Salem Media Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2020

Trade and barter revenues and expenses were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2020		2019		2020
	(Dollars in thousands)
Net broadcast barter revenue	$	1,415	$	508	$	2,714	$	1,674
Net digital media barter revenue		—		—		—		—
Net publishing barter revenue		5		5		16		31
Net broadcast barter expense	$	1,112	$	524	$	2,468	$	1,558
Net digital media barter expense		—		—		—		—
Net publishing barter expense		1		—		1		—

Significant changes in our contract liabilities balances during the period are as follows:


	Short-Term			Long-Term
	(Dollars in thousands)
Balance, beginning of period January 1, 2020	$	9,493		$	1,744
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(4,796	)		—
Additional amounts recognized during the period		17,105			573
Revenue recognized during the period that was recorded during the period		(5,615	)		—
Transfers		380			(380	)

Balance, end of period June 30, 2020	$	16,567		$	1,937

Amount refundable at beginning of period	$	9,403		$	1,744
Amount refundable at end of period	$	16,477		$	1,937

We expect to satisfy these performance obligations as follows:


	Amount
For the Twelve Months Ended June 30,	(Dollars in thousands)
2021	$	16,567
2022		1,004
2023		476
2024		231
2025		109
Thereafter		117

	$	18,504

The following table presents our revenues disaggregated by revenue source for each of our operating segments:


	Six Months Ended June 30, 2020
	Broadcast		Digital Media		Publishing		Consolidated
	(dollars in thousands)
By Source of Revenue:
Block Programming - National	$	23,804	$	—	$	—	$	23,804
Block Programming - Local		12,440		—		—		12,440
Spot Advertising - National		6,544		—		—		6,544
Spot Advertising - Local		19,145		—		—		19,145
Infomercials		536		—		—		536
Network		8,614		—		—		8,614
Digital Advertising		6,483		9,260		151		15,894
Digital Streaming		1,229		1,768		—		2,997
Digital Downloads and eBooks		—		3,047		504		3,551
Subscriptions		573		4,292		351		5,216
Book Sales and e-commerce, net of estimated sales returns and allowances		1,663		55		3,861		5,579
Self-Publishing Fees		—		—		2,453		2,453
Print Advertising		1		—		193		194
Other Revenues		3,618		125		411		4,154

	$	84,650	$	18,547	$	7,924	$	111,121

Timing of Revenue Recognition
Point in Time	$	83,379	$	18,547	$	7,924	$	109,850
Rental Income (1)		1,271		—		—		1,271

	$	84,650	$	18,547	$	7,924	$	111,121


	Six Months Ended June 30, 2019
	Broadcast		Digital Media		Publishing		Consolidated
	(dollars in thousands)
By Source of Revenue:
Block Programming - National	$	24,319	$	—	$	—	$	24,319
Block Programming - Local		15,320		—		—		15,320
Spot Advertising - National		7,988		—		—		7,988
Spot Advertising - Local		25,686		—		—		25,686
Infomercials		751		—		—		751
Network		9,261		—		—		9,261
Digital Advertising		5,370		10,316		182		15,868
Digital Streaming		345		1,981		—		2,326
Digital Downloads and eBooks		—		2,964		468		3,432
Subscriptions		549		4,071		393		5,013
Book Sales and e-commerce, net of estimated sales returns and allowances		232		443		5,171		5,846
Self-Publishing Fees		—		—		2,725		2,725
Print Advertising		3		—		280		283
Other Revenues		5,351		425		555		6,331

	$	95,175	$	20,200	$	9,774	$	125,149

Timing of Revenue Recognition
Point in Time	$	94,045	$	20,172	$	9,774	$	123,991
Rental Income (1)		1,130		28		—		1,158

	$	95,175	$	20,200	$	9,774	$	125,149