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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2013

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


Category		Life
Buildings		40 years
Office furnishings and equipment		5-10 years
Antennae, towers and transmitting equipment		20 years
Studio and production equipment		7-10 years
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

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


Category		Life
Customer lists and contracts		Lesser of 5 years or life of contract
Favorable and assigned leases		Life of the lease
Domain and brand names		5 to 7 years
Internally developed software		3 to 5 years
Customer relationships		1 to 3 years
Other amortizable intangible assets		5 to 10 years

Deferred financing costs consist of the following:

A summary of the changes in the gross amount of unrecognized tax benefits is as follows:


	December 31, 2013
	(Dollars in thousands)
Balance at January 1, 2013	$	1,325
Additions based on tax positions related to the current year		—
Additions based on tax positions related to prior years		—
Reductions related to tax positions of prior years		—
Decrease due to statute expirations		(401	)
Related interest and penalties, net of federal tax benefits		(8	)

Balance as of December 31, 2013	$	916

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,
	2011		2012		2013
Weighted average shares		24,475,102		24,577,605		24,938,075
Effect of dilutive securities—stock options		208,542		409,361		—

Weighted average shares adjusted for dilutive securities		24,683,644		24,986,966		24,938,075