other, net	(4)	(12)
Net cash flows used in financing activities	(427)	(277)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(156)	(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884	819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	728	420
Sinclair Broadcast Group, LLC
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	94	2,610
Adjustments to reconcile net income to net cash flows from operating activities:
Amortization of sports programming rights	0	326
Amortization of definite-lived intangible and other assets	80	136
Depreciation of property and equipment	55	52
Amortization of program contract costs	41	46
Stock-based compensation	34	38
Deferred tax (benefit) provision	(232)	654
Loss (gain) on asset dispositions and other, net of impairment	10	(9)
Gain on deconsolidation of subsidiary	0	(3,357)
Income from equity method investments	(31)	(15)
Loss from investments	78	159
Distributions from investments	28	31
Sports programming rights payments	0	(325)
Rebate payments to distributors	0	(15)
Gain on extinguishment of debt	(11)	(3)
Change in assets and liabilities, net of acquisitions, deconsolidation of subsidiary, and asset transfer to Ventures:
Decrease in accounts receivable	33	29
Increase in prepaid expenses and other current assets	(34)	(107)
Increase in accounts payable and accrued and other current liabilities	21	29
Net change in net income taxes payable/receivable	(1)	(21)
Decrease in program contracts payable	(46)	(52)
Other, net	3	1
Net cash flows from operating activities	122	207
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES:
Acquisition of property and equipment	(41)	(45)
Deconsolidation of subsidiary cash	0	(315)
Purchases of investments	(37)	(61)
Distributions from investments	204	81
Other, net	4	11
Net cash flows from (used in) investing activities	130	(329)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Proceeds from notes payable and commercial bank financing	0	728
Repayments of notes payable, commercial bank financing, and finance leases	(37)	(845)
Repurchase of outstanding Old Sinclair Class A Common Stock	(153)	(104)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(18)	(36)
Dividends paid on redeemable subsidiary preferred equity	0	(3)
Repurchase of redeemable subsidiary preferred equity	(190)	0
Distributions to member	(360)	0
Distributions to noncontrolling interests, net	(7)	(5)
Other, net	(3)	(12)
Net cash flows used in financing activities	(768)	(277)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(516)	(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884	819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$ 368	$ 420

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

Sinclair, Inc. ("Sinclair") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks and professional sports. Additionally, we own digital media companies that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage, and/or operate technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

For the quarter ended June 30, 2023, we had two reportable segments: local media and tennis. Prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), we had one additional reportable segment, local sports. The local media segment consists primarily of our 185 broadcast television stations in 86 markets, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements ("LMA"), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements ("JSA") and shared services agreements ("SSA")). These stations broadcast 639 channels as of June 30, 2023. For the purpose of this report, these 185 stations and 639 channels are referred to as "our" stations and channels. The tennis segment consists of Tennis Channel, a cable network which includes coverage of many of tennis' top tournaments and original professional sports and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. The local sports segment consisted primarily of our Bally Sports network brands ("Bally RSNs"), the Marquee Sports Network ("Marquee") joint venture, and a minority equity interest in the Yankee Entertainment and Sports Network, LLC ("YES Network") through February 28, 2022. On March 1, 2022, the Bally RSNs, Marquee, and YES Network were deconsolidated from our financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC below. Through February 28, 2022, we refer to the Bally RSNs and Marquee as "the RSNs". The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas.

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner's proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs.

Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees.

Company Reorganization

On April 3, 2023, the company formerly known as Sinclair Broadcast Group, Inc., a Maryland corporation ("Old Sinclair"), entered into an Agreement of Share Exchange and Plan of Reorganization (the "Share Exchange Agreement") with Sinclair, and Sinclair Holdings, LLC, a Maryland limited liability company ("Sinclair Holdings"). The purpose of the transactions contemplated by the Share Exchange Agreement was to effect a holding company reorganization in which Sinclair would become the publicly-traded parent company of Old Sinclair.

Effective at 12:00 am Eastern U.S. time on June 1, 2023 (the "Share Exchange Effective Time"), pursuant to the Share Exchange Agreement and Articles of Share Exchange filed with the Maryland State Department of Assessments and Taxation, the share exchange between Sinclair and Old Sinclair was completed (the "Share Exchange"). In the Share Exchange, (i) each share or fraction of a share of Old Sinclair's Class A common stock, par value $0.01 per share ("Old Sinclair Class A Common Shares"), outstanding immediately prior to the Share Exchange Effective Time was exchanged on a one-for-one basis for an equivalent share of Sinclair's Class A common stock, par value $0.01 per share ("Sinclair Class A Common Shares"), and (ii) each share or fraction of a share of Old Sinclair's Class B common stock, par value $0.01 per share ("Old Sinclair Class B Common Shares"), outstanding immediately prior to the Share Exchange Effective Time was exchanged on a one-for-one basis for an equivalent share of Sinclair’s Class B common stock, par value $0.01 per share ("Sinclair Class B Common Shares").

Immediately following the Share Exchange Effective Time, Old Sinclair converted from a Maryland corporation to a Maryland limited liability company named Sinclair Broadcast Group, LLC ("SBG"). On the day following the Share Exchange Effective Time (June 2, 2023), Sinclair Holdings became the intermediate holding company between Sinclair and SBG, and SBG transferred certain of its assets (the "Transferred Assets") to Ventures, a new indirect wholly-owned subsidiary of Sinclair. We refer to the Share Exchange and the related steps described above collectively as the "Reorganization." The Transferred Assets included technical and software services companies, intellectual property for the advancement of broadcast technology, and other media and non-media related businesses and assets including real estate, venture capital, private equity, and direct investments, as well as Compulse, a marketing technology and managed services company, and Tennis Channel and related assets. As a result of the Reorganization, the local media segment assets are owned and operated by SBG and the assets of the tennis segment and the Transferred Assets are owned and operated by Ventures.

At the Share Exchange Effective Time, Sinclair's articles of incorporation and bylaws were amended and restated to be the same in all material respects as the existing articles of incorporation and bylaws of Old Sinclair immediately prior to the Share Exchange. As a result, the Sinclair Class A Common Shares confer upon the holders thereof the same rights with respect to Sinclair that the holders of the Old Sinclair Class A Common Shares had with respect to Old Sinclair, and the Sinclair Class B Common Shares confer upon the holders thereof the same rights with respect to Sinclair that the holders of the Old Sinclair Class B Common Shares had with respect to Old Sinclair. Sinclair's Board of Directors, including its committees, and senior management team immediately after the Share Exchange were the same as Old Sinclair's immediately before the Share Exchange.

The Reorganization is considered transactions between entities under common control and as SBG and Ventures are both subsidiaries of Sinclair, there was no impact on the consolidated financial statements of Sinclair.

Deconsolidation of Diamond Sports Intermediate Holdings LLC

On March 1, 2022, Old Sinclair's subsidiary Diamond Sports Intermediate Holdings, LLC, and certain of its subsidiaries (collectively "DSIH"), completed a series of transactions (the "Transaction"). As part of the Transaction, the governance structure of DSIH was modified including changes to the composition of its Board of Managers, resulting in the Company's loss of voting control. As a result, DSIH, whose operations represented the entirety of our local sports segment, was deconsolidated from our consolidated financial statements effective as of March 1, 2022 (the "Deconsolidation"). The consolidated statement of operations for the six months ended June 30, 2022 therefore includes two months of activity related to DSIH prior to the Deconsolidation. Subsequent to February 28, 2022, the assets and liabilities of DSIH are no longer included within our consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with DSIH are referring to the periods prior to the Deconsolidation.

Upon Deconsolidation, we recognized a gain before income taxes of approximately $3,357 million, which is recorded within gain on deconsolidation of subsidiary in our consolidated statements of operations for the six months ended June 30, 2022. Subsequent to the Deconsolidation, we accounted for our equity ownership interest in DSIH under the equity method of accounting. See Note 2. Other Assets for more information.

Interim Financial Statements

The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements.

Broadcast Television Programming

We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to three years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR").

We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows. See Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion.

Non-cash Investing and Financing Activities

Leased assets obtained in exchange for new operating lease liabilities were $4 million and $7 million for the six months ended June 30, 2023 and 2022, respectively. Leased assets obtained in exchange for new finance lease liabilities were $1 million for the six months ended June 30, 2022. Non-cash investing activities included property and equipment purchases of $5 million for the six months ended June 30, 2023.

Revenue Recognition

The following table presents our revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	372	$	46	$	—	$	—	$	418
Advertising revenue	293		14		6		(4)		309
Other media, non-media, and intercompany revenues	34		—		8		(1)		41
Total revenues	$	699	$	60	$	14	$	(5)	$	768
For the six months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	753	$	91	$	—	$	—	$	844
Advertising revenue	589		23		12		(6)		618
Other media, non-media, and intercompany revenues	62		1		19		(3)		79
Total revenues	$	1,404	$	115	$	31	$	(9)	$	1,541
For the three months ended June 30, 2022	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	—	$	430
Advertising revenue	343		11		13		(1)		366
Other media, non-media, and intercompany revenues	32		2		14		(7)		41
Total revenues	$	760	$	58	$	27	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Tennis		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	92	$	433	$	—	$	—	$	1,303
Advertising revenue	656		19		44		27		(9)		737
Other media, non-media, and intercompany revenues	80		3		5		30		(33)		85
Total revenues	$	1,514	$	114	$	482	$	57	$	(42)	$	2,125

Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations. Deferred revenue was $191 million and $200 million as of June 30, 2023 and December 31, 2022, respectively, of which $134 million and $144 million, respectively, was reflected in other long-term liabilities in our consolidated balance sheets. Deferred revenue recognized during the six months ended June 30, 2023 and 2022, included in the deferred revenue balance as of December 31, 2022 and 2021, was $33 million and $42 million, respectively.

For the three months ended June 30, 2023, two customers accounted for 12% and 10%, respectively, of our total revenues. For the six months ended June 30, 2023, two customers accounted for 11% and 10%, respectively, of our total revenues. For the three months ended June 30, 2022, two customers accounted for 11% and 10%, respectively, of our total revenues. For the six months ended June 30, 2022, three customers accounted for 15%, 14%, and 12%, respectively, of our total revenues. As of June 30, 2023, three customers accounted for 11%, 10%, and 10%, respectively, of our accounts receivable, net. As of December 31, 2022, one customer accounted for 13% of our accounts receivable, net. For purposes of this disclosure, a single customer may include multiple entities under common control.

Income Taxes

Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

Our effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. Our effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the six months ended June 30, 2022 approximated our statutory rate.

We believe that our liability for unrecognized tax benefits could be reduced by up to $1 million in the next twelve months, as a result of the expected statute of limitations expirations, and the resolution of examination issues and settlements with tax authorities.

Share Repurchase Program

On August 4, 2020, the Board of Directors authorized an additional $500 million share repurchase authorization in addition to the previous repurchase authorization of $1 billion. There is no expiration date and currently, management has no plans to terminate this program. For the six months ended June 30, 2023, we repurchased approximately 8.8 million shares of Class A Common Stock for $151 million. As of June 30, 2023, the total remaining purchase authorization was $547 million. All shares were repurchased under an SEC Rule 10b5-1 plan.

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

Subsequent Events

In August 2023, our Board of Directors declared a quarterly dividend of $0.25 per share, payable on September 15, 2023 to holders of record at the close of business on September 1, 2023.

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OTHER ASSETS

6 Months Ended

Jun. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

OTHER ASSETS

OTHER ASSETS:

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments	$	130	$	113
Other investments	397		442
Note receivable	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	51		44
Total other assets	$	752	$	964

Equity Method Investments

We have a portfolio of investments, including our investment in DSIH (subsequent to the Deconsolidation), and also a number of entities that are primarily focused on the development of real estate and other media and non-media businesses. No investments were individually significant for the periods presented.

Diamond Sports Intermediate Holdings LLC. Subsequent to the Deconsolidation, we began accounting for our equity interest in DSIH under the equity method of accounting. As of March 1, 2022, we reflected the investment in DSIH at fair value, which was determined to be nominal. For the three and six months ended June 30, 2023 and 2022, we recorded no equity method loss related to the investment because the carrying value of the investment is zero and we are not obligated to fund losses incurred by DSIH. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

YES Network Investment. Prior to the Deconsolidation, we accounted for our investment in the YES Network as an equity method investment. We recorded income of $10 million for the six months ended June 30, 2022 related to this investment, which is reflected in (loss) income from equity method investments in our consolidated statements of operations. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Other Investments

We measure our investments, excluding equity method investments, at fair value or, in situations where fair value is not readily determinable, we have the option to value investments at cost plus observable changes in value, less impairment. Additionally, certain investments are measured at net asset value ("NAV").

As of June 30, 2023 and December 31, 2022, we held $186 million and $234 million, respectively, in investments measured at fair value. As of June 30, 2023 and December 31, 2022, we held $197 million and $190 million, respectively, in investments measured at NAV. We recognized fair value adjustment losses of $47 million and $48 million for the three and six months ended June 30, 2023, respectively, and fair value adjustment losses of $105 million and $161 million for the three and six months ended June 30, 2022, respectively, associated with these investments, which are reflected in other expense, net in our consolidated statements of operations. As of June 30, 2023 and December 31, 2022, our unfunded commitments related to our investments valued using the NAV practical expedient totaled $80 million and $88 million, respectively.

Investments accounted for utilizing the measurement alternative were $14 million as of June 30, 2023 and $18 million, net of $7 million of cumulative impairments, as of December 31, 2022. We recorded a $6 million impairment related to one investment for the three and six months ended June 30, 2023, which is reflected in other expense, net in our consolidated statements of operations. There were no adjustments to the carrying amount of investments accounted for utilizing the measurement alternative for either of the three and six months ended June 30, 2022.

Note Receivable

We are party to an Accounts Receivable Securitization Facility ("A/R Facility"), held by Diamond Sports Finance SPV, LLC ("DSPV"), an indirect wholly-owned subsidiary of DSIH. Subsequent to the Deconsolidation, transactions related to the A/R Facility are no longer eliminated as intercompany transactions and, therefore, are reflected in our consolidated financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. On May 10, 2023, DSPV paid the Company approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. As of June 30, 2023, the note receivable due to the Company had no outstanding balance and, as of December 31, 2022, the note receivable due to the Company was $193 million, which is reflected in other assets in our consolidated balance sheets. The maximum aggregate commitment under the A/R Facility is $50 million and the A/R Facility has a maturity date of September 23, 2024.

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NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING

NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement and Notes

The bank credit agreement of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG (the "Bank Credit Agreement"), includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of June 30, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of June 30, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2023.

In June 2023, we purchased $3 million, $15 million, and $13 million aggregate principal amount of the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"), respectively, in open market transactions for consideration of $3 million, $8 million, and $8 million, respectively. The STG Notes acquired in June 2023 were canceled immediately following their acquisition. We recognized a gain on extinguishment of the STG Notes of $11 million for the three and six months ended June 30, 2023.

In July 2023, we purchased $0.5 million aggregate principal amount of the 5.125% Senior Notes due 2027 in open market transactions for consideration of $0.4 million and repaid $1 million aggregate principal amount of the Term Loan B-2, due September 30, 2026, for consideration of $0.8 million. The STG Notes acquired in July 2023 were canceled immediately following their acquisition.

Finance leases to affiliates

The current portion of notes payable, finance leases, and commercial bank financing in our consolidated balance sheets includes finance leases to affiliates of $2 million and $3 million as of June 30, 2023 and December 31, 2022, respectively. Notes payable, finance leases, and commercial bank financing, less current portion, in our consolidated balance sheets includes finances leases to affiliates of $6 million as of both June 30, 2023 and December 31, 2022. See Note 9. Related Person Transactions.

Debt of variable interest entities and guarantees of third-party obligations

STG jointly, severally, unconditionally, and irrevocably guaranteed $2 million of debt of certain third parties as of both June 30, 2023 and December 31, 2022, all of which related to consolidated VIEs and is included in our consolidated balance sheets as of both June 30, 2023 and December 31, 2022. We provide a guarantee of certain obligations of a regional sports network subject to a maximum annual amount of $112 million with annual escalations of 4% for the next six years. We have determined that, as of June 30, 2023, it is not probable that we would have to perform under any of these guarantees.

Interest Rate Swap

We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion. As of June 30, 2023, the fair value of the interest rate swap was an asset of $8 million, which is recorded in other assets in our consolidated balance sheets.

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REDEEMABLE NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2023

Temporary Equity Disclosure [Abstract]

REDEEMABLE NONCONTROLLING INTERESTS

REDEEMABLE NONCONTROLLING INTERESTS:

We account for redeemable noncontrolling interests in accordance with ASC 480, Distinguishing Liabilities from Equity, and classify them as mezzanine equity in our consolidated balance sheets because their possible redemption is outside of the control of the Company. Our redeemable non-controlling interests consist of the following:

Redeemable Subsidiary Preferred Equity. On August 23, 2019, Diamond Sports Holdings LLC ("DSH"), an indirect parent of Diamond Sports Group, LLC ("DSG") and indirect wholly-owned subsidiary of the Company, issued preferred equity (the "Redeemable Subsidiary Preferred Equity").

Dividends accrued during the six months ended June 30, 2023 were $3 million and during the three and six months ended June 30, 2022 were $3 million and $6 million, respectively, and are reflected in net income attributable to the redeemable noncontrolling interests in our consolidated statements of operations. Dividends accrued during all of the six months ended June 30, 2023 and the three and six months ended June 30, 2022 were paid-in-kind and added to the liquidation preference, which was partially offset by certain required cash tax distributions.

The balance, net of issuance costs, and the liquidation preference of the Redeemable Subsidiary Preferred Equity were $194 million and $198 million, respectively, as of December 31, 2022. On February 10, 2023, we purchased the remaining 175,000 units of the Redeemable Subsidiary Preferred Equity for an aggregate purchase price of $190 million, representing 95% of the sum of the remaining unreturned capital contribution of $175 million, and accrued and unpaid dividends up to, but not including, the date of purchase.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:

Litigation

We are a party to lawsuits, claims, and regulatory matters from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. Except as noted below, we do not believe the outcome of these matters, individually or in the aggregate, will have a material effect on our financial statements. 

FCC Litigation Matters

On May 22, 2020, the Federal Communications Commission ("FCC") released an Order and Consent Decree pursuant to which the Company agreed to pay $48 million to resolve the matters covered by a Notice of Apparent Liability for Forfeiture ("NAL") issued in December 2017 proposing a $13 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries, the FCC's investigation of the allegations raised in the Hearing Designation Order issued in connection with the Company's proposed acquisition of Tribune, and a retransmission related matter. The Company submitted the $48 million payment on August 19, 2020. As part of the consent decree, the Company also agreed to implement a 4-year compliance plan. Two petitions were filed on June 8, 2020 seeking reconsideration of the Order and Consent Decree. The Company filed an opposition to the petitions on June 18, 2020, and the petitions remain pending.

On September 1, 2020, one of the individuals who filed a petition for reconsideration of the Order and Consent Decree filed a petition to deny the license renewal application of WBFF(TV), Baltimore, MD, and the license renewal applications of two other Baltimore, MD stations with which the Company has a JSA or LMA, Deerfield Media station WUTB(TV) and Cunningham Broadcasting Corporation ("Cunningham") station WNUV(TV). The Company filed an opposition to the petition on October 1, 2020, and the petition remains pending.

On September 2, 2020, the FCC adopted a Memorandum Opinion and Order and NAL against the licensees of several stations with whom the Company has LMAs, JSAs, and/or SSAs in response to a complaint regarding those stations' retransmission consent negotiations. The NAL proposed a $0.5 million penalty for each station, totaling $9 million. The licensees filed a response to the NAL on October 15, 2020, asking the Commission to dismiss the proceeding or, alternatively, to reduce the proposed forfeiture to $25,000 per station. On July 28, 2021, the FCC issued a forfeiture order in which the $0.5 million penalty was upheld for all but one station. A Petition for Reconsideration of the forfeiture order was filed on August 7, 2021. On March 14, 2022, the FCC released a Memorandum Opinion and Order and Order on Reconsideration, reaffirming the forfeiture order and dismissing (and in the alternative, denying) the Petition for Reconsideration. The Company is not a party to this forfeiture order; however, our consolidated financial statements include an accrual of additional expenses of $8 million for the above legal matters during the year ended December 31, 2021, as we consolidate these stations as VIEs.

On September 21, 2022, the FCC released an NAL against the licensees of a number of stations, including 83 Company stations and several stations with whom the Company has LMAs, JSAs, and/or SSAs, for violation of the FCC's limitations on commercial matter in children's television programming related to KidsClick network programming distributed by the Company in 2018. The NAL proposed a fine of $2.7 million against the Company, and fines ranging from $20,000 to $26,000 per station for the other licensees, including the LMA, JSA, and/or SSA stations, for a total of $3.4 million. As of June 30, 2023, we have accrued $3.4 million. On October 21, 2022, the Company filed a written response seeking reduction of the proposed fine amount, and the matter remains pending.

Other Litigation Matters

On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice ("DOJ"). This consent decree resolves the DOJ's investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The U.S. District Court for the District of Columbia entered the consent decree on May 22, 2019. The consent decree is not an admission of any wrongdoing by the Company and does not subject the Company to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the DOJ has required in previous consent decrees in other industries. The consent decree also requires the Company's stations not to exchange pacing and certain other information with other stations in their local markets, which the Company's management had already instructed them not to do.

The Company is aware of twenty-two putative class action lawsuits that were filed against the Company following published reports of the DOJ investigation into the exchange of pacing data within the industry. On October 3, 2018, these lawsuits were consolidated in the Northern District of Illinois. The consolidated action alleges that the Company and thirteen other broadcasters conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States and engaged in unlawful information sharing, in violation of the Sherman Antitrust Act. The consolidated action seeks damages, attorneys' fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The Court denied the Defendants' motion to dismiss on November 6, 2020. Since then, the Plaintiffs have served the Defendants with written discovery requests and have begun taking depositions of the employees of the defendants and certain third parties. The Court has set a pretrial schedule which currently requires discovery to be completed by December 15, 2023, or 90 days after the Special Master certifies completion of the privilege review, whichever date is later, and requires briefing on class certification to be completed within 195 days after that date. The Company believes the lawsuits are without merit and intends to vigorously defend itself against all such claims.

On July 19, 2023, as part of the ongoing bankruptcy proceedings of DSG, an independently managed and unconsolidated subsidiary of Sinclair, DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC, filed a complaint, under seal, in the United States Bankruptcy Court for the Southern District of Texas naming certain subsidiaries of Sinclair, including SBG and STG, David D. Smith, Sinclair's Executive Chairman, Christopher S. Ripley, Sinclair's President and Chief Executive Officer, Lucy A. Rutishauser, Sinclair's Executive Vice President & Chief Financial Officer, and Scott Shapiro, Sinclair's Executive Vice President, Corporate Development and Strategy, as defendants.

In the complaint, plaintiffs challenge a series of transactions involving SBG and certain of its subsidiaries, on the one hand, and DSG and its subsidiaries, on the other hand, since SBG acquired the former Fox Sports regional sports networks from The Walt Disney Company in August 2019. The complaint alleges, among other things, that the management services agreement entered into by STG and DSG was not fair to DSG and was designed to benefit STG and SBG; that the Bally's Corporation ("Bally's") transaction in November 2020 through which Bally's acquired naming rights to certain regional sports networks was not fair to DSG and was designed to benefit STG and SBG; and that certain distributions made by DSG that were used to pay down preferred equity of DSH, were inappropriate and were conducted at a time when DSG was insolvent. The complaint alleges that SBG and its subsidiaries (other than DSG and its subsidiaries) received payments or indirect benefits of approximately $1.5 billion as a result of the alleged misconduct. The complaint asserts a variety of claims, including certain fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties. The plaintiffs are seeking, among other relief, avoidance of fraudulent transfers and unlawful distributions, and unspecified monetary damages to be determined. The defendants believe the allegations in this lawsuit are without merit and intend to vigorously defend against plaintiffs' claims.

While at this early stage of the proceedings it is not possible to determine the probability of any outcome or probability or amount of any loss, in the event of an unfavorable outcome, Sinclair's subsidiaries may be required to pay monetary damages, which could materially and adversely affect Sinclair's financial and results of operations.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE:

The following table reconciles income (numerator) and shares (denominator) used in our computations of basic and diluted earnings per share for the periods presented (in millions, except share amounts which are reflected in thousands):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Income (Numerator)
Net (loss) income	$	(87)	$	(6)	$	106	$	2,610
Net (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Net income attributable to the noncontrolling interests	(2)		—		(14)		(25)
Numerator for basic and diluted earnings per common share available to common shareholders	$	(89)	$	(11)	$	96	$	2,576
Shares (Denominator)
Basic weighted-average common shares outstanding	64,012		70,897		66,862		71,527
Dilutive effect of stock-settled appreciation rights and outstanding stock options	—		—		85		6
Diluted weighted-average common and common equivalent shares outstanding	64,012		70,897		66,947		71,533

The following table shows the weighted-average stock-settled appreciation rights and outstanding stock options (in thousands) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2023	2022	2023	2022
Weighted-average stock-settled appreciation rights and outstanding stock options excluded	3,693	3,645	3,645	3,095

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SEGMENT DATA

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA:

During the period ended June 30, 2023 we modified our segment reporting to align with the new organizational structure of the Company discussed within Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies. The segment information within the comparative periods have been revised to reflect this new presentation. During the period ended June 30, 2023, we measured segment performance based on operating income (loss). For the quarter ended June 30, 2023, we had two reportable segments, local media and tennis. Prior to the Deconsolidation, we had one additional reportable segment, local sports. Our local media segment includes our television stations, original networks and content and provides these through free over-the-air programming to television viewing audiences for stations in markets located throughout the continental United States, as well as distributes the content of these stations to MVPDs for distribution to their customers in exchange for contractual fees. See Revenue Recognition under Note 1. Nature of Operations and Summary of Significant Accounting Policies for further detail. Our tennis segment provides viewers coverage of many of tennis' top tournaments and original professional sport and tennis lifestyle shows. Our local sports segment provided viewers with live professional sports content and included the Bally RSNs, Marquee, and our investment in the YES Network, prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. All of our businesses are located within the United States. As a result of the Reorganization, the local media segment assets are owned and operated by SBG, the assets of the tennis segment are owned and operated by Ventures, and the other Transferred Assets, which are included in other and corporate, are owned and operated by Ventures.

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations		Consolidated
Assets	$	4,315	$	309	$	1,577	$	—	$	6,201

For the three months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	699	(b)	$	60	$	14	$	(5)	(a)	$	768
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			5		1		—			73
Amortization of program contract costs	19			—		—		—			19
Corporate general and administrative expenses	46			—		16		—			62
(Gain) loss on asset dispositions and other, net of impairment	(2)			—		7		—			5
Operating income (loss)	22			3		(28)		—			(3)
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		—			76
Loss from equity method investments	—			—		(1)		—			(1)

For the six months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	115	$	31	$	(9)	(a)	$	1,541
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		3		(1)			138
Amortization of program contract costs	41			—		—		—			41
Corporate general and administrative expenses	78			—		42		—			120
(Gain) loss on asset dispositions and other, net of impairment	(3)			—		14		—			11
Operating income (loss)	63			21		(66)		—			18
Interest expense including amortization of debt discount and deferred financing costs	150			—		—		—			150
Income from equity method investments	—			—		30		—			30

For the three months ended June 30, 2022	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	58	$	27	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			5		2		(1)			67
Amortization of program contract costs	21			—		—		—			21
Corporate general and administrative expenses	34			—		4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—		—			(4)
Operating income (loss)	116			—		(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			—		3		(3)			54
Income from equity method investments	—			—		3		—			3

For the six months ended June 30, 2022	Local Media			Tennis		Local Sports (c)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	114	$	482	$	57	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			10		54		4		(2)			188
Amortization of sports programming rights	—			—		326		—		—			326
Amortization of program contract costs	46			—		—		—		—			46
Corporate general and administrative expenses	77			—		1		7		—			85
Gain on deconsolidation of subsidiary	—			—		—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		—		(1)		—			(9)
Operating income (loss)	211			24		(4)		3,342		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			—		72		6		(8)			169
Income from equity method investments	—			—		10		5		—			15

(a)Includes $2 million and $3 million for the three and six months ended June 30, 2023, respectively, and $3 million and $10 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by other to local media, which is eliminated in consolidation; $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation; and $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to local media from tennis, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES: 

Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational, and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational, and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.

A subsidiary of DSIH is a party to a joint venture associated with Marquee. Marquee is party to a long term telecast rights agreement which provides the rights to air certain live game telecasts and other content, which we guarantee. In connection with a prior acquisition, we became party to a joint venture associated with one other regional sports network. DSIH participated significantly in the economics and had the power to direct the activities which significantly impacted the economic performance of these regional sports networks, including sales and certain operational services. As of March 1, 2022, as a result of the Deconsolidation, we no longer consolidate these regional sports networks. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

The amounts above represent the combined assets and liabilities of the VIEs described above, for which we are the primary beneficiary. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $130 million as of both June 30, 2023 and December 31, 2022, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of June 30, 2023, all of the liabilities are non-recourse to us except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar.

Other VIEs 

We have several investments in entities which are considered VIEs. However, we do not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.

The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary were $201 million and $187 million as of June 30, 2023 and December 31, 2022, respectively, and are included in other assets in our consolidated balance sheets. See Note 2. Other Assets for more information related to our equity investments. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to equity method investments and other investments are recorded in (loss) income from equity method investments and other expense, net, respectively, in our consolidated statements of operations. We recorded gains of $3 million and $38 million for the three and six months ended June 30, 2023, respectively, and gains of $5 million and $25 million for the three and six months ended June 30, 2022, respectively, related to these investments.

In conjunction with the Transaction, the composition of the DSIH board of managers was modified resulting in our loss of voting control over DSIH. We hold substantially all of the equity of DSIH and provide certain management and general and administrative services to DSIH. However, it was determined that we are not the primary beneficiary because we lack the ability to control the activities that most significantly drive the economics of the business. The carrying amount of our investment in DSIH is zero and there is no obligation for us to provide additional financial support. We are also party to the A/R Facility held by an indirect wholly-owned subsidiary of DSIH which has a maturity date of September 23, 2024. On May 10, 2023, DSPV paid the Company approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. There was no outstanding balance as of June 30, 2023 and an outstanding balance of approximately $193 million as of December 31, 2022. As of June 30, 2023, our aggregate commitment under the A/R Facility is $50 million. See Note Receivable within Note 2. Other Assets.

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RELATED PERSON TRANSACTIONS

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

RELATED PERSON TRANSACTIONS

RELATED PERSON TRANSACTIONS:

Transactions with our controlling shareholders

David, Frederick, J. Duncan, and Robert Smith (collectively, the "controlling shareholders") are brothers and hold substantially all of our Class B Common Stock and some of our Class A Common Stock. We engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases. Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders. Lease payments made to these entities were $1 million and $3 million for the three and six months ended June 30, 2023, respectively, and $1 million and $3 million for the three and six months ended June 30, 2022, respectively. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of $0.1 million and $0.2 million for the three and six months ended June 30, 2023, respectively. We incurred expenses of less than $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively.

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations, including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah; and KTXD-TV in Dallas, Texas (collectively, the "Cunningham Stations"). Certain of our stations provide services to the Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 8. Variable Interest Entities, for further discussion of the scope of services provided under these types of arrangements.

All of the non-voting stock of the Cunningham Stations is owned by trusts for the benefit of the children of our controlling shareholders. We consolidate certain subsidiaries of Cunningham with which we have variable interests through various arrangements related to the Cunningham Stations.

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2028 and there is one additional five-year renewal term remaining with final expiration on July 1, 2033. We also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant us the right to acquire, and grant Cunningham the right to require us to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station's annual net broadcast revenue or (ii) $6 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The cumulative prepayments made under these purchase agreements were $63 million and $61 million as of June 30, 2023 and December 31, 2022, respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both June 30, 2023 and December 31, 2022, was approximately $54 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and have a purchase option to acquire for $0.2 million. We paid Cunningham, under these agreements, $3 million and $6 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively.

The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WDBB-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between April 2025 and November 2029 and certain stations have renewal provisions for successive eight-year periods.

As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported in our consolidated statements of operations. Our consolidated revenues include $33 million and $69 million for the three and six months ended June 30, 2023, respectively, and $37 million and $71 million for the three and six months ended June 30, 2022, respectively, related to the Cunningham Stations.

We have an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which Cunningham has an LMA that expires in June 2025. Under the agreement, Cunningham paid us an initial fee of $1 million and pays us $0.3 million annually for master control services plus the cost to maintain and repair the equipment. In addition, we have an agreement with Cunningham to provide a news share service with the Johnstown, PA station for an annual fee of $0.6 million, which increases by 3% on each anniversary and expires in November 2024.

We have multi-cast agreements with Cunningham Stations in the Eureka/Chico-Redding, California; Tri-Cities, Tennessee; Anderson, South Carolina; Baltimore, Maryland; Portland, Maine; Charleston, West Virginia; Dallas, Texas; and Greenville, North Carolina markets. In exchange for carriage of these networks in their markets, we paid $0.5 million and $1 million for the three and six months ended June 30, 2023, respectively, and $1 million for both the three and six months ended June 30, 2022 under these agreements.

MileOne Autogroup Inc.

We sell advertising time to certain operating subsidiaries of MileOne Autogroup, Inc. ("MileOne"), including automobile dealerships, body shops, and an automobile leasing company. David D. Smith, our Executive Chairman, has a controlling interest in, and is a member of the Board of Directors of, MileOne. We received payments for advertising totaling less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022.

Leased property by real estate ventures

Certain of our real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent payments received under these leases were $0.3 million and $0.7 million for the three and six months ended June 30, 2023, respectively, and $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.

Diamond Sports Intermediate Holdings LLC

Subsequent to February 28, 2022, we accounted for our equity interest in DSIH as an equity method investment. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Management Services Agreement. In 2019, we entered into a management services agreement with DSG, a wholly-owned subsidiary of DSIH, in which we provide DSG with affiliate sales and marketing services and general and administrative services. The contractual annual amount due from DSG for these services during the fiscal year ended December 31, 2023 is $78 million, which is subject to increases on an annual basis. Additionally, the agreement contains an incentive fee payable to us calculated based on certain terms contained within new or renewed distribution agreements with Distributors. As a condition to the Transaction, DSG will defer the cash payment of a portion of its management fee payable to the Company over the next four years. Pursuant to this agreement, the local media segment recorded $13 million and $22 million of revenue for the three and six months ended June 30, 2023, respectively, and $10 million and $38 million of revenue for the three and six months ended June 30, 2022, respectively, of which $24 million for the six months ended June 30, 2022 was eliminated in consolidation prior to the Deconsolidation. We will not recognize the portion of deferred management fees as revenue until such fees are determined to be collectible.

Distributions. DSIH made distributions to DSH for tax payments on the dividends of the Redeemable Subsidiary Preferred Equity of $2 million and $3 million during the three and six months ended June 30, 2022, respectively.

Note receivable. We received payments totaling $206 million and $209 million during the three and six months ended June 30, 2023, respectively, and $10 million and $60 million during the three and six months ended June 30, 2022, respectively, from DSPV related to the note receivable associated with the A/R Facility, including $199 million from DSPV on May 10, 2023, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses.

We recorded revenue of $6 million and $11 million during the three and six months ended June 30, 2023, respectively, and $4 million and $5 million during the three and six months ended June 30, 2022, respectively, related to certain other transactions between DSIH and the Company.

Other equity method investees

YES Network. In August 2019, YES Network, which was accounted for as an equity method investment prior to the Deconsolidation, entered into a management services agreement with the Company, in which we provide certain services for an initial term that expires on August 29, 2025. The agreement will automatically renew for two 2-year renewal terms, with a final expiration on August 29, 2029. Pursuant to the terms of the agreement, the YES Network paid us a management services fee of $1 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

DSIH has a minority interest in certain mobile production businesses. Prior to the Deconsolidation, we accounted for these as equity method investments. DSIH made payments to these businesses for production services totaling $5 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

We have a minority interest in a sports marketing company, which we account for as an equity method investment. We made payments to this business for marketing services totaling $2 million for the six months ended June 30, 2022.

Sports Programming Rights

Affiliates of six professional teams had non-controlling equity interests in certain of DSIH's RSNs. DSIH paid $61 million for the six months ended June 30, 2022 under sports programming rights agreements covering the broadcast of regular season games associated with these professional teams. Prior to the Deconsolidation, these payments were recorded in our consolidated statements of operations and cash flows. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Employees

Jason Smith, an employee of the Company, is the son of Frederick Smith, who is a Vice President of the Company and a member of the Company's Board of Directors. Jason Smith received total compensation of $0.2 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively, consisting of salary and bonus. Ethan White, an employee of the Company, is the son-in-law of J. Duncan Smith, who is a Vice President of the Company and Secretary of the Company's Board of Directors. Ethan White received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus, and was granted 1,252 shares of restricted stock, vesting over two years, during the six months ended June 30, 2023. Amberly Thompson, an employee of the Company, is the daughter of Donald Thompson, who is an Executive Vice President and Chief Human Resources Officer of the Company. Amberly Thompson received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. Edward Kim, an employee of the company, is the brother-in-law of Christopher Ripley, who is the President and Chief Executive Officer of the Company. Edward Kim received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary, and was granted 516 and 302 shares of restricted stock during the six months ended June 30, 2023 and 2022, respectively, vesting over two years.

Frederick Smith is the brother of David Smith, Executive Chairman of the Company and Chairman of the Company's Board of Directors; Robert Smith, a member of the Company's Board of Directors; and J. Duncan Smith. Frederick Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. J. Duncan Smith is the brother of David Smith, Frederick Smith, and Robert Smith. J. Duncan Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities	N/A		$	5	N/A		$	6
Money market funds	N/A		523		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a)	N/A		123		N/A		153
Interest rate swap (b)	N/A		8		N/A		—
STG (c):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (c)	7		7		8		8
Debt of non-media subsidiaries (c)	16		16		16		16
Level 3:
Investments in equity securities (d)	N/A		58		N/A		75

N/A - Not applicable

(a)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(d)On November 18, 2020, we entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 we recorded a fair value adjustment loss of $17 million and during the three and six months ended June 30, 2022 we recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(17)		Measurement adjustments	(17)
Fair value at June 30, 2023	$	58	Fair value at June 30, 2023	$	58

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

Sinclair, Inc. ("Sinclair") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks and professional sports. Additionally, we own digital media companies that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage, and/or operate technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

For the quarter ended June 30, 2023, we had two reportable segments: local media and tennis. Prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), we had one additional reportable segment, local sports. The local media segment consists primarily of our 185 broadcast television stations in 86 markets, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements ("LMA"), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements ("JSA") and shared services agreements ("SSA")). These stations broadcast 639 channels as of June 30, 2023. For the purpose of this report, these 185 stations and 639 channels are referred to as "our" stations and channels. The tennis segment consists of Tennis Channel, a cable network which includes coverage of many of tennis' top tournaments and original professional sports and tennis lifestyle shows; Tennis Channel International streaming service; Tennis Channel Plus streaming service; T2 FAST, a 24-hours a day free ad-supported streaming television channel; and Tennis.com. The local sports segment consisted primarily of our Bally Sports network brands ("Bally RSNs"), the Marquee Sports Network ("Marquee") joint venture, and a minority equity interest in the Yankee Entertainment and Sports Network, LLC ("YES Network") through February 28, 2022. On March 1, 2022, the Bally RSNs, Marquee, and YES Network were deconsolidated from our financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC below. Through February 28, 2022, we refer to the Bally RSNs and Marquee as "the RSNs". The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas.

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner's proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs.

Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees.

Company Reorganization

On April 3, 2023, the company formerly known as Sinclair Broadcast Group, Inc., a Maryland corporation ("Old Sinclair"), entered into an Agreement of Share Exchange and Plan of Reorganization (the "Share Exchange Agreement") with Sinclair, and Sinclair Holdings, LLC, a Maryland limited liability company ("Sinclair Holdings"). The purpose of the transactions contemplated by the Share Exchange Agreement was to effect a holding company reorganization in which Sinclair would become the publicly-traded parent company of Old Sinclair.

Effective at 12:00 am Eastern U.S. time on June 1, 2023 (the "Share Exchange Effective Time"), pursuant to the Share Exchange Agreement and Articles of Share Exchange filed with the Maryland State Department of Assessments and Taxation, the share exchange between Sinclair and Old Sinclair was completed (the "Share Exchange"). In the Share Exchange, (i) each share or fraction of a share of Old Sinclair's Class A common stock, par value $0.01 per share ("Old Sinclair Class A Common Shares"), outstanding immediately prior to the Share Exchange Effective Time was exchanged on a one-for-one basis for an equivalent share of Sinclair's Class A common stock, par value $0.01 per share ("Sinclair Class A Common Shares"), and (ii) each share or fraction of a share of Old Sinclair's Class B common stock, par value $0.01 per share ("Old Sinclair Class B Common Shares"), outstanding immediately prior to the Share Exchange Effective Time was exchanged on a one-for-one basis for an equivalent share of Sinclair’s Class B common stock, par value $0.01 per share ("Sinclair Class B Common Shares").

Immediately following the Share Exchange Effective Time, Old Sinclair converted from a Maryland corporation to a Maryland limited liability company named Sinclair Broadcast Group, LLC ("SBG"). On the day following the Share Exchange Effective Time (June 2, 2023), Sinclair Holdings became the intermediate holding company between Sinclair and SBG, and SBG transferred certain of its assets (the "Transferred Assets") to Ventures, a new indirect wholly-owned subsidiary of Sinclair. We refer to the Share Exchange and the related steps described above collectively as the "Reorganization." The Transferred Assets included technical and software services companies, intellectual property for the advancement of broadcast technology, and other media and non-media related businesses and assets including real estate, venture capital, private equity, and direct investments, as well as Compulse, a marketing technology and managed services company, and Tennis Channel and related assets. As a result of the Reorganization, the local media segment assets are owned and operated by SBG and the assets of the tennis segment and the Transferred Assets are owned and operated by Ventures.

At the Share Exchange Effective Time, Sinclair's articles of incorporation and bylaws were amended and restated to be the same in all material respects as the existing articles of incorporation and bylaws of Old Sinclair immediately prior to the Share Exchange. As a result, the Sinclair Class A Common Shares confer upon the holders thereof the same rights with respect to Sinclair that the holders of the Old Sinclair Class A Common Shares had with respect to Old Sinclair, and the Sinclair Class B Common Shares confer upon the holders thereof the same rights with respect to Sinclair that the holders of the Old Sinclair Class B Common Shares had with respect to Old Sinclair. Sinclair's Board of Directors, including its committees, and senior management team immediately after the Share Exchange were the same as Old Sinclair's immediately before the Share Exchange.

The Reorganization is considered transactions between entities under common control and as SBG and Ventures are both subsidiaries of Sinclair, there was no impact on the consolidated financial statements of Sinclair.

Deconsolidation of Diamond Sports Intermediate Holdings LLC

On March 1, 2022, Old Sinclair's subsidiary Diamond Sports Intermediate Holdings, LLC, and certain of its subsidiaries (collectively "DSIH"), completed a series of transactions (the "Transaction"). As part of the Transaction, the governance structure of DSIH was modified including changes to the composition of its Board of Managers, resulting in the Company's loss of voting control. As a result, DSIH, whose operations represented the entirety of our local sports segment, was deconsolidated from our consolidated financial statements effective as of March 1, 2022 (the "Deconsolidation"). The consolidated statement of operations for the six months ended June 30, 2022 therefore includes two months of activity related to DSIH prior to the Deconsolidation. Subsequent to February 28, 2022, the assets and liabilities of DSIH are no longer included within our consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with DSIH are referring to the periods prior to the Deconsolidation.

Upon Deconsolidation, we recognized a gain before income taxes of approximately $3,357 million, which is recorded within gain on deconsolidation of subsidiary in our consolidated statements of operations for the six months ended June 30, 2022. Subsequent to the Deconsolidation, we accounted for our equity ownership interest in DSIH under the equity method of accounting. See Note 2. Other Assets for more information.

Interim Financial Statements

The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements.

Broadcast Television Programming

We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to three years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR").

We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows. See Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion.

Non-cash Investing and Financing Activities

Leased assets obtained in exchange for new operating lease liabilities were $4 million and $7 million for the six months ended June 30, 2023 and 2022, respectively. Leased assets obtained in exchange for new finance lease liabilities were $1 million for the six months ended June 30, 2022. Non-cash investing activities included property and equipment purchases of $5 million for the six months ended June 30, 2023.

Revenue Recognition

The following table presents our revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	372	$	46	$	—	$	—	$	418
Advertising revenue	293		14		6		(4)		309
Other media, non-media, and intercompany revenues	34		—		8		(1)		41
Total revenues	$	699	$	60	$	14	$	(5)	$	768
For the six months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	753	$	91	$	—	$	—	$	844
Advertising revenue	589		23		12		(6)		618
Other media, non-media, and intercompany revenues	62		1		19		(3)		79
Total revenues	$	1,404	$	115	$	31	$	(9)	$	1,541
For the three months ended June 30, 2022	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	—	$	430
Advertising revenue	343		11		13		(1)		366
Other media, non-media, and intercompany revenues	32		2		14		(7)		41
Total revenues	$	760	$	58	$	27	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Tennis		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	92	$	433	$	—	$	—	$	1,303
Advertising revenue	656		19		44		27		(9)		737
Other media, non-media, and intercompany revenues	80		3		5		30		(33)		85
Total revenues	$	1,514	$	114	$	482	$	57	$	(42)	$	2,125

Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations. Deferred revenue was $191 million and $200 million as of June 30, 2023 and December 31, 2022, respectively, of which $134 million and $144 million, respectively, was reflected in other long-term liabilities in our consolidated balance sheets. Deferred revenue recognized during the six months ended June 30, 2023 and 2022, included in the deferred revenue balance as of December 31, 2022 and 2021, was $33 million and $42 million, respectively.

For the three months ended June 30, 2023, two customers accounted for 12% and 10%, respectively, of our total revenues. For the six months ended June 30, 2023, two customers accounted for 11% and 10%, respectively, of our total revenues. For the three months ended June 30, 2022, two customers accounted for 11% and 10%, respectively, of our total revenues. For the six months ended June 30, 2022, three customers accounted for 15%, 14%, and 12%, respectively, of our total revenues. As of June 30, 2023, three customers accounted for 11%, 10%, and 10%, respectively, of our accounts receivable, net. As of December 31, 2022, one customer accounted for 13% of our accounts receivable, net. For purposes of this disclosure, a single customer may include multiple entities under common control.

Income Taxes

Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

Our effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. Our effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the six months ended June 30, 2022 approximated our statutory rate.

We believe that our liability for unrecognized tax benefits could be reduced by up to $1 million in the next twelve months, as a result of the expected statute of limitations expirations, and the resolution of examination issues and settlements with tax authorities.

Share Repurchase Program

On August 4, 2020, the Board of Directors authorized an additional $500 million share repurchase authorization in addition to the previous repurchase authorization of $1 billion. There is no expiration date and currently, management has no plans to terminate this program. For the six months ended June 30, 2023, we repurchased approximately 8.8 million shares of Class A Common Stock for $151 million. As of June 30, 2023, the total remaining purchase authorization was $547 million. All shares were repurchased under an SEC Rule 10b5-1 plan.

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

Subsequent Events

In August 2023, our Board of Directors declared a quarterly dividend of $0.25 per share, payable on September 15, 2023 to holders of record at the close of business on September 1, 2023.

Sinclair Broadcast Group, LLC

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Nature of Operations

Sinclair Broadcast Group, LLC ("SBG"), a Maryland limited liability company and a wholly owned subsidiary of Sinclair, Inc. ("Sinclair"), is a diversified media company with national reach and a strong focus on providing high-quality content on SBG's local television stations, digital properties, and regional sports networks (prior to the Deconsolidation, as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC). The content, distributed through SBG's broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by SBG and SBG owned networks, and, prior to the Deconsolidation, college and professional sports. Additionally, prior to the Reorganization (as defined below in Company Reorganization), SBG had interests in, owned, managed, and/or operated Tennis Channel, digital media companies, technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

For the quarter ended June 30, 2023, SBG had one reportable segment: local media. Prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), SBG had one additional reportable segment: local sports. The local media segment consists primarily of SBG's 185 broadcast television stations in 86 markets, which SBG owns, provides programming and operating services pursuant to agreements commonly referred to as local marketing agreements ("LMA"), or provides sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements ("JSA") and shared services agreements ("SSA")). These stations broadcast 639 channels as of June 30, 2023. For the purpose of this report, these 185 stations and 639 channels are referred to as "SBG" stations and channels. The local sports segment consisted primarily of the Bally Sports network brands ("Bally RSNs"), the Marquee Sports Network ("Marquee") joint venture, and a minority equity interest in the Yankee Entertainment and Sports Network, LLC ("YES Network") through February 28, 2022. On March 1, 2022, the Bally RSNs, Marquee, and YES Network were deconsolidated from SBG's financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC below. Through February 28, 2022, the Bally RSNs and Marquee are referred to as "the RSNs". The RSNs and YES Network own the exclusive rights to air, among other sporting events, the games of professional sports teams in designated local viewing areas.

Principles of Consolidation

The consolidated financial statements include SBG's accounts and those of SBG's wholly-owned and majority-owned subsidiaries, and VIEs for which SBG is the primary beneficiary. Noncontrolling interests represent a minority owner’s proportionate share of the equity in certain of SBG's consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of SBG's control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

SBG consolidates VIEs when SBG is the primary beneficiary. SBG is the primary beneficiary of a VIE when SBG has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 7. Variable Interest Entities for more information on SBG's VIEs.

Investments in entities over which SBG has significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents SBG's proportionate share of net income generated by equity method investees.

Company Reorganization

On April 3, 2023, the company formerly known as Sinclair Broadcast Group, Inc., a Maryland corporation ("Old Sinclair"), entered into an Agreement of Share Exchange and Plan of Reorganization (the "Share Exchange Agreement") with Sinclair and Sinclair Holdings, LLC, a Maryland limited liability company ("Sinclair Holdings"). The purpose of the transactions contemplated by the Share Exchange Agreement was to effect a holding company reorganization in which Sinclair would become the publicly-traded parent company of Old Sinclair.

Effective at 12:00 am Eastern U.S. time on June 1, 2023 (the "Share Exchange Effective Time"), pursuant to the Share Exchange Agreement and Articles of Share Exchange filed with the Maryland State Department of Assessments and Taxation, the share exchange between Sinclair and Old Sinclair was completed (the "Share Exchange"). Immediately following the Share Exchange Effective Time, Old Sinclair converted from a Maryland corporation to a Maryland limited liability company named Sinclair Broadcast Group, LLC. On the day following the Share Exchange Effective Time, Sinclair Holdings became the intermediate holding company between Sinclair and SBG, and SBG transferred certain of its assets (the "Transferred Assets") to Sinclair Ventures, LLC, a new indirect wholly-owned subsidiary of Sinclair ("Ventures"). We refer to the Share Exchange and the related steps described above collectively as the "Reorganization." The Transferred Assets included technical and software services companies, intellectual property for the advancement of broadcast technology, and other media and non-media related businesses and assets including real estate, venture capital, private equity, and direct investments, as well as Compulse, a marketing technology and managed services company, and Tennis Channel and related assets.

As a result of the Reorganization, SBG's consolidated statement of operations for the three months ended June 30, 2023 includes two months of activity related to the Transferred Assets and for the six months ended June 30, 2023 includes five months of activity related to the Transferred Assets prior to the Reorganization. Subsequent to June 1, 2023, the assets and liabilities of the Transferred Assets are no longer included within SBG's consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with the Transferred Assets are referring to the periods prior to the Reorganization.

The Reorganization is considered transactions between entities under common control and therefore the Transferred Assets were transferred from SBG to Ventures at a net book value of $1,118 million, which is recognized in SBG's consolidated statements of equity and redeemable noncontrolling interests as a dividend to SBG's parent.

Deconsolidation of Diamond Sports Intermediate Holdings LLC

On March 1, 2022, Old Sinclair's subsidiary Diamond Sports Intermediate Holdings, LLC, and certain of its subsidiaries (collectively "DSIH"), completed a series of transactions (the "Transaction"). As part of the Transaction, the governance structure of DSIH was modified including changes to the composition of its Board of Managers, resulting in SBG's loss of voting control. As a result, DSIH, whose operations represented the entirety of SBG's local sports segment, was deconsolidated from SBG's consolidated financial statements effective as of March 1, 2022 (the "Deconsolidation"). SBG's consolidated statement of operations for the six months ended June 30, 2022 therefore includes two months of activity related to DSIH prior to the Deconsolidation. Subsequent to February 28, 2022, the assets and liabilities of DSIH are no longer included within SBG's consolidated balance sheets. Any discussions related to results, operations, and accounting policies associated with DSIH are referring to the periods prior to the Deconsolidation.

Upon Deconsolidation, SBG recognized a gain before income taxes of approximately $3,357 million, which is recorded within gain on deconsolidation of subsidiary in SBG's consolidated statements of operations for the six months ended June 30, 2022. Subsequent to the Deconsolidation, SBG's equity ownership interest in DSIH is accounted for under the equity method of accounting. See Note 2. Other Assets for more information.

Interim Financial Statements

SBG's consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the SEC, SBG's consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in Old Sinclair's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. SBG's consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. SBG adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on SBG's consolidated financial statements.

Broadcast Television Programming

SBG has agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to seven years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. SBG assesses the program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, SBG amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on the Secured Overnight Financing Rate ("SOFR").

SBG has determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in SBG's consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in SBG's consolidated statements of cash flows. See Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion.

Non-cash Investing and Financing Activities

Leased assets obtained in exchange for new operating lease liabilities were $3 million and $7 million for the six months ended June 30, 2023 and 2022, respectively. Leased assets obtained in exchange for new finance lease liabilities were $1 million for the six months ended June 30, 2022. Non-cash investing activities included property and equipment purchases of $5 million for the six months ended June 30, 2023.

As part of the Reorganization, SBG made a noncash distribution of $758 million to Ventures for the six months ended June 30, 2023, which represents the book value of the net assets distributed. See Company Reorganization above.

Revenue Recognition

The following table presents SBG's revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Other		Eliminations		Total
Distribution revenue	$	372	$	31	$	—	$	403
Advertising revenue	293		13		(3)		303
Other media, non-media, and intercompany revenues	34		3		—		37
Total revenues	$	699	$	47	$	(3)	$	743
For the six months ended June 30, 2023	Local Media		Other		Eliminations		Total
Distribution revenue	$	753	$	76	$	—	$	829
Advertising revenue	589		29		(5)		613
Other media, non-media, and intercompany revenues	62		14		(2)		74
Total revenues	$	1,404	$	119	$	(7)	$	1,516
For the three months ended June 30, 2022	Local Media		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	430
Advertising revenue	343		25		(2)		366
Other media, non-media, and intercompany revenues	32		15		(6)		41
Total revenues	$	760	$	85	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	433	$	92	$	—	$	1,303
Advertising revenue	656		44		47		(10)		737
Other media, non-media, and intercompany revenues	80		5		32		(32)		85
Total revenues	$	1,514	$	482	$	171	$	(42)	$	2,125

Distribution Revenue. SBG has agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). SBG generates distribution revenue through fees received from these Distributors for the right to distribute SBG's stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to SBG's customers (as usage occurs) which corresponds with the satisfaction of SBG's performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. SBG's customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. SBG generates advertising revenue primarily from the sale of advertising spots/impressions within broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, SBG does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. SBG records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. SBG classifies deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in SBG's consolidated balance sheets based on the timing of when SBG expects to satisfy performance obligations. Deferred revenue was $181 million and $200 million as of June 30, 2023 and December 31, 2022, respectively, of which $134 million and $144 million, respectively, was reflected in other long-term liabilities in SBG's consolidated balance sheets. Deferred revenue recognized during the six months ended June 30, 2023 and 2022, included in the deferred revenue balance as of December 31, 2022 and 2021, was $32 million and $42 million, respectively.

For the three months ended June 30, 2023, two customers accounted for 12% and 10%, respectively, of SBG's total revenues. For the six months ended June 30, 2023, two customers accounted for 11% and 10%, respectively, of SBG's total revenues. For the three months ended June 30, 2022, two customers accounted for 11% and 10%, respectively, of SBG's total revenues. For the six months ended June 30, 2022, three customers accounted for 15%, 14%, and 12%, respectively, of SBG's total revenues. As of June 30, 2023, three customers accounted for 11%, 11%, and 10%, respectively, of SBG's accounts receivable, net. As of December 31, 2022, one customer accounted for 13% of SBG's accounts receivable, net. For purposes of this disclosure, a single customer may include multiple entities under common control.

Income Taxes

SBG's (provision) benefit for taxes and deferred tax balances have been calculated on a separate return basis as if SBG filed its own tax returns, although its operations are included in the Sinclair consolidated tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if SBG were a separate taxpayer and a standalone enterprise.

SBG's income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. SBG provides a valuation allowance for deferred tax assets if it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating SBG's ability to realize net deferred tax assets, SBG considers all available evidence, both positive and negative, including past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, SBG must make certain judgments that are based on the plans and estimates used to manage SBG's underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of SBG's available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

SBG's effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. SBG's effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). SBG's effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). SBG's effective income tax rate for the six months ended June 30, 2022 approximated SBG's statutory rate.

SBG believes that its liability for unrecognized tax benefits could be reduced by up to $1 million, in the next twelve months, as a result of the expected statute of limitations expirations, and the resolution of examination issues and settlements with tax authorities.

Share Repurchase Program

For the six months ended June 30, 2023, SBG repurchased approximately 8.8 million shares of Old Sinclair Class A Common Stock for $151 million. All shares were repurchased under an SEC Rule 10b5-1 plan, which is no longer applicable subsequent to the Reorganization.

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

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OTHER ASSETS

6 Months Ended

Jun. 30, 2023

Schedule of Equity Method Investments [Line Items]

OTHER ASSETS

OTHER ASSETS:

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments	$	130	$	113
Other investments	397		442
Note receivable	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	51		44
Total other assets	$	752	$	964

Equity Method Investments

We have a portfolio of investments, including our investment in DSIH (subsequent to the Deconsolidation), and also a number of entities that are primarily focused on the development of real estate and other media and non-media businesses. No investments were individually significant for the periods presented.

Diamond Sports Intermediate Holdings LLC. Subsequent to the Deconsolidation, we began accounting for our equity interest in DSIH under the equity method of accounting. As of March 1, 2022, we reflected the investment in DSIH at fair value, which was determined to be nominal. For the three and six months ended June 30, 2023 and 2022, we recorded no equity method loss related to the investment because the carrying value of the investment is zero and we are not obligated to fund losses incurred by DSIH. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

YES Network Investment. Prior to the Deconsolidation, we accounted for our investment in the YES Network as an equity method investment. We recorded income of $10 million for the six months ended June 30, 2022 related to this investment, which is reflected in (loss) income from equity method investments in our consolidated statements of operations. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Other Investments

We measure our investments, excluding equity method investments, at fair value or, in situations where fair value is not readily determinable, we have the option to value investments at cost plus observable changes in value, less impairment. Additionally, certain investments are measured at net asset value ("NAV").

As of June 30, 2023 and December 31, 2022, we held $186 million and $234 million, respectively, in investments measured at fair value. As of June 30, 2023 and December 31, 2022, we held $197 million and $190 million, respectively, in investments measured at NAV. We recognized fair value adjustment losses of $47 million and $48 million for the three and six months ended June 30, 2023, respectively, and fair value adjustment losses of $105 million and $161 million for the three and six months ended June 30, 2022, respectively, associated with these investments, which are reflected in other expense, net in our consolidated statements of operations. As of June 30, 2023 and December 31, 2022, our unfunded commitments related to our investments valued using the NAV practical expedient totaled $80 million and $88 million, respectively.

Investments accounted for utilizing the measurement alternative were $14 million as of June 30, 2023 and $18 million, net of $7 million of cumulative impairments, as of December 31, 2022. We recorded a $6 million impairment related to one investment for the three and six months ended June 30, 2023, which is reflected in other expense, net in our consolidated statements of operations. There were no adjustments to the carrying amount of investments accounted for utilizing the measurement alternative for either of the three and six months ended June 30, 2022.

Note Receivable

We are party to an Accounts Receivable Securitization Facility ("A/R Facility"), held by Diamond Sports Finance SPV, LLC ("DSPV"), an indirect wholly-owned subsidiary of DSIH. Subsequent to the Deconsolidation, transactions related to the A/R Facility are no longer eliminated as intercompany transactions and, therefore, are reflected in our consolidated financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. On May 10, 2023, DSPV paid the Company approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. As of June 30, 2023, the note receivable due to the Company had no outstanding balance and, as of December 31, 2022, the note receivable due to the Company was $193 million, which is reflected in other assets in our consolidated balance sheets. The maximum aggregate commitment under the A/R Facility is $50 million and the A/R Facility has a maturity date of September 23, 2024.

Sinclair Broadcast Group, LLC

Schedule of Equity Method Investments [Line Items]

OTHER ASSETS

OTHER ASSETS:

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments (a)	$	1	$	113
Other investments (a)	26		442
Note receivable (a)	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	54		44
Total other assets	$	255	$	964

(a)The note receivable and certain of the equity method and other investments were transferred to Ventures as part of the Reorganization.

Equity Method Investments

Prior to the Reorganization, SBG had a portfolio of investments, including a number of entities that are primarily focused on the development of real estate and other media and non-media businesses. Subsequent to the Deconsolidation, SBG has an investment in DSIH that is accounted for under the equity method of accounting. No investments were individually significant for the periods presented.

Diamond Sports Intermediate Holdings LLC. Subsequent to the Deconsolidation, SBG's equity interest in DSIH is accounted for under the equity method of accounting. As of March 1, 2022, SBG reflected the investment in DSIH at fair value, which was determined to be nominal. For the three and six months ended June 30, 2023 and 2022, SBG recorded no equity method loss related to the investment because the carrying value of the investment is zero and SBG is not obligated to fund losses incurred by DSIH. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

YES Network Investment. Prior to the Deconsolidation, SBG's investment in the YES Network was accounted for as an equity method investment. SBG recorded income of $10 million for the six months ended June 30, 2022 related to this investment, which is reflected in (loss) income from equity method investments in SBG's consolidated statements of operations. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Other Investments

SBG's investments, excluding equity method investments, are accounted for at fair value or, in situations where fair value is not readily determinable, SBG has the option to value investments at cost plus observable changes in value, less impairment. Additionally, certain investments are measured at net asset value ("NAV").

All of the investments measured at fair value and certain of the investments measured at NAV were transferred to Ventures as part of the Reorganization. As of December 31, 2022, SBG held $234 million in investments measured at fair value. As of June 30, 2023 and December 31, 2022, SBG held $25 million and $190 million, respectively, in investments measured at NAV. SBG recognized fair value adjustment losses of $72 million and $73 million for the three and six months ended June 30, 2023,

respectively, and fair value adjustment losses of $105 million and $161 million for the three and six months ended June 30, 2022, respectively, associated with these investments, which are reflected in other expense, net in SBG's consolidated statements of operations. As of June 30, 2023 and December 31, 2022, SBG's unfunded commitments related to the investments valued using the NAV practical expedient totaled $40 million and $88 million, respectively. The investments remaining at SBG will be transferred to Ventures upon receipt of third party consents.

Certain of the investments accounted for utilizing the measurement alternative were transferred to Ventures as part of the Reorganization. Investments accounted for utilizing the measurement alternative were $1 million as of June 30, 2023 and $18 million, net of $7 million of cumulative impairments, as of December 31, 2022. SBG recorded a $6 million impairment related to one investment for the three and six months ended June 30, 2023, which is reflected in other expense, net in SBG's consolidated statements of operations. There were no adjustments to the carrying amount of investments accounted for utilizing the measurement alternative for either of the three and six months ended June 30, 2022. The investments remaining at SBG will be transferred to Ventures upon receipt of third party consents.

Note Receivable

SBG was party to an Accounts Receivable Securitization Facility ("A/R Facility"), held by Diamond Sports Finance SPV, LLC ("DSPV"), an indirect wholly-owned subsidiary of DSIH. Subsequent to the Deconsolidation, transactions related to the A/R Facility are no longer intercompany transactions and, therefore, are reflected in SBG's consolidated financial statements. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies. As of December 31, 2022, the note receivable due to SBG was approximately $193 million, which is reflected in other assets in SBG's consolidated balance sheets. On May 10, 2023, DSPV paid SBG approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. The loans under the A/R Facility and cash received were transferred to Ventures as part of the Reorganization.

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NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING

6 Months Ended

Jun. 30, 2023

Debt Instrument [Line Items]

NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING

NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement and Notes

The bank credit agreement of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG (the "Bank Credit Agreement"), includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of June 30, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of June 30, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2023.

In June 2023, we purchased $3 million, $15 million, and $13 million aggregate principal amount of the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"), respectively, in open market transactions for consideration of $3 million, $8 million, and $8 million, respectively. The STG Notes acquired in June 2023 were canceled immediately following their acquisition. We recognized a gain on extinguishment of the STG Notes of $11 million for the three and six months ended June 30, 2023.

In July 2023, we purchased $0.5 million aggregate principal amount of the 5.125% Senior Notes due 2027 in open market transactions for consideration of $0.4 million and repaid $1 million aggregate principal amount of the Term Loan B-2, due September 30, 2026, for consideration of $0.8 million. The STG Notes acquired in July 2023 were canceled immediately following their acquisition.

Finance leases to affiliates

The current portion of notes payable, finance leases, and commercial bank financing in our consolidated balance sheets includes finance leases to affiliates of $2 million and $3 million as of June 30, 2023 and December 31, 2022, respectively. Notes payable, finance leases, and commercial bank financing, less current portion, in our consolidated balance sheets includes finances leases to affiliates of $6 million as of both June 30, 2023 and December 31, 2022. See Note 9. Related Person Transactions.

Debt of variable interest entities and guarantees of third-party obligations

STG jointly, severally, unconditionally, and irrevocably guaranteed $2 million of debt of certain third parties as of both June 30, 2023 and December 31, 2022, all of which related to consolidated VIEs and is included in our consolidated balance sheets as of both June 30, 2023 and December 31, 2022. We provide a guarantee of certain obligations of a regional sports network subject to a maximum annual amount of $112 million with annual escalations of 4% for the next six years. We have determined that, as of June 30, 2023, it is not probable that we would have to perform under any of these guarantees.

Interest Rate Swap

We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion. As of June 30, 2023, the fair value of the interest rate swap was an asset of $8 million, which is recorded in other assets in our consolidated balance sheets.

Sinclair Broadcast Group, LLC

Debt Instrument [Line Items]

NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING

NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING:

Bank Credit Agreement and Notes

The bank credit agreement of Sinclair Television Group, Inc. ("STG"), a wholly-owned subsidiary of SBG (the "Bank Credit Agreement"), includes a financial maintenance covenant, the first lien leverage ratio (as defined in the Bank Credit Agreement), which requires such ratio not to exceed 4.5x, measured as of the end of each fiscal quarter. As of June 30, 2023, the STG first lien leverage ratio was below 4.5x. Under the Bank Credit Agreement, a financial maintenance covenant is only applicable if 35% or more of the capacity (as a percentage of total commitments) under the revolving credit facility, measured as of the last day of each fiscal quarter, is utilized under the revolving credit facility as of such date. Since there was no utilization under the revolving credit facility as of June 30, 2023, STG was not subject to the financial maintenance covenant under the Bank Credit Agreement. The Bank Credit Agreement contains other restrictions and covenants with which STG was in compliance as of June 30, 2023.

In June 2023, STG purchased $3 million, $15 million, and $13 million aggregate principal amount of the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"), respectively, in open market transactions for consideration of $3 million, $8 million, and $8 million, respectively. The STG Notes acquired in June 2023 were canceled immediately following their acquisition. SBG recognized a gain on extinguishment of the STG Notes of $11 million for the three and six months ended June 30, 2023.

In July 2023, STG purchased $0.5 million aggregate principal amount of the 5.125% Senior Notes due 2027 in open market transactions for consideration of $0.4 million and repaid $1 million aggregate principal amount of the Term Loan B-2, due September 30, 2026, for consideration of $0.8 million. The STG Notes acquired in July 2023 were canceled immediately following their acquisition.

Finance leases to affiliates

The current portion of notes payable, finance leases, and commercial bank financing in SBG's consolidated balance sheets includes finance leases to affiliates of $2 million and $3 million as of June 30, 2023 and December 31, 2022, respectively. Notes payable, finance leases, and commercial bank financing, less current portion, in SBG's consolidated balance sheets includes finances leases to affiliates of $6 million as of both June 30, 2023 and December 31, 2022. See Note 9. Related Person Transactions.

Debt of variable interest entities and guarantees of third-party obligations

STG jointly, severally, unconditionally, and irrevocably guaranteed $2 million of debt of certain third parties as of both June 30, 2023 and December 31, 2022, all of which relate to consolidated VIEs and is included in SBG's consolidated balance sheets as of both June 30, 2023 and December 31, 2022. SBG provides a guarantee of certain obligations of a regional sports network subject to a maximum annual amount of $112 million with annual escalations of 4% for the next seven years. SBG has determined that, as of June 30, 2023, it is not probable that SBG would have to perform under any of these guarantees.

Interest Rate Swap

SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on SOFR. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion. As of June 30, 2023, the fair value of the interest rate swap was an asset of $8 million, which is recorded in other assets in SBG's consolidated balance sheets.

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REDEEMABLE NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2023

Noncontrolling Interest [Line Items]

REDEEMABLE NONCONTROLLING INTERESTS

REDEEMABLE NONCONTROLLING INTERESTS:

We account for redeemable noncontrolling interests in accordance with ASC 480, Distinguishing Liabilities from Equity, and classify them as mezzanine equity in our consolidated balance sheets because their possible redemption is outside of the control of the Company. Our redeemable non-controlling interests consist of the following:

Redeemable Subsidiary Preferred Equity. On August 23, 2019, Diamond Sports Holdings LLC ("DSH"), an indirect parent of Diamond Sports Group, LLC ("DSG") and indirect wholly-owned subsidiary of the Company, issued preferred equity (the "Redeemable Subsidiary Preferred Equity").

Dividends accrued during the six months ended June 30, 2023 were $3 million and during the three and six months ended June 30, 2022 were $3 million and $6 million, respectively, and are reflected in net income attributable to the redeemable noncontrolling interests in our consolidated statements of operations. Dividends accrued during all of the six months ended June 30, 2023 and the three and six months ended June 30, 2022 were paid-in-kind and added to the liquidation preference, which was partially offset by certain required cash tax distributions.

The balance, net of issuance costs, and the liquidation preference of the Redeemable Subsidiary Preferred Equity were $194 million and $198 million, respectively, as of December 31, 2022. On February 10, 2023, we purchased the remaining 175,000 units of the Redeemable Subsidiary Preferred Equity for an aggregate purchase price of $190 million, representing 95% of the sum of the remaining unreturned capital contribution of $175 million, and accrued and unpaid dividends up to, but not including, the date of purchase.

Sinclair Broadcast Group, LLC

Noncontrolling Interest [Line Items]

REDEEMABLE NONCONTROLLING INTERESTS

REDEEMABLE NONCONTROLLING INTERESTS:

SBG accounts for redeemable noncontrolling interests in accordance with ASC 480, Distinguishing Liabilities from Equity, and classifies them as mezzanine equity in SBG's consolidated balance sheets because their possible redemption is outside of the control of SBG. SBG's redeemable non-controlling interests consist of the following:

Redeemable Subsidiary Preferred Equity . On August 23, 2019, Diamond Sports Holdings LLC ("DSH"), an indirect parent of Diamond Sports Group, LLC ("DSG") and indirect wholly-owned subsidiary of SBG, issued preferred equity (the "Redeemable Subsidiary Preferred Equity").

Distributions accrued during the six months ended June 30, 2023 were $3 million and during the three and six months ended June 30, 2022 were $3 million and $6 million, respectively, and are reflected in net income attributable to the redeemable noncontrolling interests in SBG's consolidated statements of operations. Distributions accrued during all of the six months ended June 30, 2023 and the three and six months ended June 30, 2022 were paid-in-kind and added to the liquidation preference, which was partially offset by certain required cash tax distributions.

The balance, net of issuance costs, and the liquidation preference of the Redeemable Subsidiary Preferred Equity were $194 million and $198 million, respectively, as of December 31, 2022. On February 10, 2023, SBG purchased the remaining 175,000 units of the Redeemable Subsidiary Preferred Equity for an aggregate purchase price of $190 million, representing 95% of the sum of the remaining unreturned capital contribution of $175 million, and accrued and unpaid distributions up to, but not including, the date of purchase.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

Loss Contingencies [Line Items]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:

Litigation

We are a party to lawsuits, claims, and regulatory matters from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. Except as noted below, we do not believe the outcome of these matters, individually or in the aggregate, will have a material effect on our financial statements. 

FCC Litigation Matters

On May 22, 2020, the Federal Communications Commission ("FCC") released an Order and Consent Decree pursuant to which the Company agreed to pay $48 million to resolve the matters covered by a Notice of Apparent Liability for Forfeiture ("NAL") issued in December 2017 proposing a $13 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries, the FCC's investigation of the allegations raised in the Hearing Designation Order issued in connection with the Company's proposed acquisition of Tribune, and a retransmission related matter. The Company submitted the $48 million payment on August 19, 2020. As part of the consent decree, the Company also agreed to implement a 4-year compliance plan. Two petitions were filed on June 8, 2020 seeking reconsideration of the Order and Consent Decree. The Company filed an opposition to the petitions on June 18, 2020, and the petitions remain pending.

On September 1, 2020, one of the individuals who filed a petition for reconsideration of the Order and Consent Decree filed a petition to deny the license renewal application of WBFF(TV), Baltimore, MD, and the license renewal applications of two other Baltimore, MD stations with which the Company has a JSA or LMA, Deerfield Media station WUTB(TV) and Cunningham Broadcasting Corporation ("Cunningham") station WNUV(TV). The Company filed an opposition to the petition on October 1, 2020, and the petition remains pending.

On September 2, 2020, the FCC adopted a Memorandum Opinion and Order and NAL against the licensees of several stations with whom the Company has LMAs, JSAs, and/or SSAs in response to a complaint regarding those stations' retransmission consent negotiations. The NAL proposed a $0.5 million penalty for each station, totaling $9 million. The licensees filed a response to the NAL on October 15, 2020, asking the Commission to dismiss the proceeding or, alternatively, to reduce the proposed forfeiture to $25,000 per station. On July 28, 2021, the FCC issued a forfeiture order in which the $0.5 million penalty was upheld for all but one station. A Petition for Reconsideration of the forfeiture order was filed on August 7, 2021. On March 14, 2022, the FCC released a Memorandum Opinion and Order and Order on Reconsideration, reaffirming the forfeiture order and dismissing (and in the alternative, denying) the Petition for Reconsideration. The Company is not a party to this forfeiture order; however, our consolidated financial statements include an accrual of additional expenses of $8 million for the above legal matters during the year ended December 31, 2021, as we consolidate these stations as VIEs.

On September 21, 2022, the FCC released an NAL against the licensees of a number of stations, including 83 Company stations and several stations with whom the Company has LMAs, JSAs, and/or SSAs, for violation of the FCC's limitations on commercial matter in children's television programming related to KidsClick network programming distributed by the Company in 2018. The NAL proposed a fine of $2.7 million against the Company, and fines ranging from $20,000 to $26,000 per station for the other licensees, including the LMA, JSA, and/or SSA stations, for a total of $3.4 million. As of June 30, 2023, we have accrued $3.4 million. On October 21, 2022, the Company filed a written response seeking reduction of the proposed fine amount, and the matter remains pending.

Other Litigation Matters

On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice ("DOJ"). This consent decree resolves the DOJ's investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The U.S. District Court for the District of Columbia entered the consent decree on May 22, 2019. The consent decree is not an admission of any wrongdoing by the Company and does not subject the Company to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the DOJ has required in previous consent decrees in other industries. The consent decree also requires the Company's stations not to exchange pacing and certain other information with other stations in their local markets, which the Company's management had already instructed them not to do.

The Company is aware of twenty-two putative class action lawsuits that were filed against the Company following published reports of the DOJ investigation into the exchange of pacing data within the industry. On October 3, 2018, these lawsuits were consolidated in the Northern District of Illinois. The consolidated action alleges that the Company and thirteen other broadcasters conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States and engaged in unlawful information sharing, in violation of the Sherman Antitrust Act. The consolidated action seeks damages, attorneys' fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The Court denied the Defendants' motion to dismiss on November 6, 2020. Since then, the Plaintiffs have served the Defendants with written discovery requests and have begun taking depositions of the employees of the defendants and certain third parties. The Court has set a pretrial schedule which currently requires discovery to be completed by December 15, 2023, or 90 days after the Special Master certifies completion of the privilege review, whichever date is later, and requires briefing on class certification to be completed within 195 days after that date. The Company believes the lawsuits are without merit and intends to vigorously defend itself against all such claims.

On July 19, 2023, as part of the ongoing bankruptcy proceedings of DSG, an independently managed and unconsolidated subsidiary of Sinclair, DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC, filed a complaint, under seal, in the United States Bankruptcy Court for the Southern District of Texas naming certain subsidiaries of Sinclair, including SBG and STG, David D. Smith, Sinclair's Executive Chairman, Christopher S. Ripley, Sinclair's President and Chief Executive Officer, Lucy A. Rutishauser, Sinclair's Executive Vice President & Chief Financial Officer, and Scott Shapiro, Sinclair's Executive Vice President, Corporate Development and Strategy, as defendants.

In the complaint, plaintiffs challenge a series of transactions involving SBG and certain of its subsidiaries, on the one hand, and DSG and its subsidiaries, on the other hand, since SBG acquired the former Fox Sports regional sports networks from The Walt Disney Company in August 2019. The complaint alleges, among other things, that the management services agreement entered into by STG and DSG was not fair to DSG and was designed to benefit STG and SBG; that the Bally's Corporation ("Bally's") transaction in November 2020 through which Bally's acquired naming rights to certain regional sports networks was not fair to DSG and was designed to benefit STG and SBG; and that certain distributions made by DSG that were used to pay down preferred equity of DSH, were inappropriate and were conducted at a time when DSG was insolvent. The complaint alleges that SBG and its subsidiaries (other than DSG and its subsidiaries) received payments or indirect benefits of approximately $1.5 billion as a result of the alleged misconduct. The complaint asserts a variety of claims, including certain fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties. The plaintiffs are seeking, among other relief, avoidance of fraudulent transfers and unlawful distributions, and unspecified monetary damages to be determined. The defendants believe the allegations in this lawsuit are without merit and intend to vigorously defend against plaintiffs' claims.

While at this early stage of the proceedings it is not possible to determine the probability of any outcome or probability or amount of any loss, in the event of an unfavorable outcome, Sinclair's subsidiaries may be required to pay monetary damages, which could materially and adversely affect Sinclair's financial and results of operations.

Sinclair Broadcast Group, LLC

Loss Contingencies [Line Items]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:

Litigation

SBG is a party to lawsuits, claims, and regulatory matters from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. Except as noted below, SBG does not believe the outcome of these matters, individually or in the aggregate, will have a material effect on SBG's financial statements. 

FCC Litigation Matters

On May 22, 2020, the Federal Communications Commission ("FCC") released an Order and Consent Decree pursuant to which the Company agreed to pay $48 million to resolve the matters covered by a Notice of Apparent Liability for Forfeiture ("NAL") issued in December 2017 proposing a $13 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries, the FCC's investigation of the allegations raised in the Hearing Designation Order issued in connection with the Company's proposed acquisition of Tribune, and a retransmission related matter. The Company submitted the $48 million payment on August 19, 2020. As part of the consent decree, the Company also agreed to implement a 4-year compliance plan. Two petitions were filed on June 8, 2020 seeking reconsideration of the Order and Consent Decree. The Company filed an opposition to the petitions on June 18, 2020, and the petitions remain pending.

On September 1, 2020, one of the individuals who filed a petition for reconsideration of the Order and Consent Decree filed a petition to deny the license renewal application of WBFF(TV), Baltimore, MD, and the license renewal applications of two other Baltimore, MD stations with which the Company has a JSA or LMA, Deerfield Media station WUTB(TV) and Cunningham Broadcasting Corporation ("Cunningham") station WNUV(TV). The Company filed an opposition to the petition on October 1, 2020, and the petition remains pending.

On September 2, 2020, the FCC adopted a Memorandum Opinion and Order and NAL against the licensees of several stations with whom the Company has LMAs, JSAs, and/or SSAs in response to a complaint regarding those stations' retransmission consent negotiations. The NAL proposed a $0.5 million penalty for each station, totaling $9 million. The licensees filed a response to the NAL on October 15, 2020, asking the Commission to dismiss the proceeding or, alternatively, to reduce the proposed forfeiture to $25,000 per station. On July 28, 2021, the FCC issued a forfeiture order in which the $0.5 million penalty was upheld for all but one station. A Petition for Reconsideration of the forfeiture order was filed on August 7, 2021. On March 14, 2022, the FCC released a Memorandum Opinion and Order and Order on Reconsideration, reaffirming the forfeiture order and dismissing (and in the alternative, denying) the Petition for Reconsideration. The Company is not a party to this forfeiture order; however, SBG's consolidated financial statements include an accrual of additional expenses of $8 million for the above legal matters during the year ended December 31, 2021, as SBG consolidates these stations as VIEs.

On September 21, 2022, the FCC released an NAL against the licensees of a number of stations, including 83 Company stations and several stations with whom the Company has LMAs, JSAs, and/or SSAs, for violation of the FCC's limitations on commercial matter in children's television programming related to KidsClick network programming distributed by the Company in 2018. The NAL proposed a fine of $2.7 million against the Company, and fines ranging from $20,000 to $26,000 per station for the other licensees, including the LMA, JSA, and/or SSA stations, for a total of $3.4 million. As of June 30, 2023, SBG has accrued $3.4 million. On October 21, 2022, the Company filed a written response seeking reduction of the proposed fine amount, and the matter remains pending.

Other Litigation Matters

On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice ("DOJ"). This consent decree resolves the DOJ's investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The U.S. District Court for the District of Columbia entered the consent decree on May 22, 2019. The consent decree is not an admission of any wrongdoing by the Company and does not subject the Company to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the DOJ has required in previous consent decrees in other industries. The consent decree also requires the Company's stations not to exchange pacing and certain other information with other stations in their local markets, which the Company's management had already instructed them not to do.

The Company is aware of twenty-two putative class action lawsuits that were filed against the Company following published reports of the DOJ investigation into the exchange of pacing data within the industry. On October 3, 2018, these lawsuits were consolidated in the Northern District of Illinois. The consolidated action alleges that the Company and thirteen other broadcasters conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States and engaged in unlawful information sharing, in violation of the Sherman Antitrust Act. The consolidated action seeks damages, attorneys' fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The Court denied the Defendants' motion to dismiss on November 6, 2020. Since then, the Plaintiffs have served the Defendants with written discovery requests and have begun taking depositions of the employees of the defendants and certain third parties. The Court has set a pretrial schedule which currently requires discovery to be completed by December 15, 2023, or 90 days after the Special Master certifies completion of the privilege review, whichever date is later, and requires briefing on class certification to be completed within 195 days after that date. The Company believes the lawsuits are without merit and intends to vigorously defend itself against all such claims.

On July 19, 2023, as part of the ongoing bankruptcy proceedings of DSG, an independently managed and unconsolidated subsidiary of Sinclair, DSG and its wholly-owned subsidiary, Diamond Sports Net, LLC, filed a complaint, under seal, in the United States Bankruptcy Court for the Southern District of Texas naming certain subsidiaries of Sinclair, including SBG and STG, David D. Smith, Sinclair's Executive Chairman, Christopher S. Ripley, Sinclair's President and Chief Executive Officer, Lucy A. Rutishauser, Sinclair's Executive Vice President & Chief Financial Officer, and Scott Shapiro, Sinclair's Executive Vice President, Corporate Development and Strategy, as defendants.

In the complaint, plaintiffs challenge a series of transactions involving SBG and certain of its subsidiaries, on the one hand, and DSG and its subsidiaries, on the other hand, since SBG acquired the former Fox Sports regional sports networks from The Walt Disney Company in August 2019. The complaint alleges, among other things, that the management services agreement entered into by STG and DSG was not fair to DSG and was designed to benefit STG and SBG; that the Bally's Corporation ("Bally's") transaction in November 2020 through which Bally's acquired naming rights to certain regional sports networks was not fair to DSG and was designed to benefit STG and SBG; and that certain distributions made by DSG that were used to pay down preferred equity of DSH, were inappropriate and were conducted at a time when DSG was insolvent. The complaint alleges that SBG and its subsidiaries (other than DSG and its subsidiaries) received payments or indirect benefits of approximately $1.5 billion as a result of the alleged misconduct. The complaint asserts a variety of claims, including certain fraudulent transfers of assets, unlawful distributions and payments, breaches of contracts, unjust enrichment and breaches of fiduciary duties. The plaintiffs are seeking, among other relief, avoidance of fraudulent transfers and unlawful distributions, and unspecified monetary damages to be determined. The defendants believe the allegations in this lawsuit are without merit and intend to vigorously defend against plaintiffs' claims.

While at this early stage of the proceedings it is not possible to determine the probability of any outcome or probability or amount of any loss, in the event of an unfavorable outcome, SBG's subsidiaries may be required to pay monetary damages, which could materially and adversely affect SBG's financial and results of operations.

XML

SEGMENT DATA

6 Months Ended

Jun. 30, 2023

Segment data

SEGMENT DATA

SEGMENT DATA:

During the period ended June 30, 2023 we modified our segment reporting to align with the new organizational structure of the Company discussed within Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies. The segment information within the comparative periods have been revised to reflect this new presentation. During the period ended June 30, 2023, we measured segment performance based on operating income (loss). For the quarter ended June 30, 2023, we had two reportable segments, local media and tennis. Prior to the Deconsolidation, we had one additional reportable segment, local sports. Our local media segment includes our television stations, original networks and content and provides these through free over-the-air programming to television viewing audiences for stations in markets located throughout the continental United States, as well as distributes the content of these stations to MVPDs for distribution to their customers in exchange for contractual fees. See Revenue Recognition under Note 1. Nature of Operations and Summary of Significant Accounting Policies for further detail. Our tennis segment provides viewers coverage of many of tennis' top tournaments and original professional sport and tennis lifestyle shows. Our local sports segment provided viewers with live professional sports content and included the Bally RSNs, Marquee, and our investment in the YES Network, prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. All of our businesses are located within the United States. As a result of the Reorganization, the local media segment assets are owned and operated by SBG, the assets of the tennis segment are owned and operated by Ventures, and the other Transferred Assets, which are included in other and corporate, are owned and operated by Ventures.

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations		Consolidated
Assets	$	4,315	$	309	$	1,577	$	—	$	6,201

For the three months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	699	(b)	$	60	$	14	$	(5)	(a)	$	768
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			5		1		—			73
Amortization of program contract costs	19			—		—		—			19
Corporate general and administrative expenses	46			—		16		—			62
(Gain) loss on asset dispositions and other, net of impairment	(2)			—		7		—			5
Operating income (loss)	22			3		(28)		—			(3)
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		—			76
Loss from equity method investments	—			—		(1)		—			(1)

For the six months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	115	$	31	$	(9)	(a)	$	1,541
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		3		(1)			138
Amortization of program contract costs	41			—		—		—			41
Corporate general and administrative expenses	78			—		42		—			120
(Gain) loss on asset dispositions and other, net of impairment	(3)			—		14		—			11
Operating income (loss)	63			21		(66)		—			18
Interest expense including amortization of debt discount and deferred financing costs	150			—		—		—			150
Income from equity method investments	—			—		30		—			30

For the three months ended June 30, 2022	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	58	$	27	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			5		2		(1)			67
Amortization of program contract costs	21			—		—		—			21
Corporate general and administrative expenses	34			—		4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—		—			(4)
Operating income (loss)	116			—		(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			—		3		(3)			54
Income from equity method investments	—			—		3		—			3

For the six months ended June 30, 2022	Local Media			Tennis		Local Sports (c)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	114	$	482	$	57	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			10		54		4		(2)			188
Amortization of sports programming rights	—			—		326		—		—			326
Amortization of program contract costs	46			—		—		—		—			46
Corporate general and administrative expenses	77			—		1		7		—			85
Gain on deconsolidation of subsidiary	—			—		—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		—		(1)		—			(9)
Operating income (loss)	211			24		(4)		3,342		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			—		72		6		(8)			169
Income from equity method investments	—			—		10		5		—			15

(a)Includes $2 million and $3 million for the three and six months ended June 30, 2023, respectively, and $3 million and $10 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by other to local media, which is eliminated in consolidation; $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation; and $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to local media from tennis, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Sinclair Broadcast Group, LLC

Segment data

SEGMENT DATA

SEGMENT DATA:

During the period ended June 30, 2023 SBG modified its segment reporting to align with the new organizational structure of SBG discussed within Company Reorganization under Note 1. Nature of Operations and Summary of Significant Accounting Policies. The segment information within the comparative periods have been revised to reflect this new presentation. During the period ended June 30, 2023, SBG measured segment performance based on operating income (loss). For the quarter ended June 30, 2023, SBG had one reportable segment: local media. Prior to the Deconsolidation, SBG had one additional reportable segment: local sports. The local media segment includes SBG's television stations, original networks, and content and provides these through free over-the-air programming to television viewing audiences for stations in markets located throughout the continental United States, as well as distributes the content of these stations to MVPDs for distribution to their customers in exchange for contractual fees. See Revenue Recognition under Note 1. Nature of Operations and Summary of Significant Accounting Policies for further detail. The local sports segment provided viewers with live professional sports content and included the Bally RSNs, Marquee, and SBG's investment in the YES Network, prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC under Note 1. Nature of Operations and Summary of Significant Accounting Policies. Other and corporate are not reportable segments but are included for reconciliation purposes. Other primarily consists of tennis, non-broadcast digital and internet solutions, technical services, and non-media investments. Corporate costs primarily include SBG's costs to operate as the parent company of its subsidiaries. All of SBG's businesses are located within the United States.

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Other & Corporate		Eliminations		Consolidated
Assets	$	4,349	$	645	$	—	$	4,994

For the three months ended June 30, 2023	Local Media			Other & Corporate (c)		Eliminations		Consolidated
Revenue	$	699	(b)	$	47	$	(3)	$	743
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			3		—		70
Amortization of program contract costs	19			—		—		19
Corporate general and administrative expenses	46			12		—		58
(Gain) loss on asset dispositions and other, net of impairment	(2)			6		—		4
Operating income (loss)	22			(18)		—		4
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		76

For the six months ended June 30, 2023	Local Media			Other & Corporate (c)		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	119	$	(7)	(a)	$	1,516
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		(1)			135
Amortization of program contract costs	41			—		—			41
Corporate general and administrative expenses	78			38		—			116
(Gain) loss on asset dispositions and other, net of impairment	(3)			13		—			10
Operating income (loss)	63			(38)		—			25
Interest expense including amortization of debt discount and deferred financing costs	150			—		—			150
Income from equity method investments	—			31		—			31

For the three months ended June 30, 2022	Local Media			Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	85	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			7		(1)			67
Amortization of program contract costs	21			—		—			21
Corporate general and administrative expenses	34			4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—			(4)
Operating income (loss)	116			(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			3		(3)			54
Income from equity method investments	—			3		—			3

For the six months ended June 30, 2022	Local Media			Local Sports (d)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	482	$	171	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			54		14		(2)			188
Amortization of sports programming rights	—			326		—		—			326
Amortization of program contract costs	46			—		—		—			46
Corporate general and administrative expenses	77			1		7		—			85
Gain on deconsolidation of subsidiary	—			—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		(1)		—			(9)
Operating income (loss)	211			(4)		3,366		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			72		6		(8)			169
Income from equity method investments	—			10		5		—			15

(a)Includes $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity in tennis, non-broadcast digital and internet solutions, technical services, and non-media investments (collectively, other) prior to the Reorganization on June 1, 2023 and the activity in corporate prior and subsequent to the Reorganization. See Company Reorganization within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(d)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2023

Variable Interest Entity [Line Items]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES: 

Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational, and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational, and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.

A subsidiary of DSIH is a party to a joint venture associated with Marquee. Marquee is party to a long term telecast rights agreement which provides the rights to air certain live game telecasts and other content, which we guarantee. In connection with a prior acquisition, we became party to a joint venture associated with one other regional sports network. DSIH participated significantly in the economics and had the power to direct the activities which significantly impacted the economic performance of these regional sports networks, including sales and certain operational services. As of March 1, 2022, as a result of the Deconsolidation, we no longer consolidate these regional sports networks. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

The amounts above represent the combined assets and liabilities of the VIEs described above, for which we are the primary beneficiary. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $130 million as of both June 30, 2023 and December 31, 2022, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of June 30, 2023, all of the liabilities are non-recourse to us except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar.

Other VIEs 

We have several investments in entities which are considered VIEs. However, we do not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.

The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary were $201 million and $187 million as of June 30, 2023 and December 31, 2022, respectively, and are included in other assets in our consolidated balance sheets. See Note 2. Other Assets for more information related to our equity investments. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to equity method investments and other investments are recorded in (loss) income from equity method investments and other expense, net, respectively, in our consolidated statements of operations. We recorded gains of $3 million and $38 million for the three and six months ended June 30, 2023, respectively, and gains of $5 million and $25 million for the three and six months ended June 30, 2022, respectively, related to these investments.

In conjunction with the Transaction, the composition of the DSIH board of managers was modified resulting in our loss of voting control over DSIH. We hold substantially all of the equity of DSIH and provide certain management and general and administrative services to DSIH. However, it was determined that we are not the primary beneficiary because we lack the ability to control the activities that most significantly drive the economics of the business. The carrying amount of our investment in DSIH is zero and there is no obligation for us to provide additional financial support. We are also party to the A/R Facility held by an indirect wholly-owned subsidiary of DSIH which has a maturity date of September 23, 2024. On May 10, 2023, DSPV paid the Company approximately $199 million, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. There was no outstanding balance as of June 30, 2023 and an outstanding balance of approximately $193 million as of December 31, 2022. As of June 30, 2023, our aggregate commitment under the A/R Facility is $50 million. See Note Receivable within Note 2. Other Assets.

Sinclair Broadcast Group, LLC

Variable Interest Entity [Line Items]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES: 

Certain of SBG's stations provide services to other station owners within the same respective market through agreements, such as LMAs, where SBG provides programming, sales, operational, and administrative services, and JSAs and SSAs, where SBG provides non-programming, sales, operational, and administrative services. In certain cases, SBG has also entered into purchase agreements or options to purchase the license related assets of the licensee. SBG typically owns the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with SBG's acquisition of the non-license assets of the station, SBG has provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of SBG's investment in the stations, SBG is the primary beneficiary when, subject to the ultimate control of the licensees, SBG has the power to direct the activities which significantly impact the economic performance of the VIE through the services SBG provides and SBG absorbs losses and returns that would be considered significant to the VIEs. The fees paid between SBG and the licensees pursuant to these arrangements are eliminated in consolidation.

A subsidiary of DSIH is a party to a joint venture associated with Marquee. Marquee is party to a long term telecast rights agreement which provides the rights to air certain live game telecasts and other content, which SBG guarantees. In connection with a prior acquisition, SBG became party to a joint venture associated with one other regional sports network. DSIH participated significantly in the economics and had the power to direct the activities which significantly impacted the economic performance of these regional sports networks, including sales and certain operational services. As of March 1, 2022, as a result of the Deconsolidation, SBG no longer consolidates these regional sports networks. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in SBG's consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Long-term liabilities:
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

The amounts above represent the combined assets and liabilities of the VIEs described above, for which SBG is the primary beneficiary. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $130 million as of both June 30, 2023 and December 31, 2022 as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of June 30, 2023, all of the liabilities are non-recourse to SBG except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party obligations under Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar.

Other VIEs 

Prior to the Reorganization, SBG had several investments in entities which are considered VIEs. However, SBG did not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow SBG to control the entity, and therefore, SBG was not considered the primary beneficiary of these VIEs. SBG's investments in these VIEs for which SBG was not the primary beneficiary were transferred to Ventures as part of the Reorganization.

The carrying amounts of SBG's investments in these VIEs for which SBG was not the primary beneficiary were $187 million as of December 31, 2022, and are included in other assets in SBG's consolidated balance sheets. See Note 2. Other Assets for more information related to SBG's equity investments. The income and loss related to equity method investments and other investments are recorded in (loss) income from equity method investments and other expense, net, respectively, in SBG's consolidated statements of operations. SBG recorded gains of $2 million and $37 million for the three and six months ended June 30, 2023, respectively, and gains of $5 million and $25 million for the three and six months ended June 30, 2022, respectively, related to these investments.

In conjunction with the Transaction, the composition of the DSIH board of managers was modified resulting in SBG's loss of voting control over DSIH. SBG holds substantially all of the equity of DSIH and provides certain management and general and administrative services to DSIH. However, it was determined that SBG is not the primary beneficiary because SBG lacks the ability to control the activities that most significantly drive the economics of the business. The carrying amount of SBG's investment in DSIH is zero and there is no obligation for SBG to provide additional financial support.

Prior to the Reorganization, SBG was also party to the A/R Facility held by an indirect wholly-owned subsidiary of DSIH which had an outstanding balance of approximately $193 million as of December 31, 2022. See Note Receivable within Note 2. Other Assets. The loans under the A/R Facility were transferred to Ventures as part of the Reorganization.

XML

RELATED PERSON TRANSACTIONS

6 Months Ended

Jun. 30, 2023

Related Party Transaction [Line Items]

RELATED PERSON TRANSACTIONS

RELATED PERSON TRANSACTIONS:

Transactions with our controlling shareholders

David, Frederick, J. Duncan, and Robert Smith (collectively, the "controlling shareholders") are brothers and hold substantially all of our Class B Common Stock and some of our Class A Common Stock. We engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases. Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders. Lease payments made to these entities were $1 million and $3 million for the three and six months ended June 30, 2023, respectively, and $1 million and $3 million for the three and six months ended June 30, 2022, respectively. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of $0.1 million and $0.2 million for the three and six months ended June 30, 2023, respectively. We incurred expenses of less than $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively.

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations, including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah; and KTXD-TV in Dallas, Texas (collectively, the "Cunningham Stations"). Certain of our stations provide services to the Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 8. Variable Interest Entities, for further discussion of the scope of services provided under these types of arrangements.

All of the non-voting stock of the Cunningham Stations is owned by trusts for the benefit of the children of our controlling shareholders. We consolidate certain subsidiaries of Cunningham with which we have variable interests through various arrangements related to the Cunningham Stations.

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2028 and there is one additional five-year renewal term remaining with final expiration on July 1, 2033. We also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant us the right to acquire, and grant Cunningham the right to require us to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Pursuant to the terms of this agreement we are obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station's annual net broadcast revenue or (ii) $6 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The cumulative prepayments made under these purchase agreements were $63 million and $61 million as of June 30, 2023 and December 31, 2022, respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both June 30, 2023 and December 31, 2022, was approximately $54 million. Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and have a purchase option to acquire for $0.2 million. We paid Cunningham, under these agreements, $3 million and $6 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively.

The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WDBB-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between April 2025 and November 2029 and certain stations have renewal provisions for successive eight-year periods.

As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported in our consolidated statements of operations. Our consolidated revenues include $33 million and $69 million for the three and six months ended June 30, 2023, respectively, and $37 million and $71 million for the three and six months ended June 30, 2022, respectively, related to the Cunningham Stations.

We have an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which Cunningham has an LMA that expires in June 2025. Under the agreement, Cunningham paid us an initial fee of $1 million and pays us $0.3 million annually for master control services plus the cost to maintain and repair the equipment. In addition, we have an agreement with Cunningham to provide a news share service with the Johnstown, PA station for an annual fee of $0.6 million, which increases by 3% on each anniversary and expires in November 2024.

We have multi-cast agreements with Cunningham Stations in the Eureka/Chico-Redding, California; Tri-Cities, Tennessee; Anderson, South Carolina; Baltimore, Maryland; Portland, Maine; Charleston, West Virginia; Dallas, Texas; and Greenville, North Carolina markets. In exchange for carriage of these networks in their markets, we paid $0.5 million and $1 million for the three and six months ended June 30, 2023, respectively, and $1 million for both the three and six months ended June 30, 2022 under these agreements.

MileOne Autogroup Inc.

We sell advertising time to certain operating subsidiaries of MileOne Autogroup, Inc. ("MileOne"), including automobile dealerships, body shops, and an automobile leasing company. David D. Smith, our Executive Chairman, has a controlling interest in, and is a member of the Board of Directors of, MileOne. We received payments for advertising totaling less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022.

Leased property by real estate ventures

Certain of our real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent payments received under these leases were $0.3 million and $0.7 million for the three and six months ended June 30, 2023, respectively, and $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.

Diamond Sports Intermediate Holdings LLC

Subsequent to February 28, 2022, we accounted for our equity interest in DSIH as an equity method investment. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Management Services Agreement. In 2019, we entered into a management services agreement with DSG, a wholly-owned subsidiary of DSIH, in which we provide DSG with affiliate sales and marketing services and general and administrative services. The contractual annual amount due from DSG for these services during the fiscal year ended December 31, 2023 is $78 million, which is subject to increases on an annual basis. Additionally, the agreement contains an incentive fee payable to us calculated based on certain terms contained within new or renewed distribution agreements with Distributors. As a condition to the Transaction, DSG will defer the cash payment of a portion of its management fee payable to the Company over the next four years. Pursuant to this agreement, the local media segment recorded $13 million and $22 million of revenue for the three and six months ended June 30, 2023, respectively, and $10 million and $38 million of revenue for the three and six months ended June 30, 2022, respectively, of which $24 million for the six months ended June 30, 2022 was eliminated in consolidation prior to the Deconsolidation. We will not recognize the portion of deferred management fees as revenue until such fees are determined to be collectible.

Distributions. DSIH made distributions to DSH for tax payments on the dividends of the Redeemable Subsidiary Preferred Equity of $2 million and $3 million during the three and six months ended June 30, 2022, respectively.

Note receivable. We received payments totaling $206 million and $209 million during the three and six months ended June 30, 2023, respectively, and $10 million and $60 million during the three and six months ended June 30, 2022, respectively, from DSPV related to the note receivable associated with the A/R Facility, including $199 million from DSPV on May 10, 2023, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses.

We recorded revenue of $6 million and $11 million during the three and six months ended June 30, 2023, respectively, and $4 million and $5 million during the three and six months ended June 30, 2022, respectively, related to certain other transactions between DSIH and the Company.

Other equity method investees

YES Network. In August 2019, YES Network, which was accounted for as an equity method investment prior to the Deconsolidation, entered into a management services agreement with the Company, in which we provide certain services for an initial term that expires on August 29, 2025. The agreement will automatically renew for two 2-year renewal terms, with a final expiration on August 29, 2029. Pursuant to the terms of the agreement, the YES Network paid us a management services fee of $1 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

DSIH has a minority interest in certain mobile production businesses. Prior to the Deconsolidation, we accounted for these as equity method investments. DSIH made payments to these businesses for production services totaling $5 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

We have a minority interest in a sports marketing company, which we account for as an equity method investment. We made payments to this business for marketing services totaling $2 million for the six months ended June 30, 2022.

Sports Programming Rights

Affiliates of six professional teams had non-controlling equity interests in certain of DSIH's RSNs. DSIH paid $61 million for the six months ended June 30, 2022 under sports programming rights agreements covering the broadcast of regular season games associated with these professional teams. Prior to the Deconsolidation, these payments were recorded in our consolidated statements of operations and cash flows. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Employees

Jason Smith, an employee of the Company, is the son of Frederick Smith, who is a Vice President of the Company and a member of the Company's Board of Directors. Jason Smith received total compensation of $0.2 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively, consisting of salary and bonus. Ethan White, an employee of the Company, is the son-in-law of J. Duncan Smith, who is a Vice President of the Company and Secretary of the Company's Board of Directors. Ethan White received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus, and was granted 1,252 shares of restricted stock, vesting over two years, during the six months ended June 30, 2023. Amberly Thompson, an employee of the Company, is the daughter of Donald Thompson, who is an Executive Vice President and Chief Human Resources Officer of the Company. Amberly Thompson received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. Edward Kim, an employee of the company, is the brother-in-law of Christopher Ripley, who is the President and Chief Executive Officer of the Company. Edward Kim received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary, and was granted 516 and 302 shares of restricted stock during the six months ended June 30, 2023 and 2022, respectively, vesting over two years.

Frederick Smith is the brother of David Smith, Executive Chairman of the Company and Chairman of the Company's Board of Directors; Robert Smith, a member of the Company's Board of Directors; and J. Duncan Smith. Frederick Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. J. Duncan Smith is the brother of David Smith, Frederick Smith, and Robert Smith. J. Duncan Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus.

Sinclair Broadcast Group, LLC

Related Party Transaction [Line Items]

RELATED PERSON TRANSACTIONS

RELATED PERSON TRANSACTIONS:

Transactions with SBG's indirect controlling shareholders

David, Frederick, J. Duncan, and Robert Smith (collectively, the "Sinclair controlling shareholders") are brothers and hold substantially all of the Sinclair Class B Common Stock and some of the Sinclair Class A Common Stock and, subsequent to the Reorganization, David, Frederick, and J. Duncan Smith are on the Board of Managers of SBG. SBG engaged in the following transactions with them and/or entities in which they have substantial interests:

Leases. Certain assets used by SBG and SBG's operating subsidiaries are leased from entities owned by the Sinclair controlling shareholders. Lease payments made to these entities were $1 million and $3 million for the three and six months ended June 30, 2023, respectively, and $1 million and $3 million for the three and six months ended June 30, 2022, respectively. For further information, see Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

Charter Aircraft. SBG leases aircraft owned by certain Sinclair controlling shareholders. For all leases, SBG incurred expenses of $0.1 million and $0.2 million for the three and six months ended June 30, 2023, respectively, and less than $0.1 million and $0.3 million for the three and six months ended June 30, 2022, respectively.

Cunningham Broadcasting Corporation

Cunningham owns a portfolio of television stations, including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah; and KTXD-TV in Dallas, Texas (collectively, the "Cunningham Stations"). Certain of SBG's stations provide services to the Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 7. Variable Interest Entities, for further discussion of the scope of services provided under these types of arrangements.

All of the non-voting stock of the Cunningham Stations is owned by trusts for the benefit of the children of the Sinclair controlling shareholders. SBG consolidates certain subsidiaries of Cunningham with which SBG has variable interests through various arrangements related to the Cunningham Stations.

The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2028 and there is one additional five-year renewal term remaining with final expiration on July 1, 2033. SBG also executed purchase agreements to acquire the license related assets of these stations from Cunningham, which grant SBG the right to acquire, and grant Cunningham the right to require SBG to acquire, subject to applicable FCC rules and regulations, 100% of the capital stock or the assets of these individual subsidiaries of Cunningham. Pursuant to the terms of this agreement SBG is obligated to pay Cunningham an annual fee for the television stations equal to the greater of (i) 3% of each station's annual net broadcast revenue or (ii) $6 million. The aggregate purchase price of these television stations increases by 6% annually. A portion of the fee is required to be applied to the purchase price to the extent of the 6% increase. The cumulative prepayments made under these purchase agreements were $63 million and $61 million as of June 30, 2023 and December 31, 2022, respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both June 30, 2023 and December 31, 2022, was approximately $54 million. Additionally, SBG provides services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and has a purchase option to acquire for $0.2 million. SBG paid Cunningham, under these agreements, $3 million and $6 million for the three and six months ended June 30, 2023, respectively, and $1 million and $4 million for the three and six months ended June 30, 2022, respectively.

The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WDBB-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between April 2025 and November 2029 and certain stations have renewal provisions for successive eight-year periods.

As SBG consolidates the licensees as VIEs, the amounts SBG earns or pays under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported in SBG's consolidated statements of operations. SBG's consolidated revenues include $33 million and $69 million for the three and six months ended June 30, 2023, respectively, and $37 million and $71 million for the three and six months ended June 30, 2022, respectively, related to the Cunningham Stations.

SBG has an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which Cunningham has an LMA that expires in June 2025. Under the agreement, Cunningham paid SBG an initial fee of $1 million and pays SBG $0.3 million annually for master control services plus the cost to maintain and repair the equipment. In addition, SBG has an agreement with Cunningham to provide a news share service with the Johnstown, PA station for an annual fee of $0.6 million, which increases by 3% on each anniversary and expires in November 2024.

SBG has multi-cast agreements with Cunningham Stations in the Eureka/Chico-Redding, California; Tri-Cities, Tennessee; Anderson, South Carolina; Baltimore, Maryland; Portland, Maine; Charleston, West Virginia; Dallas, Texas; and Greenville, North Carolina markets. In exchange for carriage of these networks in their markets, SBG paid $0.5 million and $1 million for the three and six months ended June 30, 2023, respectively, and $1 million for both the three and six months ended June 30, 2022 under these agreements.

MileOne Autogroup Inc.

SBG sells advertising time to certain operating subsidiaries of MileOne Autogroup, Inc. ("MileOne"), including automobile dealerships, body shops, and an automobile leasing company. David D. Smith, has a controlling interest in, and is a member of the Board of Directors of, MileOne. SBG received payments for advertising totaling less than $0.1 million for each of the three and six months ended June 30, 2023 and 2022.

Leased property by real estate ventures

Certain of SBG's real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent payments received under these leases were $0.3 million and $0.7 million for the three and six months ended June 30, 2023, respectively, and $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.

Sinclair, Inc.

Subsequent to the Reorganization, Sinclair is the sole member of SBG. See Company Reorganization within Note 1. Nature of Operations and Summary of Significant Accounting Policies for further discussion.

SBG recorded revenue of $1 million during both the three and six months ended June 30, 2023 within the local media segment related to sales services provided by SBG to Sinclair, and certain of its direct and indirect subsidiaries.

SBG recorded expenses of $2 million during both the three and six months ended June 30, 2023 within the local media segment related to digital advertising services provided by Sinclair, and certain of its direct and indirect subsidiaries, to SBG.

SBG made a cash distribution of $360 million to Sinclair, and certain of its direct and indirect subsidiaries, during both the three and six months ended June 30, 2023, as part of the Reorganization.

As of June 30, 2023, SBG had a receivable from Sinclair, and certain of its direct and indirect subsidiaries, of $16 million, included within prepaid expenses and other current assets in SBG's consolidated balance sheets.

Diamond Sports Intermediate Holdings LLC

Subsequent to February 28, 2022, SBG's equity interest in DSIH is accounted for as an equity method investment. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Management Services Agreement. In 2019, SBG entered into a management services agreement with DSG, a wholly-owned subsidiary of DSIH, in which SBG provided DSG with affiliate sales and marketing services and general and administrative services. The contractual annual amount due from DSG for these services during the fiscal year ended December 31, 2023 is $78 million, which is subject to increases on an annual basis. Additionally, the agreement contains an incentive fee payable to SBG calculated based on certain terms contained within new or renewed distribution agreements with Distributors. As a condition to the Transaction, DSG will defer the cash payment of a portion of its management fee payable to SBG over the next four years. Pursuant to this agreement, the local media segment recorded $13 million and $22 million of revenue for the three and six months ended June 30, 2023, respectively, and $10 million and $38 million of revenue for the three and six months ended June 30, 2022, respectively, of which $24 million for the six months ended June 30, 2022 was eliminated in consolidation prior to the Deconsolidation. SBG will not recognize the portion of deferred management fees as revenue until such fees are determined to be collectible.

Distributions. DSIH made distributions to DSH for tax payments on the dividends of the Redeemable Subsidiary Preferred Equity of $2 million and $3 million during the three and six months ended June 30, 2022, respectively.

Note receivable. SBG received payments totaling $206 million and $209 million during the three and six months ended June 30, 2023, respectively, and $10 million and $60 million during the three and six months ended June 30, 2022, respectively, from DSPV related to the note receivable associated with the A/R Facility, including $199 million from DSPV on May 10, 2023, representing the aggregate outstanding principal amount of the loans under the A/R Facility, accrued interest, and outstanding fees and expenses. The loans under the A/R Facility and cash received on May 10, 2023 were transferred to Ventures as part of the Reorganization.

SBG recorded revenue of $4 million and $9 million during the three and six months ended June 30, 2023, respectively, and $4 million and $5 million during the three and six months ended June 30, 2022, respectively, within the local media segment and other related to certain other transactions between DSIH and SBG.

Other equity method investees

YES Network. In August 2019, YES Network, which was accounted for as an equity method investment prior to the Deconsolidation, entered into a management services agreement with SBG, in which certain services were provided for an initial term that expires on August 29, 2025. The agreement will automatically renew for two 2-year renewal terms, with a final expiration on August 29, 2029. Pursuant to the terms of the agreement, the YES Network paid SBG a management services fee of $1 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

DSIH has a minority interest in certain mobile production businesses. Prior to the Deconsolidation, SBG accounted for these as equity method investments. DSIH made payments to these businesses for production services totaling $5 million for the six months ended June 30, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

SBG has a minority interest in a sports marketing company, which is accounted for as an equity method investment. Payments to this business for marketing services totaled $2 million for the six months ended June 30, 2022.

Sports Programming Rights

Affiliates of six professional teams had non-controlling equity interests in certain of DSIH's RSNs. DSIH paid $61 million for the six months ended June 30, 2022 under sports programming rights agreements covering the broadcast of regular season games associated with these professional teams. Prior to the Deconsolidation, these payments were recorded in SBG's consolidated statements of operations and cash flows. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Employees

Jason Smith, an employee of SBG, is the son of Frederick Smith, who is a Vice President of SBG and a member of SBG's Board of Managers. Jason Smith received total compensation of $0.2 million and $0.1 million for the three months ended June 30, 2023 and 2022, respectively, and $0.4 million and $0.2 million for the six months ended June 30, 2023 and 2022, respectively, consisting of salary and bonus. Ethan White, an employee of SBG, is the son-in-law of J. Duncan Smith, who is a Vice President of SBG and member of SBG's Board of Managers. Ethan White received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus, and was granted 1,252 shares of restricted stock, vesting over two years, during the six months ended June 30, 2023. Amberly Thompson, an employee of SBG, is the daughter of Donald Thompson, who is an Executive Vice President and Chief Human Resources Officer of SBG. Amberly Thompson received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. Edward Kim, an employee of SBG, is the brother-in-law of Christopher Ripley, who is the President and Chief Executive Officer of SBG. Edward Kim received total compensation of less than $0.1 million for both the three months ended June 30, 2023 and 2022 and $0.1 million for both the six months ended June 30, 2023 and 2022, consisting of salary, and was granted 516 and 302 shares of restricted stock during the six months ended June 30, 2023 and 2022, respectively, vesting over two years.

Frederick Smith is the brother of David Smith, Executive Chairman of SBG and a member of SBG's Board of Managers, and J. Duncan Smith. Frederick Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus. J. Duncan Smith is the brother of David Smith and Frederick Smith. J. Duncan Smith received total compensation of $0.2 million for both the three months ended June 30, 2023 and 2022 and $0.4 million for both the six months ended June 30, 2023 and 2022, consisting of salary and bonus.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

FAIR VALUE MEASUREMENTS:

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities	N/A		$	5	N/A		$	6
Money market funds	N/A		523		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a)	N/A		123		N/A		153
Interest rate swap (b)	N/A		8		N/A		—
STG (c):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (c)	7		7		8		8
Debt of non-media subsidiaries (c)	16		16		16		16
Level 3:
Investments in equity securities (d)	N/A		58		N/A		75

N/A - Not applicable

(a)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(d)On November 18, 2020, we entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 we recorded a fair value adjustment loss of $17 million and during the three and six months ended June 30, 2022 we recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(17)		Measurement adjustments	(17)
Fair value at June 30, 2023	$	58	Fair value at June 30, 2023	$	58

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

Sinclair Broadcast Group, LLC

FAIR VALUE MEASUREMENTS:

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS:

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity's own assumptions.

The following table sets forth the face value and fair value of SBG's financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities (a)	N/A		$	—	N/A		$	6
Money market funds	N/A		348		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a) (b)	N/A		—		N/A		153
Interest rate swap (c)	N/A		8		N/A		—
STG (d):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (d)	7		7		8		8
Debt of non-media subsidiaries (a) (d)	—		—		16		16
Level 3:
Investments in equity securities (a) (e)	N/A		—		N/A		75

N/A - Not applicable

(a)The debt of non-media subsidiaries and the investments in equity securities were transferred to Ventures as part of the Reorganization.

(b)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(c)SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(d)Amounts are carried in SBG's consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(e)On November 18, 2020, SBG entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 SBG recorded a fair value adjustment loss of $25 million and during the three and six months ended June 30, 2022 SBG recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share. The warrants and options were transferred to Ventures as part of the Reorganization.

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(25)		Measurement adjustments	(25)
Transfer to Ventures	(50)		Transfer to Ventures	(50)
Fair value at June 30, 2023	$	—	Fair value at June 30, 2023	$	—

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2023

Sinclair Broadcast Group, LLC

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

STG is the primary obligor under the Bank Credit Agreement, the 5.125% Senior Notes due 2027, the 5.500% Senior Notes due 2030, and the 4.125% Senior Secured Notes due 2030 (collectively, the notes are referred to as the "STG Notes"). Sinclair's Class A Common Stock and Class B Common Stock as of June 30, 2023, were obligations or securities of Sinclair and not obligations or securities of STG. SBG is a guarantor under the STG Notes. As of June 30, 2023, SBG's consolidated total debt, net of deferred financing costs and debt discounts, of $4,206 million included $4,206 million related to STG and its subsidiaries of which SBG guaranteed $4,176 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 (subsequent to the Reorganization), Old Sinclair (prior to the Reorganization), STG, KDSM, LLC and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG, and the eliminations necessary to arrive at SBG's information on a consolidated basis. The condensed consolidating financial statements are provided pursuant to the terms of certain of SBG's debt agreements.

Investments in the subsidiaries of SBG (subsequent to the Reorganization), Old Sinclair (prior to the Reorganization), STG, KDSM, LLC and the guarantor subsidiaries, and the direct and indirect non-guarantor subsidiaries of SBG are presented in each column under the equity method of accounting. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. As such, these condensed consolidating financial statements should be read in conjunction with the accompanying notes to consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Cash and cash equivalents	$	—	$	368	$	—	$	—	$	—	$	368
Accounts receivable, net	—		1		526		17		—		544
Other current assets	18		55		94		2		(17)		152
Total current assets	18		424		620		19		(17)		1,064
Property and equipment, net	16		14		644		17		(2)		689
Investment in equity of consolidated subsidiaries	274		3,144		—		—		(3,418)		—
Goodwill	—		—		2,015		1		—		2,016
Indefinite-lived intangible assets	—		—		109		14		—		123
Definite-lived intangible assets, net	—		—		707		36		(28)		715
Other long-term assets	92		987		638		119		(1,449)		387
Total assets	$	400	$	4,569	$	4,733	$	206	$	(4,914)	$	4,994
Accounts payable and accrued liabilities	$	5	$	101	$	266	$	8	$	(2)	$	378
Current portion of long-term debt	—		27		6		4		(1)		36
Other current liabilities	4		2		114		21		(17)		124
Total current liabilities	9		130		386		33		(20)		538
Long-term debt	—		4,142		22		10		(4)		4,170
Other long-term liabilities	802		56		1,183		166		(1,449)		758
Total liabilities	811		4,328		1,591		209		(1,473)		5,466
Total SBG (deficit) equity	(411)		241		3,142		62		(3,445)		(411)
Noncontrolling interests in consolidated subsidiaries	—		—		—		(65)		4		(61)
Total liabilities and equity	$	400	$	4,569	$	4,733	$	206	$	(4,914)	$	4,994

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2022

(in millions)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Cash and cash equivalents	$	47	$	750	$	1	$	86	$	—	$	884
Accounts receivable, net	—		—		555		57		—		612
Other current assets	32		42		159		19		(65)		187
Total current assets	79		792		715		162		(65)		1,683
Property and equipment, net	—		31		668		51		(22)		728
Investment in equity of consolidated subsidiaries	1,093		3,463		—		—		(4,556)		—
Goodwill	—		—		2,081		7		—		2,088
Indefinite-lived intangible assets	—		—		136		14		—		150
Definite-lived intangible assets, net	—		—		935		42		(31)		946
Other long-term assets	411		938		512		573		(1,325)		1,109
Total assets	$	1,583	$	5,224	$	5,047	$	849	$	(5,999)	$	6,704
Accounts payable and accrued liabilities	$	—	$	80	$	300	$	18	$	(1)	$	397
Current portion of long-term debt	—		28		6		5		(1)		38
Other current liabilities	4		8		139		87		(65)		173
Total current liabilities	4		116		445		110		(67)		608
Long-term debt	—		4,181		24		26		(4)		4,227
Other long-term liabilities	831		52		1,120		314		(1,323)		994
Total liabilities	835		4,349		1,589		450		(1,394)		5,829
Redeemable noncontrolling interests	—		—		—		194		—		194
Total Old Sinclair equity	748		875		3,458		275		(4,608)		748
Noncontrolling interests in consolidated subsidiaries	—		—		—		(70)		3		(67)
Total liabilities, redeemable noncontrolling interests, and equity	$	1,583	$	5,224	$	5,047	$	849	$	(5,999)	$	6,704

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Net revenue	$	—	$	15	$	713	$	33	$	(18)	$	743
Media programming and production expenses	—		4		377		27		(11)		397
Selling, general and administrative expenses	13		49		181		4		(5)		242
Depreciation, amortization and other operating expenses	1		1		85		15		(2)		100
Total operating expenses	14		54		643		46		(18)		739
Operating (loss) income	(14)		(39)		70		(13)		—		4
Equity in (loss) earnings of consolidated subsidiaries	(88)		54		—		—		34		—
Interest expense	—		(75)		—		2		(3)		(76)
Other (expense) income	(1)		17		—		(69)		—		(53)
Total other (expense) income	(89)		(4)		—		(67)		31		(129)
Income tax benefit (provision)	2		19		(15)		20		—		26
Net (loss) income	(101)		(24)		55		(60)		31		(99)
Net income attributable to the noncontrolling interests	—		—		—		(2)		—		(2)
Net (loss) income attributable to SBG	$	(101)	$	(24)	$	55	$	(62)	$	31	$	(101)
Comprehensive (loss) income	$	(101)	$	(15)	$	55	$	(60)	$	31	$	(90)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Net revenue	$	—	$	11	$	820	$	46	$	(40)	$	837
Media programming and production expenses	—		2		383		36		(18)		403
Selling, general and administrative expenses	3		38		206		6		(20)		233
Depreciation, amortization and other operating expenses	1		1		84		12		(4)		94
Total operating expenses	4		41		673		54		(42)		730
Operating (loss) income	(4)		(30)		147		(8)		2		107
Equity in (loss) earnings of consolidated subsidiaries	(12)		119		—		—		(107)		—
Interest expense	—		(53)		—		(4)		3		(54)
Other income (expense)	6		(2)		—		(103)		—		(99)
Total other (expense) income	(6)		64		—		(107)		(104)		(153)
Income tax (provision) benefit	(1)		10		(27)		58		—		40
Net (loss) income	(11)		44		120		(57)		(102)		(6)
Net income attributable to the redeemable noncontrolling interests	—		—		—		(5)		—		(5)
Net (loss) income attributable to Old Sinclair	$	(11)	$	44	$	120	$	(62)	$	(102)	$	(11)
Comprehensive (loss) income	$	(11)	$	44	$	120	$	(57)	$	(102)	$	(6)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Net revenue	$	—	$	25	$	1,452	$	76	$	(37)	$	1,516
Media programming and production expenses	—		7		753		61		(26)		795
Selling, general and administrative expenses	38		84		368		9		(8)		491
Depreciation, amortization and other operating expenses	2		2		167		37		(3)		205
Total operating expenses	40		93		1,288		107		(37)		1,491
Operating (loss) income	(40)		(68)		164		(31)		—		25
Equity in earnings of consolidated subsidiaries	119		123		—		—		(242)		—
Interest expense	—		(148)		(1)		(1)		—		(150)
Other (expense) income	(4)		25		—		(32)		—		(11)
Total other income (expense)	115		—		(1)		(33)		(242)		(161)
Income tax benefit (provision)	9		38		(38)		221		—		230
Net income (loss)	84		(30)		125		157		(242)		94
Net loss attributable to the redeemable noncontrolling interests	—		—		—		4		—		4
Net income attributable to the noncontrolling interests	—		—		—		(14)		—		(14)
Net income (loss) attributable to SBG	$	84	$	(30)	$	125	$	147	$	(242)	$	84
Comprehensive income (loss)	$	84	$	(24)	$	125	$	157	$	(242)	$	100

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Net revenue	$	—	$	40	$	1,611	$	577	$	(103)	$	2,125
Media programming and production expenses	—		2		745		448		(34)		1,161
Selling, general and administrative expenses	6		86		405		69		(66)		500
Gain on deconsolidation of subsidiary	(3,357)		—		—		—		—		(3,357)
Depreciation, amortization and other operating expenses	1		3		168		82		(6)		248
Total operating (gains) expenses	(3,350)		91		1,318		599		(106)		(1,448)
Operating income (loss)	3,350		(51)		293		(22)		3		3,573
Equity in (loss) earnings of consolidated subsidiaries	(50)		219		—		—		(169)		—
Interest expense	(4)		(97)		(1)		(79)		12		(169)
Other income (expense)	10		(1)		3		(153)		(6)		(147)
Total other (expense) income	(44)		121		2		(232)		(163)		(316)
Income tax (provision) benefit	(730)		30		(74)		127		—		(647)
Net income (loss)	2,576		100		221		(127)		(160)		2,610
Net income attributable to the redeemable noncontrolling interests	—		—		—		(9)		—		(9)
Net income attributable to the noncontrolling interests	—		—		—		(25)		—		(25)
Net income (loss) attributable to Old Sinclair	$	2,576	$	100	$	221	$	(161)	$	(160)	$	2,576
Comprehensive income (loss)	$	2,576	$	100	$	221	$	(124)	$	(160)	$	2,613

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(74)	$	(115)	$	91	$	221	$	(1)	$	122
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	—		(2)		(38)		(2)		1		(41)
Purchases of investments	(4)		—		(21)		(12)		—		(37)
Distributions from investments	196		—		—		8		—		204
Other, net	—		—		3		1		—		4
Net cash flows from (used in) investing activities	192		(2)		(56)		(5)		1		130
NET CASH FLOWS USED IN FINANCING ACTIVITIES
Repayments of notes payable, commercial bank financing and finance leases	—		(33)		(3)		(1)		—		(37)
Repurchase of outstanding Old Sinclair Class A Common Stock	(153)		—		—		—		—		(153)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(18)		—		—		—		—		(18)
Redemption of redeemable subsidiary preferred equity	—		—		—		(190)		—		(190)
Distributions to member	(250)		—		—		(110)		—		(360)
Distributions to noncontrolling interests	—		—		—		(7)		—		(7)
Increase (decrease) in intercompany payables	259		(232)		(33)		6		—		—
Other, net	(3)		—		—		—		—		(3)
Net cash flows used in financing activities	(165)		(265)		(36)		(302)		—		(768)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(47)		(382)		(1)		(86)		—		(516)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	47		750		1		86		—		884
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—	$	368	$	—	$	—	$	—	$	368

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(111)	$	(96)	$	616	$	(206)	$	4	$	207
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	—		(2)		(43)		(2)		2		(45)
Deconsolidation of subsidiary cash	—		—		—		(315)		—		(315)
Purchases of investments	(44)		(1)		(3)		(13)		—		(61)
Distributions from investments	60		—		10		11		—		81
Other, net	—		—		7		4		—		11
Net cash flows from (used in) investing activities	16		(3)		(29)		(315)		2		(329)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing	—		728		—		—		—		728
Repayments of notes payable, commercial bank financing and finance leases	—		(841)		(3)		(1)		—		(845)
Repurchase of outstanding Old Sinclair Class A Common Stock	(104)		—		—		—		—		(104)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(36)		—		—		—		—		(36)
Dividends paid on redeemable subsidiary preferred equity	—		—		—		(3)		—		(3)
Distributions to noncontrolling interests	—		—		—		(5)		—		(5)
Increase (decrease) in intercompany payables	269		248		(585)		74		(6)		—
Other, net	(4)		(8)		—		—		—		(12)
Net cash flows from (used in) financing activities	125		127		(588)		65		(6)		(277)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	30		28		(1)		(456)		—		(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	2		316		2		499		—		819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	32	$	344	$	1	$	43	$	—	$	420

XML

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (89)	$ (11)	$ 96	$ 2,576

XML

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations

Nature of Operations

Sinclair, Inc. ("Sinclair") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks and professional sports. Additionally, we own digital media companies that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage, and/or operate technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

Principles of Consolidation and Interim Financial Statements

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner's proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs.

Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees.

Interim Financial Statements

The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements.

Broadcast Television Programming

Broadcast Television Programming

We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to three years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows.

Revenue Recognition

Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations.

Income Taxes

Income Taxes

Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

Our effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. Our effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

Reclassifications

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

Variable Interest Entities

Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational, and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational, and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.

Other VIEs 

We have several investments in entities which are considered VIEs. However, we do not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.

Fair Value Measurements

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

XML

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

Nature of Operations

Nature of Operations

Sinclair, Inc. ("Sinclair") is a diversified media company with national reach and a strong focus on providing high-quality content on our local television stations, digital platforms, and, prior to the Deconsolidation (as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC), regional sports networks. The content, distributed through our broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by us and our owned networks and professional sports. Additionally, we own digital media companies that are complementary to our extensive portfolio of television station related digital properties and we have interests in, own, manage, and/or operate technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

Principles of Consolidation and Interim Financial Statements

Principles of Consolidation

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries, and VIEs for which we are the primary beneficiary. Noncontrolling interests represent a minority owner's proportionate share of the equity in certain of our consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of our control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities for more information on our VIEs.

Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees.

Interim Financial Statements

The consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the Securities and Exchange Commission (the "SEC"), the consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. The consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on our consolidated financial statements.

Broadcast Television Programming

Broadcast Television Programming

We have agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to three years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. We assess our program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, we amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

We have determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in our consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in our consolidated statements of cash flows.

Revenue Recognition

Distribution Revenue. We have agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). We generate distribution revenue through fees received from these Distributors for the right to distribute our stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions within our broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. We record deferred revenue when cash payments are received or due in advance of our performance, including amounts which are refundable. We classify deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in our consolidated balance sheets based on the timing of when we expect to satisfy our performance obligations.

Income Taxes

Income Taxes

Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. We provide a valuation allowance for deferred tax assets if we determine that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating our ability to realize net deferred tax assets, we consider all available evidence, both positive and negative, including our past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, we must make certain judgments that are based on the plans and estimates used to manage our underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

Our effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. Our effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). Our effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

Reclassifications

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

Variable Interest Entities

Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational, and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational, and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation.

Other VIEs 

We have several investments in entities which are considered VIEs. However, we do not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs.

Fair Value Measurements

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

Sinclair Broadcast Group, LLC

Nature of Operations

Nature of Operations

Sinclair Broadcast Group, LLC ("SBG"), a Maryland limited liability company and a wholly owned subsidiary of Sinclair, Inc. ("Sinclair"), is a diversified media company with national reach and a strong focus on providing high-quality content on SBG's local television stations, digital properties, and regional sports networks (prior to the Deconsolidation, as defined below in Deconsolidation of Diamond Sports Intermediate Holdings LLC). The content, distributed through SBG's broadcast platform and third-party platforms, consists of programming provided by third-party networks and syndicators, local news, other original programming produced by SBG and SBG owned networks, and, prior to the Deconsolidation, college and professional sports. Additionally, prior to the Reorganization (as defined below in Company Reorganization), SBG had interests in, owned, managed, and/or operated Tennis Channel, digital media companies, technical and software services companies, research and development companies for the advancement of broadcast technology, and other media and non-media related businesses and assets, including real estate, venture capital, private equity, and direct investments.

Principles of Consolidation and Interim Financial Statements

Principles of Consolidation

The consolidated financial statements include SBG's accounts and those of SBG's wholly-owned and majority-owned subsidiaries, and VIEs for which SBG is the primary beneficiary. Noncontrolling interests represent a minority owner’s proportionate share of the equity in certain of SBG's consolidated entities. Noncontrolling interests which may be redeemed by the holder, and the redemption is outside of SBG's control, are presented as redeemable noncontrolling interests. All intercompany transactions and account balances have been eliminated in consolidation.

SBG consolidates VIEs when SBG is the primary beneficiary. SBG is the primary beneficiary of a VIE when SBG has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 7. Variable Interest Entities for more information on SBG's VIEs.

Investments in entities over which SBG has significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents SBG's proportionate share of net income generated by equity method investees.

Interim Financial Statements

SBG's consolidated financial statements for the three and six months ended June 30, 2023 and 2022 are unaudited. In the opinion of management, such financial statements have been presented on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive (loss) income, consolidated statements of equity and redeemable noncontrolling interests, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements.

As permitted under the applicable rules and regulations of the SEC, SBG's consolidated financial statements do not include all disclosures normally included with audited consolidated financial statements and, accordingly, should be read together with the audited consolidated financial statements and notes thereto in Old Sinclair's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. SBG's consolidated statements of operations presented in the accompanying consolidated financial statements are not necessarily representative of operations for an entire year.

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the consolidated financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In October 2021, the FASB issued guidance to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice. ASU 2021-08 requires that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. SBG adopted this guidance during the first quarter of 2023. The impact of the adoption did not have a material impact on SBG's consolidated financial statements.

Broadcast Television Programming

Broadcast Television Programming

SBG has agreements with programming syndicators for the rights to television programming over contract periods, which generally run from one to seven years. Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet when the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.

The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or fair value. Program contract costs are amortized on a straight-line basis except for contracts greater than three years which are amortized utilizing an accelerated method. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by amortization or fair value adjustments.

Fair value is determined utilizing a discounted cash flow model based on management's expectation of future advertising revenues, net of sales commissions, to be generated by the program material. SBG assesses the program contract costs on a quarterly basis to ensure the costs are recorded at the lower of unamortized cost or fair value.

Sports Programming Rights

Sports Programming Rights

DSIH has multi-year program rights agreements that provide DSIH with the right to produce and telecast professional live sports games within a specified territory in exchange for a rights fee. Prior to the Deconsolidation, SBG amortized these rights as an expense over each season based upon contractually stated rates. Amortization was accelerated in the event that the stated contractual rates over the term of the rights agreement resulted in an expense recognition pattern that was inconsistent with the projected growth of revenue over the contractual term.

The National Basketball Association ("NBA") and the National Hockey League ("NHL") postponed games in the fourth quarter of 2021 and rescheduled these games to be played in the first quarter of 2022. The sports rights expense associated with these seasons was recognized over the modified term of these seasons.

Hedge Accounting

SBG has determined that the interest rate swap meets the criteria for hedge accounting. The initial value of the interest rate swap and any changes in value in subsequent periods is included in accumulated other comprehensive income, with a corresponding change recorded in assets or liabilities depending on the position of the swap. Gains or losses on the monthly settlement of the interest rate swap are reflected in interest expense in SBG's consolidated statements of operations. Cash flows related to the interest rate swap are classified as operating activities in SBG's consolidated statements of cash flows.

Revenue Recognition

Distribution Revenue. SBG has agreements with multi-channel video programming distributors ("MVPD") and virtual MVPDs ("vMVPD," and together with MVPDs, "Distributors"). SBG generates distribution revenue through fees received from these Distributors for the right to distribute SBG's stations, other properties, and, prior to the Deconsolidation, RSNs. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal or network programming is provided to SBG's customers (as usage occurs) which corresponds with the satisfaction of SBG's performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. SBG's customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 120 days. Historical adjustments to subscriber estimates have not been material.

Advertising Revenue. SBG generates advertising revenue primarily from the sale of advertising spots/impressions within broadcast television, digital platforms, and, prior to the Deconsolidation, RSNs.

In accordance with ASC 606, SBG does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty.

Deferred Revenue. SBG records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. SBG classifies deferred revenue as either current in other current liabilities or long-term in other long-term liabilities in SBG's consolidated balance sheets based on the timing of when SBG expects to satisfy performance obligations.

Income Taxes

Income Taxes

SBG's (provision) benefit for taxes and deferred tax balances have been calculated on a separate return basis as if SBG filed its own tax returns, although its operations are included in the Sinclair consolidated tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if SBG were a separate taxpayer and a standalone enterprise.

SBG's income tax provision for all periods consists of federal and state income taxes. The tax provision for the three and six months ended June 30, 2023 and 2022 is based on the estimated effective tax rate applicable for the full year after taking into account discrete tax items and the effects of the noncontrolling interests. SBG provides a valuation allowance for deferred tax assets if it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. In evaluating SBG's ability to realize net deferred tax assets, SBG considers all available evidence, both positive and negative, including past operating results, tax planning strategies, current and cumulative losses, and forecasts of future taxable income. In considering these sources of taxable income, SBG must make certain judgments that are based on the plans and estimates used to manage SBG's underlying businesses on a long-term basis. A valuation allowance has been provided for deferred tax assets related to a substantial amount of SBG's available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary basis differences, alternative tax strategies and projected future taxable income.

SBG's effective income tax rate for the three months ended June 30, 2023 was less than the statutory rate primarily due to non-deductible expenses. SBG's effective income tax rate for the six months ended June 30, 2023 was greater than the statutory rate primarily due to a release of valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j). SBG's effective income tax rate for the three months ended June 30, 2022 was greater than the statutory rate primarily due to an increase in valuation allowance on deferred tax assets relating to deductibility of interest expense under the IRC Section 163(j).

Reclassifications

Reclassifications

Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation.

Variable Interest Entities

Certain of SBG's stations provide services to other station owners within the same respective market through agreements, such as LMAs, where SBG provides programming, sales, operational, and administrative services, and JSAs and SSAs, where SBG provides non-programming, sales, operational, and administrative services. In certain cases, SBG has also entered into purchase agreements or options to purchase the license related assets of the licensee. SBG typically owns the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with SBG's acquisition of the non-license assets of the station, SBG has provided guarantees to the bank for the licensee's acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of SBG's investment in the stations, SBG is the primary beneficiary when, subject to the ultimate control of the licensees, SBG has the power to direct the activities which significantly impact the economic performance of the VIE through the services SBG provides and SBG absorbs losses and returns that would be considered significant to the VIEs. The fees paid between SBG and the licensees pursuant to these arrangements are eliminated in consolidation.

Other VIEs 

Prior to the Reorganization, SBG had several investments in entities which are considered VIEs. However, SBG did not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow SBG to control the entity, and therefore, SBG was not considered the primary beneficiary of these VIEs. SBG's investments in these VIEs for which SBG was not the primary beneficiary were transferred to Ventures as part of the Reorganization.

Fair Value Measurements

Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect the reporting entity's own assumptions.

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Disaggregation of Revenue

The following table presents our revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	372	$	46	$	—	$	—	$	418
Advertising revenue	293		14		6		(4)		309
Other media, non-media, and intercompany revenues	34		—		8		(1)		41
Total revenues	$	699	$	60	$	14	$	(5)	$	768
For the six months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	753	$	91	$	—	$	—	$	844
Advertising revenue	589		23		12		(6)		618
Other media, non-media, and intercompany revenues	62		1		19		(3)		79
Total revenues	$	1,404	$	115	$	31	$	(9)	$	1,541
For the three months ended June 30, 2022	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	—	$	430
Advertising revenue	343		11		13		(1)		366
Other media, non-media, and intercompany revenues	32		2		14		(7)		41
Total revenues	$	760	$	58	$	27	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Tennis		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	92	$	433	$	—	$	—	$	1,303
Advertising revenue	656		19		44		27		(9)		737
Other media, non-media, and intercompany revenues	80		3		5		30		(33)		85
Total revenues	$	1,514	$	114	$	482	$	57	$	(42)	$	2,125

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OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments	$	130	$	113
Other investments	397		442
Note receivable	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	51		44
Total other assets	$	752	$	964

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Reconciliation of Income (Numerator) and Shares (Denominator) Used in Computation of Diluted Earnings Per Share

The following table reconciles income (numerator) and shares (denominator) used in our computations of basic and diluted earnings per share for the periods presented (in millions, except share amounts which are reflected in thousands):

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2023		2022		2023		2022
Income (Numerator)
Net (loss) income	$	(87)	$	(6)	$	106	$	2,610
Net (income) loss attributable to the redeemable noncontrolling interests	—		(5)		4		(9)
Net income attributable to the noncontrolling interests	(2)		—		(14)		(25)
Numerator for basic and diluted earnings per common share available to common shareholders	$	(89)	$	(11)	$	96	$	2,576
Shares (Denominator)
Basic weighted-average common shares outstanding	64,012		70,897		66,862		71,527
Dilutive effect of stock-settled appreciation rights and outstanding stock options	—		—		85		6
Diluted weighted-average common and common equivalent shares outstanding	64,012		70,897		66,947		71,533

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table shows the weighted-average stock-settled appreciation rights and outstanding stock options (in thousands) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2023	2022	2023	2022
Weighted-average stock-settled appreciation rights and outstanding stock options excluded	3,693	3,645	3,645	3,095

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SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Financial Information

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations		Consolidated
Assets	$	4,315	$	309	$	1,577	$	—	$	6,201

For the three months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	699	(b)	$	60	$	14	$	(5)	(a)	$	768
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			5		1		—			73
Amortization of program contract costs	19			—		—		—			19
Corporate general and administrative expenses	46			—		16		—			62
(Gain) loss on asset dispositions and other, net of impairment	(2)			—		7		—			5
Operating income (loss)	22			3		(28)		—			(3)
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		—			76
Loss from equity method investments	—			—		(1)		—			(1)

For the six months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	115	$	31	$	(9)	(a)	$	1,541
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		3		(1)			138
Amortization of program contract costs	41			—		—		—			41
Corporate general and administrative expenses	78			—		42		—			120
(Gain) loss on asset dispositions and other, net of impairment	(3)			—		14		—			11
Operating income (loss)	63			21		(66)		—			18
Interest expense including amortization of debt discount and deferred financing costs	150			—		—		—			150
Income from equity method investments	—			—		30		—			30

For the three months ended June 30, 2022	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	58	$	27	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			5		2		(1)			67
Amortization of program contract costs	21			—		—		—			21
Corporate general and administrative expenses	34			—		4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—		—			(4)
Operating income (loss)	116			—		(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			—		3		(3)			54
Income from equity method investments	—			—		3		—			3

For the six months ended June 30, 2022	Local Media			Tennis		Local Sports (c)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	114	$	482	$	57	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			10		54		4		(2)			188
Amortization of sports programming rights	—			—		326		—		—			326
Amortization of program contract costs	46			—		—		—		—			46
Corporate general and administrative expenses	77			—		1		7		—			85
Gain on deconsolidation of subsidiary	—			—		—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		—		(1)		—			(9)
Operating income (loss)	211			24		(4)		3,342		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			—		72		6		(8)			169
Income from equity method investments	—			—		10		5		—			15

(a)Includes $2 million and $3 million for the three and six months ended June 30, 2023, respectively, and $3 million and $10 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by other to local media, which is eliminated in consolidation; $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation; and $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to local media from tennis, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Carrying Value and Fair Value of Notes and Debentures

The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities	N/A		$	5	N/A		$	6
Money market funds	N/A		523		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a)	N/A		123		N/A		153
Interest rate swap (b)	N/A		8		N/A		—
STG (c):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (c)	7		7		8		8
Debt of non-media subsidiaries (c)	16		16		16		16
Level 3:
Investments in equity securities (d)	N/A		58		N/A		75

N/A - Not applicable

(a)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(d)On November 18, 2020, we entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 we recorded a fair value adjustment loss of $17 million and during the three and six months ended June 30, 2022 we recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.

Schedule of Changes in Level 3 Financial Liabilities Measured on Recurring Basis

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(17)		Measurement adjustments	(17)
Fair value at June 30, 2023	$	58	Fair value at June 30, 2023	$	58

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Segment data

Schedule of Disaggregation of Revenue

The following table presents our revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	372	$	46	$	—	$	—	$	418
Advertising revenue	293		14		6		(4)		309
Other media, non-media, and intercompany revenues	34		—		8		(1)		41
Total revenues	$	699	$	60	$	14	$	(5)	$	768
For the six months ended June 30, 2023	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	753	$	91	$	—	$	—	$	844
Advertising revenue	589		23		12		(6)		618
Other media, non-media, and intercompany revenues	62		1		19		(3)		79
Total revenues	$	1,404	$	115	$	31	$	(9)	$	1,541
For the three months ended June 30, 2022	Local Media		Tennis		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	—	$	430
Advertising revenue	343		11		13		(1)		366
Other media, non-media, and intercompany revenues	32		2		14		(7)		41
Total revenues	$	760	$	58	$	27	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Tennis		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	92	$	433	$	—	$	—	$	1,303
Advertising revenue	656		19		44		27		(9)		737
Other media, non-media, and intercompany revenues	80		3		5		30		(33)		85
Total revenues	$	1,514	$	114	$	482	$	57	$	(42)	$	2,125

Sinclair Broadcast Group, LLC

Segment data

Schedule of Disaggregation of Revenue

The following table presents SBG's revenue disaggregated by type and segment (in millions):

For the three months ended June 30, 2023	Local Media		Other		Eliminations		Total
Distribution revenue	$	372	$	31	$	—	$	403
Advertising revenue	293		13		(3)		303
Other media, non-media, and intercompany revenues	34		3		—		37
Total revenues	$	699	$	47	$	(3)	$	743
For the six months ended June 30, 2023	Local Media		Other		Eliminations		Total
Distribution revenue	$	753	$	76	$	—	$	829
Advertising revenue	589		29		(5)		613
Other media, non-media, and intercompany revenues	62		14		(2)		74
Total revenues	$	1,404	$	119	$	(7)	$	1,516
For the three months ended June 30, 2022	Local Media		Other		Eliminations		Total
Distribution revenue	$	385	$	45	$	—	$	430
Advertising revenue	343		25		(2)		366
Other media, non-media, and intercompany revenues	32		15		(6)		41
Total revenues	$	760	$	85	$	(8)	$	837
For the six months ended June 30, 2022	Local Media		Local Sports		Other		Eliminations		Total
Distribution revenue	$	778	$	433	$	92	$	—	$	1,303
Advertising revenue	656		44		47		(10)		737
Other media, non-media, and intercompany revenues	80		5		32		(32)		85
Total revenues	$	1,514	$	482	$	171	$	(42)	$	2,125

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OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Equity Method Investments [Line Items]

Schedule of Other Assets

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments	$	130	$	113
Other investments	397		442
Note receivable	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	51		44
Total other assets	$	752	$	964

Sinclair Broadcast Group, LLC

Schedule of Equity Method Investments [Line Items]

Schedule of Other Assets

Other assets as of June 30, 2023 and December 31, 2022 consisted of the following (in millions):

	As of June 30, 2023		As of December 31, 2022
Equity method investments (a)	$	1	$	113
Other investments (a)	26		442
Note receivable (a)	—		193
Income tax receivable	131		131
Post-retirement plan assets	43		41
Other	54		44
Total other assets	$	255	$	964

(a)The note receivable and certain of the equity method and other investments were transferred to Ventures as part of the Reorganization.

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SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2023

Segment data

Schedule of Segment Financial Information

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Tennis		Other & Corporate		Eliminations		Consolidated
Assets	$	4,315	$	309	$	1,577	$	—	$	6,201

For the three months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	699	(b)	$	60	$	14	$	(5)	(a)	$	768
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			5		1		—			73
Amortization of program contract costs	19			—		—		—			19
Corporate general and administrative expenses	46			—		16		—			62
(Gain) loss on asset dispositions and other, net of impairment	(2)			—		7		—			5
Operating income (loss)	22			3		(28)		—			(3)
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		—			76
Loss from equity method investments	—			—		(1)		—			(1)

For the six months ended June 30, 2023	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	115	$	31	$	(9)	(a)	$	1,541
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		3		(1)			138
Amortization of program contract costs	41			—		—		—			41
Corporate general and administrative expenses	78			—		42		—			120
(Gain) loss on asset dispositions and other, net of impairment	(3)			—		14		—			11
Operating income (loss)	63			21		(66)		—			18
Interest expense including amortization of debt discount and deferred financing costs	150			—		—		—			150
Income from equity method investments	—			—		30		—			30

For the three months ended June 30, 2022	Local Media			Tennis		Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	58	$	27	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			5		2		(1)			67
Amortization of program contract costs	21			—		—		—			21
Corporate general and administrative expenses	34			—		4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—		—			(4)
Operating income (loss)	116			—		(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			—		3		(3)			54
Income from equity method investments	—			—		3		—			3

For the six months ended June 30, 2022	Local Media			Tennis		Local Sports (c)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	114	$	482	$	57	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			10		54		4		(2)			188
Amortization of sports programming rights	—			—		326		—		—			326
Amortization of program contract costs	46			—		—		—		—			46
Corporate general and administrative expenses	77			—		1		7		—			85
Gain on deconsolidation of subsidiary	—			—		—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		—		(1)		—			(9)
Operating income (loss)	211			24		(4)		3,342		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			—		72		6		(8)			169
Income from equity method investments	—			—		10		5		—			15

(a)Includes $2 million and $3 million for the three and six months ended June 30, 2023, respectively, and $3 million and $10 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by other to local media, which is eliminated in consolidation; $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation; and $1 million and $2 million for the three and six months ended June 30, 2023, respectively, and $1 million and $2 million for the three and six months ended June 30, 2022, respectively, of intercompany revenue related to certain services provided to local media from tennis, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

Sinclair Broadcast Group, LLC

Segment data

Schedule of Segment Financial Information

Segment financial information is included in the following tables for the periods presented (in millions):

As of June 30, 2023	Local Media		Other & Corporate		Eliminations		Consolidated
Assets	$	4,349	$	645	$	—	$	4,994

For the three months ended June 30, 2023	Local Media			Other & Corporate (c)		Eliminations		Consolidated
Revenue	$	699	(b)	$	47	$	(3)	$	743
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	67			3		—		70
Amortization of program contract costs	19			—		—		19
Corporate general and administrative expenses	46			12		—		58
(Gain) loss on asset dispositions and other, net of impairment	(2)			6		—		4
Operating income (loss)	22			(18)		—		4
Interest expense including amortization of debt discount and deferred financing costs	76			—		—		76

For the six months ended June 30, 2023	Local Media			Other & Corporate (c)		Eliminations			Consolidated
Revenue	$	1,404	(b)	$	119	$	(7)	(a)	$	1,516
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	126			10		(1)			135
Amortization of program contract costs	41			—		—			41
Corporate general and administrative expenses	78			38		—			116
(Gain) loss on asset dispositions and other, net of impairment	(3)			13		—			10
Operating income (loss)	63			(38)		—			25
Interest expense including amortization of debt discount and deferred financing costs	150			—		—			150
Income from equity method investments	—			31		—			31

For the three months ended June 30, 2022	Local Media			Other & Corporate		Eliminations			Consolidated
Revenue	$	760	(b)	$	85	$	(8)	(a)	$	837
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	61			7		(1)			67
Amortization of program contract costs	21			—		—			21
Corporate general and administrative expenses	34			4		—			38
Gain on asset dispositions and other, net of impairment	(4)			—		—			(4)
Operating income (loss)	116			(9)		—			107
Interest expense including amortization of debt discount and deferred financing costs	54			3		(3)			54
Income from equity method investments	—			3		—			3

For the six months ended June 30, 2022	Local Media			Local Sports (d)		Other & Corporate		Eliminations			Consolidated
Revenue	$	1,514	(b)	$	482	$	171	$	(42)	(a)	$	2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets	122			54		14		(2)			188
Amortization of sports programming rights	—			326		—		—			326
Amortization of program contract costs	46			—		—		—			46
Corporate general and administrative expenses	77			1		7		—			85
Gain on deconsolidation of subsidiary	—			—		(3,357)		—			(3,357)
Gain on asset dispositions and other, net of impairment	(8)			—		(1)		—			(9)
Operating income (loss)	211			(4)		3,366		—			3,573
Interest expense including amortization of debt discount and deferred financing costs	99			72		6		(8)			169
Income from equity method investments	—			10		5		—			15

(a)Includes $1 million for the six months ended June 30, 2023, and $1 million and $25 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media to other and local sports, which is eliminated in consolidation.

(b)Includes $14 million and $24 million for the three and six months ended June 30, 2023, respectively, and $10 million and $15 million for the three and six months ended June 30, 2022, respectively, of revenue for services provided by local media under management services agreements after the Deconsolidation, which is not eliminated in consolidation. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(c)Represents the activity in tennis, non-broadcast digital and internet solutions, technical services, and non-media investments (collectively, other) prior to the Reorganization on June 1, 2023 and the activity in corporate prior and subsequent to the Reorganization. See Company Reorganization within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

(d)Represents the activity prior to the Deconsolidation on March 1, 2022. See Deconsolidation of Diamond Sports Intermediate Holdings LLC within Note 1. Nature of Operations and Summary of Significant Accounting Policies.

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VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2023

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

Sinclair Broadcast Group, LLC

Variable Interest Entity [Line Items]

Schedule of Variable Interest Entities

The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in SBG's consolidated balance sheets as of the dates presented, were as follows (in millions):

	As of June 30, 2023		As of December 31, 2022
ASSETS
Current assets:
Accounts receivable, net	$	15	$	47
Other current assets	1		3
Total current assets	16		50
Property and equipment, net	11		10
Goodwill and indefinite-lived intangible assets	15		15
Definite-lived intangible assets, net	36		40
Total assets	$	78	$	115
LIABILITIES
Current liabilities:
Other current liabilities	$	13	$	15
Long-term liabilities:
Notes payable, finance leases and commercial bank financing, less current portion	6		7
Program contracts payable, less current portion	—		1
Other long-term liabilities	3		3
Total liabilities	$	22	$	26

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

FAIR VALUE MEASUREMENTS:

Schedule of Carrying Value and Fair Value of Notes and Debentures

The following table sets forth the face value and fair value of our financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities	N/A		$	5	N/A		$	6
Money market funds	N/A		523		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a)	N/A		123		N/A		153
Interest rate swap (b)	N/A		8		N/A		—
STG (c):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (c)	7		7		8		8
Debt of non-media subsidiaries (c)	16		16		16		16
Level 3:
Investments in equity securities (d)	N/A		58		N/A		75

N/A - Not applicable

(a)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(b)We entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of our exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and we receive a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(c)Amounts are carried in our consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(d)On November 18, 2020, we entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 we recorded a fair value adjustment loss of $17 million and during the three and six months ended June 30, 2022 we recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share.

Schedule of Changes in Level 3 Financial Liabilities Measured on Recurring Basis

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(17)		Measurement adjustments	(17)
Fair value at June 30, 2023	$	58	Fair value at June 30, 2023	$	58

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

Sinclair Broadcast Group, LLC

FAIR VALUE MEASUREMENTS:

Schedule of Carrying Value and Fair Value of Notes and Debentures

The following table sets forth the face value and fair value of SBG's financial assets and liabilities for the periods presented (in millions):

	As of June 30, 2023				As of December 31, 2022
	Face Value		Fair Value		Face Value		Fair Value
Level 1:
Investments in equity securities (a)	N/A		$	—	N/A		$	6
Money market funds	N/A		348		N/A		741
Deferred compensation assets	$	43	43		$	41	41
Deferred compensation liabilities	40		40		35		35
Level 2:
Investments in equity securities (a) (b)	N/A		—		N/A		153
Interest rate swap (c)	N/A		8		N/A		—
STG (d):
5.500% Senior Notes due 2030	485		281		500		347
5.125% Senior Notes due 2027	278		237		282		230
4.125% Senior Secured Notes due 2030	737		487		750		560
Term Loan B-2, due September 30, 2026	1,251		1,110		1,258		1,198
Term Loan B-3, due April 1, 2028	725		584		729		692
Term Loan B-4, due April 21, 2029	743		559		746		709
Debt of variable interest entities (d)	7		7		8		8
Debt of non-media subsidiaries (a) (d)	—		—		16		16
Level 3:
Investments in equity securities (a) (e)	N/A		—		N/A		75

N/A - Not applicable

(a)The debt of non-media subsidiaries and the investments in equity securities were transferred to Ventures as part of the Reorganization.

(b)Consists of warrants to acquire marketable common equity securities. The fair value of the warrants are derived from the quoted trading prices of the underlying common equity securities less the exercise price.

(c)SBG entered into an interest rate swap effective February 7, 2023 and terminating on February 28, 2026 in order to manage a portion of SBG's exposure to variable interest rates. The swap agreement has a notional amount of $600 million, bears a fixed interest rate of 3.9%, and SBG receives a floating rate of interest based on SOFR. The fair value of the interest rate swap was an asset as of June 30, 2023. See Hedge Accounting within Note 1. Nature of Operations and Summary of Significant Accounting Policies and Interest Rate Swap within Note 3. Notes Payable, Finance Leases, and Commercial Bank Financing.

(d)Amounts are carried in SBG's consolidated balance sheets net of debt discount, premium, and deferred financing cost, which are excluded in the above table, of $51 million and $56 million as of June 30, 2023 and December 31, 2022, respectively.

(e)On November 18, 2020, SBG entered into a commercial agreement with Bally's and received warrants and options to acquire common equity in the business. During both the three and six months ended June 30, 2023 SBG recorded a fair value adjustment loss of $25 million and during the three and six months ended June 30, 2022 SBG recorded fair value adjustment losses of $74 million and $130 million, respectively, related to these interests. The fair value of the warrants is primarily derived from the quoted trading prices of the underlying common equity. The fair value of the options is derived utilizing the Black Scholes valuation model. The most significant inputs include the trading price of the underlying common stock and the exercise price of the options, which range from $30 to $45 per share. The warrants and options were transferred to Ventures as part of the Reorganization.

Schedule of Changes in Level 3 Financial Liabilities Measured on Recurring Basis

The following table summarizes the changes in financial assets measured at fair value on a recurring basis and categorized as Level 3 under the fair value hierarchy for the three and six months ended June 30, 2023 and 2022 (in millions):

Options and Warrants
Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
Fair value at March 31, 2023	$	75	Fair value at December 31, 2022	$	75
Measurement adjustments	(25)		Measurement adjustments	(25)
Transfer to Ventures	(50)		Transfer to Ventures	(50)
Fair value at June 30, 2023	$	—	Fair value at June 30, 2023	$	—

Options and Warrants
Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
Fair value at March 31, 2022	$	226	Fair value at December 31, 2021	$	282
Measurement adjustments	(74)		Measurement adjustments	(130)
Fair value at June 30, 2022	$	152	Fair value at June 30, 2022	$	152

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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) - Sinclair Broadcast Group, LLC

6 Months Ended

Jun. 30, 2023

Schedule of Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Cash and cash equivalents	$	—	$	368	$	—	$	—	$	—	$	368
Accounts receivable, net	—		1		526		17		—		544
Other current assets	18		55		94		2		(17)		152
Total current assets	18		424		620		19		(17)		1,064
Property and equipment, net	16		14		644		17		(2)		689
Investment in equity of consolidated subsidiaries	274		3,144		—		—		(3,418)		—
Goodwill	—		—		2,015		1		—		2,016
Indefinite-lived intangible assets	—		—		109		14		—		123
Definite-lived intangible assets, net	—		—		707		36		(28)		715
Other long-term assets	92		987		638		119		(1,449)		387
Total assets	$	400	$	4,569	$	4,733	$	206	$	(4,914)	$	4,994
Accounts payable and accrued liabilities	$	5	$	101	$	266	$	8	$	(2)	$	378
Current portion of long-term debt	—		27		6		4		(1)		36
Other current liabilities	4		2		114		21		(17)		124
Total current liabilities	9		130		386		33		(20)		538
Long-term debt	—		4,142		22		10		(4)		4,170
Other long-term liabilities	802		56		1,183		166		(1,449)		758
Total liabilities	811		4,328		1,591		209		(1,473)		5,466
Total SBG (deficit) equity	(411)		241		3,142		62		(3,445)		(411)
Noncontrolling interests in consolidated subsidiaries	—		—		—		(65)		4		(61)
Total liabilities and equity	$	400	$	4,569	$	4,733	$	206	$	(4,914)	$	4,994

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2022

(in millions)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Cash and cash equivalents	$	47	$	750	$	1	$	86	$	—	$	884
Accounts receivable, net	—		—		555		57		—		612
Other current assets	32		42		159		19		(65)		187
Total current assets	79		792		715		162		(65)		1,683
Property and equipment, net	—		31		668		51		(22)		728
Investment in equity of consolidated subsidiaries	1,093		3,463		—		—		(4,556)		—
Goodwill	—		—		2,081		7		—		2,088
Indefinite-lived intangible assets	—		—		136		14		—		150
Definite-lived intangible assets, net	—		—		935		42		(31)		946
Other long-term assets	411		938		512		573		(1,325)		1,109
Total assets	$	1,583	$	5,224	$	5,047	$	849	$	(5,999)	$	6,704
Accounts payable and accrued liabilities	$	—	$	80	$	300	$	18	$	(1)	$	397
Current portion of long-term debt	—		28		6		5		(1)		38
Other current liabilities	4		8		139		87		(65)		173
Total current liabilities	4		116		445		110		(67)		608
Long-term debt	—		4,181		24		26		(4)		4,227
Other long-term liabilities	831		52		1,120		314		(1,323)		994
Total liabilities	835		4,349		1,589		450		(1,394)		5,829
Redeemable noncontrolling interests	—		—		—		194		—		194
Total Old Sinclair equity	748		875		3,458		275		(4,608)		748
Noncontrolling interests in consolidated subsidiaries	—		—		—		(70)		3		(67)
Total liabilities, redeemable noncontrolling interests, and equity	$	1,583	$	5,224	$	5,047	$	849	$	(5,999)	$	6,704

Schedule of Condensed Consolidating Statement of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Net revenue	$	—	$	15	$	713	$	33	$	(18)	$	743
Media programming and production expenses	—		4		377		27		(11)		397
Selling, general and administrative expenses	13		49		181		4		(5)		242
Depreciation, amortization and other operating expenses	1		1		85		15		(2)		100
Total operating expenses	14		54		643		46		(18)		739
Operating (loss) income	(14)		(39)		70		(13)		—		4
Equity in (loss) earnings of consolidated subsidiaries	(88)		54		—		—		34		—
Interest expense	—		(75)		—		2		(3)		(76)
Other (expense) income	(1)		17		—		(69)		—		(53)
Total other (expense) income	(89)		(4)		—		(67)		31		(129)
Income tax benefit (provision)	2		19		(15)		20		—		26
Net (loss) income	(101)		(24)		55		(60)		31		(99)
Net income attributable to the noncontrolling interests	—		—		—		(2)		—		(2)
Net (loss) income attributable to SBG	$	(101)	$	(24)	$	55	$	(62)	$	31	$	(101)
Comprehensive (loss) income	$	(101)	$	(15)	$	55	$	(60)	$	31	$	(90)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Net revenue	$	—	$	11	$	820	$	46	$	(40)	$	837
Media programming and production expenses	—		2		383		36		(18)		403
Selling, general and administrative expenses	3		38		206		6		(20)		233
Depreciation, amortization and other operating expenses	1		1		84		12		(4)		94
Total operating expenses	4		41		673		54		(42)		730
Operating (loss) income	(4)		(30)		147		(8)		2		107
Equity in (loss) earnings of consolidated subsidiaries	(12)		119		—		—		(107)		—
Interest expense	—		(53)		—		(4)		3		(54)
Other income (expense)	6		(2)		—		(103)		—		(99)
Total other (expense) income	(6)		64		—		(107)		(104)		(153)
Income tax (provision) benefit	(1)		10		(27)		58		—		40
Net (loss) income	(11)		44		120		(57)		(102)		(6)
Net income attributable to the redeemable noncontrolling interests	—		—		—		(5)		—		(5)
Net (loss) income attributable to Old Sinclair	$	(11)	$	44	$	120	$	(62)	$	(102)	$	(11)
Comprehensive (loss) income	$	(11)	$	44	$	120	$	(57)	$	(102)	$	(6)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
Net revenue	$	—	$	25	$	1,452	$	76	$	(37)	$	1,516
Media programming and production expenses	—		7		753		61		(26)		795
Selling, general and administrative expenses	38		84		368		9		(8)		491
Depreciation, amortization and other operating expenses	2		2		167		37		(3)		205
Total operating expenses	40		93		1,288		107		(37)		1,491
Operating (loss) income	(40)		(68)		164		(31)		—		25
Equity in earnings of consolidated subsidiaries	119		123		—		—		(242)		—
Interest expense	—		(148)		(1)		(1)		—		(150)
Other (expense) income	(4)		25		—		(32)		—		(11)
Total other income (expense)	115		—		(1)		(33)		(242)		(161)
Income tax benefit (provision)	9		38		(38)		221		—		230
Net income (loss)	84		(30)		125		157		(242)		94
Net loss attributable to the redeemable noncontrolling interests	—		—		—		4		—		4
Net income attributable to the noncontrolling interests	—		—		—		(14)		—		(14)
Net income (loss) attributable to SBG	$	84	$	(30)	$	125	$	147	$	(242)	$	84
Comprehensive income (loss)	$	84	$	(24)	$	125	$	157	$	(242)	$	100

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
Net revenue	$	—	$	40	$	1,611	$	577	$	(103)	$	2,125
Media programming and production expenses	—		2		745		448		(34)		1,161
Selling, general and administrative expenses	6		86		405		69		(66)		500
Gain on deconsolidation of subsidiary	(3,357)		—		—		—		—		(3,357)
Depreciation, amortization and other operating expenses	1		3		168		82		(6)		248
Total operating (gains) expenses	(3,350)		91		1,318		599		(106)		(1,448)
Operating income (loss)	3,350		(51)		293		(22)		3		3,573
Equity in (loss) earnings of consolidated subsidiaries	(50)		219		—		—		(169)		—
Interest expense	(4)		(97)		(1)		(79)		12		(169)
Other income (expense)	10		(1)		3		(153)		(6)		(147)
Total other (expense) income	(44)		121		2		(232)		(163)		(316)
Income tax (provision) benefit	(730)		30		(74)		127		—		(647)
Net income (loss)	2,576		100		221		(127)		(160)		2,610
Net income attributable to the redeemable noncontrolling interests	—		—		—		(9)		—		(9)
Net income attributable to the noncontrolling interests	—		—		—		(25)		—		(25)
Net income (loss) attributable to Old Sinclair	$	2,576	$	100	$	221	$	(161)	$	(160)	$	2,576
Comprehensive income (loss)	$	2,576	$	100	$	221	$	(124)	$	(160)	$	2,613

Schedule of Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(in millions) (unaudited)

	Sinclair Broadcast Group, LLC		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		SBG Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(74)	$	(115)	$	91	$	221	$	(1)	$	122
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	—		(2)		(38)		(2)		1		(41)
Purchases of investments	(4)		—		(21)		(12)		—		(37)
Distributions from investments	196		—		—		8		—		204
Other, net	—		—		3		1		—		4
Net cash flows from (used in) investing activities	192		(2)		(56)		(5)		1		130
NET CASH FLOWS USED IN FINANCING ACTIVITIES
Repayments of notes payable, commercial bank financing and finance leases	—		(33)		(3)		(1)		—		(37)
Repurchase of outstanding Old Sinclair Class A Common Stock	(153)		—		—		—		—		(153)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(18)		—		—		—		—		(18)
Redemption of redeemable subsidiary preferred equity	—		—		—		(190)		—		(190)
Distributions to member	(250)		—		—		(110)		—		(360)
Distributions to noncontrolling interests	—		—		—		(7)		—		(7)
Increase (decrease) in intercompany payables	259		(232)		(33)		6		—		—
Other, net	(3)		—		—		—		—		(3)
Net cash flows used in financing activities	(165)		(265)		(36)		(302)		—		(768)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(47)		(382)		(1)		(86)		—		(516)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	47		750		1		86		—		884
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	—	$	368	$	—	$	—	$	—	$	368

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(in millions) (unaudited)

	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries		Eliminations		Old Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(111)	$	(96)	$	616	$	(206)	$	4	$	207
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	—		(2)		(43)		(2)		2		(45)
Deconsolidation of subsidiary cash	—		—		—		(315)		—		(315)
Purchases of investments	(44)		(1)		(3)		(13)		—		(61)
Distributions from investments	60		—		10		11		—		81
Other, net	—		—		7		4		—		11
Net cash flows from (used in) investing activities	16		(3)		(29)		(315)		2		(329)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing	—		728		—		—		—		728
Repayments of notes payable, commercial bank financing and finance leases	—		(841)		(3)		(1)		—		(845)
Repurchase of outstanding Old Sinclair Class A Common Stock	(104)		—		—		—		—		(104)
Dividends paid on Old Sinclair Class A and Class B Common Stock	(36)		—		—		—		—		(36)
Dividends paid on redeemable subsidiary preferred equity	—		—		—		(3)		—		(3)
Distributions to noncontrolling interests	—		—		—		(5)		—		(5)
Increase (decrease) in intercompany payables	269		248		(585)		74		(6)		—
Other, net	(4)		(8)		—		—		—		(12)
Net cash flows from (used in) financing activities	125		127		(588)		65		(6)		(277)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	30		28		(1)		(456)		—		(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	2		316		2		499		—		819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	32	$	344	$	1	$	43	$	—	$	420

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	3 Months Ended
	Jun. 30, 2023 segment market station channel
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments | segment	2
Number of television stations owned | station	185
Number of markets | market	86
Number of channels | channel	639

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Company Reorganization (Details) - $ / shares	Jun. 30, 2023	Jun. 01, 2023	Dec. 31, 2022
Class A Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Conversion of stock, conversion ratio (in shares)		1
Class B Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Conversion of stock, conversion ratio (in shares)		1

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deconsolidation of Diamond Sports Intermediate Holdings LLC (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Mar. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gain on deconsolidation of subsidiary	$ 3,357	$ 0	$ 0	$ 0	$ 3,357

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Broadcast Television Programming (Details) - Television Programming Contract Rights	6 Months Ended
	Jun. 30, 2023
Minimum
Finite-Lived Intangible Assets [Line Items]
Television programming contract period	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Television programming contract period	3 years
Contract period utilizing accelerated amortization method	3 years

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Hedge Accounting (Details) - Interest Rate Swap	Feb. 07, 2023 USD ($)
Debt Instrument [Line Items]
Notional amount	$ 600,000,000
Fixed interest rate	3.90%

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Leased assets obtained in exchange for new operating lease liabilities	$ 4	$ 7
Leased assets obtained in exchange for new finance lease liabilities		$ 1
Property and equipment purchases	$ 5

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 768	$ 837	$ 1,541	$ 2,125
Distribution revenue
Disaggregation of Revenue [Line Items]
Total revenues	418	430	844	1,303
Advertising revenue
Disaggregation of Revenue [Line Items]
Total revenues	309	366	618	737
Other media, non-media, and intercompany revenues
Disaggregation of Revenue [Line Items]
Total revenues	41	41	79	85
Operating Segments | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	699	760	1,404	1,514
Operating Segments | Tennis
Disaggregation of Revenue [Line Items]
Total revenues	60	58	115	114
Operating Segments | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				482
Operating Segments | Other
Disaggregation of Revenue [Line Items]
Total revenues	14	27	31	57
Operating Segments | Distribution revenue | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	372	385	753	778
Operating Segments | Distribution revenue | Tennis
Disaggregation of Revenue [Line Items]
Total revenues	46	45	91	92
Operating Segments | Distribution revenue | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				433
Operating Segments | Distribution revenue | Other
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Operating Segments | Advertising revenue | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	293	343	589	656
Operating Segments | Advertising revenue | Tennis
Disaggregation of Revenue [Line Items]
Total revenues	14	11	23	19
Operating Segments | Advertising revenue | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				44
Operating Segments | Advertising revenue | Other
Disaggregation of Revenue [Line Items]
Total revenues	6	13	12	27
Operating Segments | Other media, non-media, and intercompany revenues | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	34	32	62	80
Operating Segments | Other media, non-media, and intercompany revenues | Tennis
Disaggregation of Revenue [Line Items]
Total revenues	0	2	1	3
Operating Segments | Other media, non-media, and intercompany revenues | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				5
Operating Segments | Other media, non-media, and intercompany revenues | Other
Disaggregation of Revenue [Line Items]
Total revenues	8	14	19	30
Eliminations
Disaggregation of Revenue [Line Items]
Total revenues	(5)	(8)	(9)	(42)
Eliminations | Distribution revenue
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Eliminations | Advertising revenue
Disaggregation of Revenue [Line Items]
Total revenues	(4)	(1)	(6)	(9)
Eliminations | Other media, non-media, and intercompany revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ (1)	$ (7)	$ (3)	$ (33)

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 191		$ 191		$ 200
Deferred revenue, noncurrent	$ 134		134		$ 144
Deferred revenue, revenue recognized			$ 33	$ 42
Customer Concentration Risk | Revenue Benchmark | Customer One
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	12.00%	11.00%	11.00%	15.00%
Customer Concentration Risk | Revenue Benchmark | Customer Two
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	10.00%	10.00%	10.00%	14.00%
Customer Concentration Risk | Revenue Benchmark | Customer Three
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)				12.00%
Customer Concentration Risk | Accounts Receivable | Customer One
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			11.00%		13.00%
Customer Concentration Risk | Accounts Receivable | Customer Two
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			10.00%
Customer Concentration Risk | Accounts Receivable | Customer Three
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			10.00%

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) $ in Millions	Jun. 30, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Decrease in unrecognized tax benefits is reasonably possible	$ 1

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - USD ($) shares in Millions	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2020	Aug. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock repurchase program, additional authorized repurchase amount		$ 500,000,000	$ 1,000,000,000
Treasury stock, shares acquired (in shares)	8.8
Treasury stock, value acquired	$ 151,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 547,000,000

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Subsequent Events (Details)	Aug. 09, 2023 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share (in dollars per share)	$ 0.25

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OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Equity method investments	$ 130	$ 113
Other investments	397	442
Note receivable	0	193
Income tax receivable	131	131
Post-retirement plan assets	43	41
Other	51	44
Total other assets	$ 752	$ 964

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OTHER ASSETS - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 01, 2022
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments		$ (1,000,000)	$ 3,000,000	$ 30,000,000	$ 15,000,000
Investments in equity securities measured at fair value		186,000,000		186,000,000		$ 234,000,000
Unrealized gain (loss) on FV-NI and NAV investments		(47,000,000)	(105,000,000)	(48,000,000)	(161,000,000)
Equity investments, net of cumulative impairment		14,000,000		14,000,000		18,000,000
Cumulative impairment						7,000,000
Impairment recorded		6,000,000	0	6,000,000	0
Note receivable		0		0		193,000,000
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Schedule of Equity Method Investments [Line Items]
Note receivable		0		0		193,000,000
A/R Facility | Line of Credit Facility
Schedule of Equity Method Investments [Line Items]
Maximum borrowing capacity		50,000,000		50,000,000
A/R Facility | Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Schedule of Equity Method Investments [Line Items]
Cash settlement for related party debt	$ 199,000,000
Fair Value Measured at Net Asset Value Per Share
Schedule of Equity Method Investments [Line Items]
Investments measured at NAV		197,000,000		197,000,000		190,000,000
Unfunded commitments related to investments valued using NAV practical expedient		80,000,000		80,000,000		$ 88,000,000
DSIH
Schedule of Equity Method Investments [Line Items]
Fair value of equity method investments		0	0	0	0		$ 0
Income (loss) from equity method investments		$ 0	$ 0	$ 0	0
YES Network
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments					$ 10,000,000

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NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING (Details)	1 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Feb. 07, 2023 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Borrowings under revolving credit facility exceed total commitments (as a percent)					35.00%
Gain on extinguishment of debt			$ 11,000,000	$ 3,000,000	$ 11,000,000	$ 3,000,000
Consolidated VIEs
Debt Instrument [Line Items]
Consolidated total debt		$ 2,000,000	2,000,000		2,000,000			$ 2,000,000
Interest Rate Swap
Debt Instrument [Line Items]
Notional amount							$ 600,000,000
Fixed interest rate							3.90%
Fair value of interest rate swap		8,000,000	8,000,000		8,000,000
Guarantee Obligations
Debt Instrument [Line Items]
Unconditional and irrevocably guaranteed debt		2,000,000	2,000,000		2,000,000			2,000,000
Provide guarantee of certain obligations		112,000,000	112,000,000		$ 112,000,000
Annual escalations (as a percent)					4.00%
Debt term ( year)					6 years
Affiliated Entity
Debt Instrument [Line Items]
Finance lease liabilities, current		2,000,000	2,000,000		$ 2,000,000			3,000,000
Finance lease liabilities, non-current		6,000,000	6,000,000		6,000,000			$ 6,000,000
5.125% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 3,000,000	$ 3,000,000		$ 3,000,000
Interest rate (as a percent)		5.125%	5.125%		5.125%
Repayments of senior debt		$ 3,000,000
5.125% Senior Notes due 2027 | Senior Notes | Subsequent Event
Debt Instrument [Line Items]
Debt instrument, repurchased face amount	$ 500,000
Interest rate (as a percent)	5.125%
Repayments of senior debt	$ 400,000
5.500% Senior Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 15,000,000	$ 15,000,000		$ 15,000,000
Interest rate (as a percent)		5.50%	5.50%		5.50%
Repayments of senior debt		$ 8,000,000
4.125% Senior Secured Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 13,000,000	$ 13,000,000		$ 13,000,000
Interest rate (as a percent)		4.125%	4.125%		4.125%
Repayments of senior debt		$ 8,000,000
STG Senior Unsecured Notes | Senior Notes
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 11,000,000		$ 11,000,000
Term Loan B-2, due September 30, 2026 | Term Loan | Subsequent Event
Debt Instrument [Line Items]
Repayments of senior debt	800,000
Repaid aggregate principal amount	$ 1,000,000
STG Revolving Credit Facility
Debt Instrument [Line Items]
First lien leverage ratio		4.5	4.5		4.5
Borrowings outstanding		$ 0	$ 0		$ 0

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REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Feb. 10, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Temporary Equity [Line Items]
Dividends accrued during the period		$ 3	$ 3	$ 6
Redeemable subsidiary preferred equity					$ 194
Liquidation preference					$ 198
Aggregate redemption price	$ 190
Unreturned capital contribution, percentage	95.00%
Unreturned capital contribution	$ 175
Redeemable Preferred Stock
Temporary Equity [Line Items]
Redeemed units (in shares)	175,000

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands										1 Months Ended	12 Months Ended
	Jul. 19, 2023 USD ($)	Sep. 21, 2022 USD ($) station	Jul. 28, 2021 USD ($)	Oct. 15, 2020 USD ($)	Sep. 02, 2020 USD ($)	Aug. 19, 2020 USD ($)	Jun. 08, 2020 petition	May 22, 2020 USD ($)	Nov. 06, 2018 lawsuit	Dec. 31, 2017 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2023 USD ($) station	Oct. 03, 2018 broadcaster
Commitments and Contingencies [Line Items]
Number of television stations owned | station												185
Unfavorable Regulatory Action
Commitments and Contingencies [Line Items]
Proposed fine		$ 2,700			$ 9,000					$ 13,000
Proposed fine per station				$ 25	$ 500
Issuance of forfeiture penalty upheld			$ 500
Additional legal expenses accrued											$ 8,000
Number of television stations owned | station		83
Loss contingency, damages sought, total		$ 3,400
Loss contingency accrual												$ 3,400
Unfavorable Regulatory Action | Minimum
Commitments and Contingencies [Line Items]
Proposed fine per station		20
Unfavorable Regulatory Action | Maximum
Commitments and Contingencies [Line Items]
Proposed fine per station		$ 26
Management Services Agreement Misconduct | Subsequent Event
Commitments and Contingencies [Line Items]
Loss contingency, allegations, payments received	$ 1,500,000
Breach of Merger Agreement
Commitments and Contingencies [Line Items]
Agreement to pay to resolve FCC investigation								$ 48,000
Payments to resolve FCC investigation						$ 48,000
Compliance plan term								4 years
Number of petitions filed | petition							2
Various Cases Alleging Violation of Sherman Antitrust Act
Commitments and Contingencies [Line Items]
Loss contingency, new claims filed, number (lawsuit) | lawsuit									22
Loss contingency, number of other broadcasters | broadcaster													13

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EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income (Numerator)
Net (loss) income	$ (87)	$ (6)	$ 106	$ 2,610
Net (income) loss attributable to the redeemable noncontrolling interests	0	(5)	4	(9)
Net income attributable to the noncontrolling interests	(2)	0	(14)	(25)
Net (loss) income attributable to Sinclair Broadcast Group	(89)	(11)	96	2,576
Numerator for diluted earnings per common share available to common shareholders	$ (89)	$ (11)	$ 96	$ 2,576
Shares (Denominator)
Basic weighted-average common shares outstanding (in shares)	64,012	70,897	66,862	71,527
Dilutive effect of stock-settled appreciation rights and outstanding stock options (in shares)	0	0	85	6
Diluted weighted-average common and common equivalent shares outstanding (in shares)	64,012	70,897	66,947	71,533
Antidilutive Securities Excluded from Computation
Weighted-average stock-settled appreciation rights and outstanding stock options excluded (in shares)	3,693	3,645	3,645	3,095

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SEGMENT DATA - Narrative (Details)	3 Months Ended
	Jun. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

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SEGMENT DATA - Segment Financial Information (Details) - USD ($) $ in Millions			3 Months Ended		6 Months Ended
		Mar. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	[2]
Segment data
Assets	[1]		$ 6,201		$ 6,201		$ 6,704
Revenue			768	$ 837	1,541	$ 2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			73	67	138	188
Amortization of sports programming rights					0	326
Amortization of program contract costs			19	21	41	46
Corporate general and administrative expenses			62	38	120	85
Gain on deconsolidation of subsidiary		$ (3,357)	0	0	0	(3,357)
(Gain) loss on asset dispositions and other, net of impairment			5	(4)	11	(9)
Operating income (loss)			(3)	107	18	3,573
Interest expense including amortization of debt discount and deferred financing costs			76	54	150	169
(Loss) income from equity method investments			(1)	3	30	15
Local Media
Segment data
Intersegment revenues				1	1	25
Local Media | Related Party
Segment data
Revenue			14	10	24	15
Tennis
Segment data
Intersegment revenues			1	1	2	2
Operating Segments | Local Media
Segment data
Assets			4,315		4,315
Revenue			699	760	1,404	1,514
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			67	61	126	122
Amortization of sports programming rights						0
Amortization of program contract costs			19	21	41	46
Corporate general and administrative expenses			46	34	78	77
Gain on deconsolidation of subsidiary						0
(Gain) loss on asset dispositions and other, net of impairment			(2)	(4)	(3)	(8)
Operating income (loss)			22	116	63	211
Interest expense including amortization of debt discount and deferred financing costs			76	54	150	99
(Loss) income from equity method investments			0	0	0	0
Operating Segments | Tennis
Segment data
Assets			309		309
Revenue			60	58	115	114
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			5	5	10	10
Amortization of sports programming rights						0
Amortization of program contract costs			0	0	0	0
Corporate general and administrative expenses			0	0	0	0
Gain on deconsolidation of subsidiary						0
(Gain) loss on asset dispositions and other, net of impairment			0	0	0	0
Operating income (loss)			3	0	21	24
Interest expense including amortization of debt discount and deferred financing costs			0	0	0	0
(Loss) income from equity method investments			0	0	0	0
Operating Segments | Local Sports
Segment data
Revenue						482
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets						54
Amortization of sports programming rights						326
Amortization of program contract costs						0
Corporate general and administrative expenses						1
Gain on deconsolidation of subsidiary						0
(Gain) loss on asset dispositions and other, net of impairment						0
Operating income (loss)						(4)
Interest expense including amortization of debt discount and deferred financing costs						72
(Loss) income from equity method investments						10
Other & Corporate
Segment data
Assets			1,577		1,577
Revenue			14	27	31	57
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			1	2	3	4
Amortization of sports programming rights						0
Amortization of program contract costs			0	0	0	0
Corporate general and administrative expenses			16	4	42	7
Gain on deconsolidation of subsidiary						(3,357)
(Gain) loss on asset dispositions and other, net of impairment			7	0	14	(1)
Operating income (loss)			(28)	(9)	(66)	3,342
Interest expense including amortization of debt discount and deferred financing costs			0	3	0	6
(Loss) income from equity method investments			(1)	3	30	5
Intersegment revenues			2	3	3	10
Eliminations
Segment data
Assets			0		0
Revenue			(5)	(8)	(9)	(42)
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			0	(1)	(1)	(2)
Amortization of sports programming rights						0
Amortization of program contract costs			0	0	0	0
Corporate general and administrative expenses			0	0	0	0
Gain on deconsolidation of subsidiary						0
(Gain) loss on asset dispositions and other, net of impairment			0	0	0	0
Operating income (loss)			0	0	0	0
Interest expense including amortization of debt discount and deferred financing costs			0	(3)	0	(8)
(Loss) income from equity method investments			$ 0	$ 0	$ 0	$ 0

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($)			3 Months Ended		6 Months Ended
		May 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Variable Interest Entity [Line Items]
Assets	[1]		$ 6,201,000,000		$ 6,201,000,000		$ 6,704,000,000	[2]
Note receivable			0		0		193,000,000
A/R Facility | Line of Credit Facility
Variable Interest Entity [Line Items]
Maximum borrowing capacity			50,000,000		50,000,000
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Variable Interest Entity [Line Items]
Note receivable			0		$ 0		193,000,000
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party | A/R Facility
Variable Interest Entity [Line Items]
Cash settlement for related party debt		$ 199,000,000
Consolidated VIEs
Variable Interest Entity [Line Items]
Variable interest entities outsourcing agreement initial term					5 years
Assets			78,000,000		$ 78,000,000		115,000,000
Consolidated VIEs | Eliminations
Variable Interest Entity [Line Items]
Liabilities associated with the certain outsourcing agreements and purchase options			130,000,000		130,000,000		130,000,000
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Assets			201,000,000		201,000,000		$ 187,000,000
Gain from related equity investments and other investments			$ 3,000,000	$ 5,000,000	$ 38,000,000	$ 25,000,000

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2023	Dec. 31, 2022
Current assets:
Accounts receivable, net		$ 582	$ 612
Other current assets		190	182
Total current assets		1,506	1,683
Property and equipment, net		715	728
Total assets	[1]	6,201	6,704	[2]
Current liabilities:
Other current liabilities		624	608
Long-term liabilities:
Notes payable, finance leases, and commercial bank financing, less current portion		4,185	4,227
Program contracts payable, less current portion		7	10
Other long-term liabilities		212	220
Total liabilities	[1]	5,560	5,829	[2]
Consolidated VIEs
Current assets:
Accounts receivable, net		15	47
Other current assets		1	3
Total current assets		16	50
Property and equipment, net		11	10
Goodwill and indefinite-lived intangible assets		15	15
Definite-lived intangible assets, net		36	40
Total assets		78	115
Current liabilities:
Other current liabilities		13	15
Long-term liabilities:
Notes payable, finance leases, and commercial bank financing, less current portion		6	7
Program contracts payable, less current portion		0	1
Other long-term liabilities		3	3
Total liabilities		$ 22	$ 26

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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RELATED PERSON TRANSACTIONS - Transactions with our Controlling Shareholders (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party
Related Party Transaction [Line Items]
Lease payments	$ 1.0	$ 1.0	$ 3.0	$ 3.0
Charter Aircraft
Related Party Transaction [Line Items]
Amounts of transaction	$ 0.1	$ 0.1	$ 0.2	$ 0.3

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RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2016 USD ($)	Apr. 30, 2016 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) renewal	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Total revenues			$ 768.0	$ 837.0	$ 1,541.0	$ 2,125.0
Cunningham
Related Party Transaction [Line Items]
Right to acquire capital stock			100.00%		100.00%
Remaining purchase price			$ 54.0		$ 54.0		$ 54.0
Purchase options, broadcast stations			0.2		0.2
Cunningham | Related Party
Related Party Transaction [Line Items]
Total revenues			$ 33.0	37.0	$ 69.0	71.0
Share service agreement, annual service consideration increasing rate ( as a percent)	3.00%
Cunningham | LMA
Related Party Transaction [Line Items]
Number of additional renewal terms | renewal					1
Agreement renewal period					5 years
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid			3.00%		3.00%
Amount used to determine annual LMA fees required to be paid			$ 6.0		$ 6.0
Annual increase in aggregate purchase price			6.00%		6.00%
Amounts of transaction					$ 63.0		$ 61.0
Amount paid			$ 3.0	1.0	$ 6.0	4.0
Cunningham | Renewal Term
Related Party Transaction [Line Items]
Agreement renewal period					8 years
Cunningham | Initial Fee
Related Party Transaction [Line Items]
Amounts of transaction		$ 1.0
Cunningham | Annual Master Control And Maintenance Fee
Related Party Transaction [Line Items]
Amounts of transaction		$ 0.3
Cunningham | Annual Fee
Related Party Transaction [Line Items]
Amounts of transaction	$ 0.6
Cunningham | Multi-Cast Agreements
Related Party Transaction [Line Items]
Amount paid			$ 0.5	$ 1.0	$ 1.0	$ 1.0

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RELATED PERSON TRANSACTIONS - MileOne Autogroup Inc. (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Revenue	$ 768.0	$ 837.0	$ 1,541.0	$ 2,125.0
MileOne AutoGroup | Advertising Time
Related Party Transaction [Line Items]
Revenue	$ 0.1	$ 0.1	$ 0.1	$ 0.1

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RELATED PERSON TRANSACTIONS - Leased Property by Real Estate Ventures (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease Services | Related Party
Related Party Transaction [Line Items]
Amount received	$ 0.3	$ 0.3	$ 0.7	$ 0.5

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RELATED PERSON TRANSACTIONS - Diamond Sports Intermediate Holdings LLC (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	May 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Revenue		$ 768	$ 837	$ 1,541	$ 2,125
DSIH | Related Party
Related Party Transaction [Line Items]
Revenue		6	4	11	5
Local Media | Related Party
Related Party Transaction [Line Items]
Revenue		14	10	$ 24	15
Management Services Agreement with Diamond Sports Group
Related Party Transaction [Line Items]
Annual management service fee, deferral period				4 years
Amounts of transaction				$ 78
Management Services Agreement with Diamond Sports Group | Local Media
Related Party Transaction [Line Items]
Revenue		13	10	22	38
Management Services Agreement with Diamond Sports Group | Local Media | Eliminations
Related Party Transaction [Line Items]
Revenue					24
Distributions from Diamond Sports Intermediate Holdings LLC | Redeemable Subsidiary Preferred Equity
Related Party Transaction [Line Items]
Amounts of transaction			2		3
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Related Party Transaction [Line Items]
Proceeds from collection of notes receivable		$ 206	$ 10	$ 209	$ 60
Notes Receivable of Diamond Sports Finance SPV, LLC | A/R Facility | Related Party
Related Party Transaction [Line Items]
Cash settlement for related party debt	$ 199

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RELATED PERSON TRANSACTIONS - Other Equity Method Investees (Details) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2019 renewal	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Related Party Transaction [Line Items]
Revenue		$ 768	$ 837	$ 1,541	$ 2,125
Equity method investee
Related Party Transaction [Line Items]
Marketing services					2
Equity method investee | YES Network
Related Party Transaction [Line Items]
Revenue					1
Equity method investee | YES Network
Related Party Transaction [Line Items]
Number of renewal terms | renewal	2
Renewal period	2 years
Equity method investee | Mobile Trucks | Mobile Trucks
Related Party Transaction [Line Items]
Amount paid					$ 5

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RELATED PERSON TRANSACTIONS - Sports Programming Rights (Details) - Sports Programming Rights $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) professional_team
Related Party Transaction [Line Items]
Number of sports rights agreements assumed | professional_team	6
Amounts of transaction | $	$ 61

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RELATED PERSON TRANSACTIONS - Employees (Details) - Related Party - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee | Jason Smith
Related Party Transaction [Line Items]
Total compensation (less than)	$ 0.2	$ 0.1	$ 0.4	$ 0.2
Employee | Ethan White
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	0.1	0.1
Employee | Amberly Thompson
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	0.1	0.1
Employee | Edward Kim
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	$ 0.1	$ 0.1
Employee | Restricted Stock | Ethan White
Related Party Transaction [Line Items]
Granted (in shares)			1,252
Vesting period			2 years
Employee | Restricted Stock | Edward Kim
Related Party Transaction [Line Items]
Granted (in shares)			516	302
Vesting period			2 years	2 years
Vice President | Frederick Smith
Related Party Transaction [Line Items]
Total compensation (less than)	0.2	0.2	$ 0.4	$ 0.4
Director | J. Duncan Smith
Related Party Transaction [Line Items]
Total compensation (less than)	$ 0.2	$ 0.2	$ 0.4	$ 0.4

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FAIR VALUE MEASUREMENTS - Schedule of Carrying Value and Fair Value of Notes and Debentures (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 07, 2023	Dec. 31, 2022
FAIR VALUE MEASUREMENTS:
Investments in equity securities	$ 186,000,000		$ 186,000,000			$ 234,000,000
Debt discount and deferred financing costs	$ 51,000,000		$ 51,000,000			56,000,000
Interest Rate Swap
FAIR VALUE MEASUREMENTS:
Notional amount					$ 600,000,000
Fixed interest rate					3.90%
Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	5.50%		5.50%
Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	5.125%		5.125%
Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	4.125%		4.125%
Bally's
FAIR VALUE MEASUREMENTS:
Option purchase price, minimum (in dollars per share)			$ 30
Option purchase price, maximum (in dollars per share)			$ 45
Bally's | Options and Warrants
FAIR VALUE MEASUREMENTS:
Measurement adjustments	$ (17,000,000)	$ (74,000,000)	$ (17,000,000)	$ (130,000,000)
Level 1 | Face Value
FAIR VALUE MEASUREMENTS:
Deferred compensation assets	43,000,000		43,000,000			41,000,000
Deferred compensation liabilities	40,000,000		40,000,000			35,000,000
Level 1 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	5,000,000		5,000,000			6,000,000
Deferred compensation assets	43,000,000		43,000,000			41,000,000
Deferred compensation liabilities	40,000,000		40,000,000			35,000,000
Level 1 | Fair Value | Money market funds
FAIR VALUE MEASUREMENTS:
Money market funds	523,000,000		523,000,000			741,000,000
Level 2 | Face Value | Debt of variable interest entities
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	7,000,000		7,000,000			8,000,000
Level 2 | Face Value | Debt of non-media subsidiaries
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	16,000,000		16,000,000			16,000,000
Level 2 | Face Value | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	485,000,000		485,000,000			500,000,000
Level 2 | Face Value | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	278,000,000		278,000,000			282,000,000
Level 2 | Face Value | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	737,000,000		737,000,000			750,000,000
Level 2 | Face Value | Term Loan | Term Loan B-2, due September 30, 2026
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	1,251,000,000		1,251,000,000			1,258,000,000
Level 2 | Face Value | Term Loan | Term Loan B-3, due April 1, 2028
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	725,000,000		725,000,000			729,000,000
Level 2 | Face Value | Term Loan | Term Loan B-4, due April 21, 2029
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	743,000,000		743,000,000			746,000,000
Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	123,000,000		123,000,000			153,000,000
Level 2 | Fair Value | Debt of variable interest entities
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	7,000,000		7,000,000			8,000,000
Level 2 | Fair Value | Debt of non-media subsidiaries
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	16,000,000		16,000,000			16,000,000
Level 2 | Fair Value | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	281,000,000		281,000,000			347,000,000
Level 2 | Fair Value | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	237,000,000		237,000,000			230,000,000
Level 2 | Fair Value | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	487,000,000		487,000,000			560,000,000
Level 2 | Fair Value | Term Loan | Term Loan B-2, due September 30, 2026
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	1,110,000,000		1,110,000,000			1,198,000,000
Level 2 | Fair Value | Term Loan | Term Loan B-3, due April 1, 2028
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	584,000,000		584,000,000			692,000,000
Level 2 | Fair Value | Term Loan | Term Loan B-4, due April 21, 2029
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	559,000,000		559,000,000			709,000,000
Level 2 | Fair Value | Interest Rate Swap
FAIR VALUE MEASUREMENTS:
Interest rate swap	8,000,000		8,000,000			0
Level 3 | Face Value | Options and Warrants
FAIR VALUE MEASUREMENTS:
Measurement adjustments	(17,000,000)	$ (74,000,000)	(17,000,000)	$ (130,000,000)
Level 3 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	$ 58,000,000		$ 58,000,000			$ 75,000,000

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FAIR VALUE MEASUREMENTS - Schedule of Level 3 Activity (Details) - Level 3 - Face Value - Options and Warrants - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 75	$ 226	$ 75	$ 282
Measurement adjustments	(17)	(74)	(17)	(130)
Fair value at end of period	$ 58	$ 152	$ 58	$ 152

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details)	3 Months Ended
	Jun. 30, 2023 market station segment channel
Segment data
Number of reportable segments | segment	2
Number of television stations owned | station	185
Number of markets | market	86
Number of channels | channel	639
Sinclair Broadcast Group, LLC
Segment data
Number of reportable segments | segment	1
Number of television stations owned | station	185
Number of markets | market	86
Number of channels | channel	639

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Company Reorganization (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Apr. 03, 2023	Jun. 30, 2023	Jun. 30, 2023
Sinclair Broadcast Group, LLC
Class of Stock [Line Items]
Net book value of transfer of assets	$ 1,118	$ 1,118	$ 1,118

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deconsolidation of Diamond Sports Intermediate Holdings LLC (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Mar. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Noncontrolling Interest [Line Items]
Gain on deconsolidation of subsidiary	$ 3,357	$ 0	$ 0	$ 0	$ 3,357
Sinclair Broadcast Group, LLC
Noncontrolling Interest [Line Items]
Gain on deconsolidation of subsidiary	$ 3,357	$ 0	$ 0	$ 0	$ 3,357

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Broadcast Television Programming (Details) - Television Programming Contract Rights	6 Months Ended
	Jun. 30, 2023
Minimum
Finite-Lived Intangible Assets [Line Items]
Television programming contract period	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Television programming contract period	3 years
Contract period utilizing accelerated amortization method	3 years
Sinclair Broadcast Group, LLC | Minimum
Finite-Lived Intangible Assets [Line Items]
Television programming contract period	1 year
Sinclair Broadcast Group, LLC | Maximum
Finite-Lived Intangible Assets [Line Items]
Television programming contract period	7 years
Contract period utilizing accelerated amortization method	3 years

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Hedge Accounting (Details) - Interest Rate Swap	Feb. 07, 2023 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 600,000,000
Fixed interest rate	3.90%
Sinclair Broadcast Group, LLC
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 600,000,000
Fixed interest rate	3.90%

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Lessee, Lease, Description [Line Items]
Leased assets obtained in exchange for new operating lease liabilities	$ 4	$ 7
Leased assets obtained in exchange for new finance lease liabilities		1
Property and equipment purchases	5
Sinclair Broadcast Group, LLC
Lessee, Lease, Description [Line Items]
Leased assets obtained in exchange for new operating lease liabilities	3	7
Leased assets obtained in exchange for new finance lease liabilities		$ 1
Property and equipment purchases	5
Noncash distribution	$ 758

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 768	$ 837	$ 1,541	$ 2,125
Distribution revenue
Disaggregation of Revenue [Line Items]
Total revenues	418	430	844	1,303
Advertising revenue
Disaggregation of Revenue [Line Items]
Total revenues	309	366	618	737
Other media, non-media, and intercompany revenues
Disaggregation of Revenue [Line Items]
Total revenues	41	41	79	85
Operating Segments | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	699	760	1,404	1,514
Operating Segments | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				482
Operating Segments | Other
Disaggregation of Revenue [Line Items]
Total revenues	14	27	31	57
Operating Segments | Distribution revenue | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	372	385	753	778
Operating Segments | Distribution revenue | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				433
Operating Segments | Distribution revenue | Other
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Operating Segments | Advertising revenue | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	293	343	589	656
Operating Segments | Advertising revenue | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				44
Operating Segments | Advertising revenue | Other
Disaggregation of Revenue [Line Items]
Total revenues	6	13	12	27
Operating Segments | Other media, non-media, and intercompany revenues | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	34	32	62	80
Operating Segments | Other media, non-media, and intercompany revenues | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				5
Operating Segments | Other media, non-media, and intercompany revenues | Other
Disaggregation of Revenue [Line Items]
Total revenues	8	14	19	30
Eliminations
Disaggregation of Revenue [Line Items]
Total revenues	(5)	(8)	(9)	(42)
Eliminations | Distribution revenue
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Eliminations | Advertising revenue
Disaggregation of Revenue [Line Items]
Total revenues	(4)	(1)	(6)	(9)
Eliminations | Other media, non-media, and intercompany revenues
Disaggregation of Revenue [Line Items]
Total revenues	(1)	(7)	(3)	(33)
Sinclair Broadcast Group, LLC
Disaggregation of Revenue [Line Items]
Total revenues	743	837	1,516	2,125
Sinclair Broadcast Group, LLC | Distribution revenue
Disaggregation of Revenue [Line Items]
Total revenues	403	430	829	1,303
Sinclair Broadcast Group, LLC | Advertising revenue
Disaggregation of Revenue [Line Items]
Total revenues	303	366	613	737
Sinclair Broadcast Group, LLC | Other media, non-media, and intercompany revenues
Disaggregation of Revenue [Line Items]
Total revenues	37	41	74	85
Sinclair Broadcast Group, LLC | Operating Segments | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	699	760	1,404	1,514
Sinclair Broadcast Group, LLC | Operating Segments | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				482
Sinclair Broadcast Group, LLC | Operating Segments | Other
Disaggregation of Revenue [Line Items]
Total revenues	47	85	119	171
Sinclair Broadcast Group, LLC | Operating Segments | Distribution revenue | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	372	385	753	778
Sinclair Broadcast Group, LLC | Operating Segments | Distribution revenue | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				433
Sinclair Broadcast Group, LLC | Operating Segments | Distribution revenue | Other
Disaggregation of Revenue [Line Items]
Total revenues	31	45	76	92
Sinclair Broadcast Group, LLC | Operating Segments | Advertising revenue | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	293	343	589	656
Sinclair Broadcast Group, LLC | Operating Segments | Advertising revenue | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				44
Sinclair Broadcast Group, LLC | Operating Segments | Advertising revenue | Other
Disaggregation of Revenue [Line Items]
Total revenues	13	25	29	47
Sinclair Broadcast Group, LLC | Operating Segments | Other media, non-media, and intercompany revenues | Local Media
Disaggregation of Revenue [Line Items]
Total revenues	34	32	62	80
Sinclair Broadcast Group, LLC | Operating Segments | Other media, non-media, and intercompany revenues | Local Sports
Disaggregation of Revenue [Line Items]
Total revenues				5
Sinclair Broadcast Group, LLC | Operating Segments | Other media, non-media, and intercompany revenues | Other
Disaggregation of Revenue [Line Items]
Total revenues	3	15	14	32
Sinclair Broadcast Group, LLC | Eliminations
Disaggregation of Revenue [Line Items]
Total revenues	(3)	(8)	(7)	(42)
Sinclair Broadcast Group, LLC | Eliminations | Distribution revenue
Disaggregation of Revenue [Line Items]
Total revenues	0	0	0	0
Sinclair Broadcast Group, LLC | Eliminations | Advertising revenue
Disaggregation of Revenue [Line Items]
Total revenues	(3)	(2)	(5)	(10)
Sinclair Broadcast Group, LLC | Eliminations | Other media, non-media, and intercompany revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ 0	$ (6)	$ (2)	$ (32)

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 191		$ 191		$ 200
Deferred revenue, noncurrent	$ 134		134		$ 144
Deferred revenue, revenue recognized			$ 33	$ 42
Customer Concentration Risk | Revenue Benchmark | Customer One
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	12.00%	11.00%	11.00%	15.00%
Customer Concentration Risk | Revenue Benchmark | Customer Two
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	10.00%	10.00%	10.00%	14.00%
Customer Concentration Risk | Revenue Benchmark | Customer Three
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)				12.00%
Customer Concentration Risk | Accounts Receivable | Customer One
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			11.00%		13.00%
Customer Concentration Risk | Accounts Receivable | Customer Two
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			10.00%
Customer Concentration Risk | Accounts Receivable | Customer Three
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			10.00%
Sinclair Broadcast Group, LLC
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 181		$ 181		$ 200
Deferred revenue, noncurrent	$ 134		134		$ 144
Deferred revenue, revenue recognized			$ 32	$ 42
Sinclair Broadcast Group, LLC | Customer Concentration Risk | Revenue Benchmark | Customer One
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	12.00%	11.00%	11.00%	15.00%
Sinclair Broadcast Group, LLC | Customer Concentration Risk | Revenue Benchmark | Customer Two
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)	10.00%	10.00%	10.00%	14.00%
Sinclair Broadcast Group, LLC | Customer Concentration Risk | Revenue Benchmark | Customer Three
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)				12.00%
Sinclair Broadcast Group, LLC | Customer Concentration Risk | Accounts Receivable | Customer One
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			11.00%		13.00%
Sinclair Broadcast Group, LLC | Customer Concentration Risk | Accounts Receivable | Customer Two
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			11.00%
Sinclair Broadcast Group, LLC | Customer Concentration Risk | Accounts Receivable | Customer Three
Disaggregation of Revenue [Line Items]
Concentration risk (as a percent)			10.00%

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) $ in Millions	Jun. 30, 2023 USD ($)
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Decrease in unrecognized tax benefits is reasonably possible	$ 1
Sinclair Broadcast Group, LLC
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Decrease in unrecognized tax benefits is reasonably possible	$ 1

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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) shares
Equity, Class of Treasury Stock [Line Items]
Treasury stock, shares acquired (in shares) | shares	8.8
Treasury stock, value acquired | $	$ 151
Sinclair Broadcast Group, LLC
Equity, Class of Treasury Stock [Line Items]
Treasury stock, shares acquired (in shares) | shares	8.8
Treasury stock, value acquired | $	$ 151

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OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 130	$ 113
Other investments	397	442
Note receivable	0	193
Income tax receivable	131	131
Post-retirement plan assets	43	41
Other	51	44
Total other assets	752	964
Sinclair Broadcast Group, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	1	113
Other investments	26	442
Note receivable	0	193
Income tax receivable	131	131
Post-retirement plan assets	43	41
Other	54	44
Total other assets	$ 255	$ 964

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OTHER ASSETS - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 01, 2022
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments		$ (1,000,000)	$ 3,000,000	$ 30,000,000	$ 15,000,000
Investments in equity securities measured at fair value		186,000,000		186,000,000		$ 234,000,000
Unrealized gain (loss) on FV-NI and NAV investments		(47,000,000)	(105,000,000)	(48,000,000)	(161,000,000)
Equity investments, net of cumulative impairment		14,000,000		14,000,000		18,000,000
Cumulative impairment						7,000,000
Impairment recorded		6,000,000	0	6,000,000	0
Note receivable		0		0		193,000,000
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Schedule of Equity Method Investments [Line Items]
Note receivable		0		0		193,000,000
A/R Facility | Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Schedule of Equity Method Investments [Line Items]
Cash settlement for related party debt	$ 199,000,000
Fair Value Measured at Net Asset Value Per Share
Schedule of Equity Method Investments [Line Items]
Investments measured at NAV		197,000,000		197,000,000		190,000,000
Unfunded commitments related to investments valued using NAV practical expedient		80,000,000		80,000,000		88,000,000
DSIH
Schedule of Equity Method Investments [Line Items]
Fair value of equity method investments		0	0	0	0		$ 0
Income (loss) from equity method investments		0	0	0	0
YES Network
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments					10,000,000
Sinclair Broadcast Group, LLC
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments		0	3,000,000	31,000,000	15,000,000
Investments in equity securities measured at fair value						234,000,000
Unrealized gain (loss) on FV-NI and NAV investments		(72,000,000)	(105,000,000)	(73,000,000)	(161,000,000)
Equity investments, net of cumulative impairment		1,000,000		1,000,000		18,000,000
Cumulative impairment						7,000,000
Impairment recorded		6,000,000	0	6,000,000	0
Note receivable		0		0		193,000,000
Sinclair Broadcast Group, LLC | Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Schedule of Equity Method Investments [Line Items]
Note receivable						193,000,000
Sinclair Broadcast Group, LLC | A/R Facility | Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Schedule of Equity Method Investments [Line Items]
Cash settlement for related party debt	$ 199,000,000
Sinclair Broadcast Group, LLC | Fair Value Measured at Net Asset Value Per Share
Schedule of Equity Method Investments [Line Items]
Investments measured at NAV		25,000,000		25,000,000		190,000,000
Unfunded commitments related to investments valued using NAV practical expedient		40,000,000		40,000,000		$ 88,000,000
Sinclair Broadcast Group, LLC | DSIH
Schedule of Equity Method Investments [Line Items]
Fair value of equity method investments		0	0	0	0		$ 0
Income (loss) from equity method investments		$ 0	$ 0	$ 0	0
Sinclair Broadcast Group, LLC | YES Network
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments					$ 10,000,000

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NOTES PAYABLE, FINANCE LEASES, AND COMMERCIAL BANK FINANCING (Details)	1 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Feb. 07, 2023 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Borrowings under revolving credit facility exceed total commitments (as a percent)					35.00%
Gain on extinguishment of debt			$ 11,000,000	$ 3,000,000	$ 11,000,000	$ 3,000,000
Consolidated VIEs
Debt Instrument [Line Items]
Consolidated total debt		$ 2,000,000	2,000,000		2,000,000			$ 2,000,000
Interest Rate Swap
Debt Instrument [Line Items]
Notional amount							$ 600,000,000
Fixed interest rate							3.90%
Fair value of interest rate swap		8,000,000	8,000,000		8,000,000
Guarantee Obligations
Debt Instrument [Line Items]
Unconditional and irrevocably guaranteed debt		2,000,000	2,000,000		2,000,000			2,000,000
Provide guarantee of certain obligations		112,000,000	112,000,000		$ 112,000,000
Annual escalations (as a percent)					4.00%
Debt term ( year)					6 years
5.125% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 3,000,000	$ 3,000,000		$ 3,000,000
Interest rate (as a percent)		5.125%	5.125%		5.125%
Repayments of senior debt		$ 3,000,000
5.125% Senior Notes due 2027 | Senior Notes | Subsequent Event
Debt Instrument [Line Items]
Debt instrument, repurchased face amount	$ 500,000
Interest rate (as a percent)	5.125%
Repayments of senior debt	$ 400,000
5.500% Senior Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 15,000,000	$ 15,000,000		$ 15,000,000
Interest rate (as a percent)		5.50%	5.50%		5.50%
Repayments of senior debt		$ 8,000,000
4.125% Senior Secured Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 13,000,000	$ 13,000,000		$ 13,000,000
Interest rate (as a percent)		4.125%	4.125%		4.125%
Repayments of senior debt		$ 8,000,000
STG Senior Unsecured Notes | Senior Notes
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 11,000,000		$ 11,000,000
Term Loan B-2, due September 30, 2026 | Term Loan | Subsequent Event
Debt Instrument [Line Items]
Repayments of senior debt	800,000
Repaid aggregate principal amount	1,000,000
STG Revolving Credit Facility
Debt Instrument [Line Items]
First lien leverage ratio		4.5	4.5		4.5
Borrowings outstanding		$ 0	$ 0		$ 0
Sinclair Broadcast Group, LLC
Debt Instrument [Line Items]
Borrowings under revolving credit facility exceed total commitments (as a percent)					35.00%
Gain on extinguishment of debt			11,000,000	$ 3,000,000	$ 11,000,000	$ 3,000,000
Consolidated total debt		4,206,000,000	4,206,000,000		4,206,000,000
Sinclair Broadcast Group, LLC | Consolidated VIEs
Debt Instrument [Line Items]
Consolidated total debt		2,000,000	2,000,000		2,000,000			2,000,000
Sinclair Broadcast Group, LLC | Interest Rate Swap
Debt Instrument [Line Items]
Notional amount							$ 600,000,000
Fixed interest rate							3.90%
Fair value of interest rate swap		8,000,000	8,000,000		8,000,000
Sinclair Broadcast Group, LLC | Guarantee Obligations
Debt Instrument [Line Items]
Unconditional and irrevocably guaranteed debt		2,000,000	2,000,000		2,000,000			2,000,000
Provide guarantee of certain obligations		112,000,000	112,000,000		$ 112,000,000
Annual escalations (as a percent)					4.00%
Debt term ( year)					7 years
Sinclair Broadcast Group, LLC | Related Party
Debt Instrument [Line Items]
Finance lease liabilities, current		2,000,000	2,000,000		$ 2,000,000			3,000,000
Finance lease liabilities, non-current		6,000,000	6,000,000		6,000,000			$ 6,000,000
Sinclair Broadcast Group, LLC | 5.125% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 3,000,000	$ 3,000,000		$ 3,000,000
Interest rate (as a percent)		5.125%	5.125%		5.125%
Repayments of senior debt		$ 3,000,000
Sinclair Broadcast Group, LLC | 5.125% Senior Notes due 2027 | Senior Notes | Subsequent Event
Debt Instrument [Line Items]
Debt instrument, repurchased face amount	$ 500,000
Interest rate (as a percent)	5.125%
Repayments of senior debt	$ 400,000
Sinclair Broadcast Group, LLC | 5.500% Senior Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 15,000,000	$ 15,000,000		$ 15,000,000
Interest rate (as a percent)		5.50%	5.50%		5.50%
Repayments of senior debt		$ 8,000,000
Sinclair Broadcast Group, LLC | 4.125% Senior Secured Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, repurchased face amount		$ 13,000,000	$ 13,000,000		$ 13,000,000
Interest rate (as a percent)		4.125%	4.125%		4.125%
Repayments of senior debt		$ 8,000,000
Sinclair Broadcast Group, LLC | STG Senior Unsecured Notes | Senior Notes
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 11,000,000		$ 11,000,000
Sinclair Broadcast Group, LLC | Term Loan B-2, due September 30, 2026 | Term Loan | Subsequent Event
Debt Instrument [Line Items]
Repayments of senior debt	800,000
Repaid aggregate principal amount	$ 1,000,000
Sinclair Broadcast Group, LLC | STG Revolving Credit Facility
Debt Instrument [Line Items]
First lien leverage ratio		4.5	4.5		4.5
Borrowings outstanding		$ 0	$ 0		$ 0

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REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
	Feb. 10, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Temporary Equity [Line Items]
Dividends accrued during the period		$ 3	$ 3	$ 6
Redeemable subsidiary preferred equity					$ 194
Liquidation preference					198
Aggregate redemption price	$ 190
Unreturned capital contribution, percentage	95.00%
Unreturned capital contribution	$ 175
Redeemable Preferred Stock
Temporary Equity [Line Items]
Redeemed units (in shares)	175,000
Sinclair Broadcast Group, LLC
Temporary Equity [Line Items]
Dividends accrued during the period		$ 3	$ 3	$ 6
Redeemable subsidiary preferred equity					194
Liquidation preference					$ 198
Aggregate redemption price	$ 190
Unreturned capital contribution, percentage	95.00%
Unreturned capital contribution	$ 175
Sinclair Broadcast Group, LLC | Redeemable Preferred Stock
Temporary Equity [Line Items]
Redeemed units (in shares)	175,000

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Thousands										1 Months Ended	12 Months Ended
	Jul. 19, 2023 USD ($)	Sep. 21, 2022 USD ($) station	Jul. 28, 2021 USD ($)	Oct. 15, 2020 USD ($)	Sep. 02, 2020 USD ($)	Aug. 19, 2020 USD ($)	Jun. 08, 2020 petition	May 22, 2020 USD ($)	Nov. 06, 2018 lawsuit	Dec. 31, 2017 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2023 USD ($) station	Oct. 03, 2018 broadcaster
Loss Contingencies [Line Items]
Number of television stations owned | station												185
Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Proposed fine		$ 2,700			$ 9,000					$ 13,000
Proposed fine per station				$ 25	500
Issuance of forfeiture penalty upheld			$ 500
Additional legal expenses accrued											$ 8,000
Number of television stations owned | station		83
Loss contingency, damages sought, total		$ 3,400
Loss contingency accrual												$ 3,400
Unfavorable Regulatory Action | Minimum
Loss Contingencies [Line Items]
Proposed fine per station		20
Unfavorable Regulatory Action | Maximum
Loss Contingencies [Line Items]
Proposed fine per station		26
Management Services Agreement Misconduct | Subsequent Event
Loss Contingencies [Line Items]
Loss contingency, allegations, payments received	$ 1,500,000
Breach of Merger Agreement
Loss Contingencies [Line Items]
Agreement to pay to resolve FCC investigation								$ 48,000
Payments to resolve FCC investigation						$ 48,000
Compliance plan term								4 years
Number of petitions filed | petition							2
Various Cases Alleging Violation of Sherman Antitrust Act
Loss Contingencies [Line Items]
Loss contingency, new claims filed, number (lawsuit) | lawsuit									22
Loss contingency, number of other broadcasters | broadcaster													13
Sinclair Broadcast Group, LLC
Loss Contingencies [Line Items]
Number of television stations owned | station												185
Sinclair Broadcast Group, LLC | Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Proposed fine		$ 2,700			9,000					$ 13,000
Proposed fine per station				$ 25	$ 500
Issuance of forfeiture penalty upheld			$ 500
Additional legal expenses accrued											$ 8,000
Number of television stations owned | station		83
Loss contingency, damages sought, total		$ 3,400
Loss contingency accrual												$ 3,400
Sinclair Broadcast Group, LLC | Unfavorable Regulatory Action | Minimum
Loss Contingencies [Line Items]
Proposed fine per station		20
Sinclair Broadcast Group, LLC | Unfavorable Regulatory Action | Maximum
Loss Contingencies [Line Items]
Proposed fine per station		$ 26
Sinclair Broadcast Group, LLC | Management Services Agreement Misconduct | Subsequent Event
Loss Contingencies [Line Items]
Loss contingency, allegations, payments received	$ 1,500,000
Sinclair Broadcast Group, LLC | Breach of Merger Agreement
Loss Contingencies [Line Items]
Agreement to pay to resolve FCC investigation								$ 48,000
Payments to resolve FCC investigation						$ 48,000
Compliance plan term								4 years
Number of petitions filed | petition							2
Sinclair Broadcast Group, LLC | Various Cases Alleging Violation of Sherman Antitrust Act
Loss Contingencies [Line Items]
Loss contingency, new claims filed, number (lawsuit) | lawsuit									22
Loss contingency, number of other broadcasters | broadcaster													13

XML

SEGMENT DATA - Narrative (Details)	3 Months Ended
	Jun. 30, 2023 segment
Segment data
Number of reportable segments	2
Sinclair Broadcast Group, LLC
Segment data
Number of reportable segments	1

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SEGMENT DATA - Segment Financial Information (Details) - USD ($) $ in Millions			3 Months Ended			6 Months Ended
		Mar. 01, 2022	Jun. 30, 2023		Jun. 30, 2022	Jun. 30, 2023		Jun. 30, 2022	Dec. 31, 2022
Segment data
Assets	[1]		$ 6,201			$ 6,201			$ 6,704	[2]
Revenue			768		$ 837	1,541		$ 2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			73		67	138		188
Amortization of sports programming rights						0		326
Amortization of program contract costs			19		21	41		46
Corporate general and administrative expenses			62		38	120		85
Gain on deconsolidation of subsidiary		$ (3,357)	0		0	0		(3,357)
(Gain) loss on asset dispositions and other, net of impairment			5		(4)	11		(9)
Operating income (loss)			(3)		107	18		3,573
Interest expense including amortization of debt discount and deferred financing costs			76		54	150		169
Income from equity method investments			(1)		3	30		15
Local Media
Segment data
Intersegment revenues					1	1		25
Local Media | Related Party
Segment data
Revenue			14		10	24		15
Operating Segments | Local Media
Segment data
Assets			4,315			4,315
Revenue			699		760	1,404		1,514
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			67		61	126		122
Amortization of sports programming rights								0
Amortization of program contract costs			19		21	41		46
Corporate general and administrative expenses			46		34	78		77
Gain on deconsolidation of subsidiary								0
(Gain) loss on asset dispositions and other, net of impairment			(2)		(4)	(3)		(8)
Operating income (loss)			22		116	63		211
Interest expense including amortization of debt discount and deferred financing costs			76		54	150		99
Income from equity method investments			0		0	0		0
Operating Segments | Local Sports
Segment data
Revenue								482
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets								54
Amortization of sports programming rights								326
Amortization of program contract costs								0
Corporate general and administrative expenses								1
Gain on deconsolidation of subsidiary								0
(Gain) loss on asset dispositions and other, net of impairment								0
Operating income (loss)								(4)
Interest expense including amortization of debt discount and deferred financing costs								72
Income from equity method investments								10
Other & Corporate
Segment data
Assets			1,577			1,577
Revenue			14		27	31		57
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			1		2	3		4
Amortization of sports programming rights								0
Amortization of program contract costs			0		0	0		0
Corporate general and administrative expenses			16		4	42		7
Gain on deconsolidation of subsidiary								(3,357)
(Gain) loss on asset dispositions and other, net of impairment			7		0	14		(1)
Operating income (loss)			(28)		(9)	(66)		3,342
Interest expense including amortization of debt discount and deferred financing costs			0		3	0		6
Income from equity method investments			(1)		3	30		5
Intersegment revenues			2		3	3		10
Eliminations
Segment data
Assets			0			0
Revenue			(5)		(8)	(9)		(42)
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			0		(1)	(1)		(2)
Amortization of sports programming rights								0
Amortization of program contract costs			0		0	0		0
Corporate general and administrative expenses			0		0	0		0
Gain on deconsolidation of subsidiary								0
(Gain) loss on asset dispositions and other, net of impairment			0		0	0		0
Operating income (loss)			0		0	0		0
Interest expense including amortization of debt discount and deferred financing costs			0		(3)	0		(8)
Income from equity method investments			0		0	0		0
Sinclair Broadcast Group, LLC
Segment data
Assets			4,994	[2]		4,994	[2]		$ 6,704
Revenue			743		837	1,516		2,125
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			70		67	135		188
Amortization of sports programming rights						0		326
Amortization of program contract costs			19		21	41		46
Corporate general and administrative expenses			58		38	116		85
Gain on deconsolidation of subsidiary		$ (3,357)	0		0	0		(3,357)
(Gain) loss on asset dispositions and other, net of impairment			4		(4)	10		(9)
Operating income (loss)			4		107	25		3,573
Interest expense including amortization of debt discount and deferred financing costs			76		54	150		169
Income from equity method investments			0		3	31		15
Sinclair Broadcast Group, LLC | Local Media
Segment data
Intersegment revenues					1	1		25
Sinclair Broadcast Group, LLC | Local Media | Related Party
Segment data
Revenue			14		10	24		15
Sinclair Broadcast Group, LLC | Operating Segments | Local Media
Segment data
Assets			4,349			4,349
Revenue			699		760	1,404		1,514
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			67		61	126		122
Amortization of sports programming rights								0
Amortization of program contract costs			19		21	41		46
Corporate general and administrative expenses			46		34	78		77
Gain on deconsolidation of subsidiary								0
(Gain) loss on asset dispositions and other, net of impairment			(2)		(4)	(3)		(8)
Operating income (loss)			22		116	63		211
Interest expense including amortization of debt discount and deferred financing costs			76		54	150		99
Income from equity method investments					0	0		0
Sinclair Broadcast Group, LLC | Operating Segments | Local Sports
Segment data
Revenue								482
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets								54
Amortization of sports programming rights								326
Amortization of program contract costs								0
Corporate general and administrative expenses								1
Gain on deconsolidation of subsidiary								0
(Gain) loss on asset dispositions and other, net of impairment								0
Operating income (loss)								(4)
Interest expense including amortization of debt discount and deferred financing costs								72
Income from equity method investments								10
Sinclair Broadcast Group, LLC | Other & Corporate
Segment data
Assets			645			645
Revenue			47		85	119		171
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			3		7	10		14
Amortization of sports programming rights								0
Amortization of program contract costs			0		0	0		0
Corporate general and administrative expenses			12		4	38		7
Gain on deconsolidation of subsidiary								(3,357)
(Gain) loss on asset dispositions and other, net of impairment			6		0	13		(1)
Operating income (loss)			(18)		(9)	(38)		3,366
Interest expense including amortization of debt discount and deferred financing costs			0		3	0		6
Income from equity method investments					3	31		5
Sinclair Broadcast Group, LLC | Eliminations
Segment data
Assets			0			0
Revenue			(3)		(8)	(7)		(42)
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets			0		(1)	(1)		(2)
Amortization of sports programming rights								0
Amortization of program contract costs			0		0	0		0
Corporate general and administrative expenses			0		0	0		0
Gain on deconsolidation of subsidiary								0
(Gain) loss on asset dispositions and other, net of impairment			0		0	0		0
Operating income (loss)			0		0	0		0
Interest expense including amortization of debt discount and deferred financing costs			$ 0		(3)	0		(8)
Income from equity method investments					$ 0	$ 0		$ 0

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($)		3 Months Ended			6 Months Ended
		Jun. 30, 2023		Jun. 30, 2022	Jun. 30, 2023		Jun. 30, 2022	Dec. 31, 2022
Variable Interest Entity [Line Items]
Assets	[1]	$ 6,201,000,000			$ 6,201,000,000			$ 6,704,000,000	[2]
Note receivable		0			0			193,000,000
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Variable Interest Entity [Line Items]
Note receivable		0			$ 0			193,000,000
Consolidated VIEs
Variable Interest Entity [Line Items]
Variable interest entities outsourcing agreement initial term					5 years
Assets		78,000,000			$ 78,000,000			115,000,000
Consolidated VIEs | Eliminations
Variable Interest Entity [Line Items]
Liabilities associated with the certain outsourcing agreements and purchase options		130,000,000			130,000,000			130,000,000
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Assets		201,000,000			201,000,000			187,000,000
Gain from related equity investments and other investments		3,000,000		$ 5,000,000	38,000,000		$ 25,000,000
Sinclair Broadcast Group, LLC
Variable Interest Entity [Line Items]
Assets		4,994,000,000	[2]		4,994,000,000	[2]		6,704,000,000
Note receivable		0			0			193,000,000
Sinclair Broadcast Group, LLC | Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Variable Interest Entity [Line Items]
Note receivable								193,000,000
Sinclair Broadcast Group, LLC | Eliminations
Variable Interest Entity [Line Items]
Assets		(4,914,000,000)			$ (4,914,000,000)			(5,999,000,000)
Sinclair Broadcast Group, LLC | Consolidated VIEs
Variable Interest Entity [Line Items]
Variable interest entities outsourcing agreement initial term					5 years
Assets		78,000,000			$ 78,000,000			115,000,000
Sinclair Broadcast Group, LLC | Consolidated VIEs | Eliminations
Variable Interest Entity [Line Items]
Liabilities associated with the certain outsourcing agreements and purchase options		130,000,000			130,000,000			130,000,000
Sinclair Broadcast Group, LLC | Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Assets								$ 187,000,000
Gain from related equity investments and other investments		$ 2,000,000		$ 5,000,000	$ 37,000,000		$ 25,000,000

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2023		Dec. 31, 2022
Current assets:
Accounts receivable, net		$ 582		$ 612
Other current assets		190		182
Total current assets		1,506		1,683
Property and equipment, net		715		728
Total assets	[1]	6,201		6,704	[2]
Current liabilities:
Other current liabilities		624		608
Long-term liabilities:
Notes payable, finance leases, and commercial bank financing, less current portion		4,185		4,227
Program contracts payable, less current portion		7		10
Other long-term liabilities		212		220
Total liabilities	[1]	5,560		5,829	[2]
Consolidated VIEs
Current assets:
Accounts receivable, net		15		47
Other current assets		1		3
Total current assets		16		50
Property and equipment, net		11		10
Goodwill and indefinite-lived intangible assets		15		15
Definite-lived intangible assets, net		36		40
Total assets		78		115
Current liabilities:
Other current liabilities		13		15
Long-term liabilities:
Notes payable, finance leases, and commercial bank financing, less current portion		6		7
Program contracts payable, less current portion		0		1
Other long-term liabilities		3		3
Total liabilities		22		26
Sinclair Broadcast Group, LLC
Current assets:
Accounts receivable, net		544		612
Other current assets		146		182
Total current assets		1,064		1,683
Property and equipment, net		689		728
Definite-lived intangible assets, net		715		946
Total assets		4,994	[2]	6,704
Current liabilities:
Other current liabilities		538		608
Long-term liabilities:
Notes payable, finance leases, and commercial bank financing, less current portion		4,170		4,227
Program contracts payable, less current portion		7		10
Other long-term liabilities		212		220
Total liabilities		5,466	[2]	5,829
Sinclair Broadcast Group, LLC | Consolidated VIEs
Current assets:
Accounts receivable, net		15		47
Other current assets		1		3
Total current assets		16		50
Property and equipment, net		11		10
Goodwill and indefinite-lived intangible assets		15		15
Definite-lived intangible assets, net		36		40
Total assets		78		115
Current liabilities:
Other current liabilities		13		15
Long-term liabilities:
Notes payable, finance leases, and commercial bank financing, less current portion		6		7
Program contracts payable, less current portion		0		1
Other long-term liabilities		3		3
Total liabilities		$ 22		$ 26

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

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RELATED PERSON TRANSACTIONS - Transactions with our Controlling Shareholders (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party
Related Party Transaction [Line Items]
Lease payments	$ 1.0	$ 1.0	$ 3.0	$ 3.0
Charter Aircraft
Related Party Transaction [Line Items]
Amounts of transaction	0.1	0.1	0.2	0.3
Sinclair Broadcast Group, LLC | Related Party
Related Party Transaction [Line Items]
Lease payments	1.0	1.0	3.0	3.0
Sinclair Broadcast Group, LLC | Charter Aircraft
Related Party Transaction [Line Items]
Amounts of transaction	$ 0.1	$ 0.1	$ 0.2	$ 0.3

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RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 31, 2016 USD ($)	Apr. 30, 2016 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) renewal	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Total revenues			$ 768.0	$ 837.0	$ 1,541.0	$ 2,125.0
Cunningham
Related Party Transaction [Line Items]
Right to acquire capital stock			100.00%		100.00%
Remaining purchase price			$ 54.0		$ 54.0		$ 54.0
Purchase options, broadcast stations			0.2		0.2
Cunningham | Related Party
Related Party Transaction [Line Items]
Total revenues			$ 33.0	37.0	$ 69.0	71.0
Share service agreement, annual service consideration increasing rate ( as a percent)	3.00%
Cunningham | LMA
Related Party Transaction [Line Items]
Number of additional renewal terms | renewal					1
Agreement renewal period					5 years
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid			3.00%		3.00%
Amount used to determine annual LMA fees required to be paid			$ 6.0		$ 6.0
Annual increase in aggregate purchase price			6.00%		6.00%
Amounts of transaction					$ 63.0		61.0
Amount paid			$ 3.0	1.0	$ 6.0	4.0
Cunningham | Renewal Term
Related Party Transaction [Line Items]
Agreement renewal period					8 years
Cunningham | Initial Fee
Related Party Transaction [Line Items]
Amounts of transaction		$ 1.0
Cunningham | Annual Master Control And Maintenance Fee
Related Party Transaction [Line Items]
Amounts of transaction		0.3
Cunningham | Annual Fee
Related Party Transaction [Line Items]
Amounts of transaction	$ 0.6
Cunningham | Multi-Cast Agreements
Related Party Transaction [Line Items]
Amount paid			0.5	1.0	$ 1.0	1.0
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Total revenues			$ 743.0	837.0	$ 1,516.0	2,125.0
Sinclair Broadcast Group, LLC | Cunningham
Related Party Transaction [Line Items]
Right to acquire capital stock			100.00%		100.00%
Remaining purchase price			$ 54.0		$ 54.0		54.0
Purchase options, broadcast stations			0.2		0.2
Sinclair Broadcast Group, LLC | Cunningham | Related Party
Related Party Transaction [Line Items]
Total revenues			$ 33.0	37.0	$ 69.0	71.0
Share service agreement, annual service consideration increasing rate ( as a percent)	3.00%
Sinclair Broadcast Group, LLC | Cunningham | LMA
Related Party Transaction [Line Items]
Number of additional renewal terms | renewal					1
Agreement renewal period					5 years
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid			3.00%		3.00%
Amount used to determine annual LMA fees required to be paid			$ 6.0		$ 6.0
Annual increase in aggregate purchase price			6.00%		6.00%
Amounts of transaction					$ 63.0		$ 61.0
Amount paid			$ 3.0	1.0	$ 6.0	4.0
Sinclair Broadcast Group, LLC | Cunningham | Renewal Term
Related Party Transaction [Line Items]
Agreement renewal period					8 years
Sinclair Broadcast Group, LLC | Cunningham | Initial Fee
Related Party Transaction [Line Items]
Amounts of transaction		1.0
Sinclair Broadcast Group, LLC | Cunningham | Annual Master Control And Maintenance Fee
Related Party Transaction [Line Items]
Amounts of transaction		$ 0.3
Sinclair Broadcast Group, LLC | Cunningham | Annual Fee
Related Party Transaction [Line Items]
Amounts of transaction	$ 0.6
Sinclair Broadcast Group, LLC | Cunningham | Multi-Cast Agreements
Related Party Transaction [Line Items]
Amount paid			$ 0.5	$ 1.0	$ 1.0	$ 1.0

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RELATED PERSON TRANSACTIONS - MileOne Autogroup Inc. (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Revenue	$ 768.0	$ 837.0	$ 1,541.0	$ 2,125.0
MileOne AutoGroup | Advertising Time
Related Party Transaction [Line Items]
Revenue	0.1	0.1	0.1	0.1
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Revenue	743.0	837.0	1,516.0	2,125.0
Sinclair Broadcast Group, LLC | MileOne AutoGroup | Advertising Time
Related Party Transaction [Line Items]
Revenue	$ 0.1	$ 0.1	$ 0.1	$ 0.1

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RELATED PERSON TRANSACTIONS - Leased Property by Real Estate Ventures (Details) - Lease Services - Related Party - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Amount received	$ 0.3	$ 0.3	$ 0.7	$ 0.5
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Amount received	$ 0.3	$ 0.3	$ 0.7	$ 0.5

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RELATED PERSON TRANSACTIONS - Sinclair, Inc. (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Revenue	$ 768	$ 837	$ 1,541	$ 2,125
Prepaid expenses and other current assets	190		190		$ 182
Related Party | Local Media
Related Party Transaction [Line Items]
Revenue	14	10	24	15
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Revenue	743	837	1,516	2,125
Prepaid expenses and other current assets	146		146		$ 182
Sinclair Broadcast Group, LLC | Related Party | Local Media
Related Party Transaction [Line Items]
Revenue	14	$ 10	24	$ 15
Sinclair Broadcast Group, LLC | Sinclair, Inc. | Related Party
Related Party Transaction [Line Items]
Amounts of transaction	360		360
Prepaid expenses and other current assets	16		16
Sinclair Broadcast Group, LLC | Sinclair, Inc. | Related Party | Local Media
Related Party Transaction [Line Items]
Revenue	1		1
Expenses	$ 2		$ 2

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RELATED PERSON TRANSACTIONS - Diamond Sports Intermediate Holdings LLC (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	May 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Revenue		$ 768	$ 837	$ 1,541	$ 2,125
DSIH | Related Party
Related Party Transaction [Line Items]
Revenue		6	4	11	5
Local Media | Related Party
Related Party Transaction [Line Items]
Revenue		14	10	$ 24	15
Management Services Agreement with Diamond Sports Group
Related Party Transaction [Line Items]
Annual management service fee, deferral period				4 years
Amounts of transaction				$ 78
Management Services Agreement with Diamond Sports Group | Local Media
Related Party Transaction [Line Items]
Revenue		13	10	22	38
Management Services Agreement with Diamond Sports Group | Local Media | Eliminations
Related Party Transaction [Line Items]
Revenue					24
Distributions from Diamond Sports Intermediate Holdings LLC | Redeemable Subsidiary Preferred Equity
Related Party Transaction [Line Items]
Amounts of transaction			2		3
Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Related Party Transaction [Line Items]
Proceeds from collection of notes receivable		206	10	209	60
Notes Receivable of Diamond Sports Finance SPV, LLC | A/R Facility | Related Party
Related Party Transaction [Line Items]
Cash settlement for related party debt	$ 199
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Revenue		743	837	1,516	2,125
Sinclair Broadcast Group, LLC | Eliminations
Related Party Transaction [Line Items]
Revenue		(18)	(40)	(37)	(103)
Sinclair Broadcast Group, LLC | Local Media | Related Party
Related Party Transaction [Line Items]
Revenue		14	10	24	15
Sinclair Broadcast Group, LLC | Local Media | DSIH | Related Party
Related Party Transaction [Line Items]
Revenue		4	4	$ 9	5
Sinclair Broadcast Group, LLC | Management Services Agreement with Diamond Sports Group
Related Party Transaction [Line Items]
Annual management service fee, deferral period				4 years
Amounts of transaction				$ 78
Sinclair Broadcast Group, LLC | Management Services Agreement with Diamond Sports Group | Local Media
Related Party Transaction [Line Items]
Revenue		13	10	22	38
Sinclair Broadcast Group, LLC | Management Services Agreement with Diamond Sports Group | Local Media | Eliminations
Related Party Transaction [Line Items]
Revenue					24
Sinclair Broadcast Group, LLC | Distributions from Diamond Sports Intermediate Holdings LLC | Redeemable Subsidiary Preferred Equity
Related Party Transaction [Line Items]
Amounts of transaction			2		3
Sinclair Broadcast Group, LLC | Notes Receivable of Diamond Sports Finance SPV, LLC | Related Party
Related Party Transaction [Line Items]
Proceeds from collection of notes receivable		$ 206	$ 10	$ 209	$ 60
Sinclair Broadcast Group, LLC | Notes Receivable of Diamond Sports Finance SPV, LLC | A/R Facility | Related Party
Related Party Transaction [Line Items]
Cash settlement for related party debt	$ 199

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RELATED PERSON TRANSACTIONS - Other Equity Method Investees (Details) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2019 renewal	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Related Party Transaction [Line Items]
Revenue		$ 768	$ 837	$ 1,541	$ 2,125
Equity method investee
Related Party Transaction [Line Items]
Marketing services					2
Equity method investee | YES Network
Related Party Transaction [Line Items]
Revenue					1
Equity method investee | YES Network
Related Party Transaction [Line Items]
Number of renewal terms | renewal	2
Renewal period	2 years
Equity method investee | Mobile Trucks | Mobile Trucks
Related Party Transaction [Line Items]
Amount paid					5
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Revenue		$ 743	$ 837	$ 1,516	2,125
Sinclair Broadcast Group, LLC | Equity method investee
Related Party Transaction [Line Items]
Marketing services					2
Sinclair Broadcast Group, LLC | Equity method investee | YES Network
Related Party Transaction [Line Items]
Revenue					1
Sinclair Broadcast Group, LLC | Equity method investee | YES Network
Related Party Transaction [Line Items]
Number of renewal terms | renewal	2
Renewal period	2 years
Sinclair Broadcast Group, LLC | Equity method investee | Mobile Trucks | Mobile Trucks
Related Party Transaction [Line Items]
Amount paid					$ 5

XML

RELATED PERSON TRANSACTIONS - Sports Programming Rights (Details) - Sports Programming Rights $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($) professional_team
Related Party Transaction [Line Items]
Number of sports rights agreements assumed | professional_team	6
Amounts of transaction | $	$ 61
Sinclair Broadcast Group, LLC
Related Party Transaction [Line Items]
Number of sports rights agreements assumed | professional_team	6
Amounts of transaction | $	$ 61

XML

RELATED PERSON TRANSACTIONS - Employees (Details) - Related Party - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Employee | Jason Smith
Related Party Transaction [Line Items]
Total compensation (less than)	$ 0.2	$ 0.1	$ 0.4	$ 0.2
Employee | Ethan White
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	0.1	0.1
Employee | Amberly Thompson
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	0.1	0.1
Employee | Edward Kim
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	$ 0.1	$ 0.1
Employee | Restricted Stock | Ethan White
Related Party Transaction [Line Items]
Granted (in shares)			1,252
Vesting period			2 years
Employee | Restricted Stock | Edward Kim
Related Party Transaction [Line Items]
Granted (in shares)			516	302
Vesting period			2 years	2 years
Vice President | Frederick Smith
Related Party Transaction [Line Items]
Total compensation (less than)	0.2	0.2	$ 0.4	$ 0.4
Director | J. Duncan Smith
Related Party Transaction [Line Items]
Total compensation (less than)	0.2	0.2	0.4	0.4
Sinclair Broadcast Group, LLC | Employee | Jason Smith
Related Party Transaction [Line Items]
Total compensation (less than)	0.2	0.1	0.4	0.2
Sinclair Broadcast Group, LLC | Employee | Ethan White
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	0.1	0.1
Sinclair Broadcast Group, LLC | Employee | Amberly Thompson
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	0.1	0.1
Sinclair Broadcast Group, LLC | Employee | Edward Kim
Related Party Transaction [Line Items]
Total compensation (less than)	0.1	0.1	$ 0.1	$ 0.1
Sinclair Broadcast Group, LLC | Employee | Restricted Stock | Ethan White
Related Party Transaction [Line Items]
Granted (in shares)			1,252
Vesting period			2 years
Sinclair Broadcast Group, LLC | Employee | Restricted Stock | Edward Kim
Related Party Transaction [Line Items]
Granted (in shares)			516	302
Vesting period			2 years	2 years
Sinclair Broadcast Group, LLC | Vice President | Frederick Smith
Related Party Transaction [Line Items]
Total compensation (less than)	0.2	0.2	$ 0.4	$ 0.4
Sinclair Broadcast Group, LLC | Director | J. Duncan Smith
Related Party Transaction [Line Items]
Total compensation (less than)	$ 0.2	$ 0.2	$ 0.4	$ 0.4

XML

FAIR VALUE MEASUREMENTS - Schedule of Carrying Value and Fair Value of Notes and Debentures (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 07, 2023	Dec. 31, 2022
FAIR VALUE MEASUREMENTS:
Investments in equity securities	$ 186,000,000		$ 186,000,000			$ 234,000,000
Debt discount and deferred financing costs	$ 51,000,000		$ 51,000,000			56,000,000
Interest Rate Swap
FAIR VALUE MEASUREMENTS:
Notional amount					$ 600,000,000
Fixed interest rate					3.90%
Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	5.50%		5.50%
Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	5.125%		5.125%
Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	4.125%		4.125%
Bally's
FAIR VALUE MEASUREMENTS:
Option purchase price, minimum (in dollars per share)			$ 30
Option purchase price, maximum (in dollars per share)			$ 45
Bally's | Options and Warrants
FAIR VALUE MEASUREMENTS:
Measurement adjustments	$ (17,000,000)	$ (74,000,000)	$ (17,000,000)	$ (130,000,000)
Level 1 | Face Value
FAIR VALUE MEASUREMENTS:
Deferred compensation assets	43,000,000		43,000,000			41,000,000
Deferred compensation liabilities	40,000,000		40,000,000			35,000,000
Level 1 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	5,000,000		5,000,000			6,000,000
Deferred compensation assets	43,000,000		43,000,000			41,000,000
Deferred compensation liabilities	40,000,000		40,000,000			35,000,000
Level 1 | Fair Value | Money market funds
FAIR VALUE MEASUREMENTS:
Money market funds	523,000,000		523,000,000			741,000,000
Level 2 | Face Value | Debt of variable interest entities
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	7,000,000		7,000,000			8,000,000
Level 2 | Face Value | Debt of non-media subsidiaries
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	16,000,000		16,000,000			16,000,000
Level 2 | Face Value | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	485,000,000		485,000,000			500,000,000
Level 2 | Face Value | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	278,000,000		278,000,000			282,000,000
Level 2 | Face Value | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	737,000,000		737,000,000			750,000,000
Level 2 | Face Value | Term Loan | Term Loan B-2, due September 30, 2026
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	1,251,000,000		1,251,000,000			1,258,000,000
Level 2 | Face Value | Term Loan | Term Loan B-3, due April 1, 2028
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	725,000,000		725,000,000			729,000,000
Level 2 | Face Value | Term Loan | Term Loan B-4, due April 21, 2029
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	743,000,000		743,000,000			746,000,000
Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	123,000,000		123,000,000			153,000,000
Level 2 | Fair Value | Debt of variable interest entities
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	7,000,000		7,000,000			8,000,000
Level 2 | Fair Value | Debt of non-media subsidiaries
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	16,000,000		16,000,000			16,000,000
Level 2 | Fair Value | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	281,000,000		281,000,000			347,000,000
Level 2 | Fair Value | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	237,000,000		237,000,000			230,000,000
Level 2 | Fair Value | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	487,000,000		487,000,000			560,000,000
Level 2 | Fair Value | Term Loan | Term Loan B-2, due September 30, 2026
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	1,110,000,000		1,110,000,000			1,198,000,000
Level 2 | Fair Value | Term Loan | Term Loan B-3, due April 1, 2028
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	584,000,000		584,000,000			692,000,000
Level 2 | Fair Value | Term Loan | Term Loan B-4, due April 21, 2029
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	559,000,000		559,000,000			709,000,000
Level 2 | Fair Value | Interest Rate Swap
FAIR VALUE MEASUREMENTS:
Interest rate swap	8,000,000		8,000,000			0
Level 3 | Face Value | Options and Warrants
FAIR VALUE MEASUREMENTS:
Measurement adjustments	(17,000,000)	(74,000,000)	(17,000,000)	(130,000,000)
Level 3 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	58,000,000		58,000,000			75,000,000
Sinclair Broadcast Group, LLC
FAIR VALUE MEASUREMENTS:
Investments in equity securities						234,000,000
Debt discount and deferred financing costs	$ 51,000,000		$ 51,000,000			56,000,000
Sinclair Broadcast Group, LLC | Interest Rate Swap
FAIR VALUE MEASUREMENTS:
Notional amount					$ 600,000,000
Fixed interest rate					3.90%
Sinclair Broadcast Group, LLC | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	5.50%		5.50%
Sinclair Broadcast Group, LLC | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	5.125%		5.125%
Sinclair Broadcast Group, LLC | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Interest rate (as a percent)	4.125%		4.125%
Sinclair Broadcast Group, LLC | Bally's
FAIR VALUE MEASUREMENTS:
Option purchase price, minimum (in dollars per share)			$ 30
Option purchase price, maximum (in dollars per share)			$ 45
Sinclair Broadcast Group, LLC | Bally's | Options and Warrants
FAIR VALUE MEASUREMENTS:
Measurement adjustments	$ (25,000,000)	(74,000,000)	$ (25,000,000)	(130,000,000)
Sinclair Broadcast Group, LLC | Level 1 | Face Value
FAIR VALUE MEASUREMENTS:
Deferred compensation assets	43,000,000		43,000,000			41,000,000
Deferred compensation liabilities	40,000,000		40,000,000			35,000,000
Sinclair Broadcast Group, LLC | Level 1 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	0		0			6,000,000
Deferred compensation assets	43,000,000		43,000,000			41,000,000
Deferred compensation liabilities	40,000,000		40,000,000			35,000,000
Sinclair Broadcast Group, LLC | Level 1 | Fair Value | Money market funds
FAIR VALUE MEASUREMENTS:
Money market funds	348,000,000		348,000,000			741,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Debt of variable interest entities
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	7,000,000		7,000,000			8,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Debt of non-media subsidiaries
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	0		0			16,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	485,000,000		485,000,000			500,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	278,000,000		278,000,000			282,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	737,000,000		737,000,000			750,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Term Loan | Term Loan B-2, due September 30, 2026
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	1,251,000,000		1,251,000,000			1,258,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Term Loan | Term Loan B-3, due April 1, 2028
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	725,000,000		725,000,000			729,000,000
Sinclair Broadcast Group, LLC | Level 2 | Face Value | Term Loan | Term Loan B-4, due April 21, 2029
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	743,000,000		743,000,000			746,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	0		0			153,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Debt of variable interest entities
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	7,000,000		7,000,000			8,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Debt of non-media subsidiaries
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	0		0			16,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Senior Notes | 5.500% Senior Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	281,000,000		281,000,000			347,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Senior Notes | 5.125% Senior Notes due 2027
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	237,000,000		237,000,000			230,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Senior Notes | 4.125% Senior Secured Notes due 2030
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	487,000,000		487,000,000			560,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Term Loan | Term Loan B-2, due September 30, 2026
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	1,110,000,000		1,110,000,000			1,198,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Term Loan | Term Loan B-3, due April 1, 2028
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	584,000,000		584,000,000			692,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Term Loan | Term Loan B-4, due April 21, 2029
FAIR VALUE MEASUREMENTS:
Debt fair value disclosure	559,000,000		559,000,000			709,000,000
Sinclair Broadcast Group, LLC | Level 2 | Fair Value | Interest Rate Swap
FAIR VALUE MEASUREMENTS:
Interest rate swap	8,000,000		8,000,000			0
Sinclair Broadcast Group, LLC | Level 3 | Face Value | Options and Warrants
FAIR VALUE MEASUREMENTS:
Measurement adjustments	(25,000,000)	$ (74,000,000)	(25,000,000)	$ (130,000,000)
Sinclair Broadcast Group, LLC | Level 3 | Fair Value
FAIR VALUE MEASUREMENTS:
Investments in equity securities	$ 0		$ 0			$ 75,000,000

XML

FAIR VALUE MEASUREMENTS - Schedule of Level 3 Activity (Details) - Level 3 - Face Value - Options and Warrants - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	$ 75	$ 226	$ 75	$ 282
Measurement adjustments	(17)	(74)	(17)	(130)
Fair value at end of period	58	152	58	152
Sinclair Broadcast Group, LLC
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value at beginning of period	75	226	75	282
Measurement adjustments	(25)	(74)	(25)	(130)
Transfer to Ventures	(50)		(50)
Fair value at end of period	$ 0	$ 152	$ 0	$ 152

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) $ in Millions	Jun. 30, 2023 USD ($)
5.125% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	5.125%
5.500% Senior Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	5.50%
4.125% Senior Secured Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	4.125%
Sinclair Broadcast Group, LLC
Debt Instrument [Line Items]
Consolidated total debt	$ 4,206
Sinclair Broadcast Group, LLC | Subsidiary Issuer
Debt Instrument [Line Items]
Consolidated total debt	4,206
Amount of debt guaranteed by parent	$ 4,176
Sinclair Broadcast Group, LLC | 5.125% Senior Notes due 2027 | Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	5.125%
Sinclair Broadcast Group, LLC | 5.500% Senior Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	5.50%
Sinclair Broadcast Group, LLC | 4.125% Senior Secured Notes due 2030 | Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)	4.125%

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions		Jun. 30, 2023		Dec. 31, 2022
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		$ 728		$ 884
Accounts receivable, net		582		612
Total current assets		1,506		1,683
Property and equipment, net		715		728
Goodwill		2,082		2,088
Indefinite-lived intangible assets		150		150
Total assets	[1]	6,201		6,704	[2]
Accounts payable and accrued liabilities		452		397
Current portion of long-term debt		37		38
Total current liabilities		624		608
Long-term debt		4,185		4,227
Total liabilities	[1]	5,560		5,829	[2]
Redeemable noncontrolling interests		0		194
Total SBG (deficit) equity		702		748
Noncontrolling interests in consolidated subsidiaries		(61)		(67)
Total liabilities, redeemable noncontrolling interests, and equity		6,201		6,704
Sinclair Broadcast Group, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		368		884
Accounts receivable, net		544		612
Other current assets		152		187
Total current assets		1,064		1,683
Property and equipment, net		689		728
Investment in equity of consolidated subsidiaries		0		0
Goodwill		2,016		2,088
Indefinite-lived intangible assets		123		150
Definite-lived intangible assets, net		715		946
Other long-term assets		387		1,109
Total assets		4,994	[2]	6,704
Accounts payable and accrued liabilities		378		397
Current portion of long-term debt		36		38
Other current liabilities		124		173
Total current liabilities		538		608
Long-term debt		4,170		4,227
Other long-term liabilities		758		994
Total liabilities		5,466	[2]	5,829
Redeemable noncontrolling interests		0		194
Total SBG (deficit) equity		(411)		748
Noncontrolling interests in consolidated subsidiaries		(61)		(67)
Total liabilities, redeemable noncontrolling interests, and equity		4,994		6,704
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Sinclair, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		0		47
Accounts receivable, net		0		0
Other current assets		18		32
Total current assets		18		79
Property and equipment, net		16		0
Investment in equity of consolidated subsidiaries		274		1,093
Goodwill		0		0
Indefinite-lived intangible assets		0		0
Definite-lived intangible assets, net		0		0
Other long-term assets		92		411
Total assets		400		1,583
Accounts payable and accrued liabilities		5		0
Current portion of long-term debt		0		0
Other current liabilities		4		4
Total current liabilities		9		4
Long-term debt		0		0
Other long-term liabilities		802		831
Total liabilities		811		835
Redeemable noncontrolling interests				0
Total SBG (deficit) equity		(411)		748
Noncontrolling interests in consolidated subsidiaries		0		0
Total liabilities, redeemable noncontrolling interests, and equity		400		1,583
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		368		750
Accounts receivable, net		1		0
Other current assets		55		42
Total current assets		424		792
Property and equipment, net		14		31
Investment in equity of consolidated subsidiaries		3,144		3,463
Goodwill		0		0
Indefinite-lived intangible assets		0		0
Definite-lived intangible assets, net		0		0
Other long-term assets		987		938
Total assets		4,569		5,224
Accounts payable and accrued liabilities		101		80
Current portion of long-term debt		27		28
Other current liabilities		2		8
Total current liabilities		130		116
Long-term debt		4,142		4,181
Other long-term liabilities		56		52
Total liabilities		4,328		4,349
Redeemable noncontrolling interests				0
Total SBG (deficit) equity		241		875
Noncontrolling interests in consolidated subsidiaries		0		0
Total liabilities, redeemable noncontrolling interests, and equity		4,569		5,224
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		0		1
Accounts receivable, net		526		555
Other current assets		94		159
Total current assets		620		715
Property and equipment, net		644		668
Investment in equity of consolidated subsidiaries		0		0
Goodwill		2,015		2,081
Indefinite-lived intangible assets		109		136
Definite-lived intangible assets, net		707		935
Other long-term assets		638		512
Total assets		4,733		5,047
Accounts payable and accrued liabilities		266		300
Current portion of long-term debt		6		6
Other current liabilities		114		139
Total current liabilities		386		445
Long-term debt		22		24
Other long-term liabilities		1,183		1,120
Total liabilities		1,591		1,589
Redeemable noncontrolling interests				0
Total SBG (deficit) equity		3,142		3,458
Noncontrolling interests in consolidated subsidiaries		0		0
Total liabilities, redeemable noncontrolling interests, and equity		4,733		5,047
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Non- Guarantor Subsidiaries
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		0		86
Accounts receivable, net		17		57
Other current assets		2		19
Total current assets		19		162
Property and equipment, net		17		51
Investment in equity of consolidated subsidiaries		0		0
Goodwill		1		7
Indefinite-lived intangible assets		14		14
Definite-lived intangible assets, net		36		42
Other long-term assets		119		573
Total assets		206		849
Accounts payable and accrued liabilities		8		18
Current portion of long-term debt		4		5
Other current liabilities		21		87
Total current liabilities		33		110
Long-term debt		10		26
Other long-term liabilities		166		314
Total liabilities		209		450
Redeemable noncontrolling interests				194
Total SBG (deficit) equity		62		275
Noncontrolling interests in consolidated subsidiaries		(65)		(70)
Total liabilities, redeemable noncontrolling interests, and equity		206		849
Sinclair Broadcast Group, LLC | Eliminations
CONDENSED CONSOLIDATING BALANCE SHEET
Cash and cash equivalents		0		0
Accounts receivable, net		0		0
Other current assets		(17)		(65)
Total current assets		(17)		(65)
Property and equipment, net		(2)		(22)
Investment in equity of consolidated subsidiaries		(3,418)		(4,556)
Goodwill		0		0
Indefinite-lived intangible assets		0		0
Definite-lived intangible assets, net		(28)		(31)
Other long-term assets		(1,449)		(1,325)
Total assets		(4,914)		(5,999)
Accounts payable and accrued liabilities		(2)		(1)
Current portion of long-term debt		(1)		(1)
Other current liabilities		(17)		(65)
Total current liabilities		(20)		(67)
Long-term debt		(4)		(4)
Other long-term liabilities		(1,449)		(1,323)
Total liabilities		(1,473)		(1,394)
Redeemable noncontrolling interests				0
Total SBG (deficit) equity		(3,445)		(4,608)
Noncontrolling interests in consolidated subsidiaries		4		3
Total liabilities, redeemable noncontrolling interests, and equity		$ (4,914)		$ (5,999)

[1] Our consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities.

[2] SBG's consolidated total assets as of June 30, 2023 and December 31, 2022 include total assets of variable interest entities ("VIE") of $78 million and $115 million, respectively, which can only be used to settle the obligations of the VIEs. SBG's consolidated total liabilities as of June 30, 2023 and December 31, 2022 include total liabilities of VIEs of $16 million and $18 million, respectively, for which the creditors of the VIEs have no recourse to SBG. See Note 7. Variable Interest Entities.

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Mar. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		$ 768	$ 837	$ 1,541	$ 2,125
Media programming and production expenses		413	403	811	1,161
Gain on deconsolidation of subsidiary	$ (3,357)	0	0	0	(3,357)
Total operating expenses (gains)		771	730	1,523	(1,448)
Operating (loss) income		(3)	107	18	3,573
Interest expense		(76)	(54)	(150)	(169)
Total other (expense) income		(104)	(153)	(136)	(316)
Income tax (provision) benefit		20	40	224	(647)
Net income (loss)		(87)	(6)	106	2,610
Net income attributable to the redeemable noncontrolling interests		0	(5)	4	(9)
Net income attributable to the noncontrolling interests		(2)	0	(14)	(25)
Net (loss) income attributable to Sinclair Broadcast Group		(89)	(11)	96	2,576
Comprehensive (loss) income		(78)	(6)	112	2,613
Sinclair Broadcast Group, LLC
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		743	837	1,516	2,125
Media programming and production expenses		397	403	795	1,161
Selling, general and administrative expenses		242	233	491	500
Gain on deconsolidation of subsidiary	$ (3,357)	0	0	0	(3,357)
Depreciation, amortization and other operating expenses		100	94	205	248
Total operating expenses (gains)		739	730	1,491	(1,448)
Operating (loss) income		4	107	25	3,573
Equity in (loss) earnings of consolidated subsidiaries		0	0	0	0
Interest expense		(76)	(54)	(150)	(169)
Other (expense) income		(53)	(99)	(11)	(147)
Total other (expense) income		(129)	(153)	(161)	(316)
Income tax (provision) benefit		26	40	230	(647)
Net income (loss)		(99)	(6)	94	2,610
Net income attributable to the redeemable noncontrolling interests		0	(5)	4	(9)
Net income attributable to the noncontrolling interests		(2)	0	(14)	(25)
Net (loss) income attributable to Sinclair Broadcast Group		(101)	(11)	84	2,576
Comprehensive (loss) income		(90)	(6)	100	2,613
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Sinclair, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		0	0	0	0
Media programming and production expenses		0	0	0	0
Selling, general and administrative expenses		13	3	38	6
Gain on deconsolidation of subsidiary					(3,357)
Depreciation, amortization and other operating expenses		1	1	2	1
Total operating expenses (gains)		14	4	40	(3,350)
Operating (loss) income		(14)	(4)	(40)	3,350
Equity in (loss) earnings of consolidated subsidiaries		(88)	(12)	119	(50)
Interest expense		0	0	0	(4)
Other (expense) income		(1)	6	(4)	10
Total other (expense) income		(89)	(6)	115	(44)
Income tax (provision) benefit		2	(1)	9	(730)
Net income (loss)		(101)	(11)	84	2,576
Net income attributable to the redeemable noncontrolling interests			0	0	0
Net income attributable to the noncontrolling interests		0		0	0
Net (loss) income attributable to Sinclair Broadcast Group		(101)	(11)	84	2,576
Comprehensive (loss) income		(101)	(11)	84	2,576
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		15	11	25	40
Media programming and production expenses		4	2	7	2
Selling, general and administrative expenses		49	38	84	86
Gain on deconsolidation of subsidiary					0
Depreciation, amortization and other operating expenses		1	1	2	3
Total operating expenses (gains)		54	41	93	91
Operating (loss) income		(39)	(30)	(68)	(51)
Equity in (loss) earnings of consolidated subsidiaries		54	119	123	219
Interest expense		(75)	(53)	(148)	(97)
Other (expense) income		17	(2)	25	(1)
Total other (expense) income		(4)	64	0	121
Income tax (provision) benefit		19	10	38	30
Net income (loss)		(24)	44	(30)	100
Net income attributable to the redeemable noncontrolling interests			0	0	0
Net income attributable to the noncontrolling interests		0		0	0
Net (loss) income attributable to Sinclair Broadcast Group		(24)	44	(30)	100
Comprehensive (loss) income		(15)	44	(24)	100
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		713	820	1,452	1,611
Media programming and production expenses		377	383	753	745
Selling, general and administrative expenses		181	206	368	405
Gain on deconsolidation of subsidiary					0
Depreciation, amortization and other operating expenses		85	84	167	168
Total operating expenses (gains)		643	673	1,288	1,318
Operating (loss) income		70	147	164	293
Equity in (loss) earnings of consolidated subsidiaries		0	0	0	0
Interest expense		0	0	(1)	(1)
Other (expense) income		0	0	0	3
Total other (expense) income		0	0	(1)	2
Income tax (provision) benefit		(15)	(27)	(38)	(74)
Net income (loss)		55	120	125	221
Net income attributable to the redeemable noncontrolling interests			0	0	0
Net income attributable to the noncontrolling interests		0		0	0
Net (loss) income attributable to Sinclair Broadcast Group		55	120	125	221
Comprehensive (loss) income		55	120	125	221
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Non- Guarantor Subsidiaries
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		33	46	76	577
Media programming and production expenses		27	36	61	448
Selling, general and administrative expenses		4	6	9	69
Gain on deconsolidation of subsidiary					0
Depreciation, amortization and other operating expenses		15	12	37	82
Total operating expenses (gains)		46	54	107	599
Operating (loss) income		(13)	(8)	(31)	(22)
Equity in (loss) earnings of consolidated subsidiaries		0	0	0	0
Interest expense		2	(4)	(1)	(79)
Other (expense) income		(69)	(103)	(32)	(153)
Total other (expense) income		(67)	(107)	(33)	(232)
Income tax (provision) benefit		20	58	221	127
Net income (loss)		(60)	(57)	157	(127)
Net income attributable to the redeemable noncontrolling interests			(5)	4	(9)
Net income attributable to the noncontrolling interests		(2)		(14)	(25)
Net (loss) income attributable to Sinclair Broadcast Group		(62)	(62)	147	(161)
Comprehensive (loss) income		(60)	(57)	157	(124)
Sinclair Broadcast Group, LLC | Eliminations
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
Total revenues		(18)	(40)	(37)	(103)
Media programming and production expenses		(11)	(18)	(26)	(34)
Selling, general and administrative expenses		(5)	(20)	(8)	(66)
Gain on deconsolidation of subsidiary					0
Depreciation, amortization and other operating expenses		(2)	(4)	(3)	(6)
Total operating expenses (gains)		(18)	(42)	(37)	(106)
Operating (loss) income		0	2	0	3
Equity in (loss) earnings of consolidated subsidiaries		34	(107)	(242)	(169)
Interest expense		(3)	3	0	12
Other (expense) income		0	0	0	(6)
Total other (expense) income		31	(104)	(242)	(163)
Income tax (provision) benefit		0	0	0	0
Net income (loss)		31	(102)	(242)	(160)
Net income attributable to the redeemable noncontrolling interests			0	0	0
Net income attributable to the noncontrolling interests		0		0	0
Net (loss) income attributable to Sinclair Broadcast Group		31	(102)	(242)	(160)
Comprehensive (loss) income		$ 31	$ (102)	$ (242)	$ (160)

XML

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$ 142	$ 207
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	(40)	(45)
Deconsolidation of subsidiary cash	0	(315)
Purchases of investments	(39)	(61)
Distributions from investments	204	81
Other, net	4	11
Net cash flows from (used in) investing activities	129	(329)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing	0	728
Repayments of notes payable, commercial bank financing, and finance leases	(38)	(845)
Repurchase of outstanding Class A Common Stock	(153)	(104)
Dividends paid on Class A and Class B Common Stock	(34)	(36)
Dividends paid on redeemable subsidiary preferred equity	0	(3)
Redemption of redeemable subsidiary preferred equity	(190)	0
Distributions to noncontrolling interests, net	(8)	(5)
Other, net	(4)	(12)
Net cash flows used in financing activities	(427)	(277)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(156)	(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884	819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	728	420
Reportable Legal Entities | Sinclair, Inc.
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Other, net		0
Reportable Legal Entities | Sinclair Television Group, Inc.
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Other, net		0
Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Other, net		7
Reportable Legal Entities | Non- Guarantor Subsidiaries
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Other, net		4
Eliminations
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Other, net		0
Sinclair Broadcast Group, LLC
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	122	207
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	(41)	(45)
Deconsolidation of subsidiary cash	0	(315)
Purchases of investments	(37)	(61)
Distributions from investments	204	81
Other, net	4	11
Net cash flows from (used in) investing activities	130	(329)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing	0	728
Repayments of notes payable, commercial bank financing, and finance leases	(37)	(845)
Repurchase of outstanding Class A Common Stock	(153)	(104)
Dividends paid on Class A and Class B Common Stock	(18)	(36)
Dividends paid on redeemable subsidiary preferred equity	0	(3)
Redemption of redeemable subsidiary preferred equity	(190)	0
Distributions to member	(360)	0
Distributions to noncontrolling interests, net	(7)	(5)
Increase (decrease) in intercompany payables	0	0
Other, net	(3)	(12)
Net cash flows used in financing activities	(768)	(277)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(516)	(399)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	884	819
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	368	420
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Sinclair, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	(74)	(111)
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	0	0
Deconsolidation of subsidiary cash		0
Purchases of investments	(4)	(44)
Distributions from investments	196	60
Other, net	0
Net cash flows from (used in) investing activities	192	16
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing		0
Repayments of notes payable, commercial bank financing, and finance leases	0	0
Repurchase of outstanding Class A Common Stock	(153)	(104)
Dividends paid on Class A and Class B Common Stock	(18)	(36)
Dividends paid on redeemable subsidiary preferred equity		0
Redemption of redeemable subsidiary preferred equity	0
Distributions to member	(250)
Distributions to noncontrolling interests, net	0	0
Increase (decrease) in intercompany payables	259	269
Other, net	(3)	(4)
Net cash flows used in financing activities	(165)	125
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(47)	30
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	47	2
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	0	32
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Sinclair Television Group, Inc.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	(115)	(96)
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	(2)	(2)
Deconsolidation of subsidiary cash		0
Purchases of investments	0	(1)
Distributions from investments	0	0
Other, net	0
Net cash flows from (used in) investing activities	(2)	(3)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing		728
Repayments of notes payable, commercial bank financing, and finance leases	(33)	(841)
Repurchase of outstanding Class A Common Stock	0	0
Dividends paid on Class A and Class B Common Stock	0	0
Dividends paid on redeemable subsidiary preferred equity		0
Redemption of redeemable subsidiary preferred equity	0
Distributions to member	0
Distributions to noncontrolling interests, net	0	0
Increase (decrease) in intercompany payables	(232)	248
Other, net	0	(8)
Net cash flows used in financing activities	(265)	127
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(382)	28
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	750	316
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	368	344
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Guarantor Subsidiaries and KDSM, LLC
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	91	616
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	(38)	(43)
Deconsolidation of subsidiary cash		0
Purchases of investments	(21)	(3)
Distributions from investments	0	10
Other, net	3
Net cash flows from (used in) investing activities	(56)	(29)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing		0
Repayments of notes payable, commercial bank financing, and finance leases	(3)	(3)
Repurchase of outstanding Class A Common Stock	0	0
Dividends paid on Class A and Class B Common Stock	0	0
Dividends paid on redeemable subsidiary preferred equity		0
Redemption of redeemable subsidiary preferred equity	0
Distributions to member	0
Distributions to noncontrolling interests, net	0	0
Increase (decrease) in intercompany payables	(33)	(585)
Other, net	0	0
Net cash flows used in financing activities	(36)	(588)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(1)	(1)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	1	2
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	0	1
Sinclair Broadcast Group, LLC | Reportable Legal Entities | Non- Guarantor Subsidiaries
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	221	(206)
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	(2)	(2)
Deconsolidation of subsidiary cash		(315)
Purchases of investments	(12)	(13)
Distributions from investments	8	11
Other, net	1
Net cash flows from (used in) investing activities	(5)	(315)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing		0
Repayments of notes payable, commercial bank financing, and finance leases	(1)	(1)
Repurchase of outstanding Class A Common Stock	0	0
Dividends paid on Class A and Class B Common Stock	0	0
Dividends paid on redeemable subsidiary preferred equity		(3)
Redemption of redeemable subsidiary preferred equity	(190)
Distributions to member	(110)
Distributions to noncontrolling interests, net	(7)	(5)
Increase (decrease) in intercompany payables	6	74
Other, net	0	0
Net cash flows used in financing activities	(302)	65
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(86)	(456)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	86	499
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	0	43
Sinclair Broadcast Group, LLC | Eliminations
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	(1)	4
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Acquisition of property and equipment	1	2
Deconsolidation of subsidiary cash		0
Purchases of investments	0	0
Distributions from investments	0	0
Other, net	0
Net cash flows from (used in) investing activities	1	2
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Proceeds from notes payable and commercial bank financing		0
Repayments of notes payable, commercial bank financing, and finance leases	0	0
Repurchase of outstanding Class A Common Stock	0	0
Dividends paid on Class A and Class B Common Stock	0	0
Dividends paid on redeemable subsidiary preferred equity		0
Redemption of redeemable subsidiary preferred equity	0
Distributions to member	0
Distributions to noncontrolling interests, net	0	0
Increase (decrease) in intercompany payables	0	(6)
Other, net	0	0
Net cash flows used in financing activities	0	(6)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	0	0
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	0	0
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$ 0	$ 0