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

Quarterly report pursuant to Section 13 or 15(d)

Broadcast Licenses (Tables)

Broadcast Licenses (Tables)

9 Months Ended

Sep. 30, 2022

Indefinite-lived Intangible Assets [Line Items]

Schedule of Changes in Broadcasting Licenses

The following table presents the changes in broadcasting licenses that include acquisitions and divestitures of radio stations and FM translators.


Broadcast Licenses	Twelve Months Ended December 31, 2021			Nine Months Ended September 30, 2022
	(Dollars in thousands)
Balance before cumulative loss on impairment, beginning of period	$	434,209		$	434,444
Accumulated loss on impairment, beginning of period		(114,436	)		(114,436	)

Balance after cumulative loss on impairment, beginning of period		319,773			320,008
Acquisitions of radio stations		235			190
Dispositions of radio stations and FM translators		—			(2,763	)
Loss on impairment		—			(11,660	)

Balance, end of period after cumulative loss on impairment	$	320,008		$	305,775

Balance, end of period before cumulative loss on impairment	$	434,444		$	429,566
Accumulated loss on impairment, end of period		(114,436	)		(123,791	)

Balance, end of period after cumulative loss on impairment	$	320,008		$	305,775

Schedule of Estimates and Assumptions Used in the Start - Up Income Valuation for Broadcast Licenses

The assumptions used reflect those of a hypothetical market participant and not necessarily the actual or projected results of Salem. The key estimates and assumptions used in the

start-up

income valuation for our broadcast licenses were as follows:


Broadcast Licenses	December 31, 2021	June 30, 2022	September 30, 2022
Risk-adjusted discount rate	8.5%	9.5%	9.5%
Operating profit margin ranges	3.9%—30.9%%	3.9%—30.9%	3.9%—30.9%
Long-term revenue growth rates	0.4%—0.7%	0.4%—0.7%	0.4%—0.7%

Schedule of Interim Impairment Testing Under Start-Up Income Approach

The table below presents the results of our interim impairment testing under the

start-up

income approach at September 30, 2022:


Market Cluster		Excess Fair Value September 30, 2022
Boston, MA		(1.7)%
Chicago, IL		(2.0)%
Cleveland, OH		5.5%
Columbus, OH		(6.3)%
Dallas, TX		(7.2)%
Greenville, SC		(4.4)%
Honolulu, HI		(4.1)%
Little Rock, AR		(1.2)%
Orlando FL		(7.4)%
Philadelphia, PA		(7.4)%
Portland, OR		(3.6)%
Sacramento, CA		(4.1)%
San Francisco, CA		(0.0)%