Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of September 30, 2014

(in thousands)

	LIN Media LLC		LIN Television Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	2,138	$	19,066	$	1,150	$	1,028	$	—		$	23,382
Marketable securities	—		174		—		—		—			174
Accounts receivable, net	—		79,511		43,208		22,651		—			145,370
Deferred income tax assets	—		3,492		1,864		40		—			5,396
Other current assets	—		14,963		2,518		1,615		—			19,096
Total current assets	2,138		117,206		48,740		25,334		—			193,418
Property and equipment, net	—		173,197		38,630		2,551		—			214,378
Deferred financing costs	—		14,002		—		73		—			14,075
Goodwill	—		154,079		30,328		11,014		—			195,421
Broadcast licenses	—		—		448,361		42,701		—			491,062
Other intangible assets, net	—		22,083		14,389		8,258		—			44,730
Advances to consolidated subsidiaries	1,998		8,606		932,266		—		(942,870		)	—
Investment in consolidated subsidiaries	91,281		1,470,786		—		—		(1,562,067		)	—
Other assets	—		52,569		3,051		951		(44,444		)	12,127
Total assets	$	95,417	$	2,012,528	$	1,515,765	$	90,882	$	(2,549,381	)	$	1,165,211
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	19,137	$	—	$	1,246	$	—		$	20,383
Accounts payable	—		5,473		7,157		2,855		—			15,485
Income taxes payable	—		15		243		—		—			258
Accrued expenses	—		50,389		10,501		3,307		—			64,197
Program obligations	—		5,334		1,108		986		—			7,428
Total current liabilities	—		80,348		19,009		8,394		—			107,751
Long-term debt, excluding current portion	—		869,759		—		2,172		—			871,931
Deferred income tax liabilities	—		13,844		36,209		659		—			50,712
Program obligations	—		1,815		126		1,000		—			2,941
Intercompany liabilities	—		934,264		—		8,606		(942,870		)	—
Other liabilities	—		21,217		77		44,444		(44,444		)	21,294
Total liabilities	—		1,921,247		55,421		65,275		(987,314		)	1,054,629
Redeemable noncontrolling interest	—		—		—		15,165		—			15,165
												—
Total shareholders’ equity (deficit)	95,417		91,281		1,460,344		10,442		(1,562,067		)	95,417
Total liabilities, redeemable noncontrolling interest and shareholders’ equity (deficit)	$	95,417	$	2,012,528	$	1,515,765	$	90,882	$	(2,549,381	)	$	1,165,211

Condensed Consolidating Balance Sheet

As of December 31, 2013

(in thousands)

	LIN Media LLC		LIN Television Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	10,313	$	3	$	2,209	$	—		$	12,525
Accounts receivable, net	—		88,905		39,416		16,988		—			145,309
Deferred income tax assets	—		5,818		1,080		—		—			6,898
Other current assets	—		12,264		1,049		1,888		—			15,201
Total current assets	—		117,300		41,548		21,085		—			179,933
Property and equipment, net	—		180,480		35,752		4,846		—			221,078
Deferred financing costs	—		16,357		—		91		—			16,448
Goodwill	—		169,492		18,518		15,518		—			203,528
Broadcast licenses	—		—		493,814		42,701		—			536,515
Other intangible assets, net	—		31,303		1,840		13,906		—			47,049
Advances to consolidated subsidiaries	1,900		7,764		968,728		—		(978,392		)	—
Investment in consolidated subsidiaries	87,227		1,534,600		—		—		(1,621,827		)	—
Other assets	—		52,778		2,688		1,276		(44,443		)	12,299
Total assets	$	89,127	$	2,110,074	$	1,562,888	$	99,423	$	(2,644,662	)	$	1,216,850
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	16,112	$	—	$	1,252	$	—		$	17,364
Accounts payable	—		4,185		5,339		4,478		—			14,002
Income taxes payable	—		749		671		—		—			1,420
Accrued expenses	—		42,570		6,254		2,872		—			51,696
Program obligations	—		4,711		1,013		1,303		—			7,027
Total current liabilities	—		68,327		13,277		9,905		—			91,509
Long-term debt, excluding current portion	—		924,223		—		3,105		—			927,328
Deferred income tax liabilities	—		30,013		33,824		849		—			64,686
Program obligations	—		2,505		217		1,424		—			4,146
Intercompany liabilities	—		970,628		—		7,764		(978,392		)	—
Other liabilities	—		27,151		58		44,443		(44,443		)	27,209
Total liabilities	—		2,022,847		47,376		67,490		(1,022,835		)	1,114,878
Redeemable noncontrolling interest	—		—		—		12,845		—			12,845
Total shareholders’ equity (deficit)	89,127		87,227		1,515,512		19,088		(1,621,827		)	89,127
Total liabilities, redeemable noncontrolling interest and shareholders’ equity (deficit)	$	89,127	$	2,110,074	$	1,562,888	$	99,423	$	(2,644,662	)	$	1,216,850

Schedule of Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations

For the Three Months Ended September 30, 2014

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net revenues	$	—		$	118,815		$	60,190		$	19,197	$	(6,139	)	$	192,063
Operating expenses:
Direct operating	—			40,855			26,034			12,346		(3,206		)	76,029
Selling, general and administrative	—			28,321			12,740			3,411		(166		)	44,306
Amortization of program rights	—			5,194			1,432			346		—			6,972
Corporate	352			7,583			50			544		(8		)	8,521
Depreciation	—			8,957			1,685			250		—			10,892
Amortization of intangible assets	—			2,091			931			766		—			3,788
Impairment of broadcast licenses and goodwill	—			15,414			45,453			—		—			60,867
Restructuring charge	—			846			238			—		—			1,084
Loss (gain) from asset dispositions	—			43			(2		)	1		—			42
Operating (loss) income	(352		)	9,511			(28,371		)	1,533		(2,759		)	(20,438		)
Other (income) expense:
Interest expense, net	—			14,163			(1		)	47		—			14,209
Intercompany fees and expenses	(272		)	7,478			(7,606		)	150		250			—
Other, net	—			(37		)	(731		)	—		—			(768		)
Total other (income) expense, net	(272		)	21,604			(8,338		)	197		250			13,441
(Loss) income before (benefit from) provision for income taxes	(80		)	(12,093		)	(20,033		)	1,336		(3,009		)	(33,879		)
(Benefit from) provision for income taxes	—			(204		)	(8,013		)	221		—			(7,996		)
Net (loss) income	(80		)	(11,889		)	(12,020		)	1,115		(3,009		)	(25,883		)
Equity in (loss) income from operations of consolidated subsidiaries	(26,320		)	(14,181		)	—			—		40,501			—
Net (loss) income	(26,400		)	(26,070		)	(12,020		)	1,115		37,492			(25,883		)
Net income attributable to noncontrolling interests	—			—			—			517		—			517
Net (loss) income attributable to LIN Media LLC	$	(26,400	)	$	(26,070	)	$	(12,020	)	$	598	$	37,492		$	(26,400	)

Condensed Consolidating Statement of Operations

For the Nine Months EndedSeptember 30, 2013

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net revenues	$	—		$	311,221		$	130,972		$	35,841		$	(9,586	)	$	468,448
Operating expenses:
Direct operating	—			108,313			54,886			22,825			(5,329		)	180,695
Selling, general and administrative	—			80,611			30,008			8,341			(303		)	118,657
Amortization of program rights	—			16,709			4,281			1,552			—			22,542
Corporate	277			29,770			—			—			—			30,047
Depreciation	—			27,954			5,420			1,013			—			34,387
Amortization of intangible assets	—			13,334			701			3,003			—			17,038
Restructuring charge	—			2,991			—			—			—			2,991
Loss (gain) from asset dispositions	—			193			(20		)	—			—			173
Operating (loss) income	(277		)	31,346			35,696			(893		)	(3,954		)	61,918
Other expense (income):
Interest expense, net	—			42,124			—			151			—			42,275
Share of loss in equity investments	—			25			—			—			—			25
Intercompany fees and expenses	—			24,491			(24,702		)	211			—			—
Other, net	—			2,113			1			1			—			2,115
Total other expense (income), net	—			68,753			(24,701		)	363			—			44,415
(Loss) income before (benefit from) provision for income taxes	(277		)	(37,407		)	60,397			(1,256		)	(3,954		)	17,503
(Benefit from) provision for income taxes	—			(158,607		)	24,159			(706		)	—			(135,154		)
Net (loss) income	(277		)	121,200			36,238			(550		)	(3,954		)	152,657
Equity in income (loss) from operations of consolidated subsidiaries	153,834			32,634			—			—			(186,468		)	—
Net income (loss)	153,557			153,834			36,238			(550		)	(190,422		)	152,657
Net loss attributable to noncontrolling interests	—			—			—			(900		)	—			(900		)
Net income (loss) attributable to LIN Media LLC	$	153,557		$	153,834		$	36,238		$	350		$	(190,422	)	$	153,557

Condensed Consolidating Statement of Operations

For the Nine Months EndedSeptember 30, 2014

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net revenues	$	—		$	338,293		$	172,454		$	54,597		$	(18,275	)	$	547,069
Operating expenses:
Direct operating	—			119,514			76,002			34,757			(9,323		)	220,950
Selling, general and administrative	—			85,825			38,582			13,821			(674		)	137,554
Amortization of program rights	—			14,919			4,236			1,198			—			20,353
Corporate	1,056			27,992			134			544			(8		)	29,718
Depreciation	—			26,780			4,999			886			—			32,665
Amortization of intangible assets	—			9,220			2,409			3,436			—			15,065
Impairment of broadcast licenses and goodwill	—			15,414			45,453			—			—			60,867
Restructuring charge	—			846			238			—			—			1,084
Loss (gain) from asset dispositions	—			19			133			(11		)	—			141
Operating (loss) income	(1,056		)	37,764			268			(34		)	(8,270		)	28,672
Other (income) expense:
Interest expense, net	—			42,431			(1		)	138			—			42,568
Share of loss in equity investments				100			—			—			—			100
Intercompany fees and expenses	(813		)	22,794			(23,155		)	424			750			—
Other, net	—			(131		)	(720		)	—			—			(851		)
Total other (income) expense, net	(813		)	65,194			(23,876		)	562			750			41,817
(Loss) income before (benefit from) provision for income taxes	(243		)	(27,430		)	24,144			(596		)	(9,020		)	(13,145		)
(Benefit from) provision for income taxes	—			(8,614		)	9,658			(231		)	—			813
Net (loss) income	(243		)	(18,816		)	14,486			(365		)	(9,020		)	(13,958		)
Equity in (loss) income from operations of consolidated subsidiaries	(13,173		)	6,393			—			—			6,780			—
Net (loss) income	(13,416		)	(12,423		)	14,486			(365		)	(2,240		)	(13,958		)
Net income (loss) attributable to noncontrolling interests	—			—			—			(542		)	—			(542		)
Net (loss) income attributable to LIN Media LLC	$	(13,416	)	$	(12,423	)	$	14,486		$	177		$	(2,240	)	$	(13,416	)

Condensed Consolidating Statement of Operations

For the Three Months Ended September 30, 2013

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net revenues	$	—		$	106,982		$	45,335		$	14,458		$	(3,665	)	$	163,110
Operating expenses:
Direct operating	—			37,105			17,973			9,532			(2,106		)	62,504
Selling, general and administrative	—			27,223			10,785			3,351			(40		)	41,319
Amortization of program rights	—			5,695			1,382			528			—			7,605
Corporate	277			10,405			—			—			—			10,682
Depreciation	—			9,285			1,788			356			—			11,429
Amortization of intangible assets	—			4,430			234			1,222			—			5,886
Restructuring charge	—			468			—			—			—			468
Gain from asset dispositions	—			(8		)	(1		)	—			—			(9		)
Operating (loss) income	(277		)	12,379			13,174			(531		)	(1,519		)	23,226
Other expense (income):
Interest expense, net	—			14,146			—			(67		)	(103		)	13,976
Intercompany fees and expenses	—			7,891			(8,102		)	211			—			—
Other, net	—			2,053			1			1			—			2,055
Total other expense (income), net	—			24,090			(8,101		)	145			(103		)	16,031
(Loss) income before (benefit from) provision for income taxes	(277		)	(11,711		)	21,275			(676		)	(1,416		)	7,195
(Benefit from) provision for income taxes	—			(147,671		)	8,510			(152		)	—			(139,313		)
Net (loss) income	(277		)	135,960			12,765			(524		)	(1,416		)	146,508
Equity in income (loss) from operations of consolidated subsidiaries	147,215			11,255			—			—			(158,470		)	—
Net income (loss)	146,938			147,215			12,765			(524		)	(159,886		)	146,508
Net loss attributable to noncontrolling interests	—			—			—			(430		)	—			(430		)
Net income (loss) attributable to LIN Media LLC	$	146,938		$	147,215		$	12,765		$	(94	)	$	(159,886	)	$	146,938

Schedule of Condensed Consolidating Statement of Comprehensive (Loss) Income

Condensed Consolidating Statement of Comprehensive Loss

For the Three Months Ended September 30, 2014

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net (loss) income	$	(26,400	)	$	(26,070	)	$	(12,020	)	$	1,115	$	37,492		$	(25,883	)
Amortization of pension net losses, net of tax of $113	172			172			—			—		(172		)	172
Comprehensive (loss) income	(26,228		)	(25,898		)	(12,020		)	1,115		37,320			(25,711		)
Comprehensive income attributable to noncontrolling interest	—			—			—			517		—			517
Comprehensive (loss) income attributable to LIN Media LLC	$	(26,228	)	$	(25,898	)	$	(12,020	)	$	598	$	37,320		$	(26,228	)

Condensed Consolidating Statement of Comprehensive Income

For the Nine Months EndedSeptember 30, 2013

(in thousands)

	LIN Media LLC		LIN Television Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net income (loss)	$	153,557	$	153,834	$	36,238	$	(550	)	$	(190,422	)	$	152,657
Amortization of pension net losses, net of tax of $507	777		777		—		—			(777		)	777
Comprehensive income (loss)	154,334		154,611		36,238		(550		)	(191,199		)	153,434
Comprehensive loss attributable to noncontrolling interest	—		—		—		(900		)	—			(900		)
Comprehensive income (loss) attributable to LIN Media LLC	$	154,334	$	154,611	$	36,238	$	350		$	(191,199	)	$	154,334

Condensed Consolidating Statement of Comprehensive Income

For the Three Months Ended September 30, 2013

(in thousands)

	LIN Media LLC		LIN Television Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net income (loss)	$	146,938	$	147,215	$	12,765	$	(524	)	$	(159,886	)	$	146,508
Amortization of pension net losses, net of tax of $169	259		259		—		—			(259		)	259
Comprehensive income (loss)	147,197		147,474		12,765		(524		)	(160,145		)	146,767
Comprehensive loss attributable to noncontrolling interest	—		—		—		(430		)	—			(430		)
Comprehensive income (loss) attributable to LIN Media LLC	$	147,197	$	147,474	$	12,765	$	(94	)	$	(160,145	)	$	147,197

Condensed Consolidating Statement of Comprehensive Loss

For the Nine Months EndedSeptember 30, 2014

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
Net (loss) income	$	(13,416	)	$	(12,423	)	$	14,486	$	(365	)	$	(2,240	)	$	(13,958	)
Amortization of pension net losses, net of tax of $338	517			517			—		—			(517		)	517
Comprehensive (loss) income	(12,899		)	(11,906		)	14,486		(365		)	(2,757		)	(13,441		)
Comprehensive income (loss) attributable to noncontrolling interest	—			—			—		(542		)	—			(542		)
Comprehensive (loss) income attributable to LIN Media LLC	$	(12,899	)	$	(11,906	)	$	14,486	$	177		$	(2,757	)	$	(12,899	)

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

For the Nine Months EndedSeptember 30, 2014

(in thousands)

	LIN Media LLC			LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(342	)	$	86,790		$	27,913		$	(3,228	)	$	(750	)	$	110,383
INVESTING ACTIVITIES:
Capital expenditures	—			(12,113		)	(3,610		)	(1,343		)	—			(17,066		)
Acquisition of broadcast towers	—			(7,257		)	—			—			—			(7,257		)
Payments for business combinations, net of cash acquired	—			(24,825		)	—			—			—			(24,825		)
Proceeds from the sale of assets	—			112			2			—			—			114
Contributions to equity investments	—			(100		)	—			—			—			(100		)
Marketable securities	—			(174		)	—			—			—			(174		)
Receipt of dividend	—			58,508			—			—			(58,508		)	—
Advances on intercompany borrowings	—			(4,329		)	—			—			4,329			—
Payments from intercompany borrowings	—			—			35,350			—			(35,350		)	—
Net cash provided by (used in) investing activities	—			9,822			31,742			(1,343		)	(89,529		)	(49,308		)
FINANCING ACTIVITIES:
Net proceeds on exercises of employee and director share-based compensation	2,480			—			—			—			—			2,480
Proceeds from borrowings on long-term debt	—			45,000			—			—			—			45,000
Principal payments on long-term debt	—			(96,759		)	—			(939		)	—			(97,698		)
Payment of dividend	—			(750		)	(58,508		)	—			59,258			—
Proceeds from intercompany borrowings	—			—			—			4,329			(4,329		)	—
Payments on intercompany borrowings	—			(35,350		)	—			—			35,350			—
Net cash provided by (used in)financing activities	2,480			(87,859		)	(58,508		)	3,390			90,279			(50,218		)
Net increase (decrease) in cash and cash equivalents	2,138			8,753			1,147			(1,181		)	—			10,857
Cash and cash equivalents at the beginning of the period	—			10,313			3			2,209			—			12,525
Cash and cash equivalents at the end of the period	$	2,138		$	19,066		$	1,150		$	1,028		$	—		$	23,382

Condensed Consolidating Statement of Cash Flows

For the Nine Months EndedSeptember 30, 2013

(in thousands)

	LIN Media LLC		LIN Television Corporation			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating/ Eliminating Adjustments			LIN Media LLC Consolidated
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	1,801	$	76,031		$	41,463		$	(282	)	$	(60,508	)	$	58,505
INVESTING ACTIVITIES:
Capital expenditures	—		(17,094		)	(2,372		)	(2,205		)	—			(21,671		)
Payments for business combinations, net of cash acquired	—		(10,082		)	—			—			—			(10,082		)
Proceeds from the sale of assets	—		56			20			—			—			76
Capital contributions to joint venture with NBCUniversal	—		—			(100,000		)	—			—			(100,000		)
Advances on intercompany borrowings	—		(4,400		)	—			—			4,400			—
Payments from intercompany borrowings	—		15,009			133,835			—			(148,844		)	—
Net cash (used in) provided by investing activities	—		(16,511		)	31,483			(2,205		)	(144,444		)	(131,677		)
FINANCING ACTIVITIES:
Net proceeds on exercises of employee and director share-based compensation	199		1,251			—			—			—			1,450
Tax benefit from exercises of share options	—		2,180			—			—			—			2,180
Proceeds from borrowings on long-term debt	—		101,000			—			—			—			101,000
Principal payments on long-term debt	—		(48,385		)	—			(1,009		)	—			(49,394		)
Payment of long-term debt issue costs	—		(654		)	—			—			—			(654		)
Payment of dividend	—		(2,000		)	(58,508		)	—			60,508			—
Proceeds from intercompany borrowings	—		—			—			4,400			(4,400		)	—
Payments on intercompany borrowings	—		(133,835		)	(15,009		)	—			148,844			—
Net cash (used in) provided by financing activities	199		(80,443		)	(73,517		)	3,391			204,952			54,582
Net (decrease) increase in cash and cash equivalents	2,000		(20,923		)	(571		)	904			—			(18,590		)
Cash and cash equivalents at the beginning of the period	—		44,625			573			1,109			—			46,307
Cash and cash equivalents at the end of the period	$	2,000	$	23,702		$	2		$	2,013		$	—		$	27,717