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

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2022

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


	Nine Months Ended September 30, 2022
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	39,998	$	—	$	—		$	39,998
Block Programming – Local		18,183		—		—			18,183

Broadcast Programming Revenue		58,181		—		—			58,181

Spot Advertising – National		11,344		—		—			11,344
Spot Advertising – Local		31,915		—		—			31,915
Network Advertising		15,961		—		—			15,961

Broadcast Advertising Revenue		59,220		—		—			59,220

Infomercials		569		—		—			569
Other Revenue		6,789		—		—			6,789

Other Broadcast Revenue		7,358		—		—			7,358

Digital Advertising		21,042		13,453		—			34,495
Digital Streaming		3,915		2,687		—			6,602
Digital Downloads		546		5,485		—			6,031
Digital Subscriptions		731		9,549		—			10,280
Other Digital Revenue		1,027		119		—			1,146

Digital Revenue		27,261		31,293		—			58,554

Book Sales		—		—		10,816			10,816
Estimated Sales Returns & Allowances		—		—		(2,799	)		(2,799	)

Net Book Sales		—		—		8,017			8,017

E-Book Sales		—		—		937			937
Self-Publishing Fees		—		—		5,189			5,189
Other Publishing Revenue		—		—		697			697

Publishing Revenue		—		—		14,840			14,840

	$	152,020	$	31,293	$	14,840		$	198,153

Timing of Revenue Recognition
Point in Time	$	150,352	$	31,293	$	14,840		$	196,485
Rental Income (1)		1,668		—		—			1,668

	$	152,020	$	31,293	$	14,840		$	198,153


	Nine Months Ended September 30, 2021
	Broadcast		Digital Media		Publishing			Consolidated

	(Dollars in thousands)
By Source of Revenue:
Block Programming – National	$	35,824	$	—	$	—		$	35,824
Block Programming – Local		18,072		—		—			18,072

Broadcast Programming Revenue		53,896		—		—			53,896

Spot Advertising – National		10,565		—		—			10,565
Spot Advertising – Local		30,123		—		—			30,123
Network Advertising		14,729		—		—			14,729

Broadcast Advertising Revenue		55,417		—		—			55,417

Infomercials		682		—		—			682
Other Revenue		6,825		—		—			6,825

Other Broadcast Revenue		7,507		—		—			7,507

Digital Advertising		18,415		13,859		132			32,406
Digital Streaming		3,559		2,579		—			6,138
Digital Downloads		510		4,796		—			5,306
Digital Subscriptions		828		9,227		—			10,055
Other Digital Revenue		290		142		—			432

Digital Revenue		23,602		30,603		132			54,337

Book Sales		—		—		15,074			15,074
Estimated Sales Returns & Allowances		—		—		(4,223	)		(4,223	)

Net Book Sales		—		—		10,851			10,851

E-Book Sales		—		—		1,294			1,294
Self-Publishing Fees		—		—		4,730			4,730
Print Magazine Subscriptions		—		—		262			262
Print Magazine Advertisements		—		—		123			123
Other Publishing Revenue		—		—		701			701

Publishing Revenue		—		—		17,961			17,961

	$	140,422	$	30,603	$	18,093		$	189,118


	Nine Months Ended September 30, 2021
	Broadcast		Digital Media		Publishing		Consolidated

	(Dollars in thousands)
Timing of Revenue Recognition
Point in Time	$	138,540	$	30,603	$	18,093	$	187,236
Rental Income (1)		1,882		—		—		1,882

	$	140,422	$	30,603	$	18,093	$	189,118

(1)	Rental income is not applicable to FASB 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.

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, 2022	$	12,294		$	2,222
Revenue recognized during the period that was included in the beginning balance of contract liabilities		(8,916	)		—
Additional amounts recognized during the period		18,277			643
Revenue recognized during the period that was recorded during the period		(10,807	)		—
Transfers		895			(895	)

Balance, end of period September 30, 2022	$	11,743		$	1,970

Amount refundable at beginning of period	$	12,282		$	2,222
Amount refundable at end of period	$	11,731		$	1,970

We expect to satisfy these performance obligations as follows:

Trade and barter revenues and expenses were as follows:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2022		2021			2022
	(Dollars in thousands)
Net broadcast barter revenue	$	582		$	593	$	1,647		$	2,118
Net digital media barter revenue		—			—		—			—
Net publishing barter revenue		—			—		—			—
Net broadcast barter expense	$	619		$	472	$	1,704		$	2,104
Net digital media barter expense		—			—		—			—
Net publishing barter expense		(2	)		—		(5	)		—