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

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021

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


	Year Ended December 31, 2021
	Broadcast		Digital Media		Publishing		Consolidated
	(Dollars in thousands)
By Source of Revenue:

Block Programming – National	$	48,705	$	—	$	—	$	48,705
Block Programming – Local		24,759		—		—		24,759
Spot Advertising – National		14,294		—		—		14,294
Spot Advertising – Local		41,672		—		—		41,672
Infomercials		878		—		—		878
Network		19,789		—		—		19,789
Digital Advertising		25,453		19,648		132		45,233
Digital Streaming		4,730		3,450		—		8,180
Digital Downloads and eBooks		556		6,373		—		6,929
Subscriptions		1,087		12,228		262		13,577
Book Sales and e-commerce, net of estimated sales returns and allowances		432		269		17,128		17,829
Self-Publishing fees		—		—		6,081		6,081
Advertising – Print		—		—		123		123
Other Revenue		9,088		196		914		10,198

	$	191,443	$	42,164	$	24,640	$	258,247

Timing of Revenue Recognition
Point in Time	$	188,998	$	42,164	$	24,640	$	255,802
Rental Income (1)		2,445		—		—		2,445

	$	191,443	$	42,164	$	24,640	$	258,247

	Year Ended December 31, 2020
	Broadcast		Digital Media		Publishing		Consolidated
	(Dollars in thousands)
By Source of Revenue:

Block Programming – National	$	47,009	$	—	$	—	$	47,009
Block Programming – Local		24,267		—		—		24,267
Spot Advertising – National		15,288		—		—		15,288
Spot Advertising – Local		39,407		—		—		39,407
Infomercials		974		—		—		974
Network		19,371		—		—		19,371
Digital Advertising		15,938		20,644		415		36,997
Digital Streaming		2,774		3,446		—		6,220
Digital Downloads and eBooks		3,211		5,904		1,605		10,720
Subscriptions		1,166		9,208		680		11,054
Book Sales and e-commerce, net of estimated sales returns and allowances		1,438		140		9,228		10,806
Self-Publishing fees		—		—		5,424		5,424
Advertising – Print		1		—		353		354
Other Revenue		7,283		251		814		8,348

	$	178,127	$	39,593	$	18,519	$	236,239

Timing of Revenue Recognition
Point in Time	$	175,611	$	39,593	$	18,519	$	233,723
Rental Income (1)		2,516		—		—		2,516

	$	178,127	$	39,593	$	18,519	$	236,239

(1)	Rental income is not applicable to ASC 606, but shown for the purpose of identifying each revenue source presented in total revenue on our Consolidated Financial Statements within this annual report.

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, 2021	$	11,652		$	1,869
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(8,587	)		—
Additional amounts recognized during the period		27,011			1,043
Revenue recognized during the period that was recorded during the period		(18,472	)		—
Transfers		690			(690	)

Balance, end of period December 31, 2021	$	12,294		$	2,222

Amount refundable at beginning of period	$	11,607		$	1,869
Amount refundable at end of period	$	12,282		$	2,222

We expect to satisfy these performance obligations as follows:

Trade and barter revenue and expenses were as follows:


	Year Ended
	December 31,
	2020		2021

Net broadcast barter revenue	$	2,810	$	2,567
Net digital media barter revenue		—		—
Net publishing barter revenue		38		—
Net broadcast barter expense	$	2,952	$	2,638
Net digital media barter expense		—		—
Net publishing barter expense		1		(5	)