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

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

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

	Nine Months Ended September 30, 2021
	Broadcast		Digital Media		Publishing		Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	35,824	$	—	$	—	$	35,824
Block Programming – Local		18,072		—		—		18,072
Spot Advertising – National		10,565		—		—		10,565
Spot Advertising – Local		30,123		—		—		30,123
Infomercials		682		—		—		682
Network		14,729		—		—		14,729
Digital Advertising		18,415		13,859		132		32,406
Digital Streaming		3,559		2,579		—		6,138
Digital Downloads and eBooks		509		4,637		1,294		6,440
Subscriptions		828		9,227		262		10,317
Book Sales and e-commerce, net of estimated sales returns and allowances		289		163		10,851		11,303
Self-Publishing Fees		—		—		4,730		4,730
Print Advertising		2		—		123		125
Other Revenues		6,825		138		701		7,664

	$	140,422	$	30,603	$	18,093	$	189,118

Timing of Revenue Recognition
Point in Time	$	138,540	$	30,603	$	18,093	$	187,236
Rental Income (1)		1,882		—		—		1,882

	$	140,422	$	30,603	$	18,093	$	189,118

	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

(1)	Rental income is not applicable to FASB ASC Topic 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Condensed Consolidated Financial Statements within this report on Form 10-Q.

Trade and barter revenues and expenses were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,

	2020		2021			2020		2021

	(Dollars in thousands)
Net broadcast barter revenue	$	444	$	582		$	2,118	$	1,647
Net digital media barter revenue		—		—			—		—
Net publishing barter revenue		3		—			34		—
Net broadcast barter expense	$	413	$	619		$	1,971	$	1,704
Net digital media barter expense		—		—			—		—
Net publishing barter expense		—		(2	)		—		(5	)

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, 2021	$	11,652		$	1,869
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(7,770	)		—
Additional amounts recognized during the period		19,742			883
Revenue recognized during the period that was recorded during the period		(12,734	)		—
Transfers		671			(671	)

Balance, end of period September 30, 2021	$	11,561		$	2,081

Amount refundable at beginning of period	$	11,607		$	1,869
Amount refundable at end of period	$	11,549		$	2,081

We expect to satisfy these performance obligations as follows:

	Amount
For the Twelve Months Ended September 30,	(Dollars in thousands)
2022	$	11,561
2023		979
2024		787
2025		238
2026		77
Thereafter		—

	$	13,642