Salem Media Group, Inc. Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

The consolidated provision for (benefit from) income taxes is as follows:


	Year Ended December 31,
	2017			2018
	(Dollars in thousands)
Current:
Federal	$	—		$	—
State		63			282

		63			282
Deferred:
Federal		(21,167	)		(658	)
State		234			2,849

		(20,933	)		2,191

Provision for (benefit from) income taxes	$	(20,870	)	$	2,473

Consolidated deferred tax assets and liabilities consist of the following:


	As of December 31,
	2017			2018
	(Dollars in thousands)
Deferred tax assets:
Financial statement accruals not currently deductible	$	6,220		$	6,822
Net operating loss, AMT credit and other carryforwards		55,720			50,067
State taxes		103			124
Other		2,191			3,969

Total deferred tax assets		64,234			60,982
Valuation allowance for deferred tax assets		(6,154	)		(5,371	)

Net deferred tax assets	$	58,080		$	55,611

Deferred tax liabilities:
Excess of net book value of property and equipment and software for financial reporting purposes over tax basis	$	1,218		$	2,763
Excess of net book value of intangible assets for financial reporting purposes over tax basis		89,898			88,112
Other		45			8

Total deferred tax liabilities		91,161			90,883

Net deferred tax liabilities	$	(33,081	)	$	(35,272	)

The following table reconciles the above net deferred tax liabilities to the financial statements:


	As of December 31,
	2017			2018
	(Dollars in thousands)
Deferred income tax asset per balance sheet	$	1,070		$	—
Deferred income tax liability per balance sheet		(34,151	)		(35,272	)

	$	(33,081	)	$	(35,272	)

A reconciliation of the statutory federal income tax rate to the provision for income tax is as follows:


	Year Ended December 31,
	2017			2018
	(Dollars in thousands)
Statutory federal income tax (statutory tax rate)	$	1,321		$	(151	)
Effect of state taxes, net of federal		(1,207	)		2,284
Permanent items		458			318
State rate change		(179	)		248
Valuation allowance		1,667			(147	)
Tax Cuts and Jobs Act of 2017		(23,000	)		—
Other, net		70			(79	)

Provision for income taxes	$	(20,870	)	$	2,473