Quarterly report pursuant to Section 13 or 15(d)

Broadcast Licenses (Tables)

v3.20.2
Broadcast Licenses (Tables)
6 Months Ended
Jun. 30, 2020
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, 2019
    
Six Months Ended

June 30, 2020
 
    
(Dollars in thousands)
 
Balance before cumulative loss on impairment, beginning of period
   $ 484,691     
$
441,143
 
Accumulated loss on impairment, beginning of period
     (108,375   
 
(103,285
  
 
 
    
 
 
 
Balance after cumulative loss on impairment, beginning of period
     376,316     
 
337,858
 
  
 
 
    
 
 
 
Acquisitions of radio stations
     617     
 
—  
 
Acquisitions of FM translators and construction permits
     35     
 
—  
 
Capital projects
     300     
 
—  
 
Dispositions of radio stations
     (36,502   
 
—  
 
Impairments based on the estimated fair value of broadcast licenses
     (2,908   
 
(16,994
  
 
 
    
 
 
 
Balance, end of period after cumulative loss on impairment
   $ 337,858     
$
320,864
 
  
 
 
    
 
 
 
Balance, end of period before cumulative loss on impairment
   $ 441,143     
$
441,143
 
Accumulated loss on impairment, end of period
     (103,285   
 
(120,279
  
 
 
    
 
 
 
Balance, end of period after cumulative loss on impairment
   $ 337,858     
$
320,864
 
  
 
 
    
 
 
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 March 31, 2020:
 
Market Cluster
  
Excess Fair Value
March 31, 2020
Estimate
 
Boston, MA
     4.8
Chicago, IL
     (9.0 %) 
Cleveland, OH
     (18.4 %) 
Dallas, TX
     8.5
Louisville, KY
     (21.8 %) 
New York, NY
     7.3
Philadelphia, PA
     (13.1 %) 
Portland, OR
     (14.8 %) 
Sacramento, CA
     (9.6 %) 
San Francisco, CA
     1.2
Tampa, FL
     (28.0 %) 
Broadcast Licenses [Member]  
Indefinite-lived Intangible Assets [Line Items]  
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 the broadcast licenses subject to testing were as follows:
 
Broadcast Licenses
  
December 31, 2019
  
March 31, 2020
Risk-adjusted discount rate
   9.0%   
9.5%
Operating profit margin ranges
  
4.0% - 33.8%
  
4.6% - 33.8%
Long-term revenue growth rates
   0.7% - 1.1%   
0.8% - 1.1%