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.