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

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

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


	Six Months Ended June 30, 2022
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	26,399	$	—	$	—		$	26,399
Block Programming – Local		12,049		—		—			12,049

Broadcast Programming Revenue		38,448		—		—			38,448

Spot Advertising – National		7,700		—		—			7,700
Spot Advertising – Local		21,552		—		—			21,552
Network Advertising		10,240		—		—			10,240

Broadcast Advertising Revenue		39,492		—		—			39,492

Infomercials		373		—		—			373
Other Revenue		4,484		—		—			4,484

Other Broadcast Revenue		4,857		—		—			4,857

Digital Advertising		14,112		9,088		—			23,200
Digital Streaming		2,492		1,798		—			4,290
Digital Downloads		387		3,797		—			4,184
Digital Subscriptions		503		6,343		—			6,846
Other Digital Revenue		593		78		—			671

Digital Revenue		18,087		21,104		—			39,191

Book Sales		—		—		6,204			6,204
Estimated Sales Returns & Allowances		—		—		(1,444	)		(1,444	)

Net Book Sales		—		—		4,760			4,760

E-Book Sales		—		—		625			625
Self-Publishing Fees		—		—		3,379			3,379
Other Publishing Revenue		—		—		539			539
Publishing Revenue		—		—		9,303			9,303

	$	100,884	$	21,104	$	9,303		$	131,291

Timing of Revenue Recognition
Point in Time	$	99,744	$	21,104	$	9,303		$	130,151
Rental Income (1)		1,140		—		—			1,140

	$	100,884	$	21,104	$	9,303		$	131,291


	Six Months Ended June 30, 2021
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	23,322	$	—	$	—		$	23,322
Block Programming – Local		11,773		—		—			11,773

Broadcast Programming Revenue		35,095		—		—			35,095

Spot Advertising – National		7,118		—		—			7,118
Spot Advertising – Local		19,441		—		—			19,441
Network Advertising		9,821		—		—			9,821

Broadcast Advertising Revenue		36,380		—		—			36,380

Infomercials		462		—		—			462
Other Revenue		4,097		—		—			4,097

Other Broadcast Revenue		4,559		—		—			4,559

Digital Advertising		11,745		8,806		132			20,683
Digital Streaming		2,093		1,706		—			3,799
Digital Downloads		200		3,267		—			3,467
Digital Subscriptions		562		6,072		—			6,634
Other Digital Revenue		197		107		—			304

Digital Revenue		14,797		19,958		132			34,887

Book Sales		—		—		10,513			10,513

Estimated Sales Returns & Allowances		—		—		(3,011	)		(3,011	)

Net Book Sales		—		—		7,502			7,502
E-Book Sales		—		—		792			792
Self-Publishing Fees		—		—		3,174			3,174
Publishing Magazine Subscriptions		—		—		262			262
Other Publishing Revenue		—		—		484			484

Publishing Revenue		—		—		12,214			12,214

	$	90,831	$	19,958	$	12,346		$	123,135

Timing of Revenue Recognition									—
Point in Time	$	89,583	$	19,958	$	12,346		$	121,887
Rental Income (1)		1,248		—		—			1,248

	$	90,831	$	19,958	$	12,346		$	123,135

(1)	Rental income is not applicable to 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.

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, 2022	$	12,294		$	2,222
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(6,868	)		—
Additional amounts recognized during the period		12,525			424
Revenue recognized during the period that was recorded during the period		(6,248	)		—
Transfers		698			(698	)

Balance, end of period June 30, 2022	$	12,401		$	1,948

Amount refundable at beginning of period	$	12,282		$	2,222
Amount refundable at end of period	$	12,389		$	1,948

We expect to satisfy these performance obligations as follows:

Trade and barter revenues and expenses were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2022		2021		2022
	(Dollars in thousands)
Net broadcast barter revenue	$	674	$	679	$	1,065	$	1,525
Net digital media barter revenue		—		—		—		—
Net publishing barter revenue		—		—		—		—
Net broadcast barter expense	$	712	$	873	$	1,085	$	1,632
Net digital media barter expense		—		—		—		—
Net publishing barter expense		7		—		7		—