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

Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment Estimated Useful Lives

Depreciation is computed using the straight-line method over estimated useful lives as follows:

Category		Estimated Life
Buildings		40 years
Office furnishings and equipment		5 -10 years
Antennae, towers and transmitting equipment		10 - 20 years
Studio, production and mobile equipment		5 - 10 years
Computer software and website development costs		3 years
Record and tape libraries		3 years
Automobiles		5 years
Leasehold improvements		Lesser of 15 years or life of lease

Intangibles Asset Estimated Useful Lives

These intangibles are amortized using the straight-line method over the following estimated useful lives:

Category		Estimated Life
Customer lists and contracts		Lesser of 5 years or life of contract
Domain and brand names		5 -7 years
Favorable and assigned leases		Lease Term
Subscriber base and lists		3 - 7 years
Author relationships		1 - 7 years
Non-compete agreements		2 to 5 years

Fair value of interest rate swap

The swap was valued based on observable inputs for similar assets and liabilities and other observable inputs for interest rates and yield curves, which are classified within Level 2 inputs in the fair value hierarchy described below and in Note 9 to our consolidated financial statements included in this annual report on Form 10-K.

	As of December 31, 2014		As of December 31, 2015
	(Dollars in thousands)
Fair value of interest rate swap asset (liability)	$	475	$	(798	)

Shares Used to Compute Basic and Diluted Net Earning Per Share

The following table sets forth the shares used to compute basic and diluted net earnings per share for the periods indicated:

	Year Ended December 31,
	2013		2014		2015
Weighted average shares		24,938,075		25,336,809		25,426,732
Effect of dilutive securities - stock options				744,366		461,087
Weighted average shares adjusted for dilutive securities		24,938,075		26,081,175		25,887,819