Salem Media Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill (Tables)

Goodwill (Tables)

12 Months Ended

Dec. 31, 2021

The following table presents the changes in goodwill including business acquisitions as described in Note 3—Recent Transactions.


	Year Ended December 31,
	2020			2021
	(Dollars in thousands)

Balance, beginning of period before cumulative loss on impairment,	$	28,454		$	28,520
Accumulated loss on impairment		(4,456	)		(4,763	)

Balance, beginning of period after cumulative loss on impairment		23,998			23,757

Acquisitions of digital media entities		66			4
Acquisitions of digital media entities		—			225
Impairments based on the estimated fair value goodwill		(307	)		—

Ending period balance	$	23,757		$	23,986

Balance, end of period before cumulative loss on impairment		28,520			28,749
Accumulated loss on impairment		(4,763	)		(4,763	)

Ending period balance	$	23,757		$	23,986

Broadcast Markets Enterprise Valuations [Member]

Carrying Value and Fair Value of Financial Instrument Disclosure

The tables below present the percentage within a range by which the estimated fair value exceeded the carrying value of each of our market clusters, includin

goodwill:


	Broadcast Market Clusters as of December 31, 2021 Percentage Range by Which Estimated Fair Value Exceeds Carrying Value Including Goodwill
	< 10%		>11% to 20%		>21% to 50%		> than 51%
Number of accounting units		—		1		—		—
Carrying value including goodwill ( in thousands )		—		8,539		—		—

Schedule of Assumptions Used

The key estimates and assumptions used for our enterprise valuations were as follows:


Broadcast Markets Enterprise Valuations	December 31, 2020	December 31, 2021



Risk-adjusted discount rate	8.5%	8.5%
Operating profit margin ranges	(11.4%) - 41.5%	(1.4%) - 15.0%
Long-term revenue growth rates	0.5% - 0.8%	0.4%

Digital Media [Member]

Carrying Value and Fair Value of Financial Instrument Disclosure

The table below presents the percentage within a range by which the estimated fair value exceeded the carrying value of the digital media entities, including goodwill.


	Digital Media Entities as of December 31, 2021 Percentage Range by Which Estimated Fair Value Exceeds Carrying Value Including Goodwill

	< 10%		>10% to 20%		>21% to 50%		> than 51%

Number of accounting units		—		—		—		1
Carrying value including goodwill ( in thousands )		—		—		—		26,671

Schedule of Assumptions Used

The key estimates and assumptions used for our enterprise valuations were as follows:


Digital Media Enterprise Valuations	December 31, 2020	December 31, 2021



Risk adjusted discount rate	9.5%	9.5%
Operating profit margin ranges	3.4% - 6.8%	25.3% - 28.5%
Long-term revenue growth rates	1.0%	0.5%

Publishing [Member]

Carrying Value and Fair Value of Financial Instrument Disclosure

The table below presents the percentage within a range by which the estimated fair value exceeded the carrying value of our remaining accounting units, including goodwill.


	Publishing Entities as of December 31, 2021
	Percentage Range by Which Estimated Fair Value Exceeds Carrying Value Including Goodwill
	< 10%		>11% to 20%		>21% to 50%		> than 51%


Number of accounting units		—		—		—		1
Carrying value including goodwill ( in thousands )		—		—		—		1,854

Schedule of Assumptions Used

The key estimates and assumptions used for our enterprise valuations were as follows:


Publishing Enterprise Valuations	December 31, 2020	December 31, 2021
Risk adjusted discount rate	9.5%	9.5%
Operating margin ranges	1.5% - 4.4%	2.4% - 5.2%
Long-term revenue growth rates	0.5% - 1.0%	0.5%