Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | SINCLAIR BROADCAST GROUP INC | |
Entity Central Index Key | 0000912752 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 65,826,328 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 25,527,682 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 975,347 | $ 1,060,330 | |
Accounts receivable, net of allowance for doubtful accounts of $1,763 and $2,379, respectively | 581,226 | 598,597 | |
Current portion of program contract costs | 42,092 | 64,247 | |
Prepaid expenses and other current assets | 84,337 | 60,732 | |
Total current assets | 1,683,002 | 1,783,906 | |
Program contract costs, less current portion | 9,369 | 11,217 | |
Property and equipment, net | 687,217 | 683,134 | |
Operating lease assets | 193,792 | ||
Goodwill | 2,123,902 | 2,123,902 | |
Indefinite-lived intangible assets | 158,364 | 158,222 | |
Definite-lived intangible assets, net | 1,584,021 | 1,626,880 | |
Other assets | 194,541 | 184,831 | |
Total assets | [1] | 6,634,208 | 6,572,092 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 376,287 | 413,227 | |
Income taxes payable | 24,738 | 23,314 | |
Current portion of notes payable, finance leases and commercial bank financing | 42,193 | 42,564 | |
Current portion of operating lease liabilities | 22,779 | ||
Current portion of program contracts payable | 73,583 | 93,480 | |
Total current liabilities | 539,580 | 572,585 | |
Notes payable, finance leases and commercial bank financing, less current portion | 3,840,952 | 3,849,891 | |
Operating lease liabilities, less current portion | 193,970 | ||
Program contracts payable, less current portion | 45,445 | 50,060 | |
Deferred tax liabilities | 414,873 | 413,253 | |
Other long-term liabilities | 80,235 | 85,983 | |
Total liabilities | [1] | 5,115,055 | 4,971,772 |
Commitments and contingencies (See Note 5) | |||
Shareholders' Equity: | |||
Additional paid-in capital | 1,038,332 | 1,121,054 | |
Retained earnings | 520,936 | 517,620 | |
Accumulated other comprehensive loss | (784) | (784) | |
Total Sinclair Broadcast Group shareholders’ equity | 1,559,401 | 1,638,836 | |
Noncontrolling interests | (40,248) | (38,516) | |
Total equity | 1,519,153 | 1,600,320 | |
Total liabilities and equity | 6,634,208 | 6,572,092 | |
Assets of variable interest entities | 124,200 | 127,600 | |
Liabilities of variable interest entities | 17,500 | 22,300 | |
Class A Common Stock | |||
Shareholders' Equity: | |||
Common Stock | 662 | 689 | |
Class B Common Stock | |||
Shareholders' Equity: | |||
Common Stock | $ 255 | $ 257 | |
[1] | Our consolidated total assets as of March 31, 2019 and December 31, 2018 include total assets of variable interest entities (VIEs) of $124.2 million and $127.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2019 and December 31, 2018 include total liabilities of VIEs of $17.5 million and $22.3 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 1,763 | $ 2,379 |
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) | 66,241,852 | 68,897,723 |
Common Stock, shares outstanding (shares) | 66,241,852 | 68,897,723 |
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) | 25,527,682 | 25,670,684 |
Common Stock, shares outstanding (shares) | 25,527,682 | 25,670,684 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES: | ||
Revenues | $ 722,103 | $ 665,352 |
OPERATING EXPENSES: | ||
Media production expenses | 319,044 | 288,549 |
Media selling, general and administrative expenses | 159,923 | 146,899 |
Amortization of program contract costs and net realizable value adjustments | 23,937 | 26,950 |
Non-media expenses | 39,300 | 21,223 |
Depreciation of property and equipment | 23,020 | 27,325 |
Corporate general and administrative expenses | 27,726 | 24,596 |
Amortization of definite-lived intangible and other assets | 43,464 | 43,605 |
Gain on asset dispositions and other, net of impairment | (7,909) | (21,109) |
Total operating expenses | 628,505 | 558,038 |
Operating income | 93,598 | 107,314 |
OTHER INCOME (EXPENSE): | ||
Interest expense and amortization of debt discount and deferred financing costs | (54,626) | (69,742) |
(Loss) income from equity method investments | (13,637) | (12,587) |
Other income, net | 2,195 | 3,381 |
Total other expense, net | (66,068) | (78,948) |
Income before income taxes | 27,530 | 28,366 |
INCOME TAX (PROVISION) BENEFIT | (4,759) | 15,628 |
NET INCOME | 22,771 | 43,994 |
Net income attributable to the noncontrolling interests | (1,099) | (871) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | $ 21,672 | $ 43,123 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | ||
Basic earnings per share (USD per share) | $ 0.23 | $ 0.42 |
Diluted earnings per share (USD per share) | $ 0.23 | $ 0.42 |
Weighted average common shares outstanding (shares) | 92,302 | 101,899 |
Weighted average common and common equivalent shares outstanding (shares) | 93,218 | 102,917 |
Media revenues | ||
REVENUES: | ||
Revenues | $ 673,364 | $ 643,651 |
Non-media revenues | ||
REVENUES: | ||
Revenues | $ 48,739 | $ 21,701 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,771 | $ 43,994 |
Comprehensive income | 22,771 | 43,994 |
Comprehensive income attributable to the noncontrolling interests | (1,099) | (871) |
Comprehensive income attributable to Sinclair Broadcast Group | $ 21,672 | $ 43,123 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Retained Earnings | 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, 2017 | 76,071,145 | 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 | ||||||||
Class A Common Stock issued pursuant to employee benefit plans | 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 | 25,670,684 | |||||||
BALANCE at Mar. 31, 2018 | 1,571,543 | 1,332,432 | 275,676 | (1,423) | (36,164) | $ 765 | $ 257 | ||
BALANCE (shares) at Dec. 31, 2018 | 68,897,723 | 68,897,723 | 25,670,684 | 25,670,684 | |||||
BALANCE at Dec. 31, 2018 | 1,600,320 | 1,121,054 | 517,620 | (784) | (38,516) | $ 689 | $ 257 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends declared and paid on Class A and Class B Common Stock | (18,356) | (18,356) | |||||||
Class B Common Stock converted into Class A Common Stock (in shares) | 143,002 | (143,002) | |||||||
Class B Common Stock converted into Class A Common Stock | 0 | $ 2 | $ (2) | ||||||
Repurchases of Class A Common Stock (in shares) | (3,493,194) | ||||||||
Repurchases of Class A Common Stock | (104,985) | (104,950) | $ (35) | ||||||
Class A Common Stock issued pursuant to employee benefit plans (shares) | 694,321 | ||||||||
Class A Common Stock issued pursuant to employee benefit plans | 22,234 | 22,228 | $ 6 | ||||||
Distributions to noncontrolling interests, net | (2,831) | (2,831) | |||||||
Net income | 22,771 | 21,672 | 1,099 | ||||||
BALANCE (shares) at Mar. 31, 2019 | 66,241,852 | 66,241,852 | 25,527,682 | 25,527,682 | |||||
BALANCE at Mar. 31, 2019 | $ 1,519,153 | $ 1,038,332 | $ 520,936 | $ (784) | $ (40,248) | $ 662 | $ 255 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class A Common Stock | ||
Dividends declared per share (USD per share) | $ 0.20 | $ 0.18 |
Dividends paid per share (USD per share) | 0.20 | 0.18 |
Class B Common Stock | ||
Dividends declared per share (USD per share) | 0.20 | 0.18 |
Dividends paid per share (USD per share) | $ 0.20 | $ 0.18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 22,771 | $ 43,994 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation of property and equipment | 23,020 | 27,325 |
Amortization of definite-lived intangible and other assets | 43,464 | 43,605 |
Amortization of program contract costs and net realizable value adjustments | 23,937 | 26,950 |
Stock-based compensation | 10,819 | 6,956 |
Deferred tax provision (benefit) | 2,075 | (16,342) |
Gain on asset dispositions and other, net of impairment | (8,020) | (20,324) |
Loss from equity method investments | 13,637 | 12,703 |
Change in assets and liabilities, net of acquisitions: | ||
Decrease in accounts receivable | 15,987 | 26,504 |
Increase in prepaid expenses and other current assets | (23,236) | (18,353) |
Decrease in accounts payable and accrued liabilities | (17,642) | (8,473) |
Net change in net income taxes payable/receivable | 1,424 | 241 |
Decrease in program contracts payable | (24,448) | (28,492) |
Other, net | 15,887 | 4,649 |
Net cash flows from operating activities | 99,675 | 100,943 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (29,008) | (22,219) |
Payments for debt and equity investments | (25,725) | (7,750) |
Distributions from equity method investees | 695 | 9,162 |
Other, net | 6,883 | (143) |
Net cash flows used in investing activities | (47,155) | (20,950) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | (11,062) | (16,950) |
Dividends paid on Class A and Class B Common Stock | (18,356) | (18,392) |
Repurchase of outstanding Class A Common Stock | (104,985) | 0 |
Other, net | (3,100) | (2,296) |
Net cash flows used in financing activities | (137,503) | (37,638) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (84,983) | 42,355 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 1,060,330 | 995,940 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ 975,347 | $ 1,038,295 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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, 2019 , 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 605 channels as of March 31, 2019 . For the purpose of this report, these 191 stations and 605 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. Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees. We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities The consolidated financial statements for the three months ended March 31, 2019 and 2018 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 statements 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, 2018 We measure our investments, excluding equity method investments, at fair value or, in situations where fair value is not readily determinable, we have the option to value investments at cost plus observable changes in value less impairment. Investments accounted for utilizing the measurement alternative were $22.9 million , net of $1.6 million of cumulative impairments, as of March 31, 2019 and $24.5 million as of December 31, 2018 . For the three months ended March 31, 2019 , we recorded a $1.6 million impairment related to one investment accounted for utilizing the measurement alternative, which is reflected in other income, net in our consolidated statements of operations. For the three months ended March 31, 2018 , there were no In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to accounting for leases, Accounting Standards Codification Topic 842 (ASC 842). We adopted the new guidance on January 1, 2019 using the modified retrospective approach and the optional transition method. Under this adoption method, comparative prior periods were not adjusted and continue to be reported in accordance with our historical accounting policy. We elected to apply the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carryforward our historical assessments of whether contracts are, or contain, leases and lease classification. The primary impact of adopting this standard was the recognition of $215.2 million of operating lease liabilities and $196.1 million of operating lease assets, upon adoption. The adoption did not have a material impact on how we account for finance leases. See Note 4. Leases for more information regarding our leasing arrangements. In August 2018, the FASB issued guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, with the capitalized implementation costs of a hosting arrangement that is a service contract expensed over the term of the hosting arrangement. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In October 2018, the FASB issued guidance for determining whether a decision-making fee is a variable interest. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. The following table presents our revenue disaggregated by type and segment (in thousands): Three Months Ended March 31, 2019 March 31, 2018 Broadcast Other Total Broadcast Other Total Advertising revenue $ 287,850 $ 20,202 $ 308,052 $ 298,912 $ 17,416 $ 316,328 Distribution revenue 319,998 32,167 352,165 287,125 27,235 314,360 Other media and non-media revenues 10,653 51,233 61,886 9,855 24,809 34,664 Total revenues $ 618,501 $ 103,602 $ 722,103 $ 595,892 $ 69,460 $ 665,352 Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions on our broadcast television and digital platforms. 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. In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty. Deferred Revenues. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Deferred revenues were $75.1 million and $83.3 million as of March 31, 2019 and December 31, 2018 , respectively. Deferred revenues recognized during the three months ended March 31, 2019 and 2018 that were included in the deferred revenues balance as of December 31, 2018 and 2017 were $38.2 million and $23.2 million Our income tax provision for all periods consists of federal and state income taxes. The tax provision for the three months ended March 31, 2019 and 2018 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, 2019 was less than the statutory rate primarily due to $4.7 million of federal tax credits related to investments in sustainability initiatives offset by a $2.5 million increase in liability for unrecognized tax benefits. 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. We believe it is reasonably possible that our liability for unrecognized tax benefits related to continuing operations could be reduced by up to $3.5 million On September 6, 2016 , the Board of Directors authorized a $150.0 million share repurchase authorization. On August 9, 2018 , the Board of Directors authorized an additional $1.0 billion share repurchase authorization. There is no expiration date and currently, management has no plans to terminate this program. For the three months ended March 31, 2019 , we repurchased approximately 3.5 million shares of Class A Common Stock for $105.0 million . As of March 31, 2019 , the total remaining purchase authorization was $763.1 million . During April 2019, we repurchased an additional 0.5 million shares of Class A Common Stock for $20.0 million In May 2019, our Board of Directors declared a quarterly dividend of $0.20 per share, payable on June 17, 2019 to holders of record at the close of business on May 31, 2019. In May 2019, we announced the acquisition of certain regional sports networks. See Pending Acquisitions under Note 2. Acquisitions and Dispositions of Assets |
ACQUISITIONS AND DISPOSITIONS O
ACQUISITIONS AND DISPOSITIONS OF ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS OF ASSETS | ACQUISITIONS AND DISPOSITIONS OF ASSETS: Pending Acquisitions In May 2019, Diamond Sports Group, LLC (Diamond), an indirect wholly-owned subsidiary of the Company, entered into a definitive agreement with The Walt Disney Company (Disney) to acquire the equity interests in 21 Regional Sports Networks and Fox College Sports (collectively the RSNs), which were acquired by Disney in its acquisition of Twenty-First Century Fox, Inc., for a purchase price of $9.6 billion , subject to certain adjustments. Completion of the transaction is subject to customary closing conditions, including the approval of the U.S. Department of Justice (DOJ). We expect to capitalize Diamond with $1.4 billion in cash equity, comprised of a combination of approximately $0.7 billion of cash on hand and a contribution of $0.7 billion in the form of new fully committed debt at Sinclair Television Group, Inc (STG). In addition, the purchase price will be funded with $1.0 billion of fully committed privately-placed preferred equity of a newly-formed indirect wholly-owned subsidiary of the Company and an indirect parent of Diamond. The remainder of the purchase price will be funded by $8.2 billion of fully committed secured and unsecured debt incurred by Diamond. The transaction will be treated as an asset sale for tax purposes, with the Company receiving a full step-up in basis. The secured and unsecured debt incurred by Diamond will be guaranteed by Diamond’s direct parent and certain wholly-owned subsidiaries of Diamond, and secured by certain assets of Diamond and the guarantors. However, the secured and unsecured debt incurred by Diamond will not be guaranteed by the Company, STG, or any of STG’s subsidiaries. In connection with the preferred equity, the Company will provide a guarantee of collection of distributions from Diamond. The newly committed debt at STG will be guaranteed by the Company, certain other subsidiaries of the Company, and certain subsidiaries of STG, and secured by certain assets of STG and the guarantors, consistent with existing terms loans under the existing bank credit facility. Termination of Material Definitive Agreement In August 2018, we received a termination notice from Tribune Media Company (Tribune), terminating the Agreement and Plan of Merger entered into on May 8, 2017, between the Company and Tribune (Merger Agreement), which provided for the acquisition by the Company of all of the outstanding shares of Tribune Class A common stock and Tribune Class B common stock (Merger). See Litigation under Note 5. Commitments and Contingencies for further discussion on our pending litigation related to the Tribune acquisition. For the three months ended March 31, 2018 , we recognized $21.7 million of costs in connection with this acquisition, which included $4.7 million primarily related to legal and other professional services, that we expensed as incurred and classified as corporate general and administrative expenses on our consolidated statements of operations; and $17.0 million related to ticking fees, which was recorded as interest expense on our consolidated statements of operations. Dispositions 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. For the three months ended March 31, 2018 , we recognized a gain of $83.3 million which is included within gain loss on asset dispositions and other, 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 100 of our stations have been assigned to new channels. Legislation has provided the FCC with a $2.75 billion fund to reimburse reasonable costs incurred by stations that are reassigned to new channels in the repack. We expect that the reimbursements from the fund will cover the majority of our expenses related to the repack. During the first quarter 2019 and 2018 , we recorded a gain of $8.0 million and $0.8 million , respectively, related to reimbursements for spectrum repack costs incurred, which are recorded within gain on asset dispositions and other, net of impairment on our consolidated financial statements. For the three months ended March 31, 2019 and 2018 , capital expenditures related to the spectrum repack were $12.7 million and $3.4 million |
NOTES PAYABLE AND COMMERCIAL BA
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | NOTES PAYABLE AND COMMERCIAL BANK FINANCING: Notes payable and finance leases to affiliates The current portion of notes payable, finance leases, and commercial bank financing on our consolidated balance sheets includes finance leases to affiliates of $1.9 million as of both March 31, 2019 and December 31, 2018 . Notes payable, finance leases, and commercial bank financing, less current portion, on our consolidated balance sheets includes long-term finance leases to affiliates of $10.2 million and $10.6 million as of March 31, 2019 and December 31, 2018 , respectively. Debt of variable interest entities and guarantees of third-party debt We jointly, severally, unconditionally, and irrevocably guarantee $74.6 million and $76.5 million of debt of certain third parties as of March 31, 2019 and December 31, 2018 , respectively, of which $23.4 million and $24.4 million , net of deferred financing costs, related to consolidated VIEs is included on our consolidated balance sheets as of March 31, 2019 and December 31, 2018 , respectively. These guarantees primarily relate to the debt of Cunningham Broadcasting Corporation (Cunningham) as discussed under Cunningham Broadcasting Corporation within Note 9. Related Person Transactions . We have determined that, as of March 31, 2019 and December 31, 2018 , it is not probable that we would have to perform under any of these guarantees. Bank Credit Agreement On April 30, 2019, we paid in full the remaining principal balance of $91.5 million |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES: As described in Note 1. Nature of Operations and Summary of Significant Accounting Policies , we adopted new lease accounting guidance effective January 1, 2019. We determine if a contractual arrangement is a lease at inception. Our lease arrangements provide the Company the right to utilize certain specified tangible assets for a period of time in exchange for consideration. Our leases primarily relate to building space, tower space, and equipment. We do not separate non-lease components from our building and tower leases for the purposes of measuring our lease liabilities and assets. Our leases consist of operating leases and finance leases which are presented separately within our consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize a lease liability and a right of use asset at the lease commencement date based on the present value of the future lease payments over the lease term discounted using our incremental borrowing rate. Implicit interest rates within our lease arrangements are rarely determinable. Right of use assets also include, if applicable, prepaid lease payments and initial direct costs, less incentives received. We recognize operating lease expense on a straight-line basis over the term of the lease within operating expenses. Expense associated with our finance leases consists of two components, including interest on our outstanding finance lease obligations and amortization of the related right of use assets. The interest component is recorded in interest expense, and amortization of the finance lease asset is recognized on a straight-line basis over the term of the lease in depreciation of property and equipment. Our leases do not contain any material residual value guarantees or material restrictive covenants. Some of our leases include optional renewal periods or termination provisions which we assess at inception to determine the term of the lease, subject to reassessment in certain circumstances. The following table presents lease expense we have recorded within our consolidated statements of operations for the three months ended March 31, 2019 (in thousands): Three Months Ended March 31, 2019 Finance lease expense: Amortization of finance lease asset $ 719 Interest on lease liabilities 914 Total finance lease expense 1,633 Operating lease expense (a) 9,938 Total lease expense $ 11,571 (a) Includes variable lease expense of $1.1 million and short term lease expense of $0.3 million . The following table summarizes our outstanding operating and finance lease obligations as of March 31, 2019 (in thousands): Operating Leases Finance Leases Total 2019 $ 25,059 $ 6,068 $ 31,127 2020 31,392 7,938 39,330 2021 29,368 7,908 37,276 2022 26,572 7,166 33,738 2023 25,147 7,138 32,285 Thereafter 162,163 21,218 183,381 Total undiscounted obligations 299,701 57,436 357,137 Less imputed interest (82,952 ) (16,293 ) (99,245 ) Present value of lease obligations $ 216,749 $ 41,143 $ 257,892 Future minimum payments under operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 32,108 2020 31,287 2021 29,547 2022 26,702 2023 24,325 2024 and thereafter 157,816 Total $ 301,785 The following table summarizes supplemental balance sheet information related to leases as of March 31, 2019 (in thousands, except years): Operating Leases Finance Leases Lease assets, non-current $ 193,792 $ 16,151 (a) Lease liabilities, current $ 22,779 $ 4,478 Lease liabilities, non-current 193,970 36,665 Total lease liabilities $ 216,749 $ 41,143 Weighted average remaining term (in years) 10.94 7.74 Weighted average discount rate 5.6 % 9.0 % (a) Finance lease assets are reflected in property and equipment, net. The following table presents other information related to leases for the three months ended March 31, 2019 (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,218 Operating cash flows from finance leases 993 Financing cash flows from finance leases 1,101 Leased assets obtained in exchange for new lease liabilities 4,127 |
LEASES | LEASES: As described in Note 1. Nature of Operations and Summary of Significant Accounting Policies , we adopted new lease accounting guidance effective January 1, 2019. We determine if a contractual arrangement is a lease at inception. Our lease arrangements provide the Company the right to utilize certain specified tangible assets for a period of time in exchange for consideration. Our leases primarily relate to building space, tower space, and equipment. We do not separate non-lease components from our building and tower leases for the purposes of measuring our lease liabilities and assets. Our leases consist of operating leases and finance leases which are presented separately within our consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize a lease liability and a right of use asset at the lease commencement date based on the present value of the future lease payments over the lease term discounted using our incremental borrowing rate. Implicit interest rates within our lease arrangements are rarely determinable. Right of use assets also include, if applicable, prepaid lease payments and initial direct costs, less incentives received. We recognize operating lease expense on a straight-line basis over the term of the lease within operating expenses. Expense associated with our finance leases consists of two components, including interest on our outstanding finance lease obligations and amortization of the related right of use assets. The interest component is recorded in interest expense, and amortization of the finance lease asset is recognized on a straight-line basis over the term of the lease in depreciation of property and equipment. Our leases do not contain any material residual value guarantees or material restrictive covenants. Some of our leases include optional renewal periods or termination provisions which we assess at inception to determine the term of the lease, subject to reassessment in certain circumstances. The following table presents lease expense we have recorded within our consolidated statements of operations for the three months ended March 31, 2019 (in thousands): Three Months Ended March 31, 2019 Finance lease expense: Amortization of finance lease asset $ 719 Interest on lease liabilities 914 Total finance lease expense 1,633 Operating lease expense (a) 9,938 Total lease expense $ 11,571 (a) Includes variable lease expense of $1.1 million and short term lease expense of $0.3 million . The following table summarizes our outstanding operating and finance lease obligations as of March 31, 2019 (in thousands): Operating Leases Finance Leases Total 2019 $ 25,059 $ 6,068 $ 31,127 2020 31,392 7,938 39,330 2021 29,368 7,908 37,276 2022 26,572 7,166 33,738 2023 25,147 7,138 32,285 Thereafter 162,163 21,218 183,381 Total undiscounted obligations 299,701 57,436 357,137 Less imputed interest (82,952 ) (16,293 ) (99,245 ) Present value of lease obligations $ 216,749 $ 41,143 $ 257,892 Future minimum payments under operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 32,108 2020 31,287 2021 29,547 2022 26,702 2023 24,325 2024 and thereafter 157,816 Total $ 301,785 The following table summarizes supplemental balance sheet information related to leases as of March 31, 2019 (in thousands, except years): Operating Leases Finance Leases Lease assets, non-current $ 193,792 $ 16,151 (a) Lease liabilities, current $ 22,779 $ 4,478 Lease liabilities, non-current 193,970 36,665 Total lease liabilities $ 216,749 $ 41,143 Weighted average remaining term (in years) 10.94 7.74 Weighted average discount rate 5.6 % 9.0 % (a) Finance lease assets are reflected in property and equipment, net. The following table presents other information related to leases for the three months ended March 31, 2019 (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,218 Operating cash flows from finance leases 993 Financing cash flows from finance leases 1,101 Leased assets obtained in exchange for new lease liabilities 4,127 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: Litigation We are a party to lawsuits, claims, and regulatory matters from time to time in the ordinary course of business. Actions currently pending are in various stages and no material judgments or decisions have been rendered by hearing boards or courts in connection with such actions. Except as noted below, we do not believe the outcome of these matters, individually or in the aggregate, will have a material effect on the Company's financial statements. 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. On November 6, 2018, the Company agreed to enter into a proposed consent decree with the Department of Justice (DOJ). This consent decree resolves the Department of Justice’s investigation into the sharing of pacing information among certain stations in some local markets. The DOJ filed the consent decree and related documents in the U.S. District Court for the District of Columbia on November 13, 2018. The consent decree is not an admission of any wrongdoing by the Company, and does not subject Sinclair to any monetary damages or penalties. The Company believes that even if the pacing information was shared as alleged, it would not have impacted any pricing of advertisements or the competitive nature of the market. The consent decree requires the Company to adopt certain antitrust compliance measures, including the appointment of an Antitrust Compliance Officer, consistent with what the Department of Justice has required in previous consent decrees in other industries. The consent decree also requires the Company stations not to exchange pacing and certain other information with other stations in their local markets, which the Company’s management has already instructed them not to do. The Company is aware of twenty-two putative class action lawsuits filed in United States District Court against the Company. Most of these lawsuits were also brought against other broadcasters and other defendants, including, in certain cases, unidentified “John Doe” defendants. The lawsuits allege that the defendants conspired to fix prices for commercials to be aired on broadcast television stations throughout the United States, in violation of the Sherman Antitrust Act, and, in one case, state consumer protection and tort laws. The lawsuits seek damages, attorneys’ fees, costs and interest, as well as injunctions against adopting practices or plans that would restrain competition in the ways the plaintiffs have alleged. The lawsuits followed published reports of a DOJ investigation last year into the exchange of pacing data within the industry. The Company believes the class action lawsuits are without merit and intends to vigorously defend itself against all such claims. On July 19, 2018, the FCC released a Hearing Designation Order (HDO) to commence a hearing before an Administrative Law Judge (ALJ) with respect to the Company’s proposed acquisition of Tribune. The HDO directed the FCC's Media Bureau to hold in abeyance all other pending applications and amendments thereto related to the proposed Merger with Tribune until the issues that are the subject of the HDO have been resolved with finality. The HDO asked the ALJ to determine (i) whether Sinclair was the real party in interest to the sale of WGN-TV, KDAF(TV), and KIAH(TV), (ii) if so, whether the Company engaged in misrepresentation and/or lack of candor in its applications with the FCC and (iii) whether consummation of the overall transaction would be in the public interest and compliance with the FCC’s ownership rules. The Company maintains that the overall transaction and the proposed divestitures complied with the FCC’s rules, and strongly rejects any allegation of misrepresentation or lack of candor. The Merger Agreement was terminated by Tribune on August 9, 2018, on which date the Company subsequently filed a letter with the FCC to withdraw the merger applications and have them dismissed with prejudice and filed with the ALJ a Notice of Withdrawal of Applications and Motion to Terminate Hearing (Motion). On August 10, 2018, the FCC's Enforcement Bureau filed a responsive pleading with the ALJ stating that it did not oppose dismissal of the merger applications and concurrent termination of the hearing proceeding. The ALJ granted the Motion and terminated the hearing on March 5, 2019. We cannot predict whether or how the issues raised in the now-terminated HDO might impact the Company's ability to acquire additional TV stations in the future. On August 9, 2018, Tribune filed a complaint (the "Tribune Complaint") in the Court of Chancery of the State of Delaware against the Company, which action is captioned Tribune Media Company v. Sinclair Broadcast Group, Inc, Case No. 2018-0593-JTL. The Tribune Complaint alleges that the Company breached the Merger Agreement by, among other things, failing to use its reasonable best efforts to secure regulatory approval of the Merger, and that such breach resulted in the failure of the Merger to obtain regulatory approval and close. The Tribune Complaint seeks declaratory relief, money damages in an amount to be determined at trial (but which the Tribune Complaint suggests could be in excess $1 billion ), and attorney's fees and costs. On August 29, 2018, the Company filed its Answer, Affirmative Defenses, and Verified Counterclaim to the Verified Complaint. In its counterclaim, the Company alleges that Tribune breached the Merger Agreement and seeks declaratory relief, money damages in an amount to be determined at trial, and attorneys' fees and costs. Sinclair believes that the allegations in the Tribune Complaint are without merit and intends to vigorously defend against such allegations. On August 9, 2018, Edward Komito, a putative Company shareholder, filed a class action complaint (the “Initial Complaint”) in the United States District Court for the District of Maryland (the "District of Maryland") against the Company, Christopher Ripley and Lucy Rutishauser, which action is now captioned In re Sinclair Broadcast Group, Inc. Securities Litigation, case No. 1:18-CV-02445-CCB (the "Securities Action"). On March 1, 2019, lead counsel in the Securities Action filed an amended complaint, adding David Smith and Steven Marks as defendants, and alleging that defendants violated the federal securities laws by issuing false or misleading disclosures concerning (a) the Merger prior to the termination thereof; and (b) the DOJ investigation concerning the alleged exchange of pacing information. The Securities Action seeks declaratory relief, money damages in an amount to be determined at trial, and attorney’s fees and costs. The Company believes that the allegations in the Securities Action are without merit and intends to vigorously defend against the allegations. In addition, beginning in late July 2018, Sinclair received letters from two putative Company shareholders requesting that the board of directors of the Company investigate whether any of the Company’s officers and directors committed nonexculpated breaches of fiduciary duties in connection with, or gross mismanagement with respect to: (i) seeking regulatory approval of the Tribune Merger and (ii) the HDO, and the allegations contained therein. A committee consisting of independent members of the board of directors has been formed to respond to these demands (the "Special Litigation Committee"). The members of the Special Litigation Committee are Martin R. Leader, Larry E. McCanna, and the Honorable Benson Everett Legg, with Martin Leader as its designated Chair. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
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 2019 2018 Income (Numerator) Net income $ 22,771 $ 43,994 Net income attributable to noncontrolling interests (1,099 ) (871 ) Numerator for basic and diluted earnings per common share available to common shareholders $ 21,672 $ 43,123 Shares (Denominator) Weighted-average common shares outstanding 92,302 101,899 Dilutive effect of stock-settled appreciation rights and outstanding stock options 916 1,018 Weighted-average common and common equivalent shares outstanding 93,218 102,917 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 2019 2018 Weighted-average stock-settled appreciation rights and outstanding stock options excluded 950 500 |
SEGMENT DATA
SEGMENT DATA | 3 Months Ended |
Mar. 31, 2019 | |
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 $3.7 million and $3.8 million in intercompany interest expense related to intercompany loans between the broadcast segment, other, and corporate for the three months ended March 31, 2019 and 2018 , respectively. Segment financial information is included in the following tables for the periods presented (in thousands): For the three months ended March 31, 2019 Broadcast Other Corporate Consolidated Revenue $ 618,501 $ 103,602 $ — $ 722,103 Depreciation of property and equipment and amortization of definite-lived intangibles and other assets 62,681 3,784 19 66,484 Amortization of program contract costs and net realizable value adjustments 23,937 — — 23,937 Corporate general and administrative expenses 25,760 157 1,809 27,726 (Gain) loss on asset dispositions and other, net of impairment (8,020 ) 213 (102 ) (7,909 ) Operating income (loss) 95,227 97 (1,726 ) 93,598 Interest expense 1,482 192 52,952 54,626 (Loss) income from equity method investments — (13,708 ) 71 (13,637 ) Assets 4,873,179 789,114 971,915 6,634,208 For the three months ended March 31, 2018 Broadcast Other Corporate Consolidated Revenue $ 595,892 $ 69,460 $ — $ 665,352 Depreciation of property and equipment and amortization of definite-lived intangibles and other assets 63,870 7,040 20 70,930 Amortization of program contract costs and net realizable value adjustments 26,950 — — 26,950 Corporate general and administrative expenses 21,744 255 2,597 24,596 (Gain) loss on asset dispositions and other, net of impairment (84,100 ) (b) 62,991 (a) — (21,109 ) Operating income (loss) 176,166 (b) (66,235 ) (a) (2,617 ) 107,314 Interest expense 1,372 202 68,168 69,742 (Loss) income from equity method investments — (14,360 ) 1,773 (12,587 ) (a) Includes a $63.0 million impairment to the carrying value of a consolidated real estate venture. (b) Includes a gain of $83.3 million related to the auction proceeds. See Note 2. Acquisitions and Dispositions of Assets |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES: Certain of our stations provide services to other station owners within the same respective market through agreements, such as LMAs, where we provide programming, sales, operational, and administrative services, and JSAs and SSAs, where we provide non-programming, sales, operational, and administrative services. In certain cases, we have also entered into purchase agreements or options to purchase the license related assets of the licensee. We typically own the majority of the non-license assets of the stations, and in some cases where the licensee acquired the license assets concurrent with our acquisition of the non-license assets of the station, we have provided guarantees to the bank for the licensee’s acquisition financing. The terms of the agreements vary, but generally have initial terms of over five years with several optional renewal terms. Based on the terms of the agreements and the significance of our investment in the stations, we are the primary beneficiary when, subject to the ultimate control of the licensees, we have the power to direct the activities which significantly impact the economic performance of the VIE through the services we provide and we absorb losses and returns that would be considered significant to the VIEs. The fees paid between us and the licensees pursuant to these arrangements are eliminated in consolidation. Several of these VIEs are owned by a related party, Cunningham. In February 2019, we entered into a joint venture with an affiliate of the Chicago Cubs to establish and operate Marquee Sports Network (MSN). MSN simultaneously entered into a long term telecast rights agreement with the Chicago Cubs, providing MSN with the rights to air certain live game telecasts and other content, which we guarantee. Pursuant to a management services agreement, we are responsible for several key functions of MSN, which most notably includes affiliate and advertising sales services. We have determined that we will consolidate MSN because it is a variable interest entity and we are the primary beneficiary. The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in thousands): As of March 31, As of December 31, ASSETS Current assets: Cash and cash equivalents $ 10,000 $ — Accounts receivable 16,177 28,276 Other current assets 4,612 6,773 Total current assets 30,789 35,049 Program contract costs, less current portion 1,726 2,058 Property and equipment, net 8,263 5,346 Goodwill and indefinite-lived intangible assets 15,064 15,064 Definite-lived intangible assets, net 65,956 67,680 Other assets 2,374 2,374 Total assets $ 124,172 $ 127,571 LIABILITIES Current liabilities: Other current liabilities $ 14,249 $ 18,298 Notes payable, finance leases and commercial bank financing, less current portion 18,262 19,278 Program contracts payable, less current portion 7,687 8,474 Other long-term liabilities 650 650 Total liabilities $ 40,848 $ 46,700 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. Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from the above, were $125.3 million and $124.5 million as of March 31, 2019 and December 31, 2018 , 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. As of March 31, 2019 , all of the liabilities are non-recourse to us except for the debt of certain VIEs. See Debt of variable interest entities and guarantees of third-party debt under Note 3. Notes Payable and Commercial Bank Financing for further discussion. The risk and reward characteristics of the VIEs are similar. Other VIEs We have several investments in entities which are considered VIEs. However, we do not participate in the management of these entities, including the day-to-day operating decisions or other decisions which would allow us to control the entity, and therefore, we are not considered the primary beneficiary of these VIEs. The carrying amounts of our investments in these VIEs for which we are not the primary beneficiary were $71.3 million as of both March 31, 2019 and December 31, 2018 . Our maximum exposure is equal to the carrying value of our investments. The income and loss related to equity method investments and other investments are recorded in (loss) income from equity method investments and other income, net, respectively, on our consolidated statements of operations. We recorded losses of $13.1 million and $9.0 million for the three months ended March 31, 2019 and 2018 |
RELATED PERSON TRANSACTIONS
RELATED PERSON TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PERSON TRANSACTIONS | RELATED PERSON TRANSACTIONS: Transactions with our controlling shareholders David, Frederick, J. Duncan, and Robert Smith (collectively, the controlling shareholders) are brothers and hold substantially all of our Class B Common Stock and some of our Class A Common Stock. We engaged in the following transactions with them and/or entities in which they have substantial interests. Leases. Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders. Lease payments made to these entities were $0.9 million and $1.4 million for the three months ended March 31, 2019 and 2018 , respectively. Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of $0.5 million and $0.4 million for the three months ended March 31, 2019 and 2018 , respectively. Cunningham Broadcasting Corporation Cunningham owns a portfolio of television stations, including: WNUV-TV Baltimore, Maryland; WRGT-TV Dayton, Ohio; WVAH-TV Charleston, West Virginia; WMYA-TV Anderson, South Carolina; WTTE-TV Columbus, Ohio; WDBB-TV Birmingham, Alabama; WBSF-TV Flint, Michigan; WGTU-TV/WGTQ-TV Traverse City/Cadillac, Michigan; WEMT-TV Tri-Cities, Tennessee; WYDO-TV Greenville, North Carolina; KBVU-TV/KCVU-TV Eureka/Chico-Redding, California; WPFO-TV Portland, Maine; 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 8. Variable Interest Entities , for further discussion of the scope of services provided under these types of arrangements. As of March 31, 2019 , we have jointly and severally, unconditionally, and irrevocably guaranteed $49.1 million of Cunningham's debt, of which $9.8 million , net of $0.7 million deferred financing costs, relates to the Cunningham VIEs that we consolidate. The voting stock of the Cunningham Stations is owned by an unrelated party. 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. 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 there are 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 or (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 cumulative prepayments made under these purchase agreements were $48.3 million and $47.4 million as of March 31, 2019 and December 31, 2018 , respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both March 31, 2019 and December 31, 2018 , was approximately $53.6 million . Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025, and have a purchase option to acquire for $0.2 million . We paid Cunningham, under these agreements, $2.0 million and $2.6 million for the three months ended March 31, 2019 and 2018 , respectively. The agreements with KBVU-TV/KCVU-TV, KRNV-DT/KENV-DT, WBSF-TV, WEMT-TV, WGTU-TV/WGTQ-TV, WPFO-TV, and WYDO-TV expire between December 2020 and August 2025 and certain stations have renewal provisions for successive eight -year periods. As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported on our consolidated statements of operations. Our consolidated revenues include $34.4 million and $37.6 million for the three months ended March 31, 2019 and 2018 , respectively, related to the Cunningham Stations. 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 Cunningham has an LMA that expires in May 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. In August 2016, we entered into an agreement, expiring in October 2021, with Cunningham to provide a news share service with the Johnstown, PA station 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 for both the three months ended March 31, 2019 and 2018 . Leased property by real estate ventures Certain of our real estate ventures have entered into leases with entities owned by members of the Smith Family. Total rent received under these leases was $0.2 million and $0.1 million for the three months ended March 31, 2019 and 2018 , respectively. Other transactions with equity method investees In 2019, 120 Sports Holding, LLC (120 Sports), an equity method investee, entered into a secured promissory note to borrow $6.25 million from us, maturing on January 11, 2020 . The note bears interest at a fixed rate of 12.0% |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 As of December 31, 2018 Face Value (a) Fair Value Face Value (a) Fair Value Level 2: 6.125% Senior Unsecured Notes due 2022 $ 500,000 $ 508,750 $ 500,000 $ 503,750 5.875% Senior Unsecured Notes due 2026 350,000 352,625 350,000 326,375 5.625% Senior Unsecured Notes due 2024 550,000 554,813 550,000 515,625 5.375% Senior Unsecured Notes due 2021 600,000 600,000 600,000 598,500 5.125% Senior Unsecured Notes due 2027 400,000 383,000 400,000 353,000 Term Loan A 91,534 90,161 95,892 92,057 Term Loan B 1,339,175 1,322,435 1,342,600 1,275,470 Debt of variable interest entities 24,197 24,197 25,281 25,281 Debt of non-media subsidiaries 18,489 18,489 19,577 19,577 (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 $31.4 million and $33.0 million as of March 31, 2019 and December 31, 2018 |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information 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, 2019 , 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, and 5.125% Notes. As of March 31, 2019 , our consolidated total debt, net of deferred financing costs and debt discounts, of $3,883.1 million included $3,864.7 million related to STG and its subsidiaries of which SBG guaranteed $3,823.7 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. AS OF MARCH 31, 2019 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 869,841 $ 3,431 $ 102,075 $ — $ 975,347 Accounts receivable — — 528,008 53,218 — 581,226 Other current assets 1,547 11,112 101,322 35,628 (23,180 ) 126,429 Total current assets 1,547 880,953 632,761 190,921 (23,180 ) 1,683,002 Property and equipment, net 734 31,698 596,048 74,012 (15,275 ) 687,217 Investment in consolidated subsidiaries 1,524,760 3,608,898 — — (5,133,658 ) — Goodwill — — 2,120,035 3,867 — 2,123,902 Indefinite-lived intangible assets — — 143,924 14,440 — 158,364 Definite-lived intangible assets, net — — 1,566,641 68,174 (50,794 ) 1,584,021 Other long-term assets 47,249 877,386 299,659 154,413 (981,005 ) 397,702 Total assets $ 1,574,290 $ 5,398,935 $ 5,359,068 $ 505,827 $ (6,203,912 ) $ 6,634,208 Accounts payable and accrued liabilities $ 99 $ 67,416 $ 255,009 $ 77,721 $ (23,958 ) $ 376,287 Current portion of long-term debt — 31,135 4,179 7,572 (693 ) 42,193 Other current liabilities 1,028 688 111,002 8,382 — 121,100 Total current liabilities 1,127 99,239 370,190 93,675 (24,651 ) 539,580 Long-term debt — 3,769,217 35,637 383,754 (347,656 ) 3,840,952 Other liabilities 13,762 45,132 1,345,029 173,335 (842,735 ) 734,523 Total liabilities 14,889 3,913,588 1,750,856 650,764 (1,215,042 ) 5,115,055 Total Sinclair Broadcast Group equity (deficit) 1,559,401 1,485,347 3,608,212 (101,131 ) (4,992,428 ) 1,559,401 Noncontrolling interests in consolidated subsidiaries — — — (43,806 ) 3,558 (40,248 ) Total liabilities and equity (deficit) $ 1,574,290 $ 5,398,935 $ 5,359,068 $ 505,827 $ (6,203,912 ) $ 6,634,208 CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2018 (in thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 961,963 $ 19,648 $ 78,719 $ — $ 1,060,330 Accounts receivable — — 530,543 68,054 — 598,597 Other current assets 3,235 5,548 103,111 37,157 (24,072 ) 124,979 Total current assets 3,235 967,511 653,302 183,930 (24,072 ) 1,783,906 Property and equipment, net 754 31,773 593,755 70,223 (13,371 ) 683,134 Investment in consolidated subsidiaries 1,604,234 3,654,263 4,179 — (5,262,676 ) — Goodwill — — 2,120,035 3,867 — 2,123,902 Indefinite-lived intangible assets — — 143,924 14,298 — 158,222 Definite-lived intangible assets, net — — 1,608,748 70,409 (52,277 ) 1,626,880 Other long-term assets 31,002 851,170 119,187 165,064 (970,375 ) 196,048 Total assets $ 1,639,225 $ 5,504,717 $ 5,243,130 $ 507,791 $ (6,322,771 ) $ 6,572,092 Accounts payable and accrued liabilities $ 100 $ 78,814 $ 273,444 $ 85,875 $ (25,006 ) $ 413,227 Current portion of long-term debt — 31,135 4,100 7,842 (513 ) 42,564 Other current liabilities — — 107,051 9,743 — 116,794 Total current liabilities 100 109,949 384,595 103,460 (25,519 ) 572,585 Long-term debt — 3,775,489 36,551 381,913 (344,062 ) 3,849,891 Other liabilities 289 40,132 1,169,184 173,197 (833,506 ) 549,296 Total liabilities 389 3,925,570 1,590,330 658,570 (1,203,087 ) 4,971,772 Total Sinclair Broadcast Group equity (deficit) 1,638,836 1,579,147 3,652,800 (107,825 ) (5,124,122 ) 1,638,836 Noncontrolling interests in consolidated subsidiaries — — — (42,954 ) 4,438 (38,516 ) Total liabilities and equity (deficit) $ 1,639,225 $ 5,504,717 $ 5,243,130 $ 507,791 $ (6,322,771 ) $ 6,572,092 FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Net revenue $ — $ 4 $ 656,345 $ 83,193 $ (17,439 ) $ 722,103 Media program and production expenses — — 301,443 30,194 (12,593 ) 319,044 Selling, general and administrative 1,988 25,760 156,414 4,710 (1,223 ) 187,649 Depreciation, amortization and other operating expenses 232 1,208 78,190 43,676 (1,494 ) 121,812 Total operating expenses 2,220 26,968 536,047 78,580 (15,310 ) 628,505 Operating (loss) income (2,220 ) (26,964 ) 120,298 4,613 (2,129 ) 93,598 Equity in earnings of consolidated subsidiaries 23,235 89,283 — — (112,518 ) — Interest expense — (52,952 ) (1,049 ) (4,456 ) 3,831 (54,626 ) Other income (expense) 373 1,008 (11,671 ) (1,152 ) — (11,442 ) Total other income (expense) 23,608 37,339 (12,720 ) (5,608 ) (108,687 ) (66,068 ) Income tax benefit (provision) 284 11,634 (16,875 ) 198 — (4,759 ) Net income (loss) 21,672 22,009 90,703 (797 ) (110,816 ) 22,771 Net income attributable to the noncontrolling interests — — — (1,980 ) 881 (1,099 ) Net income (loss) attributable to Sinclair Broadcast Group $ 21,672 $ 22,009 $ 90,703 $ (2,777 ) $ (109,935 ) $ 21,672 Comprehensive income (loss) $ 22,771 $ 22,009 $ 90,703 $ (797 ) $ (111,915 ) $ 22,771 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 FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES $ 218 $ (65,900 ) $ 154,104 $ 13,211 $ (1,958 ) $ 99,675 CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: Acquisition of property and equipment — (2,919 ) (27,443 ) (608 ) 1,962 (29,008 ) Payments for debt and equity investments (1,900 ) (4,641 ) (17,274 ) (1,910 ) — (25,725 ) Distributions from equity method investees — — — 695 — 695 Other, net — (640 ) 7,514 9 — 6,883 Net cash flows (used in) from investing activities (1,900 ) (8,200 ) (37,203 ) (1,814 ) 1,962 (47,155 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Repayments of notes payable, commercial bank financing and finance leases — (7,784 ) (1,000 ) (2,390 ) 112 (11,062 ) Dividends paid on Class A and Class B Common Stock (18,356 ) — — — — (18,356 ) Repurchase of outstanding Class A Common Stock (104,985 ) — — — — (104,985 ) Increase (decrease) in intercompany payables 126,151 (10,238 ) (132,118 ) 16,162 43 — Other, net (1,128 ) — — (1,813 ) (159 ) (3,100 ) Net cash flows from (used in) financing activities 1,682 (18,022 ) (133,118 ) 11,959 (4 ) (137,503 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — (92,122 ) (16,217 ) 23,356 — (84,983 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 961,963 19,648 78,719 — 1,060,330 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 869,841 $ 3,431 $ 102,075 $ — $ 975,347 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 ) Payments for debt and equity investments (370 ) (31 ) (6,778 ) (571 ) — (7,750 ) Distributions from equity method investees 39 — — 9,123 — 9,162 Other, net 1,670 (1,862 ) 49 — — (143 ) Net cash flows from (used in) investing activities 1,339 (4,107 ) (25,234 ) 7,052 — (20,950 ) CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: Repayments of notes payable, commercial bank financing and finance 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 — — (3,176 ) — (2,296 ) Net cash flows (used in) from financing activities (2,643 ) 237,794 (257,012 ) (10,592 ) (5,185 ) (37,638 ) NET INCREASE (DECREASE) 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 |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 , 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 605 channels as of March 31, 2019 . For the purpose of this report, these 191 stations and 605 |
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. Investments in entities over which we have significant influence but not control are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by equity method investees. We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. See Note 8. Variable Interest Entities |
Equity Investments | Equity Investments |
Use of Estimates | Use of Estimates |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued new guidance related to accounting for leases, Accounting Standards Codification Topic 842 (ASC 842). We adopted the new guidance on January 1, 2019 using the modified retrospective approach and the optional transition method. Under this adoption method, comparative prior periods were not adjusted and continue to be reported in accordance with our historical accounting policy. We elected to apply the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carryforward our historical assessments of whether contracts are, or contain, leases and lease classification. The primary impact of adopting this standard was the recognition of $215.2 million of operating lease liabilities and $196.1 million of operating lease assets, upon adoption. The adoption did not have a material impact on how we account for finance leases. See Note 4. Leases for more information regarding our leasing arrangements. In August 2018, the FASB issued guidance which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, with the capitalized implementation costs of a hosting arrangement that is a service contract expensed over the term of the hosting arrangement. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. In October 2018, the FASB issued guidance for determining whether a decision-making fee is a variable interest. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required in GAAP). The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, applied retrospectively. Early adoption is permitted. We are currently evaluating the impact of this guidance on our consolidated financial statements. |
Revenue Recognition | Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions on our broadcast television and digital platforms. 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. In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty. Deferred Revenues. |
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, 2019 and 2018 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, 2019 was less than the statutory rate primarily due to $4.7 million of federal tax credits related to investments in sustainability initiatives offset by a $2.5 million increase in liability for unrecognized tax benefits. 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. We believe it is reasonably possible that our liability for unrecognized tax benefits related to continuing operations could be reduced by up to $3.5 million |
Reclassifications | Reclassifications |
Fair Value Measurement | 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. • |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by type and segment (in thousands): Three Months Ended March 31, 2019 March 31, 2018 Broadcast Other Total Broadcast Other Total Advertising revenue $ 287,850 $ 20,202 $ 308,052 $ 298,912 $ 17,416 $ 316,328 Distribution revenue 319,998 32,167 352,165 287,125 27,235 314,360 Other media and non-media revenues 10,653 51,233 61,886 9,855 24,809 34,664 Total revenues $ 618,501 $ 103,602 $ 722,103 $ 595,892 $ 69,460 $ 665,352 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents lease expense we have recorded within our consolidated statements of operations for the three months ended March 31, 2019 (in thousands): Three Months Ended March 31, 2019 Finance lease expense: Amortization of finance lease asset $ 719 Interest on lease liabilities 914 Total finance lease expense 1,633 Operating lease expense (a) 9,938 Total lease expense $ 11,571 (a) Includes variable lease expense of $1.1 million and short term lease expense of $0.3 million . three months ended March 31, 2019 (in thousands): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,218 Operating cash flows from finance leases 993 Financing cash flows from finance leases 1,101 Leased assets obtained in exchange for new lease liabilities 4,127 |
Maturity of Operating Leases | The following table summarizes our outstanding operating and finance lease obligations as of March 31, 2019 (in thousands): Operating Leases Finance Leases Total 2019 $ 25,059 $ 6,068 $ 31,127 2020 31,392 7,938 39,330 2021 29,368 7,908 37,276 2022 26,572 7,166 33,738 2023 25,147 7,138 32,285 Thereafter 162,163 21,218 183,381 Total undiscounted obligations 299,701 57,436 357,137 Less imputed interest (82,952 ) (16,293 ) (99,245 ) Present value of lease obligations $ 216,749 $ 41,143 $ 257,892 |
Maturity of Finance Leases | The following table summarizes our outstanding operating and finance lease obligations as of March 31, 2019 (in thousands): Operating Leases Finance Leases Total 2019 $ 25,059 $ 6,068 $ 31,127 2020 31,392 7,938 39,330 2021 29,368 7,908 37,276 2022 26,572 7,166 33,738 2023 25,147 7,138 32,285 Thereafter 162,163 21,218 183,381 Total undiscounted obligations 299,701 57,436 357,137 Less imputed interest (82,952 ) (16,293 ) (99,245 ) Present value of lease obligations $ 216,749 $ 41,143 $ 257,892 |
Future minimum payments under operating leases | Future minimum payments under operating leases as of December 31, 2018 were as follows (in thousands): 2019 $ 32,108 2020 31,287 2021 29,547 2022 26,702 2023 24,325 2024 and thereafter 157,816 Total $ 301,785 |
Supplemental Balance Sheet Information | The following table summarizes supplemental balance sheet information related to leases as of March 31, 2019 (in thousands, except years): Operating Leases Finance Leases Lease assets, non-current $ 193,792 $ 16,151 (a) Lease liabilities, current $ 22,779 $ 4,478 Lease liabilities, non-current 193,970 36,665 Total lease liabilities $ 216,749 $ 41,143 Weighted average remaining term (in years) 10.94 7.74 Weighted average discount rate 5.6 % 9.0 % (a) Finance lease assets are reflected in property and equipment, net. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 2019 2018 Income (Numerator) Net income $ 22,771 $ 43,994 Net income attributable to noncontrolling interests (1,099 ) (871 ) Numerator for basic and diluted earnings per common share available to common shareholders $ 21,672 $ 43,123 Shares (Denominator) Weighted-average common shares outstanding 92,302 101,899 Dilutive effect of stock-settled appreciation rights and outstanding stock options 916 1,018 Weighted-average common and common equivalent shares outstanding 93,218 102,917 |
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 2019 2018 Weighted-average stock-settled appreciation rights and outstanding stock options excluded 950 500 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Broadcast Other Corporate Consolidated Revenue $ 618,501 $ 103,602 $ — $ 722,103 Depreciation of property and equipment and amortization of definite-lived intangibles and other assets 62,681 3,784 19 66,484 Amortization of program contract costs and net realizable value adjustments 23,937 — — 23,937 Corporate general and administrative expenses 25,760 157 1,809 27,726 (Gain) loss on asset dispositions and other, net of impairment (8,020 ) 213 (102 ) (7,909 ) Operating income (loss) 95,227 97 (1,726 ) 93,598 Interest expense 1,482 192 52,952 54,626 (Loss) income from equity method investments — (13,708 ) 71 (13,637 ) Assets 4,873,179 789,114 971,915 6,634,208 For the three months ended March 31, 2018 Broadcast Other Corporate Consolidated Revenue $ 595,892 $ 69,460 $ — $ 665,352 Depreciation of property and equipment and amortization of definite-lived intangibles and other assets 63,870 7,040 20 70,930 Amortization of program contract costs and net realizable value adjustments 26,950 — — 26,950 Corporate general and administrative expenses 21,744 255 2,597 24,596 (Gain) loss on asset dispositions and other, net of impairment (84,100 ) (b) 62,991 (a) — (21,109 ) Operating income (loss) 176,166 (b) (66,235 ) (a) (2,617 ) 107,314 Interest expense 1,372 202 68,168 69,742 (Loss) income from equity method investments — (14,360 ) 1,773 (12,587 ) (a) Includes a $63.0 million impairment to the carrying value of a consolidated real estate venture. (b) Includes a gain of $83.3 million related to the auction proceeds. See Note 2. Acquisitions and Dispositions of Assets |
(Tables)
(Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The carrying amounts and classification of the assets and liabilities of the VIEs mentioned above, which have been included in our consolidated balance sheets as of the dates presented, were as follows (in thousands): As of March 31, As of December 31, ASSETS Current assets: Cash and cash equivalents $ 10,000 $ — Accounts receivable 16,177 28,276 Other current assets 4,612 6,773 Total current assets 30,789 35,049 Program contract costs, less current portion 1,726 2,058 Property and equipment, net 8,263 5,346 Goodwill and indefinite-lived intangible assets 15,064 15,064 Definite-lived intangible assets, net 65,956 67,680 Other assets 2,374 2,374 Total assets $ 124,172 $ 127,571 LIABILITIES Current liabilities: Other current liabilities $ 14,249 $ 18,298 Notes payable, finance leases and commercial bank financing, less current portion 18,262 19,278 Program contracts payable, less current portion 7,687 8,474 Other long-term liabilities 650 650 Total liabilities $ 40,848 $ 46,700 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 As of December 31, 2018 Face Value (a) Fair Value Face Value (a) Fair Value Level 2: 6.125% Senior Unsecured Notes due 2022 $ 500,000 $ 508,750 $ 500,000 $ 503,750 5.875% Senior Unsecured Notes due 2026 350,000 352,625 350,000 326,375 5.625% Senior Unsecured Notes due 2024 550,000 554,813 550,000 515,625 5.375% Senior Unsecured Notes due 2021 600,000 600,000 600,000 598,500 5.125% Senior Unsecured Notes due 2027 400,000 383,000 400,000 353,000 Term Loan A 91,534 90,161 95,892 92,057 Term Loan B 1,339,175 1,322,435 1,342,600 1,275,470 Debt of variable interest entities 24,197 24,197 25,281 25,281 Debt of non-media subsidiaries 18,489 18,489 19,577 19,577 (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 $31.4 million and $33.0 million as of March 31, 2019 and December 31, 2018 |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed consolidating balance sheet | CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2019 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 869,841 $ 3,431 $ 102,075 $ — $ 975,347 Accounts receivable — — 528,008 53,218 — 581,226 Other current assets 1,547 11,112 101,322 35,628 (23,180 ) 126,429 Total current assets 1,547 880,953 632,761 190,921 (23,180 ) 1,683,002 Property and equipment, net 734 31,698 596,048 74,012 (15,275 ) 687,217 Investment in consolidated subsidiaries 1,524,760 3,608,898 — — (5,133,658 ) — Goodwill — — 2,120,035 3,867 — 2,123,902 Indefinite-lived intangible assets — — 143,924 14,440 — 158,364 Definite-lived intangible assets, net — — 1,566,641 68,174 (50,794 ) 1,584,021 Other long-term assets 47,249 877,386 299,659 154,413 (981,005 ) 397,702 Total assets $ 1,574,290 $ 5,398,935 $ 5,359,068 $ 505,827 $ (6,203,912 ) $ 6,634,208 Accounts payable and accrued liabilities $ 99 $ 67,416 $ 255,009 $ 77,721 $ (23,958 ) $ 376,287 Current portion of long-term debt — 31,135 4,179 7,572 (693 ) 42,193 Other current liabilities 1,028 688 111,002 8,382 — 121,100 Total current liabilities 1,127 99,239 370,190 93,675 (24,651 ) 539,580 Long-term debt — 3,769,217 35,637 383,754 (347,656 ) 3,840,952 Other liabilities 13,762 45,132 1,345,029 173,335 (842,735 ) 734,523 Total liabilities 14,889 3,913,588 1,750,856 650,764 (1,215,042 ) 5,115,055 Total Sinclair Broadcast Group equity (deficit) 1,559,401 1,485,347 3,608,212 (101,131 ) (4,992,428 ) 1,559,401 Noncontrolling interests in consolidated subsidiaries — — — (43,806 ) 3,558 (40,248 ) Total liabilities and equity (deficit) $ 1,574,290 $ 5,398,935 $ 5,359,068 $ 505,827 $ (6,203,912 ) $ 6,634,208 CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2018 (in thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash $ — $ 961,963 $ 19,648 $ 78,719 $ — $ 1,060,330 Accounts receivable — — 530,543 68,054 — 598,597 Other current assets 3,235 5,548 103,111 37,157 (24,072 ) 124,979 Total current assets 3,235 967,511 653,302 183,930 (24,072 ) 1,783,906 Property and equipment, net 754 31,773 593,755 70,223 (13,371 ) 683,134 Investment in consolidated subsidiaries 1,604,234 3,654,263 4,179 — (5,262,676 ) — Goodwill — — 2,120,035 3,867 — 2,123,902 Indefinite-lived intangible assets — — 143,924 14,298 — 158,222 Definite-lived intangible assets, net — — 1,608,748 70,409 (52,277 ) 1,626,880 Other long-term assets 31,002 851,170 119,187 165,064 (970,375 ) 196,048 Total assets $ 1,639,225 $ 5,504,717 $ 5,243,130 $ 507,791 $ (6,322,771 ) $ 6,572,092 Accounts payable and accrued liabilities $ 100 $ 78,814 $ 273,444 $ 85,875 $ (25,006 ) $ 413,227 Current portion of long-term debt — 31,135 4,100 7,842 (513 ) 42,564 Other current liabilities — — 107,051 9,743 — 116,794 Total current liabilities 100 109,949 384,595 103,460 (25,519 ) 572,585 Long-term debt — 3,775,489 36,551 381,913 (344,062 ) 3,849,891 Other liabilities 289 40,132 1,169,184 173,197 (833,506 ) 549,296 Total liabilities 389 3,925,570 1,590,330 658,570 (1,203,087 ) 4,971,772 Total Sinclair Broadcast Group equity (deficit) 1,638,836 1,579,147 3,652,800 (107,825 ) (5,124,122 ) 1,638,836 Noncontrolling interests in consolidated subsidiaries — — — (42,954 ) 4,438 (38,516 ) Total liabilities and equity (deficit) $ 1,639,225 $ 5,504,717 $ 5,243,130 $ 507,791 $ (6,322,771 ) $ 6,572,092 |
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, 2019 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Net revenue $ — $ 4 $ 656,345 $ 83,193 $ (17,439 ) $ 722,103 Media program and production expenses — — 301,443 30,194 (12,593 ) 319,044 Selling, general and administrative 1,988 25,760 156,414 4,710 (1,223 ) 187,649 Depreciation, amortization and other operating expenses 232 1,208 78,190 43,676 (1,494 ) 121,812 Total operating expenses 2,220 26,968 536,047 78,580 (15,310 ) 628,505 Operating (loss) income (2,220 ) (26,964 ) 120,298 4,613 (2,129 ) 93,598 Equity in earnings of consolidated subsidiaries 23,235 89,283 — — (112,518 ) — Interest expense — (52,952 ) (1,049 ) (4,456 ) 3,831 (54,626 ) Other income (expense) 373 1,008 (11,671 ) (1,152 ) — (11,442 ) Total other income (expense) 23,608 37,339 (12,720 ) (5,608 ) (108,687 ) (66,068 ) Income tax benefit (provision) 284 11,634 (16,875 ) 198 — (4,759 ) Net income (loss) 21,672 22,009 90,703 (797 ) (110,816 ) 22,771 Net income attributable to the noncontrolling interests — — — (1,980 ) 881 (1,099 ) Net income (loss) attributable to Sinclair Broadcast Group $ 21,672 $ 22,009 $ 90,703 $ (2,777 ) $ (109,935 ) $ 21,672 Comprehensive income (loss) $ 22,771 $ 22,009 $ 90,703 $ (797 ) $ (111,915 ) $ 22,771 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 |
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2019 (in thousands) (unaudited) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES $ 218 $ (65,900 ) $ 154,104 $ 13,211 $ (1,958 ) $ 99,675 CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: Acquisition of property and equipment — (2,919 ) (27,443 ) (608 ) 1,962 (29,008 ) Payments for debt and equity investments (1,900 ) (4,641 ) (17,274 ) (1,910 ) — (25,725 ) Distributions from equity method investees — — — 695 — 695 Other, net — (640 ) 7,514 9 — 6,883 Net cash flows (used in) from investing activities (1,900 ) (8,200 ) (37,203 ) (1,814 ) 1,962 (47,155 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Repayments of notes payable, commercial bank financing and finance leases — (7,784 ) (1,000 ) (2,390 ) 112 (11,062 ) Dividends paid on Class A and Class B Common Stock (18,356 ) — — — — (18,356 ) Repurchase of outstanding Class A Common Stock (104,985 ) — — — — (104,985 ) Increase (decrease) in intercompany payables 126,151 (10,238 ) (132,118 ) 16,162 43 — Other, net (1,128 ) — — (1,813 ) (159 ) (3,100 ) Net cash flows from (used in) financing activities 1,682 (18,022 ) (133,118 ) 11,959 (4 ) (137,503 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — (92,122 ) (16,217 ) 23,356 — (84,983 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 961,963 19,648 78,719 — 1,060,330 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 869,841 $ 3,431 $ 102,075 $ — $ 975,347 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 ) Payments for debt and equity investments (370 ) (31 ) (6,778 ) (571 ) — (7,750 ) Distributions from equity method investees 39 — — 9,123 — 9,162 Other, net 1,670 (1,862 ) 49 — — (143 ) Net cash flows from (used in) investing activities 1,339 (4,107 ) (25,234 ) 7,052 — (20,950 ) CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: Repayments of notes payable, commercial bank financing and finance 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 — — (3,176 ) — (2,296 ) Net cash flows (used in) from financing activities (2,643 ) 237,794 (257,012 ) (10,592 ) (5,185 ) (37,638 ) NET INCREASE (DECREASE) 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 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) | Mar. 31, 2019channelstationmarket |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of television stations owned | station | 191 |
Number of markets | market | 89 |
Number of channels | channel | 605 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Investments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Equity investments, net of cumulative impairment | $ 22,900,000 | $ 24,500,000 | |
Cumulative impairment | 1,600,000 | ||
Impairment recorded | $ 1,600,000 | $ 0 |
NATURE OF OPERATIONS AND SUMM_6
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 216,749 | |
Operating lease assets | $ 193,792 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 215,200 | |
Operating lease assets | $ 196,100 |
NATURE OF OPERATIONS AND SUMM_7
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 722,103 | $ 665,352 |
Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 618,501 | 595,892 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 103,602 | 69,460 |
Advertising revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 308,052 | 316,328 |
Advertising revenue | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 287,850 | 298,912 |
Advertising revenue | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 20,202 | 17,416 |
Distribution revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 352,165 | 314,360 |
Distribution revenue | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 319,998 | 287,125 |
Distribution revenue | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 32,167 | 27,235 |
Other media and non-media revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 61,886 | 34,664 |
Other media and non-media revenues | Broadcast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 10,653 | 9,855 |
Other media and non-media revenues | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 51,233 | $ 24,809 |
NATURE OF OPERATIONS AND SUMM_8
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Deferred revenue | $ 75.1 | $ 83.3 | |
Deferred revenue, revenue recognized | $ 38.2 | $ 23.2 |
NATURE OF OPERATIONS AND SUMM_9
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Federal tax credits related to investments in sustainability initiatives | $ 4.7 | |
Increase in liability for unrecognized tax benefits | 2.5 | |
Tax benefit from sale of spectrum | $ 21.3 | |
Reasonably possible reduction of unrecognized tax benefits liability | $ 3.5 |
NATURE OF OPERATIONS AND SUM_10
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019 | Mar. 31, 2019 | Aug. 09, 2018 | Sep. 06, 2016 | |
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 150,000,000 | |||
Stock repurchase program, additional authorized repurchase amount | $ 1,000,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 763,100,000 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Treasury stock, shares acquired (in shares) | 3.5 | |||
Treasury stock, value acquired | $ 105,000,000 | |||
Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Treasury stock, shares acquired (in shares) | 0.5 | |||
Treasury stock, value acquired | $ 20,000,000 |
NATURE OF OPERATIONS AND SUM_11
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Subsequent Events (Details) | May 08, 2019$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends declared per share (USD per share) | $ 0.20 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS OF ASSETS - Narrative (Details) $ in Thousands | May 03, 2019USD ($)regional_sport_network | Mar. 31, 2019USD ($)channel | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||
Gain on asset dispositions, net of impairment | $ 7,909 | $ 21,109 | |
Number of stations assigned new channels | channel | 100 | ||
Broadcast incentive auction, total legislation funds to reimburse stations | $ 2,750,000 | ||
Broadcast incentive auction, gain recognized on sale | 8,000 | 800 | |
Broadcast incentive auction, total capital expenditure | 12,700 | 3,400 | |
Spectrum Auction | |||
Business Acquisition [Line Items] | |||
Gain on asset dispositions, net of impairment | $ 83,300 | 83,300 | |
Tribune Media Company | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | 21,700 | ||
Tribune Media Company | General and Administrative Expense | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | 4,700 | ||
Tribune Media Company | Interest Expense | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 17,000 | ||
Subsequent Event | RSNs | |||
Business Acquisition [Line Items] | |||
Number of regional sports networks | regional_sport_network | 21 | ||
Total enterprise value | $ 10,600,000 | ||
Purchase price | 9,600,000 | ||
Cash equity | 1,400,000 | ||
Cash equity, cash on hand | 700,000 | ||
Cash equity, debt | 700,000 | ||
Full committed privately-placed preferred equity | 1,000,000 | ||
Fully committed secured and unsecured debt | $ 8,200,000 |
NOTES PAYABLE AND COMMERCIAL _2
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Notes Payable and Finance Leases to Affiliates, Debt of VIEs and Guarantees of Third-Party Debt, and Bank Credit Agreement (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Current portion of notes payable, finance leases and commercial bank financing | $ 42,193 | $ 42,564 | |
Notes payable, finance leases and commercial bank financing, less current portion | 3,840,952 | 3,849,891 | |
Consolidated total debt | 3,883,100 | ||
Affiliated Entity | |||
Debt Instrument [Line Items] | |||
Current portion of notes payable, finance leases and commercial bank financing | 1,900 | 1,900 | |
Notes payable, finance leases and commercial bank financing, less current portion | 10,200 | 10,600 | |
Consolidated VIEs, aggregated | |||
Debt Instrument [Line Items] | |||
Notes payable, finance leases and commercial bank financing, less current portion | 18,262 | 19,278 | |
Consolidated total debt | 23,400 | 24,400 | |
Guarantee Obligations | |||
Debt Instrument [Line Items] | |||
Unconditional and irrevocably guaranteed debt | $ 74,600 | $ 76,500 | |
Subsequent Event | Term Loan | Term Loan A-2 | |||
Debt Instrument [Line Items] | |||
Repayment of remaining principal balance | $ 91,500 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Variable lease expense | $ 1.1 |
Short term lease expense | $ 0.3 |
LEASES - Schedule of Lease Expe
LEASES - Schedule of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of finance lease asset | $ 719 |
Interest on lease liabilities | 914 |
Total finance lease expense | 1,633 |
Operating lease expense (a) | 9,938 |
Total lease expense | $ 11,571 |
LEASES - Schedule of Outstandin
LEASES - Schedule of Outstanding Operating and Finance Obligations (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 25,059 |
2020 | 31,392 |
2021 | 29,368 |
2022 | 26,572 |
2023 | 25,147 |
Thereafter | 162,163 |
Total undiscounted obligations | 299,701 |
Less imputed interest | (82,952) |
Present value of lease obligations | 216,749 |
Finance Leases | |
2019 | 6,068 |
2020 | 7,938 |
2021 | 7,908 |
2022 | 7,166 |
2023 | 7,138 |
Thereafter | 21,218 |
Total undiscounted obligations | 57,436 |
Less imputed interest | (16,293) |
Present value of lease obligations | 41,143 |
Total | |
2019 | 31,127 |
2020 | 39,330 |
2021 | 37,276 |
2022 | 33,738 |
2023 | 32,285 |
Thereafter | 183,381 |
Total undiscounted obligations | 357,137 |
Less imputed interest | 99,245 |
Present value of lease obligations | $ 257,892 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 32,108 |
2020 | 31,287 |
2021 | 29,547 |
2022 | 26,702 |
2023 | 24,325 |
2024 and thereafter | 157,816 |
Total | $ 301,785 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
Lease assets, non-current | $ 193,792 |
Lease liabilities, current | 22,779 |
Lease liabilities, non-current | 193,970 |
Total lease liabilities | $ 216,749 |
Weighted average remaining term (in years) | 10 years 11 months 8 days |
Weighted average discount rate | 5.60% |
Finance Leases | |
Lease assets, non-current | $ 16,151 |
Lease liabilities, current | 4,478 |
Lease liabilities, non-current | 36,665 |
Total lease liabilities | $ 41,143 |
Weighted average remaining term (in years) | 7 years 8 months 26 days |
Weighted average discount rate | 9.00% |
LEASES - Cash Flow Information
LEASES - Cash Flow Information Related to Lease (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 7,218 |
Operating cash flows from finance leases | 993 |
Financing cash flows from finance leases | 1,101 |
Leased assets obtained in exchange for new lease liabilities | $ 4,127 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | May 10, 2019lawsuit | Aug. 09, 2018USD ($) | Dec. 21, 2017USD ($) |
Breach Of Merger Agreement | |||
COMMITMENTS AND CONTINGENCIES | |||
Proposed fine | $ 1,000 | ||
Unfavorable Regulatory Action | |||
COMMITMENTS AND CONTINGENCIES | |||
Proposed fine | $ 13.4 | ||
Subsequent Event | Various Cases Alleging Violation Of Sherman Antitrust Act | |||
COMMITMENTS AND CONTINGENCIES | |||
Loss contingency, new claims filed, number (lawsuit) | lawsuit | 22 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income (Numerator) | ||
Net income | $ 22,771 | $ 43,994 |
Net income attributable to noncontrolling interests | (1,099) | (871) |
Numerator for basic and diluted earnings per common share available to common shareholders | $ 21,672 | $ 43,123 |
Shares (Denominator) | ||
Weighted average common shares outstanding (shares) | 92,302 | 101,899 |
Dilutive effect of stock-settled appreciation rights and outstanding stock options (shares) | 916 | 1,018 |
Weighted average common and common equivalent shares outstanding (shares) | 93,218 | 102,917 |
EARNINGS PER SHARE - Summary of
EARNINGS PER SHARE - Summary of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Potentially antidilutive dilutive securities excluded from calculation of diluted earnings per share (shares) | 950 | 500 |
SEGMENT DATA (Narrative) (Detai
SEGMENT DATA (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)market | Mar. 31, 2018USD ($) | |
Segment data | ||
Number of markets | 89 | |
Intercompany interest expense | $ | $ 3.7 | $ 3.8 |
Operating segments | Broadcast | ||
Segment data | ||
Number of markets | 89 |
SEGMENT DATA (Schedule of Segme
SEGMENT DATA (Schedule of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Segment data | ||||
Revenue | $ 722,103 | $ 665,352 | ||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 66,484 | 70,930 | ||
Amortization of program contract costs and net realizable value adjustments | 23,937 | 26,950 | ||
Corporate general and administrative expenses | 27,726 | 24,596 | ||
(Gain) loss on asset dispositions and other, net of impairment | (7,909) | (21,109) | ||
Operating income (loss) | 93,598 | 107,314 | ||
Interest expense | 54,626 | 69,742 | ||
(Loss) income from equity method investments | (13,637) | (12,587) | ||
Assets | [1] | 6,634,208 | $ 6,572,092 | |
Broadcast | ||||
Segment data | ||||
Revenue | 618,501 | 595,892 | ||
Other | ||||
Segment data | ||||
Revenue | 103,602 | 69,460 | ||
Operating segments | Broadcast | ||||
Segment data | ||||
Revenue | 618,501 | 595,892 | ||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 62,681 | 63,870 | ||
Amortization of program contract costs and net realizable value adjustments | 23,937 | 26,950 | ||
Corporate general and administrative expenses | 25,760 | 21,744 | ||
(Gain) loss on asset dispositions and other, net of impairment | (8,020) | (84,100) | ||
Operating income (loss) | 95,227 | 176,166 | ||
Interest expense | 1,482 | 1,372 | ||
(Loss) income from equity method investments | 0 | 0 | ||
Assets | 4,873,179 | |||
Operating segments | Other | ||||
Segment data | ||||
Revenue | 103,602 | 69,460 | ||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 3,784 | 7,040 | ||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | ||
Corporate general and administrative expenses | 157 | 255 | ||
(Gain) loss on asset dispositions and other, net of impairment | 213 | 62,991 | ||
Operating income (loss) | 97 | (66,235) | ||
Interest expense | 192 | 202 | ||
(Loss) income from equity method investments | (13,708) | (14,360) | ||
Assets | 789,114 | |||
Corporate | ||||
Segment data | ||||
Revenue | 0 | 0 | ||
Depreciation of property and equipment and amortization of definite-lived intangibles and other assets | 19 | 20 | ||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | ||
Corporate general and administrative expenses | 1,809 | 2,597 | ||
(Gain) loss on asset dispositions and other, net of impairment | (102) | 0 | ||
Operating income (loss) | (1,726) | (2,617) | ||
Interest expense | 52,952 | 68,168 | ||
(Loss) income from equity method investments | 71 | 1,773 | ||
Assets | 971,915 | |||
Spectrum Auction | ||||
Segment data | ||||
(Gain) loss on asset dispositions and other, net of impairment | (83,300) | $ (83,300) | ||
Consolidated Real Estate Development Project | Operating segments | Other | ||||
Segment data | ||||
Asset impairment charges | $ 63,000 | |||
[1] | Our consolidated total assets as of March 31, 2019 and December 31, 2018 include total assets of variable interest entities (VIEs) of $124.2 million and $127.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2019 and December 31, 2018 include total liabilities of VIEs of $17.5 million and $22.3 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Consolidated VIEs, aggregated | |||
Variable Interest Entity [Line Items] | |||
Variable interest entities outsourcing agreement initial term | 5 years | ||
VIEs which are not primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Carrying amount | $ 71.3 | $ 71.3 | |
(Loss) income from equity method investments | (13.1) | $ (9) | |
Eliminations | Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Liabilities associated with the certain outsourcing agreements and purchase options | $ 125.3 | $ 124.5 |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 975,347 | $ 1,060,330 | |
Accounts receivable | 581,226 | 598,597 | |
Other current assets | 84,337 | 60,732 | |
Total current assets | 1,683,002 | 1,783,906 | |
Program contract costs, less current portion | 9,369 | 11,217 | |
Property and equipment, net | 687,217 | 683,134 | |
Definite-lived intangible assets, net | 1,584,021 | 1,626,880 | |
Total assets | [1] | 6,634,208 | 6,572,092 |
Current liabilities: | |||
Other current liabilities | 121,100 | 116,794 | |
Notes payable, finance leases and commercial bank financing, less current portion | 3,840,952 | 3,849,891 | |
Program contracts payable, less current portion | 45,445 | 50,060 | |
Other long-term liabilities | 80,235 | 85,983 | |
Total liabilities | [1] | 5,115,055 | 4,971,772 |
Consolidated VIEs, aggregated | |||
Current assets: | |||
Cash and cash equivalents | 10,000 | 0 | |
Accounts receivable | 16,177 | 28,276 | |
Other current assets | 4,612 | 6,773 | |
Total current assets | 30,789 | 35,049 | |
Program contract costs, less current portion | 1,726 | 2,058 | |
Property and equipment, net | 8,263 | 5,346 | |
Goodwill and indefinite-lived intangible assets | 15,064 | 15,064 | |
Definite-lived intangible assets, net | 65,956 | 67,680 | |
Other assets | 2,374 | 2,374 | |
Total assets | 124,172 | 127,571 | |
Current liabilities: | |||
Other current liabilities | 14,249 | 18,298 | |
Notes payable, finance leases and commercial bank financing, less current portion | 18,262 | 19,278 | |
Program contracts payable, less current portion | 7,687 | 8,474 | |
Other long-term liabilities | 650 | 650 | |
Total liabilities | $ 40,848 | $ 46,700 | |
[1] | Our consolidated total assets as of March 31, 2019 and December 31, 2018 include total assets of variable interest entities (VIEs) of $124.2 million and $127.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2019 and December 31, 2018 include total liabilities of VIEs of $17.5 million and $22.3 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities |
RELATED PERSON TRANSACTIONS - T
RELATED PERSON TRANSACTIONS - Transactions with our Controlling Shareholders (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lease Services | Entities owned by the controlling shareholders | ||
Related Party Transaction [Line Items] | ||
Lease payments made to entities | $ 0.9 | $ 1.4 |
Charter Aircraft | Controlling shareholders | Maximum | ||
Related Party Transaction [Line Items] | ||
Aircraft expenses | $ 0.5 | $ 0.4 |
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, 2019USD ($)renewal | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||
Consolidated total debt | $ 3,883,100 | ||||
Total payments made under the LMA excluded from liabilities | 48,300 | $ 47,400 | |||
Total revenues | 722,103 | $ 665,352 | |||
Repayments of debt | $ 11,062 | 16,950 | |||
Affiliated Entity | Cunningham | |||||
Related Party Transaction [Line Items] | |||||
Right to acquire capital stock | 100.00% | ||||
Remaining purchase price | $ 53,600 | 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 | $ 2,000 | 2,600 | |||
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 | ||||
Total revenues | $ 34,400 | $ 37,600 | |||
Guarantee Obligations | |||||
Related Party Transaction [Line Items] | |||||
Unconditional and irrevocably guaranteed debt | 74,600 | $ 76,500 | |||
Guarantee Obligations | Affiliated Entity | Cunningham | |||||
Related Party Transaction [Line Items] | |||||
Unconditional and irrevocably guaranteed debt | 49,100 | ||||
Consolidated VIEs | Affiliated Entity | Cunningham | |||||
Related Party Transaction [Line Items] | |||||
Consolidated total debt | 9,800 | ||||
Deferred financing costs | $ 700 |
RELATED PERSON TRANSACTIONS - A
RELATED PERSON TRANSACTIONS - Atlantic Automotive Corporation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Maximum | Atlantic Automotive Corporation | Advertising time | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Amount received (less than) | $ 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, 2019 | Mar. 31, 2018 | |
President and Chief Executive Officer | Lease Services | ||
Related Party Transaction [Line Items] | ||
Amount received | $ 0.2 | $ 0.1 |
RELATED PERSON TRANSACTIONS - O
RELATED PERSON TRANSACTIONS - Other Transactions with Equity Method Investees (Details) - 120 Sports Holding, LLC $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |
Note receivable | $ 6,250 |
Fixed interest rate | 12.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
FAIR VALUE MEASUREMENTS: | ||
Debt discount and deferred financing costs | $ 31,400 | $ 33,000 |
Level 2 | Carrying Value | Debt of variable interest entities | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 24,197 | 25,281 |
Level 2 | Carrying Value | Debt of non-media subsidiaries | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 18,489 | 19,577 |
Level 2 | Fair Value | Debt of variable interest entities | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 24,197 | 25,281 |
Level 2 | Fair Value | Debt of non-media subsidiaries | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | $ 18,489 | 19,577 |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 6.125% | |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.875% | |
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.625% | |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.375% | |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.125% | |
Senior Notes | Level 2 | Carrying Value | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | $ 500,000 | 500,000 |
Senior Notes | Level 2 | Carrying Value | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 350,000 | 350,000 |
Senior Notes | Level 2 | Carrying Value | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 550,000 | 550,000 |
Senior Notes | Level 2 | Carrying Value | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 600,000 | 600,000 |
Senior Notes | Level 2 | Carrying Value | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 400,000 | 400,000 |
Senior Notes | Level 2 | Fair Value | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 508,750 | 503,750 |
Senior Notes | Level 2 | Fair Value | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 352,625 | 326,375 |
Senior Notes | Level 2 | Fair Value | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 554,813 | 515,625 |
Senior Notes | Level 2 | Fair Value | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 600,000 | 598,500 |
Senior Notes | Level 2 | Fair Value | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 383,000 | 353,000 |
Term Loan | Level 2 | Carrying Value | Term Loan A | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 91,534 | 95,892 |
Term Loan | Level 2 | Carrying Value | Term Loan B | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 1,339,175 | 1,342,600 |
Term Loan | Level 2 | Fair Value | Term Loan A | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | 90,161 | 92,057 |
Term Loan | Level 2 | Fair Value | Term Loan B | ||
FAIR VALUE MEASUREMENTS: | ||
Debt fair value disclosure | $ 1,322,435 | $ 1,275,470 |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Consolidated total debt | $ 3,883.1 |
Subsidiary Issuer | |
Debt Instrument [Line Items] | |
Consolidated total debt | 3,864.7 |
Amount of debt guaranteed by parent | $ 3,823.7 |
5.375% Senior Unsecured Notes due 2021 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.375% |
5.375% Senior Unsecured Notes due 2021 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.375% |
5.375% Senior Unsecured Notes due 2021 | Guarantor Subsidiaries and KDSM, LLC | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.375% |
5.625% Senior Unsecured Notes Due 2021 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.625% |
6.125% Senior Unsecured Notes due 2022 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 6.125% |
6.125% Senior Unsecured Notes due 2022 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 6.125% |
6.125% Senior Unsecured Notes due 2022 | Guarantor Subsidiaries and KDSM, LLC | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 6.125% |
5.875% Senior Unsecured Notes due 2026 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.875% |
5.875% Senior Unsecured Notes due 2026 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.875% |
5.875% Senior Unsecured Notes due 2026 | Guarantor Subsidiaries and KDSM, LLC | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.875% |
5.125% Senior Unsecured Notes due 2027 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.125% |
5.125% Senior Unsecured Notes due 2027 | Sinclair Television Group, Inc. | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.125% |
5.125% Senior Unsecured Notes due 2027 | Guarantor Subsidiaries and KDSM, LLC | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.125% |
5.625% Senior Unsecured Notes due 2024 | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.625% |
5.625% Senior Unsecured Notes due 2024 | Guarantor Subsidiaries and KDSM, LLC | Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate (as a percent) | 5.625% |
CONDENSED CONSOLIDATING FINAN_4
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | $ 975,347 | $ 1,060,330 | |
Accounts receivable | 581,226 | 598,597 | |
Other current assets | 126,429 | 124,979 | |
Total current assets | 1,683,002 | 1,783,906 | |
Property and equipment, net | 687,217 | 683,134 | |
Investment in consolidated subsidiaries | 0 | 0 | |
Goodwill | 2,123,902 | 2,123,902 | |
Indefinite-lived intangible assets | 158,364 | 158,222 | |
Definite-lived intangible assets, net | 1,584,021 | 1,626,880 | |
Other long-term assets | 397,702 | 196,048 | |
Total assets | [1] | 6,634,208 | 6,572,092 |
Accounts payable and accrued liabilities | 376,287 | 413,227 | |
Current portion of long-term debt | 42,193 | 42,564 | |
Other current liabilities | 121,100 | 116,794 | |
Total current liabilities | 539,580 | 572,585 | |
Long-term debt | 3,840,952 | 3,849,891 | |
Other liabilities | 734,523 | 549,296 | |
Total liabilities | [1] | 5,115,055 | 4,971,772 |
Total Sinclair Broadcast Group equity (deficit) | 1,559,401 | 1,638,836 | |
Noncontrolling interests in consolidated subsidiaries | (40,248) | (38,516) | |
Total liabilities and equity | 6,634,208 | 6,572,092 | |
Reportable legal entities | Sinclair Broadcast Group, Inc. | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Other current assets | 1,547 | 3,235 | |
Total current assets | 1,547 | 3,235 | |
Property and equipment, net | 734 | 754 | |
Investment in consolidated subsidiaries | 1,524,760 | 1,604,234 | |
Goodwill | 0 | 0 | |
Indefinite-lived intangible assets | 0 | 0 | |
Definite-lived intangible assets, net | 0 | 0 | |
Other long-term assets | 47,249 | 31,002 | |
Total assets | 1,574,290 | 1,639,225 | |
Accounts payable and accrued liabilities | 99 | 100 | |
Current portion of long-term debt | 0 | 0 | |
Other current liabilities | 1,028 | 0 | |
Total current liabilities | 1,127 | 100 | |
Long-term debt | 0 | 0 | |
Other liabilities | 13,762 | 289 | |
Total liabilities | 14,889 | 389 | |
Total Sinclair Broadcast Group equity (deficit) | 1,559,401 | 1,638,836 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |
Total liabilities and equity | 1,574,290 | 1,639,225 | |
Reportable legal entities | Sinclair Television Group, Inc. | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 869,841 | 961,963 | |
Accounts receivable | 0 | 0 | |
Other current assets | 11,112 | 5,548 | |
Total current assets | 880,953 | 967,511 | |
Property and equipment, net | 31,698 | 31,773 | |
Investment in consolidated subsidiaries | 3,608,898 | 3,654,263 | |
Goodwill | 0 | 0 | |
Indefinite-lived intangible assets | 0 | 0 | |
Definite-lived intangible assets, net | 0 | 0 | |
Other long-term assets | 877,386 | 851,170 | |
Total assets | 5,398,935 | 5,504,717 | |
Accounts payable and accrued liabilities | 67,416 | 78,814 | |
Current portion of long-term debt | 31,135 | 31,135 | |
Other current liabilities | 688 | 0 | |
Total current liabilities | 99,239 | 109,949 | |
Long-term debt | 3,769,217 | 3,775,489 | |
Other liabilities | 45,132 | 40,132 | |
Total liabilities | 3,913,588 | 3,925,570 | |
Total Sinclair Broadcast Group equity (deficit) | 1,485,347 | 1,579,147 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |
Total liabilities and equity | 5,398,935 | 5,504,717 | |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 3,431 | 19,648 | |
Accounts receivable | 528,008 | 530,543 | |
Other current assets | 101,322 | 103,111 | |
Total current assets | 632,761 | 653,302 | |
Property and equipment, net | 596,048 | 593,755 | |
Investment in consolidated subsidiaries | 0 | 4,179 | |
Goodwill | 2,120,035 | 2,120,035 | |
Indefinite-lived intangible assets | 143,924 | 143,924 | |
Definite-lived intangible assets, net | 1,566,641 | 1,608,748 | |
Other long-term assets | 299,659 | 119,187 | |
Total assets | 5,359,068 | 5,243,130 | |
Accounts payable and accrued liabilities | 255,009 | 273,444 | |
Current portion of long-term debt | 4,179 | 4,100 | |
Other current liabilities | 111,002 | 107,051 | |
Total current liabilities | 370,190 | 384,595 | |
Long-term debt | 35,637 | 36,551 | |
Other liabilities | 1,345,029 | 1,169,184 | |
Total liabilities | 1,750,856 | 1,590,330 | |
Total Sinclair Broadcast Group equity (deficit) | 3,608,212 | 3,652,800 | |
Noncontrolling interests in consolidated subsidiaries | 0 | 0 | |
Total liabilities and equity | 5,359,068 | 5,243,130 | |
Reportable legal entities | Non- Guarantor Subsidiaries | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 102,075 | 78,719 | |
Accounts receivable | 53,218 | 68,054 | |
Other current assets | 35,628 | 37,157 | |
Total current assets | 190,921 | 183,930 | |
Property and equipment, net | 74,012 | 70,223 | |
Investment in consolidated subsidiaries | 0 | 0 | |
Goodwill | 3,867 | 3,867 | |
Indefinite-lived intangible assets | 14,440 | 14,298 | |
Definite-lived intangible assets, net | 68,174 | 70,409 | |
Other long-term assets | 154,413 | 165,064 | |
Total assets | 505,827 | 507,791 | |
Accounts payable and accrued liabilities | 77,721 | 85,875 | |
Current portion of long-term debt | 7,572 | 7,842 | |
Other current liabilities | 8,382 | 9,743 | |
Total current liabilities | 93,675 | 103,460 | |
Long-term debt | 383,754 | 381,913 | |
Other liabilities | 173,335 | 173,197 | |
Total liabilities | 650,764 | 658,570 | |
Total Sinclair Broadcast Group equity (deficit) | (101,131) | (107,825) | |
Noncontrolling interests in consolidated subsidiaries | (43,806) | (42,954) | |
Total liabilities and equity | 505,827 | 507,791 | |
Eliminations | |||
CONDENSED CONSOLIDATING BALANCE SHEET | |||
Cash | 0 | 0 | |
Accounts receivable | 0 | 0 | |
Other current assets | (23,180) | (24,072) | |
Total current assets | (23,180) | (24,072) | |
Property and equipment, net | (15,275) | (13,371) | |
Investment in consolidated subsidiaries | (5,133,658) | (5,262,676) | |
Goodwill | 0 | 0 | |
Indefinite-lived intangible assets | 0 | 0 | |
Definite-lived intangible assets, net | (50,794) | (52,277) | |
Other long-term assets | (981,005) | (970,375) | |
Total assets | (6,203,912) | (6,322,771) | |
Accounts payable and accrued liabilities | (23,958) | (25,006) | |
Current portion of long-term debt | (693) | (513) | |
Other current liabilities | 0 | 0 | |
Total current liabilities | (24,651) | (25,519) | |
Long-term debt | (347,656) | (344,062) | |
Other liabilities | (842,735) | (833,506) | |
Total liabilities | (1,215,042) | (1,203,087) | |
Total Sinclair Broadcast Group equity (deficit) | (4,992,428) | (5,124,122) | |
Noncontrolling interests in consolidated subsidiaries | 3,558 | 4,438 | |
Total liabilities and equity | $ (6,203,912) | $ (6,322,771) | |
[1] | Our consolidated total assets as of March 31, 2019 and December 31, 2018 include total assets of variable interest entities (VIEs) of $124.2 million and $127.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of March 31, 2019 and December 31, 2018 include total liabilities of VIEs of $17.5 million and $22.3 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 8. Variable Interest Entities |
CONDENSED CONSOLIDATING FINAN_5
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Total revenues | $ 722,103 | $ 665,352 |
Media program and production expenses | 319,044 | 288,549 |
Selling, general and administrative | 187,649 | 171,495 |
Depreciation, amortization and other operating expenses | 121,812 | 97,994 |
Total operating expenses | 628,505 | 558,038 |
Operating income | 93,598 | 107,314 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Interest expense | (54,626) | (69,742) |
Other income (expense) | (11,442) | (9,206) |
Total other expense, net | (66,068) | (78,948) |
Income tax benefit (provision) | (4,759) | 15,628 |
NET INCOME | 22,771 | 43,994 |
Net income attributable to the noncontrolling interests | (1,099) | (871) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 21,672 | 43,123 |
Comprehensive income | 22,771 | 43,994 |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Total revenues | 0 | 0 |
Media program and production expenses | 0 | 0 |
Selling, general and administrative | 1,988 | 2,597 |
Depreciation, amortization and other operating expenses | 232 | 19 |
Total operating expenses | 2,220 | 2,616 |
Operating income | (2,220) | (2,616) |
Equity in earnings of consolidated subsidiaries | 23,235 | 45,037 |
Interest expense | 0 | 0 |
Other income (expense) | 373 | 681 |
Total other expense, net | 23,608 | 45,718 |
Income tax benefit (provision) | 284 | 21 |
NET INCOME | 21,672 | 43,123 |
Net income attributable to the noncontrolling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 21,672 | 43,123 |
Comprehensive income | 22,771 | 43,123 |
Reportable legal entities | Sinclair Television Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Total revenues | 4 | 0 |
Media program and production expenses | 0 | 0 |
Selling, general and administrative | 25,760 | 21,754 |
Depreciation, amortization and other operating expenses | 1,208 | 1,250 |
Total operating expenses | 26,968 | 23,004 |
Operating income | (26,964) | (23,004) |
Equity in earnings of consolidated subsidiaries | 89,283 | 171,770 |
Interest expense | (52,952) | (68,168) |
Other income (expense) | 1,008 | 2,295 |
Total other expense, net | 37,339 | 105,897 |
Income tax benefit (provision) | 11,634 | 15,398 |
NET INCOME | 22,009 | 98,291 |
Net income attributable to the noncontrolling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 22,009 | 98,291 |
Comprehensive income | 22,009 | 98,291 |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Total revenues | 656,345 | 625,683 |
Media program and production expenses | 301,443 | 273,415 |
Selling, general and administrative | 156,414 | 143,301 |
Depreciation, amortization and other operating expenses | 78,190 | 6,416 |
Total operating expenses | 536,047 | 423,132 |
Operating income | 120,298 | 202,551 |
Equity in earnings of consolidated subsidiaries | 0 | 429 |
Interest expense | (1,049) | (972) |
Other income (expense) | (11,671) | (13,361) |
Total other expense, net | (12,720) | (13,904) |
Income tax benefit (provision) | (16,875) | (15,676) |
NET INCOME | 90,703 | 172,971 |
Net income attributable to the noncontrolling interests | 0 | 0 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | 90,703 | 172,971 |
Comprehensive income | 90,703 | 172,971 |
Reportable legal entities | Non- Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Total revenues | 83,193 | 58,011 |
Media program and production expenses | 30,194 | 32,020 |
Selling, general and administrative | 4,710 | 4,284 |
Depreciation, amortization and other operating expenses | 43,676 | 91,008 |
Total operating expenses | 78,580 | 127,312 |
Operating income | 4,613 | (69,301) |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Interest expense | (4,456) | (4,550) |
Other income (expense) | (1,152) | 1,179 |
Total other expense, net | (5,608) | (3,371) |
Income tax benefit (provision) | 198 | 15,885 |
NET INCOME | (797) | (56,787) |
Net income attributable to the noncontrolling interests | (1,980) | (1,056) |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | (2,777) | (57,843) |
Comprehensive income | (797) | (56,787) |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
Total revenues | (17,439) | (18,342) |
Media program and production expenses | (12,593) | (16,886) |
Selling, general and administrative | (1,223) | (441) |
Depreciation, amortization and other operating expenses | (1,494) | (699) |
Total operating expenses | (15,310) | (18,026) |
Operating income | (2,129) | (316) |
Equity in earnings of consolidated subsidiaries | (112,518) | (217,236) |
Interest expense | 3,831 | 3,948 |
Other income (expense) | 0 | 0 |
Total other expense, net | (108,687) | (213,288) |
Income tax benefit (provision) | 0 | 0 |
NET INCOME | (110,816) | (213,604) |
Net income attributable to the noncontrolling interests | 881 | 185 |
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | (109,935) | (213,419) |
Comprehensive income | $ (111,915) | $ (213,604) |
CONDENSED CONSOLIDATING FINAN_6
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | $ 99,675 | $ 100,943 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (29,008) | (22,219) |
Payments for debt and equity investments | (25,725) | (7,750) |
Distributions from equity method investees | 695 | 9,162 |
Other, net | 6,883 | (143) |
Net cash flows used in investing activities | (47,155) | (20,950) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | (11,062) | (16,950) |
Dividends paid on Class A and Class B Common Stock | (18,356) | (18,392) |
Repurchase of outstanding Class A Common Stock | (104,985) | 0 |
Increase (decrease) in intercompany payables | 0 | 0 |
Other, net | (3,100) | (2,296) |
Net cash flows used in financing activities | (137,503) | (37,638) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (84,983) | 42,355 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 1,060,330 | 995,940 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 975,347 | 1,038,295 |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 218 | 1,304 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | 0 | 0 |
Payments for debt and equity investments | (1,900) | (370) |
Distributions from equity method investees | 0 | 39 |
Other, net | 0 | 1,670 |
Net cash flows used in investing activities | (1,900) | 1,339 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | 0 | 0 |
Dividends paid on Class A and Class B Common Stock | (18,356) | (18,392) |
Repurchase of outstanding Class A Common Stock | (104,985) | |
Increase (decrease) in intercompany payables | 126,151 | 14,869 |
Other, net | (1,128) | 880 |
Net cash flows used in financing activities | 1,682 | (2,643) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 0 | 0 |
Reportable legal entities | Sinclair Television Group, Inc. | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | (65,900) | (88,587) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (2,919) | (2,214) |
Payments for debt and equity investments | (4,641) | (31) |
Distributions from equity method investees | 0 | 0 |
Other, net | (640) | (1,862) |
Net cash flows used in investing activities | (8,200) | (4,107) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | (7,784) | (13,800) |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | |
Increase (decrease) in intercompany payables | (10,238) | 251,594 |
Other, net | 0 | 0 |
Net cash flows used in financing activities | (18,022) | 237,794 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (92,122) | 145,100 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 961,963 | 645,830 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 869,841 | 790,930 |
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 154,104 | 193,725 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (27,443) | (18,505) |
Payments for debt and equity investments | (17,274) | (6,778) |
Distributions from equity method investees | 0 | 0 |
Other, net | 7,514 | 49 |
Net cash flows used in investing activities | (37,203) | (25,234) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | (1,000) | (843) |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | |
Increase (decrease) in intercompany payables | (132,118) | (256,169) |
Other, net | 0 | 0 |
Net cash flows used in financing activities | (133,118) | (257,012) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (16,217) | (88,521) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 19,648 | 323,383 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 3,431 | 234,862 |
Reportable legal entities | Non- Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 13,211 | (10,684) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (608) | (1,500) |
Payments for debt and equity investments | (1,910) | (571) |
Distributions from equity method investees | 695 | 9,123 |
Other, net | 9 | 0 |
Net cash flows used in investing activities | (1,814) | 7,052 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | (2,390) | (2,400) |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | |
Increase (decrease) in intercompany payables | 16,162 | (5,016) |
Other, net | (1,813) | (3,176) |
Net cash flows used in financing activities | 11,959 | (10,592) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 23,356 | (14,224) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 78,719 | 26,727 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 102,075 | 12,503 |
Eliminations | ||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | (1,958) | 5,185 |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | 1,962 | 0 |
Payments for debt and equity investments | 0 | 0 |
Distributions from equity method investees | 0 | 0 |
Other, net | 0 | 0 |
Net cash flows used in investing activities | 1,962 | 0 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Repayments of notes payable, commercial bank financing and finance leases | 112 | 93 |
Dividends paid on Class A and Class B Common Stock | 0 | 0 |
Repurchase of outstanding Class A Common Stock | 0 | |
Increase (decrease) in intercompany payables | 43 | (5,278) |
Other, net | (159) | 0 |
Net cash flows used in financing activities | (4) | (5,185) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | 0 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 0 | 0 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ 0 | $ 0 |