Quarterly report pursuant to Section 13 or 15(d)

Broadcast Licenses (Tables)

v3.20.2
Broadcast Licenses (Tables)
 9 Months Ended
Sep. 30, 2020
Indefinite-lived Intangible Assets [Line Items]  
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, 2019		     
Nine Months Ended

September 30, 2020
  
    
(Dollars in thousands)
  
Balance before cumulative loss on impairment, beginning of period
    $ 484,691      $
441,143
 
Accumulated loss on impairment, beginning of period
      (108,375 )    
 
(103,285
) 
  
 
 
     
 
 
  
Balance after cumulative loss on impairment, beginning of period
      376,316     
 
337,858
 
  
 
 
     
 
 
  
Acquisitions of radio stations
      617     
 
—  
 
Acquisitions of FM translators and construction permits
      35     
 
—  
 
Capital projects
      300     
 
—  
 
Dispositions of radio stations
      (36,502 )    
 
(1,091
) 
Impairments based on the estimated fair value of broadcast licenses
      (2,908 )    
 
(16,994
) 
  
 
 
     
 
 
  
Balance, end of period after cumulative loss on impairment
    $ 337,858      $
319,773
 
  
 
 
     
 
 
  
Balance, end of period before cumulative loss on impairment
    $ 441,143      $
440,052
 
Accumulated loss on impairment, end of period
      (103,285 )    
 
(120,279
) 
  
 
 
     
 
 
  
Balance, end of period after cumulative loss on impairment
    $ 337,858      $
319,773
 
  
 
 
     
 
 
  
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 March 31, 2020 and September 30, 2020:
 
Market Cluster
   
Excess Fair Value
March 31, 2020
Estimate
    
Excess Fair Value
September 30, 2020
Estimate
  
Boston, MA
      4.8 %      5.6 % 
Chicago, IL
      (9.0 %)      8.5 % 
Cleveland, OH
      (18.4 %)      6.5 % 
Dallas, TX
      8.5 %      11.8 % 
Louisville, KY
      (21.8 %)      13.8 % 
New York, NY
      7.3 %      15.9 % 
Philadelphia, PA
      (13.1 %)      5.1 % 
Portland, OR
      (14.8 %)      10.1 % 
Sacramento, CA
      (9.6 %)      4.6 % 
San Francisco, CA
      1.2 %      7.0 % 
Tampa, FL
      (28.0 %)      20.5 % 
Broadcast Licenses [Member]  
Indefinite-lived Intangible Assets [Line Items]  
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 the broadcast licenses subject to testing were as follows:
 
Broadcast Licenses
   
December 31, 2019
   
March 31, 2020
   
September 30, 2020
Risk-adjusted discount rate
    9.0%   
9.5%
   
8.5%
Operating profit margin ranges
   
4.0% - 33.8%
   
4.6% - 33.8%
   
4.3% - 33.3%
Long-term revenue growth rates
    0.7% - 1.1%   
0.8% - 1.1%
   
0.2% - 1.1%