Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | SINCLAIR BROADCAST GROUP INC | ||
Entity Central Index Key | 912,752 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,453.1 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 65,721,967 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 25,670,684 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,060,330 | $ 681,326 | |
Restricted cash, current | 0 | 313,110 | |
Accounts receivable, net of allowance for doubtful accounts of $2,379 and $2,590, respectively | 598,597 | 566,464 | |
Current portion of program contract costs | 64,247 | 71,387 | |
Income taxes receivable | 0 | 28,150 | |
Prepaid expenses and other current assets | 60,732 | 54,310 | |
Total current assets | 1,783,906 | 1,714,747 | |
Program contract costs, less current portion | 11,217 | 3,202 | |
Property and equipment, net | 683,134 | 738,298 | |
Restricted cash, less current portion | 0 | 1,504 | |
Goodwill | 2,123,902 | 2,124,033 | |
Indefinite-lived intangible assets | 158,222 | 159,371 | |
Definite-lived intangible assets, net | 1,626,880 | 1,801,670 | |
Other assets | 184,831 | 241,645 | |
Total assets | [1] | 6,572,092 | 6,784,470 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 413,227 | 370,403 | |
Deferred spectrum auction proceeds | 0 | 84,341 | |
Income taxes payable | 23,314 | 2,503 | |
Current portion of notes payable, capital leases and commercial bank financing | 42,564 | 161,049 | |
Current portion of program contracts payable | 93,480 | 108,053 | |
Total current liabilities | 572,585 | 726,349 | |
Notes payable, capital leases and commercial bank financing, less current portion | 3,849,891 | 3,887,601 | |
Program contracts payable, less current portion | 50,060 | 41,909 | |
Deferred tax liabilities | 413,253 | 515,236 | |
Other long-term liabilities | 85,983 | 79,009 | |
Total liabilities | [1] | 4,971,772 | 5,250,104 |
Commitments and contingencies (See Note 11) | |||
Shareholders' Equity: | |||
Additional paid-in capital | 1,121,054 | 1,320,298 | |
Retained earnings | 517,620 | 248,845 | |
Accumulated other comprehensive loss | (784) | (1,423) | |
Total Sinclair Broadcast Group shareholders’ equity | 1,638,836 | 1,568,738 | |
Noncontrolling interests | (38,516) | (34,372) | |
Total equity | 1,600,320 | 1,534,366 | |
Total liabilities and equity | 6,572,092 | 6,784,470 | |
Total assets of variable interest entities | 127,600 | 130,600 | |
Total liabilities of variable interest entities | 22,300 | 27,000 | |
Class A Common Stock | |||
Shareholders' Equity: | |||
Common Stock | 689 | 761 | |
Class B Common Stock | |||
Shareholders' Equity: | |||
Common Stock | $ 257 | $ 257 | |
[1] | Our consolidated total assets as of December 31, 2018 and 2017 include total assets of variable interest entities (VIEs) of $127.6 million and $130.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2018 and 2017 include total liabilities of the VIEs of $22.3 million and $27.0 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 12. Variable Interest Entities |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, net of allowance for doubtful accounts of $2,379 and $2,590, respectively | $ 2,379 | $ 2,590 |
Class A Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock, shares issued (in shares) | 68,897,723 | 76,071,145 |
Common Stock, shares outstanding (in shares) | 68,897,723 | 76,071,145 |
Class B Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common Stock, shares issued (in shares) | 25,670,684 | 25,670,684 |
Common Stock, shares outstanding (in shares) | 25,670,684 | 25,670,684 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
REVENUES: | ||||||
Media revenues | [1] | $ 2,918,727 | $ 2,566,936 | $ 2,520,676 | ||
Non-media revenues | 136,354 | 69,279 | 101,834 | |||
Total revenues | 3,055,081 | 2,636,215 | 2,622,510 | |||
OPERATING EXPENSES: | ||||||
Media production expenses | 1,191,016 | 1,064,144 | 955,604 | |||
Media selling, general and administrative expenses | 629,919 | 533,537 | 501,589 | |||
Amortization of program contract costs and net realizable value adjustments | 100,899 | 115,523 | 127,880 | |||
Non-media expenses | 122,491 | 75,199 | 84,733 | |||
Depreciation of property and equipment | 105,240 | 97,103 | [2] | 98,529 | [2] | |
Corporate general and administrative expenses | 111,070 | 113,253 | 73,556 | |||
Amortization of definite-lived intangible and other assets | 174,848 | 178,822 | [2] | 183,795 | [2] | |
Gain on asset dispositions and other, net of impairment | (40,063) | (278,872) | (6,029) | |||
Total operating expenses | 2,395,420 | 1,898,709 | 2,019,657 | |||
Operating income | 659,661 | 737,506 | 602,853 | |||
OTHER INCOME (EXPENSE): | ||||||
Interest expense and amortization of debt discount and deferred financing costs | (291,976) | (212,315) | (211,143) | |||
Loss from extinguishment of debt | 0 | (1,404) | [2] | (23,699) | [2] | |
(Loss) income from equity method investments | (60,831) | (14,307) | 906 | |||
Other income, net | 3,369 | 9,264 | 3,973 | |||
Total other expense | (349,438) | (218,762) | (229,963) | |||
Income before income taxes | 310,223 | 518,744 | 372,890 | |||
INCOME TAX BENEFIT (PROVISION) | 35,775 | 75,360 | (122,128) | |||
NET INCOME | 345,998 | 594,104 | [2] | 250,762 | [2] | |
Net income attributable to the noncontrolling interests | (4,757) | (18,091) | (5,461) | |||
NET INCOME ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP | $ 341,241 | $ 576,013 | $ 245,301 | |||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO SINCLAIR BROADCAST GROUP: | ||||||
Basic earnings per share (in dollars per share) | $ 3.38 | $ 5.77 | $ 2.62 | |||
Diluted earnings per share (in dollars per share) | $ 3.35 | $ 5.72 | $ 2.60 | |||
Weighted average common shares outstanding (in shares) | 100,913 | 99,844 | 93,567 | |||
Weighted average common and common equivalent shares outstanding (in shares) | 101,718 | 100,789 | 94,433 | |||
[1] | See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies | |||||
[2] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 345,998 | $ 594,104 | [1] | $ 250,762 | [1] |
Adjustments to post-retirement obligations, net of taxes | 639 | (616) | 27 | ||
Comprehensive income | 346,637 | 593,488 | 250,789 | ||
Comprehensive income attributable to noncontrolling interests | (4,757) | (18,091) | (5,461) | ||
Comprehensive income attributable to Sinclair Broadcast Group | $ 341,880 | $ 575,397 | $ 245,328 | ||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-In Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Cumulative effect of adoption of new accounting standard | $ 2,264 | $ 431 | $ 1,833 | |||||||
BALANCE (in shares) at Dec. 31, 2015 | 68,792,483 | 25,928,357 | ||||||||
BALANCE at Dec. 31, 2015 | 499,678 | $ 688 | $ 259 | 962,726 | (437,029) | $ (834) | $ (26,132) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Dividends declared and paid on Class A and Class B Common Stock | (65,909) | (65,909) | ||||||||
Class B Common Stock converted into Class A Common Stock (in shares) | 257,673 | (257,673) | ||||||||
Class B Common Stock converted into Class A Common Stock | 0 | $ 2 | $ (2) | |||||||
Repurchase of Class A Common Stock (in shares) | (4,892,461) | |||||||||
Repurchases of Class A Common Stock | (136,283) | $ (48) | (136,235) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (in shares) | 400,512 | |||||||||
Class A Common Stock issued pursuant to employee benefit plans | 16,773 | $ 4 | 16,769 | |||||||
Distributions to noncontrolling interests | (10,722) | (10,722) | ||||||||
Issuance of subsidiary stock awards | 1,346 | 1,346 | ||||||||
Other comprehensive income | 27 | 27 | ||||||||
Net income | 250,762 | [1] | 245,301 | 5,461 | ||||||
BALANCE (in shares) at Dec. 31, 2016 | 64,558,207 | 25,670,684 | ||||||||
BALANCE at Dec. 31, 2016 | 557,936 | $ 646 | $ 257 | 843,691 | (255,804) | (807) | (30,047) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common stock, net of issuance costs (in shares) | 12,000,000 | |||||||||
Issuance of common stock, net of issuance costs | 487,883 | $ 120 | 487,763 | |||||||
Dividends declared and paid on Class A and Class B Common Stock | (71,364) | (71,364) | ||||||||
Repurchase of Class A Common Stock (in shares) | (997,300) | |||||||||
Repurchases of Class A Common Stock | (30,287) | $ (10) | (30,277) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (in shares) | 510,238 | |||||||||
Class A Common Stock issued pursuant to employee benefit plans | 19,126 | $ 5 | 19,121 | |||||||
Distributions to noncontrolling interests | (22,416) | (22,416) | ||||||||
Other comprehensive income | (616) | (616) | ||||||||
Net income | 594,104 | [1] | 576,013 | 18,091 | ||||||
BALANCE (in shares) at Dec. 31, 2017 | 76,071,145 | 25,670,684 | 76,071,145 | 25,670,684 | ||||||
BALANCE at Dec. 31, 2017 | 1,534,366 | $ 761 | $ 257 | 1,320,298 | 248,845 | (1,423) | (34,372) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Cumulative effect of adoption of new accounting standard | 2,100 | 2,100 | ||||||||
Dividends declared and paid on Class A and Class B Common Stock | (74,566) | (74,566) | ||||||||
Repurchase of Class A Common Stock (in shares) | (7,761,529) | |||||||||
Repurchases of Class A Common Stock | (220,889) | $ (78) | (220,811) | |||||||
Class A Common Stock issued pursuant to employee benefit plans (in shares) | 588,107 | |||||||||
Class A Common Stock issued pursuant to employee benefit plans | 21,573 | $ 6 | 21,567 | |||||||
Distributions to noncontrolling interests | (8,901) | (8,901) | ||||||||
Other comprehensive income | 639 | 639 | ||||||||
Net income | 345,998 | 341,241 | 4,757 | |||||||
BALANCE (in shares) at Dec. 31, 2018 | 68,897,723 | 25,670,684 | 68,897,723 | 25,670,684 | ||||||
BALANCE at Dec. 31, 2018 | $ 1,600,320 | $ 689 | $ 257 | $ 1,121,054 | $ 517,620 | $ (784) | $ (38,516) | |||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Aug. 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends declared per share (USD per share) | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | |||
Dividends paid per share (USD per share) | $ 0.74 | $ 0.72 | ||||||||
Class A Common Stock | ||||||||||
Dividends declared per share (USD per share) | 0.74 | 0.72 | $ 0.71 | |||||||
Dividends paid per share (USD per share) | 0.74 | 0.72 | 0.71 | |||||||
Class B Common Stock | ||||||||||
Dividends declared per share (USD per share) | 0.74 | 0.72 | 0.71 | |||||||
Dividends paid per share (USD per share) | $ 0.74 | $ 0.72 | $ 0.71 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | $ 345,998 | $ 594,104 | [1] | $ 250,762 | [1] | |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation of property and equipment | 105,240 | 97,103 | [1] | 98,529 | [1] | |
Amortization of definite-lived intangible and other assets | 174,848 | 178,822 | [1] | 183,795 | [1] | |
Amortization of program contract costs and net realizable value adjustments | 100,899 | 115,523 | [1] | 127,880 | [1] | |
Loss on extinguishment of debt | 0 | 1,404 | [1] | 23,699 | [1] | |
Stock-based compensation | 26,516 | 15,886 | [1] | 16,939 | [1] | |
Deferred tax (benefit) provision | (102,621) | (159,462) | [1] | 6,118 | [1] | |
Gain on asset dispositions, net of impairment | (19,325) | (278,608) | [1] | (6,029) | [1] | |
Loss (income) from equity method investments | 60,831 | 14,307 | [1] | (906) | [1] | |
Changes in assets and liabilities, net of effects of acquisitions and dispositions: | ||||||
Increase in accounts receivable | (36,680) | (41,908) | [1] | (71,718) | [1] | |
Net change in net income taxes payable/receivable | 48,703 | (43,374) | [1] | 18,814 | [1] | |
Increase in prepaid expenses and other current assets | (9,905) | (9,409) | [1] | (969) | [1] | |
Increase in accounts payable and accrued liabilities | 23,666 | 34,857 | [1] | 60,086 | [1] | |
Payments on program contracts payable | (107,983) | (111,470) | [1] | (111,506) | [1] | |
Other, net | 37,231 | 23,638 | [1] | 16,096 | [1] | |
Net cash flows from operating activities | 647,418 | 431,413 | [1] | 611,590 | [1] | |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | (105,061) | (83,812) | [1] | (94,465) | [1] | |
Acquisition of businesses, net of cash acquired | 0 | (271,273) | [1] | (425,657) | [1] | |
Spectrum auction proceeds | 0 | 310,802 | [1] | 0 | [1] | |
Proceeds from the sale of assets | 1,616 | 195,209 | [1] | 17,202 | [1] | |
Purchase of alarm monitoring contracts | 0 | (5,682) | [1] | (40,206) | [1] | |
Investments in equity investees | (35,805) | (55,129) | [1] | (51,247) | [1] | |
Distributions from equity method investees | 22,834 | 12,178 | [1] | 6,786 | [1] | |
Loans to affiliates | 0 | 19,500 | [1] | (19,500) | [1] | |
Other, net | (1,795) | (7,209) | [1] | (2,441) | [1] | |
Net cash flows (used in) from investing activities | (118,211) | 114,584 | [1] | (609,528) | [1] | |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 4,317 | 166,797 | [1] | 1,024,912 | [1] | |
Repayments of notes payable, commercial bank financing and capital leases | (166,785) | (340,108) | [1] | (674,439) | [1] | |
Proceeds from the sale of Class A Common Stock | 0 | 487,883 | [1] | 0 | [1] | |
Repurchase of outstanding Class A Common Stock | (220,889) | (30,287) | [1] | (136,283) | [1] | |
Dividends paid on Class A and Class B Common Stock | (74,566) | (71,364) | [1] | (65,909) | [1] | |
Payments for deferred financing costs | (922) | (731) | [1] | (35,505) | [1] | |
Distributions to noncontrolling interests | (8,901) | (22,416) | [1] | (10,464) | [1] | |
Other, net | 2,929 | (15) | [1] | 2,113 | [1] | |
Net cash flows (used in) from financing activities | (464,817) | 189,759 | [1] | 104,425 | [1] | |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 64,390 | 735,756 | [1] | 106,487 | [1] | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | [1] | 995,940 | 260,184 | 153,697 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | $ 1,060,330 | $ 995,940 | [1] | $ 260,184 | [1] | |
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:Nature of Operations Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach and a strong focus on using our spectrum to bring together content providers, advertisers, and consumers on various 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. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. 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 December 31, 2018 , our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 191 stations in 89 markets. These stations broadcast 605 channels as of December 31, 2018 . For the purpose of this report, these 191 stations and 605 The consolidated financial statements include our accounts and those of subsidiaries which we control 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 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 12. Variable Interest Entities The preparation of financial statements in accordance with accounting principles generally accepted in the United States of In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers, Accounting Standards Codification Topic 606 (ASC 606). This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and replaced most existing revenue recognition guidance when it became effective. The standard permits the use of either the retrospective or cumulative effect transition method. Since Accounting Standards Update (ASU) 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We adopted this guidance retrospectively during the first quarter of 2018. The impact of the adoption did not have a material impact on our station advertising or distribution revenue. Under the new standard, certain barter revenue and expense related to syndicated programming is no longer recognized. See Revenue Recognition below for more information on the adoption. In January 2016, the FASB issued new guidance which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new guidance requires entities to measure equity investments (except those accounted for under the equity method of accounting or those that resulted in consolidation of the investee) at fair value, with changes in fair value recognized in net income. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our financial statements. Upon adoption of this guidance, we recorded a cumulative effect adjustment to retained earnings of $2.1 million within our consolidated statement of equity. See Note 6. Other Assets for more information on our equity investments. In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently, only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize lease assets and liabilities and recognize the lease expense for such leases, generally on a straight-line basis over the lease term. The new standard is effective for interim and annual reporting periods beginning after December 15, 2018. We adopted the optional transition method as well as the package of practical expedients on January 1, 2019. The adoption of this standard is expected to result in an increase of total assets and total liabilities on our consolidated balance sheets of less than 5% . We do not expect a material impact on our consolidated statements of operations. In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flows. In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new guidance requires that the statement of cash flows explain changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance retrospectively during the first quarter of 2018. The following table presents the effects of adoption on our consolidated financial statements for the comparative periods presented (in thousands): For the years ended December 31, 2017 December 31, 2016 As Reported Adjustment (a) As Adjusted As Reported Adjustment (b) As Adjusted Net cash flows from operating activities $ 431,104 $ 309 $ 431,413 $ 591,766 $ 19,824 $ 611,590 Net cash flow from (used in) investing activities (198,025 ) 312,609 114,584 (606,003 ) (3,525 ) (609,528 ) Net cash flow from financing activities 188,263 1,496 189,759 124,249 (19,824 ) 104,425 (a) Adjustment primarily relates to restricted cash received as discussed under Broadcast Incentive Auction under 2018 Dispositions within Note 2. Acquisitions and Dispositions of Assets . (b) Adjustment primarily relates to the $19.8 million prepayment penalty related to the redemption of our 6.375 Senior Unsecured Notes in August 2016. In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our consolidated financial statements. In 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. Management regularly reviews accounts receivable and determines an appropriate estimate for the allowance for doubtful accounts based upon the impact of economic conditions on the merchant’s ability to pay, past collection experience, and such other factors which, in management’s judgment, deserve current recognition. In turn, a provision is charged against earnings in order to maintain the appropriate allowance level. A rollforward of the allowance for doubtful accounts for the years ended December 31, 2018 , 2017 , and 2016 is as follows (in thousands): 2018 2017 2016 Balance at beginning of period $ 2,590 $ 2,124 $ 4,495 Charged to expense 5,814 2,837 1,974 Net write-offs (6,025 ) (2,371 ) (4,345 ) Balance at end of period $ 2,379 $ 2,590 $ 2,124 We have agreements with distributors for the rights to television programming over contract periods, which generally run from one to seven years . Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet where the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets. The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or estimated net realizable value. With the exception of one and two -year contracts, amortization of program contract costs is computed using an accelerated method. Program contract costs are amortized on a straight-line basis for one and two -year contracts. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by adjustments for amortization or estimated net realizable value. We evaluate our goodwill and indefinite lived intangible assets for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that an impairment may exist. Our goodwill has been allocated to, and is tested for impairment at, the reporting unit level. A reporting unit is an operating segment or a component of an operating segment to the extent that the component constitutes a business for which discrete financial information is available and regularly reviewed by segment management. Components of an operating segment with similar economic characteristics are aggregated when testing goodwill for impairment. In the performance of our annual assessment of goodwill for impairment we have the option to qualitatively assess whether it is more likely than not that a reporting unit has been impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the reporting units as well as industry, regulatory, and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. We also consider the significance of the excess fair value over carrying value in prior quantitative assessments. If we conclude that it is more likely than not that a reporting unit is impaired, or if we elect not to perform the optional qualitative assessment, we will determine the fair value of the reporting unit and compare it to the net book value of the reporting unit. If the fair value is less than the net book value we will record an impairment to goodwill for the amount of the difference. We estimate the fair value of our reporting units utilizing a combination of a market based approach, which considers earnings and cash flow multiples of comparable businesses and recent market transactions, as well as an income approach involving the performance of a discounted cash flow analysis. Our discounted cash flow model is based on our judgment of future market conditions based on our internal forecast of future performance, as well as discount rates that are based on a number of factors including market interest rates, a weighted average cost of capital analysis, and includes adjustments for market risk and company specific risk. Our indefinite-lived intangible assets consist primarily of our broadcast licenses and a trade name. For our annual impairment test for indefinite-lived intangible assets we have the option to perform a qualitative assessment to determine whether it is more likely than not that these assets are impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the indefinite-lived intangible assets as well as industry, regulatory, and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. We also consider the significance of the excess fair value over carrying value in prior quantitative assessments. When evaluating our broadcast licenses for impairment, the qualitative assessment is done at the market level because the broadcast licenses within the market are complementary and together enhance the single broadcast license of each station. If we conclude that it is more likely than not that one of our broadcast licenses is impaired, we will perform a quantitative assessment by comparing the aggregate fair value of the broadcast licenses in the market to the respective carrying values. We estimate the fair values of our broadcast licenses using the Greenfield method, which is an income approach. This method involves a discounted cash flow model that incorporates several variables, including, but not limited to, market revenues and long term growth projections, estimated market share for the typical participant without a network affiliation, and estimated profit margins based on market size and station type. The model also assumes outlays for capital expenditures, future terminal values, an effective tax rate assumption and a discount rate based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk. If the carrying amount of the broadcast licenses exceeds the fair value, then an impairment loss is recorded to the extent that the carrying value of the broadcast licenses exceeds the fair value. We periodically evaluate our long-lived assets for impairment and continue to evaluate them as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. We evaluate the recoverability of long-lived assets by measuring the carrying amount of the assets against the estimated undiscounted future cash flows associated with them. At the time that such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are tested for impairment by comparing their estimated fair value to the carrying value. We typically estimate fair value using discounted cash flow models and appraisals. See Note 5. Goodwill, Indefinite-Lived Intangible Assets and Other Intangible Assets for more information. When factors indicate that there may be a decrease in value of an equity method investment, we assess whether a loss in value has occurred. If that loss is deemed to be other than temporary, an impairment loss is recorded accordingly. For any equity method investments that indicate a potential impairment, we estimate the fair values of those investments using discounted cash flow models, unrelated third-party valuations, or industry comparables, based on the various facts available to us. See Note 6. Other Assets for more information. We recorded an impairment charge of $59.6 million for the year ended December 31, 2018 Accrued liabilities consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Compensation and employee benefits $ 99,884 $ 87,003 Interest 42,450 42,794 Deferred revenue 83,270 49,522 Programming related obligations 79,685 89,728 Accounts payable and other accruals relating to operating expenses 107,938 101,356 Total accounts payable and accrued liabilities $ 413,227 $ 370,403 We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities. 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. As of December 31, 2018 and 2017 , a valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Future changes in operating and/or taxable income or other changes in facts and circumstances could significantly impact the ability to realize our deferred tax assets which could have a material effect on our consolidated financial statements. Management periodically performs a comprehensive review of our tax positions and we record a liability for unrecognized tax benefits when such tax positions do not meet the “more-likely-than-not” threshold. Significant judgment is required in determining whether a tax position meets the “more-likely-than-not” threshold, and it is based on a variety of facts and circumstances, including interpretation of the relevant federal and state income tax codes, regulations, case law and other authoritative pronouncements. Based on this analysis, the status of ongoing audits and the expiration of applicable statute of limitations, liabilities are adjusted as necessary. The resolution of audits is unpredictable and could result in tax liabilities that are significantly higher or lower than for what we have provided. See Note 10. Income Taxes , for further discussion of accrued unrecognized tax benefits. The Company recognized the estimated income tax effects of the Tax Cut and Jobs Act in the 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the Tax Act was enacted. As of December 31, 2018, the Company has completed its accounting for the tax effects of enactment of the Tax Act. The Company has recognized a benefit of $4.3 million During the years ended December 31, 2018 , 2017 , and 2016 , we had the following cash transactions (in thousands): 2018 2017 2016 Income taxes paid $ 16,928 $ 128,168 $ 108,347 Income tax refunds $ 413 $ 1,508 $ 12,193 Interest paid $ 284,691 $ 203,800 $ 191,117 Non-cash investing activities included property and equipment purchases of $10.6 million , $9.5 million , and $5.9 million for the years ended December 31, 2018 , 2017 , and 2016 On January 1, 2018, we adopted ASC 606 using the retrospective adoption method. The following table presents the effects of adoption on our consolidated financial statements for the comparative periods presented (in thousands): For the years ended December 31, 2017 December 31, 2016 As Reported Adoption of ASC 606 As Adjusted As Reported Adoption of ASC 606 As Adjusted Revenues realized from station barter arrangements (a) $ 120,963 $ (97,903 ) $ 23,060 $ 135,566 $ (114,439 ) $ 21,127 Expenses realized from barter arrangements (b) $ 98,973 $ (97,903 ) $ 1,070 $ 116,954 $ (114,439 ) $ 2,515 Operating income $ 737,506 $ — $ 737,506 $ 602,853 $ — $ 602,853 Net income $ 576,013 $ — $ 576,013 $ 245,301 $ — $ 245,301 Basic EPS $ 5.77 $ — $ 5.77 $ 2.62 $ — $ 2.62 Diluted EPS $ 5.72 $ — $ 5.72 $ 2.60 $ — $ 2.60 (a) The remaining balance in the "as adjusted" column relates to trade revenue, which was unaffected by the adoption and has been reclassified to media revenue. (b) The remaining balance in the "as adjusted" column relates to trade expense, which was unaffected by the adoption and has been reclassified to media production expense. The following table presents our revenue disaggregated by type and segment (in thousands): For the year ended December 31, 2018 Broadcast Other Total Advertising revenue $ 1,484,188 $ 75,539 $ 1,559,727 Distribution revenue 1,185,800 112,827 1,298,627 Other media and non-media revenues 44,675 152,052 196,727 Total revenues $ 2,714,663 $ 340,418 $ 3,055,081 For the year ended December 31, 2017 Broadcast Other Total Advertising revenue $ 1,314,999 $ 54,402 $ 1,369,401 Distribution revenue 1,032,838 107,012 1,139,850 Other media and non-media revenues 45,804 81,160 126,964 Total revenues $ 2,393,641 $ 242,574 $ 2,636,215 For the year ended December 31, 2016 Broadcast Other Total Advertising revenue $ 1,480,157 $ 28,176 $ 1,508,333 Distribution revenue 890,554 65,382 955,936 Other media and non-media revenues 46,274 111,967 158,241 Total revenues $ 2,416,985 $ 205,525 $ 2,622,510 Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions on our broadcast television and digital platforms. Advertising revenue is recognized in the period in which the advertising spots/impressions are delivered. In arrangements where we provide audience ratings guarantees, to the extent that there is a ratings shortfall, we will defer a proportionate amount of revenue until the ratings shortfall is settled through the delivery of additional advertising. The term of our advertising arrangements is generally less than one year and the timing between when an advertisement is aired and when payment is due is not significant. In certain circumstances, we require customers to pay in advance; payments received in advance of satisfying our performance obligations are reflected as deferred revenue. Distribution Revenue. We generate distribution revenue through fees received from MVPDs, vMVPDs, and OTT providers for the right to distribute our broadcast channels and cable networks on their distribution platforms. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 90 days. Historical adjustments to subscriber estimates have not been material. Practical Expedients and Exemptions. We expense sales commissions when incurred because the period of benefit for these costs is one year or less. These costs are recorded within media selling, general and administrative expenses. In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty. Arrangements with Multiple Performance Obligations. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price, which is generally based on the prices charged to customers. Deferred Revenues. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Deferred revenues were $83.3 million , $49.5 million , and $31.7 million as of December 31, 2018 , 2017 , and 2016 , respectively. The increase in deferred revenues was primarily driven by amounts received or due in advance of satisfying our performance obligations, offset by $38.8 million and $22.3 million of revenues recognized that were included in the deferred revenues balance as of December 31, 2017 and 2016 Promotional advertising expenses are recorded in the period when incurred and are included in media production and other non-media expenses. Total advertising expenses, net of advertising co-op credits, were $19.2 million , $20.6 million , and $18.5 million for the years ended December 31, 2018 , 2017 , and 2016 Financial instruments, as of December 31, 2018 and 2017 , consisted of cash and cash equivalents, trade accounts receivable, accounts payable, accrued liabilities, and notes payable. The carrying amounts approximate fair value for each of these financial instruments, except for the notes payable. See Note 16. Fair Value Measurements We maintain a supplemental executive retirement plan (SERP) which we inherited upon the acquisition of certain stations. As of December 31, 2018 , the estimated projected benefit obligation was $19.2 million , of which $1.6 million is included in accrued expenses in the consolidated balance sheet and $17.6 million is included in other long-term liabilities. At December 31, 2018 , the projected benefit obligation was measured using a 4.11% discount rate compared to a discount rate of 3.46% for the year ended December 31, 2017 . During the years ended December 31, 2018 and 2017 , we made $1.7 million and $1.8 million in benefit payments and recognized $1.3 million of actuarial gains and $1.0 million of actuarial losses through other comprehensive income, respectively. For both years ended December 31, 2018 and 2017 , we recognized $0.8 million of periodic pension expense, reported in other expense in the consolidated statements of operations. We also maintain other post-retirement plans provided to certain employees. The plans are voluntary programs that primarily allow participants to defer eligible compensation and they may also qualify to receive a discretionary match on their deferral. As of December 31, 2018, the assets and liabilities included on our consolidated balance sheet related to deferred compensation plans were $26.0 million and $24.1 million |
ACQUISITIONS AND DISPOSITIONS O
ACQUISITIONS AND DISPOSITIONS OF ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS OF ASSETS | ACQUISITIONS AND DISPOSITIONS OF ASSETS: During the years ended December 31, 2017 and 2016 , we acquired certain businesses for an aggregate purchase price of $689.4 million plus working capital of $3.4 million . The following summarizes the material acquisition activity during the years ended December 31, 2017 and 2016 : 2017 Acquisitions Bonten. On September 1, 2017, we acquired the stock of Bonten Media Group Holdings, Inc. (Bonten) and Cunningham Broadcasting Corporation (Cunningham) acquired the membership interest of Esteem Broadcasting LLC for an aggregate purchase price of $240.0 million plus a working capital adjustment, excluding cash acquired, of $2.2 million accounted for as a business combination under the acquisition method of accounting. As a result of the transaction, we added 14 television stations in 8 markets: Tri-Cities, TN/VA; Greensville/New Bern/Washington, NC; Chico/Redding, CA; Abilene/Sweetwater, TX; Missoula, MT; Butte/Bozeman, MT; San Angelo, TX; and Eureka, CA. Cunningham assumed the joint sales agreements under which we will provide services to 4 additional stations. The transaction was funded with cash on hand. The acquisition will expand our regional presence in several states where we already operate and help us bring improvements to small market stations. The following table summarizes the allocated fair value of acquired assets and assumed liabilities (in thousands): Accounts receivable $ 14,536 Prepaid expenses and other current assets 699 Program contract costs 988 Property and equipment 27,295 Definite-lived intangible assets 161,936 Indefinite-lived intangible assets 425 Other assets 3,609 Accounts payable and accrued liabilities (8,846 ) Program contracts payable (988 ) Deferred tax liability (66,158 ) Other long term liabilities (12,265 ) Fair value of identifiable, net assets acquired 121,231 Goodwill 120,921 Total purchase price, net of cash acquired $ 242,152 The final purchase price allocation presented above is based upon management’s estimate of the fair value of the acquired assets and assumed liabilities using valuation techniques including income, cost, and market approaches. The fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates. During the year ended December 31, 2018 , we made certain measurement period adjustments to the initial Bonten purchase price allocation resulting in reclassifications between certain non-current assets and liabilities, including an increase to goodwill of $1.5 million . The definite-lived intangible assets of $161.9 million is comprised of network affiliations of $53.3 million and customer relationships of $108.6 million . These intangible assets will be amortized over a weighted average useful life of 15 and 14 years for network affiliations and customer relationships, respectively. Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives. Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, including assembled workforce and noncontractual relationships, as well as expected future synergies. We expect that goodwill deductible for tax purposes will be approximately $5.6 million . Other 2017 Acquisitions. During 2017, we acquired certain media assets for an aggregate purchase price of $27.4 million , less working capital of $2.7 million . The transactions were funded with cash on hand. 2016 Acquisitions Tennis Channel. In March 2016, we acquired all of the outstanding common stock of Tennis Channel, a cable network which includes coverage of the top 100 tennis tournaments and original professional sport and tennis lifestyle shows, for $350.0 million plus a working capital adjustment, excluding cash acquired, of $4.1 million accounted for as a business combination under the acquisition method of accounting. This was funded through cash on hand and a draw on the Bank Credit Agreement. The acquisition provides an expansion of our network business and increases value based on the synergies we can achieve. Tennis Channel is reported within Other within Note 15. Segment Data . The following table summarizes the allocated fair value of acquired assets and assumed liabilities of Tennis Channel (in thousands): Accounts receivable $ 17,629 Prepaid expenses and other current assets 6,518 Property and equipment 5,964 Definite-lived intangible assets 272,686 Indefinite-lived intangible assets 23,400 Other assets 619 Accounts payable and accrued liabilities (7,414 ) Capital leases (115 ) Deferred tax liability (16,991 ) Other long term liabilities (1,669 ) Fair value of identifiable net assets acquired 300,627 Goodwill 53,427 Total purchase price, net of cash acquired $ 354,054 The purchase price allocation presented above is based upon management’s estimate of the fair value of the acquired assets and assumed liabilities using valuation techniques including income, cost, and market approaches. The fair value estimates are based on, but not limited to, expected future revenue and cash flows, expected future growth rates, and estimated discount rates. The definite-lived intangible assets of $ 272.7 million related primarily to customer relationships, which represent existing advertiser relationships and contractual relationships with multi-channel video programming distributors (MVPDs), and will be amortized over a weighted average useful life of 15 years. Acquired property and equipment will be depreciated on a straight-line basis over the respective estimated remaining useful lives. Goodwill is calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired and represents the future economic benefits expected to arise from other intangible assets acquired that do not qualify for separate recognition, as well as expected future synergies. Goodwill will not be deductible for tax purposes. Other 2016 Acquisitions. During the year ended December 31, 2016, we acquired certain television station related assets for an aggregate purchase price of $72.0 million less working capital of $0.1 million . We also exchanged certain broadcast assets which had a carrying value of $23.8 million with another broadcaster for no cash consideration, and recognized a gain on the derecognition of those broadcast assets of $4.4 million , respectively. Financial Results of Acquisitions The following tables summarize the results of the net media revenues and operating income (loss) included in the financial statements of the Company beginning on the acquisition date of each acquisition as listed below (in thousands): Revenues 2018 2017 2016 Bonten $ 100,971 $ 30,907 $ — Tennis Channel 143,047 132,584 84,040 Other acquisitions in: 2017 17,979 11,108 — 2016 81,003 66,698 49,186 Total net media revenues $ 343,000 $ 241,297 $ 133,226 Operating Income (Loss) 2018 2017 2016 Bonten $ 21,479 $ 7,448 $ — Tennis Channel 14,887 19,420 (1,990 ) Other acquisitions in: 2017 (2,035 ) (89 ) — 2016 25,523 18,392 18,311 Total operating income $ 59,854 $ 45,171 $ 16,321 In connection with the 2017 and 2016 acquisitions, for the years ended December 31, 2017 , and 2016 , we incurred $1.1 million and $1.4 million , respectively, of costs primarily related to legal, regulatory, and other professional services, which we expensed as incurred and classified as corporate general and administrative expenses in the consolidated statements of operations. Pro Forma Information The following table sets forth unaudited pro forma results of operations, assuming that Bonten and Tennis Channel along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the acquisitions presented under Other 2017 Acquisitions and Other 2016 Acquisitions above, as they are not material both individually and in the aggregate (in thousands, except per data share): Unaudited 2017 2016 Total revenues $ 2,692,890 $ 2,720,735 Net Income $ 597,054 $ 252,902 Net Income attributable to Sinclair Broadcast Group $ 578,963 $ 247,441 Basic earnings per share attributable to Sinclair Broadcast Group $ 5.80 $ 2.64 Diluted earnings per share attributable to Sinclair Broadcast Group $ 5.74 $ 2.62 This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments, and is not indicative of what our results would have been had we operated Bonten for the period presented because the pro forma results do not reflect expected synergies. The pro forma adjustments reflect depreciation expense and amortization of intangible assets related to the fair value adjustments of the assets acquired and any adjustments to interest expense to reflect the debt financing of the transactions. Depreciation and amortization expense are higher than amounts recorded in the historical financial statements of acquiree due to the fair value adjustments recorded for long-lived tangible and intangible assets in purchase accounting. 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 and other legal matters under Note 11. Commitments and Contingencies for further discussion on our pending litigation related to the Tribune acquisition. As part of the termination, we withdrew with prejudice our Federal Communication Commission (FCC) application to acquire Tribune and terminated all of the divestiture agreements entered into in anticipation of the Merger, as discussed in Assets and Liabilities Held for Sale below. For the years ended December 31, 2018 and 2017, we incurred $99.8 million and $20.5 million, respectively, of costs in connection with this acquisition. These amounts included $21.3 million in 2018 and $20.5 million in 2017 primarily related to legal and other professional services, which we expensed as incurred and classified as corporate general and administrative expenses on our consolidated statements of operations; and $78.5 million in 2018 in ticking fees and the write-off of previously capitalized debt issuance costs associated with the Tribune acquisition which was subsequently terminated, which are recorded as interest expense on our consolidated statements of operations. 2018 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. We received total proceeds of $310.8 million from the auction which was classified as restricted cash in the consolidated balance sheet as of December 31, 2017. For the years ended December 31, 2018 and 2017 , we recognized a gain of $83.3 million and $225.3 million , respectively, which was included within (gain) loss on asset dispositions and other, net of impairment within our consolidated statements of operations. These gains relate to the auction proceeds associated with three markets where the underlying spectrum was vacated during the first quarter of 2018 and fourth quarter of 2017. 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 2018, capital expenditures paid related to the spectrum repack were $31.1 million . During 2018, we recorded a $5.8 million gain related to reimbursements for the spectrum repack, which are recorded within gain on asset dispositions and other, net of impairments on the consolidated financial statements. 2017 Dispositions Alarm Funding Sale. In March 2017, we sold Alarm Funding Associates LLC (Alarm) for $200.0 million less working capital and transaction costs of $5.0 million . We recognized a gain on the sale of Alarm of $53.0 million of which $12.3 million |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS: In June 1996, our Board of Directors adopted, upon approval of the shareholders by proxy, the 1996 Long-Term Incentive Plan (LTIP). The purpose of the LTIP is to reward key individuals for making major contributions to our success and the success of our subsidiaries and to attract and retain the services of qualified and capable employees. Under the LTIP, we have issued restricted stock awards (RSAs), stock grants to our non-employee directors, stock-settled appreciation rights (SARs), and stock options. A total of 14,000,000 shares of Class A Common Stock are reserved for awards under this plan. As of December 31, 2018 , 5,780,061 shares were available for future grants. Additionally, we have the following arrangements that involve stock-based compensation: employer matching contributions (the Match) for participants in our 401(k) plan, an employee stock purchase plan (ESPP), and subsidiary stock awards. Stock-based compensation expense has no effect on our consolidated cash flows. For the years ended December 31, 2018 , 2017 , and 2016 , we recorded stock-based compensation of $26.5 million , $18.5 million , and $16.9 million , respectively. Below is a summary of the key terms and methods of valuation of our stock-based compensation awards: RSAs. RSAs issued in 2018 , 2017 , and 2016 have certain restrictions that lapse over two years at 50% and 50% , respectively. As the restrictions lapse, the Class A Common Stock may be freely traded on the open market. Unvested RSAs are entitled to dividends, and therefore, are included in weighted shares outstanding, resulting in a dilutive effect on basic and diluted earnings per share. The fair value assumes the closing value of the stock on the measurement date. The following is a summary of changes in unvested restricted stock: RSAs Weighted-Average Unvested shares at December 31, 2017 152,180 $ 33.04 2018 Activity: Granted 237,593 34.95 Vested (101,385 ) 32.66 Forfeited (8,073 ) 35.36 Unvested shares at December 31, 2018 280,315 $ 34.73 For the years ended December 31, 2018 , 2017 , and 2016 , we recorded compensation expense of $5.2 million , $3.2 million , and $2.8 million , respectively. The majority of the unrecognized compensation expense of $4.5 million as of December 31, 2018 will be recognized in 2019. Stock Grants to Non-Employee Directors. In addition to directors fees paid, on the date of each annual meetings of shareholders, each non-employee director receives a grant of unrestricted shares of Class A Common Stock. We issued 20,000 shares in 2018 , 2017 , and 2016 . We recorded expense of $0.6 million , $0.7 million , and $0.6 million for each of the years ended December 31, 2018 , 2017 , and 2016 , respectively, which was based on the average share price of the stock on the date of grant. Additionally, these shares are included in the total shares outstanding, which results in a dilutive effect on our basic and diluted earnings per share. Stock Appreciation Rights (SARs). These awards entitle holders to the appreciation in our Class A Common Stock over the base value of each SAR over the term of the award. The SARs have a 10 -year term and vest immediately. The base value of each SAR is equal to the closing price of our Class A Common Stock on the date of grant. For the years ended December 31, 2018 , 2017 , and 2016 , we recorded compensation expense of $3.2 million , $6.6 million , and $4.0 million , respectively. The following is a summary of the 2018 activity: SARs Weighted- Outstanding SARs at December 31, 2017 2,610,000 $ 22.65 2018 Activity: Granted 450,000 33.80 Outstanding SARs at December 31, 2018 3,060,000 $ 24.29 The aggregate intrinsic value of the 3,060,000 outstanding as of December 31, 2018 was $16.6 million and the outstanding SARs have a weighted average remaining contractual life of 5.87 years as of December 31, 2018 . During 2018 , 2017 , and 2016 , outstanding SARs increased the weighted average shares outstanding for purposes of determining dilutive earnings per share. Options. As of December 31, 2018 , there were options outstanding to purchase 375,000 shares of Class A Common Stock. These options are fully vested and have a weighted average exercise price of $31.08 and a weighted average remaining contractual term of 7 years . As of December 31, 2018 , there was no aggregate intrinsic value for the options outstanding. There was no grant, exercise, or forfeiture activity during the year ended December 31, 2018 . We recognized compensation expense of $0.4 million during the year ended December 31, 2016 . There was no expense recognized during the years ended December 31, 2018 and 2017 . Valuation of SARS and Options. Our SARs and stock options were valued using the Black-Scholes pricing model utilizing the following assumptions: 2018 2017 2016 Risk-free interest rate 2.6 % 2.1 % 1.2% - 1.9% Expected years to exercise 5 years 5 years 5 years Expected volatility 36.2 % 37.0 % 37.5% - 42.1% Annual dividend yield 2.1% - 2.2% 2.0 % 2.1 % The risk-free interest rate is based on the U.S. Treasury yield curve, in effect at the time of grant, for U.S. Treasury STRIPS that approximate the expected life of the award. The expected volatility is based on our historical stock prices over a period equal to the expected life of the award. The annual dividend yield is based on the annual dividend per share divided by the share price on the grant date. During 2018 , 2017 , and 2016 , outstanding SARs and options increased the weighted average shares outstanding for purposes of determining dilutive earnings per share. 401(k) Match. The Sinclair Broadcast Group, Inc. 401(k) Profit Sharing Plan and Trust (the 401(k) Plan) is available as a benefit for our eligible employees. Contributions made to the 401(k) Plan include an employee elected salary reduction amount with a match calculation (The Match). The Match and any additional discretionary contributions may be made using our Class A Common Stock, if the Board of Directors so chooses. Typically, we make the Match using our Class A Common Stock. The value of the Match is based on the level of elective deferrals into the 401(k) Plan. The amount of shares of our Class A Common Stock used to make the Match is determined using the closing price on or about March 1st of each year for the previous calendar year’s Match. For the years ended December 31, 2018 , 2017 , and 2016 , we recorded $16.4 million , $7.3 million , and $6.9 million , respectively, of stock-based compensation expense related to the Match. A total of 7,000,000 shares of Class A Common Stock are reserved for matches under the plan. As of December 31, 2018 , 4,029,061 shares were available for future grants. ESPP. The ESPP allows eligible employees to purchase Class A Common Stock at 85% of the lesser of the fair value of the common stock as of the first day of the quarter and as of the last day of that quarter, subject to certain limits as defined in the ESPP. The stock-based compensation expense recorded related to the ESPP for the years ended December 31, 2018 , 2017 , and 2016 was $1.2 million , $1.0 million , $0.9 million , respectively. A total of 3,200,000 shares of Class A Common Stock are reserved for awards under the plan. As of December 31, 2018 , 681,640 shares were available for future purchases. Subsidiary Stock Awards . From time to time, we grant subsidiary stock awards to employees. The subsidiary stock is typically in the form of a membership interest in a consolidated limited liability company, not traded on a public exchange and valued based on the estimated fair value of the subsidiary. Fair value is typically estimated using discounted cash flow models and/or appraisals. These stock awards vest immediately. For the years ended December 31, 2018 and 2017 , we recorded no compensation expense related to these awards. For the year ended December 31, 2016 , we recorded compensation expense of $1.3 million |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT: Property and equipment are stated at cost, less accumulated depreciation. Depreciation is generally computed under the straight-line method over the following estimated useful lives: Buildings and improvements 10 - 30 years Station equipment 5 - 10 years Office furniture and equipment 5 - 10 years Leasehold improvements Lesser of 10 - 30 years or lease term Automotive equipment 3 - 5 years Property and equipment under capital leases Lease term Acquired property and equipment as discussed in Note 2. Acquisitions and Dispositions of Assets , is depreciated on a straight-line basis over the respective estimated remaining useful lives. Property and equipment consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Land and improvements $ 76,501 $ 77,487 Real estate held for development and sale 34,645 87,056 Buildings and improvements 278,649 260,470 Station equipment 744,294 779,779 Office furniture and equipment 107,536 109,632 Leasehold improvements 24,115 25,120 Automotive equipment 62,663 63,513 Capital leased assets 53,401 53,005 Construction in progress 71,461 30,575 1,453,265 1,486,637 Less: accumulated depreciation (770,131 ) (748,339 ) $ 683,134 $ 738,298 Capital leased assets are related to building, tower, and equipment leases. Depreciation related to capital leases is included in depreciation expense in the consolidated statements of operations. We recorded capital lease depreciation expense of $3.1 million for the year ended December 31, 2018 and $4.2 million for both the years ended December 31, 2017 and 2016 |
GOODWILL, INDEFINITE-LIVED INTA
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS | GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS: Goodwill, which arises from the purchase price exceeding the assigned value of the net assets of an acquired business, represents the value attributable to unidentifiable intangible elements being acquired. Goodwill totaled $2,123.9 million and $2,124.0 million at December 31, 2018 and 2017 , respectively. The change in the carrying amount of goodwill was as follows (in thousands): Broadcast Other Consolidated Balance at December 31, 2016 $ 1,933,831 $ 56,915 $ 1,990,746 Acquisitions (a) 119,426 13,966 133,392 Measurement period adjustments related to prior year acquisitions 153 154 307 Disposition of assets (a) — (412 ) (412 ) Balance at December 31, 2017 (b) 2,053,410 70,623 2,124,033 Measurement period adjustments related to prior year acquisitions 1,369 (1,500 ) (131 ) Balance at December 31, 2018 (b) $ 2,054,779 $ 69,123 $ 2,123,902 (a) See Note 2. Acquisitions and Dispositions of Assets for discussion of acquisitions and divestitures made during 2017 . (b) Approximately $0.8 million of goodwill relates to consolidated VIEs as of December 31, 2018 and 2017 . For our annual goodwill impairment tests in 2018 , 2017 , and 2016 , we concluded that it was more-likely-than-not that goodwill was not impaired for the reporting units in which we performed a qualitative assessment. The qualitative factors reviewed during our annual assessments indicated stable or improving margins and favorable or stable forecasted economic conditions including stable discount rates and comparable or improving business multiples. Additionally, the results of prior quantitative assessments supported significant excess fair value over carrying value of our reporting units. We did not have any indicators of impairment in any interim period in 2018 , 2017 , or 2016 , and therefore did not perform interim impairment tests for goodwill during those periods. Our accumulated goodwill impairment as of December 31, 2018 and 2017 was $413.6 million . As of December 31, 2018 and 2017 , the carrying amount of our indefinite-lived intangible assets was as follows (in thousands): Broadcast Other Consolidated Balance at December 31, 2016 $ 132,906 $ 23,400 $ 156,306 Acquisitions (a) 425 4,051 4,476 Disposition of assets (a) (1,411 ) — (1,411 ) Balance at December 31, 2017 (b) 131,920 27,451 159,371 Disposition of assets (a) (1,149 ) — (1,149 ) Balance at December 31, 2018 (b) (c) $ 130,771 $ 27,451 $ 158,222 (a) See Note 2. Acquisitions and Dispositions of Assets for discussion of acquisitions and divestitures made during 2018 and 2017 . (b) Approximately $14.3 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2018 and 2017 . (c) Our indefinite-lived intangible assets in Broadcast relates to broadcast licenses and our indefinite-lived intangible assets in Other relates to trade names. We did not have any indicators of impairment for our indefinite-lived intangible assets in any interim period in 2018 or 2017 , and therefore did not perform interim impairment tests during those periods. We performed our annual impairment tests for indefinite-lived intangibles in 2018 and 2017 and as a result of our qualitative assessments, we recorded no impairment. In 2016, as a result of our qualitative and quantitative assessments, we recorded no impairment. The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in thousands): As of December 31, 2018 Gross Carrying Value Accumulated Amortization Net Amortized intangible assets: Network affiliation (a) $ 1,451,600 $ (604,470 ) $ 847,130 Customer Relationships (a) 1,113,134 (340,805 ) 772,329 Other (a) 33,417 (25,996 ) 7,421 Total $ 2,598,151 $ (971,271 ) $ 1,626,880 As of December 31, 2017 Gross Carrying Value Accumulated Amortization Net Amortized intangible assets: Network affiliation (a) $ 1,451,663 $ (514,575 ) $ 937,088 Customer Relationships (a) 1,229,006 (373,966 ) 855,040 Other (a) 45,955 (36,413 ) 9,542 Total $ 2,726,624 $ (924,954 ) $ 1,801,670 (a) Changes between the gross carrying value from December 31, 2017 to December 31, 2018 , relate to certain fully amortized intangible assets which were retired in 2018. Definite-lived intangible assets and other assets subject to amortization are being amortized on a straight-line basis over their estimated useful lives which generally range from 5 to 25 years . The total weighted average useful life of definite-lived intangible assets and other assets subject to amortization acquired as a result of the acquisitions discussed in Note 2. Acquisitions and Dispositions of Assets is 14 years . The amortization expense of the definite-lived intangible and other assets for the years ended December 31, 2018 , 2017 , and 2016 was $174.8 million , $178.8 million , and $183.8 million , respectively. We analyze specific definite-lived intangibles for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets. There were no impairment charges recorded for the years ended December 31, 2018 , 2017 , and 2016 . The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years (in thousands): For the year ended December 31, 2019 $ 173,508 For the year ended December 31, 2020 172,945 For the year ended December 31, 2021 171,902 For the year ended December 31, 2022 168,135 For the year ended December 31, 2023 159,236 Thereafter 781,154 $ 1,626,880 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS: Other assets as of December 31, 2018 and 2017 consisted of the following (in thousands): 2018 2017 Equity method investments $ 72,371 $ 123,923 Other equity investments 44,625 45,222 Post-retirement plan assets 28,081 22,659 Other 39,754 49,841 Total other assets $ 184,831 $ 241,645 Equity Method Investments We have a portfolio of investments in entities that are primarily focused on the development of real estate, sustainability initiatives, and other non-media businesses. For the years ended December 31, 2018, 2017, and 2016 none of our investments were individually significant. Summarized Financial Information. As described under Principles of Consolidation within Note 1. Nature of Operations and Summary of Significant Accounting Policies , we record our proportionate share of net income generated by equity method investees in (loss) income from equity method investments within our consolidated statements of operations. The summarized results of operations and financial position of the investments accounted for under the equity method are as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Revenues, net $ 145,253 $ 115,054 $ 82,524 Operating (loss) income $ (58,359 ) $ (17,470 ) $ 7,804 Net loss $ (81,596 ) $ (41,926 ) $ (2,285 ) As of December 31, 2018 2017 Current assets $ 27,961 $ 31,602 Noncurrent assets $ 710,831 $ 777,619 Current liabilities $ 52,527 $ 27,864 Noncurrent liabilities $ 543,604 $ 550,260 Other Equity Investments As discussed in Note 1. Nature of Operations and Summary of Significant Accounting Policies , we adopted ASU 2016-01 during the first quarter of 2018. This standard requires the measurement of 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. We had $24.5 million of investments accounted for utilizing the measurement alternative as of December 31, 2018 . For the year ended December 31, 2018 , we recorded a $10.0 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. As of December 31, 2018 and 2017 , our unfunded commitments related to certain equity investments totaled $28.9 million and $10.7 million , respectively. Post-retirement Plan Assets Post-retirement plan assets primarily consist of the cash surrender value of life insurance policies and mutual funds. See Post-retirement Benefits within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
NOTES PAYABLE AND COMMERCIAL BA
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND COMMERCIAL BANK FINANCING | NOTES PAYABLE AND COMMERCIAL BANK FINANCING: Notes payable, capital leases, and commercial bank financing (including capital leases to affiliates) consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Bank credit agreement: Term Loan A-1, due April 9, 2018 $ — $ 117,370 Term Loan A-2, due July 31, 2021 95,892 113,327 Term Loan B, due January 3, 2024 1,342,600 1,356,300 Senior unsecured notes: 5.375% Notes, due April 1, 2021 600,000 600,000 6.125% Notes, due October 1, 2022 500,000 500,000 5.625% Notes, due August 1, 2024 550,000 550,000 5.875% Notes, due March 15, 2026 350,000 350,000 5.125% Notes, due February 15, 2027 400,000 400,000 Debt of variable interest entities 25,281 29,614 Debt of non-media subsidiaries 19,577 25,238 Capital leases 29,562 31,696 Capital leases - affiliate 12,524 14,152 Total outstanding principal 3,925,436 4,087,697 Less: Deferred financing costs and discount (32,981 ) (39,047 ) Less: Current portion (40,634 ) (159,382 ) Less: Capital leases - affiliate, current portion (1,930 ) (1,667 ) Net carrying value of long-term debt $ 3,849,891 $ 3,887,601 Indebtedness under the Bank Credit Agreement, notes payable, and capital leases as of December 31, 2018 matures as follows (in thousands): Notes and Bank Agreement Capital Leases Capital Leases - Affiliate Total 2019 $ 38,065 $ 5,110 $ 2,978 $ 46,153 2020 36,631 4,847 3,093 44,571 2021 682,363 4,861 3,046 690,270 2022 521,871 4,744 2,441 529,056 2023 14,663 4,819 2,319 21,801 2024 and thereafter 2,589,757 18,754 2,290 2,610,801 Total minimum payments 3,883,350 43,135 16,167 3,942,652 Less: Deferred financing costs and discount (32,981 ) — — (32,981 ) Less: Amount representing future interest — (13,573 ) (3,643 ) (17,216 ) Net carrying value of debt $ 3,850,369 $ 29,562 $ 12,524 $ 3,892,455 Interest expense on the consolidated statements of operations was $292.0 million , $212.3 million , and $211.1 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Interest expense included $7.5 million , $7.7 million , and $10.8 million in amortization of deferred financing costs and debt discount for the years ended December 31, 2018 , 2017 , and 2016 , respectively, and $78.5 million in ticking fees and the write-off of previously capitalized debt issuance costs associated with the Tribune acquisition which was subsequently terminated, for the year ended December 31, 2018 . The stated and weighted average effective interest rates on the above obligations are as follows: Weighted Average Effective Rate Stated Rate 2018 2017 Bank credit agreement: Term Loan A-2 (a) LIBOR plus 2.25% 4.12% 3.30% Term Loan B LIBOR plus 2.25% 4.34% 3.32% Revolver (b) LIBOR plus 2.00% —% —% Senior unsecured notes: 5.375% Notes 5.38% 5.58% 5.58% 6.125% Notes 6.13% 6.31% 6.31% 5.625% Notes 5.63% 5.83% 5.83% 5.875% Notes 5.88% 6.09% 6.09% 5.125% Notes 5.13% 5.33% 5.33% (a) LIBOR plus 2.0% if our first lien indebtedness ratio is less than 1.5 x. (b) As of December 31, 2018 and 2017 , we had a $485.2 million revolving credit facility (Revolver). We incur a commitment fee on undrawn capacity of 0.25% or 0.50% if our first lien indebtedness ratio is less than or greater than 3.0 x, respectively. There were no outstanding borrowings and $0.7 million and $0.8 million letters of credit under the revolver as of December 31, 2018 and 2017 , respectively. There were no borrowings under the revolver during the years ended December 31, 2018 and 2017 . We capitalized $0.9 million , $0.5 million , and $2.0 million as deferred financing costs during the years ended December 31, 2018 , 2017 , and 2016 , respectively. Deferred financing costs and original issuance discounts are presented as a direct deduction from the carrying amount of an associated debt liability, except for deferred financing costs related to our Revolver which are presented within other assets in our consolidated balance sheets . Senior Unsecured Notes Upon issuance, all of our senior unsecured notes were redeemable up to 35% . We may redeem 100% of the notes upon the date set forth in the indenture of each note. The price at which we may redeem the notes is set forth in the indenture of each note. Also, if we sell certain of our assets or experience specific kinds of changes of control, the holders of our notes may require us to repurchase some or all of the outstanding notes. Bank Credit Agreement We have a syndicated credit facility which includes both revolving credit and issued term loans (Bank Credit Agreement). During the year ended December 31, 2017 , the Bank Credit Agreement was amended to provide additional operational flexibility. On January 3, 2017, we entered into an amendment to extend the maturity date of the Term Loan B from April 9, 2020 and July 31, 2021 to January 3, 2024. In connection with this extension we added additional operating flexibility, including a reduction in certain pricing terms related to Term Loan B and the Revolver and revisions to certain covenant ratio requirements. We incurred approximately $11.6 million of financing costs in connection with the amendment, of which $3.4 million related to an original issuance discount, $7.7 million was expensed, $0.5 million was capitalized as a deferred financing cost, and $1.4 million of unamortized deferred financing cost was written off as loss on extinguishment of debt. Our Bank Credit Agreement, as well as indentures governing our outstanding notes, contains covenants that, among other things, restrict our ability and our subsidiaries’ ability to incur additional indebtedness with certain exceptions; pay dividends; incur liens, engage in mergers or consolidations; make acquisitions, investments or disposals; and engage in activities with affiliates. In addition, under the Bank Credit Agreement, we are required to maintain a ratio of First Lien Indebtedness. See Note 9. Common Stock for further details. As of December 31, 2018 , we were in compliance with all financial ratios and covenants. Our Bank Credit Agreement also contains certain cross-default provisions with certain material third-party licensees, defined as any party that owns the license assets of one or more television stations for which we provided services pursuant to LMAs and/ or other outsourcing agreements and those stations provide 20% or more of our aggregate broadcast cash flows. A default by a material third-party licensee under our agreements with such parties, including a default caused by insolvency, would cause an event of default under our Bank Credit Agreement. As of December 31, 2018 , there were no material third party licensees as defined in our Bank Credit Agreement. Substantially all of our stock in our wholly-owned subsidiaries has been pledged as security for the Bank Credit Agreement. Debt of variable interest entities and guarantees of third-party debt We jointly, severally, unconditionally, and irrevocably guarantee $76.5 million and $74.0 million of debt of certain third parties as of December 31, 2018 and 2017 , respectively, of which $24.4 million and $29.3 million , net of deferred financing costs, related to consolidated VIEs is included on our consolidated balance sheets as of December 31, 2018 and 2017 , respectively. These guarantees primarily relate to the debt of Cunningham as discussed under Cunningham Broadcasting Corporation within Note 13. Related Person Transactions . The credit agreements and term loans of these VIEs each bear interest of LIBOR plus 2.50% . The weighted average effective interest rate for the debt of variable interest entities for the years ended December 31, 2018 and 2017 was 4.87% and 3.59% , respectively. We have determined that as of December 31, 2018 and 2017, it is not probable that we would have to perform under any of these guarantees. Debt of non-media subsidiaries Debt of our consolidated subsidiaries related to our non-media private equity investments and real estate ventures is non-recourse to us. Interest was paid on this debt at a fixed 3.88% during 2018 . The weighted average effective interest rate for the debt of other non-media subsidiaries for the years ended December 31, 2018 and 2017 was 3.94% and 4.31% , respectively. Capital leases Our capital leases with non-affiliates related primarily to broadcast towers. All of our tower leases will expire within the next 14 years and it is expected that these leases will be renewed or replaced within the normal course of business. For more information related to our affiliate capital leases, see Note 13. Related Person Transactions |
PROGRAM CONTRACTS
PROGRAM CONTRACTS | 12 Months Ended |
Dec. 31, 2018 | |
PROGRAM CONTRACTS: | |
PROGRAM CONTRACTS | PROGRAM CONTRACTS: Future payments required under program contracts as of December 31, 2018 were as follows (in thousands): 2019 $ 93,480 2020 17,245 2021 14,434 2022 11,458 2023 6,923 Total 143,540 Less: Current portion (93,480 ) Long-term portion of program contracts payable $ 50,060 Each future period’s film liability includes contractual amounts owed, but what is contractually owed does not necessarily reflect what we are expected to pay during that period. While we are contractually bound to make the payments reflected in the table during the indicated periods, industry protocol typically enables us to make film payments on a three -month lag. Included in the current portion amount are payments due in arrears of $23.6 million . In addition, we have entered into non-cancelable commitments for future program rights aggregating to $70.8 million as of December 31, 2018 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | COMMON STOCK: Holders of Class A Common Stock are entitled to one vote per share and holders of Class B Common Stock are entitled to ten votes per share, except for votes relating to “going private” and certain other transactions. Substantially all of the Class B Common Stock is held by David D. Smith, Frederick G. Smith, J. Duncan Smith and Robert E. Smith who entered into a stockholders’ agreement pursuant to which they have agreed to vote for each other as candidates for election to our board of directors until December 31, 2025. The Class A Common Stock and the Class B Common Stock vote together as a single class, except as otherwise may be required by Maryland law, on all matters presented for a vote. Holders of Class B Common Stock may at any time convert their shares into the same number of shares of Class A Common Stock. During 2018 and 2017 , no Class B Common Stock shares were converted into Class A Common Stock shares. Our Bank Credit Agreement and some of our subordinated debt instruments have restrictions on our ability to pay dividends. Under our Bank Credit Agreement, in certain circumstances, we may make unrestricted cash payments as long as our first lien indebtedness ratio does not exceed 3.75 to 1.00. Once our first lien indebtedness ratio exceeds 3.75 to 1.00, we have the ability to make up to $200.0 million in unrestricted annual cash payments including but not limited to dividends, of which $50.0 million may carry over to the next year, as long as we are in compliance with our first lien indebtedness ratio under the Bank Credit Agreement of 4.25 to 1.00. In addition, we have an aggregate basket of up to $250.0 million , as long as we are in compliance with our first lien indebtedness ratio of 4.25 to 1.00, and an aggregate basket of $50.0 million , as long as no Event of Default has occurred. Under the indentures governing the 6.125% Notes, 5.875% Notes, 5.375% Notes, 5.125% Notes, and 5.625% Notes, we are restricted from paying dividends on our common stock unless certain specified conditions are satisfied, including that: • no event of default then exists under each indenture or certain other specified agreements relating to our indebtedness; and • after taking into account the dividends payment, we are within certain restricted payment requirements contained in each indenture. On March 15, 2017, we completed a public offering of 12.0 million shares of Class A common stock that was priced at $42.00 per share. The net proceeds of $487.9 million are intended to be used to fund future potential acquisitions and for general corporate purposes. During 2018 and 2017 , our Board of Directors declared a quarterly dividend in the months of February, May, August, and November which were paid in March, June, September, and December, respectively. The quarterly dividend per share was increased from $0.18 to $0.20 in November 2018. Total dividend payments for the years ended December 31, 2018 and 2017 were $0.74 and $0.72 per share, respectively. In February 2019, our Board of Directors declared a quarterly dividend of $0.20 per share. Future dividends on our common shares, if any, will be at the discretion of our Board of Directors and will depend on several factors including our results of operations, cash requirements and surplus, financial condition, covenant restrictions, and other factors that the Board of Directors may deem relevant. The Class A Common Stock and Class B Common Stock holders have the same rights related to dividends. On September 6, 2016 the Board of Directors approved a $150.0 million share repurchase program. On August 9, 2018, the Board of Directors approved 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 year ended December 31, 2018 , we have repurchased approximately 7.8 million shares of Class A Common Stock for $220.9 million . As of December 31, 2018 , the total remaining repurchase authorization was $868.0 million . From January 1, 2019 through March 1, 2019, we repurchased an additional 3.5 million shares of Class A Common Stock for $105.0 million . As of March 1, 2019, the total remaining repurchase authorization was $763.1 million |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2018 , 2017 , and 2016 (in thousands): 2018 2017 2016 Current provision for income taxes: Federal $ 58,785 $ 77,477 $ 113,737 State 8,061 6,625 2,273 66,846 84,102 116,010 Deferred (benefit) provision for income taxes: Federal (68,802 ) (196,468 ) 8,555 State (33,819 ) 37,006 (2,437 ) (102,621 ) (159,462 ) 6,118 (Benefit) provision for income taxes $ (35,775 ) $ (75,360 ) $ 122,128 The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision: 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % Adjustments: Federal tax credits (a) (19.9 )% (2.2 )% (0.4 )% State income taxes, net of federal tax benefit (b) (9.0 )% 5.0 % 0.2 % Non-deductible items (c) (4.9 )% 1.5 % 1.0 % Effect of consolidated VIEs (d) 1.6 % 1.0 % 1.2 % Federal tax reform (e) (1.4 )% (54.3 )% — % Domestic production activities deduction — % (1.7 )% (3.4 )% Other 0.9 % 0.6 % (0.3 )% Effective income tax rate (11.7 )% (15.1 )% 33.3 % (a) During the years ended December 31, 2018 and 2017 , we recorded a benefit of $58.2 million and $8.3 million , respectively, related to investments in sustainability initiatives whose activities qualify for federal income tax credits through 2021. (b) Included in state income taxes are deferred income tax effects related to certain acquisitions, intercompany mergers and/or impact of changes in apportionment. (c) Our 2018 income tax provision includes a $17.7 million permanent benefit recognized from an IRS tax ruling on the treatment of the gain from the sale of certain broadcast spectrum in connection with the Broadcast Incentive Auction, as discussed in Note 2. Acquisitions and Dispositions of Assets . (d) Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs. These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized. (e) Our 2018 and 2017 income tax provisions include a non-recurring benefit of $4.3 million and $272.1 million , respectively, to reflect the effect of the U.S. Tax Cuts and Jobs Act (Tax Reform) enacted on December 22, 2017. Temporary differences between the financial reporting carrying amounts and the tax bases of assets and liabilities give rise to deferred taxes. Total deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 Deferred Tax Assets: Net operating losses: Federal $ 28,630 $ 34,861 State 74,339 75,754 Goodwill and intangible assets 12,587 14,389 Other 47,361 33,462 162,917 158,466 Valuation allowance for deferred tax assets (65,887 ) (62,865 ) Total deferred tax assets $ 97,030 $ 95,601 Deferred Tax Liabilities: Goodwill and intangible assets $ (427,339 ) $ (514,776 ) Property & equipment, net (80,461 ) (80,630 ) Other (2,483 ) (15,431 ) Total deferred tax liabilities (510,283 ) (610,837 ) Net deferred tax liabilities $ (413,253 ) $ (515,236 ) At December 31, 2018, the Company had approximately $136.3 million and $1.5 billion of gross federal and state net operating losses, respectively. Those losses will expire during various years from 2019 to 2038, and some of them are subject to annual limitations under the Internal Revenue Code Section 382 and similar state provisions. As discussed in Income taxes under Note 1. Nature of Operations and Summary of Significant Accounting Policies , we establish valuation allowances in accordance with the guidance related to accounting for income taxes. As of December 31, 2018, a valuation allowance has been provided for deferred tax assets related to a substantial portion of our available state net operating loss 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. Although realization is not assured for the remaining deferred tax assets, we believe it is more likely than not that they will be realized in the future. During the year ended December 31, 2018 , we increased our valuation allowance by $3.0 million to $65.9 million . The increase in valuation allowance was primarily due to uncertainty in the realizability of a state deferred tax asset generated by a subsidiary in 2018. During the year ended December 31, 2017 , we increased our valuation allowance by $11.1 million to $62.9 million . The increase in valuation allowance was primarily due to the impact of Tax Reform on the federal tax effect on certain state net operating loss carryforwards, for which a full valuation allowance was provided. The following table summarizes the activity related to our accrued unrecognized tax benefits (in thousands): 2018 2017 2016 Balance at January 1, $ 7,237 $ 4,739 $ 3,257 Additions related to prior year tax positions 120 2,019 420 Additions related to current year tax positions 1,600 610 2,053 Reductions related to prior year tax positions (453 ) — — Reductions related to settlements with taxing authorities (436 ) (131 ) — Reductions related to expiration of the applicable statute of limitations (1,493 ) — (991 ) Balance at December 31, $ 6,575 $ 7,237 $ 4,739 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
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. Action on the Motion remains pending. We cannot predict how the ALJ will act on the Motion or the timing for completion or the outcome of the ALJ hearing. While review of the issues raised by the HDO remains pending, the Company's ability to acquire additional TV stations may be impacted. 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 Ligitation, case No. 1:18-CV-02445-CCB (the "Securities Action"). The Initial Complaint in the Securities Action alleges that defendants violated the federal securities laws by issuing false or misleading disclosures concerning the Merger prior to the termination thereof. The Initial Complaint seeks declaratory relief, money damages in an amount to be determined at trial, and attorney’s fees and costs. On December 10, 2018, the District of Maryland appointed lead plaintiff's counsel in the Securities Action. Pursuant to a scheduling order entered by the court on December 20, 2018, as amended, lead counsel in the Securities Action will file an amended complaint on or before March 1, 2019. The Company believes that the allegations in the Komito Complaint 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. On November 29, 2018, putative Company shareholder Fire and Police Retiree Health Care Fund, San Antonio filed a shareholder derivative complaint in the District of Maryland against the members of the Company’s board of directors, Mr. Ripley, and the Company (as a nominal defendant), which action is captioned Fire and Police Retiree Health Care Fund, San Antonio v. Smith, et al., Case No. 1:18-cv-03670-RDB (the “San Antonio Action”). On December 26, 2018, putative Company shareholder Teamsters Local 677 Health Services & Insurance Plan filed a shareholder derivative complaint in the Circuit Court of Maryland for Baltimore County (the “Circuit Court”) against the members of the Company’s board of directors, Mr. Ripley, and the Company (as a nominal defendant), which action is captioned Teamsters Local 677 Health Services & Insurance Plan v. Friedman, et al., Case No. 03-C-18-12119 (the “Teamsters Action”). A defendant in the Teamsters Action removed the Teamsters action to the District of Maryland, and the plaintiff in that case has moved to remand the case back to the Circuit Court. That motion is fully briefed and awaiting decision. On December 21, 2018, putative Company shareholder Norfolk County Retirement System filed a shareholder derivative complaint in the District of Maryland against the members of the Company’s board of directors, Mr. Ripley, and the Company (as a nominal defendant), which action is captioned Norfolk County Retirement System v. Smith, et al., Case No. 1:18-cv-03952-RDB (the “Norfolk Action,” and together with the San Antonio Action and the Teamsters Action, the “Derivative Actions”). The plaintiffs in each of the Derivative Actions allege breaches of fiduciary duties by the defendants in connection with (i) seeking regulatory approval of the Tribune Merger and (ii) the HDO, and the allegations contained therein. The plaintiffs in the Derivative Actions seek declaratory relief, money damages to be awarded to the Company in an amount to be determined at trial, corporate governance reforms, equitable or injunctive relief, and attorney’s fees and costs. Additionally, the plaintiffs in the Teamsters and Norfolk Actions allege that the defendants were unjustly enriched, in the form of their compensation as directors and/or officers of the Company, in light of the alleged breaches of fiduciary duty, and seek restitution to be awarded to the Company. These allegations are the subject matter of the review being conducted by the Special Litigation Committee, as noted above. Operating Leases We have entered into operating leases for certain property and equipment under terms ranging from less than one year to 25 years . The rent expense under these leases, as well as certain leases under month-to-month arrangements, for the years ended December 31, 2018 , 2017 , and 2016 was approximately $34.5 million , $28.7 million , and $26.0 million , respectively. Future minimum payments under the leases are as follows (in thousands): 2019 $ 32,108 2020 31,287 2021 29,547 2022 26,702 2023 24,325 2024 and thereafter 157,816 $ 301,785 Changes in the Rules of Television Ownership, Local Marketing Agreements, Joint Sales Agreements, Retransmission Consent Negotiations, and National Ownership Cap Certain of our stations have entered into what have commonly been referred to as local marketing agreements or LMAs. One typical type of LMA is a programming agreement between two separately owned television stations serving the same market, whereby the licensee of one station programs substantial portions of the broadcast day and sells advertising time during such programming segments on the other licensee’s station subject to the latter licensee’s ultimate editorial and other controls. We believe these arrangements allow us to reduce our operating expenses and enhance profitability. In 1999, the FCC established a new local television ownership rule that made certain LMAs attributable. The FCC adopted policies to grandfather LMAs that were entered into prior to November 5, 1996, and permitted the applicable stations to continue operations pursuant to the LMAs until the conclusion of the FCC’s 2004 biennial review. The FCC stated it would conduct a case-by-case review of grandfathered LMAs and assess the appropriateness of extending the grandfathering periods. The FCC did not initiate any review of grandfathered LMAs in 2004 or as part of its subsequent quadrennial reviews. We do not know when, or if, the FCC will conduct any such review of grandfathered LMAs. Currently, all LMAs are grandfathered under the local television ownership rule because they were entered into prior to November 5, 1996. If the FCC were to eliminate the grandfathering of these LMAs, we would have to terminate or modify these LMAs. In February 2015, the FCC issued an order implementing certain statutorily required changes to its rules governing the duty to negotiate retransmission consent agreements in good faith. With these changes, a television broadcast station is prohibited from negotiating retransmission consent jointly with another television station in the same market unless the “stations are directly or indirectly under common de jure control permitted under the regulations of the Commission.” During a 2015 retransmission consent negotiation, a MVPD filed a complaint with the FCC accusing us of violating this rule. Although we reached agreement with the MVPD, the FCC initiated an investigation. In order to resolve the investigation and all other pending matters before the FCC's Media Bureau (including the grant of all outstanding renewals and dismissal or cancellation of all outstanding adversarial pleadings or forfeitures before the Media Bureau), the Company, on July 29, 2016, without any admission of liability, entered into a consent decree with the FCC pursuant to which the Company paid a settlement and agreed to be subject to ongoing compliance monitoring by the FCC for a period of 36 months . In September 2015, the FCC released a Notice of Proposed Rulemaking in response to a Congressional directive in STELAR to examine the “totality of the circumstances test” for good-faith negotiations of retransmission consent. The proposed rulemaking seeks comment on new factors and evidence to consider in its evaluation of claims of bad faith negotiation, including service interruptions prior to a “marquee sports or entertainment event,” restrictions on online access to broadcast programming during negotiation impasses, broadcasters’ ability to offer bundles of broadcast signals with other broadcast stations or cable networks, and broadcasters’ ability to invoke the FCC’s exclusivity rules during service interruptions. On July 14, 2016, the FCC’s Chairman at the time announced that the FCC would not, at that time, proceed to adopt additional rules governing good faith negotiations of retransmission consent. No formal action has yet been taken on this Proposed Rulemaking, and we cannot predict if the full Commission will agree to terminate the Rulemaking without action. In August 2016, the FCC completed both its 2010 and 2014 quadrennial reviews of its media ownership rules and issued an order (Ownership Order) which left most of the existing multiple ownership rules intact, but amended the rules to provide for the attribution of JSAs where two television stations are located in the same market, and a party with an attributable interest in one station sells more than 15% of the advertising time per week of the other station. JSAs existing as of March 31, 2014, were grandfathered until October 1, 2025, at which point they would have to be terminated, amended or otherwise come into compliance with the JSA attribution rule. On November 20, 2017, the FCC released an Ownership Order on Reconsideration that, among other things, eliminated the JSA attribution rule. The rule changes adopted in the Ownership Order on Reconsideration became effective on February 7, 2018. Petitions for Review of the Ownership Order on Reconsideration, including the elimination of the JSA attribution rule, are currently pending in a consolidated proceeding before the U.S. Court of Appeals for the Third Circuit. We cannot predict the outcome of this proceeding. If we are required to terminate or modify our LMAs or JSAs, our business could be adversely affected in several ways, including loss of revenues, increased costs, losses on investments, and termination penalties. On September 6, 2016, the FCC released the UHF Discount Order, eliminating the UHF discount. The UHF discount allowed television station owners to discount the coverage of UHF stations when calculating compliance with the FCC’s national ownership cap, which prohibits a single entity from owning television stations that reach, in total, more than 39% of all the television households in the nation. All but 34 of the stations we currently own and operate, or to which we provide programming services are UHF. On April 20, 2017, the FCC acted on a Petition for Reconsideration of the UHF Discount Order and adopted the UHF Discount Order on Reconsideration which reinstated the UHF discount, which became effective June 15, 2017 and is currently in effect. A Petition for Review of the UHF Discount Order on Reconsideration was filed in the U.S. Court of Appeals for the D.C. Circuit on May 12, 2017. The court dismissed the Petition for Review on July 25, 2018. On December 18, 2017, the Commission released a Notice of Proposed Rulemaking to examine the national audience reach cap, including the UHF discount. We cannot predict the outcome of the rulemaking proceeding. With the application of the UHF discount counting all our present stations we reach approximately 25% of U.S. households. Changes to the national ownership cap could limit our ability to make television station acquisitions. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2018 | |
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. 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 December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 ASSETS Current assets: Accounts receivable $ 28,276 $ 19,566 Other current assets 6,773 8,937 Total current asset 35,049 28,503 Program contract costs, less current portion 2,058 822 Property and equipment, net 5,346 6,215 Goodwill and indefinite-lived intangible assets 15,064 15,064 Definite-lived intangible assets, net 67,680 74,442 Other assets 2,374 5,601 Total assets $ 127,571 $ 130,647 LIABILITIES Current liabilities: Other current liabilities $ 18,298 $ 23,564 Notes payable, capital leases and commercial bank financing, less current portion 19,278 23,217 Program contracts payable, less current portion 8,474 11,213 Other long term liabilities 650 650 Total liabilities $ 46,700 $ 58,644 The amounts above represent the consolidated assets and liabilities of the VIEs described above, for which we are the primary beneficiary, and have been aggregated as they all relate to our broadcast business. The total capital lease liabilities, net of capital lease assets, which are excluded from the above, were $4.5 million , for both years ended December 31, 2018 and 2017 . Total liabilities associated with certain outsourcing agreements and purchase options with certain VIEs, which are excluded from above, were $124.5 million and $116.5 million as of December 31, 2018 and December 31, 2017 , respectively, as these amounts are eliminated in consolidation. The assets of each of these consolidated VIEs can only be used to settle the obligations of the VIE. As of December 31, 2018 , 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 7. 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 as of December 31, 2018 and 2017 was $71.3 million and $115.7 million , respectively, and are included in other assets in our consolidated balance sheets. See Note 6. Other Assets for more information related to our equity investments. Our maximum exposure is equal to the carrying value of our investments. The income and loss related to equity method investments and other equity investments are recorded in (loss) income from equity method investments and other income, net, respectively, in our consolidated statements of operations. We recorded losses of $45.1 million and $5.3 million for the years ended December 31, 2018 and 2017 , respectively, and income of $2.5 million for the year ended December 31, 2016 |
RELATED PERSON TRANSACTIONS
RELATED PERSON TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PERSON TRANSACTIONS | RELATED PERSON TRANSACTIONS: Transactions with our controlling shareholders David, Frederick, J. Duncan and Robert Smith (collectively, the controlling shareholders) are brothers and hold substantially all of the Class B Common Stock and some of our Class A Common Stock. We engaged in the following transactions with them and/or entities in which they have substantial interests: Leases. Certain assets used by us and our operating subsidiaries are leased from entities owned by the controlling shareholders. Lease payments made to these entities were $5.0 million for the year ended December 31, 2018 and $5.1 million for both the years ended December 31, 2017 and 2016 . Capital leases payable related to the aforementioned relationships were $12.5 million , net of $3.6 million interest, and $14.2 million , net of $4.9 million interest, as of December 31, 2018 and 2017 , respectively. The capital leases mature in periods through 2029. For further information on capital leases to affiliates, see Note 7. Notes Payable and Commercial Bank Financing . Charter Aircraft. We lease aircraft owned by certain controlling shareholders. For all leases, we incurred expenses of $1.7 million , $1.9 million , and $1.4 million for the years ended December 31, 2018 , 2017 , and 2016 , 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 12. Variable Interest Entities , for further discussion of the scope of services provided under these types of arrangements. As of December 31, 2018 , we have jointly, severally, unconditionally, and irrevocably guaranteed $50.3 million of Cunningham debt, of which $10.0 million , net of $0.7 million deferred financing costs, relates to the Cunningham VIEs that we consolidate, as discussed further below. The voting stock of the Cunningham Stations was owned by the estate of Carolyn C. Smith, the mother of our controlling shareholders, until January 2018, when the voting stock was purchased by an unrelated party after receiving FCC approval. 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, as discussed further below. The services provided to WNUV-TV, WMYA-TV, WTTE-TV, WRGT-TV and WVAH-TV are governed by a master agreement which has a current term that expires on July 1, 2023 and 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 $47.4 million and $44.0 million as of December 31, 2018 and 2017 , respectively. The remaining aggregate purchase price of these stations, net of prepayments, as of both December 31, 2018 and 2017 was approximately $53.6 million . Additionally, we provide services to WDBB-TV pursuant to an LMA, which expires April 22, 2025 , and a purchase option to acquire for $0.2 million . We paid Cunningham, under these agreements, $10.0 million , $9.1 million , and $8.9 million for the years ended December 31, 2018 , 2017 , and 2016 , 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. Cunningham assumed the joint sales agreement under which we provide services to WEMT-TV, WYDO-TV, and KBVU-TV/KCVU-TV in September 2017 with the acquisition of the membership interest of Esteem Broadcasting LLC in connection with our acquisition of Bonten Media Group, as discussed in Note 2. Acquisitions and Dispositions of Assets . As we consolidate the licensees as VIEs, the amounts we earn or pay under the arrangements are eliminated in consolidation and the gross revenues of the stations are reported on our consolidated statement of operations. Our consolidated revenues include $171.0 million , $124.8 million , and $114.9 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively, related to the Cunningham Stations. In December 2017, Cunningham repaid, in its entirety, a January 2016 promissory note to borrow $19.5 million from us which was included within notes receivable from affiliates on our consolidated balance sheet as of December 31, 2016. Interest income from the note receivable was $1.0 million for both years ended December 31, 2017 and 2016. 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 April 2019. Under the agreement, Cunningham paid us an initial fee of $0.7 million and pays us $0.2 million annually for master control services plus the cost to maintain and repair the equipment. 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 $0.2 million for the year ended December 31, 2018 and $0.6 million for the years ended December 31, 2017 and 2016 . 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 $0.7 million , $0.6 million , and $1.0 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. Other transactions with equity method investees In 2018, 120 Sports Holding, LLC (120 Sports), an equity method investee, entered into a convertible promissory note to borrow $3.75 million from us, maturing on July 30, 2021. The note bears interest at a fixed rate of 6.0% |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table reconciles income (numerator) and shares (denominator) used in our computations of earnings per share for the years ended December 31, 2018 , 2017 , and 2016 (in thousands): 2018 2017 2016 Income (Numerator) Net income $ 345,998 $ 594,104 $ 250,762 Net income attributable to noncontrolling interests (4,757 ) (18,091 ) (5,461 ) Numerator for diluted earnings available to common shareholders $ 341,241 $ 576,013 $ 245,301 Shares (Denominator) Weighted-average common shares outstanding 100,913 99,844 93,567 Dilutive effect of outstanding stock settled appreciation rights and stock options 805 945 866 Weighted-average common and common equivalent shares outstanding 101,718 100,789 94,433 The net earnings per share amounts are the same for Class A and Class B Common Stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. 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. 2018 2017 2016 Weighted-average stock-settled appreciation rights and outstanding stock options excluded 1,325 450 556 |
SEGMENT DATA
SEGMENT DATA | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA: We measure segment performance based on operating income (loss). Our broadcast segment, includes stations in 89 markets located throughout the continental United States. Other primarily consists of owned networks and content, digital and internet solutions, technical services and other non-media investments. All of our businesses included in Other are located within the United States. Corporate costs primarily include our costs to operate as a public company and to operate our corporate headquarters location. Other and Corporate are not reportable segments but are included for reconciliation purposes. We had approximately $155.8 million and $159.8 million of intercompany loans between broadcast, other and corporate as of December 31, 2018 and 2017 , respectively. We had $15.3 million , $18.5 million , and $24.4 million in intercompany interest expense related to intercompany loans between broadcast, other, and corporate for the years ended December 31, 2018 , 2017 and 2016 , respectively. All other intercompany transactions are immaterial. Financial information for our reportable segment is included in the following tables for the years ended December 31, 2018 , 2017 , and 2016 (in thousands): For the year ended December 31, 2018 Broadcast Other Corporate Consolidated Revenue $ 2,714,663 $ 340,418 $ — $ 3,055,081 Depreciation of property and equipment 97,703 7,461 76 105,240 Amortization of definite-lived intangible assets and other assets 153,720 21,128 — 174,848 Amortization of program contract costs and net realizable value adjustments 100,899 — — 100,899 General and administrative overhead expenses 100,241 913 9,916 111,070 (Gain) loss on asset dispositions and other, net of impairment (99,977 ) (d) 60,032 (c) (118 ) (40,063 ) Operating income (loss) 751,341 (d) (81,805 ) (c) (9,875 ) 659,661 Interest expense 5,734 803 285,439 291,976 Loss from equity method investments — (60,831 ) — (60,831 ) Goodwill 2,054,779 69,123 — 2,123,902 Assets 4,797,420 720,704 1,053,968 6,572,092 Capital expenditures 94,812 5,155 5,094 105,061 For the year ended December 31, 2017 Broadcast Other Corporate Consolidated Revenue (a) $ 2,393,641 $ 242,574 $ — $ 2,636,215 Depreciation of property and equipment 88,751 7,368 984 97,103 Amortization of definite-lived intangible assets and other assets 155,640 23,182 — 178,822 Amortization of program contract costs and net realizable value adjustments 115,523 — — 115,523 General and administrative overhead expenses 101,680 1,009 10,564 113,253 (Gain) loss on asset dispositions and other, net of impairment (225,770 ) (53,102 ) (b) — (278,872 ) Operating income (loss) 724,110 24,943 (b) (11,547 ) 737,506 Interest expense 5,285 1,835 205,195 212,315 Loss from equity method investments — (14,307 ) — (14,307 ) Goodwill 2,053,410 70,623 — 2,124,033 Assets 5,267,986 769,919 746,565 6,784,470 Capital expenditures 63,163 5,546 15,103 83,812 For the year ended December 31, 2016 Broadcast Other Corporate Consolidated Revenue (a) $ 2,416,985 $ 205,525 $ — $ 2,622,510 Depreciation of property and equipment 91,573 5,772 1,184 98,529 Amortization of definite-lived intangible assets and other assets 155,479 28,316 — 183,795 Amortization of program contract costs and net realizable value adjustments 127,880 — — 127,880 General and administrative overhead expenses 67,035 2,459 4,062 73,556 (Gain) loss on asset dispositions and other, net of impairment (4,647 ) (1,427 ) 45 (6,029 ) Operating income (loss) 639,422 (31,258 ) (5,311 ) 602,853 Interest expense 5,641 6,371 199,131 211,143 Income from equity method investments — 906 — 906 (a) Revenue has been adjusted for the adoption of ASC 606. See Note 1. Nature of Operations and Summary of Significant Accounting Policies (b) Includes a gain on the sale of Alarm of $53.0 million , of which $12.3 million was attributable to noncontrolling interests. (c) Includes a $59.6 million impairment to the carrying value of a consolidated real estate venture. See Note 1. Nature of Operations and Summary of Significant Accounting Policies . (d) Includes a gain of $83.3 million related to the auction proceeds. See Note 2. Acquisitions and Dispositions of Assets |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS: Accounting guidance provides for valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). A fair value hierarchy using three broad levels prioritizes the inputs to valuation techniques used to measure fair value. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. The following table sets forth the face value and fair value of our notes and debentures as of December 31, 2018 and 2017 (in thousands): 2018 2017 Face Value (a) Fair Value Face Value (a) Fair Value Level 2: 6.125% Senior Unsecured Notes due 2022 $ 500,000 $ 503,750 $ 500,000 $ 515,535 5.875% Senior Unsecured Notes due 2026 350,000 326,375 350,000 363,475 5.625% Senior Unsecured Notes due 2024 550,000 515,625 550,000 568,205 5.375% Senior Unsecured Notes due 2021 600,000 598,500 600,000 610,440 5.125% Senior Unsecured Notes due 2027 400,000 353,000 400,000 396,088 Term Loan A-1 (b) — — 117,370 117,370 Term Loan A-2 95,892 92,057 113,327 113,327 Term Loan B 1,342,600 1,275,470 1,356,300 1,357,995 Debt of variable interest entities 25,281 25,281 29,614 29,614 Debt of non-media subsidiaries 19,577 19,577 25,238 25,238 (a) Amounts are carried on our consolidated balance sheets net of debt discount and deferred financing costs, which are excluded in the above table, of $33.0 million and $39.0 million as of December 31, 2018 and 2017 , respectively. (b) |
CONDENSED CONSOLIDATED FINANCIA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: Sinclair Television Group, Inc. (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, the 5.625% Notes, 6.125% Notes, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. Our Class A Common Stock and Class B Common Stock as of December 31, 2018 , were obligations or securities of SBG and not obligations or securities of STG. SBG is a guarantor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, 5.875% Notes, 5.125% Notes, and until they were redeemed, the 6.375% Notes. As of December 31, 2018 , our consolidated total debt of $3,892.5 million included $3,843.5 million of debt related to STG and its subsidiaries of which SBG guaranteed $3,831.0 million . SBG, KDSM, LLC, a wholly-owned subsidiary of SBG, and STG’s wholly-owned subsidiaries (guarantor subsidiaries), have fully and unconditionally guaranteed, subject to certain customary automatic release provisions, all of STG’s obligations. Those guarantees are joint and several. There are certain contractual restrictions on the ability of SBG, STG or KDSM, LLC to obtain funds from their subsidiaries in the form of dividends or loans. The following condensed consolidating financial statements present the consolidated balance sheets, consolidated statements of operations and comprehensive income, and consolidated statements of cash flows of SBG, 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. AS OF DECEMBER 31, 2018 (In thousands) Sinclair Broadcast Group, Inc. Sinclair Television Group, Inc. Guarantor Subsidiaries and KDSM, LLC Non- Guarantor Subsidiaries Eliminations Sinclair Consolidated Cash and cash equivalents $ — $ 961,963 $ 19,648 $ 78,719 $ — $ 1,060,330 Accounts and other receivables — — 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 ) — Other long-term assets 31,002 851,170 119,187 165,064 (970,375 ) 196,048 Goodwill — — 2,120,035 3,867 — 2,123,902 Indefinite-lived intangible assets — — 143,924 14,298 — 158,222 Definite-lived intangible assets — — 1,608,748 70,409 (52,277 ) 1,626,880 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 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 $ 1,639,225 $ 5,504,717 $ 5,243,130 $ 507,791 $ (6,322,771 ) $ 6,572,092 CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2017 (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash and cash equivalents $ — $ 645,830 $ 12,273 $ 23,223 $ — $ 681,326 Restricted Cash — — 311,110 2,000 — 313,110 Accounts and other receivables — — 530,273 36,191 — 566,464 Other current assets 3,034 5,758 145,637 9,687 (10,269 ) 153,847 Total current assets 3,034 651,588 999,293 71,101 (10,269 ) 1,714,747 Property and equipment, net 829 31,111 586,950 132,010 (12,602 ) 738,298 Investment in consolidated subsidiaries 1,537,337 4,116,241 4,179 — (5,657,757 ) — Other long-term assets 31,757 770,312 104,363 208,367 (868,448 ) 246,351 Goodwill — — 2,120,166 3,867 — 2,124,033 Indefinite-lived intangible assets — — 145,073 14,298 — 159,371 Definite-lived intangible assets — — 1,781,045 77,944 (57,319 ) 1,801,670 Total assets $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 Accounts payable and accrued liabilities $ 1,100 $ 84,326 $ 261,266 $ 36,029 $ (12,318 ) $ 370,403 Current portion of long-term debt — 148,505 3,445 9,645 (546 ) 161,049 Other current liabilities — — 180,616 14,281 — 194,897 Total current liabilities 1,100 232,831 445,327 59,955 (12,864 ) 726,349 Long-term debt — 3,799,987 39,730 381,127 (333,243 ) 3,887,601 Other liabilities 3,119 38,282 1,141,266 187,569 (734,082 ) 636,154 Total liabilities 4,219 4,071,100 1,626,323 628,651 (1,080,189 ) 5,250,104 Total Sinclair Broadcast Group equity 1,568,738 1,498,152 4,114,746 (82,051 ) (5,530,847 ) 1,568,738 Noncontrolling interests in consolidated subsidiaries — — — (39,013 ) 4,641 (34,372 ) Total liabilities and equity $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 FOR THE YEAR ENDED DECEMBER 31, 2017 (In thousands) Sinclair Broadcast Group, Inc. Sinclair Television Group, Inc. Guarantor Subsidiaries and KDSM, LLC Non- Guarantor Subsidiaries Eliminations Sinclair Consolidated Net revenue (a) $ — $ — $ 2,507,183 $ 209,914 $ (80,882 ) $ 2,636,215 Media production expenses — — 1,013,035 124,044 (72,935 ) 1,064,144 Selling, general and administrative 9,204 102,930 522,039 14,800 (2,183 ) 646,790 Depreciation, amortization and other operating expenses 984 6,250 131,880 51,461 (2,800 ) 187,775 Total operating expenses 10,188 109,180 1,666,954 190,305 (77,918 ) 1,898,709 Operating (loss) income (10,188 ) (109,180 ) 840,229 19,609 (2,964 ) 737,506 Equity in earnings of consolidated subsidiaries 579,954 793,620 (16 ) — (1,373,558 ) — Interest expense (88 ) (205,107 ) (4,586 ) (21,643 ) 19,109 (212,315 ) Other income (expense) 1,678 5,077 (5,790 ) (7,412 ) — (6,447 ) Total other income (expense) 581,544 593,590 (10,392 ) (29,055 ) (1,354,449 ) (218,762 ) Income tax benefit (provision) 4,657 100,473 (30,171 ) 401 — 75,360 Net income (loss) 576,013 584,883 799,666 (9,045 ) (1,357,413 ) 594,104 Net income attributable to the noncontrolling interests — — — (17,738 ) (353 ) (18,091 ) Net income (loss) attributable to Sinclair Broadcast Group $ 576,013 $ 584,883 $ 799,666 $ (26,783 ) $ (1,357,766 ) $ 576,013 Comprehensive income (loss) $ 593,488 $ 584,267 $ 799,666 $ (9,045 ) $ (1,374,888 ) $ 593,488 (a) See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies for a discussion of the adoption of the new accounting principles for revenue recognition. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2016 (In thousands) Sinclair Broadcast Group, Inc. Sinclair Television Group, Inc. Guarantor Subsidiaries and KDSM, LLC Non- Guarantor Subsidiaries Eliminations Sinclair Consolidated Net revenue (a) $ — $ — $ 2,476,669 $ 254,031 $ (108,190 ) $ 2,622,510 Media production expenses — — 920,715 135,511 (100,622 ) 955,604 Selling, general and administrative 4,062 70,503 489,882 10,804 (106 ) 575,145 Depreciation, amortization and other operating expenses 1,064 7,331 360,550 121,986 (2,023 ) 488,908 Total operating expenses 5,126 77,834 1,771,147 268,301 (102,751 ) 2,019,657 Operating (loss) income (5,126 ) (77,834 ) 705,522 (14,270 ) (5,439 ) 602,853 Equity in earnings of consolidated subsidiaries 244,580 463,598 220 — (708,398 ) — Interest expense (238 ) (198,893 ) (4,481 ) (32,521 ) 24,990 (211,143 ) Other income (expense) 3,613 (22,867 ) 715 (281 ) — (18,820 ) Total other income (expense) 247,955 241,838 (3,546 ) (32,802 ) (683,408 ) (229,963 ) Income tax benefit (provision) 2,472 99,148 (231,504 ) 7,756 — (122,128 ) Net income (loss) 245,301 263,152 470,472 (39,316 ) (688,847 ) 250,762 Net income attributable to the noncontrolling interests — — — (4,937 ) (524 ) (5,461 ) Net income (loss) attributable to Sinclair Broadcast Group $ 245,301 $ 263,152 $ 470,472 $ (44,253 ) $ (689,371 ) $ 245,301 Comprehensive income (loss) $ 250,789 $ 263,179 $ 470,472 $ (39,316 ) $ (694,335 ) $ 250,789 (a) See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies FOR THE YEAR ENDED DECEMBER 31, 2018 (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES $ (8,542 ) $ (252,615 ) $ 936,385 $ (40,533 ) $ 12,723 647,418 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment (1 ) (6,592 ) (98,201 ) (3,914 ) 3,647 (105,061 ) Proceeds from sale of assets — — 1,616 — — 1,616 Investments in equity investees (2,587 ) (1,975 ) (27,960 ) (3,283 ) — (35,805 ) Distributions from equity method investees 4,728 — — 18,106 — 22,834 Other, net 1,670 (12,091 ) 8,626 — — (1,795 ) Net cash flows from (used in) investing activities 3,810 (20,658 ) (115,919 ) 10,909 3,647 (118,211 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable, commercial bank financing and capital leases — — — 4,317 — 4,317 Repayments of notes payable, commercial bank financing and capital leases — (148,505 ) (3,554 ) (15,120 ) 394 (166,785 ) Dividends paid on Class A and Class B Common Stock (74,566 ) — — — — (74,566 ) Repurchase of outstanding Class A Common Stock (220,889 ) — — — — (220,889 ) Payments for deferred financing cost — — — (922 ) — (922 ) Distributions to noncontrolling interests — — — (8,901 ) — (8,901 ) Increase (decrease) in intercompany payables 297,256 737,911 (1,117,417 ) 100,440 (18,190 ) — Other, net 2,931 — (3,230 ) 1,802 1,426 2,929 Net cash flows from (used in) financing activities 4,732 589,406 (1,124,201 ) 81,616 (16,370 ) (464,817 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 316,133 (303,735 ) 51,992 — 64,390 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 $ — $ 961,963 $ 19,648 $ 78,719 $ — $ 1,060,330 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2017 (a) (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES $ (8,659 ) $ (180,966 ) $ 600,070 $ 12,424 $ 8,544 $ 431,413 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment (130 ) (14,973 ) (68,475 ) (2,930 ) 2,696 (83,812 ) Acquisition of businesses, net of cash acquired — (8,308 ) (262,965 ) — — (271,273 ) Purchase of alarm monitoring contracts — — — (5,682 ) — (5,682 ) Proceeds from sale of assets — — 568 194,641 — 195,209 Investments in equity investees (946 ) (720 ) (20,701 ) (32,762 ) — (55,129 ) Distributions from equity method investees 5,857 — — 6,321 — 12,178 Spectrum auction proceeds — — 310,802 — — 310,802 Other, net 740 11,551 — — — 12,291 Net cash flows from (used in) investing activities 5,521 (12,450 ) (40,771 ) 159,588 2,696 114,584 CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable, commercial bank financing and capital leases — 159,669 — 7,128 — 166,797 Repayments of notes payable, commercial bank financing and capital leases (1,858 ) (213,919 ) (3,381 ) (121,270 ) 320 (340,108 ) Proceeds from sale of Class A Common Stock 487,883 — — — — 487,883 Dividends paid on Class A and Class B Common Stock (71,364 ) — — — — (71,364 ) Repurchase of outstanding Class A Common Stock (30,287 ) — — — — (30,287 ) Payments for deferred financing costs — (425 ) — (306 ) — (731 ) Distributions to noncontrolling interests — — — (22,416 ) — (22,416 ) Increase (decrease) in intercompany payables (381,344 ) 660,911 (242,402 ) (25,605 ) (11,560 ) — Other, net 108 713 (1,008 ) 172 — (15 ) Net cash flows from (used in) financing activities 3,138 606,949 (246,791 ) (162,297 ) (11,240 ) 189,759 NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 413,533 312,508 9,715 — 735,756 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 232,297 10,875 17,012 — 260,184 CASH, CASH EQUIVALENTS, AND RESTRICTD CASH, end of period $ — $ 645,830 $ 323,383 $ 26,727 $ — $ 995,940 (a) See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies for a discussion of the adoption of new accounting principles related to the classification of certain cash receipts and cash payments. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 (a) (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES $ (11,784 ) $ (130,406 ) $ 721,991 $ 7,914 $ 23,875 $ 611,590 CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: Acquisition of property and equipment — (8,006 ) (82,450 ) (5,009 ) 1,000 (94,465 ) Acquisition of businesses, net of cash acquired — — (415,282 ) (10,375 ) — (425,657 ) Purchase of alarm monitoring contracts — — — (40,206 ) — (40,206 ) Proceeds from sale of assets — — 8,069 9,133 — 17,202 Investments in equity investees (2,945 ) (15,620 ) (27 ) (32,655 ) — (51,247 ) Other, net 1,714 (25,120 ) 3,179 5,072 — (15,155 ) Net cash flows (used in) from investing activities (1,231 ) (48,746 ) (486,511 ) (74,040 ) 1,000 (609,528 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable, commercial bank financing and capital leases — 995,000 — 29,912 — 1,024,912 Repayments of notes payable, commercial bank financing and capital leases (1,651 ) (650,422 ) (3,007 ) (19,612 ) 253 (674,439 ) Dividends paid on Class A and Class B Common Stock (65,909 ) — — — — (65,909 ) Repurchases of outstanding Class A Common Stock (136,283 ) — — — — (136,283 ) Payments for deferred financing costs — (35,254 ) — (251 ) — (35,505 ) Distributions to noncontrolling interests — — — (10,464 ) — (10,464 ) Increase (decrease) in intercompany payables 218,054 (17,778 ) (224,551 ) 49,403 (25,128 ) — Other, net (1,196 ) 407 2,718 184 — 2,113 Net cash flows from (used in) financing activities 13,015 291,953 (224,840 ) 49,172 (24,875 ) 104,425 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 112,801 10,640 (16,954 ) — 106,487 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 119,496 235 33,966 — 153,697 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 232,297 $ 10,875 $ 17,012 $ — $ 260,184 (a) See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED): (In thousands, except per share data) For the Quarter Ended 3/31/2018 6/30/2018 9/30/2018 12/31/2018 Total revenues, net $ 665,352 $ 730,143 $ 766,261 $ 893,325 Operating income $ 107,314 $ 131,583 $ 157,810 $ 262,954 Net income $ 43,994 $ 29,310 $ 65,000 $ 207,694 Net income attributable to Sinclair Broadcast Group $ 43,123 $ 28,042 $ 63,875 $ 206,201 Basic earnings per common share $ 0.42 $ 0.27 $ 0.63 $ 2.12 Diluted earnings per common share $ 0.42 $ 0.27 $ 0.62 $ 2.10 For the Quarter Ended 3/31/2017 6/30/2017 9/30/2017 12/31/2017 (a) Total revenues, net (b) $ 626,936 $ 652,235 $ 644,532 $ 712,512 Operating income $ 157,629 $ 118,849 $ 103,447 $ 357,581 Net income $ 70,703 $ 46,035 $ 32,566 $ 444,800 Net income attributable to Sinclair Broadcast Group $ 57,202 $ 44,645 $ 30,637 $ 443,529 Basic earnings per common share $ 0.62 $ 0.43 $ 0.30 $ 4.36 Diluted earnings per common share $ 0.61 $ 0.43 $ 0.30 $ 4.32 (a) During the three months ended December 31, 2017, we recognized a gain of $225.3 million for vacating spectrum in certain markets as discussed in Broadcast Incentive Auction under Note 2. Acquisitions and Dispositions of Assets ; and a non-recurring benefit of $272.1 million to reflect the estimated effect of the Tax Reform as discussed in Note 10. Income Taxes . (b) See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Sinclair Broadcast Group, Inc. is a diversified television broadcasting company with national reach and a strong focus on using our spectrum to bring together content providers, advertisers, and consumers on various 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. We focus on offering marketing solutions to advertisers through our television and digital platforms and digital agency services. 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 December 31, 2018 , our broadcast distribution platform is a single reportable segment for accounting purposes. It consists primarily of our broadcast television stations, which we own, provide programming and operating services pursuant to agreements commonly referred to as local marketing agreements (LMAs), or provide sales services and other non-programming operating services pursuant to other outsourcing agreements (such as joint sales agreements (JSAs) and shared services agreements (SSAs)) to 191 stations in 89 markets. These stations broadcast 605 channels as of December 31, 2018 . For the purpose of this report, these 191 stations and 605 |
Principles of Consolidation | Principles of Consolidation |
Variable Interest Entities | Other VIEs 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 |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance on revenue recognition for revenue from contracts with customers, Accounting Standards Codification Topic 606 (ASC 606). This guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and replaced most existing revenue recognition guidance when it became effective. The standard permits the use of either the retrospective or cumulative effect transition method. Since Accounting Standards Update (ASU) 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. We adopted this guidance retrospectively during the first quarter of 2018. The impact of the adoption did not have a material impact on our station advertising or distribution revenue. Under the new standard, certain barter revenue and expense related to syndicated programming is no longer recognized. See Revenue Recognition below for more information on the adoption. In January 2016, the FASB issued new guidance which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new guidance requires entities to measure equity investments (except those accounted for under the equity method of accounting or those that resulted in consolidation of the investee) at fair value, with changes in fair value recognized in net income. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our financial statements. Upon adoption of this guidance, we recorded a cumulative effect adjustment to retained earnings of $2.1 million within our consolidated statement of equity. See Note 6. Other Assets for more information on our equity investments. In February 2016, the FASB issued new guidance related to accounting for leases, which requires the assets and liabilities that arise from leases to be recognized on the balance sheet. Currently, only capital leases are recorded on the balance sheet. This update will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election, by class of underlying asset, not to recognize lease assets and liabilities and recognize the lease expense for such leases, generally on a straight-line basis over the lease term. The new standard is effective for interim and annual reporting periods beginning after December 15, 2018. We adopted the optional transition method as well as the package of practical expedients on January 1, 2019. The adoption of this standard is expected to result in an increase of total assets and total liabilities on our consolidated balance sheets of less than 5% . We do not expect a material impact on our consolidated statements of operations. In August 2016, the FASB issued new guidance related to the classification of certain cash receipts and cash payments. The new standard includes eight specific cash flow issues with the objective of reducing the existing diversity in practice as to how cash receipts and cash payments are represented in the statement of cash flows. In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows. This new guidance requires that the statement of cash flows explain changes during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance retrospectively during the first quarter of 2018. The following table presents the effects of adoption on our consolidated financial statements for the comparative periods presented (in thousands): For the years ended December 31, 2017 December 31, 2016 As Reported Adjustment (a) As Adjusted As Reported Adjustment (b) As Adjusted Net cash flows from operating activities $ 431,104 $ 309 $ 431,413 $ 591,766 $ 19,824 $ 611,590 Net cash flow from (used in) investing activities (198,025 ) 312,609 114,584 (606,003 ) (3,525 ) (609,528 ) Net cash flow from financing activities 188,263 1,496 189,759 124,249 (19,824 ) 104,425 (a) Adjustment primarily relates to restricted cash received as discussed under Broadcast Incentive Auction under 2018 Dispositions within Note 2. Acquisitions and Dispositions of Assets . (b) Adjustment primarily relates to the $19.8 million prepayment penalty related to the redemption of our 6.375 Senior Unsecured Notes in August 2016. In January 2017, the FASB issued guidance which clarifies the definition of a business with additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard should be applied prospectively and is effective for interim and annual reporting periods beginning after December 15, 2017. We adopted this guidance during the first quarter of 2018. The impact of the adoption did not have a material impact on our consolidated financial statements. In 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable | Accounts Receivable |
Programming | Programming We have agreements with distributors for the rights to television programming over contract periods, which generally run from one to seven years . Contract payments are made in installments over terms that are generally equal to or shorter than the contract period. Pursuant to accounting guidance for the broadcasting industry, an asset and a liability for the rights acquired and obligations incurred under a license agreement are reported on the balance sheet where the cost of each program is known or reasonably determinable, the program material has been accepted by the licensee in accordance with the conditions of the license agreement, and the program is available for its first showing or telecast. The portion of program contracts which becomes payable within one year is reflected as a current liability in the accompanying consolidated balance sheets. The rights to this programming are reflected in the accompanying consolidated balance sheets at the lower of unamortized cost or estimated net realizable value. With the exception of one and two -year contracts, amortization of program contract costs is computed using an accelerated method. Program contract costs are amortized on a straight-line basis for one and two -year contracts. Program contract costs estimated by management to be amortized in the succeeding year are classified as current assets. Payments of program contract liabilities are typically made on a scheduled basis and are not affected by adjustments for amortization or estimated net realizable value. |
Impairment of Goodwill, Intangibles and Other Long-Lived Assets | Impairment of Goodwill, Intangibles, and Other Assets We evaluate our goodwill and indefinite lived intangible assets for impairment annually in the fourth quarter or more frequently, if events or changes in circumstances indicate that an impairment may exist. Our goodwill has been allocated to, and is tested for impairment at, the reporting unit level. A reporting unit is an operating segment or a component of an operating segment to the extent that the component constitutes a business for which discrete financial information is available and regularly reviewed by segment management. Components of an operating segment with similar economic characteristics are aggregated when testing goodwill for impairment. In the performance of our annual assessment of goodwill for impairment we have the option to qualitatively assess whether it is more likely than not that a reporting unit has been impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the reporting units as well as industry, regulatory, and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. We also consider the significance of the excess fair value over carrying value in prior quantitative assessments. If we conclude that it is more likely than not that a reporting unit is impaired, or if we elect not to perform the optional qualitative assessment, we will determine the fair value of the reporting unit and compare it to the net book value of the reporting unit. If the fair value is less than the net book value we will record an impairment to goodwill for the amount of the difference. We estimate the fair value of our reporting units utilizing a combination of a market based approach, which considers earnings and cash flow multiples of comparable businesses and recent market transactions, as well as an income approach involving the performance of a discounted cash flow analysis. Our discounted cash flow model is based on our judgment of future market conditions based on our internal forecast of future performance, as well as discount rates that are based on a number of factors including market interest rates, a weighted average cost of capital analysis, and includes adjustments for market risk and company specific risk. Our indefinite-lived intangible assets consist primarily of our broadcast licenses and a trade name. For our annual impairment test for indefinite-lived intangible assets we have the option to perform a qualitative assessment to determine whether it is more likely than not that these assets are impaired. As part of this qualitative assessment we weigh the relative impact of factors that are specific to the indefinite-lived intangible assets as well as industry, regulatory, and macroeconomic factors that could affect the significant inputs used to determine the fair value of the assets. We also consider the significance of the excess fair value over carrying value in prior quantitative assessments. When evaluating our broadcast licenses for impairment, the qualitative assessment is done at the market level because the broadcast licenses within the market are complementary and together enhance the single broadcast license of each station. If we conclude that it is more likely than not that one of our broadcast licenses is impaired, we will perform a quantitative assessment by comparing the aggregate fair value of the broadcast licenses in the market to the respective carrying values. We estimate the fair values of our broadcast licenses using the Greenfield method, which is an income approach. This method involves a discounted cash flow model that incorporates several variables, including, but not limited to, market revenues and long term growth projections, estimated market share for the typical participant without a network affiliation, and estimated profit margins based on market size and station type. The model also assumes outlays for capital expenditures, future terminal values, an effective tax rate assumption and a discount rate based on a number of factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure for a television station, and includes adjustments for market risk and company specific risk. If the carrying amount of the broadcast licenses exceeds the fair value, then an impairment loss is recorded to the extent that the carrying value of the broadcast licenses exceeds the fair value. We periodically evaluate our long-lived assets for impairment and continue to evaluate them as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. We evaluate the recoverability of long-lived assets by measuring the carrying amount of the assets against the estimated undiscounted future cash flows associated with them. At the time that such evaluations indicate that the future undiscounted cash flows of certain long-lived assets are not sufficient to recover the carrying value of such assets, the assets are tested for impairment by comparing their estimated fair value to the carrying value. We typically estimate fair value using discounted cash flow models and appraisals. See Note 5. Goodwill, Indefinite-Lived Intangible Assets and Other Intangible Assets for more information. |
Accrued Liabilities | We expense these activities when incurred and recognize deferred revenue when earned. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities. 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. As of December 31, 2018 and 2017 , a valuation allowance has been provided for deferred tax assets related to a substantial amount of our available state net operating loss carryforwards based on past operating results, expected timing of the reversals of existing temporary book/tax basis differences, alternative tax strategies and projected future taxable income. Future changes in operating and/or taxable income or other changes in facts and circumstances could significantly impact the ability to realize our deferred tax assets which could have a material effect on our consolidated financial statements. Management periodically performs a comprehensive review of our tax positions and we record a liability for unrecognized tax benefits when such tax positions do not meet the “more-likely-than-not” threshold. Significant judgment is required in determining whether a tax position meets the “more-likely-than-not” threshold, and it is based on a variety of facts and circumstances, including interpretation of the relevant federal and state income tax codes, regulations, case law and other authoritative pronouncements. Based on this analysis, the status of ongoing audits and the expiration of applicable statute of limitations, liabilities are adjusted as necessary. The resolution of audits is unpredictable and could result in tax liabilities that are significantly higher or lower than for what we have provided. See Note 10. Income Taxes , for further discussion of accrued unrecognized tax benefits. The Company recognized the estimated income tax effects of the Tax Cut and Jobs Act in the 2017 financial statements in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes, in the reporting period in which the Tax Act was enacted. As of December 31, 2018, the Company has completed its accounting for the tax effects of enactment of the Tax Act. The Company has recognized a benefit of $4.3 million from adjustments to the provisional amounts recorded at December 31, 2017 related to the revaluation of deferred balances resulting from the reduction of the corporate income tax rate from 35% to 21%. This adjustment has been recorded as a component of income tax expense from continuing operations |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted ASC 606 using the retrospective adoption method. The following table presents the effects of adoption on our consolidated financial statements for the comparative periods presented (in thousands): For the years ended December 31, 2017 December 31, 2016 As Reported Adoption of ASC 606 As Adjusted As Reported Adoption of ASC 606 As Adjusted Revenues realized from station barter arrangements (a) $ 120,963 $ (97,903 ) $ 23,060 $ 135,566 $ (114,439 ) $ 21,127 Expenses realized from barter arrangements (b) $ 98,973 $ (97,903 ) $ 1,070 $ 116,954 $ (114,439 ) $ 2,515 Operating income $ 737,506 $ — $ 737,506 $ 602,853 $ — $ 602,853 Net income $ 576,013 $ — $ 576,013 $ 245,301 $ — $ 245,301 Basic EPS $ 5.77 $ — $ 5.77 $ 2.62 $ — $ 2.62 Diluted EPS $ 5.72 $ — $ 5.72 $ 2.60 $ — $ 2.60 (a) The remaining balance in the "as adjusted" column relates to trade revenue, which was unaffected by the adoption and has been reclassified to media revenue. (b) The remaining balance in the "as adjusted" column relates to trade expense, which was unaffected by the adoption and has been reclassified to media production expense. The following table presents our revenue disaggregated by type and segment (in thousands): For the year ended December 31, 2018 Broadcast Other Total Advertising revenue $ 1,484,188 $ 75,539 $ 1,559,727 Distribution revenue 1,185,800 112,827 1,298,627 Other media and non-media revenues 44,675 152,052 196,727 Total revenues $ 2,714,663 $ 340,418 $ 3,055,081 For the year ended December 31, 2017 Broadcast Other Total Advertising revenue $ 1,314,999 $ 54,402 $ 1,369,401 Distribution revenue 1,032,838 107,012 1,139,850 Other media and non-media revenues 45,804 81,160 126,964 Total revenues $ 2,393,641 $ 242,574 $ 2,636,215 For the year ended December 31, 2016 Broadcast Other Total Advertising revenue $ 1,480,157 $ 28,176 $ 1,508,333 Distribution revenue 890,554 65,382 955,936 Other media and non-media revenues 46,274 111,967 158,241 Total revenues $ 2,416,985 $ 205,525 $ 2,622,510 Advertising Revenue. We generate advertising revenue primarily from the sale of advertising spots/impressions on our broadcast television and digital platforms. Advertising revenue is recognized in the period in which the advertising spots/impressions are delivered. In arrangements where we provide audience ratings guarantees, to the extent that there is a ratings shortfall, we will defer a proportionate amount of revenue until the ratings shortfall is settled through the delivery of additional advertising. The term of our advertising arrangements is generally less than one year and the timing between when an advertisement is aired and when payment is due is not significant. In certain circumstances, we require customers to pay in advance; payments received in advance of satisfying our performance obligations are reflected as deferred revenue. Distribution Revenue. We generate distribution revenue through fees received from MVPDs, vMVPDs, and OTT providers for the right to distribute our broadcast channels and cable networks on their distribution platforms. Distribution arrangements are generally governed by multi-year contracts and the underlying fees are based upon a contractual monthly rate per subscriber. These arrangements represent licenses of intellectual property; revenue is recognized as the signal is provided to our customers (as usage occurs) which corresponds with the satisfaction of our performance obligation. Revenue is calculated based upon the contractual rate multiplied by an estimated number of subscribers. Our customers will remit payments based upon actual subscribers a short time after the conclusion of a month, which generally does not exceed 90 days. Historical adjustments to subscriber estimates have not been material. Practical Expedients and Exemptions. We expense sales commissions when incurred because the period of benefit for these costs is one year or less. These costs are recorded within media selling, general and administrative expenses. In accordance with ASC 606, we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) distribution arrangements which are accounted for as a sales/usage based royalty. Arrangements with Multiple Performance Obligations. Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price, which is generally based on the prices charged to customers. Deferred Revenues. |
Advertising Expenses | Advertising Expenses |
Financial Instruments | Financial Instruments Financial instruments, as of December 31, 2018 and 2017 |
Post-retirement Benefits | Post-retirement Benefits |
Reclassifications | Reclassifications |
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: |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | The following table presents the effects of adoption on our consolidated financial statements for the comparative periods presented (in thousands): For the years ended December 31, 2017 December 31, 2016 As Reported Adjustment (a) As Adjusted As Reported Adjustment (b) As Adjusted Net cash flows from operating activities $ 431,104 $ 309 $ 431,413 $ 591,766 $ 19,824 $ 611,590 Net cash flow from (used in) investing activities (198,025 ) 312,609 114,584 (606,003 ) (3,525 ) (609,528 ) Net cash flow from financing activities 188,263 1,496 189,759 124,249 (19,824 ) 104,425 (a) Adjustment primarily relates to restricted cash received as discussed under Broadcast Incentive Auction under 2018 Dispositions within Note 2. Acquisitions and Dispositions of Assets . (b) Adjustment primarily relates to the $19.8 million prepayment penalty related to the redemption of our 6.375 For the years ended December 31, 2017 December 31, 2016 As Reported Adoption of ASC 606 As Adjusted As Reported Adoption of ASC 606 As Adjusted Revenues realized from station barter arrangements (a) $ 120,963 $ (97,903 ) $ 23,060 $ 135,566 $ (114,439 ) $ 21,127 Expenses realized from barter arrangements (b) $ 98,973 $ (97,903 ) $ 1,070 $ 116,954 $ (114,439 ) $ 2,515 Operating income $ 737,506 $ — $ 737,506 $ 602,853 $ — $ 602,853 Net income $ 576,013 $ — $ 576,013 $ 245,301 $ — $ 245,301 Basic EPS $ 5.77 $ — $ 5.77 $ 2.62 $ — $ 2.62 Diluted EPS $ 5.72 $ — $ 5.72 $ 2.60 $ — $ 2.60 (a) The remaining balance in the "as adjusted" column relates to trade revenue, which was unaffected by the adoption and has been reclassified to media revenue. (b) |
Schedule of rollforward of the allowance for doubtful accounts | A rollforward of the allowance for doubtful accounts for the years ended December 31, 2018 , 2017 , and 2016 is as follows (in thousands): 2018 2017 2016 Balance at beginning of period $ 2,590 $ 2,124 $ 4,495 Charged to expense 5,814 2,837 1,974 Net write-offs (6,025 ) (2,371 ) (4,345 ) Balance at end of period $ 2,379 $ 2,590 $ 2,124 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Compensation and employee benefits $ 99,884 $ 87,003 Interest 42,450 42,794 Deferred revenue 83,270 49,522 Programming related obligations 79,685 89,728 Accounts payable and other accruals relating to operating expenses 107,938 101,356 Total accounts payable and accrued liabilities $ 413,227 $ 370,403 |
Schedule of cash transactions | During the years ended December 31, 2018 , 2017 , and 2016 , we had the following cash transactions (in thousands): 2018 2017 2016 Income taxes paid $ 16,928 $ 128,168 $ 108,347 Income tax refunds $ 413 $ 1,508 $ 12,193 Interest paid $ 284,691 $ 203,800 $ 191,117 |
Disaggregation of revenue | The following table presents our revenue disaggregated by type and segment (in thousands): For the year ended December 31, 2018 Broadcast Other Total Advertising revenue $ 1,484,188 $ 75,539 $ 1,559,727 Distribution revenue 1,185,800 112,827 1,298,627 Other media and non-media revenues 44,675 152,052 196,727 Total revenues $ 2,714,663 $ 340,418 $ 3,055,081 For the year ended December 31, 2017 Broadcast Other Total Advertising revenue $ 1,314,999 $ 54,402 $ 1,369,401 Distribution revenue 1,032,838 107,012 1,139,850 Other media and non-media revenues 45,804 81,160 126,964 Total revenues $ 2,393,641 $ 242,574 $ 2,636,215 For the year ended December 31, 2016 Broadcast Other Total Advertising revenue $ 1,480,157 $ 28,176 $ 1,508,333 Distribution revenue 890,554 65,382 955,936 Other media and non-media revenues 46,274 111,967 158,241 Total revenues $ 2,416,985 $ 205,525 $ 2,622,510 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS OF ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of allocated fair value of acquired assets and liabilities assumed | The following table summarizes the allocated fair value of acquired assets and assumed liabilities (in thousands): Accounts receivable $ 14,536 Prepaid expenses and other current assets 699 Program contract costs 988 Property and equipment 27,295 Definite-lived intangible assets 161,936 Indefinite-lived intangible assets 425 Other assets 3,609 Accounts payable and accrued liabilities (8,846 ) Program contracts payable (988 ) Deferred tax liability (66,158 ) Other long term liabilities (12,265 ) Fair value of identifiable, net assets acquired 121,231 Goodwill 120,921 Total purchase price, net of cash acquired $ 242,152 Accounts receivable $ 17,629 Prepaid expenses and other current assets 6,518 Property and equipment 5,964 Definite-lived intangible assets 272,686 Indefinite-lived intangible assets 23,400 Other assets 619 Accounts payable and accrued liabilities (7,414 ) Capital leases (115 ) Deferred tax liability (16,991 ) Other long term liabilities (1,669 ) Fair value of identifiable net assets acquired 300,627 Goodwill 53,427 Total purchase price, net of cash acquired $ 354,054 |
Schedule of acquired operations included in the financial statements | Financial Results of Acquisitions The following tables summarize the results of the net media revenues and operating income (loss) included in the financial statements of the Company beginning on the acquisition date of each acquisition as listed below (in thousands): Revenues 2018 2017 2016 Bonten $ 100,971 $ 30,907 $ — Tennis Channel 143,047 132,584 84,040 Other acquisitions in: 2017 17,979 11,108 — 2016 81,003 66,698 49,186 Total net media revenues $ 343,000 $ 241,297 $ 133,226 Operating Income (Loss) 2018 2017 2016 Bonten $ 21,479 $ 7,448 $ — Tennis Channel 14,887 19,420 (1,990 ) Other acquisitions in: 2017 (2,035 ) (89 ) — 2016 25,523 18,392 18,311 Total operating income $ 59,854 $ 45,171 $ 16,321 |
Schedule of unaudited pro forma results of operations | The following table sets forth unaudited pro forma results of operations, assuming that Bonten and Tennis Channel along with transactions necessary to finance the acquisition, occurred at the beginning of the year preceding the year of acquisition. The pro forma results exclude the acquisitions presented under Other 2017 Acquisitions and Other 2016 Acquisitions above, as they are not material both individually and in the aggregate (in thousands, except per data share): Unaudited 2017 2016 Total revenues $ 2,692,890 $ 2,720,735 Net Income $ 597,054 $ 252,902 Net Income attributable to Sinclair Broadcast Group $ 578,963 $ 247,441 Basic earnings per share attributable to Sinclair Broadcast Group $ 5.80 $ 2.64 Diluted earnings per share attributable to Sinclair Broadcast Group $ 5.74 $ 2.62 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of changes in unvested restricted stock | The following is a summary of changes in unvested restricted stock: RSAs Weighted-Average Unvested shares at December 31, 2017 152,180 $ 33.04 2018 Activity: Granted 237,593 34.95 Vested (101,385 ) 32.66 Forfeited (8,073 ) 35.36 Unvested shares at December 31, 2018 280,315 $ 34.73 |
Summary of SARS Activity | The following is a summary of the 2018 activity: SARs Weighted- Outstanding SARs at December 31, 2017 2,610,000 $ 22.65 2018 Activity: Granted 450,000 33.80 Outstanding SARs at December 31, 2018 3,060,000 $ 24.29 |
Schedule of assumptions used to estimate the value of stock options under ESPP | Our SARs and stock options were valued using the Black-Scholes pricing model utilizing the following assumptions: 2018 2017 2016 Risk-free interest rate 2.6 % 2.1 % 1.2% - 1.9% Expected years to exercise 5 years 5 years 5 years Expected volatility 36.2 % 37.0 % 37.5% - 42.1% Annual dividend yield 2.1% - 2.2% 2.0 % 2.1 % |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of estimated useful lives | Depreciation is generally computed under the straight-line method over the following estimated useful lives: Buildings and improvements 10 - 30 years Station equipment 5 - 10 years Office furniture and equipment 5 - 10 years Leasehold improvements Lesser of 10 - 30 years or lease term Automotive equipment 3 - 5 years Property and equipment under capital leases Lease term |
Schedule of property and equipment stated at cost less accumulated depreciation | Property and equipment consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Land and improvements $ 76,501 $ 77,487 Real estate held for development and sale 34,645 87,056 Buildings and improvements 278,649 260,470 Station equipment 744,294 779,779 Office furniture and equipment 107,536 109,632 Leasehold improvements 24,115 25,120 Automotive equipment 62,663 63,513 Capital leased assets 53,401 53,005 Construction in progress 71,461 30,575 1,453,265 1,486,637 Less: accumulated depreciation (770,131 ) (748,339 ) $ 683,134 $ 738,298 |
GOODWILL, INDEFINITE-LIVED IN_2
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill was as follows (in thousands): Broadcast Other Consolidated Balance at December 31, 2016 $ 1,933,831 $ 56,915 $ 1,990,746 Acquisitions (a) 119,426 13,966 133,392 Measurement period adjustments related to prior year acquisitions 153 154 307 Disposition of assets (a) — (412 ) (412 ) Balance at December 31, 2017 (b) 2,053,410 70,623 2,124,033 Measurement period adjustments related to prior year acquisitions 1,369 (1,500 ) (131 ) Balance at December 31, 2018 (b) $ 2,054,779 $ 69,123 $ 2,123,902 (a) See Note 2. Acquisitions and Dispositions of Assets for discussion of acquisitions and divestitures made during 2017 . (b) Approximately $0.8 million of goodwill relates to consolidated VIEs as of December 31, 2018 and 2017 |
Schedule of Indefinite-Lived Intangible Assets | As of December 31, 2018 and 2017 , the carrying amount of our indefinite-lived intangible assets was as follows (in thousands): Broadcast Other Consolidated Balance at December 31, 2016 $ 132,906 $ 23,400 $ 156,306 Acquisitions (a) 425 4,051 4,476 Disposition of assets (a) (1,411 ) — (1,411 ) Balance at December 31, 2017 (b) 131,920 27,451 159,371 Disposition of assets (a) (1,149 ) — (1,149 ) Balance at December 31, 2018 (b) (c) $ 130,771 $ 27,451 $ 158,222 (a) See Note 2. Acquisitions and Dispositions of Assets for discussion of acquisitions and divestitures made during 2018 and 2017 . (b) Approximately $14.3 million of indefinite-lived intangible assets relate to consolidated VIEs as of December 31, 2018 and 2017 . (c) |
Finite-Lived Intangible Assets Amortization | The following table shows the gross carrying amount and accumulated amortization of definite-lived intangibles (in thousands): As of December 31, 2018 Gross Carrying Value Accumulated Amortization Net Amortized intangible assets: Network affiliation (a) $ 1,451,600 $ (604,470 ) $ 847,130 Customer Relationships (a) 1,113,134 (340,805 ) 772,329 Other (a) 33,417 (25,996 ) 7,421 Total $ 2,598,151 $ (971,271 ) $ 1,626,880 As of December 31, 2017 Gross Carrying Value Accumulated Amortization Net Amortized intangible assets: Network affiliation (a) $ 1,451,663 $ (514,575 ) $ 937,088 Customer Relationships (a) 1,229,006 (373,966 ) 855,040 Other (a) 45,955 (36,413 ) 9,542 Total $ 2,726,624 $ (924,954 ) $ 1,801,670 (a) Changes between the gross carrying value from December 31, 2017 to December 31, 2018 |
Schedule of estimated amortization expense of the definite-lived intangible assets | The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years (in thousands): For the year ended December 31, 2019 $ 173,508 For the year ended December 31, 2020 172,945 For the year ended December 31, 2021 171,902 For the year ended December 31, 2022 168,135 For the year ended December 31, 2023 159,236 Thereafter 781,154 $ 1,626,880 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets as of December 31, 2018 and 2017 consisted of the following (in thousands): 2018 2017 Equity method investments $ 72,371 $ 123,923 Other equity investments 44,625 45,222 Post-retirement plan assets 28,081 22,659 Other 39,754 49,841 Total other assets $ 184,831 $ 241,645 |
Equity Method Investments | As described under Principles of Consolidation within Note 1. Nature of Operations and Summary of Significant Accounting Policies , we record our proportionate share of net income generated by equity method investees in (loss) income from equity method investments within our consolidated statements of operations. The summarized results of operations and financial position of the investments accounted for under the equity method are as follows (in thousands): For the Years Ended December 31, 2018 2017 2016 Revenues, net $ 145,253 $ 115,054 $ 82,524 Operating (loss) income $ (58,359 ) $ (17,470 ) $ 7,804 Net loss $ (81,596 ) $ (41,926 ) $ (2,285 ) As of December 31, 2018 2017 Current assets $ 27,961 $ 31,602 Noncurrent assets $ 710,831 $ 777,619 Current liabilities $ 52,527 $ 27,864 Noncurrent liabilities $ 543,604 $ 550,260 |
NOTES PAYABLE AND COMMERCIAL _2
NOTES PAYABLE AND COMMERCIAL BANK FINANCING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of notes payable, capital leases and the Bank Credit Agreement | Notes payable, capital leases, and commercial bank financing (including capital leases to affiliates) consisted of the following as of December 31, 2018 and 2017 (in thousands): 2018 2017 Bank credit agreement: Term Loan A-1, due April 9, 2018 $ — $ 117,370 Term Loan A-2, due July 31, 2021 95,892 113,327 Term Loan B, due January 3, 2024 1,342,600 1,356,300 Senior unsecured notes: 5.375% Notes, due April 1, 2021 600,000 600,000 6.125% Notes, due October 1, 2022 500,000 500,000 5.625% Notes, due August 1, 2024 550,000 550,000 5.875% Notes, due March 15, 2026 350,000 350,000 5.125% Notes, due February 15, 2027 400,000 400,000 Debt of variable interest entities 25,281 29,614 Debt of non-media subsidiaries 19,577 25,238 Capital leases 29,562 31,696 Capital leases - affiliate 12,524 14,152 Total outstanding principal 3,925,436 4,087,697 Less: Deferred financing costs and discount (32,981 ) (39,047 ) Less: Current portion (40,634 ) (159,382 ) Less: Capital leases - affiliate, current portion (1,930 ) (1,667 ) Net carrying value of long-term debt $ 3,849,891 $ 3,887,601 |
Schedule of maturity of indebtedness under the notes payable, capital leases and the Bank Credit Agreement | Indebtedness under the Bank Credit Agreement, notes payable, and capital leases as of December 31, 2018 matures as follows (in thousands): Notes and Bank Agreement Capital Leases Capital Leases - Affiliate Total 2019 $ 38,065 $ 5,110 $ 2,978 $ 46,153 2020 36,631 4,847 3,093 44,571 2021 682,363 4,861 3,046 690,270 2022 521,871 4,744 2,441 529,056 2023 14,663 4,819 2,319 21,801 2024 and thereafter 2,589,757 18,754 2,290 2,610,801 Total minimum payments 3,883,350 43,135 16,167 3,942,652 Less: Deferred financing costs and discount (32,981 ) — — (32,981 ) Less: Amount representing future interest — (13,573 ) (3,643 ) (17,216 ) Net carrying value of debt $ 3,850,369 $ 29,562 $ 12,524 $ 3,892,455 |
Schedule of debt | The stated and weighted average effective interest rates on the above obligations are as follows: Weighted Average Effective Rate Stated Rate 2018 2017 Bank credit agreement: Term Loan A-2 (a) LIBOR plus 2.25% 4.12% 3.30% Term Loan B LIBOR plus 2.25% 4.34% 3.32% Revolver (b) LIBOR plus 2.00% —% —% Senior unsecured notes: 5.375% Notes 5.38% 5.58% 5.58% 6.125% Notes 6.13% 6.31% 6.31% 5.625% Notes 5.63% 5.83% 5.83% 5.875% Notes 5.88% 6.09% 6.09% 5.125% Notes 5.13% 5.33% 5.33% (a) LIBOR plus 2.0% if our first lien indebtedness ratio is less than 1.5 x. (b) As of December 31, 2018 and 2017 , we had a $485.2 million revolving credit facility (Revolver). We incur a commitment fee on undrawn capacity of 0.25% or 0.50% if our first lien indebtedness ratio is less than or greater than 3.0 x, respectively. There were no outstanding borrowings and $0.7 million and $0.8 million letters of credit under the revolver as of December 31, 2018 and 2017 , respectively. There were no borrowings under the revolver during the years ended December 31, 2018 and 2017 |
PROGRAM CONTRACTS (Tables)
PROGRAM CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROGRAM CONTRACTS: | |
Schedule of future payments required under program contracts | Future payments required under program contracts as of December 31, 2018 were as follows (in thousands): 2019 $ 93,480 2020 17,245 2021 14,434 2022 11,458 2023 6,923 Total 143,540 Less: Current portion (93,480 ) Long-term portion of program contracts payable $ 50,060 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision (benefit) for income taxes | The provision (benefit) for income taxes consisted of the following for the years ended December 31, 2018 , 2017 , and 2016 (in thousands): 2018 2017 2016 Current provision for income taxes: Federal $ 58,785 $ 77,477 $ 113,737 State 8,061 6,625 2,273 66,846 84,102 116,010 Deferred (benefit) provision for income taxes: Federal (68,802 ) (196,468 ) 8,555 State (33,819 ) 37,006 (2,437 ) (102,621 ) (159,462 ) 6,118 (Benefit) provision for income taxes $ (35,775 ) $ (75,360 ) $ 122,128 |
Schedule of reconciliation of federal income taxes at the applicable statutory rate to the recorded provision from continuing operations | The following is a reconciliation of federal income taxes at the applicable statutory rate to the recorded provision: 2018 2017 2016 Federal statutory rate 21.0 % 35.0 % 35.0 % Adjustments: Federal tax credits (a) (19.9 )% (2.2 )% (0.4 )% State income taxes, net of federal tax benefit (b) (9.0 )% 5.0 % 0.2 % Non-deductible items (c) (4.9 )% 1.5 % 1.0 % Effect of consolidated VIEs (d) 1.6 % 1.0 % 1.2 % Federal tax reform (e) (1.4 )% (54.3 )% — % Domestic production activities deduction — % (1.7 )% (3.4 )% Other 0.9 % 0.6 % (0.3 )% Effective income tax rate (11.7 )% (15.1 )% 33.3 % (a) During the years ended December 31, 2018 and 2017 , we recorded a benefit of $58.2 million and $8.3 million , respectively, related to investments in sustainability initiatives whose activities qualify for federal income tax credits through 2021. (b) Included in state income taxes are deferred income tax effects related to certain acquisitions, intercompany mergers and/or impact of changes in apportionment. (c) Our 2018 income tax provision includes a $17.7 million permanent benefit recognized from an IRS tax ruling on the treatment of the gain from the sale of certain broadcast spectrum in connection with the Broadcast Incentive Auction, as discussed in Note 2. Acquisitions and Dispositions of Assets . (d) Certain of our consolidated VIEs incur expenses that are not attributable to non-controlling interests because we absorb certain related losses of the VIEs. These expenses are not tax-deductible by us, and since these VIEs are treated as pass-through entities for income tax purposes, deferred income tax benefits are not recognized. (e) Our 2018 and 2017 income tax provisions include a non-recurring benefit of $4.3 million and $272.1 million |
Schedule of total deferred tax assets and deferred tax liabilities | Total deferred tax assets and deferred tax liabilities as of December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 Deferred Tax Assets: Net operating losses: Federal $ 28,630 $ 34,861 State 74,339 75,754 Goodwill and intangible assets 12,587 14,389 Other 47,361 33,462 162,917 158,466 Valuation allowance for deferred tax assets (65,887 ) (62,865 ) Total deferred tax assets $ 97,030 $ 95,601 Deferred Tax Liabilities: Goodwill and intangible assets $ (427,339 ) $ (514,776 ) Property & equipment, net (80,461 ) (80,630 ) Other (2,483 ) (15,431 ) Total deferred tax liabilities (510,283 ) (610,837 ) Net deferred tax liabilities $ (413,253 ) $ (515,236 ) |
Schedule of activity related to accrued unrecognized tax benefits | The following table summarizes the activity related to our accrued unrecognized tax benefits (in thousands): 2018 2017 2016 Balance at January 1, $ 7,237 $ 4,739 $ 3,257 Additions related to prior year tax positions 120 2,019 420 Additions related to current year tax positions 1,600 610 2,053 Reductions related to prior year tax positions (453 ) — — Reductions related to settlements with taxing authorities (436 ) (131 ) — Reductions related to expiration of the applicable statute of limitations (1,493 ) — (991 ) Balance at December 31, $ 6,575 $ 7,237 $ 4,739 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments under the leases | Future minimum payments under the leases are as follows (in thousands): 2019 $ 32,108 2020 31,287 2021 29,547 2022 26,702 2023 24,325 2024 and thereafter 157,816 $ 301,785 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | he 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 December 31, 2018 and 2017 were as follows (in thousands): 2018 2017 ASSETS Current assets: Accounts receivable $ 28,276 $ 19,566 Other current assets 6,773 8,937 Total current asset 35,049 28,503 Program contract costs, less current portion 2,058 822 Property and equipment, net 5,346 6,215 Goodwill and indefinite-lived intangible assets 15,064 15,064 Definite-lived intangible assets, net 67,680 74,442 Other assets 2,374 5,601 Total assets $ 127,571 $ 130,647 LIABILITIES Current liabilities: Other current liabilities $ 18,298 $ 23,564 Notes payable, capital leases and commercial bank financing, less current portion 19,278 23,217 Program contracts payable, less current portion 8,474 11,213 Other long term liabilities 650 650 Total liabilities $ 46,700 $ 58,644 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of income (numerator) and shares (denominator) used in computation of diluted earnings per share | The following table reconciles income (numerator) and shares (denominator) used in our computations of earnings per share for the years ended December 31, 2018 , 2017 , and 2016 (in thousands): 2018 2017 2016 Income (Numerator) Net income $ 345,998 $ 594,104 $ 250,762 Net income attributable to noncontrolling interests (4,757 ) (18,091 ) (5,461 ) Numerator for diluted earnings available to common shareholders $ 341,241 $ 576,013 $ 245,301 Shares (Denominator) Weighted-average common shares outstanding 100,913 99,844 93,567 Dilutive effect of outstanding stock settled appreciation rights and stock options 805 945 866 Weighted-average common and common equivalent shares outstanding 101,718 100,789 94,433 |
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. 2018 2017 2016 Weighted-average stock-settled appreciation rights and outstanding stock options excluded 1,325 450 556 |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | Financial information for our reportable segment is included in the following tables for the years ended December 31, 2018 , 2017 , and 2016 (in thousands): For the year ended December 31, 2018 Broadcast Other Corporate Consolidated Revenue $ 2,714,663 $ 340,418 $ — $ 3,055,081 Depreciation of property and equipment 97,703 7,461 76 105,240 Amortization of definite-lived intangible assets and other assets 153,720 21,128 — 174,848 Amortization of program contract costs and net realizable value adjustments 100,899 — — 100,899 General and administrative overhead expenses 100,241 913 9,916 111,070 (Gain) loss on asset dispositions and other, net of impairment (99,977 ) (d) 60,032 (c) (118 ) (40,063 ) Operating income (loss) 751,341 (d) (81,805 ) (c) (9,875 ) 659,661 Interest expense 5,734 803 285,439 291,976 Loss from equity method investments — (60,831 ) — (60,831 ) Goodwill 2,054,779 69,123 — 2,123,902 Assets 4,797,420 720,704 1,053,968 6,572,092 Capital expenditures 94,812 5,155 5,094 105,061 For the year ended December 31, 2017 Broadcast Other Corporate Consolidated Revenue (a) $ 2,393,641 $ 242,574 $ — $ 2,636,215 Depreciation of property and equipment 88,751 7,368 984 97,103 Amortization of definite-lived intangible assets and other assets 155,640 23,182 — 178,822 Amortization of program contract costs and net realizable value adjustments 115,523 — — 115,523 General and administrative overhead expenses 101,680 1,009 10,564 113,253 (Gain) loss on asset dispositions and other, net of impairment (225,770 ) (53,102 ) (b) — (278,872 ) Operating income (loss) 724,110 24,943 (b) (11,547 ) 737,506 Interest expense 5,285 1,835 205,195 212,315 Loss from equity method investments — (14,307 ) — (14,307 ) Goodwill 2,053,410 70,623 — 2,124,033 Assets 5,267,986 769,919 746,565 6,784,470 Capital expenditures 63,163 5,546 15,103 83,812 For the year ended December 31, 2016 Broadcast Other Corporate Consolidated Revenue (a) $ 2,416,985 $ 205,525 $ — $ 2,622,510 Depreciation of property and equipment 91,573 5,772 1,184 98,529 Amortization of definite-lived intangible assets and other assets 155,479 28,316 — 183,795 Amortization of program contract costs and net realizable value adjustments 127,880 — — 127,880 General and administrative overhead expenses 67,035 2,459 4,062 73,556 (Gain) loss on asset dispositions and other, net of impairment (4,647 ) (1,427 ) 45 (6,029 ) Operating income (loss) 639,422 (31,258 ) (5,311 ) 602,853 Interest expense 5,641 6,371 199,131 211,143 Income from equity method investments — 906 — 906 (a) Revenue has been adjusted for the adoption of ASC 606. See Note 1. Nature of Operations and Summary of Significant Accounting Policies (b) Includes a gain on the sale of Alarm of $53.0 million , of which $12.3 million was attributable to noncontrolling interests. (c) Includes a $59.6 million impairment to the carrying value of a consolidated real estate venture. See Note 1. Nature of Operations and Summary of Significant Accounting Policies . (d) Includes a gain of $83.3 million related to the auction proceeds. See Note 2. Acquisitions and Dispositions of Assets |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and fair value of notes and debentures | The following table sets forth the face value and fair value of our notes and debentures as of December 31, 2018 and 2017 (in thousands): 2018 2017 Face Value (a) Fair Value Face Value (a) Fair Value Level 2: 6.125% Senior Unsecured Notes due 2022 $ 500,000 $ 503,750 $ 500,000 $ 515,535 5.875% Senior Unsecured Notes due 2026 350,000 326,375 350,000 363,475 5.625% Senior Unsecured Notes due 2024 550,000 515,625 550,000 568,205 5.375% Senior Unsecured Notes due 2021 600,000 598,500 600,000 610,440 5.125% Senior Unsecured Notes due 2027 400,000 353,000 400,000 396,088 Term Loan A-1 (b) — — 117,370 117,370 Term Loan A-2 95,892 92,057 113,327 113,327 Term Loan B 1,342,600 1,275,470 1,356,300 1,357,995 Debt of variable interest entities 25,281 25,281 29,614 29,614 Debt of non-media subsidiaries 19,577 19,577 25,238 25,238 (a) Amounts are carried on our consolidated balance sheets net of debt discount and deferred financing costs, which are excluded in the above table, of $33.0 million and $39.0 million as of December 31, 2018 and 2017 , respectively. (b) |
CONDENSED CONSOLIDATED FINANC_2
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed consolidating balance sheet | CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2018 (In thousands) Sinclair Broadcast Group, Inc. Sinclair Television Group, Inc. Guarantor Subsidiaries and KDSM, LLC Non- Guarantor Subsidiaries Eliminations Sinclair Consolidated Cash and cash equivalents $ — $ 961,963 $ 19,648 $ 78,719 $ — $ 1,060,330 Accounts and other receivables — — 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 ) — Other long-term assets 31,002 851,170 119,187 165,064 (970,375 ) 196,048 Goodwill — — 2,120,035 3,867 — 2,123,902 Indefinite-lived intangible assets — — 143,924 14,298 — 158,222 Definite-lived intangible assets — — 1,608,748 70,409 (52,277 ) 1,626,880 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 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 $ 1,639,225 $ 5,504,717 $ 5,243,130 $ 507,791 $ (6,322,771 ) $ 6,572,092 CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2017 (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair Cash and cash equivalents $ — $ 645,830 $ 12,273 $ 23,223 $ — $ 681,326 Restricted Cash — — 311,110 2,000 — 313,110 Accounts and other receivables — — 530,273 36,191 — 566,464 Other current assets 3,034 5,758 145,637 9,687 (10,269 ) 153,847 Total current assets 3,034 651,588 999,293 71,101 (10,269 ) 1,714,747 Property and equipment, net 829 31,111 586,950 132,010 (12,602 ) 738,298 Investment in consolidated subsidiaries 1,537,337 4,116,241 4,179 — (5,657,757 ) — Other long-term assets 31,757 770,312 104,363 208,367 (868,448 ) 246,351 Goodwill — — 2,120,166 3,867 — 2,124,033 Indefinite-lived intangible assets — — 145,073 14,298 — 159,371 Definite-lived intangible assets — — 1,781,045 77,944 (57,319 ) 1,801,670 Total assets $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 Accounts payable and accrued liabilities $ 1,100 $ 84,326 $ 261,266 $ 36,029 $ (12,318 ) $ 370,403 Current portion of long-term debt — 148,505 3,445 9,645 (546 ) 161,049 Other current liabilities — — 180,616 14,281 — 194,897 Total current liabilities 1,100 232,831 445,327 59,955 (12,864 ) 726,349 Long-term debt — 3,799,987 39,730 381,127 (333,243 ) 3,887,601 Other liabilities 3,119 38,282 1,141,266 187,569 (734,082 ) 636,154 Total liabilities 4,219 4,071,100 1,626,323 628,651 (1,080,189 ) 5,250,104 Total Sinclair Broadcast Group equity 1,568,738 1,498,152 4,114,746 (82,051 ) (5,530,847 ) 1,568,738 Noncontrolling interests in consolidated subsidiaries — — — (39,013 ) 4,641 (34,372 ) Total liabilities and equity $ 1,572,957 $ 5,569,252 $ 5,741,069 $ 507,587 $ (6,606,395 ) $ 6,784,470 |
Schedule of condensed consolidating statement of operations and comprehensive income | CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2017 (In thousands) Sinclair Broadcast Group, Inc. Sinclair Television Group, Inc. Guarantor Subsidiaries and KDSM, LLC Non- Guarantor Subsidiaries Eliminations Sinclair Consolidated Net revenue (a) $ — $ — $ 2,507,183 $ 209,914 $ (80,882 ) $ 2,636,215 Media production expenses — — 1,013,035 124,044 (72,935 ) 1,064,144 Selling, general and administrative 9,204 102,930 522,039 14,800 (2,183 ) 646,790 Depreciation, amortization and other operating expenses 984 6,250 131,880 51,461 (2,800 ) 187,775 Total operating expenses 10,188 109,180 1,666,954 190,305 (77,918 ) 1,898,709 Operating (loss) income (10,188 ) (109,180 ) 840,229 19,609 (2,964 ) 737,506 Equity in earnings of consolidated subsidiaries 579,954 793,620 (16 ) — (1,373,558 ) — Interest expense (88 ) (205,107 ) (4,586 ) (21,643 ) 19,109 (212,315 ) Other income (expense) 1,678 5,077 (5,790 ) (7,412 ) — (6,447 ) Total other income (expense) 581,544 593,590 (10,392 ) (29,055 ) (1,354,449 ) (218,762 ) Income tax benefit (provision) 4,657 100,473 (30,171 ) 401 — 75,360 Net income (loss) 576,013 584,883 799,666 (9,045 ) (1,357,413 ) 594,104 Net income attributable to the noncontrolling interests — — — (17,738 ) (353 ) (18,091 ) Net income (loss) attributable to Sinclair Broadcast Group $ 576,013 $ 584,883 $ 799,666 $ (26,783 ) $ (1,357,766 ) $ 576,013 Comprehensive income (loss) $ 593,488 $ 584,267 $ 799,666 $ (9,045 ) $ (1,374,888 ) $ 593,488 (a) See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies for a discussion of the adoption of the new accounting principles for revenue recognition. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2016 (In thousands) Sinclair Broadcast Group, Inc. Sinclair Television Group, Inc. Guarantor Subsidiaries and KDSM, LLC Non- Guarantor Subsidiaries Eliminations Sinclair Consolidated Net revenue (a) $ — $ — $ 2,476,669 $ 254,031 $ (108,190 ) $ 2,622,510 Media production expenses — — 920,715 135,511 (100,622 ) 955,604 Selling, general and administrative 4,062 70,503 489,882 10,804 (106 ) 575,145 Depreciation, amortization and other operating expenses 1,064 7,331 360,550 121,986 (2,023 ) 488,908 Total operating expenses 5,126 77,834 1,771,147 268,301 (102,751 ) 2,019,657 Operating (loss) income (5,126 ) (77,834 ) 705,522 (14,270 ) (5,439 ) 602,853 Equity in earnings of consolidated subsidiaries 244,580 463,598 220 — (708,398 ) — Interest expense (238 ) (198,893 ) (4,481 ) (32,521 ) 24,990 (211,143 ) Other income (expense) 3,613 (22,867 ) 715 (281 ) — (18,820 ) Total other income (expense) 247,955 241,838 (3,546 ) (32,802 ) (683,408 ) (229,963 ) Income tax benefit (provision) 2,472 99,148 (231,504 ) 7,756 — (122,128 ) Net income (loss) 245,301 263,152 470,472 (39,316 ) (688,847 ) 250,762 Net income attributable to the noncontrolling interests — — — (4,937 ) (524 ) (5,461 ) Net income (loss) attributable to Sinclair Broadcast Group $ 245,301 $ 263,152 $ 470,472 $ (44,253 ) $ (689,371 ) $ 245,301 Comprehensive income (loss) $ 250,789 $ 263,179 $ 470,472 $ (39,316 ) $ (694,335 ) $ 250,789 |
Schedule of condensed consolidating statement of cash flows | CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2018 (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES $ (8,542 ) $ (252,615 ) $ 936,385 $ (40,533 ) $ 12,723 647,418 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment (1 ) (6,592 ) (98,201 ) (3,914 ) 3,647 (105,061 ) Proceeds from sale of assets — — 1,616 — — 1,616 Investments in equity investees (2,587 ) (1,975 ) (27,960 ) (3,283 ) — (35,805 ) Distributions from equity method investees 4,728 — — 18,106 — 22,834 Other, net 1,670 (12,091 ) 8,626 — — (1,795 ) Net cash flows from (used in) investing activities 3,810 (20,658 ) (115,919 ) 10,909 3,647 (118,211 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable, commercial bank financing and capital leases — — — 4,317 — 4,317 Repayments of notes payable, commercial bank financing and capital leases — (148,505 ) (3,554 ) (15,120 ) 394 (166,785 ) Dividends paid on Class A and Class B Common Stock (74,566 ) — — — — (74,566 ) Repurchase of outstanding Class A Common Stock (220,889 ) — — — — (220,889 ) Payments for deferred financing cost — — — (922 ) — (922 ) Distributions to noncontrolling interests — — — (8,901 ) — (8,901 ) Increase (decrease) in intercompany payables 297,256 737,911 (1,117,417 ) 100,440 (18,190 ) — Other, net 2,931 — (3,230 ) 1,802 1,426 2,929 Net cash flows from (used in) financing activities 4,732 589,406 (1,124,201 ) 81,616 (16,370 ) (464,817 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 316,133 (303,735 ) 51,992 — 64,390 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 $ — $ 961,963 $ 19,648 $ 78,719 $ — $ 1,060,330 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2017 (a) (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES $ (8,659 ) $ (180,966 ) $ 600,070 $ 12,424 $ 8,544 $ 431,413 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Acquisition of property and equipment (130 ) (14,973 ) (68,475 ) (2,930 ) 2,696 (83,812 ) Acquisition of businesses, net of cash acquired — (8,308 ) (262,965 ) — — (271,273 ) Purchase of alarm monitoring contracts — — — (5,682 ) — (5,682 ) Proceeds from sale of assets — — 568 194,641 — 195,209 Investments in equity investees (946 ) (720 ) (20,701 ) (32,762 ) — (55,129 ) Distributions from equity method investees 5,857 — — 6,321 — 12,178 Spectrum auction proceeds — — 310,802 — — 310,802 Other, net 740 11,551 — — — 12,291 Net cash flows from (used in) investing activities 5,521 (12,450 ) (40,771 ) 159,588 2,696 114,584 CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable, commercial bank financing and capital leases — 159,669 — 7,128 — 166,797 Repayments of notes payable, commercial bank financing and capital leases (1,858 ) (213,919 ) (3,381 ) (121,270 ) 320 (340,108 ) Proceeds from sale of Class A Common Stock 487,883 — — — — 487,883 Dividends paid on Class A and Class B Common Stock (71,364 ) — — — — (71,364 ) Repurchase of outstanding Class A Common Stock (30,287 ) — — — — (30,287 ) Payments for deferred financing costs — (425 ) — (306 ) — (731 ) Distributions to noncontrolling interests — — — (22,416 ) — (22,416 ) Increase (decrease) in intercompany payables (381,344 ) 660,911 (242,402 ) (25,605 ) (11,560 ) — Other, net 108 713 (1,008 ) 172 — (15 ) Net cash flows from (used in) financing activities 3,138 606,949 (246,791 ) (162,297 ) (11,240 ) 189,759 NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 413,533 312,508 9,715 — 735,756 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 232,297 10,875 17,012 — 260,184 CASH, CASH EQUIVALENTS, AND RESTRICTD CASH, end of period $ — $ 645,830 $ 323,383 $ 26,727 $ — $ 995,940 (a) See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies for a discussion of the adoption of new accounting principles related to the classification of certain cash receipts and cash payments. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 (a) (In thousands) Sinclair Sinclair Guarantor Non- Eliminations Sinclair NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES $ (11,784 ) $ (130,406 ) $ 721,991 $ 7,914 $ 23,875 $ 611,590 CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: Acquisition of property and equipment — (8,006 ) (82,450 ) (5,009 ) 1,000 (94,465 ) Acquisition of businesses, net of cash acquired — — (415,282 ) (10,375 ) — (425,657 ) Purchase of alarm monitoring contracts — — — (40,206 ) — (40,206 ) Proceeds from sale of assets — — 8,069 9,133 — 17,202 Investments in equity investees (2,945 ) (15,620 ) (27 ) (32,655 ) — (51,247 ) Other, net 1,714 (25,120 ) 3,179 5,072 — (15,155 ) Net cash flows (used in) from investing activities (1,231 ) (48,746 ) (486,511 ) (74,040 ) 1,000 (609,528 ) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Proceeds from notes payable, commercial bank financing and capital leases — 995,000 — 29,912 — 1,024,912 Repayments of notes payable, commercial bank financing and capital leases (1,651 ) (650,422 ) (3,007 ) (19,612 ) 253 (674,439 ) Dividends paid on Class A and Class B Common Stock (65,909 ) — — — — (65,909 ) Repurchases of outstanding Class A Common Stock (136,283 ) — — — — (136,283 ) Payments for deferred financing costs — (35,254 ) — (251 ) — (35,505 ) Distributions to noncontrolling interests — — — (10,464 ) — (10,464 ) Increase (decrease) in intercompany payables 218,054 (17,778 ) (224,551 ) 49,403 (25,128 ) — Other, net (1,196 ) 407 2,718 184 — 2,113 Net cash flows from (used in) financing activities 13,015 291,953 (224,840 ) 49,172 (24,875 ) 104,425 NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — 112,801 10,640 (16,954 ) — 106,487 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period — 119,496 235 33,966 — 153,697 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ — $ 232,297 $ 10,875 $ 17,012 $ — $ 260,184 (a) See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of the quarterly financial information (unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED): (In thousands, except per share data) For the Quarter Ended 3/31/2018 6/30/2018 9/30/2018 12/31/2018 Total revenues, net $ 665,352 $ 730,143 $ 766,261 $ 893,325 Operating income $ 107,314 $ 131,583 $ 157,810 $ 262,954 Net income $ 43,994 $ 29,310 $ 65,000 $ 207,694 Net income attributable to Sinclair Broadcast Group $ 43,123 $ 28,042 $ 63,875 $ 206,201 Basic earnings per common share $ 0.42 $ 0.27 $ 0.63 $ 2.12 Diluted earnings per common share $ 0.42 $ 0.27 $ 0.62 $ 2.10 For the Quarter Ended 3/31/2017 6/30/2017 9/30/2017 12/31/2017 (a) Total revenues, net (b) $ 626,936 $ 652,235 $ 644,532 $ 712,512 Operating income $ 157,629 $ 118,849 $ 103,447 $ 357,581 Net income $ 70,703 $ 46,035 $ 32,566 $ 444,800 Net income attributable to Sinclair Broadcast Group $ 57,202 $ 44,645 $ 30,637 $ 443,529 Basic earnings per common share $ 0.62 $ 0.43 $ 0.30 $ 4.36 Diluted earnings per common share $ 0.61 $ 0.43 $ 0.30 $ 4.32 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) | Dec. 31, 2018channelstationmarket |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of television stations owned | station | 191 |
Number of markets | market | 89 |
Number of channels | channel | 605 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2015 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative effect of adoption of new accounting standard | $ 2,100 | $ 2,264 | ||||||
Net cash flows from operating activities | $ 647,418 | 431,413 | [1] | $ 611,590 | [1] | |||
Net cash flow from (used in) investing activities | (118,211) | 114,584 | [1] | (609,528) | [1] | |||
Net cash flow from financing activities | $ (464,817) | 189,759 | [1] | 104,425 | [1] | |||
Accounting Standards Update 2016-01 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative effect of adoption of new accounting standard | 2,100 | |||||||
As Reported | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net cash flows from operating activities | 431,104 | 591,766 | ||||||
Net cash flow from (used in) investing activities | (198,025) | (606,003) | ||||||
Net cash flow from financing activities | 188,263 | 124,249 | ||||||
Adjustment (a) | Accounting Standards Update 2016-15 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Net cash flows from operating activities | 309 | 19,824 | ||||||
Net cash flow from (used in) investing activities | 312,609 | (3,525) | ||||||
Net cash flow from financing activities | $ 1,496 | $ (19,824) | ||||||
6.375% Senior Unsecured Notes due 2021 | Senior Notes | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Prepayment penalty | $ 19,800 | |||||||
Interest rate (as a percent) | 637.50% | |||||||
Subsequent Event | Scenario, Forecast | Accounting Standards Update 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Percent increase in right-of-use lease assets (less than) | 5.00% | |||||||
Percent increase in lease liabilities (less than) | 5.00% | |||||||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
NATURE OF OPERATIONS AND SUMM_6
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rollforward of the allowance for doubtful accounts | |||
Balance at beginning of period | $ 2,590 | $ 2,124 | $ 4,495 |
Charged to expense | 5,814 | 2,837 | 1,974 |
Net write-offs | (6,025) | (2,371) | (4,345) |
Balance at end of period | $ 2,379 | $ 2,590 | $ 2,124 |
NATURE OF OPERATIONS AND SUMM_7
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Programming (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Programming | |
Contract period | 1 year |
Maximum | |
Programming | |
Contract period | 7 years |
Programming Contracts with One Year Period | |
Programming | |
Period of program contracts amortized on straight-line basis | 1 year |
Programming Contracts with Two Year Periods | |
Programming | |
Period of program contracts amortized on straight-line basis | 2 years |
NATURE OF OPERATIONS AND SUMM_8
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of Goodwill, Intangibles, and Other Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Consolidated Real Estate Development Project | |
Real Estate Properties [Line Items] | |
Asset impairment charges | $ 59.6 |
NATURE OF OPERATIONS AND SUMM_9
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Compensation and employee benefits | $ 99,884 | $ 87,003 | |
Interest | 42,450 | 42,794 | |
Deferred revenue | 83,270 | 49,522 | $ 31,700 |
Programming related obligations | 79,685 | 89,728 | |
Accounts payable and other accruals relating to operating expenses | 107,938 | 101,356 | |
Total accounts payable and accrued liabilities | $ 413,227 | $ 370,403 |
NATURE OF OPERATIONS AND SUM_10
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Federal tax reform | $ 272.1 | $ 4.3 | $ 272.1 |
NATURE OF OPERATIONS AND SUM_11
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Income taxes paid | $ 16,928 | $ 128,168 | $ 108,347 |
Income tax refunds | 413 | 1,508 | 12,193 |
Interest paid | 284,691 | 203,800 | 191,117 |
Non- cash transactions | |||
Non-cash transaction property and equipment | $ 10,600 | $ 9,500 | $ 5,900 |
NATURE OF OPERATIONS AND SUM_12
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Effects of Adoption (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues, net | $ 893,325 | $ 766,261 | $ 730,143 | $ 665,352 | $ 712,512 | $ 644,532 | $ 652,235 | $ 626,936 | $ 3,055,081 | $ 2,636,215 | $ 2,622,510 |
Media production expenses | 1,191,016 | 1,064,144 | 955,604 | ||||||||
Operating income (loss) | 262,954 | 157,810 | 131,583 | 107,314 | 357,581 | 103,447 | 118,849 | 157,629 | 659,661 | 737,506 | 602,853 |
Net income | $ 206,201 | $ 63,875 | $ 28,042 | $ 43,123 | $ 443,529 | $ 30,637 | $ 44,645 | $ 57,202 | $ 341,241 | $ 576,013 | $ 245,301 |
Basic earnings per share (in dollars per share) | $ 2.12 | $ 0.63 | $ 0.27 | $ 0.42 | $ 4.36 | $ 0.30 | $ 0.43 | $ 0.62 | $ 3.38 | $ 5.77 | $ 2.62 |
Diluted earnings per share (in dollars per share) | $ 2.10 | $ 0.62 | $ 0.27 | $ 0.42 | $ 4.32 | $ 0.30 | $ 0.43 | $ 0.61 | $ 3.35 | $ 5.72 | $ 2.60 |
As Reported | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating income (loss) | $ 737,506 | $ 602,853 | |||||||||
Net income | $ 576,013 | $ 245,301 | |||||||||
Basic earnings per share (in dollars per share) | $ 5.77 | $ 2.62 | |||||||||
Diluted earnings per share (in dollars per share) | $ 5.72 | $ 2.60 | |||||||||
Adjustment (a) | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Operating income (loss) | $ 0 | $ 0 | |||||||||
Net income | $ 0 | $ 0 | |||||||||
Basic earnings per share (in dollars per share) | $ 0 | $ 0 | |||||||||
Diluted earnings per share (in dollars per share) | $ 0 | $ 0 | |||||||||
Station Barter Arrangements | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues, net | $ 23,060 | $ 21,127 | |||||||||
Media production expenses | 1,070 | 2,515 | |||||||||
Station Barter Arrangements | As Reported | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues, net | 120,963 | 135,566 | |||||||||
Media production expenses | 98,973 | 116,954 | |||||||||
Station Barter Arrangements | Adjustment (a) | Accounting Standards Update 2014-09 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Total revenues, net | (97,903) | (114,439) | |||||||||
Media production expenses | $ (97,903) | $ (114,439) |
NATURE OF OPERATIONS AND SUM_13
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 893,325 | $ 766,261 | $ 730,143 | $ 665,352 | $ 712,512 | $ 644,532 | $ 652,235 | $ 626,936 | $ 3,055,081 | $ 2,636,215 | $ 2,622,510 |
Broadcast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,714,663 | 2,393,641 | 2,416,985 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 340,418 | 242,574 | 205,525 | ||||||||
Advertising revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,559,727 | 1,369,401 | 1,508,333 | ||||||||
Advertising revenue | Broadcast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,484,188 | 1,314,999 | 1,480,157 | ||||||||
Advertising revenue | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 75,539 | 54,402 | 28,176 | ||||||||
Distribution revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,298,627 | 1,139,850 | 955,936 | ||||||||
Distribution revenue | Broadcast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,185,800 | 1,032,838 | 890,554 | ||||||||
Distribution revenue | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 112,827 | 107,012 | 65,382 | ||||||||
Other media and non-media revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 196,727 | 126,964 | 158,241 | ||||||||
Other media and non-media revenues | Broadcast | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 44,675 | 45,804 | 46,274 | ||||||||
Other media and non-media revenues | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 152,052 | $ 81,160 | $ 111,967 |
NATURE OF OPERATIONS AND SUM_14
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising arrangement contract terms | The term of our advertising arrangements is generally less than one year and the timing between when an advertisement is aired and when payment is due is not significant. | ||
Deferred revenue | $ 83,270 | $ 49,522 | $ 31,700 |
Deferred revenue, revenue recognized | $ 38,800 | $ 22,300 |
NATURE OF OPERATIONS AND SUM_15
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Total advertising expenses | $ 19.2 | $ 20.6 | $ 18.5 |
NATURE OF OPERATIONS AND SUM_16
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Post-retirement Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Post-retirement Benefits | ||
Post-retirement plan assets | $ 28,081 | $ 22,659 |
Fisher SERP | Fisher | ||
Post-retirement Benefits | ||
Estimated projected benefit obligation | $ 19,200 | |
Discount rate for projected benefit obligation (as a percent) | 4.11% | 3.46% |
Benefit payments | $ 1,700 | $ 1,800 |
Actuarial gain | 1,300 | (1,000) |
Periodic pension expense | 800 | $ 800 |
Fisher SERP | Fisher | Accrued expenses | ||
Post-retirement Benefits | ||
Estimated projected benefit obligation | 1,600 | |
Fisher SERP | Fisher | Other long-term liabilities | ||
Post-retirement Benefits | ||
Estimated projected benefit obligation | 17,600 | |
Other Post-Retirement Plans | ||
Post-retirement Benefits | ||
Post-retirement plan assets | 26,000 | |
Deferred compensation plan liabilities | $ 24,100 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS OF ASSETS - Narrative (Details) $ in Thousands | Sep. 01, 2017USD ($)stationmarket | Mar. 31, 2017USD ($) | Feb. 28, 2017USD ($)station | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)stationmarket | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018market |
Acquisitions | ||||||||||
Cash paid | $ 689,400 | |||||||||
Working capital adjustment | $ 3,400 | |||||||||
Number of television stations owned | station | 191 | |||||||||
Number of markets | market | 89 | |||||||||
Increase to goodwill | $ (131) | $ 307 | ||||||||
Amortization period, weighted average useful life | 14 years | |||||||||
Acquisition costs related to legal and other professioanl services | 1,100 | $ 1,400 | ||||||||
Broadcast incentive auction proceeds | 310,800 | |||||||||
Deferred spectrum auction proceeds | $ 40,063 | 278,872 | 6,029 | |||||||
Number of stations assigned new channels | station | 100 | |||||||||
Total legislation funds to reimburse stations | $ 2,750,000 | |||||||||
Total capital expenditure | 31,100 | |||||||||
Gain (loss) recognized on sale | $ 225,300 | 5,800 | ||||||||
Bonten | ||||||||||
Acquisitions | ||||||||||
Cash paid | $ 240,000 | |||||||||
Working capital adjustment | $ 2,200 | |||||||||
Number of television stations owned | station | 14 | |||||||||
Number of markets | market | 8 | |||||||||
Number of stations to which sales services were provided | station | 4 | |||||||||
Increase to goodwill | 1,500 | |||||||||
Finite-lived intangible assets acquired | $ 161,900 | |||||||||
Goodwill, expected tax deductible amount | 5,600 | |||||||||
Other Acquisitions | ||||||||||
Acquisitions | ||||||||||
Cash paid | 27,400 | |||||||||
Working capital adjustment | 2,700 | |||||||||
Tennis Channel | ||||||||||
Acquisitions | ||||||||||
Cash paid | $ 350,000 | |||||||||
Working capital adjustment | 4,100 | |||||||||
Other Acquisitions In 2016 | ||||||||||
Acquisitions | ||||||||||
Cash paid | 72,000 | |||||||||
Working capital adjustment | 100 | |||||||||
Tribune Media Company | ||||||||||
Acquisitions | ||||||||||
Acquisition costs related to legal and other professioanl services | 99,800 | |||||||||
Spectrum Auction | ||||||||||
Acquisitions | ||||||||||
Number of markets | market | 3 | |||||||||
Deferred spectrum auction proceeds | 83,300 | 225,300 | ||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposals in 2016 | ||||||||||
Acquisitions | ||||||||||
Value of consideration given, non-cash | 23,800 | |||||||||
Gain on sale of broadcast assets | $ 4,400 | |||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Alarm Funding Associates | ||||||||||
Acquisitions | ||||||||||
Sales agreement price | $ 200,000 | |||||||||
Working capital and transaction costs from sale | 5,000 | |||||||||
Gain recognized on sale of broadcast assets | 53,000 | 53,000 | ||||||||
Gain (loss) on disposal, attributable to non-controlling interest | $ 12,300 | $ 12,300 | ||||||||
Network affiliations | Bonten | ||||||||||
Acquisitions | ||||||||||
Finite-lived intangible assets acquired | $ 53,300 | |||||||||
Amortization period, weighted average useful life | 15 years | |||||||||
Customer relationships | Bonten | ||||||||||
Acquisitions | ||||||||||
Finite-lived intangible assets acquired | $ 108,600 | |||||||||
Amortization period, weighted average useful life | 14 years | |||||||||
Customer relationships | Tennis Channel | ||||||||||
Acquisitions | ||||||||||
Finite-lived intangible assets acquired | $ 272,700 | |||||||||
Amortization period, weighted average useful life | 15 years | |||||||||
General and Administrative Expense | Tribune Media Company | ||||||||||
Acquisitions | ||||||||||
Acquisition costs related to legal and other professioanl services | 21,300 | |||||||||
Interest Expense | Tribune Media Company | ||||||||||
Acquisitions | ||||||||||
Acquisition costs related to legal and other professioanl services | $ 78,500 |
ACQUISITIONS AND DISPOSITIONS_4
ACQUISITIONS AND DISPOSITIONS OF ASSETS - Fair Value of Acquired Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 01, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Acquisitions | |||||
Goodwill | $ 2,123,902 | $ 2,124,033 | $ 1,990,746 | ||
Bonten | |||||
Acquisitions | |||||
Accounts receivable | $ 14,536 | ||||
Prepaid expenses and other current assets | 699 | ||||
Program contract costs | 988 | ||||
Property and equipment | 27,295 | ||||
Definite-lived intangible assets | 161,936 | ||||
Indefinite-lived intangible assets | 425 | ||||
Other assets | 3,609 | ||||
Accounts payable and accrued liabilities | (8,846) | ||||
Program contracts payable | (988) | ||||
Deferred tax liability | (66,158) | ||||
Other long term liabilities | (12,265) | ||||
Fair value of identifiable net assets acquired | 121,231 | ||||
Goodwill | 120,921 | ||||
Total | $ 242,152 | ||||
Tennis Channel | |||||
Acquisitions | |||||
Accounts receivable | $ 17,629 | ||||
Prepaid expenses and other current assets | 6,518 | ||||
Property and equipment | 5,964 | ||||
Definite-lived intangible assets | 272,686 | ||||
Indefinite-lived intangible assets | 23,400 | ||||
Other assets | 619 | ||||
Accounts payable and accrued liabilities | (7,414) | ||||
Capital leases | (115) | ||||
Deferred tax liability | (16,991) | ||||
Other long term liabilities | (1,669) | ||||
Fair value of identifiable net assets acquired | 300,627 | ||||
Goodwill | 53,427 | ||||
Total | $ 354,054 |
ACQUISITIONS AND DISPOSITIONS_5
ACQUISITIONS AND DISPOSITIONS OF ASSETS - Acquired Operations Included in the Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Acquisitions | ||||||||||||
Media revenues | [1] | $ 2,918,727 | $ 2,566,936 | $ 2,520,676 | ||||||||
Operating income (loss) | $ 262,954 | $ 157,810 | $ 131,583 | $ 107,314 | $ 357,581 | $ 103,447 | $ 118,849 | $ 157,629 | 659,661 | 737,506 | 602,853 | |
Bonten | ||||||||||||
Acquisitions | ||||||||||||
Media revenues | 100,971 | 30,907 | 0 | |||||||||
Operating income (loss) | 21,479 | 7,448 | 0 | |||||||||
Tennis Channel | ||||||||||||
Acquisitions | ||||||||||||
Media revenues | 143,047 | 132,584 | 84,040 | |||||||||
Operating income (loss) | 14,887 | 19,420 | (1,990) | |||||||||
Other Acquisitions In 2017 | ||||||||||||
Acquisitions | ||||||||||||
Media revenues | 17,979 | 11,108 | 0 | |||||||||
Operating income (loss) | (2,035) | (89) | 0 | |||||||||
Other Acquisitions In 2016 | ||||||||||||
Acquisitions | ||||||||||||
Media revenues | 81,003 | 66,698 | 49,186 | |||||||||
Operating income (loss) | 25,523 | 18,392 | 18,311 | |||||||||
Total Acquisitions | ||||||||||||
Acquisitions | ||||||||||||
Media revenues | 343,000 | 241,297 | 133,226 | |||||||||
Operating income (loss) | $ 59,854 | $ 45,171 | $ 16,321 | |||||||||
[1] | See Revenue Recognition within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
ACQUISITIONS AND DISPOSITIONS_6
ACQUISITIONS AND DISPOSITIONS OF ASSETS - Pro Forma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pro Forma Information | ||
Total revenues | $ 2,692,890 | $ 2,720,735 |
Net Income | 597,054 | 252,902 |
Net Income attributable to Sinclair Broadcast Group | $ 578,963 | $ 247,441 |
Basic earnings per share attributable to Sinclair Broadcast Group (in dollars per share) | $ 5.80 | $ 2.64 |
Diluted earnings per share attributable to Sinclair Broadcast Group (in dollars per share) | $ 5.74 | $ 2.62 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
STOCK-BASED COMPENSATION PLANS: | |||
Options outstanding (in shares) | 375,000 | ||
Weighted average exercise price of options (in dollars per share) | $ 31.08 | ||
Weighted average remaining contractual life of options | 7 years | ||
Stock Based Compensation Plans | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense | $ 26,500,000 | $ 18,500,000 | $ 16,900,000 |
ESPP | |||
STOCK-BASED COMPENSATION PLANS: | |||
Number of shares reserved for award (in shares) | 3,200,000 | ||
Compensation expense | $ 1,200,000 | 1,000,000 | 900,000 |
Number of shares available for future grant (in shares) | 681,640 | ||
ESPP | Maximum | |||
STOCK-BASED COMPENSATION PLANS: | |||
Percentage of the fair market value of common stock as of the first day of the quarter or on last day of the quarter | 85.00% | ||
RSAs | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense | $ 5,200,000 | 3,200,000 | 2,800,000 |
Unrecognized compensation expense | $ 4,500,000 | ||
Unrestricted shares granted (in shares) | 237,593 | ||
Stock Grants | Non Employee Director | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense | $ 600,000 | $ 700,000 | $ 600,000 |
Unrestricted shares granted (in shares) | 20,000 | 20,000 | 20,000 |
SARs | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense | $ 3,200,000 | $ 6,600,000 | $ 4,000,000 |
SARs term | 10 years | ||
SAR's outstanding (in shares) | 3,060,000 | 2,610,000 | |
SAR's outstanding intrinsic value | $ 16,600,000 | ||
SAR's remaining contractual life | 5 years 10 months 13 days | ||
Stock Options | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense | $ 0 | $ 400,000 | |
401 (K) Plan | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense relating to match | $ 16,400,000 | 7,300,000 | 6,900,000 |
Number of shares reserved for matches (in shares) | 7,000,000 | ||
Number of shares available for future grants (in shares) | 4,029,061 | ||
Subsidiary Stock Awards | |||
STOCK-BASED COMPENSATION PLANS: | |||
Compensation expense | $ 0 | $ 0 | $ 1,300,000 |
Class A Common Stock | LTIP | |||
STOCK-BASED COMPENSATION PLANS: | |||
Number of shares reserved for award (in shares) | 14,000,000 | ||
Number of shares (including forfeited shares) available for future grants | 5,780,061 | ||
Award Date, 2018 | RSAs | LTIP | |||
STOCK-BASED COMPENSATION PLANS: | |||
Vesting period | 2 years | ||
Percentage of restriction to be lapsed in year one from grant date | 50.00% | ||
Percentage of restriction to be lapsed in year two from grant date | 50.00% | ||
Award Date, 2017 | RSAs | LTIP | |||
STOCK-BASED COMPENSATION PLANS: | |||
Vesting period | 2 years | ||
Percentage of restriction to be lapsed in year one from grant date | 50.00% | ||
Percentage of restriction to be lapsed in year two from grant date | 50.00% | ||
Award Date, 2016 | RSAs | LTIP | |||
STOCK-BASED COMPENSATION PLANS: | |||
Vesting period | 2 years | ||
Percentage of restriction to be lapsed in year one from grant date | 50.00% | ||
Percentage of restriction to be lapsed in year two from grant date | 50.00% |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Changes in Unvested Restricted Stock (Details) - RSAs | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
RSAs | |
Unvested shares at the beginning of the period (in shares) | shares | 152,180 |
Granted (in shares) | shares | 237,593 |
Vested (in shares) | shares | (101,385) |
Forfeited (in shares) | shares | (8,073) |
Unvested shares at the end of the period (in shares) | shares | 280,315 |
Weighted-Average Price | |
Unvested shares at the beginning of the period (in dollars per share) | $ / shares | $ 33.04 |
Granted (in dollars per share) | $ / shares | 34.95 |
Vested (in dollars per share) | $ / shares | 32.66 |
Forfeited (in dollars per shares) | $ / shares | 35.36 |
Unvested shares at the end of the period (in dollars per share) | $ / shares | $ 34.73 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of SAR Activity (Details) - SARs | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Stock Grants and SARs | |
Outstanding at the beginning of the year (in shares) | shares | 2,610,000 |
Granted (in shares) | shares | 450,000 |
Outstanding at the end of the year (in shares) | shares | 3,060,000 |
Weighted-Average Price | |
Outstanding at the beginning of the year (in dollars per share) | $ / shares | $ 22.65 |
Granted (in dollars per share) | $ / shares | 33.80 |
Outstanding at the end of the year (in dollars per share) | $ / shares | $ 24.29 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Inputs to Model the Value of Options Granted (Details) - Stock Appreciation Rights (SARs) And Employee Stock Option | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions used in valuation | |||
Risk-free interest rate, minimum (as a percent) | 1.20% | ||
Risk-free interest rate (as a percent) | 2.60% | 2.10% | |
Risk-free interest rate, maximum (as a percent) | 1.90% | ||
Expected years to exercise | 5 years | 5 years | 5 years |
Expected volatility, minimum (as a percent) | 37.50% | ||
Expected volatility (as a percent) | 36.20% | 37.00% | |
Expected volatility, maximum (as a percent) | 42.10% | ||
Annual dividend yield (as a percent) | 2.00% | 2.10% | |
Minimum | |||
Assumptions used in valuation | |||
Annual dividend yield (as a percent) | 2.10% | ||
Maximum | |||
Assumptions used in valuation | |||
Annual dividend yield (as a percent) | 2.20% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and equipment | |||
Property and equipment, gross | $ 1,453,265 | $ 1,486,637 | |
Less: accumulated depreciation | (770,131) | (748,339) | |
Total property and equipment, net | 683,134 | 738,298 | |
Capital lease depreciation expense | 3,100 | 4,200 | $ 4,200 |
Land and improvements | |||
Property and equipment | |||
Property and equipment, gross | 76,501 | 77,487 | |
Real estate held for development and sale | |||
Property and equipment | |||
Property and equipment, gross | 34,645 | 87,056 | |
Buildings and improvements | |||
Property and equipment | |||
Property and equipment, gross | $ 278,649 | 260,470 | |
Buildings and improvements | Minimum | |||
Property and equipment | |||
Estimated useful lives | 10 years | ||
Buildings and improvements | Maximum | |||
Property and equipment | |||
Estimated useful lives | 30 years | ||
Station equipment | |||
Property and equipment | |||
Property and equipment, gross | $ 744,294 | 779,779 | |
Station equipment | Minimum | |||
Property and equipment | |||
Estimated useful lives | 5 years | ||
Station equipment | Maximum | |||
Property and equipment | |||
Estimated useful lives | 10 years | ||
Office furniture and equipment | |||
Property and equipment | |||
Property and equipment, gross | $ 107,536 | 109,632 | |
Office furniture and equipment | Minimum | |||
Property and equipment | |||
Estimated useful lives | 5 years | ||
Office furniture and equipment | Maximum | |||
Property and equipment | |||
Estimated useful lives | 10 years | ||
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | $ 24,115 | 25,120 | |
Leasehold improvements | Minimum | |||
Property and equipment | |||
Estimated useful lives | 10 years | ||
Leasehold improvements | Maximum | |||
Property and equipment | |||
Estimated useful lives | 30 years | ||
Automotive equipment | |||
Property and equipment | |||
Property and equipment, gross | $ 62,663 | 63,513 | |
Automotive equipment | Minimum | |||
Property and equipment | |||
Estimated useful lives | 3 years | ||
Automotive equipment | Maximum | |||
Property and equipment | |||
Estimated useful lives | 5 years | ||
Capital leased assets | |||
Property and equipment | |||
Property and equipment, gross | $ 53,401 | 53,005 | |
Construction in progress | |||
Property and equipment | |||
Property and equipment, gross | $ 71,461 | $ 30,575 |
GOODWILL, INDEFINITE-LIVED IN_3
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Change in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in the carrying amount of goodwill related to continuing operations | ||
Goodwill, net | $ 2,124,033 | $ 1,990,746 |
Acquisitions | 133,392 | |
Measurement period adjustments related to prior year acquisitions | (131) | 307 |
Disposition of assets | (412) | |
Goodwill, net | 2,123,902 | 2,124,033 |
VIEs which are not primary beneficiary | ||
Change in the carrying amount of goodwill related to continuing operations | ||
Goodwill, net | 800 | |
Goodwill, net | 800 | 800 |
Broadcast | ||
Change in the carrying amount of goodwill related to continuing operations | ||
Goodwill, net | 2,053,410 | 1,933,831 |
Acquisitions | 119,426 | |
Measurement period adjustments related to prior year acquisitions | 1,369 | 153 |
Disposition of assets | 0 | |
Goodwill, net | 2,054,779 | 2,053,410 |
Other | ||
Change in the carrying amount of goodwill related to continuing operations | ||
Goodwill, net | 70,623 | 56,915 |
Acquisitions | 13,966 | |
Measurement period adjustments related to prior year acquisitions | (1,500) | 154 |
Disposition of assets | (412) | |
Goodwill, net | $ 69,123 | $ 70,623 |
GOODWILL, INDEFINITE-LIVED IN_4
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Amortized intangible assets: | |||||
Goodwill | $ 2,123,902,000 | $ 2,124,033,000 | $ 1,990,746,000 | ||
Accumulated goodwill impairment | 413,600,000 | 413,600,000 | |||
Goodwill impairment | $ 0 | 0 | 0 | ||
Amortization period, weighted average useful life | 14 years | ||||
Amortization of definite-lived intangible assets and other assets | $ 174,848,000 | 178,822,000 | [1] | $ 183,795,000 | [1] |
Minimum | |||||
Amortized intangible assets: | |||||
Amortization period | 5 years | ||||
Maximum | |||||
Amortized intangible assets: | |||||
Amortization period | 25 years | ||||
Broadcast licenses | |||||
Amortized intangible assets: | |||||
Impairment charge | $ 0 | $ 0 | |||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
GOODWILL, INDEFINITE-LIVED IN_5
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Broadcast Licenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Carrying amount of our broadcast licenses | ||
Beginning balance | $ 159,371 | $ 156,306 |
Acquisitions | 4,476 | |
Disposition of assets | (1,149) | (1,411) |
Ending balance | 158,222 | 159,371 |
Consolidated VIEs | ||
Carrying amount of our broadcast licenses | ||
Ending balance | 14,300 | |
Broadcast | ||
Carrying amount of our broadcast licenses | ||
Beginning balance | 131,920 | 132,906 |
Acquisitions | 425 | |
Disposition of assets | (1,149) | (1,411) |
Ending balance | 130,771 | 131,920 |
Other | ||
Carrying amount of our broadcast licenses | ||
Beginning balance | 27,451 | 23,400 |
Acquisitions | 4,051 | |
Disposition of assets | 0 | 0 |
Ending balance | $ 27,451 | $ 27,451 |
GOODWILL, INDEFINITE-LIVED IN_6
GOODWILL, INDEFINITE-LIVED INTANGIBLE ASSETS AND OTHER INTANGIBLE ASSETS - Definite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized intangible assets: | ||
Gross Carrying Amount | $ 2,598,151 | $ 2,726,624 |
Accumulated Amortization | (971,271) | (924,954) |
Finite-lived intangible assets, net | 1,626,880 | 1,801,670 |
Estimated amortization expense of the definite-lived intangible assets | ||
For the year ended December 31, 2019 | 173,508 | |
For the year ended December 31, 2020 | 172,945 | |
For the year ended December 31, 2021 | 171,902 | |
For the year ended December 31, 2022 | 168,135 | |
For the year ended December 31, 2023 | 159,236 | |
Thereafter | 781,154 | |
Finite-lived intangible assets, net | 1,626,880 | 1,801,670 |
Network affiliations | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 1,451,600 | 1,451,663 |
Accumulated Amortization | (604,470) | (514,575) |
Finite-lived intangible assets, net | 847,130 | 937,088 |
Estimated amortization expense of the definite-lived intangible assets | ||
Finite-lived intangible assets, net | 847,130 | 937,088 |
Customer relationships | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 1,113,134 | 1,229,006 |
Accumulated Amortization | (340,805) | (373,966) |
Finite-lived intangible assets, net | 772,329 | 855,040 |
Estimated amortization expense of the definite-lived intangible assets | ||
Finite-lived intangible assets, net | 772,329 | 855,040 |
Other intangible assets | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 33,417 | 45,955 |
Accumulated Amortization | (25,996) | (36,413) |
Finite-lived intangible assets, net | 7,421 | 9,542 |
Estimated amortization expense of the definite-lived intangible assets | ||
Finite-lived intangible assets, net | $ 7,421 | $ 9,542 |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Equity method investments | $ 72,371 | $ 123,923 |
Other equity investments | 44,625 | 45,222 |
Post-retirement plan assets | 28,081 | 22,659 |
Other | 39,754 | 49,841 |
Total other assets | $ 184,831 | $ 241,645 |
OTHER ASSETS - Summarized Finan
OTHER ASSETS - Summarized Financial Information, Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Revenues, net | $ 145,253 | $ 115,054 | $ 82,524 |
Operating (loss) income | (58,359) | (17,470) | 7,804 |
Net loss | (81,596) | (41,926) | $ (2,285) |
Equity Method Investment, Summarized Financial Information, Assets And Liabilities [Abstract] | |||
Current assets | 27,961 | 31,602 | |
Noncurrent assets | 710,831 | 777,619 | |
Current liabilities | 52,527 | 27,864 | |
Noncurrent liabilities | $ 543,604 | $ 550,260 |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Equity investments without readily determinable fair value | $ 24.5 | |
Impairment to carrying amount | 10 | |
Unfunded commitments related to private equity investment funds | $ 28.9 | $ 10.7 |
NOTES PAYABLE AND COMMERCIAL _3
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Schedule of Notes Payable, Capital Leases and Commercial Bank Financing (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Capital leases | $ 29,562 | $ 31,696 |
Total outstanding principal | 3,925,436 | 4,087,697 |
Less: Deferred financing costs and discount | (32,981) | (39,047) |
Less: Current portion | (40,634) | (159,382) |
Long-term debt | 3,849,891 | 3,887,601 |
Debt of variable interest entities | ||
Debt Instrument [Line Items] | ||
Outstanding debt amount | 25,281 | 29,614 |
Debt of other non-media related subsidiaries | ||
Debt Instrument [Line Items] | ||
Outstanding debt amount | 19,577 | 25,238 |
Term Loan | Term Loan A-1 | ||
Debt Instrument [Line Items] | ||
Outstanding debt amount | 0 | 117,370 |
Term Loan | Term Loan A-2 | ||
Debt Instrument [Line Items] | ||
Outstanding debt amount | 95,892 | 113,327 |
Term Loan | Term Loan B | ||
Debt Instrument [Line Items] | ||
Outstanding debt amount | $ 1,342,600 | $ 1,356,300 |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.38% | 5.375% |
Outstanding debt amount | $ 600,000 | $ 600,000 |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 6.13% | 6.125% |
Outstanding debt amount | $ 500,000 | $ 500,000 |
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.63% | |
Outstanding debt amount | $ 550,000 | $ 550,000 |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.88% | 5.875% |
Outstanding debt amount | $ 350,000 | $ 350,000 |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.13% | 5.125% |
Outstanding debt amount | $ 400,000 | $ 400,000 |
Debt Instrument, Redemption, Period One | Senior Notes | ||
Debt Instrument [Line Items] | ||
Percent redeemable | 35.00% | |
Debt Instrument, Redemption, Period Two | Senior Notes | ||
Debt Instrument [Line Items] | ||
Percent redeemable | 100.00% | |
Affiliated Entity | ||
Debt Instrument [Line Items] | ||
Capital leases | $ 12,524 | 14,152 |
Less: Capital leases - affiliate, current portion | $ (1,930) | $ (1,667) |
NOTES PAYABLE AND COMMERCIAL _4
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Schedule of Indebtedness Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2,019 | $ 46,153 | |
2,020 | 44,571 | |
2,021 | 690,270 | |
2,022 | 529,056 | |
2,023 | 21,801 | |
2023 and thereafter | 2,610,801 | |
Net carrying value of debt | 3,942,652 | |
Less: Deferred financing costs and discount | (32,981) | $ (39,047) |
Less: Amount representing interest | (17,216) | |
Net carrying value of debt | 3,892,455 | |
Capital Leases | ||
Debt Instrument [Line Items] | ||
2,019 | 5,110 | |
2,020 | 4,847 | |
2,021 | 4,861 | |
2,022 | 4,744 | |
2,023 | 4,819 | |
2023 and thereafter | 18,754 | |
Net carrying value of debt | 43,135 | |
Less: Amount representing interest | (13,573) | |
Net carrying value of debt | 29,562 | |
Notes and Bank Credit Agreement | ||
Debt Instrument [Line Items] | ||
2,019 | 38,065 | |
2,020 | 36,631 | |
2,021 | 682,363 | |
2,022 | 521,871 | |
2,023 | 14,663 | |
2023 and thereafter | 2,589,757 | |
Net carrying value of debt | 3,883,350 | |
Less: Deferred financing costs and discount | (32,981) | |
Net carrying value of debt | 3,850,369 | |
Affiliated Entity | Capital Leases | ||
Debt Instrument [Line Items] | ||
2,019 | 2,978 | |
2,020 | 3,093 | |
2,021 | 3,046 | |
2,022 | 2,441 | |
2,023 | 2,319 | |
2023 and thereafter | 2,290 | |
Net carrying value of debt | 16,167 | |
Less: Amount representing interest | (3,643) | |
Net carrying value of debt | $ 12,524 |
NOTES PAYABLE AND COMMERCIAL _5
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Additional Debt Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Interest expense | $ 291,976 | $ 212,315 | $ 211,143 |
Amortization of debt issuance costs and discounts | 7,500 | 7,700 | 10,800 |
Ticking fees | 1,100 | 1,400 | |
Bank Credit Agreement | |||
Debt Instrument [Line Items] | |||
Deferred financing costs related to amendment | 900 | $ 500 | $ 2,000 |
Tribune Media Company | |||
Debt Instrument [Line Items] | |||
Ticking fees | 99,800 | ||
Interest Expense | Tribune Media Company | |||
Debt Instrument [Line Items] | |||
Ticking fees | $ 78,500 |
NOTES PAYABLE AND COMMERCIAL _6
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Stated and Weighted Average Effective Interest Rates (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Term Loan | Term Loan A-2 | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 4.12% | 3.30% |
Term Loan | Term Loan A-2 | Minimum | ||
Debt Instrument [Line Items] | ||
Unrestricted cash first lien indebtedness ratio | 1.5 | |
Term Loan | Term Loan A-2 | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 2.25% | |
Term Loan | Term Loan A-2 | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 2.00% | |
Term Loan | Term Loan B | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 4.34% | 3.32% |
Term Loan | Term Loan B | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 2.25% | |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.38% | 5.375% |
Weighted average effective interest rate (as a percent) | 5.58% | 5.58% |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 6.13% | 6.125% |
Weighted average effective interest rate (as a percent) | 6.31% | 6.31% |
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.63% | |
Weighted average effective interest rate (as a percent) | 5.83% | 5.83% |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.88% | 5.875% |
Weighted average effective interest rate (as a percent) | 6.09% | 6.09% |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.13% | 5.125% |
Weighted average effective interest rate (as a percent) | 5.33% | 5.33% |
Revolving Credit Facility | Line of credit | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 0.00% | 0.00% |
Maximum borrowing capacity | $ 485,200,000 | |
Aggregate borrowings outstanding | $ 0 | |
Revolving Credit Facility | Line of credit | Minimum | ||
Debt Instrument [Line Items] | ||
Undrawn commitments fees (as a percent) | 0.25% | |
Revolving Credit Facility | Line of credit | Maximum | ||
Debt Instrument [Line Items] | ||
Unrestricted cash first lien indebtedness ratio | 3 | |
Undrawn commitments fees (as a percent) | 0.50% | |
Revolving Credit Facility | Line of credit | LIBOR | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 2.00% | |
Letter of Credit | Line of credit | ||
Debt Instrument [Line Items] | ||
Aggregate borrowings outstanding | $ 700,000 | $ 800,000 |
NOTES PAYABLE AND COMMERCIAL _7
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Bank Credit Agreement Narrative (Details) - USD ($) $ in Thousands | Jan. 03, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | |
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs, net | $ 32,981 | $ 39,047 | |||||
Loss on extinguishment of debt | $ 0 | $ 1,404 | [1] | $ 23,699 | |||
Threshold percentage of aggregate broadcast cash flows used for defining material third-party licensees | 20.00% | ||||||
Bank Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized discount and debt issuance costs, net | $ 11,600 | ||||||
Unamortized debt discount | 3,400 | ||||||
Amortization of financing costs | 7,700 | ||||||
Debt issuance costs | $ 500 | ||||||
Loss on extinguishment of debt | $ 1,400 | ||||||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
NOTES PAYABLE AND COMMERCIAL _8
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Senior Unsecured Notes, Debt of Variable Interest Entities and Other Non-Media Subsidiaries (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 3,892.5 | |
Debt of variable interest entities | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 4.87% | 3.59% |
Debt of other non-media related subsidiaries | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rate (as a percent) | 3.94% | 4.31% |
Fixed interest rate (as a percent) | 3.88% | |
LIBOR | Debt of variable interest entities | ||
Debt Instrument [Line Items] | ||
Interest rate margin (as a percent) | 2.50% | |
Debt Instrument, Redemption, Period One | Senior Notes | ||
Debt Instrument [Line Items] | ||
Percent redeemable | 35.00% | |
Debt Instrument, Redemption, Period Two | Senior Notes | ||
Debt Instrument [Line Items] | ||
Percent redeemable | 100.00% | |
Guarantee Obligations | ||
Debt Instrument [Line Items] | ||
Unconditional and irrevocably guaranteed debt | $ 76.5 | $ 74 |
Consolidated VIEs, aggregated | ||
Debt Instrument [Line Items] | ||
Debt and capital lease obligations | $ 24.4 | $ 29.3 |
NOTES PAYABLE AND COMMERCIAL _9
NOTES PAYABLE AND COMMERCIAL BANK FINANCING - Capital Leases (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Tower leases | |
Debt Instrument [Line Items] | |
Capital leases, term | 14 years |
PROGRAM CONTRACTS (Details)
PROGRAM CONTRACTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Future payments required under program contracts | ||
2,019 | $ 93,480 | |
2,020 | 17,245 | |
2,021 | 14,434 | |
2,022 | 11,458 | |
2,023 | 6,923 | |
Total | 143,540 | |
Less: Current portion | (93,480) | $ (108,053) |
Long-term portion of program contracts payable | $ 50,060 | $ 41,909 |
Lag period for film payments | 3 months | |
Program contract payments due in arrears | $ 23,600 | |
Non-cancelable commitments for future program rights | $ 70,800 |
COMMON STOCK (Details)
COMMON STOCK (Details) | Mar. 15, 2017USD ($)$ / sharesshares | Feb. 28, 2019$ / shares | Nov. 30, 2018$ / shares | Aug. 31, 2018$ / shares | Nov. 30, 2017$ / shares | Aug. 31, 2017$ / shares | May 31, 2017$ / shares | Nov. 30, 2016$ / shares | Aug. 31, 2016$ / shares | Mar. 01, 2019USD ($)shares | Dec. 31, 2018USD ($)vote$ / sharesshares | Dec. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Aug. 09, 2018USD ($) | Sep. 06, 2016USD ($) |
Common Stock | |||||||||||||||
Quarterly dividend declared (in dollars per share) | $ / shares | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | ||||||||
Dividends paid per share (USD per share) | $ / shares | $ 0.74 | $ 0.72 | |||||||||||||
Share repurchase program, authorized amount | $ 150,000,000 | ||||||||||||||
Additional authorized repurchase amount | $ 1,000,000,000 | ||||||||||||||
Subsequent Event | |||||||||||||||
Common Stock | |||||||||||||||
Quarterly dividend declared (in dollars per share) | $ / shares | $ 0.20 | ||||||||||||||
Number of shares repurchased (in shares) | shares | 3,500,000 | ||||||||||||||
Value of shares repurchased, gross | $ 105,000,000 | ||||||||||||||
Total remaining authorization amount | $ 763,100,000 | ||||||||||||||
Class A Common Stock | |||||||||||||||
Common Stock | |||||||||||||||
Number of votes holders of common stock are entitled for each share held | vote | 1 | ||||||||||||||
Quarterly dividend declared (in dollars per share) | $ / shares | $ 0.74 | 0.72 | $ 0.71 | ||||||||||||
Dividends paid per share (USD per share) | $ / shares | $ 0.74 | 0.72 | 0.71 | ||||||||||||
Number of shares repurchased (in shares) | shares | 7,800,000 | ||||||||||||||
Value of shares repurchased, gross | $ 220,900,000 | ||||||||||||||
Total remaining authorization amount | $ 868,000,000 | ||||||||||||||
Class B Common Stock | |||||||||||||||
Common Stock | |||||||||||||||
Number of votes holders of common stock are entitled for each share held | vote | 10 | ||||||||||||||
Number of Class B shares converted into Class A Common stock (in shares) | shares | 0 | ||||||||||||||
Quarterly dividend declared (in dollars per share) | $ / shares | $ 0.74 | 0.72 | 0.71 | ||||||||||||
Dividends paid per share (USD per share) | $ / shares | $ 0.74 | $ 0.72 | $ 0.71 | ||||||||||||
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | |||||||||||||||
Common Stock | |||||||||||||||
Interest rate (as a percent) | 6.13% | 6.125% | |||||||||||||
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | |||||||||||||||
Common Stock | |||||||||||||||
Interest rate (as a percent) | 5.88% | 5.875% | |||||||||||||
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | |||||||||||||||
Common Stock | |||||||||||||||
Interest rate (as a percent) | 5.38% | 5.375% | |||||||||||||
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | |||||||||||||||
Common Stock | |||||||||||||||
Interest rate (as a percent) | 5.13% | 5.125% | |||||||||||||
Senior Notes | 5.625% Senior Unsecured Notes. due 2024 | |||||||||||||||
Common Stock | |||||||||||||||
Interest rate (as a percent) | 5.625% | ||||||||||||||
Bank Credit Agreement | First Lien Indebtedness Ratio, 3.75 | Maximum | |||||||||||||||
Common Stock | |||||||||||||||
Unrestricted cash first lien indebtedness ratio | 3.75 | ||||||||||||||
Bank Credit Agreement | First Lien Indebtedness Ratio, 3.75-4.25 | |||||||||||||||
Common Stock | |||||||||||||||
Unrestricted cash first lien indebtedness ratio | 4.25 | ||||||||||||||
Amount of unrestricted annual cash payments (up to) | $ 200,000,000 | ||||||||||||||
Amount of unrestricted annual cash payments to be carry over to next year | 50,000,000 | ||||||||||||||
Additional aggregate basket (up to) | 250,000,000 | ||||||||||||||
Aggregate basket as long as no Event | $ 50,000,000 | ||||||||||||||
Public Offering | Class A Common Stock | |||||||||||||||
Common Stock | |||||||||||||||
Number of shares issued in public offering (in shares) | shares | 12,000,000 | ||||||||||||||
Price per share in public offering (in dollars per share) | $ / shares | $ 42 | ||||||||||||||
Net proceeds from public offering | $ 487,900,000 |
INCOME TAXES - Schedule of Prov
INCOME TAXES - Schedule of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision for income taxes: | |||
Federal | $ 58,785 | $ 77,477 | $ 113,737 |
State | 8,061 | 6,625 | 2,273 |
Current income tax expense (benefit) | 66,846 | 84,102 | 116,010 |
Deferred (benefit) provision for income taxes: | |||
Federal | (68,802) | (196,468) | 8,555 |
State | (33,819) | 37,006 | (2,437) |
Deferred income tax expense (benefit) | (102,621) | (159,462) | 6,118 |
Provision for income taxes | $ (35,775) | $ (75,360) | $ 122,128 |
INCOME TAXES - Federal Tax Rate
INCOME TAXES - Federal Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of federal income taxes at the applicable statutory rate to the recorded provision from continuing operations | ||||
Federal statutory rate (as a percent) | 21.00% | 35.00% | 35.00% | |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent [Abstract] | ||||
Federal tax reform (as a percent) | (19.90%) | (2.20%) | (0.40%) | |
State income taxes, net of federal tax benefit (as a percent) | (9.00%) | 5.00% | 0.20% | |
Non-deductible items (as a percent) | (4.90%) | 1.50% | 1.00% | |
Effect of consolidated VIEs (as a percent) | 1.60% | 1.00% | 1.20% | |
Federal tax reform (as a percent) | (1.40%) | (54.30%) | 0.00% | |
Domestic production activities deduction (as a percent) | 0.00% | (1.70%) | (3.40%) | |
Other (as a percent) | 0.90% | 0.60% | (0.30%) | |
Effective income tax rate (as a percent) | (11.70%) | (15.10%) | 33.30% | |
Benefit from investment tax credits | $ 58.2 | $ 8.3 | ||
Benefit from gain on sale of certain broadcast spectrum | 17.7 | |||
Federal tax reform | $ 272.1 | $ 4.3 | $ 272.1 |
INCOME TAXES - Deferred Taxes T
INCOME TAXES - Deferred Taxes Temporary Difference (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Net operating losses: | ||
Federal | $ 28,630 | $ 34,861 |
State | 74,339 | 75,754 |
Goodwill and intangible assets | 12,587 | 14,389 |
Other | 47,361 | 33,462 |
Deferred tax assets, gross | 162,917 | 158,466 |
Valuation allowance for deferred tax assets | (65,887) | (62,865) |
Total deferred tax assets | 97,030 | 95,601 |
Deferred Tax Liabilities: | ||
Goodwill and intangible assets | (427,339) | (514,776) |
Property & equipment, net | (80,461) | (80,630) |
Other | (2,483) | (15,431) |
Total deferred tax liabilities | (510,283) | (610,837) |
Net deferred tax liabilities | $ (413,253) | $ (515,236) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | $ 3,000 | $ 11,100 |
Valuation allowance for deferred tax assets | 65,887 | $ 62,865 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Gross net operating losses | 136,300 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Gross net operating losses | $ 1,500,000 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at the beginning of the period | $ 7,237 | $ 4,739 | $ 3,257 |
Additions related to prior year tax positions | 120 | 2,019 | 420 |
Additions related to current year tax positions | 1,600 | 610 | 2,053 |
Reductions related to prior year tax positions | (453) | 0 | 0 |
Reductions related to settlements with taxing authorities | (436) | (131) | 0 |
Reductions related to expiration of the applicable statute of limitations | (1,493) | 0 | (991) |
Balance at the end of the period | $ 6,575 | $ 7,237 | $ 4,739 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Litigation (Details) $ in Millions | Aug. 09, 2018USD ($) | Aug. 07, 2018lawsuit | Dec. 21, 2017USD ($) |
Unfavorable Regulatory Action | |||
Loss Contingencies [Line Items] | |||
Money damages sought | $ 13.4 | ||
Various Cases Alleging Violation Of Sherman Antitrust Act | |||
Loss Contingencies [Line Items] | |||
Number of new claims | lawsuit | 22 | ||
Breach Of Merger Agreement | |||
Loss Contingencies [Line Items] | |||
Money damages sought | $ 1,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases | |||
Rent expense from continuing operations under leases | $ 34,500 | $ 28,700 | $ 26,000 |
Future minimum payments under the leases | |||
2,019 | 32,108 | ||
2,020 | 31,287 | ||
2,021 | 29,547 | ||
2,022 | 26,702 | ||
2,023 | 24,325 | ||
2024 and thereafter | 157,816 | ||
Total | $ 301,785 | ||
Minimum | |||
Operating Leases | |||
Operating leases term | 1 year | ||
Maximum | |||
Operating Leases | |||
Operating leases term | 25 years |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Changes in the Rules on Television Ownership (Details) - station | Jul. 29, 2016 | Dec. 31, 2018 | Sep. 06, 2016 |
Loss Contingencies [Line Items] | |||
Loss contingency period for ongoing compliance monitoring | 36 months | ||
FCC nation ownership cap, % of domestic households reached | 39.00% | ||
Number of television stations owned | 191 | ||
LMA | |||
Loss Contingencies [Line Items] | |||
Number of separately owned television stations having programming agreement | 2 | ||
Number of stations that programs substantial portions of the broadcast day and sells advertising time to programming segments | 1 | ||
FCC Consent Decree Settlement | |||
Loss Contingencies [Line Items] | |||
Number of television stations owned | 34 | ||
Loss contingency, % of domestic households reached, UHR discount applied | 25.00% |
VARIABLE INTEREST ENTITIES - Sc
VARIABLE INTEREST ENTITIES - Schedule of Variable Interest Entities Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | |||
Accounts receivable | $ 598,597 | $ 566,464 | |
Other current assets | 60,732 | 54,310 | |
Total current assets | 1,783,906 | 1,714,747 | |
Program contract costs, less current portion | 11,217 | 3,202 | |
Property and equipment, net | 683,134 | 738,298 | |
Definite-lived intangible assets, net | 1,626,880 | 1,801,670 | |
Other assets | 184,831 | 241,645 | |
Total assets | [1] | 6,572,092 | 6,784,470 |
Current liabilities: | |||
Other current liabilities | 116,794 | 194,897 | |
Long-term liabilities | |||
Notes payable, capital leases and commercial bank financing, less current portion | 3,849,891 | 3,887,601 | |
Program contracts payable, less current portion | 50,060 | 41,909 | |
Other long-term liabilities | 85,983 | 79,009 | |
Total liabilities | [1] | 4,971,772 | 5,250,104 |
Consolidated VIEs, aggregated | |||
CURRENT ASSETS: | |||
Accounts receivable | 28,276 | 19,566 | |
Other current assets | 6,773 | 8,937 | |
Total current assets | 35,049 | 28,503 | |
Program contract costs, less current portion | 2,058 | 822 | |
Property and equipment, net | 5,346 | 6,215 | |
Goodwill and indefinite-lived intangible assets | 15,064 | 15,064 | |
Definite-lived intangible assets, net | 67,680 | 74,442 | |
Other assets | 2,374 | 5,601 | |
Total assets | 127,571 | 130,647 | |
Current liabilities: | |||
Other current liabilities | 18,298 | 23,564 | |
Long-term liabilities | |||
Notes payable, capital leases and commercial bank financing, less current portion | 19,278 | 23,217 | |
Program contracts payable, less current portion | 8,474 | 11,213 | |
Other long-term liabilities | 650 | 650 | |
Total liabilities | $ 46,700 | $ 58,644 | |
[1] | Our consolidated total assets as of December 31, 2018 and 2017 include total assets of variable interest entities (VIEs) of $127.6 million and $130.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2018 and 2017 include total liabilities of the VIEs of $22.3 million and $27.0 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 12. Variable Interest Entities |
VARIABLE INTEREST ENTITIES - Na
VARIABLE INTEREST ENTITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entities | |||
Total capital leased assets excluded from VIE consolidation | $ 29,562 | $ 31,696 | |
Consolidated VIEs, aggregated | Minimum | |||
Variable Interest Entities | |||
Outsourcing agreement initial term | 5 years | ||
Consolidated VIEs | Eliminations | |||
Variable Interest Entities | |||
Liabilities associated with the certain outsourcing agreements and purchase options | $ 124,500 | 116,500 | |
Consolidated VIEs | Cunningham | Eliminations | |||
Variable Interest Entities | |||
Total capital leased assets excluded from VIE consolidation | 4,500 | 4,500 | |
VIEs which are not primary beneficiary | |||
Variable Interest Entities | |||
Carrying amount of investments in VIEs | 71,300 | 115,700 | |
Gain (loss) on equity investments | $ (45,100) | $ (5,300) | $ 2,500 |
RELATED PERSON TRANSACTIONS - T
RELATED PERSON TRANSACTIONS - Transactions With Our Controlling Shareholders (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related person transactions | |||
Capital lease payable, interest | $ (17,216) | ||
Leased assets or facilities | Entities owned by the controlling shareholders | |||
Related person transactions | |||
Amount paid | 5,000 | $ 5,100 | $ 5,100 |
Capital Leases | Entities owned by the controlling shareholders | |||
Related person transactions | |||
Capital leases payable, net of interest | 12,500 | 14,200 | |
Capital lease payable, interest | (3,600) | (4,900) | |
Charter Aircraft | Controlling shareholders | |||
Related person transactions | |||
Aircraft expense | $ 1,700 | $ 1,900 | $ 1,400 |
RELATED PERSON TRANSACTIONS - C
RELATED PERSON TRANSACTIONS - Cunningham Broadcasting Corporation (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)renewal | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related person transactions | |||||||||||||
Revenue | $ 893,325 | $ 766,261 | $ 730,143 | $ 665,352 | $ 712,512 | $ 644,532 | $ 652,235 | $ 626,936 | $ 3,055,081 | $ 2,636,215 | $ 2,622,510 | ||
LMA | Cunningham | |||||||||||||
Related person transactions | |||||||||||||
Payments to related party | 10,000 | 9,100 | 8,900 | ||||||||||
Barrington Broadcasting Company, LLC | Cunningham | |||||||||||||
Related person transactions | |||||||||||||
Revenue | $ 171,000 | 124,800 | 114,900 | ||||||||||
Cunningham | Cunningham License Related Assets | |||||||||||||
Related person transactions | |||||||||||||
Agreement renewal period | 8 years | ||||||||||||
Cunningham | Affiliated Entity | |||||||||||||
Related person transactions | |||||||||||||
Percentage of the total capital stock held in the related party, none of which have voting rights | 100.00% | 100.00% | |||||||||||
Remaining purchase price | $ 53,600 | $ 53,600 | |||||||||||
Purchase options broadcast stations | $ 200 | $ 200 | |||||||||||
Equipment purchase agreement, consideration amount | $ 700 | ||||||||||||
Equipment purchase agreement, annual service consideration | $ 200 | ||||||||||||
Share service agreement, annual service consideration | $ 1,000 | ||||||||||||
Cunningham | LMA | Affiliated Entity | |||||||||||||
Related person transactions | |||||||||||||
Number of additional renewal terms | renewal | 2 | ||||||||||||
Agreement renewal period | 5 years | ||||||||||||
Cunningham | Minimum | LMA | Affiliated Entity | |||||||||||||
Related person transactions | |||||||||||||
Percentage of net broadcast revenue used to determine annual LMA fees required to be paid | 3.00% | 3.00% | |||||||||||
Amount used to determine annual LMA fees required to be paid | $ 5,000 | $ 5,000 | |||||||||||
Annual increase in aggregate purchase price (as a percent) | 6.00% | 6.00% | |||||||||||
Guarantee Obligations | |||||||||||||
Related person transactions | |||||||||||||
Unconditional and irrevocably guaranteed debt | $ 76,500 | 74,000 | $ 76,500 | 74,000 | |||||||||
Guarantee Obligations | Cunningham | Affiliated Entity | |||||||||||||
Related person transactions | |||||||||||||
Unconditional and irrevocably guaranteed debt | 50,300 | 50,300 | |||||||||||
Deferred financing costs | 700 | 700 | |||||||||||
Consolidated VIEs | Cunningham | Affiliated Entity | |||||||||||||
Related person transactions | |||||||||||||
Long-term debt | 10,000 | 10,000 | |||||||||||
Eliminations | |||||||||||||
Related person transactions | |||||||||||||
Revenue | (93,620) | (80,882) | $ (108,190) | ||||||||||
Eliminations | Cunningham | Consolidated VIEs | |||||||||||||
Related person transactions | |||||||||||||
Liabilities treated as prepayment of purchase price | $ 47,400 | $ 44,000 | $ 47,400 | $ 44,000 |
RELATED PERSON TRANSACTIONS - A
RELATED PERSON TRANSACTIONS - Atlantic Automotive Corporation and Leased Property by Real Estate Venture (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Advertising time | Atlantic Automotive | |||
Related person transactions | |||
Amount received | $ 0.2 | $ 0.6 | |
Leased assets or facilities | Chief Executive Officer | |||
Related person transactions | |||
Amount received | $ 0.7 | $ 0.6 | $ 1 |
RELATED PERSON TRANSACTIONS - O
RELATED PERSON TRANSACTIONS - Other Transactions With Equity Method Investees (Details) - 120 Sports Holding, LLC - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | |
Related person transactions | ||
Notes receivable | $ 3,750 | |
Fixed interest rate | 6.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income (Numerator) | |||||||||||
Net income | $ 207,694 | $ 65,000 | $ 29,310 | $ 43,994 | $ 444,800 | $ 32,566 | $ 46,035 | $ 70,703 | $ 345,998 | $ 594,104 | $ 250,762 |
Net income attributable to noncontrolling interests | (4,757) | (18,091) | (5,461) | ||||||||
Numerator for diluted earnings available to common shareholders | $ 341,241 | $ 576,013 | $ 245,301 | ||||||||
Shares (Denominator) | |||||||||||
Weighted average common shares outstanding (in shares) | 100,913 | 99,844 | 93,567 | ||||||||
Dilutive effect of outstanding stock settled appreciation rights and stock options | 805 | 945 | 866 | ||||||||
Weighted-average common and common equivalent shares outstanding (in shares) | 101,718 | 100,789 | 94,433 | ||||||||
Antidilutive Securities Excluded from Computation | |||||||||||
Antidilutive dilutive securities excluded from calculation of diluted earnings per share (in shares) | 1,325 | 450 | 556 |
SEGMENT DATA - Narrative (Detai
SEGMENT DATA - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)market | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2018market | |
Segment data | ||||
Number of markets | market | 89 | |||
Intersegment Loans | $ | $ 155.8 | $ 159.8 | ||
Intersegment Interest Expense | $ | $ 15.3 | $ 18.5 | $ 24.4 | |
Operating segments | Broadcast | ||||
Segment data | ||||
Number of markets | market | 89 |
SEGMENT DATA - Segment Financia
SEGMENT DATA - Segment Financial Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Segment data | |||||||||||||||
Revenue | $ 893,325 | $ 766,261 | $ 730,143 | $ 665,352 | $ 712,512 | $ 644,532 | $ 652,235 | $ 626,936 | $ 3,055,081 | $ 2,636,215 | $ 2,622,510 | ||||
Depreciation of property and equipment | 105,240 | 97,103 | [1] | 98,529 | [1] | ||||||||||
Amortization of definite-lived intangible assets and other assets | 174,848 | 178,822 | [1] | 183,795 | [1] | ||||||||||
Amortization of program contract costs and net realizable value adjustments | 100,899 | 115,523 | 127,880 | ||||||||||||
General and administrative overhead expenses | 111,070 | 113,253 | 73,556 | ||||||||||||
Gain on asset dispositions and other, net of impairment | (40,063) | (278,872) | (6,029) | ||||||||||||
Operating income | 262,954 | $ 157,810 | $ 131,583 | $ 107,314 | 357,581 | $ 103,447 | $ 118,849 | $ 157,629 | 659,661 | 737,506 | 602,853 | ||||
Interest expense | 291,976 | 212,315 | 211,143 | ||||||||||||
(Loss) income from equity method investments | (60,831) | (14,307) | 906 | ||||||||||||
Goodwill | 2,123,902 | 2,124,033 | 2,123,902 | 2,124,033 | 1,990,746 | ||||||||||
Assets | [2] | 6,572,092 | 6,784,470 | 6,572,092 | 6,784,470 | ||||||||||
Capital expenditures | 105,061 | 83,812 | [1] | 94,465 | [1] | ||||||||||
Broadcast | |||||||||||||||
Segment data | |||||||||||||||
Revenue | 2,714,663 | 2,393,641 | 2,416,985 | ||||||||||||
Goodwill | 2,054,779 | 2,053,410 | 2,054,779 | 2,053,410 | 1,933,831 | ||||||||||
Other operating divisions segment | |||||||||||||||
Segment data | |||||||||||||||
Revenue | 340,418 | 242,574 | 205,525 | ||||||||||||
Goodwill | 69,123 | 70,623 | 69,123 | 70,623 | 56,915 | ||||||||||
Operating segments | Broadcast | |||||||||||||||
Segment data | |||||||||||||||
Revenue | 2,714,663 | 2,393,641 | 2,416,985 | ||||||||||||
Depreciation of property and equipment | 97,703 | 88,751 | 91,573 | ||||||||||||
Amortization of definite-lived intangible assets and other assets | 153,720 | 155,640 | 155,479 | ||||||||||||
Amortization of program contract costs and net realizable value adjustments | 100,899 | 115,523 | 127,880 | ||||||||||||
General and administrative overhead expenses | 100,241 | 101,680 | 67,035 | ||||||||||||
Gain on asset dispositions and other, net of impairment | (99,977) | (225,770) | (4,647) | ||||||||||||
Operating income | 751,341 | 724,110 | 639,422 | ||||||||||||
Interest expense | 5,734 | 5,285 | 5,641 | ||||||||||||
(Loss) income from equity method investments | 0 | 0 | 0 | ||||||||||||
Goodwill | 2,054,779 | 2,053,410 | 2,054,779 | 2,053,410 | |||||||||||
Assets | 4,797,420 | 5,267,986 | 4,797,420 | 5,267,986 | |||||||||||
Capital expenditures | 94,812 | 63,163 | |||||||||||||
Operating segments | Other operating divisions segment | |||||||||||||||
Segment data | |||||||||||||||
Revenue | 340,418 | 242,574 | 205,525 | ||||||||||||
Depreciation of property and equipment | 7,461 | 7,368 | 5,772 | ||||||||||||
Amortization of definite-lived intangible assets and other assets | 21,128 | 23,182 | 28,316 | ||||||||||||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | 0 | ||||||||||||
General and administrative overhead expenses | 913 | 1,009 | 2,459 | ||||||||||||
Gain on asset dispositions and other, net of impairment | 60,032 | (53,102) | (1,427) | ||||||||||||
Operating income | (81,805) | 24,943 | (31,258) | ||||||||||||
Interest expense | 803 | 1,835 | 6,371 | ||||||||||||
(Loss) income from equity method investments | (60,831) | (14,307) | 906 | ||||||||||||
Goodwill | 69,123 | 70,623 | 69,123 | 70,623 | |||||||||||
Assets | 720,704 | 769,919 | 720,704 | 769,919 | |||||||||||
Capital expenditures | 5,155 | 5,546 | |||||||||||||
Corporate | |||||||||||||||
Segment data | |||||||||||||||
Revenue | 0 | 0 | 0 | ||||||||||||
Depreciation of property and equipment | 76 | 984 | 1,184 | ||||||||||||
Amortization of definite-lived intangible assets and other assets | 0 | 0 | 0 | ||||||||||||
Amortization of program contract costs and net realizable value adjustments | 0 | 0 | 0 | ||||||||||||
General and administrative overhead expenses | 9,916 | 10,564 | 4,062 | ||||||||||||
Gain on asset dispositions and other, net of impairment | (118) | 0 | 45 | ||||||||||||
Operating income | (9,875) | (11,547) | (5,311) | ||||||||||||
Interest expense | 285,439 | 205,195 | 199,131 | ||||||||||||
(Loss) income from equity method investments | 0 | 0 | $ 0 | ||||||||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||||||
Assets | $ 1,053,968 | $ 746,565 | 1,053,968 | 746,565 | |||||||||||
Capital expenditures | 5,094 | 15,103 | |||||||||||||
Spectrum Auction | |||||||||||||||
Segment data | |||||||||||||||
Gain on asset dispositions and other, net of impairment | (83,300) | (225,300) | |||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Alarm Funding Associates | |||||||||||||||
Segment data | |||||||||||||||
Gain recognized on sale of broadcast assets | $ 53,000 | 53,000 | |||||||||||||
Gain (loss) on disposal, attributable to non-controlling interest | $ 12,300 | $ 12,300 | |||||||||||||
Consolidated Real Estate Development Project | |||||||||||||||
Segment data | |||||||||||||||
Asset impairment charges | 59,600 | ||||||||||||||
Consolidated Real Estate Development Project | Operating segments | Other operating divisions segment | |||||||||||||||
Segment data | |||||||||||||||
Asset impairment charges | $ 59,600 | ||||||||||||||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies | ||||||||||||||
[2] | Our consolidated total assets as of December 31, 2018 and 2017 include total assets of variable interest entities (VIEs) of $127.6 million and $130.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2018 and 2017 include total liabilities of the VIEs of $22.3 million and $27.0 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 12. Variable Interest Entities |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
FAIR VALUE MEASUREMENTS: | ||
Unamortized discount and debt issuance costs, net | $ 32,981 | $ 39,047 |
Debt of variable interest entities | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 25,281 | 29,614 |
Debt of variable interest entities | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 25,281 | 29,614 |
Debt of other non-media related subsidiaries | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 19,577 | 25,238 |
Debt of other non-media related subsidiaries | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 19,577 | $ 25,238 |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 6.13% | 6.125% |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 500,000 | $ 500,000 |
Interest rate (as a percent) | 6.125% | |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 503,750 | $ 515,535 |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.88% | 5.875% |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 350,000 | $ 350,000 |
Interest rate (as a percent) | 5.875% | |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 326,375 | 363,475 |
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.63% | |
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 550,000 | 550,000 |
Interest rate (as a percent) | 5.625% | |
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 515,625 | $ 568,205 |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.38% | 5.375% |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 600,000 | $ 600,000 |
Interest rate (as a percent) | 5.375% | |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 598,500 | $ 610,440 |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | ||
FAIR VALUE MEASUREMENTS: | ||
Interest rate (as a percent) | 5.13% | 5.125% |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 400,000 | $ 400,000 |
Interest rate (as a percent) | 5.125% | |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 353,000 | 396,088 |
Term Loan | Term Loan A-1 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 0 | 117,370 |
Term Loan | Term Loan A-1 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 0 | 117,370 |
Term Loan | Term Loan A-2 | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 95,892 | 113,327 |
Term Loan | Term Loan A-2 | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 92,057 | 113,327 |
Term Loan | Term Loan B | Level 2 | Carrying Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | 1,342,600 | 1,356,300 |
Term Loan | Term Loan B | Level 2 | Fair Value | ||
FAIR VALUE MEASUREMENTS: | ||
Debt instrument | $ 1,275,470 | $ 1,357,995 |
CONDENSED CONSOLIDATED FINANC_3
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | |||
Consolidated total debt | $ 3,892.5 | ||
Subsidiary Issuer | |||
Condensed Financial Statements, Captions [Line Items] | |||
Consolidated total debt | 3,843.5 | ||
Amount of debt guaranteed by parent | $ 3,831 | ||
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.38% | 5.375% | |
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Sinclair Television Group, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.375% | ||
Senior Notes | 5.375% Senior Unsecured Notes due 2021 | Guarantor Subsidiaries and KDSM, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.375% | ||
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.63% | ||
Senior Notes | 5.625% Senior Unsecured Notes due 2024 | Guarantor Subsidiaries and KDSM, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.625% | ||
Senior Notes | 5.625% Senior Notes, due | Sinclair Television Group, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.625% | ||
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 6.13% | 6.125% | |
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Sinclair Television Group, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 6.125% | ||
Senior Notes | 6.125% Senior Unsecured Notes due 2022 | Guarantor Subsidiaries and KDSM, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 6.125% | ||
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.88% | 5.875% | |
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Sinclair Television Group, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.875% | ||
Senior Notes | 5.875% Senior Unsecured Notes due 2026 | Guarantor Subsidiaries and KDSM, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.875% | ||
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.13% | 5.125% | |
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Sinclair Television Group, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.125% | ||
Senior Notes | 5.125% Senior Unsecured Notes due 2027 | Guarantor Subsidiaries and KDSM, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 5.125% | ||
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 637.50% | ||
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | Sinclair Television Group, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 6.375% | ||
Senior Notes | 6.375% Senior Unsecured Notes due 2021 | Guarantor Subsidiaries and KDSM, LLC | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest rate (as a percent) | 6.375% |
CONDENSED CONSOLIDATED FINANC_4
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 1,060,330 | $ 681,326 | ||
Restricted cash, current | 0 | 313,110 | ||
Accounts and other receivables | 598,597 | 566,464 | ||
Other current assets | 124,979 | 153,847 | ||
Total current assets | 1,783,906 | 1,714,747 | ||
Property and equipment, net | 683,134 | 738,298 | ||
Investment in consolidated subsidiaries | 0 | |||
Other long-term assets | 196,048 | 246,351 | ||
Goodwill | 2,123,902 | 2,124,033 | $ 1,990,746 | |
Indefinite-lived intangible assets | 158,222 | 159,371 | $ 156,306 | |
Definite-lived intangible assets, net | 1,626,880 | 1,801,670 | ||
Total assets | [1] | 6,572,092 | 6,784,470 | |
Accounts payable and accrued liabilities | 413,227 | 370,403 | ||
Current portion of long-term debt | 42,564 | 161,049 | ||
Other current liabilities | 116,794 | 194,897 | ||
Total current liabilities | 572,585 | 726,349 | ||
Long-term debt | 3,849,891 | 3,887,601 | ||
Other liabilities | 549,296 | 636,154 | ||
Total liabilities | [1] | 4,971,772 | 5,250,104 | |
Total Sinclair Broadcast Group shareholders’ equity | 1,638,836 | 1,568,738 | ||
Noncontrolling interests | (38,516) | (34,372) | ||
Total liabilities and equity | 6,572,092 | 6,784,470 | ||
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash, current | 0 | |||
Accounts and other receivables | 0 | 0 | ||
Other current assets | 3,235 | 3,034 | ||
Total current assets | 3,235 | 3,034 | ||
Property and equipment, net | 754 | 829 | ||
Investment in consolidated subsidiaries | 1,604,234 | 1,537,337 | ||
Other long-term assets | 31,002 | 31,757 | ||
Goodwill | 0 | 0 | ||
Indefinite-lived intangible assets | 0 | 0 | ||
Definite-lived intangible assets, net | 0 | 0 | ||
Total assets | 1,639,225 | 1,572,957 | ||
Accounts payable and accrued liabilities | 100 | 1,100 | ||
Current portion of long-term debt | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 100 | 1,100 | ||
Long-term debt | 0 | 0 | ||
Other liabilities | 289 | 3,119 | ||
Total liabilities | 389 | 4,219 | ||
Total Sinclair Broadcast Group shareholders’ equity | 1,638,836 | 1,568,738 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 1,639,225 | 1,572,957 | ||
Reportable legal entities | Sinclair Television Group, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 961,963 | 645,830 | ||
Restricted cash, current | 0 | |||
Accounts and other receivables | 0 | 0 | ||
Other current assets | 5,548 | 5,758 | ||
Total current assets | 967,511 | 651,588 | ||
Property and equipment, net | 31,773 | 31,111 | ||
Investment in consolidated subsidiaries | 3,654,263 | 4,116,241 | ||
Other long-term assets | 851,170 | 770,312 | ||
Goodwill | 0 | 0 | ||
Indefinite-lived intangible assets | 0 | 0 | ||
Definite-lived intangible assets, net | 0 | 0 | ||
Total assets | 5,504,717 | 5,569,252 | ||
Accounts payable and accrued liabilities | 78,814 | 84,326 | ||
Current portion of long-term debt | 31,135 | 148,505 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 109,949 | 232,831 | ||
Long-term debt | 3,775,489 | 3,799,987 | ||
Other liabilities | 40,132 | 38,282 | ||
Total liabilities | 3,925,570 | 4,071,100 | ||
Total Sinclair Broadcast Group shareholders’ equity | 1,579,147 | 1,498,152 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 5,504,717 | 5,569,252 | ||
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 19,648 | 12,273 | ||
Restricted cash, current | 311,110 | |||
Accounts and other receivables | 530,543 | 530,273 | ||
Other current assets | 103,111 | 145,637 | ||
Total current assets | 653,302 | 999,293 | ||
Property and equipment, net | 593,755 | 586,950 | ||
Investment in consolidated subsidiaries | 4,179 | 4,179 | ||
Other long-term assets | 119,187 | 104,363 | ||
Goodwill | 2,120,035 | 2,120,166 | ||
Indefinite-lived intangible assets | 143,924 | 145,073 | ||
Definite-lived intangible assets, net | 1,608,748 | 1,781,045 | ||
Total assets | 5,243,130 | 5,741,069 | ||
Accounts payable and accrued liabilities | 273,444 | 261,266 | ||
Current portion of long-term debt | 4,100 | 3,445 | ||
Other current liabilities | 107,051 | 180,616 | ||
Total current liabilities | 384,595 | 445,327 | ||
Long-term debt | 36,551 | 39,730 | ||
Other liabilities | 1,169,184 | 1,141,266 | ||
Total liabilities | 1,590,330 | 1,626,323 | ||
Total Sinclair Broadcast Group shareholders’ equity | 3,652,800 | 4,114,746 | ||
Noncontrolling interests | 0 | 0 | ||
Total liabilities and equity | 5,243,130 | 5,741,069 | ||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 78,719 | 23,223 | ||
Restricted cash, current | 2,000 | |||
Accounts and other receivables | 68,054 | 36,191 | ||
Other current assets | 37,157 | 9,687 | ||
Total current assets | 183,930 | 71,101 | ||
Property and equipment, net | 70,223 | 132,010 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Other long-term assets | 165,064 | 208,367 | ||
Goodwill | 3,867 | 3,867 | ||
Indefinite-lived intangible assets | 14,298 | 14,298 | ||
Definite-lived intangible assets, net | 70,409 | 77,944 | ||
Total assets | 507,791 | 507,587 | ||
Accounts payable and accrued liabilities | 85,875 | 36,029 | ||
Current portion of long-term debt | 7,842 | 9,645 | ||
Other current liabilities | 9,743 | 14,281 | ||
Total current liabilities | 103,460 | 59,955 | ||
Long-term debt | 381,913 | 381,127 | ||
Other liabilities | 173,197 | 187,569 | ||
Total liabilities | 658,570 | 628,651 | ||
Total Sinclair Broadcast Group shareholders’ equity | (107,825) | (82,051) | ||
Noncontrolling interests | (42,954) | (39,013) | ||
Total liabilities and equity | 507,791 | 507,587 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash, current | 0 | |||
Accounts and other receivables | 0 | 0 | ||
Other current assets | (24,072) | (10,269) | ||
Total current assets | (24,072) | (10,269) | ||
Property and equipment, net | (13,371) | (12,602) | ||
Investment in consolidated subsidiaries | (5,262,676) | (5,657,757) | ||
Other long-term assets | (970,375) | (868,448) | ||
Goodwill | 0 | 0 | ||
Indefinite-lived intangible assets | 0 | 0 | ||
Definite-lived intangible assets, net | (52,277) | (57,319) | ||
Total assets | (6,322,771) | (6,606,395) | ||
Accounts payable and accrued liabilities | (25,006) | (12,318) | ||
Current portion of long-term debt | (513) | (546) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (25,519) | (12,864) | ||
Long-term debt | (344,062) | (333,243) | ||
Other liabilities | (833,506) | (734,082) | ||
Total liabilities | (1,203,087) | (1,080,189) | ||
Total Sinclair Broadcast Group shareholders’ equity | (5,124,122) | (5,530,847) | ||
Noncontrolling interests | 4,438 | 4,641 | ||
Total liabilities and equity | $ (6,322,771) | $ (6,606,395) | ||
[1] | Our consolidated total assets as of December 31, 2018 and 2017 include total assets of variable interest entities (VIEs) of $127.6 million and $130.6 million , respectively, which can only be used to settle the obligations of the VIEs. Our consolidated total liabilities as of December 31, 2018 and 2017 include total liabilities of the VIEs of $22.3 million and $27.0 million , respectively, for which the creditors of the VIEs have no recourse to us. See Note 12. Variable Interest Entities |
CONDENSED CONSOLIDATED FINANC_5
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenue | $ 893,325 | $ 766,261 | $ 730,143 | $ 665,352 | $ 712,512 | $ 644,532 | $ 652,235 | $ 626,936 | $ 3,055,081 | $ 2,636,215 | $ 2,622,510 | ||
Media production expenses | 1,191,016 | 1,064,144 | 955,604 | ||||||||||
Selling, general and administrative | 740,989 | 646,790 | 575,145 | ||||||||||
Depreciation, amortization and other operating expenses | 463,415 | 187,775 | 488,908 | ||||||||||
Total operating expenses | 2,395,420 | 1,898,709 | 2,019,657 | ||||||||||
Operating income | 262,954 | 157,810 | 131,583 | 107,314 | 357,581 | 103,447 | 118,849 | 157,629 | 659,661 | 737,506 | 602,853 | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Interest expense | (291,976) | (212,315) | (211,143) | ||||||||||
Other income (expense) | (57,462) | (6,447) | (18,820) | ||||||||||
Total other expense | (349,438) | (218,762) | (229,963) | ||||||||||
Income tax benefit (provision) | 35,775 | 75,360 | (122,128) | ||||||||||
NET INCOME | 345,998 | 594,104 | [1] | 250,762 | [1] | ||||||||
Net income attributable to the noncontrolling interests | (4,757) | (18,091) | (5,461) | ||||||||||
Net income attributable to Sinclair Broadcast Group | $ 206,201 | $ 63,875 | $ 28,042 | $ 43,123 | $ 443,529 | $ 30,637 | $ 44,645 | $ 57,202 | 341,241 | 576,013 | 245,301 | ||
Comprehensive income (loss) | 346,637 | 593,488 | 250,789 | ||||||||||
Reportable legal entities | Sinclair Broadcast Group, Inc. | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenue | 0 | 0 | 0 | ||||||||||
Media production expenses | 0 | 0 | 0 | ||||||||||
Selling, general and administrative | 9,916 | 9,204 | 4,062 | ||||||||||
Depreciation, amortization and other operating expenses | 483 | 984 | 1,064 | ||||||||||
Total operating expenses | 10,399 | 10,188 | 5,126 | ||||||||||
Operating income | (10,399) | (10,188) | (5,126) | ||||||||||
Equity in earnings of consolidated subsidiaries | 348,090 | 579,954 | 244,580 | ||||||||||
Interest expense | (1) | (88) | (238) | ||||||||||
Other income (expense) | 1,856 | 1,678 | 3,613 | ||||||||||
Total other expense | 349,945 | 581,544 | 247,955 | ||||||||||
Income tax benefit (provision) | 1,695 | 4,657 | 2,472 | ||||||||||
NET INCOME | 341,241 | 576,013 | 245,301 | ||||||||||
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Sinclair Broadcast Group | 341,241 | 576,013 | 245,301 | ||||||||||
Comprehensive income (loss) | 346,637 | 593,488 | 250,789 | ||||||||||
Reportable legal entities | Sinclair Television Group, Inc. | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenue | 7 | 0 | 0 | ||||||||||
Media production expenses | 2 | 0 | 0 | ||||||||||
Selling, general and administrative | 100,251 | 102,930 | 70,503 | ||||||||||
Depreciation, amortization and other operating expenses | 4,951 | 6,250 | 7,331 | ||||||||||
Total operating expenses | 105,204 | 109,180 | 77,834 | ||||||||||
Operating income | (105,197) | (109,180) | (77,834) | ||||||||||
Equity in earnings of consolidated subsidiaries | 724,476 | 793,620 | 463,598 | ||||||||||
Interest expense | (285,438) | (205,107) | (198,893) | ||||||||||
Other income (expense) | (1,852) | 5,077 | (22,867) | ||||||||||
Total other expense | 437,186 | 593,590 | 241,838 | ||||||||||
Income tax benefit (provision) | 89,852 | 100,473 | 99,148 | ||||||||||
NET INCOME | 421,841 | 584,883 | 263,152 | ||||||||||
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Sinclair Broadcast Group | 421,841 | 584,883 | 263,152 | ||||||||||
Comprehensive income (loss) | 422,480 | 584,267 | 263,179 | ||||||||||
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenue | 2,855,586 | 2,507,183 | 2,476,669 | ||||||||||
Media production expenses | 1,130,278 | 1,013,035 | 920,715 | ||||||||||
Selling, general and administrative | 613,074 | 522,039 | 489,882 | ||||||||||
Depreciation, amortization and other operating expenses | 257,877 | 131,880 | 360,550 | ||||||||||
Total operating expenses | 2,001,229 | 1,666,954 | 1,771,147 | ||||||||||
Operating income | 854,357 | 840,229 | 705,522 | ||||||||||
Equity in earnings of consolidated subsidiaries | (457) | (16) | 220 | ||||||||||
Interest expense | (3,961) | (4,586) | (4,481) | ||||||||||
Other income (expense) | (57,288) | (5,790) | 715 | ||||||||||
Total other expense | (61,706) | (10,392) | (3,546) | ||||||||||
Income tax benefit (provision) | (62,252) | (30,171) | (231,504) | ||||||||||
NET INCOME | 730,399 | 799,666 | 470,472 | ||||||||||
Net income attributable to the noncontrolling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Sinclair Broadcast Group | 730,399 | 799,666 | 470,472 | ||||||||||
Comprehensive income (loss) | 730,399 | 799,666 | 470,472 | ||||||||||
Reportable legal entities | Non-Guarantor Subsidiaries | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenue | 293,108 | 209,914 | 254,031 | ||||||||||
Media production expenses | 141,622 | 124,044 | 135,511 | ||||||||||
Selling, general and administrative | 19,740 | 14,800 | 10,804 | ||||||||||
Depreciation, amortization and other operating expenses | 206,980 | 51,461 | 121,986 | ||||||||||
Total operating expenses | 368,342 | 190,305 | 268,301 | ||||||||||
Operating income | (75,234) | 19,609 | (14,270) | ||||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Interest expense | (18,482) | (21,643) | (32,521) | ||||||||||
Other income (expense) | (178) | (7,412) | (281) | ||||||||||
Total other expense | (18,660) | (29,055) | (32,802) | ||||||||||
Income tax benefit (provision) | 6,480 | 401 | 7,756 | ||||||||||
NET INCOME | (87,414) | (9,045) | (39,316) | ||||||||||
Net income attributable to the noncontrolling interests | (4,959) | (17,738) | (4,937) | ||||||||||
Net income attributable to Sinclair Broadcast Group | (92,373) | (26,783) | (44,253) | ||||||||||
Comprehensive income (loss) | (87,414) | (9,045) | (39,316) | ||||||||||
Eliminations | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Revenue | (93,620) | (80,882) | (108,190) | ||||||||||
Media production expenses | (80,886) | (72,935) | (100,622) | ||||||||||
Selling, general and administrative | (1,992) | (2,183) | (106) | ||||||||||
Depreciation, amortization and other operating expenses | (6,876) | (2,800) | (2,023) | ||||||||||
Total operating expenses | (89,754) | (77,918) | (102,751) | ||||||||||
Operating income | (3,866) | (2,964) | (5,439) | ||||||||||
Equity in earnings of consolidated subsidiaries | (1,072,109) | (1,373,558) | (708,398) | ||||||||||
Interest expense | 15,906 | 19,109 | 24,990 | ||||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||||
Total other expense | (1,056,203) | (1,354,449) | (683,408) | ||||||||||
Income tax benefit (provision) | 0 | 0 | 0 | ||||||||||
NET INCOME | (1,060,069) | (1,357,413) | (688,847) | ||||||||||
Net income attributable to the noncontrolling interests | 202 | (353) | (524) | ||||||||||
Net income attributable to Sinclair Broadcast Group | (1,059,867) | (1,357,766) | (689,371) | ||||||||||
Comprehensive income (loss) | $ (1,065,465) | $ (1,374,888) | $ (694,335) | ||||||||||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
CONDENSED CONSOLIDATED FINANC_6
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | $ 647,418 | $ 431,413 | [1] | $ 611,590 | [1] | |
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | (105,061) | (83,812) | [1] | (94,465) | [1] | |
Acquisition of businesses, net of cash acquired | 0 | (271,273) | [1] | (425,657) | [1] | |
Purchase of alarm monitoring contracts | 0 | (5,682) | [1] | (40,206) | [1] | |
Proceeds from the sale of assets | 1,616 | 195,209 | [1] | 17,202 | [1] | |
Investments in equity investees | (35,805) | (55,129) | [1] | (51,247) | [1] | |
Distributions from equity method investees | 22,834 | 12,178 | [1] | 6,786 | [1] | |
Spectrum auction proceeds | 0 | 310,802 | [1] | 0 | [1] | |
Other, net | (1,795) | 12,291 | (15,155) | |||
Net cash flows (used in) from investing activities | (118,211) | 114,584 | [1] | (609,528) | [1] | |
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 4,317 | 166,797 | [1] | 1,024,912 | [1] | |
Repayments of notes payable, commercial bank financing and capital leases | (166,785) | (340,108) | [1] | (674,439) | [1] | |
Proceeds from the sale of Class A Common Stock | 0 | 487,883 | [1] | 0 | [1] | |
Dividends paid on Class A and Class B Common Stock | (74,566) | (71,364) | [1] | (65,909) | [1] | |
Repurchase of outstanding Class A Common Stock | (220,889) | (30,287) | [1] | (136,283) | [1] | |
Payments for deferred financing costs | (922) | (731) | [1] | (35,505) | [1] | |
Distributions to noncontrolling interests | (8,901) | (22,416) | [1] | (10,464) | [1] | |
Increase (decrease) in intercompany payables | 0 | 0 | 0 | |||
Other, net | 2,929 | (15) | 2,113 | |||
Net cash flows (used in) from financing activities | (464,817) | 189,759 | [1] | 104,425 | [1] | |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 64,390 | 735,756 | [1] | 106,487 | [1] | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | [1] | 995,940 | 260,184 | 153,697 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | 1,060,330 | 995,940 | [1] | 260,184 | [1] | |
Reportable legal entities | Sinclair Broadcast Group, Inc. | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (8,542) | (8,659) | (11,784) | |||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | (1) | (130) | 0 | |||
Acquisition of businesses, net of cash acquired | 0 | 0 | ||||
Purchase of alarm monitoring contracts | 0 | 0 | ||||
Proceeds from the sale of assets | 0 | 0 | 0 | |||
Investments in equity investees | (2,587) | (946) | (2,945) | |||
Distributions from equity method investees | 4,728 | 5,857 | ||||
Spectrum auction proceeds | 0 | |||||
Other, net | 1,670 | 740 | 1,714 | |||
Net cash flows (used in) from investing activities | 3,810 | 5,521 | (1,231) | |||
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 0 | 0 | 0 | |||
Repayments of notes payable, commercial bank financing and capital leases | 0 | (1,858) | (1,651) | |||
Proceeds from the sale of Class A Common Stock | 487,883 | |||||
Dividends paid on Class A and Class B Common Stock | (74,566) | (71,364) | (65,909) | |||
Repurchase of outstanding Class A Common Stock | (220,889) | (30,287) | (136,283) | |||
Payments for deferred financing costs | 0 | 0 | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||
Increase (decrease) in intercompany payables | 297,256 | (381,344) | 218,054 | |||
Other, net | 2,931 | 108 | (1,196) | |||
Net cash flows (used in) from financing activities | 4,732 | 3,138 | 13,015 | |||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | 0 | 0 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | 0 | 0 | 0 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | 0 | 0 | 0 | |||
Reportable legal entities | Sinclair Television Group, Inc. | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (252,615) | (180,966) | (130,406) | |||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | (6,592) | (14,973) | (8,006) | |||
Acquisition of businesses, net of cash acquired | (8,308) | 0 | ||||
Purchase of alarm monitoring contracts | 0 | 0 | ||||
Proceeds from the sale of assets | 0 | 0 | 0 | |||
Investments in equity investees | (1,975) | (720) | (15,620) | |||
Distributions from equity method investees | 0 | 0 | ||||
Spectrum auction proceeds | 0 | |||||
Other, net | (12,091) | 11,551 | (25,120) | |||
Net cash flows (used in) from investing activities | (20,658) | (12,450) | (48,746) | |||
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 0 | 159,669 | 995,000 | |||
Repayments of notes payable, commercial bank financing and capital leases | (148,505) | (213,919) | (650,422) | |||
Proceeds from the sale of Class A Common Stock | 0 | |||||
Dividends paid on Class A and Class B Common Stock | 0 | 0 | 0 | |||
Repurchase of outstanding Class A Common Stock | 0 | 0 | 0 | |||
Payments for deferred financing costs | 0 | (425) | (35,254) | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||
Increase (decrease) in intercompany payables | 737,911 | 660,911 | (17,778) | |||
Other, net | 0 | 713 | 407 | |||
Net cash flows (used in) from financing activities | 589,406 | 606,949 | 291,953 | |||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 316,133 | 413,533 | 112,801 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | 645,830 | 232,297 | 119,496 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | 961,963 | 645,830 | 232,297 | |||
Reportable legal entities | Guarantor Subsidiaries and KDSM, LLC | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 936,385 | 600,070 | 721,991 | |||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | (98,201) | (68,475) | (82,450) | |||
Acquisition of businesses, net of cash acquired | (262,965) | (415,282) | ||||
Purchase of alarm monitoring contracts | 0 | 0 | ||||
Proceeds from the sale of assets | 1,616 | 568 | 8,069 | |||
Investments in equity investees | (27,960) | (20,701) | (27) | |||
Distributions from equity method investees | 0 | 0 | ||||
Spectrum auction proceeds | 310,802 | |||||
Other, net | 8,626 | 0 | 3,179 | |||
Net cash flows (used in) from investing activities | (115,919) | (40,771) | (486,511) | |||
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 0 | 0 | 0 | |||
Repayments of notes payable, commercial bank financing and capital leases | (3,554) | (3,381) | (3,007) | |||
Proceeds from the sale of Class A Common Stock | 0 | |||||
Dividends paid on Class A and Class B Common Stock | 0 | 0 | 0 | |||
Repurchase of outstanding Class A Common Stock | 0 | 0 | 0 | |||
Payments for deferred financing costs | 0 | 0 | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||
Increase (decrease) in intercompany payables | (1,117,417) | (242,402) | (224,551) | |||
Other, net | (3,230) | (1,008) | 2,718 | |||
Net cash flows (used in) from financing activities | (1,124,201) | (246,791) | (224,840) | |||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (303,735) | 312,508 | 10,640 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | 323,383 | 10,875 | 235 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | 19,648 | 323,383 | 10,875 | |||
Reportable legal entities | Non-Guarantor Subsidiaries | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | (40,533) | 12,424 | 7,914 | |||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | (3,914) | (2,930) | (5,009) | |||
Acquisition of businesses, net of cash acquired | 0 | (10,375) | ||||
Purchase of alarm monitoring contracts | (5,682) | (40,206) | ||||
Proceeds from the sale of assets | 0 | 194,641 | 9,133 | |||
Investments in equity investees | (3,283) | (32,762) | (32,655) | |||
Distributions from equity method investees | 18,106 | 6,321 | ||||
Spectrum auction proceeds | 0 | |||||
Other, net | 0 | 0 | 5,072 | |||
Net cash flows (used in) from investing activities | 10,909 | 159,588 | (74,040) | |||
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 4,317 | 7,128 | 29,912 | |||
Repayments of notes payable, commercial bank financing and capital leases | (15,120) | (121,270) | (19,612) | |||
Proceeds from the sale of Class A Common Stock | 0 | |||||
Dividends paid on Class A and Class B Common Stock | 0 | 0 | 0 | |||
Repurchase of outstanding Class A Common Stock | 0 | 0 | 0 | |||
Payments for deferred financing costs | (922) | (306) | (251) | |||
Distributions to noncontrolling interests | (8,901) | (22,416) | (10,464) | |||
Increase (decrease) in intercompany payables | 100,440 | (25,605) | 49,403 | |||
Other, net | 1,802 | 172 | 184 | |||
Net cash flows (used in) from financing activities | 81,616 | (162,297) | 49,172 | |||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 51,992 | 9,715 | (16,954) | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | 26,727 | 17,012 | 33,966 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | 78,719 | 26,727 | 17,012 | |||
Eliminations | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES | 12,723 | 8,544 | 23,875 | |||
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES: | ||||||
Acquisition of property and equipment | 3,647 | 2,696 | 1,000 | |||
Acquisition of businesses, net of cash acquired | 0 | 0 | ||||
Purchase of alarm monitoring contracts | 0 | 0 | ||||
Proceeds from the sale of assets | 0 | 0 | 0 | |||
Investments in equity investees | 0 | 0 | 0 | |||
Distributions from equity method investees | 0 | 0 | ||||
Spectrum auction proceeds | 0 | |||||
Other, net | 0 | 0 | 0 | |||
Net cash flows (used in) from investing activities | 3,647 | 2,696 | 1,000 | |||
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES: | ||||||
Proceeds from notes payable, commercial bank financing and capital leases | 0 | 0 | 0 | |||
Repayments of notes payable, commercial bank financing and capital leases | 394 | 320 | 253 | |||
Proceeds from the sale of Class A Common Stock | 0 | |||||
Dividends paid on Class A and Class B Common Stock | 0 | 0 | 0 | |||
Repurchase of outstanding Class A Common Stock | 0 | 0 | 0 | |||
Payments for deferred financing costs | 0 | 0 | 0 | |||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||
Increase (decrease) in intercompany payables | (18,190) | (11,560) | (25,128) | |||
Other, net | 1,426 | 0 | 0 | |||
Net cash flows (used in) from financing activities | (16,370) | (11,240) | (24,875) | |||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 0 | 0 | 0 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of year | 0 | 0 | 0 | |||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of year | $ 0 | $ 0 | $ 0 | |||
[1] | See Recent Accounting Pronouncements within Note 1. Nature of Operations and Summary of Significant Accounting Policies |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues, net | $ 893,325 | $ 766,261 | $ 730,143 | $ 665,352 | $ 712,512 | $ 644,532 | $ 652,235 | $ 626,936 | $ 3,055,081 | $ 2,636,215 | $ 2,622,510 |
Operating income | 262,954 | 157,810 | 131,583 | 107,314 | 357,581 | 103,447 | 118,849 | 157,629 | 659,661 | 737,506 | 602,853 |
Net income | 207,694 | 65,000 | 29,310 | 43,994 | 444,800 | 32,566 | 46,035 | 70,703 | 345,998 | 594,104 | 250,762 |
Net income attributable to Sinclair Broadcast Group | $ 206,201 | $ 63,875 | $ 28,042 | $ 43,123 | $ 443,529 | $ 30,637 | $ 44,645 | $ 57,202 | $ 341,241 | $ 576,013 | $ 245,301 |
Basic earnings per share common shares (in dollars per share) | $ 2.12 | $ 0.63 | $ 0.27 | $ 0.42 | $ 4.36 | $ 0.30 | $ 0.43 | $ 0.62 | $ 3.38 | $ 5.77 | $ 2.62 |
Diluted earnings per share common shares (in dollars per share) | $ 2.10 | $ 0.62 | $ 0.27 | $ 0.42 | $ 4.32 | $ 0.30 | $ 0.43 | $ 0.61 | $ 3.35 | $ 5.72 | $ 2.60 |
Gain (loss) recognized on sale | $ 225,300 | $ 5,800 | |||||||||
Federal tax reform | $ 272,100 | $ 4,300 | $ 272,100 |