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

Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018	$	12,763		$	1,951
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(6,864	)		—
Additional amounts recognized during the period		16,448			574
Revenue recognized during the period that was recorded during the period		(10,971	)		—

We expect to satisfy these performance obligations as follows:


	Amount
For the Twelve Months Ended September 30,	(Dollars in thousands)
2019	$	12,348
2020		719
2021		354
2022		177
2023		101
Thereafter		202

	$	13,901

Trade and barter revenues and expenses were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2018		2017		2018
	(Dollars in thousands)
Net broadcast barter revenue	$	1,580	$	1,384	$	4,105	$	4,915
Net digital media barter revenue		—		—		—		93
Net publishing barter revenue		7		3		47		10

Net broadcast barter expense	$	1,663	$	1,458	$	3,928	$	4,211
Net digital media barter expense		—		3		—		3
Net publishing barter expense		1		7		84		9

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


	Nine Months Ended September 30, 2018
	Broadcast		Digital Media		Publishing		Consolidated
	(dollars in thousands)
By Source of Revenue:
Block Programming - National	$	37,318	$	—	$	—	$	37,318
Block Programming - Local		24,643		—		—		24,643
Spot Advertising - National		12,126		—		—		12,126
Spot Advertising - Local		41,224		—		—		41,224
Infomercials		1,464		—		—		1,464
Network		14,501		—		—		14,501
Digital Advertising		4,764		16,159		346		21,269
Digital Streaming		584		3,316		—		3,900
Digital Downloads and eBooks		—		3,722		1,155		4,877
Subscriptions		789		6,052		699		7,540
Book Sales and e-commerce		360		1,533		9,673		11,566
Self-Publishing fees		—		—		4,231		4,231
Advertising - Print		36		—		454		490
Other Revenues		9,616		269		561		10,446

	$	147,425	$	31,051	$	17,119	$	195,595

Timing of Revenue Recognition
Point in Time	$	145,892	$	30,969	$	17,073	$	193,934
Rental Income(1)		1,533		82		46		1,661

	$	147,425	$	31,051	$	17,119	$	195,595

(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.