THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Consolidated Financial Statements
March 31, 2022
(With Independent Auditors’ Report Thereon)

KPMG LLP
Suite 1900
440 Monticello Avenue
Norfolk, VA 23510

Independent Auditors’ Report
The Board of Directors
The Christian Broadcasting Network, Inc.:
OpinionWe have audited the consolidated financial statements of The Christian Broadcasting Network, Inc. andaffiliated organizations (collectively, CBN), which comprise the consolidated statement of financial position as ofMarch 31, 2022, and the related consolidated statements of activities and cash flows for the year then ended,and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, thefinancial position of CBN as of March 31, 2022, and the results of their operations and their cash flows for theyear then ended in accordance with U.S. generally accepted accounting principles.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica (GAAS). Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to
be independent of CBN and to meet our other ethical responsibilities, in accordance with the relevant ethicalrequirements relating to our audit. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with U.S. generally accepted accounting principles, and for the design, implementation, andmaintenance of internal control relevant to the preparation and fair presentation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there areconditions or events, considered in the aggregate, that raise substantial doubt about CBN’s ability to continue
as a going concern for one year after the date that the consolidated financial statements are issued.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance andtherefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by areasonable user based on the consolidated financial statements.

KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.

In performing an audit in accordance with GAAS, we:●

Exercise professional judgment and maintain professional skepticism throughout the audit.

●

Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks. Suchprocedures include examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements.

●

Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of CBN’s internal control. Accordingly, no such opinion is expressed.

●

Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of theconsolidated financial statements.

●

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, thatraise substantial doubt about CBN’s ability to continue as a going concern for a reasonable period oftime.

We are required to communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, and certain internal control related matters that
we identified during the audit.

Norfolk, Virginia
July 21, 20222

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Consolidated Statement of Financial Position
March 31, 2022

AssetsCurrent assets:
Cash and cash equivalents (note 8)
Investments (notes 3 and 8)
Contributions receivable, net (note 4)
Accounts receivable, net
Prepaid expenses and other (note 7)
Gifts-in-kind inventories (note 1(f))$

106,872,088
32,028,067
70,718,242
1,337,668
11,436,761
8,073,041

Total current assets

230,465,867

Property and equipment, net (notes 5, 9 and 10)
Fiduciary assets (notes 6 and 8)
Long-term contributions receivable, net (note 4)
Other assets (note 7)

73,705,206
10,476,759
1,189,100
12,880,133

Total assets$

328,717,065$

17,954,756
2,848,321
8,073,041
897,686

Liabilities and Net Assets
Current liabilities:
Accounts payable and accrued liabilities
Current maturities of long-term debt (note 9)
Deferred gifts-in-kind revenue (note 1(f))
Other current liabilities (note 10)
Total current liabilities

29,773,804

Fiduciary liabilities (note 6)Long-term debt, excluding current portion (note 9)
Other long-term liabilities (note 10)6,506,737
51,484,245
880,972

Total liabilities

88,645,758

Net assets:
Without donor restrictions
With donor restrictions (note 12)

127,495,635
112,575,672

Total net assets

240,071,307

Commitments and contingencies (notes 10 and 15)
Total liabilities and net assets$

See accompanying notes to consolidated financial statements.

3

328,717,065

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Consolidated Statement of Activities
Year ended March 31, 2022

Without donor
restrictions

With donor
restrictions

Total

213,550,790
55,364,543
780,893
18,331,835

107,912,805———

321,463,595
55,364,543
780,893
18,331,835

288,028,061

107,912,805

395,940,866

95,495,193(95,495,193)—

383,523,254

12,417,612

395,940,866

63,734,444
129,040,668
92,005,044
14,219,538
2,924,899

—
—
—
—
—

63,734,444
129,040,668
92,005,044
14,219,538
2,924,899

301,924,593—

301,924,593

32,330,953
17,376,618——

32,330,953
17,376,618

49,707,571—

49,707,571

10,088,682(6,840,536)(2,457,124)———

10,088,682(6,840,536)(2,457,124)

791,022—

791,022——

153,784
277,872

153,784
277,872

Total other activities

791,022431,656

1,222,678

Increase in net assets

32,682,112

12,849,268

45,531,380

94,813,523

99,726,404

194,539,927

127,495,635

112,575,672

240,071,307

Ministry support and other revenue:
Ministry support
Gifts-in-kind (note 1(f))
Investment gain, net (note 3)
Other revenue$

Net assets released from restrictions (note 13)
Total ministry support and revenue
Ministry and program expenses:
Evangelistic outreach – domestic
Evangelistic outreach – international
Operation Blessing and humanitarian relief (note 1(f))
Prayer ministry
Donations to others to further the Gospel
Total ministry and program expenses
Supporting services:
Fundraising
General and administrative
Total supporting services
Other activities:
Land development:
Revenues
Operating expenses
Depreciation and amortization
Land development activities, net
Changes in split-interest agreements (note 6)
Change in value of restricted investments (note 3 and 6)

Net assets at beginning of year
Net assets at end of year$

See accompanying notes to consolidated financial statements.

4THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Consolidated Statement of Cash Flows
Year ended March 31, 2022

Cash flows from operating activities:
Increase in net assets
Adjustments to reconcile increase in net assets to net cash provided
by operating activities:
Depreciation and amortization
Loss on disposal of property and equipment, net
Loss due to currency conversion, net
Investment gain, net
Changes in assets and liabilities:
Accounts receivable
Contributions receivable
Prepaid expenses and other
Fiduciary assets
Other assets
Accounts payable and accrued liabilities
Fiduciary liabilities
Other liabilities$

45,531,380

12,984,524
650,686
166,065(1,058,765)
294,706(3,064,471)(4,008,141)
1,159,445(253,270)
2,501,814(391,104)
78,083

Net cash provided by operating activities

54,590,952

Cash flows from investing activities:
Proceeds from sale of investments
Purchases of investments
Purchases of property and equipment
Proceeds from disposal of property and equipment

837,209(15,135,641)(9,502,174)
332,668

Net cash used in investing activities(23,467,938)

Cash flows from financing activities:
Proceeds from issuance of long-term debt
Payments on long-term debt

472,320(1,866,926)

Net cash used in financing activities(1,394,606)

Increase in cash and cash equivalents

29,728,408

Cash and cash equivalents at beginning of year

77,143,680

Cash and cash equivalents at end of year$

106,872,088

Supplemental disclosure of cash flow information:
Cash paid during the period for interest$

1,738,845$(166,065)
150,411
372,543

Supplemental disclosures of noncash operating and investing activities:
Revaluation of international property and equipment due to change in conversion rates
Acquisition of property and equipment in accounts payable at year-end
Acquisition of property and equipment from issuance of debt

See accompanying notes to consolidated financial statements.

5THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

(1) The Organization and Summary of Significant Accounting Policies(a) Organization
The mission of The Christian Broadcasting Network, Inc. and its affiliated organizations (CBN or the
Ministry) is to preach the gospel of Jesus Christ to all the world as a witness unto all nations (seeMatthew 24:14). In achieving this mission, CBN’s chief method is the strategic use of masscommunication, especially television (both domestic and international), the internet, and the distributionof teaching materials in the form of CDs, DVDs, films, animation, and literature. CBN’s purpose is totrain the young and old on the principles of the Kingdom of God, and their application to everyday life.
The Ministry also provides prayer ministry, financial, medical and humanitarian aid to the needy
365 days a year, worldwide.
(b) Basis of Presentation
The consolidated financial statements include The Christian Broadcasting Network, Inc. and its
subsidiaries and affiliated organizations under common control. All significant intercompany
transactions and accounts have been eliminated in consolidation. The consolidated financial
statements of the Ministry have been prepared on the accrual basis of accounting.
These consolidated financial statements have been prepared to focus on the Ministry as a whole and topresent balances and transactions according to the existence or absence of donor-imposed
restrictions. Net assets and revenues, gains, and losses, are classified based on the existence orabsence of donor-imposed restrictions. The Ministry’s net assets are segregated into two net asset
groups:Net assets without donor restrictions – Net assets not subject to donor-imposed stipulations
Net assets with donor restrictions – Net assets subject to donor-imposed stipulations. Donor-imposed
restrictions that are temporary in nature will be met by actions pursuant to the stipulations and/or thepassage of time. Donor-imposed restrictions that are perpetual in nature neither expire by the passageof time nor can be fulfilled or otherwise removed by actions of the Ministry. Investment income (loss)
and unrealized gains and losses from resources held in perpetuity can be either restricted orunrestricted.
Revenues are reported as increases in net assets without donor restrictions unless use of the related
assets is limited by donor-imposed stipulations. Certain contributions received with donor-imposed
stipulations are reported as increases to ministry support without donor restrictions if the restrictedpurpose is met in the same period. All other contributions received and contributions receivable withdonor-imposed time or purpose stipulations are reported as increases to net assets with donor
restrictions as applicable. Realized and unrealized gains and losses on investments are reported asincreases or decreases in net assets without donor restrictions unless their use is restricted by donors.
Expirations of temporary restrictions on net assets (i.e., the donor-stipulated purpose has been fulfilled
and/or the stipulated time period has elapsed) are reported as reclassifications from net assets withdonor restrictions to net assets without donor restrictions (note 13). Temporary restrictions on gifts toacquire long-lived assets are considered met in the period the assets are placed in service.

6(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022(c) Cash and Cash Equivalents
The Ministry considers all highly liquid financial instruments purchased with an original maturity of
three months or less to be cash equivalents. Cash and cash equivalents that are utilized within amanaged investment portfolio are accounted for as investments. Cash equivalents consisting ofcertificates of deposit and money market funds totaled $65,753,739 at March 31, 2022.
(d) Investments
Investments are stated at fair value based on quoted market prices. Realized gains and losses arederived using the specific-identification method and are included in investment gain, net in theaccompanying consolidated statement of activities.
(e) Contributions Receivable
Contributions receivable are recognized as revenues in the period the unconditional promise is madeby the donor. Contributions to be received after one year are discounted at an appropriate discount ratecommensurate with the risks involved. Amortization of the discount is recorded as additional
contribution revenue in accordance with donor-imposed restrictions, if any, on the promise. Conditional
promises to give are not recognized until the conditions on which they depend are substantially met.
Contributions receivable from irrevocable trusts and estate interests are recorded at CBN’s percent
interest in the estimated fair value based on the fair value of the underlying assets.
(f) Gifts-in-Kind
Gifts-in-kind primarily comprise medicines, school and medical supplies, canned and packaged food,produce, clothing, and other relief products. Gifts-in-kind are recorded at their estimated fair wholesale
value when received. There is inherent uncertainty in determining the fair value of donated products.
Gifts-in-kind revenue and expense are recognized in the year in which the product is distributed.
Amounts at the end of the fiscal year that have not been distributed are included in gifts-in-kindinventories and deferred gifts-in-kind revenue. Expenses associated with these items are
predominantly included in Operation Blessing and humanitarian relief in the accompanying
consolidated statement of activities based on the fair value of the gifts-in-kind donated.
(g) Property and Equipment, Net
Property and equipment are stated at cost or at estimated fair value at the date of gift if acquired by gift,
less accumulated depreciation and amortization. Depreciation is computed utilizing the straight-line
method over the estimated useful lives of the related assets. The estimated useful lives are: buildings
and improvements, 40 years; production and transmission equipment, 6 years; information technology
and other equipment, 6 years; and office furniture and fixtures, 10 years. The cost and associatedaccumulated depreciation of property sold or retired is removed from the accounts and any gain or loss
is reflected in the accompanying consolidated statement of activities.
(h) Fiduciary Assets and Liabilities
CBN is the beneficiary of various revocable and irrevocable trusts. Assets in irrevocable trusts, which
are controlled by CBN, and related deferred income and estimated beneficial interests to others, arerecorded as assets and liabilities, respectively, and recognized as contribution revenue at the present

7(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

value of future distributions to the Ministry in the fiscal year the trust is established. The change in fairvalue of CBN’s interest in irrevocable trusts is included in changes in split-interest agreements in theaccompanying consolidated statement of activities. Trusts that are revocable in nature are not reflectedin CBN’s consolidated financial statements until the trust assets are received.
(i) Other Assets
Other assets comprise certain long-lived assets held for the benefit of the Ministry and are recorded atcost, cost of development, or estimated fair value of the gift, if acquired by gift. Assets held for use by
the Ministry are amortized over their estimated beneficial lives.
(j) Functional Allocation of Expenses
The costs of program and supporting services have been summarized on a functional basis in thestatement of activities. Accordingly, certain costs have been allocated among the Ministry’s various
programs and supporting services benefited. Expenses that can be identified with a specific program or
supporting service are allocated directly. Other expenses that are common to several functions areallocated consistently based on various statistical bases. Total joint costs and respective allocations
are as follows for the year ended March 31, 2022:
Evangelistic outreach – domestic$
Evangelistic outreach – international
Operation blessing and humanitarian relief
Prayer ministry
Fundraising
General and administrative

29,298,521
3,489,399
567,282
5,435,864
25,355,638
6,871,315

Total joint costs

71,018,019$

Joint costs incurred for program airtime, digital media, direct mail and development are allocated basedon content and purpose; utilities, maintenance, property and general liability insurance, depreciation
and amortization are allocated based on square footage; information technology and telephone ministry
are allocated based on time and effort; and personnel costs related to worker’s compensation and lifeand disability insurances, and medical claims expense are allocated based on employee headcount.
(k) Bartered Airtime
The Ministry recognizes the estimated fair value of international airtime received in exchange forproviding program content as ministry support revenue with a corresponding increase to internationalevangelistic outreach expense. The amount recognized as revenue and expense on the accompanying
consolidated statement of activities was approximately $80,649,000 for the year ended March 31,
2022.

8

(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022(l) Noncash Transactions
Gifts-in-kind inventories and deferred gifts-in-kind revenue totaled $8,073,041 at March 31, 2022.
Gifts-in-kind revenue was $55,364,543 and gifts-in-kind expense was $56,068,981 during the year
ended March 31, 2022.
(m) Income Taxes
CBN is classified as an exempt organization for federal income tax purposes under Section 501(c)(3) of
the Internal Revenue Code. Contributions to CBN qualify for a charitable contribution deduction to theextent provided by the law.
The Ministry recognizes or derecognizes its tax positions based on a “more likely than not” threshold.
This applies to positions taken or expected to be taken in a tax return. The consolidated financial
statements do not include any uncertain tax positions.
The Ministry is subject to taxes on its unrelated business income (UBI) as well as its income generated
in its taxable corporate subsidiary. Substantially all of the taxes on UBI were offset by the utilization of
NOL carryforwards. As of March 31, 2022, the Ministry and its taxable subsidiary had unused NOL
carryforwards available to offset future tax liabilities. In determining whether a valuation allowance isrequired, the Ministry evaluates such factors as prior earnings history, expected future earnings,
reversal of existing taxable temporary differences, carry back and carry forward periods and tax
planning strategies that could potentially enhance the likelihood of the realization of a deferred tax
asset. Management has recorded a full valuation allowance of $14,082,559 as of March 31, 2022, forthe future tax benefit of the related deferred tax asset.
(n) Impairment of Long-Lived Assets
Long-lived assets and certain identifiable intangible assets to be held and used are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of
the carrying amount of an asset to future net cash flows expected to be generated by the asset. If thecarrying amount of an asset exceeds its estimated future cash flows, an impairment charge isrecognized by the amount by which the carrying amount of the asset exceeds the fair value of theasset. Assets to be disposed of would be presented separately in the consolidated statement offinancial position and reported at the lower of the carrying amount or fair value less costs to sell, andare no longer depreciated.
(o) Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. generally accepted
accounting principles (GAAP) requires management of the Ministry to make estimates and judgmentsthat affect the reported amounts of assets and liabilities and the disclosures of contingencies at thedate of the consolidated financial statements and revenues and expenses recognized during thereporting periods. Significant items subject to such estimates and judgments include: the valuation ofcontributions and accounts receivable; future distributions from fiduciary assets: bartered airtime;
gifts-in-kind contributions; the estimated useful life of property and equipment and other long-lived
assets; and the allocation of joint costs. Actual results could differ from those estimates.
9(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

(p) Subsequent Events
The preparation of consolidated financial statements in conformity with GAAP requires entities toevaluate events that occur after the balance sheet date but before the consolidated financial
statements are issued for potential recognition or disclosure. Entities are required to disclose the datethrough which subsequent events were evaluated, as well as the rationale for why that date wasselected. In preparing these consolidated financial statements, the Ministry has evaluated events andtransactions for potential recognition or disclosure through July 21, 2022.
On April 27, 2022, the Ministry entered into an $828,324 term loan agreement collateralized byequipment. The loan bears interest at a rate of 4.39% and matures April 2027.
The Ministry is not aware of any other specific events or transactions occurring after March 31, 2022,
and up to July 21, 2022, the date the consolidated financial statements were available to be issued,that could have a material impact on the presentation of the accompanying consolidated financial
statements.
(2) Liquidity and Availability
The following represents the Ministry’s financial assets at March 31, 2022:
Financial assets at year end:
Cash and cash equivalents
Investments
Contributions receivable, net
Accounts receivable, net
Fiduciary assets, net
Non-managed trusts$

Total financial assets

106,872,088
32,028,067
71,907,342
1,337,668
3,970,022
1,034,527
217,149,714

Less amounts not available to be used within one year:
Minimum cash and cash equivalents and investments to be held forcompliance with existing debt covenants
Net assets with donor restrictions
Less net assets with time or purpose restrictions to be met in lessthan a year

4,000,000
112,575,672(102,645,633)
13,930,039

Financial assets available to meet general expenditures over the
next twelve months$

203,219,675

CBN regularly monitors liquidity and maintains liquidity reserves required to meet its operational needs. In
addition to financial assets available to meet general expenditures over the next year, the Ministry operates
with a balanced budget and anticipates collecting sufficient revenue to cover general expenditures notcovered by donor-restricted resources.

10(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

(3) Investments
Investments consist of the following at March 31, 2022:
Cash and cash equivalents
Equity securities
Fixed income funds
Gold and silver$

599,914
9,133,854
20,841,706
1,452,593$

32,028,067

Investment gains, net consists of the following for the year ended March 31, 2022:
Interest and dividends
Net realized gains
Net unrealized losses$

302,539
1,159,979(403,753)$

1,058,765(4) Contributions Receivable, Net
The Ministry has contributions receivable of $71,931,598 as of March 31, 2022. Contributions receivable
expected to be received after one year are netted against a present value discount of 3.75% equal to$24,256, as of March 31, 2022. Contributions receivable at March 31, 2022 are expected to be received asfollows:
Within one year
One to five years
Thereafter$

70,718,242
1,202,119
11,237
71,931,598

Less present value discount(24,256)$

11

71,907,342(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

(5) Property and Equipment, Net
Property and equipment and accumulated depreciation and amortization consist of the following at
March 31, 2022:
Land and improvements
Buildings and improvements
Production and transmission equipment
Information technology and other equipment
Office furniture and fixtures$

23,483,361
103,292,112
49,965,007
63,009,203
12,369,595
252,119,278

Less accumulated depreciation and amortization(178,414,072)$

73,705,206

Property and equipment includes buildings and equipment acquired under existing financing agreements of$6,791,450 at March 31, 2022. Related accumulated depreciation and amortization amounted to$1,799,008.
Property and equipment also includes land, land improvements, buildings, and equipment acquired under
existing financing agreements in the amount of $52,148,838 at March 31, 2022, for two multi-unit
residential housing complexes. Related accumulated depreciation and amortization amounted to$16,374,754 at March 31, 2022, respectively.
(6) Fiduciary Assets and Liabilities
Fiduciary assets and liabilities comprise the following at March 31, 2022:
Charitable remainder unitrusts managed
Split-interest agreements$

4,206,829
6,269,930$

10,476,759

Funds managed for other beneficiaries
Estimated payments due to donors$(1,529,810)(4,976,927)

Liabilities$(6,506,737)

Assets

The change in value of split-interest agreements for net assets with donor restrictions was $153,784 for theyear ended March 31, 2022. Discount rates used to calculate the present value of these assets are thefixed rates associated with each agreement and range from 6% to 10%.
(7) Capitalized Film Costs
The Ministry is engaged in the creation of children’s animation and documentary films for distribution via
DVDs, broadcast television, the internet and theatrical release. The costs of program development are

12(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

capitalized when incurred. The children’s animation is amortized over an estimated economic life of
five years and is included in other assets on the consolidated statement of financial position. Costs
associated with the documentary films are capitalized in prepaid expenses and other on the consolidated
statement of financial position. Capitalized film costs, net, consist of the following at March 31, 2022:
Capitalized film costs – long-termLess accumulated amortization$

47,195,535(37,998,665)
9,196,870

Capitalized film costs – current

3,185,717$

12,382,587(8) Fair Value Measurement of Assets and Liabilities
Financial assets and liabilities measured at fair value on a recurring basis are classified and disclosed in
one of the following three categories known as the “Fair Value Hierarchy:”
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the
Ministry has the ability to access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3 inputs are primarily unobservable inputs for the asset or liability.
The level in the fair value hierarchy within which a measurement falls is based on the lowest level input thatis significant to the fair value measurement in its entirety.
The following tables present assets and liabilities that are measured at fair value on a recurring basis:

Certificates of deposit andmoney market funds
Investments:
Money market funds andtime deposits
Equity securities
Fixed income
Gold and silver
Fiduciary assets
Non-managed trusts$$

March 31,2022

Level 165,753,739

65,753,739——

592,173
9,133,854
20,841,706
1,452,593
10,476,759
1,034,527

592,173
9,133,854
20,841,706
1,452,593
10,476,759
1,034,527

—
—
—
—
—
—

—
—
—
—
—
—

109,285,351

109,285,351

—

—

13

Level 2

Level 3

(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

There were no transfers between Levels 1, 2 or 3 during the year ended March 31, 2022. There were no
assets or liabilities measured at fair value on a nonrecurring basis at March 31, 2022.
(9) Long-Term Debt
Long-term debt consists of the following at March 31, 2022:
Term and life notes bear interest at rates ranging from 4.5% to 9%,
payable on demand
Term notes, collateralized by equipment, bear interest at rates
from 2.17% to 2.20% maturing through September 2026
Nonrecourse mortgage loan, collateralized by land and buildings
associated with multi-unit residential housing complex,
guaranteed by U.S. Department of Housing and Urban
Development, bears interest at a rate of 2.67% maturing
April 2054
Nonrecourse mortgage loan, collateralized by land and buildings
associated with multi-unit residential housing complex,
guaranteed by U.S. Department of Housing and Urban
Development, bears interest at a rate of 2.83% maturing
May 2051
Mortgage loan, collateralized by land and a commercial officebuilding, bears interest at a rate of 4.5%, maturing July 2024$

1,337,213
333,980

31,556,875

20,063,501
1,526,138
54,817,707

Less:
Debt issuance costs, net
Current maturities(485,141)(2,848,321)$

51,484,245

Total interest expense in fiscal year 2022 was $1,720,855, which includes $26,822 of amortization of debt
issuance costs. Debt issuance costs are being amortized using imputed interest rates of 3.62% to 3.82%.

14(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

Aggregate annual maturities of long-term debt at March 31, 2022 are as follows:Year ending March 31:
2023
2024
2025
2026
2027
Thereafter$

2,848,321
2,074,678
1,491,015
1,248,907
1,240,070
45,914,716$

54,817,707

The Ministry’s debt agreements contain certain financial covenants of which the most restrictive requires a$4,000,000 minimum balance of cash and cash equivalents and investments. The Ministry was incompliance with these covenants as of March 31, 2022.
(10) Lease Commitments
Future minimum commitments for all noncancelable leases are as follows:
CapitalleasesYear ending March 31:
2023
2024
2025
2026
2027
Thereafter$

199,904
191,096
142,737
11,507——545,244

Less amount representing interest

Operatingleases3,741,213
2,927,965
2,509,363
2,346,073
2,134,744
3,353,413$

17,012,771(40,051)

Present value of net minimum lease payments
under capital leases

505,193

Less current portion(176,482)$

328,711

Total rent expense of facilities and equipment amounted to $4,866,461 in fiscal year 2022.
Capital leases are collateralized by their respective equipment.

15(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022(11) Retirement Plan
CBN has defined contribution savings and retirement plan available for all regular employees. All
contributions to these plans are fully vested. CBN made contributions totaling $870,177 in fiscal year 2022.
(12) Net Assets with Donor Restrictions
Net assets with donor restrictions consist of the following at March 31, 2022:
Operations:Fiduciary assets, net (note 6)$
Contributions receivable (note 4)
Donor-restricted contributions (primarily
international outreach and operation blessing)$

3,970,022
62,983,774
45,621,876
112,575,672

Net assets with donor restrictions that are perpetual in nature at March 31, 2022 consist of investments andfiduciary assets to be held in perpetuity with earnings to be used for unrestricted program activities.
(13) Net Assets Released from Restrictions
Net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose orby the occurrence of other events specified by donors. Total net assets released were $95,495,193 for theyear ended March 31, 2022.

16(Continued)

THE CHRISTIAN BROADCASTING NETWORK, INC.
AND AFFILIATED ORGANIZATIONS
Notes to Consolidated Financial Statements
March 31, 2022

(14) Schedule of Functional Expenses
The schedule of functional expenses for the year ended March 31, 2022 is as follows:

Employment expenses
AirtimeGifts-in-kind
Direct mail
Production costs
Rent expense and utilities
Equipment, maintenanceand repair
TravelProfessional services
Licenses and fees
Humanitarian aid andcontributions to others
Depreciation, amortizationand other$$

Ministry andprogramFundraising

General andadministrative

73,403,224
102,732,732
57,555,899
1,126,160
6,151,645
6,596,701

14,794,618
2,173,883
43,544
8,819,692
204,294412,295

8,342,584——
370,685
13,066
468,41396,540,426
104,906,615
57,599,443
10,316,537
6,369,005
7,477,409

3,880,214
2,569,712
8,369,420
4,886,729

788,643
238,850
1,351,656
1,061,728

812,898
138,487
2,675,438
1,889,313

5,481,755
2,947,049
12,396,514
7,837,770

20,445,476——

20,445,476

14,206,681

2,441,750

2,665,734

19,314,165

301,924,593

32,330,953

17,376,618

351,632,164

Total(15) Commitments and Contingencies
The Ministry is subject to various legal proceedings and claims, which arise in the ordinary course of its
business. Management believes that the outcome of these matters will not have a material adverse effecton the Ministry’s consolidated statement of financial position or consolidated statement of activities.

17