Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | SINCLAIR BROADCAST GROUP INC | |
Entity Central Index Key | 912,752 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 76,560,510 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 25,670,684 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 810,232 | $ 681,326 | |
Restricted cash, current | 226,558 | 313,110 | |
Accounts receivable, net of allowance for doubtful accounts of $2,209 and $2,590, respectively | 538,472 | 566,464 | |
Current portion of program contract costs | 42,736 | 71,387 | |
Income taxes receivable | 27,909 | 28,150 | |
Prepaid expenses and other current assets | 68,784 | 54,310 | |
Total current assets | 1,714,691 | 1,714,747 | |
Assets held for sale | 152,880 | 0 | |
Program contract costs, less current portion | 2,178 | 3,202 | |
Property and equipment, net | 654,432 | 738,298 | |
Restricted cash, less current portion | 1,505 | 1,504 | |
Goodwill | 2,021,970 | 2,124,033 | |
Indefinite-lived intangible assets | 156,629 | 159,371 | |
Definite-lived intangible assets, net | 1,729,563 | 1,801,670 | |
Other assets | 229,563 | 241,645 | |
Total assets | [1] | 6,663,411 | 6,784,470 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 356,792 | 370,403 | |
Deferred spectrum auction proceeds | 0 | 84,341 | |
Income taxes payable | 2,503 | 2,503 | |
Current portion of notes payable, capital leases and commercial bank financing | 154,944 | 161,049 | |
Current portion of program contracts payable | 77,442 | 108,053 | |
Total current liabilities | 591,681 | 726,349 | |
Liabilities held for sale | 12,210 | 0 | |
Notes payable, capital leases and commercial bank financing, less current portion | 3,875,025 | 3,887,601 | |
Program contracts payable, less current portion | 37,170 | 41,909 | |
Deferred tax liabilities | 498,719 | 515,236 | |
Other long-term liabilities | 77,063 | 79,009 | |
Total liabilities | [1] | 5,091,868 | 5,250,104 |
Commitments and contingencies (See Note 4) | |||
Shareholders' Equity: | |||
Additional paid-in capital | 1,332,432 | 1,320,298 | |
Retained earnings | 275,676 | 248,845 | |
Accumulated other comprehensive loss | (1,423) | (1,423) | |
Total Sinclair Broadcast Group shareholders’ equity | 1,607,707 | 1,568,738 | |
Noncontrolling interests | (36,164) | (34,372) | |
Total equity | 1,571,543 | 1,534,366 | |
Total liabilities and equity | 6,663,411 | 6,784,470 | |
Assets of variable interest entities | 122,500 | 130,600 | |
Liabilities of variable interest entities | 23,000 | 27,000 | |
Class A Common Stock | |||
Shareholders' Equity: | |||
Common Stock | 765 | 761 | |
Class B Common Stock | |||
Shareholders' Equity: | |||
Common Stock | $ 257 | $ 257 | |
[1] | Our consolidated total assets as of March 31, 2018 and December 31, 2017 include total assets of variable interest entities (VIEs) of $122.5 million and $130.6 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2018 and December 31, 2017 include total liabilities of VIEs of $23.0 million and $27.0 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 2,209 | $ 2,590 |
Class A Common Stock | ||
Common Stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (shares) | 500,000,000 | 500,000,000 |
Common Stock, shares issued (shares) | 76,509,574 | 76,071,145 |
Common Stock, shares outstanding (shares) | 76,509,574 | 76,071,145 |
Class B Common Stock | ||
Common Stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (shares) | 140,000,000 | 140,000,000 |
Common Stock, shares issued (shares) | 25,670,684 | 25,670,684 |
Common Stock, shares outstanding (shares) | 25,670,684 | 25,670,684 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
REVENUES: | |||
Media revenues | $ 643,651 | [1] | $ 607,057 |
Non-media revenues | 21,701 | 19,879 | |
Total revenues | 665,352 | 626,936 | |
OPERATING EXPENSES: | |||
Media production expenses | 288,549 | 258,401 | |
Media selling, general and administrative expenses | 146,899 | 124,721 | |
Amortization of program contract costs and net realizable value adjustments | 26,950 | 31,019 | |
Non-media expenses | 21,223 | 18,402 | |
Depreciation of property and equipment | 27,325 | 23,981 | |
Corporate general and administrative expenses | 24,596 | 20,576 | |
Amortization of definite-lived intangible and other assets | 43,605 | 45,554 | |
Gain on asset dispositions, net of impairment | 21,109 | 53,347 | |
Total operating expenses | 558,038 | 469,307 | |
Operating income | 107,314 | 157,629 | |
OTHER INCOME (EXPENSE): | |||
Interest expense and amortization of debt discount and deferred financing costs | (69,742) | (57,318) | |
Loss from extinguishment of debt | 0 | (1,404) | |
Loss from equity and cost method investments | (12,477) | (1,321) | |
Other income, net | 3,271 | 1,696 | |
Total other expense, net | (78,948) | (58,347) | |
Income before income taxes | 28,366 | 99,282 | |
INCOME TAX BENEFIT (PROVISION) | 15,628 | (28,579) | |
NET INCOME | 43,994 | 70,703 | |
Net income attributable to the noncontrolling interests | (871) | (13,501) | |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | $ 43,123 | $ 57,202 | |
Dividends declared per share (USD per share) | $ 0.18 | $ 0.18 | |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | |||
Basic earnings per share (USD per share) | 0.42 | 0.62 | |
Diluted earnings per share (USD per share) | $ 0.42 | $ 0.61 | |
Weighted average common shares outstanding (shares) | 101,899 | 92,630 | |
Weighted average common and common equivalent shares outstanding (shares) | 102,917 | 93,692 | |
[1] | See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies for a discussion of the adoption of the new accounting principles for revenue recognition. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 43,994 | $ 70,703 |
Comprehensive income | 43,994 | 70,703 |
Comprehensive income attributable to the noncontrolling interests | (871) | (13,501) |
Comprehensive income attributable to Sinclair Broadcast Group | $ 43,123 | $ 57,202 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Class A Common Stock | Class A Common StockCommon Stock | Class B Common Stock | Class B Common StockCommon Stock |
BALANCE (shares) at Dec. 31, 2016 | 64,558,207 | 25,670,684 | |||||||
BALANCE at Dec. 31, 2016 | $ 557,936 | $ 843,691 | $ (255,804) | $ (807) | $ (30,047) | $ 646 | $ 257 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock, net of issuance costs (shares) | 12,000,000 | ||||||||
Issuance of common stock, net of issuance costs | 487,883 | 487,763 | $ 120 | ||||||
Dividends declared and paid on Class A and Class B Common Stock | (16,257) | (16,257) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (shares) | 376,262 | ||||||||
Repurchases of Class A Common Stock | 12,342 | 12,339 | $ 3 | ||||||
Distributions to noncontrolling interests, net | (15,708) | (15,708) | |||||||
Net income | 70,703 | 57,202 | 13,501 | ||||||
BALANCE (shares) at Mar. 31, 2017 | 76,934,469 | 25,670,684 | |||||||
BALANCE at Mar. 31, 2017 | 1,096,899 | 1,343,793 | (214,859) | (807) | (32,254) | $ 769 | $ 257 | ||
BALANCE (shares) at Dec. 31, 2017 | 76,071,145 | 76,071,145 | 25,670,684 | 25,670,684 | |||||
BALANCE at Dec. 31, 2017 | 1,534,366 | 1,320,298 | 248,845 | (1,423) | (34,372) | $ 761 | $ 257 | ||
Cumulative effect of adoption of new accounting standard at Dec. 31, 2017 | 2,100 | 2,100 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends declared and paid on Class A and Class B Common Stock | (18,392) | (18,392) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (shares) | 438,429 | ||||||||
Repurchases of Class A Common Stock | 12,138 | 12,134 | $ 4 | ||||||
Distributions to noncontrolling interests, net | (2,663) | (2,663) | |||||||
Net income | 43,994 | 43,123 | 871 | ||||||
BALANCE (shares) at Mar. 31, 2018 | 76,509,574 | 76,509,574 | 25,670,684 | 25,670,684 | |||||
BALANCE at Mar. 31, 2018 | $ 1,571,543 | $ 1,332,432 | $ 275,676 | $ (1,423) | $ (36,164) | $ 765 | $ 257 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 43,994 | $ 70,703 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation of property and equipment | 27,325 | 23,981 |
Amortization of definite-lived intangible and other assets | 43,605 | 45,554 |
Amortization of program contract costs and net realizable value adjustments | 26,950 | 31,019 |
Loss on extinguishment of debt, non-cash portion | 0 | 1,404 |
Stock-based compensation expense | 6,956 | 7,571 |
Deferred tax benefit | (16,342) | (4,269) |
Gain on asset disposition, net of impairment | (20,324) | (53,347) |
Loss from equity and cost method investments | (12,593) | (1,504) |
Change in assets and liabilities, net of acquisitions: | ||
Decrease in accounts receivable | 26,504 | 1,543 |
Increase in prepaid expenses and other current assets | (18,353) | (5,539) |
Decrease in accounts payable and accrued liabilities | (8,473) | (58,945) |
Net change in net income taxes payable/receivable | 241 | 32,513 |
Payments on program contracts payable | (28,492) | (28,600) |
Other, net | 4,759 | 4,550 |
Net cash flows from operating activities | 100,943 | 69,642 |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (22,219) | (20,774) |
Acquisition of businesses, net of cash acquired | 0 | (8,000) |
Proceeds from the sale of assets | 49 | 195,149 |
Investments in equity and cost method investees | (7,750) | (3,080) |
Distributions from equity and cost method investees | 10,832 | 3,272 |
Other, net | (1,862) | (8,408) |
Net cash flows (used in) from investing activities | (20,950) | 158,159 |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 363 | 163,089 |
Repayments of notes payable, commercial bank financing and capital leases | (16,950) | (284,422) |
Net proceeds from the sale of Class A Common Stock | 0 | 487,883 |
Dividends paid on Class A and Class B Common Stock | (18,392) | (16,257) |
Other, net | (2,659) | (17,884) |
Net cash flows (used in) from financing activities | (37,638) | 332,409 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 42,355 | 560,210 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 995,940 | 260,184 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ 1,038,295 | $ 820,394 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
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 Broadcast Group, Inc. (the Company) is a diversified television broadcasting company with national reach and a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments. As of March 31, 2018 , our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 191 stations in 89 markets. These stations broadcast 603 channels as of March 31, 2018 . For the purpose of this report, these 191 stations and 603 channels are referred to as “our” stations and channels. Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and variable interest entities (VIEs) for which we are the primary beneficiary. Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities. All intercompany transactions and account balances have been eliminated in consolidation. Interim Financial Statements The consolidated financial statements for the three months ended March 31, 2018 and 2017 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 income, consolidated statement of equity, and consolidated statements of cash flows for these periods as adjusted for the adoption of recent accounting pronouncements discussed below. As permitted under the applicable rules and regulations of the Securities and Exchange Commission (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, 2017 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. Variable Interest Entities In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. We consolidate VIEs when we are the primary beneficiary. Third-party station licensees. 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. Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham). See Note 7. Related Person Transactions for more information about the arrangements with Cunningham. See Changes in the Rules of Television Ownership, Joint Sales Agreements, Retransmission Consent Negotiations, and National Ownership Cap under Note 4. Commitments and Contingencies for discussion of recent changes in Federal Communications Commission (FCC) rules related to JSAs. As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets for the periods presented were as follows (in thousands): March 31, December 31, ASSETS Current assets: Accounts receivable $ 18,764 $ 19,566 Other current assets 5,672 8,937 Total current assets 24,436 28,503 Assets held for sale 546 — Program contract costs, less current portion 469 822 Property and equipment, net 4,242 6,215 Goodwill and indefinite-lived intangible assets 15,039 15,064 Definite-lived intangible assets, net 72,186 74,442 Other assets 5,601 5,601 Total assets $ 122,519 $ 130,647 LIABILITIES Current liabilities: Other current liabilities $ 20,164 $ 23,564 Notes payable, capital leases and commercial bank financing, less current portion 21,380 23,217 Program contracts payable, less current portion 10,519 11,213 Other long-term liabilities 650 650 Total liabilities $ 52,713 $ 58,644 The amounts above represent the consolidated assets and liabilities of the VIEs described above, for which we are the primary beneficiary, and have been aggregated as they all relate to our broadcast business. Excluded from the amounts above are payments made to Cunningham under the LMAs and certain outsourcing agreements which are treated as a prepayment of the purchase price of the stations and capital leases between us and Cunningham which are eliminated in consolidation. The total payments made under these LMAs and certain JSAs as of March 31, 2018 and December 31, 2017 , which are excluded from liabilities above, were $44.8 million and $44.0 million , respectively. The total capital lease liabilities, net of capital lease assets, excluded from the above were $4.4 million and $4.5 million as of March 31, 2018 and December 31, 2017 , respectively. Also excluded from the amounts above are liabilities associated with certain outsourcing agreements and purchase options with certain VIEs totaling $117.0 million and $116.5 million as of March 31, 2018 and December 31, 2017 , respectively, 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. All the liabilities are non-recourse to us except for certain debt of VIEs which we guarantee. The risk and reward characteristics of the VIEs are similar. Other investments. We have several investments 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. We account for these entities using the equity or cost method of accounting. The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary as of March 31, 2018 and December 31, 2017 are $103.4 million and $115.7 million , respectively, and are included in other assets on our consolidated balance sheets. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to these investments are recorded in income from equity and cost method investments on our consolidated statements of operations. We recorded a loss for both the three months ended March 31, 2018 and March 31, 2017 of $9.0 million and $0.3 million , respectively. Included in these amounts is an investment in a sustainable energy company accounted for under the equity method. For the three months ended March 31, 2018, this entity had total revenues, loss from continuing operations, and net loss of $78.8 million , $5.9 million , and $6.0 million , respectively. There was no activity for the three months ended March 31, 2017. 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 May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. Since Accounting Standards Update (ASU) 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We adopted this guidance retrospectively during the first quarter of 2018. The impact of the adoption did not have a material impact on our station advertising or distribution revenue. Under the new standard, certain barter revenue and expense related to syndicated programming is no longer recognized. See Revenue Recognition below for more information on the adoption. In January 2016, the FASB issued new guidance which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new guidance requires entities to measure equity investments (except those accounted for under the equity method of accounting or those that resulted in consolidation of the investee) at fair value, with changes in fair value recognized in net income. The new standard is effective for the interim and annual periods beginning after December 15, 2017. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our financial statements. As of March 31, 2018 and December 31, 2017, equity investments without a readily determinable fair value measured utilizing the measurement alternative at cost, less impairment plus observable changes were $29.3 million and $32.3 million , respectively. During the three months ended March 31, 2018, there were no adjustments to the carrying amount of investments accounted for using the measurement alternative. We also had other investments recorded at fair value at March 31, 2018 and December 31, 2017 of $18.6 million and $12.2 million , respectively. As a result of the adoption of this guidance, we recorded a cumulative effect adjustment to retained earnings of $2.1 million for these investments, within our consolidated statement of equity. In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently, only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. The new standard is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flows. In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new guidance requires that the statement of cash flows explain changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance retrospectively during the first quarter of 2018. For the three month period ended March 31, 2017, the adoption of this guidance resulted in an increase in cash flows from investing and financing activities of $3.0 million and $1.5 million , respectively. In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our consolidated financial statements. In March 2018, the FASB issued guidance which is effective in the first quarter of 2018. The guidance is for situations where the accounting under ASC Topic 740 is incomplete for certain income tax effects of the 2017 Tax Cuts and Jobs Act (TCJA) upon issuance of an entity’s financial statements for the reporting period in which TCJA was enacted. Any provisional amounts or adjustments to provisional amounts as a result of obtaining, preparing or analyzing additional information about facts and circumstances related to the provisional amounts should be included in income (loss) from continuing operations as an adjustment to income tax expense in the reporting period the amounts are determined. As discussed in Income Taxes below, adjustments to the provisional amounts that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. Revenue Recognition On January 1, 2018, we adopted the new accounting principles for revenue recognition (ASC 606) using the retrospective adoption method. The following table presents the effects of adoption on our consolidated financial statements for the comparative period presented (in thousands): Three Months Ended March 31, 2017 As Reported Adoption of ASC 606 As Adjusted Revenues realized from station barter arrangements (a) $ 27,570 $ (22,999 ) $ 4,571 Expenses realized from barter arrangements (b) $ 23,245 $ (22,999 ) $ 246 Operating income $ 157,629 $ — $ 157,629 Net income $ 57,202 $ — $ 57,202 Basic EPS $ 0.62 $ — $ 0.62 Diluted EPS $ 0.61 $ — $ 0.61 (a) The remaining balance in the "as adjusted" column relates to trade revenue, which was unaffected by the adoption and has been reclassified to media revenue as of March 31, 2018. (b) The remaining balance in the "as adjusted" column relates to trade expense, which was unaffected by the adoption and has been reclassified to media production expense as of March 31, 2018. The following table presents our revenue disaggregated by type and segment (in thousands): Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Broadcast Other Total Broadcast Other Total Advertising revenue, net of agency commissions $ 298,912 $ 17,416 $ 316,328 $ 310,071 $ 8,379 $ 318,450 Distribution revenue 287,125 27,235 314,360 249,065 26,849 275,914 Other media and non-media revenues 9,855 24,809 34,664 10,733 21,839 32,572 Total revenues $ 595,892 $ 69,460 $ 665,352 $ 569,869 $ 57,067 $ 626,936 Advertising Revenue, net of agency commissions. We generate advertising revenue primarily from the sale of advertising spots/impressions on our broadcast television and digital platforms. Advertising revenue is recognized in the period in which the advertising spots/impressions are delivered. In arrangements where we provide audience ratings guarantees; to the extent that there is a ratings shortfall, we will defer a portion of revenue until the ratings shortfall is settled. The term of our advertising arrangements is generally less than one year and the timing between when an advertisement is aired and when payment is due is not significant. In certain circumstances we require customers to pay in advance; payments received in advance of satisfying our performance obligations are reflected as deferred revenue. Distribution Revenue. The Company generates distribution revenue through fees received from multi-channel video programming distributors (MVPDs) and virtual MVPDs for the right to distribute our stations and other properties on their respective distribution platforms. We have determined that these arrangements represent licenses of intellectual property. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a monthly amount per subscriber. We recognize revenue associated with these licensing arrangements when our customers distribute our stations and other properties on their respective distribution platforms which is when our performance obligation has been satisfied. The term between invoicing and when payment is due is not significant. Practical Expedients and Exemptions. We expense sales commissions when incurred because the period of benefit for these costs is one year or less. These costs are recorded within media selling, general and administrative expenses. 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) for distribution arrangements which are accounted for as a sales/usage based royalty. Arrangements with Multiple Performance Obligations. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price which is generally based on the prices charged to customers. Deferred Revenues. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Deferred revenues for the periods ended December 31, 2017 and March 31, 2018 were $41.3 million and $50.3 million , respectively. The increase in deferred revenues for the three months ended March 31, 2018 was primarily driven by amounts received or due in advance of satisfying our performance obligations, offset by $23.2 million of revenues recognized that were included in the deferred revenues balance as of December 31, 2017. Deferred revenues for the periods ending December 31, 2016 and March 31, 2017 were $25.7 million and $22.7 million , respectively. The increase in deferred revenues for the three months ended March 31, 2017 was primarily driven by amounts received or due in advance of satisfying our performance obligations, offset by $18.4 million of revenues recognized that were included in the deferred revenues balance as of December 31, 2016. Income Taxes Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three months ended March 31, 2018 and 2017 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 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 portion of our available state net operating loss (NOL) carryforwards, based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Our effective income tax rate for the three months ended March 31, 2018 was less than the statutory rate primarily due to a $21.3 million permanent tax benefit recognized from an IRS tax ruling on the treatment of the gain realized during the quarter from the sale of certain broadcast spectrum in connection with the Broadcast Incentive Auction, as discussed in Note 2. Acquisitions and Dispositions of Assets . Our effective income tax rate for the three months ended March 31, 2017 was less than the statutory rate primarily due to a Domestic Production Activities Deduction benefit, partially offset by a provision for state taxes and non-deductible items. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (SAB 118), as of March 31, 2018, the Company continues to analyze certain aspects of the TCJA and refine its assessment. The ultimate impact of the TCJA differ from the provisional amounts recorded by the Company at December 31, 2017 due to its continued analysis or further regulatory guidance that may be issued as a result of the TCJA. Pursuant to SAB 118, adjustments to the provisional amounts that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. Subsequent Events In May 2018, our Board of Directors declared a quarterly dividend of $0.18 per share, payable on June 15, 2018 to holders of record at the close of business on June 1, 2018. Reclassifications Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation. |
ACQUISITIONS AND DISPOSITION OF
ACQUISITIONS AND DISPOSITION OF ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITION OF ASSETS | ACQUISITIONS AND DISPOSITIONS OF ASSETS: Acquisitions Bonten. On September 1, 2017, we acquired the stock of Bonten Media Group Holdings, Inc. (Bonten) and Cunningham acquired the membership interest of Esteem Broadcasting LLC (Esteem) for an aggregate purchase price of $240.0 million plus a working capital adjustment, excluding cash acquired, of $2.2 million accounted for as a business combination under the acquisition method of accounting. As a result of the transaction, we added 14 television stations in 8 markets: Tri-Cities, TN/VA; Greensville/New Bern/Washington, NC; Chico/Redding, CA; Abilene/Sweetwater, TX; Missoula, MT; Butte/Bozeman, MT; San Angelo, TX; and Eureka, CA. Cunningham assumed the joint sales agreement under which we will provide services to 4 additional stations. The transaction was funded with cash on hand. The acquisition will expand our regional presence in several states where we already operate and help us bring improvements to small market stations. The following table summarizes the allocated fair value of acquired assets and assumed liabilities (in thousands): Accounts receivable $ 14,536 Prepaid expenses and other current assets 699 Program contract costs 988 Property and equipment 27,295 Definite-lived intangible assets 161,936 Indefinite-lived intangible assets 425 Other assets 3,609 Accounts payable and accrued liabilities (8,846 ) Program contracts payable (988 ) Deferred tax liability (66,158 ) Other long term liabilities (12,156 ) Fair value of identifiable, net assets acquired 121,340 Goodwill 120,812 Total purchase price, net of cash acquired $ 242,152 The preliminary purchase price allocation presented above is based upon management’s estimate of the fair value of the acquired assets and assumed liabilities using valuation techniques including income, cost and market approaches. The fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates. The allocation is preliminary pending a final determination of the fair value of the assets and liabilities. During the quarter ended March 31, 2018, we made certain measurement period adjustments to the initial Bonten purchase price allocation resulting in reclassifications between certain non-current assets and liabilities, including an increase to goodwill of $1.4 million . The definite-lived intangible assets of $161.9 million are comprised of network affiliations of $53.3 million and customer relationships of $108.6 million . These intangible assets will be amortized over a weighted average useful life of 15 and 14 years for network affiliations and customer relationships, respectively. Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives. Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies. We expect that goodwill deductible for tax purposes will be approximately $5.6 million . Net revenues and operating income of the Bonten stations on our consolidated statements of operations were $21.9 million and $1.6 million , respectively, for the three months ended March 31, 2018 . Other 2017 Acquisitions. During 2017, we acquired certain media assets for an aggregated purchase price of $27.4 million , less working capital of $2.7 million . The transaction was funded with cash on hand. Pro Forma Information. The following table sets forth unaudited pro forma results of operations, assuming that Bonten, along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the Other 2017 Acquisitions discussed above, as they are not material both individually and in the aggregate (in thousands, except per share data): Three months ended March 31, 2017 Total revenues $ 646,818 Net income $ 71,108 Net income attributable to Sinclair Broadcast Group $ 57,607 Basic earnings per share attributable to Sinclair Broadcast Group $ 0.62 Diluted earnings per share attributable to Sinclair Broadcast Group $ 0.61 This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments, and is not indicative of what our results would have been had we operated Bonten for the period presented because the pro forma results do not reflect expected synergies. The pro forma adjustments reflect depreciation expense and amortization of intangible assets related to the fair value adjustments of the assets acquired and any adjustments to interest expense to reflect the debt financing of the transactions, if applicable. Depreciation and amortization expense are higher than amounts recorded in the historical financial statements of the acquirees due to the fair value adjustments recorded for long-lived tangible and intangible assets in purchase accounting. Pending Acquisitions. In May 2017, we entered into a definitive agreement to acquire the stock of Tribune Media Company (Tribune). Under the terms of the agreement, Tribune stockholders will receive $35.00 in cash and 0.23 shares of Sinclair Class A common stock for each share of Tribune Class A common stock and Class B common stock they own. As part of this acquisition we would assume or refinance the debt of Tribune. Tribune owns or operates 42 television stations in 33 markets, cable network WGN America, digital multicast network Antenna TV, minority stakes in the TV Food Network, ThisTV, and CareerBuilder, and a variety of real estate assets. Tribune’s stations consists of 14 FOX, 12 CW, 6 CBS, 3 ABC, 2 NBC, 3 MyNetworkTV affiliates, and 2 independent stations. In October 2017, Tribune shareholders held a meeting and voted to approve the merger agreement and bondholders consented to the assignment of the notes under the change of control. In order to obtain necessary governmental approval for the acquisition of Tribune, and for other business purposes, we entered into definitive agreements with third parties to divest 14 Tribune television stations in 14 markets and the stations discussed in Assets and Liabilities Held for Sale below. The divestitures are expected to close on the same day as the Tribune acquisition, which we believe will be in late second quarter of 2018 or early third quarter of 2018, pending customary closing conditions, including antitrust clearance and approval by the FCC. We expect to fund the purchase price through a combination of cash on hand and fully committed debt financing. For the three months ended March 31, 2018, we incurred $4.7 million of costs in connection with this acquisition, primarily related to legal and other professional services, which we expensed as incurred and classified as corporate general and administrative expenses on our consolidated statements of operations. See Assets and Liabilities Held for Sale below for further discussion of divestitures related to this transaction. See Note 3. Notes Payable and Commercial Bank Financing for further discussion on debt financing. Dispositions Alarm Funding Sale. In March 2017, we sold Alarm Funding Associates LLC (Alarm) for $200.0 million less working capital and transaction costs of $5.0 million . We recognized a gain on the sale of Alarm of $53.0 million of which $12.3 million was attributable to noncontrolling interests and are included in the gain on asset dispositions, net of impairment and net income attributable to the noncontrolling interest, respectively, on our consolidated statements of operations. Broadcast Incentive Auction. Congress authorized the FCC to conduct so-called “incentive auctions” to auction and re-purpose broadcast television spectrum for mobile broadband use. Pursuant to the auction, television broadcasters submitted bids to receive compensation for relinquishing all or a portion of its rights in the television spectrum of their full-service and Class A stations. Low power stations were not eligible to participate in the auction and are not protected and therefore may be displaced or forced to go off the air as a result of the post-auction repacking process. We received total proceeds of $310.8 million from the auction. These proceeds are reflected as restricted cash because we directed the FCC to deposit those proceeds into qualifying trust accounts. We are limited in our ability to access this cash for a period of time not to exceed a year. For the three months ended March 31, 2018, we recognized a gain of $83.3 million which is included within gain on asset dispositions, net of impairment on our consolidated statements of operations. This gain relates to the auction proceeds associated with one market where the underlying spectrum was vacated during the first quarter of 2018. The results of the auction are not expected to produce any material change in operations of the Company as there is no change in on air operations. In the repacking process associated with the auction, the FCC has reassigned some stations to new post-auction channels. We do not expect reassignment to new channels to have a material impact on our coverage. We have received notification from the FCC that 98 of our stations have been assigned to new channels. The legislation authorizing the incentive auction provided the FCC with a $1.75 billion fund to reimburse reasonable costs incurred by stations that are reassigned to new channels in the repack. The 2018 Consolidated Appropriations Act appropriated an additional $600 million to the fund for the fiscal year 2018, and an additional $400 million for the fiscal year 2019. The 2018 Consolidated Appropriations Acts also enlarged the number of stations eligible to receive reimbursement to include low power television stations and television translator stations. We expect that the reimbursements from the fund will cover the majority of our expenses related to the repack. During the three months ended March 31, 2018, capital expenditures related to the spectrum repack was $3.4 million . Assets and Liabilities Held for Sale. We classify assets and liabilities separately on our consolidated balance sheets at the lower of carrying value or fair value less costs to sell when the criteria for held for sale classification are met. Once assets are classified as held for sale, we do not record depreciation or amortization expense. We have agreed to sell the assets of certain consolidated television stations within our broadcast segment including WXLV in Greensboro, NC; WRLH in Richmond, VA; WOLF/WQMY/WSWB in Wilkes-Barre, PA; KOKH in Oklahoma City, OK; and KDSM in Des Moines, IA. The sale is part of Sinclair’s larger acquisition of Tribune, in order to obtain necessary governmental approval of the Tribune transaction and for other business purposes. The sale of these stations is expected to close immediately prior to or immediately after the Tribune transaction. The assets of these stations are reflected as assets held for sale on our consolidated balance sheets. We have also classified one of our consolidated real estate development projects as held for sale based upon a pending transaction which is currently expected to close in 2018. The carrying value of these assets have been adjusted to fair value less costs to sell which resulted in an impairment of approximately $63.0 million which is reflected in gains/losses on asset dispositions, net of impairments within our statement of operations. The fair value of the real estate investment was determined based on both observable and unobservable inputs, including the expected sales price as supported by discounted cash flow models. Due to uncertainties in the estimation process, actual results could differ from the estimates used in our analysis. As of March 31, 2018, the major classes of assets and liabilities reported as held for sale on the accompanying consolidated balance sheets are shown below (in thousands): Current assets $ 1,778 Property and equipment 17,537 Goodwill and indefinite-lived intangible assets 104,916 Definite-lived intangible assets 28,582 Other non-current assets 67 Assets held for sale $ 152,880 Current liabilities $ 4,278 Non-current liabilities 7,932 Liabilities held for sale $ 12,210 |
NOTES PAYABLE AND COMMERCIAL BA
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | NOTES PAYABLE AND COMMERCIAL BANK FINANCING: Incremental Term B Facility related to Tribune acquisition In connection with the pending acquisition of Tribune, discussed in Note 2. Acquisitions and Dispositions of Assets , in December 2017, our wholly-owned subsidiary, Sinclair Television Group, Inc., secured the required financing for the acquisition, to be drawn at closing from issuance of $3.7 billion Term B loans, maturing in 2024 and priced at LIBOR plus 2.50% , under our Bank Credit Agreement, which will be amended at closing. The proceeds from the Term B Loans are expected to be used to purchase the outstanding shares of Tribune, refinance certain of Tribune's existing indebtedness, pay costs and expenses expected to be incurred in connection with the acquisition, and for general corporate purposes. We began to incur a ticking fee on undrawn amounts under the new term B loans beginning on January 12, 2018 of 1.25% for the first 30 days, 2.50% for the next 60 days, and LIBOR plus 2.50% thereafter. Ticking fees incurred were $17.0 million for the three months ended March 31, 2018 and are included in interest expense on our consolidated statements of operations. Notes payable and capital leases to affiliates The current portion of notes payable, capital leases, and commercial bank financing on our consolidated balance sheets includes notes payable and capital leases to affiliates of $1.7 million , net of deferred financing cost, as of both March 31, 2018 and December 31, 2017 . Notes payable, capital leases, and commercial bank financing, less current portion, on our consolidated balance sheets includes long-term notes payable and capital leases to affiliates of $12.0 million and $12.5 million , net of deferred financing cost, as of March 31, 2018 and December 31, 2017 , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: Litigation We are a 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. After reviewing developments to date with legal counsel, our management is of the opinion that none of our pending and threatened matters is material. On December 21, 2017, the FCC issued a Notice of Apparent Liability for Forfeiture proposing a $13.4 million fine for alleged violations of the FCC's sponsorship identification rules by the Company and certain of its subsidiaries. Based on a review of the current facts and circumstances, management has provided for what is believed to be a reasonable estimate of the loss exposure for this matter. We have responded to dispute the Commission's findings and the proposed fine; however, we cannot predict the outcome of any potential FCC action related to this matter. We do not believe that the ultimate outcome of this matter will have a material effect on the Company's financial statements. Changes in the Rules of Television Ownership, Local Marketing Agreements, Joint Sales Agreements, Retransmission Consent Negotiations, and National Ownership Cap Certain of our stations have entered into what have commonly been referred to as local marketing agreements or LMAs. One typical type of LMA is a programming agreement between two separately owned television stations serving the same market, whereby the licensee of one station programs substantial portions of the broadcast day and sells advertising time during such programming segments on the other licensee’s station subject to the latter licensee’s ultimate editorial and other controls. We believe these arrangements allow us to reduce our operating expenses and enhance profitability. In 1999, the FCC established a new local television ownership rule which made LMAs attributable. However, the rule grandfathered LMAs that were entered into prior to November 5, 1996, and permitted the applicable stations to continue operations pursuant to the LMAs until the conclusion of the FCC’s 2004 biennial review. The FCC stated it would conduct a case-by-case review of grandfathered LMAs and assess the appropriateness of extending the grandfathering periods. The FCC did not initiate any review of grandfathered LMAs in 2004 or as part of its subsequent quadrennial reviews. We do not know when, or if, the FCC will conduct any such review of grandfathered LMAs. Currently, all of our LMAs are grandfathered under the local television ownership rule because they were entered into prior to November 5, 1996. If the FCC were to eliminate the grandfathering of these LMAs, we would have to terminate or modify these LMAs. In February 2015, the FCC issued an order implementing certain statutorily required changes to its rules governing the duty to negotiate retransmission consent agreements in good faith. With these changes, a television broadcast station is prohibited from negotiating retransmission consent jointly with another television station in the same market unless the “stations are directly or indirectly under common de jure control permitted under the regulations of the Commission.” During a 2015 retransmission consent negotiation, a MVPD filed a complaint with the FCC accusing us of violating this rule. Although we reached agreement with the MVPD, the FCC initiated an investigation. In order to resolve the investigation and all other pending matters before the FCC's Media Bureau (including the grant of all outstanding renewals and dismissal or cancellation of all outstanding adversarial pleadings or forfeitures before the Media Bureau), the Company, on July 29, 2016, without any admission of liability, entered into a consent decree with the FCC pursuant to which the Company paid a settlement payment and agreed to be subject to ongoing compliance monitoring by the FCC for a period of 36 months . In September 2015, the FCC released a Notice of Proposed Rulemaking in response to a Congressional directive in STELAR to examine the “totality of the circumstances test” for good-faith negotiations of retransmission consent. The proposed rulemaking sought comment on new factors and evidence to consider in the FCC's evaluation of claims of bad faith negotiation, including service interruptions prior to a “marquee sports or entertainment event,” restrictions on online access to broadcast programming during negotiation impasses, broadcasters’ ability to offer bundles of broadcast signals with other broadcast stations or cable networks, and broadcasters’ ability to invoke the FCC’s exclusivity rules during service interruptions. On July 14, 2016, then-Chairman Wheeler announced that the FCC would not, at such time, proceed to adopt additional rules governing good faith negotiations of retransmission consent. No formal action has yet been taken on this Proposed Rulemaking, and we cannot predict if the full Commission will agree to terminate the Rulemaking without action. In August 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of its media ownership rules and issued an order (Ownership Order) which left most of the existing multiple ownership rules intact, but amended the rules to provide for the attribution of JSAs where two television stations are located in the same market, and a party with an attributable interest in one station sells more than 15% of the advertising time per week of the other station. JSAs existing as of March 31, 2014, were grandfathered until October 1, 2025, at which point they would have to be terminated, amended or otherwise come into compliance with the JSA attribution rule. On November 20, 2017, the FCC released an Ownership Order on Reconsideration, among other things, eliminated the JSA attribution rule. The rule changes adopted in the Ownership Order on Reconsideration became effective on February 7, 2018. A Petition for Review of the Ownership Order on Reconsideration, including the elimination of the JSA attribution rule, was filed in the U.S. Court of Appeals for the Third Circuit. On February 7, 2018, the court denied, among other things, Petitioners' request to stay the effective date of the Ownership Order on Reconsideration and instead issued a stay of the appeal for a period of 6 months. A Petition for Review of the Ownership Order on Reconsideration was subsequently filed in the U.S. District Court of Appeals for the District of Columbia Circuit, and was transferred to the Third Circuit and is subject to the stay. We cannot predict the outcome of this proceeding. If we are required to terminate or modify our LMAs or JSAs, our business could be adversely affected in several ways, including losses on investments and termination penalties. If we are required to terminate or modify our LMAs or JSAs, our business could be affected in the following ways: Losses on investments . In some cases, we own the non-license assets used by the stations we operate under LMAs and JSAs. If certain of these arrangements are no longer permitted, we could be forced to sell these assets, restructure our agreements or find another use for them. If this happens, the market for such assets may not be as good as when we purchased them and, therefore, we cannot be certain of a favorable return on our original investments. Termination penalties . If the FCC requires us to modify or terminate existing LMAs or JSAs before the terms of the agreements expire, or under certain circumstances, we elect not to extend the terms of the agreements, we may be forced to pay termination penalties under the terms of some of our agreements. Any such termination penalties could be material. On September 6, 2016, the FCC released the UHF Discount Order, eliminating the UHF Discount. The UHF discount allowed television station owners to discount the coverage of UHF stations when calculating compliance with the FCC’s national ownership cap, which prohibits a single entity from owning television stations that reach, in total, more than 39% of all the television households in the nation. All but 34 of the stations we currently own and operate, or to which we provide programming services are UHF. On April 20, 2017, the FCC acted on a Petition for Reconsideration of the UHF Discount Order and adopted the UHF Discount Order on Reconsideration which reinstated the UHF discount, which became effective June 15, 2017 and is currently in effect. The UHF Discount Order on Reconsideration is currently the subject of a Petition for Review filed in the U.S. Court of Appeals for the D.C. Circuit which is still pending. On December 18, 2017, the Commission released a Notice of Proposed Rulemaking to examine the national audience reach cap, including the UHF discount. We cannot predict the outcome of these proceedings. With the application of the UHF discount counting all our present stations we reach approximately 25% of U.S. households. With the pending Tribune transaction, absent divestitures, we would exceed the 39% cap, even with the application of the UHF discount. We have filed FCC applications to divest stations in certain markets, which would bring our national audience reach under the 39% cap (including the UHF discount) upon closing. Changes to the national ownership cap could limit our ability to make television station acquisitions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
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 thousands): Three Months Ended 2018 2017 Income (Numerator) Net income $ 43,994 $ 70,703 Net income attributable to noncontrolling interests (871 ) (13,501 ) Numerator for basic and diluted earnings per common share available to common shareholders $ 43,123 $ 57,202 Shares (Denominator) Weighted-average common shares outstanding 101,899 92,630 Dilutive effect of stock-settled appreciation rights and outstanding stock options 1,018 1,062 Weighted-average common and common equivalent shares outstanding 102,917 93,692 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 2018 2017 Weighted-average stock-settled appreciation rights and outstanding stock options excluded 500 — |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA: We measure segment performance based on operating income (loss). Our broadcast segment includes stations in 89 markets located throughout the continental United States. Other primarily consists of original networks and content, non-broadcast digital and internet solutions, technical services, and other non-media investments. All of our businesses are located within the United States. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. Other and Corporate are not reportable segments but are included for reconciliation purposes. We had approximately $144.0 million and $165.8 million of intercompany loans between the broadcast segment, other, and corporate as of March 31, 2018 and 2017 , respectively. We had $3.8 million and $6.0 million in intercompany interest expense related to intercompany loans between the broadcast segment, other, and corporate for the three months ended March 31, 2018 and 2017 , respectively. Segment financial information is included in the following tables for the periods presented (in thousands): For the three months ended March 31, 2018 Broadcast Other Corporate Consolidated Revenue $ 595,892 $ 69,460 $ — $ 665,352 Depreciation of property and equipment 25,399 1,906 20 27,325 Amortization of definite-lived intangible assets and other assets 38,471 5,134 — 43,605 Amortization of program contract costs and net realizable value adjustments 26,950 — — 26,950 General and administrative overhead expenses 21,744 255 2,597 24,596 (Gain) on asset dispositions, net of impairment (84,100 ) (d) 62,991 (c) — (21,109 ) Operating income (loss) 176,166 (d) (66,235 ) (c) (2,617 ) 107,314 Interest expense 1,372 202 68,168 69,742 Loss from equity and cost method investments — (12,477 ) — (12,477 ) Assets 5,096,281 685,140 881,990 6,663,411 For the three months ended March 31, 2017 Broadcast Other Corporate Consolidated Revenue (b) $ 569,869 $ 57,067 $ — $ 626,936 Depreciation of property and equipment 21,946 1,769 266 23,981 Amortization of definite-lived intangible assets and other assets 38,326 7,228 — 45,554 Amortization of program contract costs and net realizable value adjustments 31,019 — — 31,019 General and administrative overhead expenses 18,992 288 1,296 20,576 (Gain) on asset dispositions, net of impairment (357 ) (52,990 ) (a) — (53,347 ) Operating income (loss) 114,544 44,649 (a) (1,564 ) 157,629 Interest expense 1,366 1,213 54,739 57,318 Loss from equity and cost method investments — (1,321 ) — (1,321 ) (a) Includes gain on the sale of Alarm of $53.0 million of which $12.3 million was attributable to noncontrolling interests. See Note 2. Acquisitions and Dispositions of Assets . (b) Revenue has been adjusted for the adoption of ASC 606. See Note 1. Nature of Operations and Summary of Significant Accounting Policies . (c) Includes a $63.0 million impairment to the carrying value of a consolidated real estate venture as discussed in Note 2. Acquisitions and Dispositions of Assets . (d) Includes a gain of $83.3 million related to the auction proceeds as discussed in Note 2. Acquisitions and Dispositions of Assets . |
RELATED PERSON TRANSACTIONS
RELATED PERSON TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
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 the 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 Cunningham Communications Inc., Keyser Investment Group, Gerstell Development Limited Partnership, and Beaver Dam, LLC (entities owned by the controlling shareholders). Lease payments made to these entities were $1.4 million for both the three months ended March 31, 2018 and 2017 . Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of $0.4 million and $0.5 million for the three months ended March 31, 2018 and 2017 , 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 Eureka, California; KCVU-TV Chico-Redding, California; WPFO-TV Portland, Maine; and KRNV-DT/KENV-DT Reno, Nevada/Salt Lake City, Utah (collectively, the Cunningham Stations). Certain of our stations provide services to these Cunningham Stations pursuant to LMAs or JSAs and SSAs. See Note 1. Nature of Operations and Summary of Significant Accounting Policies , for further discussion of the scope of services provided under these types of arrangements. We have jointly and severally, unconditionally and irrevocably guaranteed the $53.6 million of Cunningham debt, of which $10.8 million , net of deferred financing cost, is consolidated through VIE arrangements. Up until January 2018, when purchased by an unrelated party after receiving FCC approval, the voting stock of the Cunningham Stations was owned by the estate of Carolyn C. Smith, the mother of our controlling shareholders. All of the non-voting stock 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 discussed further below. 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, 2023 and we have two additional 5 -year renewal terms 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 and (ii) $5.0 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 remaining aggregate purchase price of these stations as of March 31, 2018 was approximately $53.6 million . Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and own a purchase option to acquire for $0.2 million . We paid Cunningham, under these agreements, $2.6 million and $2.0 million for the three months ended March 31, 2018 and 2017 , respectively. In September 2017, Cunningham acquired the membership interest of Esteem Broadcasting in connection with our acquisition of Bonten Media Group, as discussed in Note 2. Acquisitions and Dispositions of Assets . As a result of the transaction, Cunningham assumed the joint sales agreement under which we will provide services to four stations; WEMT-TV, WYDO-TV, and KBVU-TV/KCVU-TV. The agreements with KBVU-TV/KCVU-TV, WBSF-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, WYDO-TV, and KRNV-DT/KENV-DT expire in December 2020, November 2021, May 2023, August 2023, December 2023, August 2025, and November 2021, respectively, and each has renewal provisions for successive eight year periods. We earned $13.4 million and $1.4 million from the services we performed for these stations for the three months ended March 31, 2018 and 2017 , respectively. 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 on our consolidated statement of operations. Our consolidated revenues related to the Cunningham Stations include $37.6 million and $26.2 million for the three months ended March 31, 2018 and 2017 , respectively. In April 2016, we entered into an agreement with Cunningham to provide master control equipment and provide master control services to a station in Johnstown, PA with which they have an LMA that expires in April 2019 . Under the agreement, Cunningham paid us an initial fee of $0.7 million and pays us $0.2 million annually for master control services plus the cost to maintain and repair the equipment. Also, in August 2016, we entered into an agreement, expiring October 2021, with Cunningham to provide a news share service with their station in Johnstown, PA beginning in October 2016 for an annual fee of $1.0 million . Atlantic Automotive Corporation We sell advertising time to Atlantic Automotive Corporation (Atlantic Automotive), a holding company that owns automobile dealerships 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, Atlantic Automotive. We received payments for advertising totaling less than $0.1 million and $0.1 million for the three months ended March 31, 2018 and 2017 , respectively. Additionally, Atlantic Automotive leased office space owned by one of our consolidated real estate ventures in Towson, MD. In May 2017, our consolidated real estate ventures sold their investment. Atlantic Automotive paid $0.3 million in rent for the three months ended March 31, 2017 . Leased property by real estate ventures Certain of our real estate ventures have entered into property leases with entities owned by David D. Smith. Total rent received under these leases was $0.1 million and $0.2 million for the three months ended March 31, 2018 and 2017 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
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 notes and debentures for the periods presented (in thousands): As of March 31, 2018 As of December 31, 2017 Face Value (a) Fair Value Face Value (a) Fair Value Level 2: 6.125% Senior Unsecured Notes due 2022 $ 500,000 $ 512,500 $ 500,000 $ 515,535 5.875% Senior Unsecured Notes due 2026 350,000 346,500 350,000 363,475 5.625% Senior Unsecured Notes due 2024 550,000 545,875 550,000 568,205 5.375% Senior Unsecured Notes due 2021 600,000 605,250 600,000 610,440 5.125% Senior Unsecured Notes due 2027 400,000 371,000 400,000 396,088 Term Loan A-1 111,354 111,354 117,370 117,370 Term Loan A-2 108,968 108,968 113,327 113,327 Term Loan B 1,352,875 1,356,257 1,356,300 1,357,995 Debt of variable interest entities 28,530 28,530 29,614 29,614 Debt of other operating divisions 24,476 24,476 25,238 25,238 (a) Amounts are carried on our consolidated balance sheets net of debt discount and deferred financing cost, which are excluded in the above table, of $38.2 million and $39.0 million as of March 31, 2018 and December 31, 2017 , respectively. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS: STG, a wholly-owned subsidiary and the television operating subsidiary of Sinclair Broadcast Group, Inc. (SBG), is the primary obligor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, 5.875% Notes, and 5.125% Notes. Our Class A Common Stock and Class B Common Stock as of March 31, 2018 , were obligations or securities of SBG and not obligations or securities of STG. SBG is a guarantor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, 5.875% Notes, 6.125% Notes, and 5.125% Notes. As of March 31, 2018 , our consolidated total debt, net of deferred financing costs and debt discounts, of $4,030.0 million included $4,008.3 million related to STG and its subsidiaries of which SBG guaranteed $3,963.7 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 consolidated statements of cash flows of SBG, STG, KDSM, LLC, and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG and the eliminations necessary to arrive at our information on a consolidated basis. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The consolidating financial statements for the three months ending March 31, 2017, have been revised for the adoption of ASC 606 as discussion under Recent Accounting Pronouncements and Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies . These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10. CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2018 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 790,930 $ 8,304 $ 10,998 $ — $ 810,232 Restricted cash — — 226,558 — — 226,558 Accounts receivable — — 493,922 44,550 — 538,472 Other current assets 1,874 11,377 130,298 23,333 (27,453 ) 139,429 Total current assets 1,874 802,307 859,082 78,881 (27,453 ) 1,714,691 Property and equipment, net 810 32,025 569,047 65,163 (12,613 ) 654,432 Investment in consolidated subsidiaries 1,576,613 4,050,589 4,179 — (5,631,381 ) — Goodwill — — 2,018,103 3,867 — 2,021,970 Indefinite-lived intangible assets — — 142,356 14,273 — 156,629 Definite-lived intangible assets — — 1,710,136 75,377 (55,950 ) 1,729,563 Other long-term assets 31,854 771,367 260,001 192,713 (869,809 ) 386,126 Total assets $ 1,611,151 $ 5,656,288 $ 5,562,904 $ 430,274 $ (6,597,206 ) $ 6,663,411 Accounts payable and accrued liabilities $ 299 $ 80,345 $ 243,674 $ 60,837 $ (28,363 ) $ 356,792 Current portion of long-term debt — 142,489 3,587 9,343 (475 ) 154,944 Other current liabilities — — 68,269 11,676 — 79,945 Total current liabilities 299 222,834 315,530 81,856 (28,838 ) 591,681 Long-term debt — 3,793,804 36,081 366,207 (321,067 ) 3,875,025 Other liabilities 3,145 39,510 1,159,952 172,500 (749,945 ) 625,162 Total liabilities 3,444 4,056,148 1,511,563 620,563 (1,099,850 ) 5,091,868 Total Sinclair Broadcast Group equity (deficit) 1,607,707 1,600,140 4,051,341 (149,669 ) (5,501,812 ) 1,607,707 Noncontrolling interests in consolidated subsidiaries — — — (40,620 ) 4,456 (36,164 ) Total liabilities and equity (deficit) $ 1,611,151 $ 5,656,288 $ 5,562,904 $ 430,274 $ (6,597,206 ) $ 6,663,411 CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2017 (in thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 645,830 $ 12,273 $ 23,223 $ — $ 681,326 Restricted Cash — — 311,110 2,000 — 313,110 Accounts receivable — — 530,273 36,191 — 566,464 Other current assets 3,034 5,758 145,637 9,687 (10,269 ) 153,847 Total current assets 3,034 651,588 999,293 71,101 (10,269 ) 1,714,747 Property and equipment, net 829 31,111 586,950 132,010 (12,602 ) 738,298 Investment in consolidated subsidiaries 1,537,337 4,116,241 4,179 — (5,657,757 ) — Goodwill — — 2,120,166 3,867 — 2,124,033 Indefinite-lived intangible assets — — 145,073 14,298 — 159,371 Definite-lived intangible assets — — 1,781,045 77,944 (57,319 ) 1,801,670 Other long-term assets 31,757 770,312 104,363 208,367 (868,448 ) 246,351 Total assets $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 Accounts payable and accrued liabilities $ 1,100 $ 84,326 $ 261,266 $ 36,029 $ (12,318 ) $ 370,403 Current portion of long-term debt — 148,505 3,445 9,645 (546 ) 161,049 Other current liabilities — — 180,616 14,281 — 194,897 Total current liabilities 1,100 232,831 445,327 59,955 (12,864 ) 726,349 Long-term debt — 3,799,987 39,730 381,127 (333,243 ) 3,887,601 Other liabilities 3,119 38,282 1,141,266 187,569 (734,082 ) 636,154 Total liabilities 4,219 4,071,100 1,626,323 628,651 (1,080,189 ) 5,250,104 Total Sinclair Broadcast Group equity (deficit) 1,568,738 1,498,152 4,114,746 (82,051 ) (5,530,847 ) 1,568,738 Noncontrolling interests in consolidated subsidiaries — — — (39,013 ) 4,641 (34,372 ) Total liabilities and equity (deficit) $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Net revenue $ — $ — $ 625,683 $ 58,011 $ (18,342 ) $ 665,352 Media program and production expenses — — 273,415 32,020 (16,886 ) 288,549 Selling, general and administrative 2,597 21,754 143,301 4,284 (441 ) 171,495 Depreciation, amortization and other operating expenses 19 1,250 6,416 91,008 (699 ) 97,994 Total operating expenses 2,616 23,004 423,132 127,312 (18,026 ) 558,038 Operating (loss) income (2,616 ) (23,004 ) 202,551 (69,301 ) (316 ) 107,314 Equity in earnings of consolidated subsidiaries 45,037 171,770 429 — (217,236 ) — Interest expense — (68,168 ) (972 ) (4,550 ) 3,948 (69,742 ) Other income (expense) 681 2,295 (13,361 ) 1,179 — (9,206 ) Total other income (expense) 45,718 105,897 (13,904 ) (3,371 ) (213,288 ) (78,948 ) Income tax benefit (provision) 21 15,398 (15,676 ) 15,885 — 15,628 Net income (loss) 43,123 98,291 172,971 (56,787 ) (213,604 ) 43,994 Net income attributable to the noncontrolling interests — — — (1,056 ) 185 (871 ) Net income (loss) attributable to Sinclair Broadcast Group $ 43,123 $ 98,291 $ 172,971 $ (57,843 ) $ (213,419 ) $ 43,123 Comprehensive income (loss) $ 43,123 $ 98,291 $ 172,971 $ (56,787 ) $ (213,604 ) $ 43,994 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Net revenue $ — $ — $ 595,239 $ 50,857 $ (19,160 ) $ 626,936 Media program and production expenses — — 248,451 28,444 (18,494 ) 258,401 Selling, general and administrative 1,296 18,958 122,435 2,633 (25 ) 145,297 Depreciation, amortization and other operating expenses 266 1,725 90,513 (26,450 ) (445 ) 65,609 Total operating expenses 1,562 20,683 461,399 4,627 (18,964 ) 469,307 Operating (loss) income (1,562 ) (20,683 ) 133,840 46,230 (196 ) 157,629 Equity in earnings of consolidated subsidiaries 58,189 87,805 50 — (146,044 ) — Interest expense (36 ) (54,704 ) (1,119 ) (7,623 ) 6,164 (57,318 ) Loss from extinguishment of debt — (1,404 ) — — — (1,404 ) Other income (expense) 101 799 496 (1,021 ) — 375 Total other income (expense) 58,254 32,496 (573 ) (8,644 ) (139,880 ) (58,347 ) Income tax benefit (provision) 510 25,106 (44,229 ) (9,966 ) — (28,579 ) Net income (loss) 57,202 36,919 89,038 27,620 (140,076 ) 70,703 Net income attributable to the noncontrolling interests — — — (13,494 ) (7 ) (13,501 ) Net income (loss) attributable to Sinclair Broadcast Group $ 57,202 $ 36,919 $ 89,038 $ 14,126 $ (140,083 ) $ 57,202 Comprehensive income (loss) $ 57,202 $ 36,919 $ 89,039 $ 27,619 $ (140,076 ) $ 70,703 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES $ 1,304 $ (88,587 ) $ 193,725 $ (10,684 ) $ 5,185 $ 100,943 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment — (2,214 ) (18,505 ) (1,500 ) — (22,219 ) Proceeds from the sale of assets — — 49 — — 49 Investments in equity and cost method investees (370 ) (31 ) (6,778 ) (571 ) — (7,750 ) Distributions from equity and cost method investees 1,709 — — 9,123 — 10,832 Other, net — (1,862 ) — — — (1,862 ) Net cash flows from (used in) investing activities 1,339 (4,107 ) (25,234 ) 7,052 — (20,950 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable and commercial bank financing — — — 363 — 363 Repayments of notes payable, commercial bank financing and capital leases — (13,800 ) (843 ) (2,400 ) 93 (16,950 ) Dividends paid on Class A and Class B Common Stock (18,392 ) — — — — (18,392 ) Increase (decrease) in intercompany payables 14,869 251,594 (256,169 ) (5,016 ) (5,278 ) — Other, net 880 — — (3,539 ) — (2,659 ) Net cash flows from (used in) financing activities (2,643 ) 237,794 (257,012 ) (10,592 ) (5,185 ) (37,638 ) NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 145,100 (88,521 ) (14,224 ) — 42,355 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 645,830 323,383 26,727 — 995,940 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 790,930 $ 234,862 $ 12,503 $ — $ 1,038,295 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES $ 1,126 $ (44,685 ) $ 127,520 $ (13,853 ) $ (466 ) $ 69,642 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment (50 ) (3,259 ) (16,840 ) (806 ) 181 (20,774 ) Acquisition of businesses, net of cash acquired — — (8,000 ) — — (8,000 ) Investments in equity and cost method investees (945 ) (300 ) (47 ) (1,788 ) — (3,080 ) Proceeds from the sale of assets — — — 195,149 — 195,149 Distributions from equity and cost method investees 2,266 — — 1,006 — 3,272 Other, net — (3,083 ) 357 (5,682 ) — (8,408 ) Net cash flows from (used in) investing activities 1,271 (6,642 ) (24,530 ) 187,879 181 158,159 CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable and commercial bank financing — 159,669 — 3,420 — 163,089 Repayments of notes payable, commercial bank financing and capital leases — (172,519 ) (445 ) (111,458 ) — (284,422 ) Proceeds from the sale of Class A Common Stock 487,883 — — — — 487,883 Dividends paid on Class A and Class B Common Stock (16,257 ) — — — — (16,257 ) Increase (decrease) in intercompany payables (471,945 ) 615,437 (102,763 ) (40,939 ) 210 — Other, net (2,078 ) (360 ) 586 (16,107 ) 75 (17,884 ) Net cash flows from (used in) financing activities (2,397 ) 602,227 (102,622 ) (165,084 ) 285 332,409 NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 550,900 368 8,942 — 560,210 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 232,297 10,875 17,012 — 260,184 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 783,197 $ 11,243 $ 25,954 $ — $ 820,394 |
NATURE OF OPERATIONS AND SUMM17
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Sinclair Broadcast Group, Inc. (the Company) is a diversified television broadcasting company with national reach and a strong focus on providing high-quality content on our local television stations and digital platforms. The content, distributed through our broadcast platform, consists of programming provided by third-party networks and syndicators, local news, and other original programming produced by us. We also distribute our original programming, and owned and operated network affiliates, on other third-party platforms. Additionally, we own digital media products that are complementary to our extensive portfolio of television station related digital properties. Outside of our media related businesses, we operate technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the advancement of broadcast technology, and we manage other non-media related investments. As of March 31, 2018 , our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 191 stations in 89 markets. These stations broadcast 603 channels as of March 31, 2018 . For the purpose of this report, these 191 stations and 603 channels are referred to as “our” stations and channels. |
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 variable interest entities (VIEs) for which we are the primary beneficiary. Noncontrolling interest represents a minority owner’s proportionate share of the equity in certain of our consolidated entities. All intercompany transactions and account balances have been eliminated in consolidation. |
Variable Interest Entities | Other investments. We have several investments 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. We account for these entities using the equity or cost method of accounting. Variable Interest Entities In determining whether we are the primary beneficiary of a VIE for financial reporting purposes, we consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. We consolidate VIEs when we are the primary beneficiary. Third-party station licensees. 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. Several of these VIEs are owned by a related party, Cunningham Broadcasting Corporation (Cunningham). |
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 May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers. This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. Since Accounting Standards Update (ASU) 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We adopted this guidance retrospectively during the first quarter of 2018. The impact of the adoption did not have a material impact on our station advertising or distribution revenue. Under the new standard, certain barter revenue and expense related to syndicated programming is no longer recognized. See Revenue Recognition below for more information on the adoption. In January 2016, the FASB issued new guidance which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new guidance requires entities to measure equity investments (except those accounted for under the equity method of accounting or those that resulted in consolidation of the investee) at fair value, with changes in fair value recognized in net income. The new standard is effective for the interim and annual periods beginning after December 15, 2017. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our financial statements. As of March 31, 2018 and December 31, 2017, equity investments without a readily determinable fair value measured utilizing the measurement alternative at cost, less impairment plus observable changes were $29.3 million and $32.3 million , respectively. During the three months ended March 31, 2018, there were no adjustments to the carrying amount of investments accounted for using the measurement alternative. We also had other investments recorded at fair value at March 31, 2018 and December 31, 2017 of $18.6 million and $12.2 million , respectively. As a result of the adoption of this guidance, we recorded a cumulative effect adjustment to retained earnings of $2.1 million for these investments, within our consolidated statement of equity. In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently, only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term. The new standard is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flows. In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new guidance requires that the statement of cash flows explain changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance retrospectively during the first quarter of 2018. For the three month period ended March 31, 2017, the adoption of this guidance resulted in an increase in cash flows from investing and financing activities of $3.0 million and $1.5 million , respectively. In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our consolidated financial statements. In March 2018, the FASB issued guidance which is effective in the first quarter of 2018. The guidance is for situations where the accounting under ASC Topic 740 is incomplete for certain income tax effects of the 2017 Tax Cuts and Jobs Act (TCJA) upon issuance of an entity’s financial statements for the reporting period in which TCJA was enacted. Any provisional amounts or adjustments to provisional amounts as a result of obtaining, preparing or analyzing additional information about facts and circumstances related to the provisional amounts should be included in income (loss) from continuing operations as an adjustment to income tax expense in the reporting period the amounts are determined. As discussed in Income Taxes below, adjustments to the provisional amounts that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted the new accounting principles for revenue recognition (ASC 606) using the retrospective adoption method. The following table presents the effects of adoption on our consolidated financial statements for the comparative period presented (in thousands): Three Months Ended March 31, 2017 As Reported Adoption of ASC 606 As Adjusted Revenues realized from station barter arrangements (a) $ 27,570 $ (22,999 ) $ 4,571 Expenses realized from barter arrangements (b) $ 23,245 $ (22,999 ) $ 246 Operating income $ 157,629 $ — $ 157,629 Net income $ 57,202 $ — $ 57,202 Basic EPS $ 0.62 $ — $ 0.62 Diluted EPS $ 0.61 $ — $ 0.61 (a) The remaining balance in the "as adjusted" column relates to trade revenue, which was unaffected by the adoption and has been reclassified to media revenue as of March 31, 2018. (b) The remaining balance in the "as adjusted" column relates to trade expense, which was unaffected by the adoption and has been reclassified to media production expense as of March 31, 2018. The following table presents our revenue disaggregated by type and segment (in thousands): Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Broadcast Other Total Broadcast Other Total Advertising revenue, net of agency commissions $ 298,912 $ 17,416 $ 316,328 $ 310,071 $ 8,379 $ 318,450 Distribution revenue 287,125 27,235 314,360 249,065 26,849 275,914 Other media and non-media revenues 9,855 24,809 34,664 10,733 21,839 32,572 Total revenues $ 595,892 $ 69,460 $ 665,352 $ 569,869 $ 57,067 $ 626,936 Advertising Revenue, net of agency commissions. We generate advertising revenue primarily from the sale of advertising spots/impressions on our broadcast television and digital platforms. Advertising revenue is recognized in the period in which the advertising spots/impressions are delivered. In arrangements where we provide audience ratings guarantees; to the extent that there is a ratings shortfall, we will defer a portion of revenue until the ratings shortfall is settled. The term of our advertising arrangements is generally less than one year and the timing between when an advertisement is aired and when payment is due is not significant. In certain circumstances we require customers to pay in advance; payments received in advance of satisfying our performance obligations are reflected as deferred revenue. Distribution Revenue. The Company generates distribution revenue through fees received from multi-channel video programming distributors (MVPDs) and virtual MVPDs for the right to distribute our stations and other properties on their respective distribution platforms. We have determined that these arrangements represent licenses of intellectual property. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a monthly amount per subscriber. We recognize revenue associated with these licensing arrangements when our customers distribute our stations and other properties on their respective distribution platforms which is when our performance obligation has been satisfied. The term between invoicing and when payment is due is not significant. Practical Expedients and Exemptions. We expense sales commissions when incurred because the period of benefit for these costs is one year or less. These costs are recorded within media selling, general and administrative expenses. 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) for distribution arrangements which are accounted for as a sales/usage based royalty. Arrangements with Multiple Performance Obligations. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price which is generally based on the prices charged to customers. Deferred Revenues. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. |
Income Taxes | Income Taxes Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three months ended March 31, 2018 and 2017 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 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 portion of our available state net operating loss (NOL) carryforwards, based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Our effective income tax rate for the three months ended March 31, 2018 was less than the statutory rate primarily due to a $21.3 million permanent tax benefit recognized from an IRS tax ruling on the treatment of the gain realized during the quarter from the sale of certain broadcast spectrum in connection with the Broadcast Incentive Auction, as discussed in Note 2. Acquisitions and Dispositions of Assets . Our effective income tax rate for the three months ended March 31, 2017 was less than the statutory rate primarily due to a Domestic Production Activities Deduction benefit, partially offset by a provision for state taxes and non-deductible items. Pursuant to the guidance within SEC Staff Accounting Bulletin No. 118 (SAB 118), as of March 31, 2018, the Company continues to analyze certain aspects of the TCJA and refine its assessment. The ultimate impact of the TCJA differ from the provisional amounts recorded by the Company at December 31, 2017 due to its continued analysis or further regulatory guidance that may be issued as a result of the TCJA. Pursuant to SAB 118, adjustments to the provisional amounts that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior years' consolidated financial statements to conform to the current year's presentation. |
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. |
NATURE OF OPERATIONS AND SUMM18
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Carrying Amounts and Classification of Assets and Liabilities of VIEs | As of the dates indicated, the carrying amounts and classification of the assets and liabilities of the VIEs mentioned above which have been included in our consolidated balance sheets for the periods presented were as follows (in thousands): March 31, December 31, ASSETS Current assets: Accounts receivable $ 18,764 $ 19,566 Other current assets 5,672 8,937 Total current assets 24,436 28,503 Assets held for sale 546 — Program contract costs, less current portion 469 822 Property and equipment, net 4,242 6,215 Goodwill and indefinite-lived intangible assets 15,039 15,064 Definite-lived intangible assets, net 72,186 74,442 Other assets 5,601 5,601 Total assets $ 122,519 $ 130,647 LIABILITIES Current liabilities: Other current liabilities $ 20,164 $ 23,564 Notes payable, capital leases and commercial bank financing, less current portion 21,380 23,217 Program contracts payable, less current portion 10,519 11,213 Other long-term liabilities 650 650 Total liabilities $ 52,713 $ 58,644 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table presents the effects of adoption on our consolidated financial statements for the comparative period presented (in thousands): Three Months Ended March 31, 2017 As Reported Adoption of ASC 606 As Adjusted Revenues realized from station barter arrangements (a) $ 27,570 $ (22,999 ) $ 4,571 Expenses realized from barter arrangements (b) $ 23,245 $ (22,999 ) $ 246 Operating income $ 157,629 $ — $ 157,629 Net income $ 57,202 $ — $ 57,202 Basic EPS $ 0.62 $ — $ 0.62 Diluted EPS $ 0.61 $ — $ 0.61 (a) The remaining balance in the "as adjusted" column relates to trade revenue, which was unaffected by the adoption and has been reclassified to media revenue as of March 31, 2018. (b) The remaining balance in the "as adjusted" column relates to trade expense, which was unaffected by the adoption and has been reclassified to media production expense as of March 31, 2018. |
Disaggregation of Revenue | The following table presents our revenue disaggregated by type and segment (in thousands): Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Broadcast Other Total Broadcast Other Total Advertising revenue, net of agency commissions $ 298,912 $ 17,416 $ 316,328 $ 310,071 $ 8,379 $ 318,450 Distribution revenue 287,125 27,235 314,360 249,065 26,849 275,914 Other media and non-media revenues 9,855 24,809 34,664 10,733 21,839 32,572 Total revenues $ 595,892 $ 69,460 $ 665,352 $ 569,869 $ 57,067 $ 626,936 |
ACQUISITIONS AND DISPOSITION 19
ACQUISITIONS AND DISPOSITION OF ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of allocated fair value of acquired assets and liabilities assumed | The following table summarizes the allocated fair value of acquired assets and assumed liabilities (in thousands): Accounts receivable $ 14,536 Prepaid expenses and other current assets 699 Program contract costs 988 Property and equipment 27,295 Definite-lived intangible assets 161,936 Indefinite-lived intangible assets 425 Other assets 3,609 Accounts payable and accrued liabilities (8,846 ) Program contracts payable (988 ) Deferred tax liability (66,158 ) Other long term liabilities (12,156 ) Fair value of identifiable, net assets acquired 121,340 Goodwill 120,812 Total purchase price, net of cash acquired $ 242,152 |
Summary of Pro Forma Information | The following table sets forth unaudited pro forma results of operations, assuming that Bonten, along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the Other 2017 Acquisitions discussed above, as they are not material both individually and in the aggregate (in thousands, except per share data): Three months ended March 31, 2017 Total revenues $ 646,818 Net income $ 71,108 Net income attributable to Sinclair Broadcast Group $ 57,607 Basic earnings per share attributable to Sinclair Broadcast Group $ 0.62 Diluted earnings per share attributable to Sinclair Broadcast Group $ 0.61 |
Disposal Groups, Including Discontinued Operations | As of March 31, 2018, the major classes of assets and liabilities reported as held for sale on the accompanying consolidated balance sheets are shown below (in thousands): Current assets $ 1,778 Property and equipment 17,537 Goodwill and indefinite-lived intangible assets 104,916 Definite-lived intangible assets 28,582 Other non-current assets 67 Assets held for sale $ 152,880 Current liabilities $ 4,278 Non-current liabilities 7,932 Liabilities held for sale $ 12,210 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 thousands): Three Months Ended 2018 2017 Income (Numerator) Net income $ 43,994 $ 70,703 Net income attributable to noncontrolling interests (871 ) (13,501 ) Numerator for basic and diluted earnings per common share available to common shareholders $ 43,123 $ 57,202 Shares (Denominator) Weighted-average common shares outstanding 101,899 92,630 Dilutive effect of stock-settled appreciation rights and outstanding stock options 1,018 1,062 Weighted-average common and common equivalent shares outstanding 102,917 93,692 |
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 2018 2017 Weighted-average stock-settled appreciation rights and outstanding stock options excluded 500 — |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Segment financial information is included in the following tables for the periods presented (in thousands): For the three months ended March 31, 2018 Broadcast Other Corporate Consolidated Revenue $ 595,892 $ 69,460 $ — $ 665,352 Depreciation of property and equipment 25,399 1,906 20 27,325 Amortization of definite-lived intangible assets and other assets 38,471 5,134 — 43,605 Amortization of program contract costs and net realizable value adjustments 26,950 — — 26,950 General and administrative overhead expenses 21,744 255 2,597 24,596 (Gain) on asset dispositions, net of impairment (84,100 ) (d) 62,991 (c) — (21,109 ) Operating income (loss) 176,166 (d) (66,235 ) (c) (2,617 ) 107,314 Interest expense 1,372 202 68,168 69,742 Loss from equity and cost method investments — (12,477 ) — (12,477 ) Assets 5,096,281 685,140 881,990 6,663,411 For the three months ended March 31, 2017 Broadcast Other Corporate Consolidated Revenue (b) $ 569,869 $ 57,067 $ — $ 626,936 Depreciation of property and equipment 21,946 1,769 266 23,981 Amortization of definite-lived intangible assets and other assets 38,326 7,228 — 45,554 Amortization of program contract costs and net realizable value adjustments 31,019 — — 31,019 General and administrative overhead expenses 18,992 288 1,296 20,576 (Gain) on asset dispositions, net of impairment (357 ) (52,990 ) (a) — (53,347 ) Operating income (loss) 114,544 44,649 (a) (1,564 ) 157,629 Interest expense 1,366 1,213 54,739 57,318 Loss from equity and cost method investments — (1,321 ) — (1,321 ) (a) Includes gain on the sale of Alarm of $53.0 million of which $12.3 million was attributable to noncontrolling interests. See Note 2. Acquisitions and Dispositions of Assets . (b) Revenue has been adjusted for the adoption of ASC 606. See Note 1. Nature of Operations and Summary of Significant Accounting Policies . (c) Includes a $63.0 million impairment to the carrying value of a consolidated real estate venture as discussed in Note 2. Acquisitions and Dispositions of Assets . (d) Includes a gain of $83.3 million related to the auction proceeds as discussed in Note 2. Acquisitions and Dispositions of Assets . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 notes and debentures for the periods presented (in thousands): As of March 31, 2018 As of December 31, 2017 Face Value (a) Fair Value Face Value (a) Fair Value Level 2: 6.125% Senior Unsecured Notes due 2022 $ 500,000 $ 512,500 $ 500,000 $ 515,535 5.875% Senior Unsecured Notes due 2026 350,000 346,500 350,000 363,475 5.625% Senior Unsecured Notes due 2024 550,000 545,875 550,000 568,205 5.375% Senior Unsecured Notes due 2021 600,000 605,250 600,000 610,440 5.125% Senior Unsecured Notes due 2027 400,000 371,000 400,000 396,088 Term Loan A-1 111,354 111,354 117,370 117,370 Term Loan A-2 108,968 108,968 113,327 113,327 Term Loan B 1,352,875 1,356,257 1,356,300 1,357,995 Debt of variable interest entities 28,530 28,530 29,614 29,614 Debt of other operating divisions 24,476 24,476 25,238 25,238 (a) Amounts are carried on our consolidated balance sheets net of debt discount and deferred financing cost, which are excluded in the above table, of $38.2 million and $39.0 million as of March 31, 2018 and December 31, 2017 , respectively. |
CONDENSED CONSOLIDATING FINAN23
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed consolidating balance sheet | These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10. CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2018 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 790,930 $ 8,304 $ 10,998 $ — $ 810,232 Restricted cash — — 226,558 — — 226,558 Accounts receivable — — 493,922 44,550 — 538,472 Other current assets 1,874 11,377 130,298 23,333 (27,453 ) 139,429 Total current assets 1,874 802,307 859,082 78,881 (27,453 ) 1,714,691 Property and equipment, net 810 32,025 569,047 65,163 (12,613 ) 654,432 Investment in consolidated subsidiaries 1,576,613 4,050,589 4,179 — (5,631,381 ) — Goodwill — — 2,018,103 3,867 — 2,021,970 Indefinite-lived intangible assets — — 142,356 14,273 — 156,629 Definite-lived intangible assets — — 1,710,136 75,377 (55,950 ) 1,729,563 Other long-term assets 31,854 771,367 260,001 192,713 (869,809 ) 386,126 Total assets $ 1,611,151 $ 5,656,288 $ 5,562,904 $ 430,274 $ (6,597,206 ) $ 6,663,411 Accounts payable and accrued liabilities $ 299 $ 80,345 $ 243,674 $ 60,837 $ (28,363 ) $ 356,792 Current portion of long-term debt — 142,489 3,587 9,343 (475 ) 154,944 Other current liabilities — — 68,269 11,676 — 79,945 Total current liabilities 299 222,834 315,530 81,856 (28,838 ) 591,681 Long-term debt — 3,793,804 36,081 366,207 (321,067 ) 3,875,025 Other liabilities 3,145 39,510 1,159,952 172,500 (749,945 ) 625,162 Total liabilities 3,444 4,056,148 1,511,563 620,563 (1,099,850 ) 5,091,868 Total Sinclair Broadcast Group equity (deficit) 1,607,707 1,600,140 4,051,341 (149,669 ) (5,501,812 ) 1,607,707 Noncontrolling interests in consolidated subsidiaries — — — (40,620 ) 4,456 (36,164 ) Total liabilities and equity (deficit) $ 1,611,151 $ 5,656,288 $ 5,562,904 $ 430,274 $ (6,597,206 ) $ 6,663,411 CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2017 (in thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 645,830 $ 12,273 $ 23,223 $ — $ 681,326 Restricted Cash — — 311,110 2,000 — 313,110 Accounts receivable — — 530,273 36,191 — 566,464 Other current assets 3,034 5,758 145,637 9,687 (10,269 ) 153,847 Total current assets 3,034 651,588 999,293 71,101 (10,269 ) 1,714,747 Property and equipment, net 829 31,111 586,950 132,010 (12,602 ) 738,298 Investment in consolidated subsidiaries 1,537,337 4,116,241 4,179 — (5,657,757 ) — Goodwill — — 2,120,166 3,867 — 2,124,033 Indefinite-lived intangible assets — — 145,073 14,298 — 159,371 Definite-lived intangible assets — — 1,781,045 77,944 (57,319 ) 1,801,670 Other long-term assets 31,757 770,312 104,363 208,367 (868,448 ) 246,351 Total assets $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 Accounts payable and accrued liabilities $ 1,100 $ 84,326 $ 261,266 $ 36,029 $ (12,318 ) $ 370,403 Current portion of long-term debt — 148,505 3,445 9,645 (546 ) 161,049 Other current liabilities — — 180,616 14,281 — 194,897 Total current liabilities 1,100 232,831 445,327 59,955 (12,864 ) 726,349 Long-term debt — 3,799,987 39,730 381,127 (333,243 ) 3,887,601 Other liabilities 3,119 38,282 1,141,266 187,569 (734,082 ) 636,154 Total liabilities 4,219 4,071,100 1,626,323 628,651 (1,080,189 ) 5,250,104 Total Sinclair Broadcast Group equity (deficit) 1,568,738 1,498,152 4,114,746 (82,051 ) (5,530,847 ) 1,568,738 Noncontrolling interests in consolidated subsidiaries — — — (39,013 ) 4,641 (34,372 ) Total liabilities and equity (deficit) $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 |
Schedule of condensed consolidating statement of operations and comprehensive income | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Net revenue $ — $ — $ 625,683 $ 58,011 $ (18,342 ) $ 665,352 Media program and production expenses — — 273,415 32,020 (16,886 ) 288,549 Selling, general and administrative 2,597 21,754 143,301 4,284 (441 ) 171,495 Depreciation, amortization and other operating expenses 19 1,250 6,416 91,008 (699 ) 97,994 Total operating expenses 2,616 23,004 423,132 127,312 (18,026 ) 558,038 Operating (loss) income (2,616 ) (23,004 ) 202,551 (69,301 ) (316 ) 107,314 Equity in earnings of consolidated subsidiaries 45,037 171,770 429 — (217,236 ) — Interest expense — (68,168 ) (972 ) (4,550 ) 3,948 (69,742 ) Other income (expense) 681 2,295 (13,361 ) 1,179 — (9,206 ) Total other income (expense) 45,718 105,897 (13,904 ) (3,371 ) (213,288 ) (78,948 ) Income tax benefit (provision) 21 15,398 (15,676 ) 15,885 — 15,628 Net income (loss) 43,123 98,291 172,971 (56,787 ) (213,604 ) 43,994 Net income attributable to the noncontrolling interests — — — (1,056 ) 185 (871 ) Net income (loss) attributable to Sinclair Broadcast Group $ 43,123 $ 98,291 $ 172,971 $ (57,843 ) $ (213,419 ) $ 43,123 Comprehensive income (loss) $ 43,123 $ 98,291 $ 172,971 $ (56,787 ) $ (213,604 ) $ 43,994 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2017 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Net revenue $ — $ — $ 595,239 $ 50,857 $ (19,160 ) $ 626,936 Media program and production expenses — — 248,451 28,444 (18,494 ) 258,401 Selling, general and administrative 1,296 18,958 122,435 2,633 (25 ) 145,297 Depreciation, amortization and other operating expenses 266 1,725 90,513 (26,450 ) (445 ) 65,609 Total operating expenses 1,562 20,683 461,399 4,627 (18,964 ) 469,307 Operating (loss) income (1,562 ) (20,683 ) 133,840 46,230 (196 ) 157,629 Equity in earnings of consolidated subsidiaries 58,189 87,805 50 — (146,044 ) — Interest expense (36 ) (54,704 ) (1,119 ) (7,623 ) 6,164 (57,318 ) Loss from extinguishment of debt — (1,404 ) — — — (1,404 ) Other income (expense) 101 799 496 (1,021 ) — 375 Total other income (expense) 58,254 32,496 (573 ) (8,644 ) (139,880 ) (58,347 ) Income tax benefit (provision) 510 25,106 (44,229 ) (9,966 ) — (28,579 ) Net income (loss) 57,202 36,919 89,038 27,620 (140,076 ) 70,703 Net income attributable to the noncontrolling interests — — — (13,494 ) (7 ) (13,501 ) Net income (loss) attributable to Sinclair Broadcast Group $ 57,202 $ 36,919 $ 89,038 $ 14,126 $ (140,083 ) $ 57,202 Comprehensive income (loss) $ 57,202 $ 36,919 $ 89,039 $ 27,619 $ (140,076 ) $ 70,703 |
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2018 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES $ 1,304 $ (88,587 ) $ 193,725 $ (10,684 ) $ 5,185 $ 100,943 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment — (2,214 ) (18,505 ) (1,500 ) — (22,219 ) Proceeds from the sale of assets — — 49 — — 49 Investments in equity and cost method investees (370 ) (31 ) (6,778 ) (571 ) — (7,750 ) Distributions from equity and cost method investees 1,709 — — 9,123 — 10,832 Other, net — (1,862 ) — — — (1,862 ) Net cash flows from (used in) investing activities 1,339 (4,107 ) (25,234 ) 7,052 — (20,950 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable and commercial bank financing — — — 363 — 363 Repayments of notes payable, commercial bank financing and capital leases — (13,800 ) (843 ) (2,400 ) 93 (16,950 ) Dividends paid on Class A and Class B Common Stock (18,392 ) — — — — (18,392 ) Increase (decrease) in intercompany payables 14,869 251,594 (256,169 ) (5,016 ) (5,278 ) — Other, net 880 — — (3,539 ) — (2,659 ) Net cash flows from (used in) financing activities (2,643 ) 237,794 (257,012 ) (10,592 ) (5,185 ) (37,638 ) NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 145,100 (88,521 ) (14,224 ) — 42,355 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 645,830 323,383 26,727 — 995,940 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 790,930 $ 234,862 $ 12,503 $ — $ 1,038,295 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2017 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES $ 1,126 $ (44,685 ) $ 127,520 $ (13,853 ) $ (466 ) $ 69,642 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment (50 ) (3,259 ) (16,840 ) (806 ) 181 (20,774 ) Acquisition of businesses, net of cash acquired — — (8,000 ) — — (8,000 ) Investments in equity and cost method investees (945 ) (300 ) (47 ) (1,788 ) — (3,080 ) Proceeds from the sale of assets — — — 195,149 — 195,149 Distributions from equity and cost method investees 2,266 — — 1,006 — 3,272 Other, net — (3,083 ) 357 (5,682 ) — (8,408 ) Net cash flows from (used in) investing activities 1,271 (6,642 ) (24,530 ) 187,879 181 158,159 CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable and commercial bank financing — 159,669 — 3,420 — 163,089 Repayments of notes payable, commercial bank financing and capital leases — (172,519 ) (445 ) (111,458 ) — (284,422 ) Proceeds from the sale of Class A Common Stock 487,883 — — — — 487,883 Dividends paid on Class A and Class B Common Stock (16,257 ) — — — — (16,257 ) Increase (decrease) in intercompany payables (471,945 ) 615,437 (102,763 ) (40,939 ) 210 — Other, net (2,078 ) (360 ) 586 (16,107 ) 75 (17,884 ) Net cash flows from (used in) financing activities (2,397 ) 602,227 (102,622 ) (165,084 ) 285 332,409 NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 550,900 368 8,942 — 560,210 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 232,297 10,875 17,012 — 260,184 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 783,197 $ 11,243 $ 25,954 $ — $ 820,394 |
NATURE OF OPERATIONS AND SUMM24
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Narrative) (Details) | Mar. 31, 2018channelstationmarket |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of television stations owned | station | 191 |
Number of markets | market | 89 |
Number of channels | channel | 603 |
NATURE OF OPERATIONS AND SUMM25
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Income from equity and cost method investments | $ 12,477 | $ 1,321 | |
Net revenue | 665,352 | 626,936 | |
Income before income taxes | (28,366) | (99,282) | |
Net loss | (43,994) | (70,703) | |
Eliminations | |||
Variable Interest Entity [Line Items] | |||
Net revenue | (18,342) | (19,160) | |
Net loss | $ 213,604 | 140,076 | |
Consolidated VIEs, aggregated | |||
Variable Interest Entity [Line Items] | |||
Initial term of certain outsourcing agreements | 5 years | ||
Consolidated VIEs | Eliminations | |||
Variable Interest Entity [Line Items] | |||
Liabilities associated with the certain outsourcing agreements and purchase options | $ 117,000 | $ 116,500 | |
Consolidated VIEs | Cunningham | Eliminations | |||
Variable Interest Entity [Line Items] | |||
Total payments made under the LMA excluded from liabilities | 44,800 | 44,000 | |
Total capital leased liabilities excluded from VIE consolidation | 4,400 | 4,500 | |
VIEs which are not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Carrying amount | 103,400 | $ 115,700 | |
Income from equity and cost method investments | 9,000 | $ 300 | |
Net revenue | 78,800 | ||
Income before income taxes | 5,900 | ||
Net loss | $ 6,000 |
NATURE OF OPERATIONS AND SUMM26
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Accounts receivable | $ 538,472 | $ 566,464 | |
Other current assets | 68,784 | 54,310 | |
Total current assets | 1,714,691 | 1,714,747 | |
Assets held for sale | 152,880 | 0 | |
Program contract costs, less current portion | 2,178 | 3,202 | |
Property and equipment, net | 654,432 | 738,298 | |
Definite-lived intangible assets, net | 1,729,563 | 1,801,670 | |
Other assets | 229,563 | 241,645 | |
Total assets | [1] | 6,663,411 | 6,784,470 |
Current liabilities: | |||
Other current liabilities | 79,945 | 194,897 | |
Long-term liabilities: | |||
Notes payable, capital leases and commercial bank financing, less current portion | 3,875,025 | 3,887,601 | |
Program contracts payable, less current portion | 37,170 | 41,909 | |
Other long-term liabilities | 77,063 | 79,009 | |
Total liabilities | [1] | 5,091,868 | 5,250,104 |
Consolidated VIEs, aggregated | |||
Current assets: | |||
Accounts receivable | 18,764 | 19,566 | |
Other current assets | 5,672 | 8,937 | |
Total current assets | 24,436 | 28,503 | |
Assets held for sale | 546 | 0 | |
Program contract costs, less current portion | 469 | 822 | |
Property and equipment, net | 4,242 | 6,215 | |
Goodwill and indefinite-lived intangible assets | 15,039 | 15,064 | |
Definite-lived intangible assets, net | 72,186 | 74,442 | |
Other assets | 5,601 | 5,601 | |
Total assets | 122,519 | 130,647 | |
Current liabilities: | |||
Other current liabilities | 20,164 | 23,564 | |
Long-term liabilities: | |||
Notes payable, capital leases and commercial bank financing, less current portion | 21,380 | 23,217 | |
Program contracts payable, less current portion | 10,519 | 11,213 | |
Other long-term liabilities | 650 | 650 | |
Total liabilities | $ 52,713 | $ 58,644 | |
[1] | Our consolidated total assets as of March 31, 2018 and December 31, 2017 include total assets of variable interest entities (VIEs) of $122.5 million and $130.6 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2018 and December 31, 2017 include total liabilities of VIEs of $23.0 million and $27.0 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies. |
NATURE OF OPERATIONS AND SUMM27
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Equity investments without readily determinable fair value | $ 29,300 | $ 32,300 | |
Equity investments, fair value | 18,600 | 12,200 | |
Cumulative effect of adoption of new accounting standard | 2,100 | ||
Net cash flows from (used in) investing activities | (20,950) | $ 158,159 | |
Net cash flows from (used in) financing activities | $ (37,638) | 332,409 | |
Accounting Standards Update 2016-01 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adoption of new accounting standard | $ 2,100 | ||
Accounting Standards Update 2016-15 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows from (used in) investing activities | 3,000 | ||
Net cash flows from (used in) financing activities | $ 1,500 |
NATURE OF OPERATIONS AND SUMM28
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Effects of Adoption (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues realized from station barter arrangements | $ 4,571 | |
Expenses realized from barter arrangements | 246 | |
Operating income (loss) | $ 107,314 | 157,629 |
Net income | $ 43,123 | $ 57,202 |
Basic earnings per share (USD per share) | $ 0.42 | $ 0.62 |
Diluted earnings per share (USD per share) | $ 0.42 | $ 0.61 |
Scenario, Previously Reported | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues realized from station barter arrangements | $ 27,570 | |
Expenses realized from barter arrangements | 23,245 | |
Operating income (loss) | $ 157,629 | |
Basic earnings per share (USD per share) | $ 0.62 | |
Diluted earnings per share (USD per share) | $ 0.61 | |
Accounting Standards Update 2014-09 | Restatement Adjustment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues realized from station barter arrangements | $ (22,999) | |
Expenses realized from barter arrangements | (22,999) | |
Operating income (loss) | 0 | |
Net income | $ 0 | |
Basic earnings per share (USD per share) | $ 0 | |
Diluted earnings per share (USD per share) | $ 0 |
NATURE OF OPERATIONS AND SUMM29
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 665,352 | $ 626,936 |
Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 595,892 | 569,869 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 69,460 | 57,067 |
Advertising revenue, net of agency commissions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 316,328 | 318,450 |
Advertising revenue, net of agency commissions | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 298,912 | 310,071 |
Advertising revenue, net of agency commissions | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 17,416 | 8,379 |
Distribution revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 314,360 | 275,914 |
Distribution revenue | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 287,125 | 249,065 |
Distribution revenue | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 27,235 | 26,849 |
Other media and non-media revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 34,664 | 32,572 |
Other media and non-media revenues | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 9,855 | 10,733 |
Other media and non-media revenues | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 24,809 | $ 21,839 |
NATURE OF OPERATIONS AND SUMM30
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Deferred revenue | $ 50.3 | $ 22.7 | $ 41.3 | $ 25.7 |
Deferred revenue, revenue recognized | $ 23.2 | $ 18.4 |
NATURE OF OPERATIONS AND SUMM31
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Tax benefit from sale of spectrum | $ 21.3 |
NATURE OF OPERATIONS AND SUMM32
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Subsequent Events (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |
May 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Subsequent Event [Line Items] | |||
Dividends declared per share (USD per share) | $ 0.18 | $ 0.18 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared per share (USD per share) | $ 0.18 |
ACQUISITIONS AND DISPOSITION 33
ACQUISITIONS AND DISPOSITION OF ASSETS - Narrative (Details) $ / shares in Units, $ in Thousands | Sep. 01, 2017USD ($)stationmarket | Mar. 31, 2017USD ($) | Feb. 28, 2017USD ($)station | Mar. 31, 2018USD ($)stationmarket | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2017stationmarket | May 31, 2017stationmarket$ / sharesshares | |
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 191 | ||||||||
Number of markets | market | 89 | ||||||||
Media revenues | $ 643,651 | [1] | $ 607,057 | ||||||
Operating income (loss) | 107,314 | 157,629 | |||||||
Broadcast incentive auction, proceeds | 310,800 | ||||||||
Gain (loss) on sale of assets and asset impairment charges | 83,300 | ||||||||
Number of stations assigned new channels | station | 98 | ||||||||
Broadcast incentive auction, total legislation funds to reimburse stations | $ 1,750,000 | ||||||||
Broadcast incentive auction, total capital expenditure | 3,400 | ||||||||
Asset impairment charges | 63,000 | ||||||||
Bonten | |||||||||
Business Acquisition [Line Items] | |||||||||
Aggregate purchase price | $ 240,000 | ||||||||
Working capital adjustment | $ 2,200 | ||||||||
Number of television stations owned | station | 14 | ||||||||
Number of markets | market | 8 | ||||||||
Number of stations to which sales services were provided | station | 4 | ||||||||
Measurement period adjustments, increase to goodwill | 1,400 | ||||||||
Finite-lived intangible assets acquired | $ 161,900 | ||||||||
Goodwill, expected to be deductible for tax purposes | 5,600 | ||||||||
Media revenues | 21,900 | ||||||||
Operating income (loss) | 1,600 | ||||||||
Bonten | Network Affiliations | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets acquired | $ 53,300 | ||||||||
Acquired finite-lived intangible assets, weighted average useful life | 15 years | ||||||||
Bonten | Customer relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets acquired | $ 108,600 | ||||||||
Acquired finite-lived intangible assets, weighted average useful life | 14 years | ||||||||
Tennis Channel | |||||||||
Business Acquisition [Line Items] | |||||||||
Working capital adjustment | $ 2,700 | ||||||||
Business combination purchase price | $ 27,400 | ||||||||
Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 42 | ||||||||
Number of markets | market | 33 | ||||||||
Acquisition related costs | $ 4,700 | ||||||||
Number of television stations to divest | station | 14 | ||||||||
Number of markets with divested stations | market | 14 | ||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Alarm Funding Associates | |||||||||
Business Acquisition [Line Items] | |||||||||
Sale price of assets sold | 200,000 | 200,000 | |||||||
Working capital and transaction costs | 5,000 | $ 5,000 | |||||||
Gain on sale of consolidated non-media business | 53,000 | ||||||||
Gain on sale attributable to non-controlling interest | $ 12,300 | ||||||||
FOX | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 14 | ||||||||
CW | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 12 | ||||||||
CBS | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 6 | ||||||||
ABC | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 3 | ||||||||
NBC | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 2 | ||||||||
MyNetworkTV | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 3 | ||||||||
Independent Station | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of television stations owned | station | 2 | ||||||||
Tribune Media Company, Stockholders | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash stockholders will receive (in dollars per share) | $ / shares | $ 35 | ||||||||
Tribune Media Company, Stockholders | Class A Common Stock | Tribune Media Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of shares to be received for a share of acquired stock (in shares) | shares | 0.23 | ||||||||
[1] | See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies for a discussion of the adoption of the new accounting principles for revenue recognition. |
ACQUISITIONS AND DISPOSITION 34
ACQUISITIONS AND DISPOSITION OF ASSETS - Fair Value of Acquired Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 01, 2017 |
Allocated fair value of acquired assets and assumed liabilities | |||
Goodwill | $ 2,021,970 | $ 2,124,033 | |
Bonten | |||
Allocated fair value of acquired assets and assumed liabilities | |||
Accounts receivable | $ 14,536 | ||
Prepaid expenses and other current assets | 699 | ||
Program contract costs | 988 | ||
Property and equipment | 27,295 | ||
Definite-lived intangible assets | 161,936 | ||
Indefinite-lived intangible assets | 425 | ||
Other assets | 3,609 | ||
Accounts payable and accrued liabilities | (8,846) | ||
Program contracts payable | 988 | ||
Deferred tax liability | (66,158) | ||
Other long term liabilities | (12,156) | ||
Fair value of identifiable net assets acquired | 121,340 | ||
Goodwill | 120,812 | ||
Total purchase price, net of cash acquired | $ 242,152 |
ACQUISITIONS AND DISPOSITION 35
ACQUISITIONS AND DISPOSITION OF ASSETS - Pro Forma Results (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
Business Combinations [Abstract] | |
Total revenues | $ 646,818 |
Net income | 71,108 |
Net income attributable to Sinclair Broadcast Group | $ 57,607 |
Basic earnings per share attributable to Sinclair (USD per share) | $ / shares | $ 0.62 |
Diluted earnings per share attributable to Sinclair (USD per share) | $ / shares | $ 0.61 |
ACQUISITIONS AND DISPOSITION 36
ACQUISITIONS AND DISPOSITION OF ASSETS - Schedule of Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Non-current liabilities | $ 12,210 | $ 0 |
Government Approval Disposal For Tribune Media Acquisition | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Current assets | 1,778 | |
Property and equipment | 17,537 | |
Goodwill and indefinite-lived intangible assets | 104,916 | |
Definite-lived intangible assets | 28,582 | |
Other non-current assets | 67 | |
Assets held for sale | 152,880 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Current liabilities | 4,278 | |
Non-current liabilities | 7,932 | |
Liabilities held for sale | $ 12,210 |
NOTES PAYABLE AND COMMERCIAL 37
NOTES PAYABLE AND COMMERCIAL BANK FINANCING (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Dec. 31, 2017 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Current portion of notes payable, capital leases and commercial bank financing | $ 161,049 | $ 154,944 |
Notes payable, capital leases and commercial bank financing, less current portion | $ 3,887,601 | 3,875,025 |
Secured Debt | New Term B Loans, Maturing 2024 | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee percentage, 30-60 days | 1.25% | |
Unused capacity, commitment fee percentage, 61-120 days | 2.50% | |
London Interbank Offered Rate (LIBOR) | Secured Debt | New Term B Loans, Maturing 2024 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Unused Capacity, commitment fee percentage, basis spread on variable rate, after 120 days | 2.50% | |
Tribune Media Company | Secured Debt | New Term B Loans, Maturing 2024 | ||
Debt Instrument [Line Items] | ||
Face amount of debt | $ 3,700,000 | |
Unused borrowing capacity, fee | 17,000 | |
Affiliated Entity | ||
Debt Instrument [Line Items] | ||
Current portion of notes payable, capital leases and commercial bank financing | 1,700 | 1,700 |
Notes payable, capital leases and commercial bank financing, less current portion | $ 12,500 | $ 12,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 21, 2017USD ($) | Jul. 29, 2016 | Mar. 31, 2018station | Sep. 06, 2016station |
COMMITMENTS AND CONTINGENCIES | ||||
Period subject to ongoing compliance monitoring by the FCC | 36 months | |||
FCC national ownership cap, percentage of domestic households reached | 39.00% | |||
Number of television stations owned and operated | 191 | |||
FCC Consent Decree Settlement | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Number of television stations owned and operated | 34 | |||
Percentage of domestic households reached, UHF discount applied | 25.00% | |||
LMA | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Number of separately owned television stations having programming agreement | 2 | |||
Number of stations that programs substantial portions of broadcast day and sells advertising time | 1 | |||
Unfavorable Regulatory Action [Member] | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Proposed fine | $ | $ 13.4 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income (Numerator) | ||
Net income | $ 43,994 | $ 70,703 |
Net income attributable to noncontrolling interests | (871) | (13,501) |
Numerator for basic and diluted earnings per common share available to common shareholders | $ 43,123 | $ 57,202 |
Shares (Denominator) | ||
Weighted-average common shares outstanding (shares) | 101,899 | 92,630 |
Dilutive effect of stock-settled appreciation rights, restricted stock awards and outstanding stock options (shares) | 1,018 | 1,062 |
Weighted-average common and common equivalent shares outstanding (shares) | 102,917 | 93,692 |
EARNINGS PER SHARE - SUMMARY OF
EARNINGS PER SHARE - SUMMARY OF ANTIDILUTIVE SECURITIES (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Potentially antidilutive dilutive securities excluded from calculation of diluted earnings per share (shares) | 500 | 0 |
SEGMENT DATA (Narrative) (Detai
SEGMENT DATA (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)market | Mar. 31, 2017USD ($) | |
Segment data | ||
Number of markets | market | 89 | |
Intercompany loans | $ | $ 144 | $ 165.8 |
Intercompany interest expense | $ | $ 3.8 | $ 6 |
Operating segments | Broadcast | ||
Segment data | ||
Number of markets | market | 89 |
SEGMENT DATA (Details)
SEGMENT DATA (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Segment data | |||||
Revenue | $ 665,352 | $ 626,936 | |||
Depreciation of property and equipment | 27,325 | 23,981 | |||
Amortization of definite-lived intangible assets and other assets | 43,605 | 45,554 | |||
Amortization of program contract costs and net realizable value adjustments | 26,950 | 31,019 | |||
General and administrative overhead expenses | 24,596 | 20,576 | |||
Gain on asset dispositions, net of impairment | (21,109) | (53,347) | |||
Operating income (loss) | 107,314 | 157,629 | |||
Interest expense | 69,742 | 57,318 | |||
Loss from equity and cost method investments | (12,477) | (1,321) | |||
Assets | [1] | 6,663,411 | $ 6,784,470 | ||
Asset impairment charges | 63,000 | ||||
Gain (loss) on sale of assets and asset impairment charges | 83,300 | ||||
Broadcast | |||||
Segment data | |||||
Revenue | 595,892 | 569,869 | |||
Other | |||||
Segment data | |||||
Revenue | 69,460 | 57,067 | |||
Operating segments | Broadcast | |||||
Segment data | |||||
Revenue | 595,892 | 569,869 | |||
Depreciation of property and equipment | 25,399 | 21,946 | |||
Amortization of definite-lived intangible assets and other assets | 38,471 | 38,326 | |||
Amortization of program contract costs and net realizable value adjustments | 26,950 | 31,019 | |||
General and administrative overhead expenses | 21,744 | 18,992 | |||
Gain on asset dispositions, net of impairment | (84,100) | (357) | |||
Operating income (loss) | 176,166 | 114,544 | |||
Interest expense | 1,372 | 1,366 | |||
Loss from equity and cost method investments | 0 | 0 | |||
Assets | 5,096,281 | ||||
Operating segments | Other | |||||
Segment data | |||||
Revenue | 69,460 | 57,067 | |||
Depreciation of property and equipment | 1,906 | 1,769 | |||
Amortization of definite-lived intangible assets and other assets | 5,134 | 7,228 | |||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | |||
General and administrative overhead expenses | 255 | 288 | |||
Gain on asset dispositions, net of impairment | 62,991 | (52,990) | |||
Operating income (loss) | (66,235) | 44,649 | |||
Interest expense | 202 | 1,213 | |||
Loss from equity and cost method investments | (12,477) | (1,321) | |||
Assets | 685,140 | ||||
Asset impairment charges | 63,000 | ||||
Corporate | |||||
Segment data | |||||
Revenue | 0 | 0 | |||
Depreciation of property and equipment | 20 | 266 | |||
Amortization of definite-lived intangible assets and other assets | 0 | 0 | |||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | |||
General and administrative overhead expenses | 2,597 | 1,296 | |||
Gain on asset dispositions, net of impairment | 0 | 0 | |||
Operating income (loss) | (2,617) | (1,564) | |||
Interest expense | 68,168 | 54,739 | |||
Loss from equity and cost method investments | 0 | $ 0 | |||
Assets | $ 881,990 | ||||
Alarm Funding Associates | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Segment data | |||||
Gain on sale of consolidated non-media business | $ 53,000 | ||||
Gain on sale attributable to non-controlling interest | $ 12,300 | ||||
[1] | Our consolidated total assets as of March 31, 2018 and December 31, 2017 include total assets of variable interest entities (VIEs) of $122.5 million and $130.6 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2018 and December 31, 2017 include total liabilities of VIEs of $23.0 million and $27.0 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies. |
RELATED PERSON TRANSACTIONS - T
RELATED PERSON TRANSACTIONS - Transactions with our Controlling Shareholders (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Lease Services | Entities owned by the controlling shareholders | ||
Related Party Transaction [Line Items] | ||
Lease payments made to entities | $ 1.4 | $ 1.4 |
Charter Aircraft | Controlling shareholders | Maximum | ||
Related Party Transaction [Line Items] | ||
Aircraft expenses | $ 0.4 | $ 0.5 |
RELATED PERSON TRANSACTIONS - C
RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Aug. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2018USD ($)renewal | Mar. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||
Long-term debt | $ 4,030,000 | |||
Net revenue | $ 665,352 | $ 626,936 | ||
Affiliated Entity | Cunningham | ||||
Related Party Transaction [Line Items] | ||||
Right to acquire capital stock | 100.00% | |||
Remaining purchase price | $ 53,600 | |||
Purchase options, broadcast stations | $ 200 | |||
Proceeds from sale of master control equipment | $ 700 | |||
Annual revenue from master control services | $ 200 | |||
Annual revenue for share service | $ 1,000 | |||
Affiliated Entity | Cunningham | LMA | ||||
Related Party Transaction [Line Items] | ||||
Number of additional renewal terms | renewal | 2 | |||
Agreement renewal period | 5 years | |||
Lease payments made to entities | $ 2,600 | 2,000 | ||
Affiliated Entity | Cunningham | LMA | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid | 3.00% | |||
Amount used to determine annual LMA fees required to be paid | $ 5,000 | |||
Annual increase in aggregate purchase price | 6.00% | |||
Cunningham license related assets | Cunningham | ||||
Related Party Transaction [Line Items] | ||||
Agreement renewal period | 8 years | |||
Amount received | $ 13,400 | 1,400 | ||
Net revenue | 37,600 | $ 26,200 | ||
Guarantee Obligations | Affiliated Entity | Cunningham | ||||
Related Party Transaction [Line Items] | ||||
Unconditional and irrevocably guaranteed debt | 54,000 | |||
Consolidated VIEs | Affiliated Entity | Cunningham | ||||
Related Party Transaction [Line Items] | ||||
Long-term debt | $ 10,800 |
RELATED PERSON TRANSACTIONS - A
RELATED PERSON TRANSACTIONS - Atlantic Automotive Corporation (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)real_estate_venture | Mar. 31, 2017USD ($) | |
Lease Services | Atlantic Automotive Corporation | ||
Related Party Transaction [Line Items] | ||
Amount received | $ 0.3 | |
Atlantic Automotive Corporation | Lease Services | Affiliated Entity | Real estate ventures in Towson, MD | ||
Related Party Transaction [Line Items] | ||
Number of consolidated real estate ventures | real_estate_venture | 1 | |
Maximum | Atlantic Automotive Corporation | Advertising time | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Amount received | $ 0.1 | $ 0.1 |
RELATED PERSON TRANSACTIONS - L
RELATED PERSON TRANSACTIONS - Leased Property by Real Estate Ventures (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2016 | |
Maximum | Real estate ventures in Baltimore, MD | Lease Services | President and Chief Executive Officer | ||
Related Party Transaction [Line Items] | ||
Amount received | $ 0.1 | $ 0.2 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
FAIR VALUE MEASUREMENTS: | ||
Debt discount and deferred financing costs | $ 38,200 | $ 39,000 |
Level 2 | Carrying Value | Debt of variable interest entities | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 28,530 | 29,614 |
Level 2 | Carrying Value | Debt of other operating divisions | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 24,476 | 25,238 |
Level 2 | Fair Value | Debt of variable interest entities | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 28,530 | 29,614 |
Level 2 | Fair Value | Debt of other operating divisions | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | $ 24,476 | 25,238 |
Senior Unsecured Notes | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate | 6.125% | |
Senior Unsecured Notes | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate | 5.875% | |
Senior Unsecured Notes | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate | 5.625% | |
Senior Unsecured Notes | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate | 5.375% | |
Senior Unsecured Notes | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate | 5.125% | |
Senior Unsecured Notes | Level 2 | Carrying Value | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | $ 500,000 | 500,000 |
Senior Unsecured Notes | Level 2 | Carrying Value | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 350,000 | 350,000 |
Senior Unsecured Notes | Level 2 | Carrying Value | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 550,000 | 550,000 |
Senior Unsecured Notes | Level 2 | Carrying Value | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 600,000 | 600,000 |
Senior Unsecured Notes | Level 2 | Carrying Value | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 400,000 | 400,000 |
Senior Unsecured Notes | Level 2 | Fair Value | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 512,500 | 515,535 |
Senior Unsecured Notes | Level 2 | Fair Value | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 346,500 | 363,475 |
Senior Unsecured Notes | Level 2 | Fair Value | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 545,875 | 568,205 |
Senior Unsecured Notes | Level 2 | Fair Value | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 605,250 | 610,440 |
Senior Unsecured Notes | Level 2 | Fair Value | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 371,000 | 396,088 |
Term Loan | Level 2 | Carrying Value | Term Loan A-1 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 111,354 | 117,370 |
Term Loan | Level 2 | Carrying Value | Term Loan A-2 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 108,968 | 113,327 |
Term Loan | Level 2 | Carrying Value | Term Loan B | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 1,352,875 | 1,356,300 |
Term Loan | Level 2 | Fair Value | Term Loan A-1 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 111,354 | 117,370 |
Term Loan | Level 2 | Fair Value | Term Loan A-2 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 108,968 | 113,327 |
Term Loan | Level 2 | Fair Value | Term Loan B | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | $ 1,356,257 | $ 1,357,995 |
CONDENSED CONSOLIDATING FINAN48
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Narrative) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Long-term debt | $ 4,030 |
Sinclair Television Group, Inc. | |
Debt Instrument [Line Items] | |
Amount of debt guaranteed by parent | $ 4,008.3 |
Sinclair Television Group, Inc. | 5.375% Senior Unsecured Notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 5.375% |
Sinclair Television Group, Inc. | 5.625% Senior Unsecured Notes, due 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 5.625% |
Sinclair Television Group, Inc. | 6.125% Senior Unsecured Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 6.125% |
Sinclair Television Group, Inc. | 5.875% Senior Unsecured Notes due 2026 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Sinclair Television Group, Inc. | 5.125% Senior Unsecured Notes due 2027 | |
Debt Instrument [Line Items] | |
Interest rate | 5.125% |
Sinclair Broadcast Group, Inc. | |
Debt Instrument [Line Items] | |
Amount of debt guaranteed by parent | $ 3,963.7 |
Sinclair Broadcast Group, Inc. | 5.375% Senior Unsecured Notes due 2021 | |
Debt Instrument [Line Items] | |
Interest rate | 5.375% |
Sinclair Broadcast Group, Inc. | 5.625% Senior Unsecured Notes, due 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 5.625% |
Sinclair Broadcast Group, Inc. | 6.125% Senior Unsecured Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 6.125% |
Sinclair Broadcast Group, Inc. | 5.875% Senior Unsecured Notes due 2026 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Sinclair Broadcast Group, Inc. | 5.125% Senior Unsecured Notes due 2027 | |
Debt Instrument [Line Items] | |
Interest rate | 5.125% |
CONDENSED CONSOLIDATING FINAN49
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | $ 810,232 | $ 681,326 | |
Restricted cash, current | 226,558 | 313,110 | |
Accounts receivable | 538,472 | 566,464 | |
Other current assets | 139,429 | 153,847 | |
Total current assets | 1,714,691 | 1,714,747 | |
Property and equipment, net | 654,432 | 738,298 | |
Investment in consolidated subsidiaries | 0 | 0 | |
Goodwill | 2,021,970 | 2,124,033 | |
Indefinite-lived intangible assets | 156,629 | 159,371 | |
Definite-lived intangible assets | 1,729,563 | 1,801,670 | |
Other long-term assets | 386,126 | 246,351 | |
Total assets | [1] | 6,663,411 | 6,784,470 |
Accounts payable and accrued liabilities | 356,792 | 370,403 | |
Deferred spectrum auction proceeds | 0 | 84,341 | |
Current portion of long-term debt | 154,944 | 161,049 | |
Other current liabilities | 79,945 | 194,897 | |
Total current liabilities | 591,681 | 726,349 | |
Long-term debt | 3,875,025 | 3,887,601 | |
Other liabilities | 625,162 | 636,154 | |
Total liabilities | [1] | 5,091,868 | 5,250,104 |
Total Sinclair Broadcast Group equity (deficit) | 1,607,707 | 1,568,738 | |
Noncontrolling interests in consolidated subsidiaries | (36,164) | (34,372) | |
Total liabilities and equity | 6,663,411 | 6,784,470 | |
Reportable legal entities | Sinclair Broadcast Group, Inc. | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 0 | 0 | |
Restricted cash, current | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Other current assets | 1,874 | 3,034 | |
Total current assets | 1,874 | 3,034 | |
Property and equipment, net | 810 | 829 | |
Investment in consolidated subsidiaries | 1,576,613 | 1,537,337 | |
Goodwill | 0 | 0 | |
Indefinite-lived intangible assets | 0 | 0 | |
Definite-lived intangible assets | 0 | 0 | |
Other long-term assets | 31,854 | 31,757 | |
Total assets | 1,611,151 | 1,572,957 | |
Accounts payable and accrued liabilities | 299 | 1,100 | |
Current portion of long-term debt | 0 | 0 | |
Other current liabilities | 0 | 0 | |
Total current liabilities | 299 | 1,100 | |
Long-term debt | 0 | 0 | |
Other liabilities | 3,145 | 3,119 | |
Total liabilities | 3,444 | 4,219 | |
Total Sinclair Broadcast Group equity (deficit) | 1,607,707 | 1,568,738 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |
Total liabilities and equity | 1,611,151 | 1,572,957 | |
Reportable legal entities | Sinclair Television Group, Inc. | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 790,930 | 645,830 | |
Restricted cash, current | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Other current assets | 11,377 | 5,758 | |
Total current assets | 802,307 | 651,588 | |
Property and equipment, net | 32,025 | 31,111 | |
Investment in consolidated subsidiaries | 4,050,589 | 4,116,241 | |
Goodwill | 0 | 0 | |
Indefinite-lived intangible assets | 0 | 0 | |
Definite-lived intangible assets | 0 | 0 | |
Other long-term assets | 771,367 | 770,312 | |
Total assets | 5,656,288 | 5,569,252 | |
Accounts payable and accrued liabilities | 80,345 | 84,326 | |
Current portion of long-term debt | 142,489 | 148,505 | |
Other current liabilities | 0 | 0 | |
Total current liabilities | 222,834 | 232,831 | |
Long-term debt | 3,793,804 | 3,799,987 | |
Other liabilities | 39,510 | 38,282 | |
Total liabilities | 4,056,148 | 4,071,100 | |
Total Sinclair Broadcast Group equity (deficit) | 1,600,140 | 1,498,152 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |
Total liabilities and equity | 5,656,288 | 5,569,252 | |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 8,304 | 12,273 | |
Restricted cash, current | 226,558 | 311,110 | |
Accounts receivable | 493,922 | 530,273 | |
Other current assets | 130,298 | 145,637 | |
Total current assets | 859,082 | 999,293 | |
Property and equipment, net | 569,047 | 586,950 | |
Investment in consolidated subsidiaries | 4,179 | 4,179 | |
Goodwill | 2,018,103 | 2,120,166 | |
Indefinite-lived intangible assets | 142,356 | 145,073 | |
Definite-lived intangible assets | 1,710,136 | 1,781,045 | |
Other long-term assets | 260,001 | 104,363 | |
Total assets | 5,562,904 | 5,741,069 | |
Accounts payable and accrued liabilities | 243,674 | 261,266 | |
Current portion of long-term debt | 3,587 | 3,445 | |
Other current liabilities | 68,269 | 180,616 | |
Total current liabilities | 315,530 | 445,327 | |
Long-term debt | 36,081 | 39,730 | |
Other liabilities | 1,159,952 | 1,141,266 | |
Total liabilities | 1,511,563 | 1,626,323 | |
Total Sinclair Broadcast Group equity (deficit) | 4,051,341 | 4,114,746 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |
Total liabilities and equity | 5,562,904 | 5,741,069 | |
Reportable legal entities | Non- Guarantor Subsidiaries | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 10,998 | 23,223 | |
Restricted cash, current | 0 | 2,000 | |
Accounts receivable | 44,550 | 36,191 | |
Other current assets | 23,333 | 9,687 | |
Total current assets | 78,881 | 71,101 | |
Property and equipment, net | 65,163 | 132,010 | |
Investment in consolidated subsidiaries | 0 | 0 | |
Goodwill | 3,867 | 3,867 | |
Indefinite-lived intangible assets | 14,273 | 14,298 | |
Definite-lived intangible assets | 75,377 | 77,944 | |
Other long-term assets | 192,713 | 208,367 | |
Total assets | 430,274 | 507,587 | |
Accounts payable and accrued liabilities | 60,837 | 36,029 | |
Current portion of long-term debt | 9,343 | 9,645 | |
Other current liabilities | 11,676 | 14,281 | |
Total current liabilities | 81,856 | 59,955 | |
Long-term debt | 366,207 | 381,127 | |
Other liabilities | 172,500 | 187,569 | |
Total liabilities | 620,563 | 628,651 | |
Total Sinclair Broadcast Group equity (deficit) | (149,669) | (82,051) | |
Noncontrolling interests in consolidated subsidiaries | (40,620) | (39,013) | |
Total liabilities and equity | 430,274 | 507,587 | |
Eliminations | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 0 | 0 | |
Restricted cash, current | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Other current assets | (27,453) | (10,269) | |
Total current assets | (27,453) | (10,269) | |
Property and equipment, net | (12,613) | (12,602) | |
Investment in consolidated subsidiaries | (5,631,381) | (5,657,757) | |
Goodwill | 0 | 0 | |
Indefinite-lived intangible assets | 0 | 0 | |
Definite-lived intangible assets | (55,950) | (57,319) | |
Other long-term assets | (869,809) | (868,448) | |
Total assets | (6,597,206) | (6,606,395) | |
Accounts payable and accrued liabilities | (28,363) | (12,318) | |
Current portion of long-term debt | (475) | (546) | |
Other current liabilities | 0 | 0 | |
Total current liabilities | (28,838) | (12,864) | |
Long-term debt | (321,067) | (333,243) | |
Other liabilities | (749,945) | (734,082) | |
Total liabilities | (1,099,850) | (1,080,189) | |
Total Sinclair Broadcast Group equity (deficit) | (5,501,812) | (5,530,847) | |
Noncontrolling interests in consolidated subsidiaries | 4,456 | 4,641 | |
Total liabilities and equity | $ (6,597,206) | $ (6,606,395) | |
[1] | Our consolidated total assets as of March 31, 2018 and December 31, 2017 include total assets of variable interest entities (VIEs) of $122.5 million and $130.6 million, respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2018 and December 31, 2017 include total liabilities of VIEs of $23.0 million and $27.0 million, respectively, for which the creditors of the VIEs have no recourse to us. See Note 1. Nature of Operations and Summary of Significant Accounting Policies. |
CONDENSED CONSOLIDATING FINAN50
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net revenue | $ 665,352 | $ 626,936 |
Media program and production expenses | 288,549 | 258,401 |
Selling, general and administrative | 171,495 | 145,297 |
Depreciation, amortization and other operating expenses | 97,994 | 65,609 |
Total operating expenses | 558,038 | 469,307 |
Operating income | 107,314 | 157,629 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Interest expense | (69,742) | (57,318) |
Loss from extinguishment of debt | 0 | (1,404) |
Other income (expense) | (9,206) | 375 |
Total other expense, net | (78,948) | (58,347) |
Income tax benefit (provision) | 15,628 | (28,579) |
NET INCOME | 43,994 | 70,703 |
Net income attributable to the noncontrolling interests | (871) | (13,501) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 43,123 | 57,202 |
Comprehensive income | 43,994 | 70,703 |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net revenue | 0 | 0 |
Media program and production expenses | 0 | 0 |
Selling, general and administrative | 2,597 | 1,296 |
Depreciation, amortization and other operating expenses | 19 | 266 |
Total operating expenses | 2,616 | 1,562 |
Operating income | (2,616) | (1,562) |
Equity in earnings of consolidated subsidiaries | 45,037 | 58,189 |
Interest expense | 0 | (36) |
Loss from extinguishment of debt | 0 | |
Other income (expense) | 681 | 101 |
Total other expense, net | 45,718 | 58,254 |
Income tax benefit (provision) | 21 | 510 |
NET INCOME | 43,123 | 57,202 |
Net income attributable to the noncontrolling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 43,123 | 57,202 |
Comprehensive income | 43,123 | 57,202 |
Reportable legal entities | Sinclair Television Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net revenue | 0 | 0 |
Media program and production expenses | 0 | 0 |
Selling, general and administrative | 21,754 | 18,958 |
Depreciation, amortization and other operating expenses | 1,250 | 1,725 |
Total operating expenses | 23,004 | 20,683 |
Operating income | (23,004) | (20,683) |
Equity in earnings of consolidated subsidiaries | 171,770 | 87,805 |
Interest expense | (68,168) | (54,704) |
Loss from extinguishment of debt | (1,404) | |
Other income (expense) | 2,295 | 799 |
Total other expense, net | 105,897 | 32,496 |
Income tax benefit (provision) | 15,398 | 25,106 |
NET INCOME | 98,291 | 36,919 |
Net income attributable to the noncontrolling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 98,291 | 36,919 |
Comprehensive income | 98,291 | 36,919 |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net revenue | 625,683 | 595,239 |
Media program and production expenses | 273,415 | 248,451 |
Selling, general and administrative | 143,301 | 122,435 |
Depreciation, amortization and other operating expenses | 6,416 | 90,513 |
Total operating expenses | 423,132 | 461,399 |
Operating income | 202,551 | 133,840 |
Equity in earnings of consolidated subsidiaries | 429 | 50 |
Interest expense | (972) | (1,119) |
Loss from extinguishment of debt | 0 | |
Other income (expense) | (13,361) | 496 |
Total other expense, net | (13,904) | (573) |
Income tax benefit (provision) | (15,676) | (44,229) |
NET INCOME | 172,971 | 89,038 |
Net income attributable to the noncontrolling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 172,971 | 89,038 |
Comprehensive income | 172,971 | 89,039 |
Reportable legal entities | Non- Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net revenue | 58,011 | 50,857 |
Media program and production expenses | 32,020 | 28,444 |
Selling, general and administrative | 4,284 | 2,633 |
Depreciation, amortization and other operating expenses | 91,008 | (26,450) |
Total operating expenses | 127,312 | 4,627 |
Operating income | (69,301) | 46,230 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Interest expense | (4,550) | (7,623) |
Loss from extinguishment of debt | 0 | |
Other income (expense) | 1,179 | (1,021) |
Total other expense, net | (3,371) | (8,644) |
Income tax benefit (provision) | 15,885 | (9,966) |
NET INCOME | (56,787) | 27,620 |
Net income attributable to the noncontrolling interests | (1,056) | (13,494) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | (57,843) | 14,126 |
Comprehensive income | (56,787) | 27,619 |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Net revenue | (18,342) | (19,160) |
Media program and production expenses | (16,886) | (18,494) |
Selling, general and administrative | (441) | (25) |
Depreciation, amortization and other operating expenses | (699) | (445) |
Total operating expenses | (18,026) | (18,964) |
Operating income | (316) | (196) |
Equity in earnings of consolidated subsidiaries | (217,236) | (146,044) |
Interest expense | 3,948 | 6,164 |
Loss from extinguishment of debt | 0 | |
Other income (expense) | 0 | 0 |
Total other expense, net | (213,288) | (139,880) |
Income tax benefit (provision) | 0 | 0 |
NET INCOME | (213,604) | (140,076) |
Net income attributable to the noncontrolling interests | 185 | (7) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | (213,419) | (140,083) |
Comprehensive income | $ (213,604) | $ (140,076) |
CONDENSED CONSOLIDATING FINAN51
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | $ 100,943 | $ 69,642 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (22,219) | (20,774) |
Acquisition of businesses, net of cash acquired | 0 | (8,000) |
Proceeds from the sale of assets | 49 | 195,149 |
Investments in equity and cost method investees | (7,750) | (3,080) |
Distributions from equity and cost method investees | 10,832 | 3,272 |
Other, net | 1,862 | 8,408 |
Net cash flows (used in) from investing activities | (20,950) | 158,159 |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 363 | 163,089 |
Repayments of notes payable, commercial bank financing and capital leases | (16,950) | (284,422) |
Net proceeds from the sale of Class A Common Stock | 0 | 487,883 |
Dividends paid on Class A and Class B Common Stock | (18,392) | (16,257) |
Increase (decrease) in intercompany payables | 0 | 0 |
Other, net | (2,659) | (17,884) |
Net cash flows (used in) from financing activities | (37,638) | 332,409 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 42,355 | 560,210 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 995,940 | 260,184 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 1,038,295 | 820,394 |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 1,304 | 1,126 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | 0 | (50) |
Acquisition of businesses, net of cash acquired | 0 | |
Proceeds from the sale of assets | 0 | 0 |
Investments in equity and cost method investees | (370) | (945) |
Distributions from equity and cost method investees | 1,709 | 2,266 |
Other, net | 0 | 0 |
Net cash flows (used in) from investing activities | 1,339 | 1,271 |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 0 |
Repayments of notes payable, commercial bank financing and capital leases | 0 | 0 |
Net proceeds from the sale of Class A Common Stock | 487,883 | |
Dividends paid on Class A and Class B Common Stock | (18,392) | (16,257) |
Increase (decrease) in intercompany payables | 14,869 | (471,945) |
Other, net | 880 | (2,078) |
Net cash flows (used in) from financing activities | (2,643) | (2,397) |
NET 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 |
Reportable legal entities | Sinclair Television Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | (88,587) | (44,685) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (2,214) | (3,259) |
Acquisition of businesses, net of cash acquired | 0 | |
Proceeds from the sale of assets | 0 | 0 |
Investments in equity and cost method investees | (31) | (300) |
Distributions from equity and cost method investees | 0 | 0 |
Other, net | 1,862 | 3,083 |
Net cash flows (used in) from investing activities | (4,107) | (6,642) |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 159,669 |
Repayments of notes payable, commercial bank financing and capital leases | (13,800) | (172,519) |
Net proceeds from the sale of Class A Common Stock | 0 | |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | 251,594 | 615,437 |
Other, net | 0 | (360) |
Net cash flows (used in) from financing activities | 237,794 | 602,227 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 145,100 | 550,900 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 645,830 | 232,297 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 790,930 | 783,197 |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 193,725 | 127,520 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (18,505) | (16,840) |
Acquisition of businesses, net of cash acquired | (8,000) | |
Proceeds from the sale of assets | 49 | 0 |
Investments in equity and cost method investees | (6,778) | (47) |
Distributions from equity and cost method investees | 0 | 0 |
Other, net | 0 | (357) |
Net cash flows (used in) from investing activities | (25,234) | (24,530) |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 0 |
Repayments of notes payable, commercial bank financing and capital leases | (843) | (445) |
Net proceeds from the sale of Class A Common Stock | 0 | |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | (256,169) | (102,763) |
Other, net | 0 | 586 |
Net cash flows (used in) from financing activities | (257,012) | (102,622) |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (88,521) | 368 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 323,383 | 10,875 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 234,862 | 11,243 |
Reportable legal entities | Non- Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | (10,684) | (13,853) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (1,500) | (806) |
Acquisition of businesses, net of cash acquired | 0 | |
Proceeds from the sale of assets | 0 | 195,149 |
Investments in equity and cost method investees | (571) | (1,788) |
Distributions from equity and cost method investees | 9,123 | 1,006 |
Other, net | 0 | 5,682 |
Net cash flows (used in) from investing activities | 7,052 | 187,879 |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 363 | 3,420 |
Repayments of notes payable, commercial bank financing and capital leases | (2,400) | (111,458) |
Net proceeds from the sale of Class A Common Stock | 0 | |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | (5,016) | (40,939) |
Other, net | (3,539) | (16,107) |
Net cash flows (used in) from financing activities | (10,592) | (165,084) |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (14,224) | 8,942 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 26,727 | 17,012 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 12,503 | 25,954 |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 5,185 | (466) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | 0 | 181 |
Acquisition of businesses, net of cash acquired | 0 | |
Proceeds from the sale of assets | 0 | 0 |
Investments in equity and cost method investees | 0 | 0 |
Distributions from equity and cost method investees | 0 | 0 |
Other, net | 0 | 0 |
Net cash flows (used in) from investing activities | 0 | 181 |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable and commercial bank financing | 0 | 0 |
Repayments of notes payable, commercial bank financing and capital leases | 93 | 0 |
Net proceeds from the sale of Class A Common Stock | 0 | |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Increase (decrease) in intercompany payables | (5,278) | 210 |
Other, net | 0 | 75 |
Net cash flows (used in) from financing activities | (5,185) | 285 |
NET 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 |