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

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Trade and barter revenues and expenses were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2020		2019		2020
	(Dollars in thousands)
Net broadcast barter revenue	$	1,366	$	444	$	4,080	$	2,118
Net digital media barter revenue		—		—		—		—
Net publishing barter revenue		17		3		33		34

Net broadcast barter expense	$	1,199	$	413	$	3,667	$	1,971
Net digital media barter expense		—		—		—		—
Net publishing barter expense		5		—		6		—

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		(6,123	)		—
Additional amounts recognized during the period		21,022			678
Revenue recognized during the period that was recorded during the period		(10,283	)		—
Transfers		604			(604	)

Balance, end of period September 30, 2020	$	14,713		$	1,818


Amount refundable at beginning of period	$	9,403		$	1,744
Amount refundable at end of period	$	14,648		$	1,818

We expect to satisfy these performance obligations as follows:


	Amount
For the Twelve Months Ended September 30,	(Dollars in thousands)
2021	$	14,713
2022		618
2023		689
2024		266
2025		128
Thereafter		117

	$	16,531

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


	Nine Months Ended September 30, 2020
	Broadcast		Digital Media		Publishing		Consolidated
	(dollars in thousands)
By Source of Revenue:
Block Programming - National	$	35,536	$	—	$	—	$	35,536
Block Programming - Local		18,211		—		—		18,211
Spot Advertising - National		10,179		—		—		10,179
Spot Advertising - Local		28,630		—		—		28,630
Infomercials		750		—		—		750
Network		13,505		—		—		13,505
Digital Advertising		10,676		14,473		216		25,365
Digital Streaming		1,981		2,611		—		4,592
Digital Downloads and eBooks		3,049		4,291		960		8,300
Subscriptions		868		6,679		519		8,066
Book Sales and e-commerce, net of estimated sales returns and allowances		1,128		108		6,849		8,085
Self-Publishing Fees		—		—		3,860		3,860
Print Advertising		1		—		278		279
Other Revenues		5,527		193		684		6,404

	$	130,041	$	28,355	$	13,366	$	171,762


Timing of Revenue Recognition
Point in Time	$	128,157	$	28,319	$	13,366	$	169,842
Rental Income (1)		1,884		36		—		1,920

	$	130,041	$	28,355	$	13,366	$	171,762


	Nine Months Ended September 30, 2019
	Broadcast		Digital Media		Publishing		Consolidated
	(dollars in thousands)
By Source of Revenue:
Block Programming - National	$	36,517	$	—	$	—	$	36,517
Block Programming - Local		22,867		—		—		22,867
Spot Advertising - National		11,956		—		—		11,956
Spot Advertising - Local		38,467		—		—		38,467
Infomercials		1,091		—		—		1,091
Network		13,923		—		—		13,923
Digital Advertising		8,558		15,136		290		23,984
Digital Streaming		557		2,947		—		3,504
Digital Downloads and eBooks		—		4,196		1,232		5,428
Subscriptions		825		6,076		581		7,482
Book Sales and e-commerce, net of estimated sales returns and allowances		294		468		9,342		10,104
Self-Publishing Fees		—		—		4,258		4,258
Print Advertising		25		—		474		499
Other Revenues		7,774		526		885		9,185

	$	142,854	$	29,349	$	17,062	$	189,265


Timing of Revenue Recognition
Point in Time	$	141,161	$	29,301	$	17,062	$	187,524
Rental Income (1)		1,693		48		—		1,741

	$	142,854	$	29,349	$	17,062	$	189,265