Quarterly report pursuant to Section 13 or 15(d)

Broadcast Licenses (Tables)

v3.19.3
Broadcast Licenses (Tables)
 9 Months Ended
Sep. 30, 2019
Schedule of Interim Impairment Testing Under Start-Up Income Approach

The table below presents the results of our interim impairment testing under the start-up income approach at September 30, 2019:

 

Market Cluster

 

Excess Fair Value

September 30, 2019

Estimate

 

Cleveland, OH

 

1.5%

 

Little Rock

 

15.1%

 

Louisville, KY

 

(15.2)%

 

Philadelphia, PA

 

(0.8)%

 

Portland, OR

 

(2.2)%

 

Sacramento, CA

 

6.6%

 

San Francisco, CA

 

(3.4)%

 
Schedule of Changes in Broadcasting Licenses

The following table presents the changes in broadcasting licenses that include acquisitions and divestitures of radio stations and FM translators.

 

Broadcast Licenses

 

Twelve Months Ended

December 31, 2018

 

 

Nine Months Ended

September 30, 2019

 

 

 

(Dollars in thousands)

 

Balance before cumulative loss on impairment, beginning of period

 

$

486,455

 

 

$

484,691

 

Accumulated loss on impairment, beginning of period

 

 

(105,541

)

 

 

(108,375

)

Balance after cumulative loss on impairment, beginning of period

 

 

380,914

 

 

 

376,316

 

Acquisitions of radio stations

 

 

6,270

 

 

 

616

 

Acquisitions of FM translators and construction permits

 

 

19

 

 

 

335

 

Abandoned capital projects

 

 

(40

)

 

 

—

 

Dispositions of radio stations

 

 

(8,013

)

 

 

(34,998

)

Impairments based on the estimated fair value of broadcast licenses

 

 

(2,834

)

 

 

(1,915

)

Balance before cumulative loss on impairment, end of period

 

 

484,691

 

 

 

444,274

 

Accumulated loss on impairment, end of period

 

 

(108,375

)

 

 

(103,920

)

Balance after cumulative loss on impairment, end of period

 

$

376,316

 

 

$

340,354

 
Broadcast Licenses [Member]  
Schedule of Estimates and Assumptions Used in the Start - Up Income Valuation for Broadcast Licenses

The assumptions used reflect those of a hypothetical market participant and not necessarily the actual or projected results of Salem. The key estimates and assumptions used in the start-up income valuation for our broadcast licenses were as follows:

 

Broadcast Licenses

 

December 31, 2018

 

 

September 30, 2019

 

Risk-adjusted discount rate

 

9.0%

 

 

9.0%

 

Operating profit margin ranges

 

4.4% - 34.5%

 

 

4.3% - 30.7%

 

Long-term revenue growth rates

 

0.5% - 1.2%

 

 

0.7% - 1.1%