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

Operating and Finance Lease Right-of-Use Assets (Tables)

9 Months Ended

Sep. 30, 2021

Supplemental balance sheet information related to leases is as follows:


	September 30, 2021
	(Dollars in thousands)

Operating Leases	Related Party		Other		Total
Operating leases ROU assets	$	6,303	$	37,797	$	44,100

Operating lease liabilities (current)	$	1,004	$	7,600	$	8,604
Operating lease liabilities (non-current)		5,479		37,701		43,180

Total operating lease liabilities	$	6,483	$	45,301	$	51,784

Weighted Average Remaining Lease Term
Operating leases	7.8 years
Finance leases	2.9 years
Weighted Average Discount Rate
Operating leases	7.98	%
Finance leases	5.74	%

The components of lease expense were as follows:

	Nine Months Ended September 30, 2021
	(Dollars in thousands)
Amortization of finance lease ROU Assets	$	48
Interest on finance lease liabilities		6

Finance lease expense		54
Operating lease expense		9,656
Variable lease expense		430
Short-term lease expense		444

Total lease expense	$	10,584

Supplemental cash flow information related to leases was

follows:

	Nine Months Ended September 30, 2021
	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,403
Operating cash flows from finance leases		4
Financing cash flows from finance leases		48
Leased assets obtained in exchange for new operating lease liabilities	$	3,466
Leased assets obtained in exchange for new finance lease liabilities		17

Future minimum lease payments under leases that had initial or remaining

non-cancelable

lease terms in excess of one year as of September 30, 2021, are as follows:

	Operating Leases

	Related Party			Other			Total			Finance Leases			Total

	(Dollars in thousands)
2021 (Oct-Dec)	$	1,505		$	10,789		$	12,294		$	66		$	12,360
2022		1,370			10,908			12,278			47			12,325
2023		1,070			8,533			9,603			24			9,627
2024		1,021			6,890			7,911			10			7,921
2025		1,089			5,640			6,729			1			6,730
Thereafter		3,293			22,222			25,515			—			25,515

Undiscounted Cash Flows	$	9,348		$	64,982		$	74,330		$	148		$	74,478

Less: imputed interest		(2,865	)		(19,681	)		(22,546	)		(10	)		(22,556	)

Total	$	6,483		$	45,301		$	51,784		$	138		$	51,922

Reconciliation to lease liabilities:
Lease liabilities – current	$	1,004		$	7,600		$	8,604		$	59		$	8,663
Lease liabilities – long-term		5,479			37,701			43,180			79			43,259

Total Lease Liabilities	$	6,483		$	45,301		$	51,784		$	138		$	51,922