Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | IMAX Corporation | ||
Entity Central Index Key | 0000921582 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 781.2 | ||
Entity Common Stock, Shares Outstanding | 53,969,868 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Title of 12(b) Security | Common Shares, no par value | ||
Trading Symbol | IMAX | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-35066 | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Tax Identification Number | 98-0140269 | ||
Entity Address, Address Line One | 2525 Speakman Drive | ||
Entity Address, City or Town | Mississauga | ||
Entity Address, State or Province | ON | ||
Entity Address, Country | CA | ||
Entity Address, Postal Zip Code | L5K 1B1 | ||
City Area Code | (905) | ||
Local Phone Number | 403-6500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Firm ID | 271 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Toronto, Canada | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement to be filed within 120 days of the close of IMAX Corporation’s fiscal year ended December 31, 2022 , with the Securities and Exchange Commission pursuant to Regulation 14A involving the election of directors and the annual meeting of the stockholders of the registrant (the “Proxy Statement”) are incorporated by reference in Part III of this Form 10-K to the extent described therein. | ||
Other Address [Member] | |||
Document Information [Line Items] | |||
Entity Address, Address Line One | 902 Broadway, Floor 20 | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Country | US | ||
Entity Address, Postal Zip Code | 10010 | ||
City Area Code | (212) | ||
Local Phone Number | 821-0100 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 97,401 | $ 189,711 |
Accounts receivable, net of allowance for credit losses | 136,142 | 110,050 |
Financing receivables, net of allowance for credit losses | 129,384 | 141,049 |
Variable consideration receivables, net of allowance for credit losses | 44,024 | 44,218 |
Inventories | 31,534 | 26,924 |
Prepaid expenses | 12,343 | 11,802 |
Film assets, net of accumulated amortization | 5,277 | 4,241 |
Property, plant and equipment, net of accumulated depreciation | 252,896 | 260,353 |
Investment in equity securities | 1,035 | 1,087 |
Other assets | 15,665 | 17,799 |
Deferred income tax assets, net of valuation allowance | 9,900 | 13,906 |
Goodwill | 52,815 | 39,027 |
Other intangible assets, net of accumulated amortization | 32,738 | 23,080 |
Total assets | 821,154 | 883,247 |
Liabilities | ||
Accounts payable | 25,237 | 15,943 |
Accrued and other liabilities | 117,286 | 111,896 |
Deferred revenue | 70,940 | 81,281 |
Revolving credit facility borrowings, net of unamortized debt issuance costs | 36,111 | 2,472 |
Convertible notes and other borrowings, net of unamortized discounts and debt issuance costs | 226,912 | 223,641 |
Deferred income tax liabilities | 14,900 | 17,642 |
Total liabilities | 491,386 | 452,875 |
Commitments, contingencies and guarantees (see Notes 16 and 17) | ||
Non-controlling interests | ||
Non-controlling interests | 722 | 758 |
Shareholders' equity | ||
Capital stock common shares - no par value. Authorized - unlimited number. 54,148,614 issued and outstanding (December 31, 2021 - 58,653,642 issued and outstanding) | 376,715 | 409,979 |
Other equity | 185,678 | 174,620 |
Statutory surplus reserve | 3,932 | 3,932 |
Accumulated deficit | (293,124) | (234,975) |
Accumulated other comprehensive (loss) income | (9,846) | 2,527 |
Total shareholders' equity attributable to common shareholders | 263,355 | 356,083 |
Non-controlling interests | 65,691 | 73,531 |
Total shareholders' equity | 329,046 | 429,614 |
Total liabilities and shareholders' equity | $ 821,154 | $ 883,247 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Shareholders' equity | ||
Common stock, par value | ||
Common stock, shares issued | 54,148,614 | 58,653,642 |
Common stock, shares outstanding | 54,148,614 | 58,653,642 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues, total | $ 300,805 | $ 254,883 | $ 137,003 |
Costs and expenses applicable to revenues | |||
Cost and expenses applicable to revenues, total | 144,450 | 120,477 | 115,463 |
Gross margin | 156,355 | 134,406 | 21,540 |
Selling, general and administrative expenses | 138,043 | 117,322 | 108,485 |
Research and development | 5,300 | 6,944 | 5,618 |
Amortization of intangible assets | 4,829 | 4,877 | 5,394 |
Credit loss expense (reversal), net | 8,547 | (3,951) | 18,608 |
Asset impairments | 4,470 | 1,151 | |
Legal judgment and arbitration awards | 0 | (1,770) | 4,105 |
(Loss) income from operations | (4,834) | 10,984 | (121,821) |
Realized and unrealized investment gains (losses) | 70 | 5,340 | (2,081) |
Retirement benefits non-service expense | (556) | (463) | (600) |
Interest income | 1,428 | 2,218 | 2,388 |
Interest expense | (5,877) | (7,092) | (7,010) |
(Loss) income before taxes | (9,769) | 10,987 | (129,124) |
Income tax expense | (10,108) | (20,564) | (26,504) |
Equity in losses of investees, net of tax | 0 | 0 | (1,858) |
Net loss | (19,877) | (9,577) | (157,486) |
Net (income) loss attributable to non-controlling interests | (2,923) | (12,752) | 13,711 |
Net loss attributable to common shareholders | $ (22,800) | $ (22,329) | $ (143,775) |
Net loss per share attributable to common shareholders - basic and diluted: | |||
Net loss per share - basic | $ (0.40) | $ (0.38) | $ (2.43) |
Net loss per share - diluted | $ (0.40) | $ (0.38) | $ (2.43) |
Weighted average shares outstanding - basic | 56,674 | 59,126 | 59,237 |
Weighted average shares outstanding - diluted | 56,674 | 59,126 | 59,237 |
Technology Sales [Member] | |||
Revenues | |||
Revenues, total | $ 69,158 | $ 66,153 | $ 49,728 |
Costs and expenses applicable to revenues | |||
Cost and expenses applicable to revenues, total | 37,610 | 37,039 | 33,170 |
Image Enhancement and Maintenance Services [Member] | |||
Revenues | |||
Revenues, total | 161,379 | 131,148 | 59,318 |
Costs and expenses applicable to revenues | |||
Cost and expenses applicable to revenues, total | 81,834 | 58,062 | 53,598 |
Technology Rentals [Member] | |||
Revenues | |||
Revenues, total | 61,786 | 46,790 | 17,841 |
Costs and expenses applicable to revenues | |||
Cost and expenses applicable to revenues, total | 25,006 | 25,376 | 28,695 |
Finance Income [Member] | |||
Revenues | |||
Revenues, total | $ 8,482 | $ 10,792 | $ 10,116 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (19,877) | $ (9,577) | $ (157,486) |
Other comprehensive (loss) income, before tax | |||
Unrealized defined benefit plan actuarial gain (loss) | 2,901 | 132 | (897) |
Unrealized postretirement benefit plans actuarial gain (loss) | 754 | 140 | (351) |
Amortization of prior service cost | 184 | 185 | 87 |
Unrealized net (loss) gain from cash flow hedging instruments | (1,323) | 468 | 500 |
Realized net loss (gain) from cash flow hedging instruments | 596 | (1,707) | 604 |
Reclassification of unrealized gain from ineffective cash flow hedging instruments | (318) | ||
Foreign currency translation adjustments | (20,594) | 3,364 | 5,992 |
Total other comprehensive (loss) income, before tax | (17,482) | 2,264 | 5,935 |
Income tax (expense) benefit related to other comprehensive income | (818) | 286 | 55 |
Other comprehensive (loss) income, net of tax | (18,300) | 2,550 | 5,990 |
Comprehensive loss | (38,177) | (7,027) | (151,496) |
Comprehensive loss (income) attributable to non-controlling interests | 3,004 | (13,763) | 11,899 |
Comprehensive loss attributable to common shareholders | $ (35,173) | $ (20,790) | $ (139,597) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net loss | $ (19,877) | $ (9,577) | $ (157,486) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 56,661 | 56,082 | 52,704 |
Amortization of deferred financing costs | 3,177 | 2,513 | 902 |
Credit loss expense (reversal), net | 8,547 | (3,951) | 18,608 |
Write-downs, including asset impairments | 7,176 | 1,764 | 17,729 |
Deferred income tax (benefit) expense | (2,073) | 2,996 | 23,618 |
Share-based and other non-cash compensation | 27,573 | 26,079 | 22,038 |
Unrealized foreign currency exchange loss (gain) | 1,108 | 256 | (1,355) |
Realized and unrealized investment (gains) losses | (70) | (5,340) | 2,081 |
Equity in losses of investees | 0 | 0 | 1,858 |
Changes in assets and liabilities: | |||
Accounts receivable | (29,003) | (52,453) | 33,597 |
Inventories | (5,529) | 11,451 | 1,637 |
Film assets | (19,598) | (14,810) | (7,665) |
Deferred revenue | (11,572) | (6,591) | (6,637) |
Changes in other operating assets and liabilities | 801 | (2,354) | (24,640) |
Net cash provided by (used in) operating activities | 17,321 | 6,065 | (23,011) |
Investing Activities | |||
Acquisition of SSIMWAVE Inc., net of cash and cash equivalents acquired | (15,939) | ||
Purchase of property, plant and equipment | (8,424) | (3,590) | (697) |
Investment in equipment for joint revenue sharing arrangements | (19,803) | (10,094) | (6,654) |
Interest in film classified as a financial instrument | (4,731) | ||
Acquisition of other intangible assets | (4,394) | (4,092) | (1,904) |
Proceeds from sale of equity securities | 17,769 | ||
Net cash used in investing activities | (53,291) | (7) | (9,255) |
Financing Activities | |||
Proceeds from issuance of convertible notes, net | 223,675 | ||
Debt issuance costs related to convertible notes | (1,161) | ||
Purchase of capped calls related to convertible notes | (19,067) | ||
Revolving credit facility borrowings | 37,871 | 3,600 | 287,610 |
Repayments of revolving credit facility borrowings | (3,600) | (307,609) | |
Credit facility amendment fees paid | (2,279) | (527) | (1,073) |
Treasury stock purchased for future settlement of restricted share units | (3,086) | ||
Taxes withheld and paid on employee stock awards vested | (3,687) | (3,660) | (512) |
Common shares issued - stock options exercised | 883 | ||
Principal payment under finance lease obligations | (948) | ||
Dividends paid to non-controlling interests | (2,704) | (4,889) | (4,214) |
Net cash (used in) provided by financing activities | (58,514) | (132,720) | 240,567 |
Effects of exchange rate changes on cash | 2,174 | (1,006) | (406) |
(Decrease) increase in cash and cash equivalents during year | (92,310) | (127,668) | 207,895 |
Cash and cash equivalents, beginning of year | 189,711 | 317,379 | 109,484 |
Cash and cash equivalents, end of year | 97,401 | 189,711 | 317,379 |
IMAX Corporation | |||
Financing Activities | |||
Repurchase of common shares | (80,124) | (13,905) | (36,624) |
IMAX China | |||
Financing Activities | |||
Repurchase of common shares | $ (3,043) | $ (10,060) | $ (1,534) |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands | Total | Capital Stock [Member] | Other Equity [Member] | Statutory Surplus Reserve [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-controlling Interests [Member] | Common Shares Issued and Outstanding [Member] |
Balance, beginning of year at Dec. 31, 2019 | $ 419,348 | $ 180,225 | $ (40,253) | $ (3,190) | ||||
Movement of Shareholders' Equity | ||||||||
Amortization of share-based payment expense - stock options | 2,426 | |||||||
Amortization of share-based payment expense - restricted share units | 13,532 | |||||||
Amortization of share-based payment expense - performance stock units | 2,708 | |||||||
Change in shares held in treasury | 4,027 | |||||||
Restricted share units vested | 1,448 | (9,370) | ||||||
Change in ownership interest related to IMAX China common share repurchases | (676) | $ (858) | ||||||
Common shares repurchased and retired | (17,803) | (18,821) | ||||||
Net income (loss) attributable to common shareholders | $ (143,775) | (143,775) | ||||||
Net income (loss) attributable to non-controlling interests | (13,711) | (8,572) | ||||||
Other comprehensive (loss) income, net of tax | 5,990 | 4,178 | ||||||
Other comprehensive (loss) income, net of tax | 1,812 | |||||||
Share-based compensation attributable to non-controlling interests | 779 | |||||||
Dividends paid to non-controlling shareholders | (4,214) | |||||||
Shares held in treasury | (723) | |||||||
Balance, end of year at Dec. 31, 2020 | 407,020 | 188,845 | (202,849) | 988 | ||||
Balance, beginning of year at Dec. 31, 2019 | 81,057 | |||||||
Balance, end of year at Dec. 31, 2020 | 70,004 | |||||||
Common shares issued and outstanding, Balance, beginning of year at Dec. 31, 2019 | 61,175,852 | |||||||
Movement of Shareholders' Equity | ||||||||
Restricted share units and stock option exercises settled from treasury shares purchased on open market | 187,020 | |||||||
Restricted share units settled with new treasury shares | 42,982 | |||||||
Repurchase of common shares | (2,484,123) | |||||||
Common shares issued and outstanding, Balance, end of year at Dec. 31, 2020 | 58,921,008 | |||||||
Movement of Shareholders' Equity | ||||||||
Total shareholders' equity | 464,008 | |||||||
Amortization of share-based payment expense - stock options | 1,267 | |||||||
Amortization of share-based payment expense - restricted share units | 17,116 | |||||||
Amortization of share-based payment expense - performance stock units | 5,733 | |||||||
Change in shares held in treasury | 11 | |||||||
Restricted share units vested | 9,833 | (14,740) | ||||||
Employee stock options exercised, net of shares withheld for employee tax obligations | 883 | |||||||
Grant date fair value of stock options exercised | 271 | (271) | ||||||
Change in ownership interest related to IMAX China common share repurchases | (4,263) | (5,797) | ||||||
Purchase of capped calls related to convertible notes | (19,067) | |||||||
Common shares repurchased and retired | (8,039) | (5,865) | ||||||
Net income (loss) attributable to common shareholders | (22,329) | (22,329) | ||||||
Net income (loss) attributable to non-controlling interests | 12,752 | 12,753 | ||||||
Other comprehensive (loss) income, net of tax | 2,550 | 1,539 | ||||||
Other comprehensive (loss) income, net of tax | 1,011 | |||||||
Share-based compensation attributable to non-controlling interests | 449 | |||||||
Establishment of statutory surplus reserve, IMAX China | $ 3,932 | 1,699 | ||||||
Statutory surplus reserve deducted from retained earnings, IMAX China | (3,932) | |||||||
Dividends paid to non-controlling shareholders | (4,889) | |||||||
Balance, end of year at Dec. 31, 2021 | 356,083 | 409,979 | 174,620 | 3,932 | (234,975) | 2,527 | ||
Movement of Shareholders' Equity | ||||||||
Statutory surplus reserve deducted from IMAX China retained earnings | (1,699) | |||||||
Balance, end of year at Dec. 31, 2021 | $ 73,531 | 73,531 | ||||||
Movement of Shareholders' Equity | ||||||||
Employee stock options exercised | 41,613 | |||||||
Restricted share units and stock option exercises settled from treasury shares purchased on open market | 723 | |||||||
Restricted share units settled with new treasury shares | 531,629 | |||||||
Repurchase of common shares | (841,331) | |||||||
Common shares issued and outstanding, Balance, end of year at Dec. 31, 2021 | 58,653,642 | 58,653,642 | ||||||
Movement of Shareholders' Equity | ||||||||
Total shareholders' equity | $ 429,614 | |||||||
Amortization of share-based payment expense - stock options | 637 | |||||||
Amortization of share-based payment expense - restricted share units | 18,952 | |||||||
Amortization of share-based payment expense - performance stock units | 8,495 | |||||||
Restricted share units vested | 11,597 | (16,441) | ||||||
Issuance of common shares in acquisition | 1,947 | $ 160,547 | ||||||
Change in ownership interest related to IMAX China common share repurchases | (585) | (2,458) | ||||||
Common shares repurchased and retired | (46,808) | (35,349) | ||||||
Net income (loss) attributable to common shareholders | (22,800) | (22,800) | ||||||
Net income (loss) attributable to non-controlling interests | 2,923 | 2,959 | ||||||
Other comprehensive (loss) income, net of tax | (18,300) | (12,373) | ||||||
Other comprehensive (loss) income, net of tax | (5,927) | |||||||
Share-based compensation attributable to non-controlling interests | 290 | |||||||
Dividends paid to non-controlling shareholders | (2,704) | |||||||
Balance, end of year at Dec. 31, 2022 | 263,355 | $ 376,715 | $ 185,678 | $ 3,932 | $ (293,124) | $ (9,846) | ||
Balance, end of year at Dec. 31, 2022 | $ 65,691 | $ 65,691 | ||||||
Movement of Shareholders' Equity | ||||||||
Restricted share units settled with new treasury shares | 596,277 | |||||||
Repurchase of common shares | (5,261,852) | |||||||
Common shares issued and outstanding, Balance, end of year at Dec. 31, 2022 | 54,148,614 | 54,148,614 | ||||||
Movement of Shareholders' Equity | ||||||||
Total shareholders' equity | $ 329,046 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | 1. Description of the Business IMAX Corporation, together with its consolidated subsidiaries (the “Company”, or “IMAX”) is a Canadian corporation that was formed in March 1994 as a result of an amalgamation between WGIM Acquisition Corp. and the former IMAX Corporation (“Predecessor IMAX”). Predecessor IMAX was incorporated in 1967. As of December 31, 2022 , IMAX Corporation indirectly owns 71.73 % of IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. IMAX is a premier global technology platform for entertainment and events. Through its proprietary software, theater architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, immersive content experiences for which the IMAX ® brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. As a result, IMAX is among the most important and successful global distribution platforms for domestic and international tentpole films and, increasingly, exclusive experiences ranging from live performances to interactive events with leading artists and creators. The Company leverages its proprietary technology and engineering in all aspects of its business, which principally consists of the digital remastering of films and other content into the IMAX format (“IMAX DMR” ® ) and the sale or lease of premium IMAX theater systems (“IMAX System(s)”). IMAX Systems are based on proprietary and patented image, audio and other technology developed over the course of the Company’s history since its founding in 1967. The customers for IMAX Systems are principally theater exhibitors that operate commercial multiplex theaters, and, to a much lesser extent, museums, science centers and destination entertainment sites. The Company generally does not own the locations in the IMAX network, and is not an exhibitor, but instead sells or leases the IMAX System to exhibitor customers along with a license to use its trademarks and ongoing maintenance services. As of December 31, 2022, there were 1,716 IMAX Systems operating in 87 countries and territories, including 1,633 commercial multiplexes, 12 commercial destinations and 71 institutional locations in the Company's global network. This compares to 1,683 IMAX Systems operating in 87 countries and territories as of December 31, 2021 including 1,599 commercial multiplexes, 12 commercial destinations, and 72 institutional locations in the Company's global network. The Company also distributes large-format documentary films, primarily to institutional theaters, and distributes exclusive experiences ranging from live performances to interactive events with leading artists and creators. In addition, the Company provides film post-production and quality control services for large-format films, whether produced by IMAX or third parties, and digital post-production services. The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements (“JRSA”); (iii) IMAX Systems, (iv) IMAX Maintenance; (v) Other Theater Business; (vi) Film Distribution; and (vii) Film Post-Production, which are described in Note 22 . |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2022 | |
Impact Of Coronavirus Nineteen Pandemic [Abstract] | |
Impact of COVID-19 Pandemic | 2. Impact of COVID-19 Pandemic The COVID-19 pandemic and the measures to prevent its spread have impacted the Company’s business and the global economy. Capacity restrictions and safety protocols were lifted then reinstituted at various points since the third quarter of 2020. Although normal operations have resumed in most key markets and movie theaters throughout the IMAX network, the Company’s business continues to experience impact from COVID-19. For example, following the emergence of the Omicron variant and the rise of COVID-19 cases in China in the first quarter of 2022, the Chinese government reinstituted capacity restrictions and safety protocols on large public gatherings and enforced a zero-COVID policy, which led to the temporary lock-down of various cities and the temporary closure of theaters in these cities. At the end of 2022, the Chinese government relaxed its zero-COVID policies and significantly eased capacity restrictions. As of December 31, 2022, approximately 97 % of the IMAX network in Greater China was open at various capacities. The impact of the COVID-19 pandemic on the Company's business and financial results will continue to depend on numerous evolving factors that cannot be accurately predicted and that will vary by jurisdiction and market. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies The Company prepares its Consolidated Financial Statements in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The significant accounting policies used by the Company are summarized below. (a) Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has evaluated its various variable interests to determine whether they are VIEs as required by U.S. GAAP. The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of and consolidates five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in Note 26 (b). The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which are not material to the Company’s Consolidated Financial Statements. A loss in value of an equity method investment that is other than temporary is recognized as a charge in the Consolidated Statements of Operations. As of December 31, 2022 and 2021, total assets and liabilities of the Company's consolidated VIEs are as follows: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Total assets $ 1,523 $ 1,576 Total liabilities $ 248 $ 259 (b) Estimates and Assumptions The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the Company’s Consolidated Financial Statements and accompanying notes. Management’s judgments, assumptions, and estimates are based on historical experience, future expectations and other factors that are believed to be reasonable as of the date of the Consolidated Financial Statements. Actual results may ultimately differ from management’s original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material. Significant estimates made by management include, but are not limited to: (i) the allocation of the transaction price in an IMAX System arrangement to distinct performance obligations; (ii) the amount of variable consideration to be earned on sales of IMAX Systems based on projections of future box office performance; (iii) expected credit losses on accounts receivable, financing receivables, and variable consideration receivables; (iv) provisions for the write-down of excess and obsolete inventory; (v) the fair values of the reporting units used in assessing the recoverability of goodwill; (vi) the cash flow projections used in testing the recoverability of long-lived assets such as the theater system equipment supporting joint revenue sharing arrangements; (vii) the economic lives of the theater system equipment supporting joint revenue sharing arrangements; (viii) the useful lives of intangible assets; (ix) the ultimate revenue forecasts used to test the recoverability of film assets; (x) the discount rates used to determine the present value of financing receivables and lease liabilities, as well as to determine the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill; (xi) pension plan assumptions; (xii) estimates related to the fair value and projected vesting of share-based payment awards; (xiii) the valuation of deferred income tax assets; (xiv) reserves related to uncertain tax positions; and (xv) the allocation of the purchase price for the acquisition of SSIMWAVE Inc. and its wholly-owned subsidiary (together, “SSIMWAVE”). The COVID-19 pandemic and the measures to prevent its spread have impacted the Company’s business and the global economy, as described in Note 2. Although management is encouraged by the broad reopening of the IMAX network, the continued progress towards the resumption of normal theater operations, normal film release schedules, and recent box office results, there continues to be risk and uncertainty relating to the judgments, assumptions, and estimates used by management in preparing the Company's Consolidated Financial Statements. Commencing in March 2022, in response to numerous sanctions imposed by the United States, Canada and the European Union on companies transacting in Russia and Belarus resulting from ongoing conflict between Russia and Ukraine, the Company suspended its operations in Russia and Belarus. As of December 31, 2022 , the IMAX network includes 54 systems in Russia, eight systems in Ukraine, and one system in Belarus, and the Company's backlog includes 14 systems in Russia, one system in Ukraine, and five systems in Belarus with a total fixed contracted value of $ 22.9 million. In the first quarter of 2022, the Company recorded provisions for potential credit losses against substantially all of its receivables in Russia due to uncertainties associated with the ongoing conflict and resulting sanctions. These receivables relate to existing sale agreements as the Company is not party to any joint revenue sharing arrangements in these countries. In addition, beginning in the first quarter of 2022, exhibitors in Russia, Ukraine, and Belarus were placed on nonaccrual status for maintenance revenue and finance income. Most multiplexes in Ukraine have reopened since the conflict began and the Company remains optimistic that its full network in Ukraine will ultimately resume operations. The Company continues to closely monitor the evolving impacts of this conflict (including the sanctions imposed by the United States, Canada and the European Union) and its effects on the global economy and the Company. (See Note 6 for more information on the impact of the ongoing Russia-Ukraine conflict and resulting sanctions on the Company's receivables and current expected credit losses.) On September 7, 2022, Cineworld Group plc (“Cineworld”), the parent company of Regal, and certain of its subsidiaries and Regal CineMedia Holdings, LLC, filed petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Southern District of Texas. The Company had an unsecured pre-petition claim of $ 11.4 million related to receivables from the entities included in the reorganization proceedings. On October 21, 2022, the Company was ratified by the bankruptcy court as a critical vendor of Cineworld, allowing the Company to collect pre-petition amounts owed to it by Cineworld, and requiring Cineworld to stay current on the Company’s post-petition receivables. On November 8, 2022, IMAX Corporation entered into a trade agreement with Cineworld (the “Trade Agreement”), pursuant to which Cineworld affirmed the amount of the receivables owed to the Company and agreed to a payment plan under which all amounts due will be settled over the period from November 9, 2022 to April 12, 2023. As of February 20, 2023, the Company had received payments of $ 7.2 million from Cineworld in accordance with the terms of the Trade Agreement. Based on its evaluation of its contracts with Cineworld, its assessment of the reorganization and its discussions with Cineworld to date, the Company has determined that no additional provision for expected credit losses is required. The Company also does not expect to see a material impact on its IMAX network with Cineworld resulting from this reorganization. There can, however, be no guarantees as to the ultimate outcome of a Chapter 11 proceeding. (c) Cash and Cash Equivalents The Company considers all highly liquid investments convertible to a known amount of cash and with an original maturity of three months or less to be cash equivalents. (d) Receivables The Company develops an estimate of expected credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after considering management’s internal credit quality classifications, as well as macro-economic and industry risk factors. The write-off of any billed receivable balance requires the approval of management. (See Note 6 for more information related to the Company’s receivables and current expected credit losses.) (e) Inventories Inventories are carried at the lower of cost, determined on an average cost basis, and net realizable value except for raw materials, which are carried at the lower of cost and replacement cost. Finished goods and work-in-process includes the cost of raw materials, direct labor, theater design costs, and an applicable share of manufacturing overhead costs. The costs related to IMAX Systems under sale and sales-type lease arrangements are transferred from Inventories to Costs and Expenses Applicable to Revenues – Technology Sales in the period when the sale is recognized in the Consolidated Statements of Operations. The costs related to IMAX Systems under joint revenue sharing arrangements are transferred from Inventories to assets under construction in Property, Plant and Equipment when allocated to a signed joint revenue sharing arrangement. The Company records write-downs for excess and obsolete inventory based upon management’s judgments regarding future events and business conditions, including the anticipated installation dates for the current backlog of theater system contracts, contracts in negotiation, technological developments, growth prospects within the customers’ ultimate marketplace and anticipated market acceptance of the Company’s current and pending theater IMAX Systems. Finished goods inventories includes IMAX Systems for which title has passed to the Company’s customer in situations when the IMAX System has been delivered to the customer, but the criteria for revenue recognition were not met as of the balance sheet date. (f) Film Assets Film Assets consist of: (i) capitalized costs associated with the digital remastering of films where the copyright is owned by a third party, including labor and allocated overhead, and (ii) capitalized costs associated with the production of films, including labor, allocated overhead, and the cost of acquiring film rights. Production financing provided by third parties that acquire substantive rights in the film is recorded as a reduction of the cost of the film. Capitalized film costs are amortized and participation costs are accrued to Costs and Expenses Applicable to Revenues using the individual-film-forecast method, which amortizes such costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenues are prepared on a title-by-title basis and reviewed regularly by management and revised where necessary to reflect the most current information. Ultimate revenues reflect management’s estimates of future revenue over a period not to exceed ten years following the date of the film’s initial release. The recoverability of the Company’s film assets is dependent upon the commercial acceptance of the underlying films and the resulting level of box office results and, in certain situations, ancillary revenues. If management’s projections of future net cash flows resulting from the exploitation of a film indicate that the carrying value of the film asset is not recoverable, the film asset is written down to its fair value. Film exploitation costs, including advertising and marketing, are recorded in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services as incurred, except for those costs that are made after recognizing revenue, which are recorded when the related revenues are recognized. (g) Property, Plant and Equipment Property, Plant and Equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of the underlying assets as follows: Theater system components (1) — Over the equipment’s expected useful life ( 7 to 20 years) Camera equipment — Over a period between 5 to 10 years Buildings — Over a period between 20 to 25 years Office and product equipment — Over a period between 3 to 5 years Leasehold improvements — Over the shorter of the initial term of the underlying lease plus any reasonably assured renewal periods, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. The cost of IMAX System components and related equipment expected to be used in future joint revenue sharing arrangements, including related direct labor costs and an allocation of direct production costs, are recorded within assets under construction until the underlying IMAX System is installed and in working condition. These assets are depreciated to Costs and Expenses Applicable to Revenues on a straight-line basis over the lesser of the term of the joint revenue sharing arrangement and the equipment’s expected useful life. The estimated useful lives of the system components and related equipment used in joint revenue sharing arrangements are reviewed periodically to determine if any adjustments are required. Property, Plant and Equipment is grouped at the lowest level for which identifiable cash flows are largely independent and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, the asset (or asset group) is considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating such assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used. (h) Investment in Equity Securities Equity securities with readily determinable fair values are reported at fair value with changes in fair value recorded within Realized and Unrealized Investment Gains (Losses) in the Consolidated Statements of Operations. (i) Other Assets Other Assets principally includes lease incentives provided to certain exhibitor customers under joint revenue sharing arrangements classified as an operating lease, as well as sales commissions and other deferred selling expenses that directly relate to the acquisition of the revenue generating contract and are incremental to the Company’s other expenses. To a much lesser extent, Other Assets also includes various investments and foreign currency derivatives. Capitalized lease incentives are amortized on a straight-line basis over the term of the lease as a reduction to rental revenue. Sales commissions and other selling expenses paid prior to the recognition of the related revenue are deferred and recognized within Costs and Expenses Applicable to Revenues upon the client acceptance of the IMAX System or the abandonment of the sale arrangement. Foreign currency derivatives are accounted for at fair value using quoted prices in active markets. In periods when there are no outstanding borrowings under the Company’s revolving credit facility arrangements, any related debt issuance costs are recorded within Other Assets and amortized on a straight-line basis over the term of the facility. In periods when there are outstanding borrowings under the Company’s revolving credit facility arrangements, any related debt issuance costs are reclassified to reduce the principal amount of outstanding borrowings and amortized on a straight-line basis over the term of the facility. (See Note 15 for information related to the Company’s borrowings.) (j) Goodwill Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but is tested annually for impairment at the reporting unit level in the fourth quarter of the year and between annual tests if indicators of potential impairment exist. These indicators could include a decline in the Company’s stock price and market capitalization, a significant change in the outlook for the reporting unit's business, including projections of future box office results and IMAX System installations, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a reporting unit. For reporting units with goodwill, an impairment loss is recognized for the amount by which the reporting unit's carrying value, including goodwill, exceeds its fair value. The carrying value of each reporting unit is based on a systematic and rational allocation of certain assets and liabilities. The fair value of each reporting unit is assessed using a discounted cash flow model based on management’s current short-term forecast and estimated long-term projections, against which various sensitivity analyses are performed. The discount rates used in the cash flow model are derived based on the Company’s estimated weighted average cost of capital. These estimates and the likelihood of future changes in these estimates depend on a number of underlying variables and a range of possible outcomes. (k) Other Intangible Assets Other intangible assets with finite lives are generally amortized on a straight-line basis over estimated useful lives ranging from 4 to 20 years, except for intangible assets that have an identifiable pattern of consumption of the economic benefit of the asset. Such intangible assets are amortized over the consumption pattern. Research and development acquired in a business combination is measured at fair value using market-participant assumptions and is initially classified as an indefinite-lived intangible asset. The in-process intangible research and development (IPR&D) assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. If the acquired IPR&D project is abandoned, the related intangible would be written off or impaired. Once the IPR&D activities are completed, management would determine the useful lives and the methods of amortization of the related intangible assets. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages are charged to expense. These capitalized costs are amortized on a straight-line basis over the estimated useful life. Intangible Assets are grouped at the lowest level for which identifiable cash flows are largely independent and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, the asset (or asset group) is considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating intangible assets for impairment include a current expectation that it is more likely than not that the intangible asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the intangible asset, and a significant change in the extent or manner in which the intangible asset is being used. (l) Deferred Revenue In instances where the Company receives consideration prior to satisfying its performance obligations, the recognition of revenue is deferred. The majority of the Deferred Revenue balance relates to payments received by the Company for IMAX Systems where control of the system has not transferred to the customer. The Deferred Revenue balance related to an individual location increases as progress payments are made and is then derecognized when control of the system is transferred to the customer. To a lesser extent, the Deferred Revenue balance also relates to situations when an exhibitor customer pays the contractual maintenance fee prior to the recognition of revenue. (m) Statutory Surplus Reserve Pursuant to the corporate law of the People’s Republic of China (the “PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits, after offsetting accumulated losses from prior years, before dividends can be declared or paid to equity holders. The Company’s PRC subsidiaries are required to appropriate 10 % of statutory net profits to statutory surplus reserves, upon distribution of their after-tax profits. The Company’s PRC subsidiaries may discontinue the appropriation of statutory surplus reserves when the aggregate sum of the statutory surplus reserve is more than 50 % of their registered capital. The statutory surplus reserve is non-distributable other than during liquidation and may only be used to fund losses from prior years, to expand production operations, or to increase the capital of the subsidiaries. In addition, the subsidiaries may make further contribution to a discretionary surplus reserve using post-tax profits in accordance with resolutions of the Board of Directors. (n) Income Taxes Income taxes are accounted for under the liability method whereby deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the accounting and tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in the Company’s Consolidated Financial Statements in the period in which the change is enacted. Investment tax credits are recognized as a reduction of income tax expense. The Company assesses the realization of deferred income tax assets and based on all available evidence, concludes whether it is more likely than not that the net deferred income tax assets will be realized. A valuation allowance is provided for the amount of deferred income tax assets not considered to be realizable in the current period. In assessing the need for a valuation allowance, management considers, among other things, projections of future taxable income and ongoing prudent and feasible tax planning strategies. If management determines that sufficient negative evidence exists, then management will consider recording a valuation allowance against a portion or all of the deferred tax assets in that jurisdiction. If, after recording a valuation allowance, management’s projections of future taxable income and other positive evidence considered in evaluating the need for a valuation allowance prove, with the benefit of hindsight, to be inaccurate, it could prove more difficult to support the realization of these deferred tax assets. As a result, an additional valuation allowance could be required, which would have an adverse impact on the Company’s effective income tax rate and results. Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which a valuation allowance is recorded, the Company may reverse all or a portion of the valuation allowance in that jurisdiction. In such situations, the adjustment made to the deferred tax asset would have a favorable impact on the Company’s effective income tax rate and results in the period such determination was made. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more likely than not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more likely than not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date. Although management believes that the Company has adequately accounted for its uncertain tax positions, tax audits can result in subsequent assessments where the ultimate resolution may result in the Company owing additional taxes above what was originally recognized in its financial statements. Tax reserves for uncertain tax positions are adjusted by the Company to reflect its best estimate of the outcome of examinations and assessments and in light of changing facts and circumstances, such as the completion of a tax audit, expiration of a statute of limitations, the refinement of an estimate, and interest accruals associated with the uncertain tax positions until they are resolved. Some of these adjustments require significant judgment in estimating the timing and amount of the additional tax expense. (o) Revenue Recognition IMAX Systems The Company evaluates each of the performance obligations in an IMAX System arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate performance obligations. The Company’s “System Obligation” consists of the following: (i) an IMAX System, which includes the projector, sound system, screen system and, if applicable, a 3D glasses cleaning machine; (ii) services associated with the IMAX System, including theater design support, the supervision of installation services, and projectionist training; and (iii) a license to use the IMAX brand to market the theater. The System Obligation, as a group, is a distinct performance obligation. The Company is not responsible for the physical installation of the equipment in the customer’s facility; however, it supervises the installation by the customer. The customer has the right to use the IMAX brand from the date the Company and the customer enter into an arrangement. IMAX System arrangements also include a requirement for the Company to provide maintenance services and an extended warranty over the life of the arrangement in exchange for an annual maintenance fee, which is subject to a consumer price index increase on renewal each year. Consideration related to the provision of maintenance services is included in the allocation of the transaction price to the separate performance obligations in the arrangement at contract inception, as discussed in more detail below. The Company’s maintenance services are a stand ready obligation and, as a result, are recognized on a straight-line basis over the contract term. The transaction price in an IMAX System arrangement is allocated to each good or service that is identified as a separate performance obligation based on estimated standalone selling prices. This allocation is based on observable prices when the Company sells the goods or services separately. The Company has established standalone prices for the System Obligation and maintenance and extended warranty services, as well as for film license arrangements. The Company uses an adjusted market assessment approach for separate performance obligations that do not have standalone selling prices or third-party evidence of estimated standalone selling prices. The Company considers multiple factors including its historical pricing practices, product class, market competition and geography. IMAX System arrangements involve either the lease or the sale of an IMAX System. The transaction price for the System Obligation, other than for IMAX Systems delivered pursuant to joint revenue sharing arrangements, consist of upfront or initial payments made before and after the final installation of the system and ongoing payments throughout the term of the arrangement. The Company estimates the transaction price, including an estimate of future variable consideration, received in exchange for the goods delivered or services rendered. The arrangement for the sale of an IMAX System includes indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the exhibitor customer if certain minimum box office receipt thresholds are exceeded. In addition, hybrid sales arrangements include amounts owed by the exhibitor customer based on a percentage of their box office receipts over the term of the arrangement. These contract provisions are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal. This estimate is based on management’s box office projections for the individual location, which are developed using historical data for the location and, if necessary, comparable theaters and territories (see “Constraints on the Recognition of Variable Consideration” below). Transfer of control of the System Obligation occurs at the earlier of client acceptance of the installation of the IMAX System, including projectionist training, and the opening of the theater to the public, as discussed in more detail below. IMAX System arrangements are non-cancellable unless the Company fails to perform its obligations. In the absence of a material default by the Company, there is no right to any remedy for the customer under the Company’s arrangements. If a material default by the Company exists, the customer has the right to terminate the arrangement and seek a refund only if the customer provides notice to the Company of a material default and only if the Company does not cure the default within a specified period. Sales Arrangements For IMAX System arrangements that qualify as a sale, the transaction price allocated to the System Obligation is recognized in the Consolidated Statements of Operations upon the transfer of control of the system to the customer, which is when all of the following conditions have been met: (i) the projector, sound system, and screen system have been installed and are in full working condition, (ii) the 3D glasses cleaning machine, if applicable, has been delivered, (iii) projectionist training has been completed, and (iv) the earlier of (a) the receipt of written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the IMAX System. The initial revenue recognized i |
New Accounting Standards and Ac
New Accounting Standards and Accounting Changes | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards and Accounting Changes | 4. New Accounting Standards and Accounting Changes Adoption of New Accounting Policies In July 2021, the FASB issued ASU No. 2021-05, “Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments” (“ASU 2021-05”), which requires sales-type or direct financing leases that have variable payments (that do not depend on a rate or an index) and result in a day-one loss to be classified as operating leases. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The amendments are effective for annual periods beginning after December 15, 2021 including interim periods within those periods. Early adoption is permitted. The Company adopted ASU 2021-05 for the year ended December 31, 2022 and adoption did no t have a material impact on the Company's Consolidated Financial Statements. In October 2021, the FASB issued ASU No. 2021-08, “2021-08: Business Combinations (Topic 850): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08” ). ASU 2021-08 requires that an acquirer recognize and measure contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination in accordance with Topic 606, as opposed to at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those periods. Early adoption is permitted. The Company elected to early adopt ASU 2021-08 in the third quarter of 2022 in connection with its acquisition of SSIMWAVE Inc. (see Note 5). In November 2021, the FASB issued ASU No. 2021-10, “2021-10: Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). The amendments in ASU 2021-10 require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The amendments are effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company adopted ASU 2021-10 for the year ended December 31, 2022 and has provided the required disclosures in Note 25. Recently Issued FASB Accounting Standard Codification Updates Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The purpose of ASU 2020-04 is to provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply ASU 2020-04 prospectively through December 31, 2022. In October 2022, the FASB extended the temporary accounting relief to December 31, 2024 from the current sunset date of December 31, 2022. As of December 31, 2022, the Company is not party to any third party contracts that reference the London Interbank Offered Rate (LIBOR). Accordingly, the Company does not expect ASU 2020-04 to have a material effect on its Consolidated Financial Statements. In March 2022, the FASB issued ASU No. 2022-02, “2022-02: Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 amends and eliminates the accounting guidance for Troubled Debt Restructurings by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requires for public business entities, to disclose current-period gross write offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt ASU 2022-02 for the first quarter of 2023 and is in the process of evaluating the accounting and disclosure impact, if any, on the Company's Consolidated Financial Statements. The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. Accounting standard updates that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Consolidated Financial Statements for the year ended December 31, 2022. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | 5. Acquisition On September 22, 2022 , the Company acquired all of the issued and outstanding shares of SSIMWAVE pursuant to a share purchase agreement by and among the Company, SSIMWAVE, and related shareholders (the “Sellers”). SSIMWAVE provides perceptual quality measurement and optimization solutions based on artificial intelligence technologies for leading media and entertainment companies. Following the acquisition, SSIMWAVE became a wholly-owned subsidiary of the Company. As consideration for the acquisition of SSIMWAVE, the Company paid an aggregate purchase price of $ 23.2 million, comprised of: (i) $ 19.5 million in cash, (ii) 160,547 common shares of the Company with a fair value of $ 1.9 million (the “IMAX Share Consideration”), and (iii) contingent consideration with a fair value of $ 1.8 million (the “Earn-Out Payment”). The fair value of the IMAX Share Consideration, which is based on the share price on the date of the acquisition, is reduced to reflect the fair value of certain restrictions on the future transfer of the shares. The Earn-Out Payment may be paid to certain Sellers in an aggregate amount of up to $ 2.0 million in cash, contingent upon and following the achievement of certain commercial and financial milestones during the period from January 1, 2023 to December 31, 2024, or under certain terms March 31, 2025. The fair value of the Earn-Out Payment is based on management's assessment of the likelihood of achieving these milestones. The revenues and earnings of SSIMWAVE for the period post-acquisition through December 31, 2022 were included in All Other for segment reporting and were not material to the Company's Consolidated Financial Statements. During the year ended December 31, 2022 , the Company incurred $ 1.1 million of professional fees in connection with the acquisition of SSIMWAVE, which were recorded within Selling, General and Administrative Expenses on the Company's Consolidated Statements of Operations. The Company has accounted for the acquisition of SSIMWAVE as a business combination and has completed its valuation of the assets acquired and liabilities assumed. In the fourth quarter of 2022, the Company finalized the purchase price allocation and allocated $ 11.2 million from Goodwill to Other Intangible Assets based on its valuation procedures and recognized the $ 2.0 million of deferred tax liability related to this allocation. In addition, in the fourth quarter of 2022, the Company made an additional payment of $ 0.1 million to certain former SSIMWAVE shareholders resulting from customary post-acquisition date working capital adjustments. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as of December 31, 2022. (In thousands of U.S. Dollars) Purchase Price : Cash payments $ 19,521 IMAX Share Consideration 1,947 Earn-Out Payment 1,750 Total Purchase Price $ 23,218 Allocation of Purchase Price : Cash and cash equivalents $ 3,582 Accounts receivable 158 Property, plant and equipment 409 Intangible assets (see Note 14) 11,189 Other assets 293 Accounts payable and accrued liabilities ( 1,092 ) Deferred revenue ( 1,300 ) Federal economic development loan, net of unaccreted interest benefit ( 1,772 ) Deferred tax liability ( 2,037 ) Goodwill (see Note 14) 13,788 Total Purchase Price $ 23,218 The allocation of the fair value of identified intangible assets is as follows: (In thousands of U.S. Dollars) Fair Value Weighted Average Useful Life Patent and trademarks 100 2 Years Customer relationships 1,340 7 Years Developed technology 5,779 4 to 7 Years In-process research and development 3,810 Not yet in use Non-compete agreement 160 4 Years Total identifiable intangible assets $ 11,189 Goodwill is the excess of the consideration transferred over the net assets recognized and primarily represents future economic benefits arising from assets acquired that are not individually identified and separately recognized, including synergies and assembled workforce inherent in the acquired business. The goodwill recorded is not expected to be deductible for income tax purposes. The goodwill associated with SSIMWAVE is in a separate reporting unit for goodwill impairment assessment purposes. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables | 6. Receivables The ability of the Company to collect its receivables is principally dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators, or other customers, may experience financial difficulties that could result in them being unable to fulfill their payment obligations to the Company. In order to mitigate the credit risk associated with its receivables, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The Company’s internal credit quality classifications for theater operators are as follows: • Good Standing — The theater operator continues to be in good standing as payments and reporting are received on a regular basis. • Credit Watch — The theater operator has demonstrated a delay in payments, but continues to be in active communication with the Company. Theater operators placed on Credit Watch are subject to enhanced monitoring. In addition, depending on the size of the outstanding balance, length of time in arrears, and other factors, future transactions may need to be approved by management. These receivables are in better condition than those in the Pre-Approved Transactions Only category, but are not in as good condition as the receivables in the Good Standing category. • Pre-Approved Transactions Only — The theater operator has demonstrated a delay in payments with little or no communication with the Company. All services and shipments to the theater operator must be reviewed and approved by management. These receivables are in better condition than those in the All Transactions Suspended category, but are not in as good condition as the receivables in the Credit Watch category. In certain situations, a theater operator may be placed on nonaccrual status and all revenue recognition related to the theater may be suspended, including the accretion of Finance Income for Financing Receivables. • All Transactions Suspended — The theater operator is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater operator is classified within the All Transactions Suspended category, the theater is placed on nonaccrual status and all revenue recognitions related to the theater are suspended, including the accretion of Finance Income for Financing Receivables. During the period when the accretion of Finance Income is suspended for Financing Receivables, any payments received from a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a reversal of the provision is recorded to the extent of the residual cash received. Once the collectability issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of Finance Income. When a customer’s aging exceeds 90 days, the Company’s policy is to perform an enhanced review to assess collectability of the theater’s past due accounts. The over 90 days past due category may be an indicator of potential impairment as up to 90 days outstanding is considered to be a reasonable time to resolve any issues. The Company develops an estimate of expected credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after considering management’s internal credit quality classifications. Additional credit loss provisions are also recorded taking into account macro-economic and industry risk factors. The write-off of any billed receivable balance requires the approval of management. On September 7, 2022, Cineworld, the parent company of Regal, and certain of its subsidiaries and Regal CineMedia Holdings, LLC, filed petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Southern District of Texas. The Company had an unsecured pre-petition claim of $ 11.4 million related to receivables from the entities included in the reorganization proceedings. On October 21, 2022, the Company was ratified by the bankruptcy court as a critical vendor of Cineworld, allowing the Company to collect pre-petition amounts owed to it by Cineworld, and requiring Cineworld to stay current on the Company’s post-petition receivables. On November 8, 2022, IMAX Corporation entered into a trade agreement with Cineworld (the “Trade Agreement”), pursuant to which Cineworld affirmed the amount of the receivables owed to the Company and agreed to a payment plan under which all amounts due will be settled over the period from November 9, 2022 to April 12, 2023. As of February 20, 2023, the Company had received payments of $ 7.2 million from Cineworld in accordance with the terms of the Trade Agreement. Based on its evaluation of its contracts with Cineworld, its assessment of the reorganization and its discussions with Cineworld to date, the Company has determined that no additional provision for expected credit losses is required. The Company also does not expect to see a material impact on its IMAX network with Cineworld resulting from this reorganization. There can, however, be no guarantees as to the ultimate outcome of a Chapter 11 proceeding. Management's judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company's customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company's judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Note 2). The impacts of inflation, and rising interest rates may also impact future credit losses. The Company will continue to monitor economic trends and conditions and portfolio performance and adjust its allowance for credit loss accordingly. Accounts Receivable Accounts receivable principally includes amounts currently due to the Company under IMAX System sale and sales-type lease arrangements, contingent fees owed by theater operators as a result of box office performance, and fees for maintenance services. Accounts receivable also includes amounts due to the Company from movie studios and other content creators principally for digitally remastering films into IMAX formats, as well as for film distribution and post-production services. The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 (In thousands of U.S. Dollars) Theater Studios Other Total Beginning balance $ 8,867 $ 1,994 $ 1,085 $ 11,946 Current period provision (reversal), net 2,687 ( 128 ) 585 3,144 Write-offs ( 43 ) ( 128 ) ( 394 ) ( 565 ) Foreign exchange ( 367 ) ( 39 ) — ( 406 ) Ending balance $ 11,144 $ 1,699 $ 1,276 $ 14,119 Year Ended December 31, 2021 (In thousands of U.S. Dollars) Theater Studios Other Total Beginning balance $ 8,368 $ 4,481 $ 1,446 $ 14,295 Current period provision (reversal), net 793 ( 1,913 ) ( 332 ) ( 1,452 ) Write-offs ( 357 ) ( 551 ) ( 19 ) ( 927 ) Foreign exchange 63 ( 23 ) ( 10 ) 30 Ending balance $ 8,867 $ 1,994 $ 1,085 $ 11,946 For the year ended December 31, 2022, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $ 2.2 million , principally due to reserves established against its receivables in Russia due to uncertainties associated with the ongoing Russia-Ukraine conflict and resulting sanctions, partially offset by the reversal of provisions associated with the COVID-19 pandemic as the outlook for the theatrical exhibition industry in Domestic and Rest of World markets continues to improve. There remains a $ 1.5 million COVID-19 additional reserve for China. For the year ended December 31, 2021, the Company’s allowance for current expected credit losses related to Accounts Receivable decreased by $ 2.3 million . This decrease is principally due to improved collection experience with respect to foreign studio receivable balances, partially offset by new provisions recorded in the period. Financing Receivables Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Systems . As of December 31, 2022 and 2021, financing receivables consist of the following: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Net investment in leases Gross minimum payments due under sales-type leases $ 29,727 $ 29,953 Unearned finance income ( 619 ) ( 763 ) Present value of minimum payments due under sales-type leases 29,108 29,190 Allowance for credit losses ( 776 ) ( 798 ) Net investment in leases 28,332 28,392 Financed sales receivables Gross minimum payments due under financed sales 141,337 152,315 Unearned finance income ( 29,340 ) ( 34,244 ) Present value of minimum payments due under financed sales 111,997 118,071 Allowance for credit losses ( 10,945 ) ( 5,414 ) Net financed sales receivables 101,052 112,657 Total financing receivables $ 129,384 $ 141,049 Net financed sales receivables due within one year $ 32,366 $ 29,115 Net financed sales receivables due after one year 68,686 83,542 Total financed sales receivables $ 101,052 $ 112,657 As of December 31, 2022 and 2021, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sale receivables, as applicable, are as follows: December 31, December 31, 2022 2021 Weighted-average remaining lease term (in years) Sales-type lease arrangements 9.0 9.6 Weighted-average interest rate Sales-type lease arrangements 8.23 % 6.56 % Financed sales receivables 8.79 % 8.79 % The tables below provide information on the Company’s net investment in leases by credit quality indicator as of December 31, 2022 and 2021. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts. (In thousands of U.S. Dollars) By Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Total Net investment in leases: Credit quality classification: In good standing $ 4,148 $ 6,969 $ 2,494 $ 1,977 $ — $ 1,016 $ 16,604 Credit Watch — — — — — — — Pre-approved transactions — 3,089 1,162 5,401 2,451 — 12,103 Transactions suspended — — — — — 401 401 Total net investment in leases $ 4,148 $ 10,058 $ 3,656 $ 7,378 $ 2,451 $ 1,417 $ 29,108 (In thousands of U.S. Dollars) By Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Total Net investment in leases: Credit quality classification: In good standing $ 11,030 $ 3,991 $ 7,973 $ 2,574 $ 823 $ 1,928 $ 28,319 Credit Watch — — — — — — — Pre-approved transactions — — — — — — — Transactions suspended — — — — — 871 871 Total net investment in leases $ 11,030 $ 3,991 $ 7,973 $ 2,574 $ 823 $ 2,799 $ 29,190 The tables below provide information on the Company’s financed sale receivables by credit quality indicator as of December 31, 2022 and 2021. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts. (In thousands of U.S. Dollars) By Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 10,252 $ 8,643 $ 6,280 $ 8,541 $ 9,854 $ 39,912 $ 83,482 Credit Watch — — — — — 1,152 1,152 Pre-approved transactions — 2,318 1,399 1,134 1,449 9,243 15,543 Transactions suspended 272 664 142 1,269 1,197 8,276 11,820 Total financed sales receivables $ 10,524 $ 11,625 $ 7,821 $ 10,944 $ 12,500 $ 58,583 $ 111,997 (In thousands of U.S. Dollars) By Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 12,520 $ 8,251 $ 10,593 $ 13,278 $ 12,615 $ 47,950 $ 105,207 Credit Watch — — — — 321 1,292 1,613 Pre-approved transactions — — 743 418 2,098 3,650 6,909 Transactions suspended — — 335 — 680 3,327 4,342 Total financed sales receivables $ 12,520 $ 8,251 $ 11,671 $ 13,696 $ 15,714 $ 56,219 $ 118,071 The balance of financed sale receivables classified within the Transactions Suspended category as of December 31, 2022 includes amounts due from exhibitors in Russia, Ukraine, and Belarus which were reclassified from other credit quality classifications in the first quarter of 2022 as a result of the ongoing Russia-Ukraine conflict and resulting sanctions. The following tables provide an aging analysis for the Company’s net investment in leases and financed sale receivables as of December 31, 2022 and 2021: As of December 31, 2022 (In thousands of U.S. Dollars) Accrued 30-89 90+ Billed Unbilled Recorded Allowance Net Net investment in leases $ 237 $ 216 $ 2,593 $ 3,046 $ 26,062 $ 29,108 $ ( 776 ) $ 28,332 Financed sales receivables 2,269 1,307 12,793 16,369 95,628 111,997 ( 10,945 ) 101,052 Total $ 2,506 $ 1,523 $ 15,386 $ 19,415 $ 121,690 $ 141,105 $ ( 11,721 ) $ 129,384 As of December 31, 2021 (In thousands of U.S. Dollars) Accrued 30-89 90+ Billed Unbilled Recorded Allowance Net Net investment in leases $ 225 $ 156 $ 1,267 $ 1,648 $ 27,542 $ 29,190 $ ( 798 ) $ 28,392 Financed sales receivables 1,750 989 8,378 11,117 106,954 118,071 ( 5,414 ) 112,657 Total $ 1,975 $ 1,145 $ 9,645 $ 12,765 $ 134,496 $ 147,261 $ ( 6,212 ) $ 141,049 The following tables provide information about the Company’s net investment in leases and financed sale receivables with billed amounts past due for which it continues to accrue finance income as of December 31, 2022 and 2021. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts. As of December 31, 2022 (In thousands of U.S. Dollars) Accrued 30-89 Days 90+ Days Billed Unbilled Allowance Net Net investment in leases $ 190 $ 181 $ 2,593 $ 2,964 $ 17,070 $ ( 230 ) $ 19,804 Financed sales receivables 1,550 1,115 10,814 13,479 43,172 ( 1,587 ) 55,064 Total $ 1,740 $ 1,296 $ 13,407 $ 16,443 $ 60,242 $ ( 1,817 ) $ 74,868 As of December 31, 2021 (In thousands of U.S. Dollars) Accrued 30-89 Days 90+ Days Billed Unbilled Allowance Net Net investment in leases $ 143 $ 132 $ 825 $ 1,100 $ 12,619 $ ( 176 ) $ 13,543 Financed sales receivables 959 729 6,190 7,878 41,439 ( 1,413 ) 47,904 Total $ 1,102 $ 861 $ 7,015 $ 8,978 $ 54,058 $ ( 1,589 ) $ 61,447 The following table provides information about the Company’s net investment in leases and financed sale receivables that are on nonaccrual status as of December 31, 2022 and 2021: As of December 31, 2022 As of December 31, 2021 (In thousands of U.S. Dollars) Recorded Allowance Net Recorded Allowance Net Net investment in leases $ 401 $ ( 401 ) $ — $ 871 $ ( 309 ) $ 562 Net financed sales receivables 27,364 ( 9,589 ) 17,775 8,642 ( 2,357 ) 6,285 Total $ 27,765 $ ( 9,990 ) $ 17,775 $ 9,513 $ ( 2,666 ) $ 6,847 The balances of net investment in leases and financed sale receivables that are on nonaccrual status as of December 31, 2022 include amounts due from exhibitors in Russia, Ukraine, and Belarus which were placed on nonaccrual status in the first quarter of 2022 as a result of the ongoing Russia-Ukraine conflict and resulting sanctions. For the year ended December 31, 2022, the Company recognized $ 0.1 million (2021 — $ 0.1 million ) in Finance Income related to the net investment in leases with billed amounts past due. For the years ended December 31, 2022 and 2021 , the Company did no t recognize any Finance Income related to the net investment in leases in nonaccrual status. For the year ended December 31, 2022, the Company recognized $ 3.6 million (2021 — $ 3.7 million ) in Finance Income related to the financed sale receivables with billed amounts past due. For the year ended December 31, 2022, the Company recognized $ 0.5 million (2021 – $ 0.2 million ) in Finance Income related to the financed sales receivables in nonaccrual status. The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for years ended December 31, 2022 and 2021: Year Ended December 31, 2022 Net Investment Financed (In thousands of U.S. Dollars) in Leases Sales Receivables Beginning balance $ 798 $ 5,414 Current period provision, net 5 5,783 Foreign exchange ( 27 ) ( 252 ) Ending balance $ 776 $ 10,945 Year Ended December 31, 2021 Net Investment Net Financed (In thousands of U.S. Dollars) in Leases Sales Receivables Beginning balance $ 557 $ 7,274 Current period provision (reversal), net 235 ( 1,947 ) Foreign exchange 6 87 Ending balance $ 798 $ 5,414 For the year ended December 31, 2022, the Company’s allowance for current expected credit losses related to its net investment in leases and financed sale receivables increased by $ 5.5 million . This increase is principally due to reserves established against its receivables in Russia due to uncertainties associated with the ongoing Russia-Ukraine conflict and resulting sanctions, partially offset by the reversal of provisions associated with the COVID-19 pandemic as the outlook for the theatrical exhibition industry in Domestic and Rest of World markets continues to improve. For the year ended December 31, 2021, the Company’s allowance for current expected credit losses related to its net investment in leases and financed sale receivables decreased by $ 1.6 million . This decrease is principally due to the reversal of previously recorded credit loss expense as a result of an improving outlook for theater operators following the reopening of theaters and the resumption of normal film release schedules as the theatrical exhibition industry continues to recover from the COVID-19 pandemic, partially offset by new provisions recorded in the period. Variable Consideration Receivables In sale arrangements, variable consideration may become due to the Company from theater operators if certain annual minimum box office receipt thresholds are exceeded. Such variable consideration is recorded as revenue in the period when the sale is recognized and adjusted in future periods based on actual results and changes in estimates. Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal. The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the years ended December 31, 2022 and 2021: Year Ended December 31, (In thousands of U.S. Dollars) 2022 2021 Beginning balance $ 1,082 $ 1,887 Current period reversal, net ( 440 ) ( 787 ) Foreign Exchange ( 32 ) ( 18 ) Ending balance $ 610 $ 1,082 For the year ended December 31, 2022, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables decreased by $ 0.5 million . This decrease is principally due to the reversal of provisions associated with the COVID-19 pandemic as the outlook for the theatrical exhibition industry in Domestic and Rest of World markets continues to improve. For the year ended December 31, 2021, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables decreased by $ 0.8 million . This decrease is principally due to the reversal of previously recorded credit loss expense as a result of an improving outlook for theater operators following the reopening of theaters and the resumption of normal film release schedules as the theatrical exhibition industry begins to recover from the COVID-19 pandemic, partially offset by new provisions recorded in the period. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Arrangements | 7. Lease Arrangements (a) IMAX Corporation as a Lessee The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs, and its level of investment in leasehold improvements, among other factors. The incremental borrowing rate used in the calculation of the Company’s lease liabilities is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The depreciable lives of right-of-use assets and related leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. In 2022, the Company entered into a finance lease arrangement involving equipment used to facilitate the delivery of live events to certain IMAX locations. The lease arrangement includes an option for the Company to purchase the equipment at the end of the lease term that is reasonably certain to be exercised. The resulting right-of-use assets are being depreciated from the lease commencement dates over the useful life of the underlying equipment. The incremental borrowing rate used in the calculation of the lease liabilities is based on the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term. For the years ended December 31, 2022, 2021, and 2020 the components of lease expense recorded within Selling, General and Administrative Expenses are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Operating lease cost: Amortization of operating lease assets 2,734 2,791 3,114 Interest on operating lease liabilities 825 937 1,052 Short-term and variable lease costs 616 713 540 Finance lease cost: Amortization of finance lease assets 171 N/A N/A Interest on finance lease liabilities 22 N/A N/A Total lease cost $ 4,368 $ 4,441 $ 4,706 For the years ended December 31, 2022, 2021, and 2020, supplemental cash and non-cash information related to leases is as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 3,783 $ 3,839 $ 3,743 Finance leases $ 948 N/A N/A Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for operating lease obligations $ 3,068 $ 1,047 $ 563 Right-of-use assets obtained in exchange for finance lease obligations $ 1,990 N/A N/A As of December 31, 2022 and 2021, supplemental balance sheet information related to leases is as follows: December 31, (In thousands of U.S. Dollars) 2022 2021 Assets Balance Sheet Location Operating lease right-of-use assets Property, plant and equipment $ 12,341 $ 12,132 Finance lease right-of-use assets Property, plant and equipment $ 1,876 N/A Liabilities Balance Sheet Location Operating lease liabilities Accrued and other liabilities $ 14,641 $ 14,691 Finance lease liabilities (1) Accrued and other liabilities $ 1,011 N/A (1) Recorded net of a $ 0.9 million upfront payment made upon execution of the finance lease arrangement. As of December 31, 2022 and 2021, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s leases are as follows: December 31, 2022 2021 Operating leases: Weighted-average remaining lease term (years) 6.0 7.0 Weighted-average discount rate 5.90 % 5.97 % Finance leases: Weighted-average remaining lease term (years) 4.7 N/A Weighted-average discount rate 6.00 % N/A As of December 31, 2022, the maturities of the Company’s operating and finance lease liabilities are as follows: (In thousands of U.S. Dollars) Operating Leases Finance Leases 2023 $ 3,639 $ 508 2024 3,017 508 2025 2,429 — 2026 2,069 — 2027 2,094 — Thereafter 4,171 — Total lease payments $ 17,419 $ 1,016 Less: interest expense ( 2,778 ) ( 5 ) Present value of lease liabilities $ 14,641 $ 1,011 (b) IMAX Corporation as a Lessor The Company provides IMAX Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s sales-type lease arrangements are described in Note 3 (o). Under the Company’s sales-type lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s lease portfolio terms are typically non-cancellable for 10 to 20 years with renewal provisions from inception. The Company’s sales-type lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company. The Company also provides IMAX Systems to customers through joint revenue sharing arrangements. Under the traditional form of these arrangements, in exchange for providing the IMAX System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than requiring the customer to pay a fixed upfront fee or annual minimum payments. Under certain other joint revenue sharing arrangements, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX System. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s joint revenue sharing arrangements are typically non-cancellable for 10 years or longer with renewal provisions. Title to the IMAX System under a joint revenue sharing arrangement generally does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and an extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company. The following lease payments are expected to be received by the Company for its sales-type leases and joint revenue sharing arrangements in each of the next five years and thereafter following the December 31, 2022 balance sheet date: (In thousands of U.S. Dollars) Sales-Type Joint Revenue 2023 $ 3,245 $ 172 2024 3,158 69 2025 3,038 27 2026 2,823 — 2027 2,760 — Thereafter 14,702 — Total $ 29,726 $ 268 (See Note 7 for additional information related to the net investment in leases related to the Company’s sales-type lease arrangements.) |
Variable Consideration from Con
Variable Consideration from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Change in Contract with Customer, Asset [Abstract] | |
Variable Consideration from Contracts with Customers | 8. Variable Consideration from Contracts with Customers The arrangement for the sale of an IMAX System includes indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded. In addition, hybrid sales arrangements include amounts owed by the customer based on a percentage of their box office receipts over the term of the arrangement. These contract provisions are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal. This estimate is based on management’s box office projections for the individual IMAX System, which are developed using historical data for the location and, if necessary, comparable theaters and territories. (See Note 3(o) for a more detailed discussion of the Company’s accounting policy related to variable consideration.) The following table summarizes the activity related to variable consideration from contracts with customers for the years ended December 31, 2022, 2021, and 2020: (In thousands of U.S. Dollars) Balance as of January 1, 2020 $ 40,040 Variable consideration for newly recognized sales 5,550 Accretion to finance income 2,133 Transferred to receivables from variable consideration assets ( 5,310 ) Movement in allowance for credit losses ( 1,887 ) Balance as of December 31, 2020 40,526 Variable consideration for newly recognized sales 4,696 Accretion to finance income 1,985 Transferred to receivables from variable consideration assets ( 3,794 ) Movement in allowance for credit losses (see Note 6) 805 Balance as of December 31, 2021 44,218 Variable consideration for newly recognized sales 7,109 Accretion to finance income 1,846 Transferred to receivables from variable consideration assets ( 9,621 ) Movement in allowance for credit losses (see Note 6) 472 Balance as of December 31, 2022 $ 44,024 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 9. Inventories As of December 31, (In thousands of U.S. Dollars) 2022 2021 Raw materials $ 25,365 $ 20,551 Work-in-process 2,034 1,406 Finished goods 4,135 4,967 $ 31,534 $ 26,924 As of December 31, 2022, Inventories include finished goods of $ 3.5 million (December 31, 2021 — $ 2.6 million ) for which title had passed to the customer, but the criteria for revenue recognition were not met as of the balance sheet date. The following table summarizes the activity for the Company’s inventory valuation allowance account for the years ended December 31, 2022, 2021 and 2020: Balance at Additions (1) Other deductions (2) Balance at (In thousands of U.S. Dollars) Year ended December 31, 2022 $ 4,897 $ 919 $ ( 77 ) $ 5,739 Year ended December 31, 2021 $ 5,752 $ 629 $ ( 1,484 ) $ 4,897 Year ended December 31, 2020 $ 3,216 $ 3,028 $ ( 492 ) $ 5,752 (1) Excludes a recovery of $ 0.2 million charged directly to the Consolidated Statements of Operations during the year ended December 31, 2022 (2021 and 2020 — expenses of $ 0.3 million , and $ 0.6 million , respectively). (2) Includes the write-off of amounts previously charged to valuation allowance. |
Film Assets
Film Assets | 12 Months Ended |
Dec. 31, 2022 | |
Film, Capitalized Cost [Abstract] | |
Film Assets | 10. Film Assets As of December 31, (In thousands of U.S. Dollars) 2022 2021 Completed and released films, net of accumulated amortization of $ 1,227 $ 2,292 $ 235,029 (2021 ― $ 218,148 ) Films in production 1,667 195 Films in development 2,383 1,754 $ 5,277 $ 4,241 The Company expects to amortize $ 5.2 million of the Film Assets balance within three years from December 31, 2022, including $ 4.9 million expected to be amortized in 2023, $ 0.2 million in 2024, and $ 0.1 million in 2025. In certain film arrangements, the Company co-produces a film with a third party with the third party retaining certain rights to the film. The amount of participation payments owed to third parties related to co-produced films as of December 31, 2022 is $ 3.8 million (December 31, 2021 — $ 3.3 million ) and is recorded on the Consolidated Balance Sheets within Accrued and Other Liabilities. In 2022, the Company recorded impairment losses of $ 0.8 million related to the write-down of DMR and documentary film assets (2021 — $ 0.2 million ). In 2020, the Company recorded impairment losses of $ 10.8 million principally to write-down the carrying value of certain documentary, alternative content film assets and DMR related film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 11. Property, Plant and Equipment As of December 31, 2022 Accumulated Net Book (In thousands of U.S. Dollars) Cost Depreciation Value Equipment leased or held for use: System components (1)(2)(3) $ 345,960 $ 194,444 $ 151,516 Camera equipment 8,597 3,859 4,738 354,557 198,303 156,254 Assets under construction (4) 14,379 — 14,379 Right-of-use assets (5) 14,615 398 14,217 Other property, plant and equipment: Land 8,203 — 8,203 Buildings 81,053 31,519 49,534 Office and production equipment (6) 38,485 31,360 7,125 Leasehold improvements 7,959 4,775 3,184 135,700 67,654 68,046 $ 519,251 $ 266,355 $ 252,896 As of December 31, 2021 Accumulated Net Book (In thousands of U.S. Dollars) Cost Depreciation Value Equipment leased or held for use: System components (1)(2)(3) $ 346,517 $ 181,936 $ 164,581 Camera equipment 4,855 3,214 1,641 351,372 185,150 166,222 Assets under construction (4) 10,232 — 10,232 Right-of-use assets (5) 14,429 2,297 12,132 Other property, plant and equipment: Land 8,203 — 8,203 Buildings 80,973 28,873 52,100 Office and production equipment (6) 39,017 31,169 7,848 Leasehold improvements 8,110 4,494 3,616 136,303 64,536 71,767 $ 512,336 $ 251,983 $ 260,353 (1) Included in system components are assets with costs of $ 7.6 million (2021 — $ 7.6 million ) and accumulated depreciation of $ 7.2 million (2021 — $ 7.0 million ) that are leased to customers under operating leases. (2) Included in system components are assets with costs of $ 323.7 million (2021 — $ 324.3 million ) and accumulated depreciation of $ 177.9 million (2021 — $ 166.5 million ) that are used in joint revenue sharing arrangements. (3) In 2022, the Company recorded charges of $ 1.0 million (2021 — $ 0.4 million ; 2020 — $ 1.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems, as well as an IMAX System that was removed from its existing location. (4) Included in assets under construction are components with costs of $ 9.1 million (2021 — $ 9.2 million ) that will be utilized to construct assets to be used in joint revenue sharing arrangements. (5) The right-of-use assets primarily include operating leases for office and warehouse space. (6) Fully depreciated office and production equipment is still in use by the Company. In 2022, the Company identified and wrote off $ 3.5 million (2021 — $ 0.5 million ) of office and production equipment that is fully depreciated and no longer in use. In 2022, the Company recorded a charge of $ 0.1 million (2021 — $ 0.2 million ; 2020 — $ 0.2 million ) reflecting Property, Plant and Equipment that was no longer in use. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Other Assets | 12. Other Assets As of December 31, (In thousands of U.S. Dollars) 2022 2021 Lease incentives provided to exhibitor customers, net of accumulated amortization $ 12,975 $ 14,834 Commissions and other deferred selling expenses 1,336 1,418 Other investments 1,000 1,000 Foreign currency derivatives 50 184 Other 304 363 $ 15,665 $ 17,799 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes (a) (Loss) Income Before Taxes by Jurisdiction (Loss) income before taxes by tax jurisdiction for the years ended December 31, 2022, 2021, and 2020 consists of the following: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Canada $ ( 55,623 ) $ ( 55,480 ) $ ( 104,166 ) United States 4,281 3,218 ( 6,437 ) China 11,466 53,792 ( 8,253 ) Ireland 24,070 829 ( 7,473 ) Other 6,037 8,628 ( 2,795 ) $ ( 9,769 ) $ 10,987 $ ( 129,124 ) (b) Income Tax (Expense) Benefit Income tax (expense) benefit for the years ended December 31, 2022, 2021, and 2020 consists of the following: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Income tax (expense) benefit – current: Canada $ ( 1,149 ) $ ( 915 ) $ 555 United States ( 274 ) ( 1,038 ) 488 China ( 4,437 ) ( 11,045 ) ( 1,980 ) Ireland ( 2,802 ) ( 1,358 ) ( 1,462 ) Other ( 3,519 ) ( 3,212 ) ( 487 ) Sub-total ( 12,181 ) ( 17,568 ) ( 2,886 ) Income tax (expense) benefit – deferred: Canada (1) 943 ( 231 ) ( 10,801 ) United States ( 131 ) ( 1,268 ) 867 China (2) 2,763 ( 381 ) ( 15,756 ) Ireland ( 1,562 ) ( 997 ) 2,161 Other 60 ( 119 ) ( 89 ) Sub-total 2,073 ( 2,996 ) ( 23,618 ) Total (3) $ ( 10,108 ) $ ( 20,564 ) $ ( 26,504 ) (1) A valuation allowance is recorded in jurisdictions where management has determined, based on the weight of all available evidence, both positive and negative, that a valuation allowance for deferred tax assets is required. For the year ended December 31, 2022, the Company recorded a $ 16.9 million valuation allowance against its deferred tax assets in Canada and China primarily as a result of uncertainties related to the long-term impact of the COVID-19 pandemic (2021 — $ 17.2 million ). The $ 16.9 million increase in the valuation allowance recorded in 2022 is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations. (2) T he Company's deferred tax liability of $ 17.6 million as of December 31, 2021 was for the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinvested, which will become payable upon the repatriation of any such earnings. During the year ended December 31, 2022, $ 27.4 million of historical earnings from a subsidiary in China were distributed and, as a result, $ 2.7 million of foreign withholding taxes were paid to the relevant tax authorities. The remaining deferred tax liability on the Company’s Consolidated Balance Sheets as of December 31, 2022 is $ 14.9 million . (3) For the year ended December 31, 2022 , Income Tax (Expense) Benefit excludes a tax expense of $ 0.8 million included in Other Comprehensive (Loss) Income ( 2021 — benefit of $ 0.3 million; 2020 — benefit of $ 0.1 million ). (c) Reconciliation of Income Tax Expense to Statutory Rates For the years ended December 31, 2022, 2021, and 2020, the Company’s effective tax rate and income tax expense differs from the combined Canadian federal and provincial statutory income tax rates due to the following factors: Years Ended December 31, 2022 2021 2020 (In thousands of U.S. Dollars, except rates) Amount Rate Amount Rate Amount Rate Income tax benefit (expense) at combined statutory rates $ 2,596 26.5 % $ ( 2,912 ) 26.5 % $ 34,218 26.5 % Adjustments resulting from: Non-controlling interests share of partnership losses — 0.0 % ( 1 ) 0.0 % ( 1,229 ) ( 1.0 %) Increase in valuation allowance ( 16,848 ) ( 172.5 %) ( 14,722 ) 134.0 % ( 28,589 ) ( 22.1 %) Changes to tax reserves 1,643 16.8 % 3,508 ( 31.9 %) ( 2,699 ) ( 2.1 %) U.S. federal and state taxes ( 86 ) ( 0.9 %) ( 80 ) 0.7 % ( 250 ) ( 0.2 %) Withholding taxes ( 3,825 ) ( 39.2 %) ( 4,199 ) 38.2 % ( 20,943 ) ( 16.2 %) Income tax at different rates in foreign and other provincial jurisdictions 3,872 39.6 % 3,352 ( 30.5 %) ( 2,607 ) ( 2.0 %) Investment and other tax credits (non-refundable) 752 7.7 % 413 ( 3.8 %) 643 0.5 % Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments 2,278 23.3 % ( 5,336 ) 48.6 % ( 1,219 ) ( 0.9 %) Other non-deductible/non-taxable items ( 490 ) ( 4.9 %) ( 587 ) 5.4 % ( 3,829 ) ( 3.0 %) Income tax expense $ ( 10,108 ) ( 103.6 %) $ ( 20,564 ) 187.2 % $ ( 26,504 ) ( 20.5 %) (d) Deferred Tax Assets and Deferred Tax Liability As of December 31, 2022 and 2021, the Company’s deferred tax assets and deferred tax liability consists of the following: As of December 31, (In thousands of U.S. Dollars) 2022 2021 Net operating loss carryforwards $ 29,158 $ 21,219 Investment tax credit and other tax credit carryforwards 5,213 3,919 Write-downs of other assets 2,341 1,223 Excess of tax accounting basis in various assets 14,549 13,929 Accrued pension liability 5,375 6,901 Accrued share-based compensation 8,920 7,728 Income recognition on net investment in leases ( 3,344 ) ( 3,368 ) Other accrued reserves 10,552 8,369 Total deferred income tax assets 72,764 59,920 Valuation allowance ( 62,864 ) ( 46,014 ) Deferred income tax asset net of valuation allowance 9,900 13,906 Deferred tax liability ( 14,900 ) ( 17,642 ) Net deferred tax liability $ ( 5,000 ) $ ( 3,736 ) As of December 31, 2022, net deferred tax assets include a liability of $ 1.1 million (December 31, 2021 — liability of $ 0.3 million ) associated with amounts recognized within Accumulated Other Comprehensive (Loss) Income, including unrealized actuarial gains and losses related to the Company’s pension and other postretirement benefit plans and unrealized net gains and losses on cash flow hedging instruments. (e) Net Operating Loss Carryforwards Estimated Canadian net operating loss carryforwards of $ 129.4 million can be used to reduce taxable income through 2042 , China net operating losses of $ 5.1 million can be used to reduce taxable income through 2027 , and $ 8.9 million of Ireland net operating losses can be carried forward indefinitely. Investment tax credits and other tax credits of $ 5.5 million can be carried forward to reduce income taxes payable through to 2042 . (f) Indefinitely Reinvested Assertion Income taxes are accrued for the earnings of non-Canadian affiliates and associated companies unless management determines that such earnings will be indefinitely reinvested outside of Canada. In 2020, management completed a reassessment of its strategy with respect to the most efficient means of deploying the Company’s capital resources globally. Based on the results of this reassessment, management concluded that the historical earnings of certain foreign subsidiaries in excess of amounts required to sustain business operations would no longer be indefinitely reinvested. The Company's deferred tax liability of $ 17.6 million as of December 31, 2021 related to the estimated applicable foreign withholding taxes associated with these historical earnings. During the year ended December 31, 2022 , $ 27.4 million of historical earnings from a subsidiary in China were distributed and, as a result, $ 2.7 million of foreign withholding taxes were paid to the relevant tax authorities ( 2021 — $ 2.0 million). The remaining deferred tax liability on the Company’s Consolidated Balance Sheets as of December 31, 2022 is $ 14.9 million . (g) Valuation Allowance As of December 31, 2022, the Company’s Consolidated Balance Sheets include net deferred income tax assets of $ 9.9 million , net of a valuation allowance of $ 62.9 million (December 31, 2021 — $ 13.9 million , net of a valuation allowance of $ 46.0 million ). For the years ended December 31, 2022 and 2021, the Company recorded a valuation allowance of $ 16.9 million and $ 17.2 million , respectively, where management cannot determine that the tax benefits will be realizable based on available evidence. The $ 16.9 million increase in the valuation allowance recorded in 2022 is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations. The $ 17.2 million increase in the valuation allowance recorded in 2021 is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations ($ 14.7 million) and Shareholder's Equity on the Company's Consolidated Balance Sheets ($ 2.5 million). The valuation allowance is expected to reverse at the point in time when management determines it is more likely than not that the Company will incur sufficient tax liabilities to allow it to utilize the deferred tax assets against which the valuation allowance is recorded. (h) Uncertain Tax Positions As of December 31, 2022 and December 31, 2021, the Company had total tax reserves (including interest and penalties) of $ 12.3 million and $ 13.9 million , respectively, for various uncertain tax positions. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could differ from the Company's accrued liability. Accordingly, additional provisions on federal, provincial, state and foreign tax-related matters may be required in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. For the year ended December 31, 2022, the Company recorded a net decrease of $ 2.2 million related to reserves (excluding interest and penalties) for income taxes (2021 — $ 2.1 million , 2020 — $ 0.6 million ). The Company has elected to classify interest and penalties related to income tax liabilities, when applicable, as part of the Income Tax Expense in its Consolidated Statements of Operations rather than Interest Expense. The Company expensed $ 0.6 million in potential interest and penalties associated with its provision for uncertain tax positions for the years ended December 31, 2022 (2021 — expensed $ 1.4 million ; 2020 — expensed $ 3.3 million ). The following table presents a reconciliation of the beginning and ending amount of tax reserves (excluding interest and penalties) for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Balance at beginning of the year $ 11,939 $ 14,076 $ 14,718 Additions based on tax positions related to the current year 11 37 2,301 Reductions for tax positions of prior years ( 94 ) ( 991 ) — Reductions resulting from lapse of applicable statute of limitations and ( 2,123 ) ( 1,183 ) ( 2,943 ) Balance at the end of the year $ 9,733 $ 11,939 $ 14,076 The number of years with open tax audits varies depending on the tax jurisdiction. The Company's material taxing jurisdictions include Canada, the United States, Ireland, and China. In 2021, the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $ 8.9 million in income taxes and $ 1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $ 8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $ 1.6 million in associated interest. The Company's 2017 through 2022 tax years remain subject to examination by the IRS for United States federal tax purposes, and the 2016 through 2021 tax years remain subject to examination by the appropriate governmental agencies for Canadian federal tax purposes. There are other on-going audits in various other jurisdictions that are not material to the Consolidated Financial Statements. The Company is subject to audit by tax authorities in the various jurisdictions in which it operates in the ordinary course of its business and believes that it has adequately reserved for the expected exposures in its accounts. During the fourth quarter of 2022, the Company received a Notice of Reassessment (the “Reassessment”) in the amount of $ 13.2 million (inclusive of interest). Although the CRA is continuing its audit and has requested additional information to continue its evaluation of the facts, a Reassessment was necessary as the time limitation for assessment as imposed under the relevant income tax treaty was set to expire before the audit could be completed. The Company believes that the matter will be resolved on a basis that is consistent with its filing position. (i) Income Tax Effect on Other Comprehensive (Loss) Income For the years ended December 31, 2022, 2021, and 2020, Income Tax (Expense) Benefit related to the components of Other Comprehensive (Loss) Income is as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized defined benefit plan actuarial (gain) loss $ ( 198 ) $ ( 37 ) $ 276 Unrealized postretirement benefit plans actuarial (gain) loss ( 762 ) ( 35 ) 92 Amortization of prior service cost ( 48 ) ( 48 ) ( 23 ) Unrealized change in cash flow hedging instruments 346 ( 123 ) ( 132 ) Realized change in cash flow hedging instruments ( 156 ) 446 ( 158 ) Reclassification of unrealized change in ineffective cash flow hedging instruments — 83 — $ ( 818 ) $ 286 $ 55 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 14. Goodwill and Other Intangible Assets (a) Goodwill As of December 31, 2022, the Company’s total Goodwill was $ 52.8 million , of which $ 13.8 million relates to the SSIMWAVE reporting unit, which was acquired on September 22, 2022, $ 19.1 million relates to the IMAX Systems reporting unit ( December 31, 2021 — $ 19.1 million), $ 13.5 million relates to the Joint Revenue Sharing Arrangements reporting unit ( December 31, 2021 — $ 13.5 million), and $ 6.4 million relates to the IMAX Maintenance reporting unit ( December 31, 2021 — $ 6.4 million). (See Note 5 for additional information related to the Company's acquisition of SSIMWAVE.) The Company performed a qualitative impairment test as of the annual assessment date, September 30, 2022, to evaluate whether it is more likely than not that the fair value of its reporting units was less than their respective carrying amounts. The Company concluded that it was not more likely than not that the fair value of its reporting units had been reduced below their respective carrying amounts. (b) Other Intangible Assets As of December 31, 2022 Accumulated Net Book (In thousands of U.S. Dollars) Cost Amortization Value Licenses and intellectual property $ 26,168 $ 15,232 $ 10,936 Internal use software 32,886 25,232 7,654 Developed technology 5,779 225 5,554 In process research and development 3,810 — 3,810 Patents and trademarks 13,031 9,771 3,260 Customer relationships 1,340 50 1,290 Other 769 535 234 $ 83,783 $ 51,045 $ 32,738 As of December 31, 2021 Accumulated Net Book (In thousands of U.S. Dollars) Cost Amortization Value Licenses and intellectual property $ 26,168 $ 13,642 $ 12,526 Internal use software 28,571 21,544 7,027 Patents and trademarks 12,834 9,406 3,428 Other 598 499 99 $ 68,171 $ 45,091 $ 23,080 During 2022 , the Company acquired $ 11.2 million of intangible assets through its acquisition of SSIMWAVE (see Note 5). In addition, during 2022, the Company capitalized $ 5.1 million related to the development of internal use software, as well as additions in patents and trademarks and other intangible assets (2021 — $ 4.1 million . The weighted average amortization period for these additions is 4.7 years (2021 — 2.3 years). The net book value of the other intangible assets capitalized in 2022 was $ 15.5 million as of December 31, 2022 (2021 — $ 3.9 million ). During 2022 , the Company incurred costs of $ 0.1 million to renew or extend the term of acquired patents and trademarks which were recorded in Selling, General and Administrative expenses ( 2021 — $ 0.1 million ). Fully amortized other intangible assets are still in use by the Company. In 2022, the Company identified and wrote off $ 0.1 million (2021 — $ 0.1 million ) of patents and trademarks that are no longer in use. The estimated amortization expense for each of the next five years following the December 31, 2022 balance sheet date is as follows: (In thousands of U.S. Dollars) 2023 $ ( 7,821 ) 2024 ( 7,636 ) 2025 ( 5,456 ) 2026 ( 3,059 ) 2027 ( 3,099 ) |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | 15. Borrowings (a) Revolving Credit Facility Borrowings, Net As of December 31, 2022 and 2021, Revolving Credit Facility Borrowings, Net includes the following: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Wells Fargo Credit Facility borrowings $ 25,000 $ — HSBC China Facility borrowings 12,496 — Bank of China Facility borrowings 374 3,612 Unamortized debt issuance costs ( 1,759 ) ( 1,140 ) Revolving Credit Facility Borrowings, net $ 36,111 $ 2,472 Wells Fargo Credit Agreement On March 25, 2022, the Company entered into a Sixth Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as agent (the “Agent”), and a syndicate of lenders party thereto (the “Credit Agreement”), which extended the maturity date of the credit facility under the Credit Agreement (the “Credit Facility”) from June 28, 2023 to March 25, 2027 . The Company's obligations under the Credit Agreement are guaranteed by certain of the Company's subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors. The Credit Agreement has a revolving borrowing capacity of $ 300.0 million, and contains an uncommitted accordion feature allowing the Company to further increase its borrowing capacity to the greater of $ 440.0 million or by the Company's EBITDA for the four most recently ended fiscal quarters, subject to certain conditions, depending on the mix of revolving loans and/or term loans under the incremental facility and subject to conditions set forth in the Credit Agreement. The Credit Facility requires that the Company maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25 :1.00 on the last day of each Fiscal Quarter. The Senior Secured Net Leverage Ratio is the ratio of Total Debt (as defined in the Credit Agreement), secured by liens, net of unrestricted cash and cash equivalents held outside of the People’s Republic of China to a maximum of $ 75.0 million, relative to Adjusted EBITDA per Credit Facility for the four prior quarters. The Company was in compliance with this requirement as of December 31, 2022 as the Senior Secured Net Leverage Ratio was 0.00 :1.00. Loans under the Credit Facility bear interest, at the Company's option, at (i) Term SOFR, Eurocurrency Rate or CDOR Rate plus a margin ranging from 1.00 % to 1.75 % per annum; or (ii) the U.S. base rate or the Canadian prime rate plus a margin ranging from 0.25 % to 1.00 % per annum, in each case depending on the Company's total leverage ratio. In no event will Term SOFR, Eurocurrency Rate or CDOR Rate be less than 0.00 % per annum. As of December 31, 2022, the Company’s borrowings of $ 25.0 million (December 31, 2021 — nil ) currently bear interest at Term SOFR, plus a margin of 1.75 % per annum based on the Company's total leverage ratio. The effective interest rate for the year ended December 31, 2022 was 5.64 % (2021 — 2.64 %). The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets. The Credit Agreement also contains customary representations, warranties and event of default provisions. The Company incurred fees of approximately $ 2.5 million in connection with the March 2022 amendment of the Credit Agreement, which are being amortized on a straight-line basis over the term of the Credit Agreement. In the first quarter of 2022, the Company expensed $ 0.4 million in unamortized deferred financing costs associated with lenders that are no longer parties to the Credit Agreement. On May 25, 2022, the Company delivered a “Designated Period” suspension notice to the Agent, and the Company, the Agent and the lenders under the Credit Agreement entered into a limited consent, which notice and limited consent evidenced and effectuated the termination of the Designated Period under the Credit Agreement. From and after the termination of the Designated Period, the $ 75.0 million minimum liquidity covenant in the Credit Agreement was no longer in effect. For the year ended December 31, 2022, the Company did no t have any letters of credit or advance payment guarantees outstanding under the Credit Facility. As of December 31, 2021, there were no amounts drawn under the previous credit facility, and the Company did no t have any letters of credit or advance payment guarantees outstanding under the previous credit facility. As of December 31, 2022 , the amount available for future borrowings under the Credit Facility was $ 275.0 million. Foreign Exchange Facility Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. As of December 31, 2022, the net unrealized loss on the Company's outstanding foreign currency forward contracts was $( 0.6 ) million , representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2021 — net unrealized gain of $ 0.1 million). As of December 31, 2022, the notional value of the Company's outstanding foreign currency forward contracts was $ 24.7 million (December 31, 2021 — $ 26.7 million ). Bank of China Facility In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company's majority-owned subsidiaries in China, renewed its unsecured revolving facility with Bank of China for up to 200.0 million Chinese Renminbi (“RMB”) ($ 28.7 million), including RMB 10.0 million ($ 1.4 million) for letters of guarantee, to fund ongoing working capital requirements (the “Bank of China Facility”). The Bank of China Facility expires in September 2023 . As of December 31, 2022, RMB 2.6 million ( $ 0.4 million ) of borrowings were outstanding under the Bank of China Facility and outstanding letters of guarantee were RMB 2.8 million ( $ 0.4 million ). As of December 31, 2021, outstanding Bank of China Facility borrowings were RMB 23.0 million ( $ 3.6 million ) and outstanding letters of guarantee were RMB 2.8 million ( $ 0.5 million ). As of December 31, 2022, the amount available for future borrowings under the Bank of China Facility was RMB 187.4 million ( $ 26.9 million ) and the amount available for letters of guarantee was RMB 7.2 million ( $ 1.0 million ). The amount available for future borrowings under the Bank of China Facility is not subject to a standby fee. The effective interest rate for the year ended December 31, 2022 was 4.12 % (2021 — 4.31 % ). HSBC China Facility In June 2022, IMAX Shanghai entered into an unsecured revolving facility for up to RMB 200.0 million ($ 28.7 million) with HSBC Bank (China) Company Limited, Shanghai Branch to fund ongoing working capital requirements (the “HSBC China Facility”). As of December 31, 2022, RMB 87.0 million ($ 12.5 million) of borrowings were outstanding under the HSBC China facility. As of December 31, 2022, the amount available for future borrowings under the HSBC China Facility was RMB 113.0 million ( $ 16.2 million ). The effective interest rate for the year ended December 31, 2022 was 3.91 % . NBC Facility In October 2019, the Company entered into a $ 5.0 million facility with National Bank of Canada (the “NBC Facility”) fully insured by Export Development Canada for use solely in conjunction with the issuance of performance guarantees and letters of credit. The NBC Facility will expire on June 30, 2023 , and is renewable on the same terms and conditions on an annual basis. The Company did no t have any letters of credit or advance payment guarantees outstanding as of December 31, 2022 and 2021 under the NBC Facility. (b) Convertible Notes and Other Borrowings, Net As of December 31, 2022 and December 31, 2021, Convertible Notes and Other Borrowings, Net includes the following: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Convertible Notes $ 230,000 $ 230,000 Unamortized discounts and debt issuance costs ( 4,870 ) ( 6,359 ) Convertible Notes, net 225,130 223,641 Federal Economic Development Loan 2,812 N/A Unaccreted interest benefit ( 1,030 ) N/A Federal Economic Development Loan, net 1,782 N/A Convertible Notes and Other Borrowings, net $ 226,912 $ 223,641 Convertible Notes On March 19, 2021, the Company issued $ 230.0 million of 0.500 % Convertible Senior Notes due 2026 (the “Convertible Notes”) in a private placement conducted pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from the issuance of the Convertible Notes were $ 223.7 million, after deducting the initial purchasers’ discounts and commissions. In addition, the Company paid $ 1.2 million of debt issuance costs associated with the Convertible Notes. The Company used a portion of the net proceeds from the issuance of the Convertible Notes to make a partial repayment of previous outstanding revolving credit facility borrowings, and used the remainder for working capital or other general corporate purposes. The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021 . The Convertible Notes will mature on April 1, 2026 , unless they are redeemed or repurchased by the Company or converted on an earlier date. Holders of the Convertible Notes have the right to convert their Convertible Notes in certain circumstances and during specified periods. Before January 1, 2026, holders of the Convertible Notes have the right to convert their Convertible Notes only upon the occurrence of certain events. From and after January 1, 2026, holders of the Convertible Notes may convert their Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company will pay or deliver, as applicable, cash or a combination of cash (in an amount no less than the principal amount of the Convertible Notes being converted) and common shares, at its election, based on the applicable conversion rates. The initial conversion rate is 34.7766 common shares per $ 1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $ 28.75 per common share, and is subject to adjustment upon the occurrence of certain events. The Convertible Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after April 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price for a specified period of time. In addition, calling any Convertible Notes for redemption will constitute a “make-whole fundamental change” with respect to such notes, in which case the conversion rate applicable to the conversion of such notes will be increased in certain circumstances if such notes are converted after they are called for redemption . In addition, upon the occurrence of a “fundamental change” (as defined below), holders may require the Company to repurchase their Convertible Notes at a cash repurchase price equal to the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, if any. Subject to the terms and conditions of the indenture governing the Convertible Notes, a “fundamental change” means, among other things, an event resulting in (i) a change of control, (ii) a transfer of all or substantially all of the assets of the Company, (iii) a merger, (iv) liquidation or dissolution of the Company, or (v) delisting of the Company’s common shares from a national securities exchange. The Company recorded the Convertible Notes entirely as a liability in the Consolidated Balance Sheets, net of initial purchasers' discounts and commissions and other debt issuance costs, with interest expense reflecting the cash coupon plus the amortization of the discounts and capitalized costs. Additionally, under the "if-converted" method, because the principal amount of the Convertible Notes is settled in cash and the conversion spread is settleable in the Company's common shares, diluted earnings per share is calculated by including the net number of incremental shares that would be issued upon conversion of the Convertible Notes, using the average market price during the period. Accordingly, the application of the "if-converted" method may reduce the Company's reported diluted earnings per share. In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Capped Call Transactions are expected to reduce potential dilution resulting from the common shares the Company is required to issue and/or to offset any potential cash payments the Company is required to make in excess of the principal amount of the Convertible Notes in the event that the market price per share of the Company’s common shares is greater than the strike price of the Capped Call Transactions with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial cap price of $ 37.2750 per share of the Company’s common shares, which represents a premium of 75 % over the last reported sale price of the common shares when they were priced on March 16, 2021, and are subject to certain adjustments under the terms of the Capped Call Transactions. Collectively, the Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes, the number of the Company’s common shares underlying the Convertible Notes. The cost of the Capped Call Transactions was approximately $ 19.1 million. The Capped Call Transactions are separate transactions, are not part of the terms of the Convertible Notes and will not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Capped Call Transactions. The Capped Call Transactions meet all of the applicable criteria for equity classification in accordance with ASC 815-10-15-74(a), “Derivatives and Hedging—Embedded Derivatives—Certain Contracts Involving an Entity’s Own Equity,” and, as a result, the related $ 19.1 million cost was recorded as a reduction to Other Equity within Shareholders’ Equity on the Company’s Consolidated Statements of Shareholders’ Equity and Consolidated Balance Sheets. Federal Economic Development Loan SSIMWAVE entered into a contribution agreement with the Federal Economic Development Agency for Southern Ontario (the “Federal Economic Development Loan” ) on May 29, 2019, under which SSIMWAVE may receive up to $ 4.2 million Canadian Dollars ( “CAD” ) ($ 3.1 million) by way of repayable contributions toward certain eligible projects costs. The contributions under the agreement cover 35 % of the eligible and supported costs of SSIMWAVE between January 10, 2019 and December 31, 2022. The contributions are repayable over 60 months , with repayments estimated to begin in January 2024 , with an annual interest rate of 0 %. As of December 31, 2022, SSIMWAVE has received contributions of CAD $ 3.8 million ( $ 2.8 million ) from the Federal Economic Development Loan. The benefit of the interest free loan has been determined by calculating the present value of the payments using a market-based interest rate and comparing this to the proceeds received. The benefit is being recorded as the interest free benefit of government funding within Interest Income on the Company's Consolidated Statements of Operations. No benefit was recorded during the year ended December 31, 2022, as the Company did not receive any funding since the date of acquisition. The obligation is being accreted to its maturity amount, resulting in an interest accretion expense of less than $ 0.1 million in 2022 and is being recorded within Interest Expense on the Company's Consolidated Statements of Operations. As of December 31, 2022, the Federal Economic Development Loan has a carrying value of $ 1.8 million , net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company's Consolidated Balance Sheets. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 16. Commitments In the ordinary course of its business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements can include terms binding the Company to minimum payments and/or penalties if it terminates the agreement for any reason other than an event of default as described by the agreement. The following table presents a summary of the Company’s contractual obligations and commitments as of December 31, 2022: Payments Due by Period (In thousands of U.S. Dollars) Total Less Than One Year 1 to 3 years 3 to 5 years Thereafter Purchase obligations (1) $ 37,884 $ 34,419 $ 3,183 $ 37 $ 245 Pension obligations (2) 20,295 — — 20,295 — Operating lease obligations (3) 18,013 3,905 5,825 4,137 4,146 Finance lease obligations 1,016 508 508 — — Wells Fargo Facility 25,000 — — 25,000 — HSBC Facility 12,496 12,496 — — — Bank of China Facility 374 374 — — — Federal Economic Development Loan (4) 2,812 — 1,250 1,250 312 Convertible Notes (5) 234,025 1,150 2,300 230,575 — Postretirement benefits obligations 2,504 104 210 220 1,970 $ 354,419 $ 52,956 $ 13,276 $ 281,514 $ 6,673 (1) Represents total payments to be made under binding commitments with suppliers and outstanding payments to be made for supplies ordered, but yet to be invoiced. (2) The Company has an unfunded defined benefit pension plan covering its Chief Executive Officer. (See Note 24 .) (3) Represents total minimum annual rental payments due under the Company’s operating leases. (See Note 7 .) (4) The Federal Economic Development Loan will be repayable over 60 months, with repayments estimated to begin in January 2024. (See Note 15 (b).) (5) The Convertible Notes bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021 . The Convertible Notes will mature on April 1, 2026 , unless earlier repurchased, redeemed or converted. (See Note 15 (b).) The Company compensates its sales force with both fixed and variable compensation. Commissions on the sale or lease of IMAX Systems are payable in graduated amounts from the time of collection of the customer’s first payment to the Company up to the collection of the customer’s last initial payment. As of December 31, 2022, $ 2.2 million (December 31, 2021 — $ 1.1 million ) of commissions have been accrued and will be payable in future periods. |
Contingencies and Guarantees
Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Guarantees | 17. Contingencies and Guarantees The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. Management is required to assess the likelihood of any adverse judgments or outcomes related to these legal contingencies, as well as potential ranges of probable or reasonably possible losses. The Company records a provision for a liability when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The determination of the amount of any liability recorded or disclosed is reviewed at least quarterly based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel, taking into account the impact of negotiations, settlements, rulings, and other pertinent information related to the case. The amount of liabilities recorded or disclosed for these contingencies may change in the future due to changes in management's judgments resulting from new developments or changes in settlement strategy. Any resulting adjustment to the liabilities recorded by the Company could have a material adverse effect on its results of operations, cash flows, and financial position in the period or periods in which such changes in judgment occur. The Company believes it has adequate provisions for any such matters. The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred. (i) In January 2004, the Company and IMAX Theatre Services Ltd., a subsidiary of the Company, commenced an arbitration seeking damages before the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) with respect to the breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company. In June 2004, the Company commenced a related arbitration before the ICC against EML's affiliate, E-City Entertainment (I) PVT Limited (“E-City”). On March 27, 2008, the arbitration panel issued a final award in favor of the Company in the amount of $ 11.3 millio n, consisting of past and future rents owed to the Company, plus interest and costs, as well as an additional $ 2,512 each day in interest from October 1, 2007 until the date the award is paid . In July 2008, E-City commenced a proceeding in Mumbai, India seeking to prevent recognition of the ICC award in India. On March 10, 2017, the Supreme Court dismissed E-City's petition. On March 29, 2017, the Company filed an Execution Application in the Bombay High Court seeking to enforce the ICC award against E-City and several related parties, which award the Company calculates to be $ 25.3 million, inclusive of interest, as of December 31, 2022. That matter is currently pending. The Company has also taken steps to enforce the ICC final award outside of India. In December 2011, the Ontario Superior Court of Justice issued an order recognizing the final award and requiring E-City to pay the Company $ 30,000 to cover the costs of the application , and in May 2012, the New York Supreme Court recognized the Canadian judgment and entered it as a New York judgment. The Company intends to continue pursuing its rights and seeking to enforce the award, although no assurances can be given with respect to the ultimate outcome. (ii) On November 11, 2013, Giencourt Investments, S.A. (“Giencourt”) initiated arbitration before the International Centre for Dispute Resolution in Miami, Florida, based on alleged breaches by the Company of its theater agreement and related license agreement with Giencourt. On February 7, 2017, the panel issued a Partial Final Award and on July 21, 2017, the panel issued a Final Award (collectively, the “Award”), which held that the parties had reached a binding settlement, and therefore the panel did not reach a decision regarding the merits of the dispute. On December 3, 2020, the District Judge entered a final judgment (the “Final Judgment”) against the Company in the total amount of $ 11.3 million as damages under the Award. As of December 31, 2020, the Company's Consolidated Balance Sheets included a liability within Accrued and Other Liabilities of $ 11.3 million related to the Final Judgment, consisting of $ 7.2 million related to amounts collected from or owed to Giencourt principally in respect of theater systems that were not delivered and $ 4.1 million in respect of the remaining amounts owed under the Final Judgment. On June 23, 2021, the Company entered into a final settlement agreement with Giencourt to fully resolve all disputes between the parties in the United States and Ontario (the “Settlement Agreement” ). In the second quarter of 2021, the Company paid Giencourt $ 9.5 million as required by the terms of the Settlement Agreement. As a result of the Settlement Agreement, the Final Judgment has been vacated, all litigation between the parties in all jurisdictions has been dismissed and full and final releases have been exchanged by the parties. Accordingly, upon entry in the Settlement Agreement on June 23, 2021, the remaining $ 1.8 million liability recorded within Accrued and Other Liabilities was reversed and a corresponding $ 1.8 million benefit was recorded in the Company's Consolidated Statements of Operations within Legal Judgment and Arbitration Awards in the second quarter of 2021. (iii) In addition to the matters described above, the Company is currently involved in other legal proceedings or governmental inquiries which, in the opinion of the Company's management, will not materially affect the Company's financial position or future operating results, although no assurance can be given with respect to the ultimate outcome of any such proceedings. (iv) In the normal course of business, the Company enters into agreements that may contain features that meet the definition of a guarantee. A guarantee is a contract (including an indemnity) that contingently requires the Company to make payments (either in cash, financial instruments, other assets, shares of its stock, or provision of services) to a third party based on (a) changes in an underlying interest rate, foreign exchange rate, equity or commodity instrument, index or other variable, that is related to an asset, a liability or an equity security of the counterparty, (b) failure of another party to perform under an obligating agreement or (c) failure of another third party to pay its indebtedness when due. Financial Guarantees Certain subsidiaries of the Company have provided significant financial guarantees to third parties under the Credit Agreement (see Note 15). Product Warranties The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities in the Consolidated Balance Sheets, was $ nil as of December 31, 2022 and 2021, respectively. Director/Officer Indemnifications The Company’s by-laws contain an indemnification of its directors/officers, former directors/officers, and persons who have acted at its request to be a director/officer of an entity in which the Company is a shareholder or creditor, to indemnify them, to the extent permitted by the Canada Business Corporations Act , against expenses (including legal fees), judgments, fines and any amounts actually and reasonably incurred by them in connection with any action, suit or proceeding in which the directors and/or officers are sued as a result of their service, if they acted honestly and in good faith with a view to the best interests of the Company. In addition, the Company has entered into indemnification agreements with each of its directors in order to effectuate the foregoing. The nature of the indemnification prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. The Company has purchased directors’ and officers’ liability insurance. No amount has been accrued in the Company's Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021 with respect to this indemnity. Other Indemnification Agreements In the normal course of its operations, the Company provides indemnifications to counterparties in transactions such as: IMAX System lease and sale agreements and the supervision of installation or servicing of IMAX Systems; film production, exhibition and distribution agreements; real property lease agreements; and employment agreements. These indemnification agreements require the Company to compensate the counterparties for costs incurred as a result of litigation claims that may be suffered by the counterparty as a consequence of the transaction or the Company’s breach or non-performance under these agreements. While the terms of these indemnification agreements vary based upon the contract, they normally extend for the life of the agreements. A small number of agreements do not provide for any limit on the maximum potential amount of indemnification; however, virtually all of the IMAX System lease and sale agreements limit such maximum potential liability to the purchase price of the system. The fact that the maximum potential amount of indemnification required by the Company is not specified in some cases prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. Historically, the Company has no t made any significant payments under such indemnifications and no amounts have been accrued in the Consolidated Financial Statements with respect to the contingent aspect of these indemnities. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Capital Stock | 18. Capital Stock (a) Authorized Common Shares The authorized capital of the Company consists of an unlimited number of common shares. The following is a summary of the rights, privileges, restrictions, and conditions of the common shares. The holders of common shares are entitled to receive dividends, if and when declared by the directors of the Company, subject to the rights of the holders of any other class of shares of the Company entitled to receive dividends in priority to the common shares. The holders of the common shares are entitled to one vote for each common share held at all meetings of the shareholders. (b) Settlements of Share-Based Compensation During the years ended December 31, 2022, 2021, and 2020 , the Company settled the exercise of stock options and the vesting of RSUs with its common shares. These settlements were either through newly issued common shares from treasury or through the purchase of common shares in the open market by the IMAX LTIP trustee. The following table summarizes the settlement of stock option and RSU transactions: Years Ended December 31, 2022 2021 2020 Stock options Issued from treasury — 41,613 — Plan trustee purchases — — — Total stock options exercised — 41,613 — RSUs Issued from treasury 596,277 531,629 42,982 Plan trustee purchases — 723 386,297 Shares withheld for tax withholdings 203,956 157,546 24,714 Total RSUs vested 800,233 689,898 453,993 (c) Share-Based Compensation The Company issues share-based compensation to eligible employees, directors, and consultants under the IMAX LTIP and the China LTIP, as summarized below. On June 3, 2020, the Company’s shareholders approved the IMAX LTIP at its Annual and Special Meeting. Awards under the IMAX LTIP may consist of stock options, RSUs, PSUs, and other awards. Stock options are no longer granted under the Company’s previously approved Stock Option Plan (“SOP”). For the year ended December 31, 2022, share-based compensation expense totaled $ 27.0 million (2021 — $ 25.6 million ; 2020 — $ 21.5 million ) and is reflected in the following accounts in the Consolidated Statements of Operations: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Cost and expenses applicable to revenues $ 1,156 $ 1,490 $ 691 Selling, general and administrative expenses 25,438 23,776 20,652 Research and development 419 348 150 $ 27,013 $ 25,614 $ 21,493 As of December 31, 2022, the Company has reserved a total of 5,788,499 (December 31, 2021 — 5,807,445 ) common shares for future issuance under the IMAX LTIP. Of this amount, 3,604,739 common shares are reserved for the future exercise of stock options (December 31, 2021 — 3,736,157 ), 931,716 common shares are reserved for the future vesting of PSUs (December 31, 2021 — 613,405 ), and 1,252,044 common shares are reserved for the future vesting of RSUs (December 31, 2021 — 1,457,883 ). As of December 31, 2022, stock options in respect of 3,523,335 (December 31, 2021 — 3,488,107 ) common shares were vested and exercisable. IMAX LTIP and SOP Stock Options The Company’s policy is to issue new common shares from treasury or shares purchased in the open market to satisfy stock options which are exercised. The Company no longer intends to issue new stock option awards. The Company utilizes a Binomial Model to determine the fair value of stock option awards on the grant date. The fair value determined by the Binomial Model is affected by the Company’s stock price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the award, and actual and projected employee stock option exercise behaviors. The Binomial Model also considers the expected exercise multiple which is the multiple of exercise price to grant price at which exercises are expected to occur on average. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company’s employee stock options have certain characteristics that are significantly different from traded options, and because changes in the subjective assumptions can materially affect the estimated value, in management’s opinion, the Binomial Model best provides a fair measure of the fair value of the Company’s employee stock options. All stock option awards are granted at the fair market value of the Company’s common shares on the date of grant. The fair market value of a common share on a given date is based on the higher of the closing price of a common share on either: (i) the grant date or (ii) the most recent trading date if the grant date is not a trading date on the New York Stock Exchange (“NYSE”) or such national exchange as may be designated by the Company’s Board of Directors. The stock options vest within 4 years and expire 10 years or less from the date of grant. The SOP and IMAX LTIP provide for double-trigger accelerated vesting in the event of a change in control, as defined in each plan. The Company recorded the following expenses related to stock options issued to employees and directors under the IMAX LTIP and SOP: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Stock option expense $ 572 $ 1,064 $ 1,847 For the year ended December 31, 2022, the Company’s Consolidated Statements of Operations includes an income tax benefit of $ 0.1 million related to stock option expense (2021 — $ 0.1 million ; 2020 — $ 0.1 million ). As of December 31, 2022, 2021, and 2020, unrecognized share-based compensation expense related to non-vested employee stock options is as follows: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Expense related to non-vested employee stock options $ 86 $ 662 $ 2,029 As of 2022, 2021, and 2020, unrecognized share-based compensation expense related to non-vested employee stock options is expected to be recognized over the following weighted-average periods: As of December 31, 2022 2021 2020 Weighted average period (in years) 0.2 1.1 1.8 During the years ended December 31, 2022, 2021 and 2020, the Company did not grant any stock options. The following table summarizes the stock option activity under the SOP and IMAX LTIP for the years ended December 31, 2022, 2021, and 2020: Weighted Average Exercise Number of Shares Price Per Share 2022 2021 2020 2022 2021 2020 Stock options outstanding, beginning of year 3,736,157 4,892,962 5,732,209 $ 26.61 $ 26.81 $ 26.82 Granted — — — — — — Exercised — ( 41,613 ) — — 21.23 — Forfeited ( 796 ) ( 88,934 ) ( 34,678 ) 22.49 22.49 22.49 Expired ( 126,569 ) ( 903,038 ) ( 786,086 ) 33.61 28.31 27.07 Cancelled ( 4,053 ) ( 123,220 ) ( 18,483 ) 27.92 26.68 27.97 Stock options outstanding, end of year 3,604,739 3,736,157 4,892,962 26.36 26.61 26.81 Stock options exercisable, end of year 3,523,335 3,488,107 4,311,761 26.45 26.93 27.30 As of December 31, 2022, 3,604,739 options outstanding included both fully vested and unvested options with a weighted average exercise price of $ 26.36 , an aggregate intrinsic value of $nil and a weighted average remaining contractual life of 3.3 years. The intrinsic value of options exercised in 2022 was $nil (2021 — $ 0.1 million ; 2020 — $nil). IMAX LTIP Restricted Share Units RSUs have been granted to employees and directors under the IMAX LTIP. Each RSU represents a contingent right to receive a common share and is the economic equivalent of one common share. The grant date fair value of each RSU is equal to the share price of the Company’s stock at the grant date or the average closing price of the Company’s common stock for five days prior to the date of grant. For the years ended December 31, 2022, 2021, and 2020, the Company recorded the following expenses related to RSUs issued to employees and directors in the IMAX LTIP: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 RSU expenses $ 15,498 $ 15,555 $ 13,761 The Company’s actual tax expense realized for the tax deductions related to the vesting of RSUs was $ 0.9 million for the year ended December 31, 2022 (2021 — benefit of $ 0.6 million ; 2020 — benefit of $ 0.3 million ). The Company’s accrued liability for granted RSUs was $ 0.8 million as of December 31, 2022 (December 31, 2021 — $ 2.6 million ). Total share-based compensation expense related to non-vested RSUs not yet recognized and the weighted average period over which the awards are expected to be recognized are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Expense related to non-vested RSUs not yet recognized $ 17,457 $ 15,913 $ 17,343 Weighted average period awards are expected to be recognized (in years) 1.5 1.6 1.9 The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the years ended December 31, 2022, 2021, and 2020: Number of Awards Weighted Average Grant Date Fair 2022 2021 2020 2022 2021 2020 RSUs outstanding, beginning of year 1,457,883 1,564,838 1,065,347 $ 19.16 $ 18.33 $ 23.17 Granted 708,313 831,123 1,050,385 19.31 21.03 15.35 Vested and settled ( 800,231 ) ( 689,872 ) ( 453,993 ) 19.10 19.46 22.71 Forfeited ( 113,921 ) ( 248,206 ) ( 96,901 ) 20.39 19.38 18.81 RSUs outstanding, end of year 1,252,044 1,457,883 1,564,838 19.16 19.16 18.33 Historically, RSUs granted under the IMAX LTIP have vested between immediately and three years from the grant date. In connection with the second amendment and restatement of the IMAX LTIP at the Company’s annual and special meeting of the shareholders on June 3, 2020, the IMAX LTIP plan retained the minimum one-year vesting period on future RSU grants, with a carve-out for an aggregate of no more than 5 % of the total number of common shares authorized for issuance under the plan that may vest on a shorter schedule. Vesting of the RSUs is subject to continued employment or service with the Company. The following table summarizes the number of RSUs issued from the carve-out balance: Approved under the June 3, 2020 amended and restated IMAX LTIP 885,000 Issued during previous years ( 482,912 ) Issued during 2022 ( 59,030 ) Outstanding, December 31, 2022 343,058 Restricted Share Units to Non-Employees During the years ended December 31, 2022, 2021 and 2020 , the Company did no t grant any stock options to non-employees. The Company did no t record any expenses for the year ended December 31, 2022 related to RSU grants issued to advisors and strategic partners of the Company (2021 ― $nil; 2020 ― $ 0.1 million). IMAX LTIP Performance Stock Units Summary In 2020, the Company expanded its share-based compensation program to include PSUs. The Company grants two types of PSUs awards, one which vests based on a combination of employee service and the achievement of certain EBITDA-based targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets. The achievement of the EBITDA and TSR targets in these PSUs is determined over a three-year performance period. At the conclusion of the three-year performance period, the number of PSUs that ultimately vest can range from 0 % to a maximum vesting opportunity of 175 % of the initial award, depending upon actual performance versus the established EBITDA and stock-price targets. The grant date fair value of PSUs with EBITDA-based targets is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant. The grant date fair value of PSUs with TSR targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model that considers the likelihood of achieving the TSR targets embedded in the award (“Monte Carlo Model”). The compensation expense attributable to each type of PSU is recognized on a straight-line basis over the requisite service period. The fair value determined by the Monte Carlo Model is affected by the Company’s share price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, market conditions as of the grant date, the Company’s expected share price volatility over the term of the awards, and other relevant data. The compensation expense is fixed on the date of grant based on the fair value of the PSUs granted. The amount and timing of compensation expense recognized for PSUs with EBITDA-based targets is dependent upon management's assessment of the likelihood of achieving these targets. If, as a result of management’s assessment, it is projected that a greater number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase compensation expense is recorded in the period that such determination is made. Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period that such determination is made. For the years ended December 31, 2022, 2021, and 2020, the Company recorded the following expenses related to outstanding PSUs, which includes adjustments reflecting management’s estimate of the number of PSUs with EBITDA-based targets expected to vest: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 PSU expenses $ 8,306 $ 5,322 $ 2,563 The Company’s actual tax benefits realized for the tax deductions related to the vesting of PSUs was $nil for the year ended December 31, 2022 (2021 ― $nil; 2020 ― $nil). As of December 31, 2022 , total unrecognized share-based compensation expense related to unvested PSUs and the weighted average period over which the expense is expected to be recognized is $ 10.8 million and 1.8 years, respectively. The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP: Number of Awards Weighted Average Grant Date 2022 2021 2020 2022 2021 2020 PSUs outstanding, beginning of year 613,405 361,844 — $ 18.21 $ 15.68 $ — Granted 359,138 309,574 370,265 20.34 20.77 15.66 Forfeited ( 40,827 ) ( 58,013 ) ( 8,421 ) 19.90 16.11 4.84 PSUs outstanding, end of year 931,716 613,405 361,844 18.96 18.21 15.68 As of December 31, 2022 , the maximum number of shares of common stock that may be issued with respect to PSUs outstanding is 1,630,503 , assuming full achievement of the EBITDA and stock-price targets. China Long-Term Incentive Plan Each stock option (“China Option”), RSU, or PSU issued under the China LTIP represents an opportunity to participate economically in the future growth and value creation of IMAX China. In connection with the IMAX China IPO and in accordance with the China LTIP, IMAX China adopted a post-IPO share option plan and a post-IPO restricted stock unit plan. Pursuant to these plans, IMAX China has issued additional China Options, China LTIP Performance Stock Units (“China PSUs”), and China LTIP Restricted Share Units (“China RSUs”). For the years ended December 31, 2022, 2021, and 2020, share-based compensation expense related to China Options, China RSUs and China PSUs was as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Expense China Options $ 91 $ 285 $ 875 China RSUs 2,284 2,810 2,093 China PSUs 262 578 208 Total $ 2,637 $ 3,673 $ 3,176 In 2022, IMAX China modified the terms of certain fully vested stock options to extend their contractual life by one year and recorded an associated expense of $ 0.1 million ( 2021 ― $ 0.1 million; 2020 ― $ 0.7 million). Issuer Purchases of Equity Securities On April 28, 2022 and July 28, 2022, the Company’s Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2023 and an increase of $ 200.0 million in the share repurchase program, respectively. With the increase of $ 200.0 million, the Company's total share repurchase authority is $ 400.0 million under the current share repurchase program. As of December 31, 2022 , the Company has $ 193.4 million available under its approved repurchase program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time. In 2022, the Company repurchased 5,401,852 (2021 ― 841,331 ) common shares at an average price of $ 15.19 per share (2021 ― $ 16.51 per share), for a total of $ 82.0 million (2021 ― $ 13.9 million ), excluding commissions, of which 140,000 were common shares (2021 ― nil ) where settlement occurred subsequent to December 31, 2022, at an average price of $ 14.45 per share, for a total of $ 2.0 million, excluding commissions. Subsequent to December 31, 2022 and through February 21, 2023, the Company completed repurchases through a 10b5-1 program of 109,477 shares at an average price of $ 14.87 per share, for a total cost of $ 1.6 million, excluding commissions. The following table summarizes the Company's share repurchases during the years ended December 31, 2022 and 2021: Total Number of Shares Repurchased Average Price Paid Per Share (in thousands of U.S. Dollars) 2022 2021 2022 2021 Shares repurchased 5,401,852 841,331 $ 15.19 $ 16.51 For the years ended December 31, 2022 and 2021 , there were no shares purchases in the administration of employee share based plans. As of December 31, 2022, the IMAX LTIP trustee held nil shares. Any shares held with the trustee are recorded at cost and are reported as a reduction against Capital Stock on the Company’s Consolidated Balance Sheets. In 2021, IMAX China’s shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10 % of the total number of issued shares as of May 6, 2021 ( 34,835,824 shares). This program expired on the date of the 2022 Annual General Meeting of IMAX China on June 23, 2022. During the 2022 Annual General Meeting, shareholders approved the repurchase of shares of IMAX China not to exceed 10 % of the total number of issued shares as of June 23, 2022 ( 34,063,480 shares). This program will be valid until the 2023 Annual General Meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time. In 2022, IMAX China repurchased 2,961,800 (2021 ― 6,664,700 ) common shares at an average price of HKD 8.00 per share (U.S. $ 1.02 per share) for a total of HKD 23.7 million or U.S. $ 3.0 million (2021 ― HKD 11.68 per share or U.S. $ 1.50 per share, for a total of HKD 77.8 million or U.S. $ 10.0 million ). The change in non-controlling interest as a result of common shares repurchased by IMAX China is recorded within Non-Controlling Interest in the Consolidated Balance Sheets and the Consolidated Statements of Shareholders’ Equity. The difference between the consideration paid and the ownership interest obtained as a result of IMAX China share repurchases is recorded within Other Equity in the Consolidated Balance Sheets and the Consolidated Statements of Shareholders’ Equity (see Note 3(a)). The following table summarizes the IMAX China's share repurchases during the years ended December 31, 2022 and 2021: Total Number of Shares Repurchased Average Price Paid Per Share (in thousands of U.S. Dollars) 2022 2021 2022 2021 Shares repurchased 2,961,800 6,664,700 $ 1.02 $ 1.50 (d) Basic and Diluted Weighted Average Shares Outstanding The following table reconciles the denominator of the basic and diluted weighted average share computations: Years Ended December 31, (In thousands) 2022 2021 2020 Issued and outstanding, beginning of period 58,654 58,921 61,176 Weighted average number of shares (repurchased) issued, net ( 1,980 ) 205 ( 1,939 ) Weighted average number of shares outstanding - basic and diluted 56,674 59,126 59,237 For the year ended December 31, 2022, the calculation of diluted earnings per share excludes 4,523,121 (2021 and 2020 ― 6,131,792 and 6,999,667 , respectively) shares that are issuable upon the vesting of 637,120 RSUs (2021 and 2020 ― 1,457,883 and 1,564,838 , respectively), the vesting of 281,262 PSUs (2021 and 2020 ― 937,752 and 541,867 respectively), and the exercise of 3,604,739 stock options (2021 and 2020 ― 3,736,157 and 4,892,962 , respectively), as the effect would be anti-dilutive. The calculation of diluted weighted average shares outstanding for the year ended December 31, 2022 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes. (See Note 15(b).) (e) Statutory Surplus Reserve Pursuant to the corporate law of the People’s Republic of China (the “PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits, after offsetting accumulated losses from prior years, before dividends can be declared or paid to equity holders. The Company’s PRC subsidiaries are required to appropriate 10 % of statutory net profits to statutory surplus reserves, upon distribution of their after-tax profits. The Company’s PRC subsidiaries may discontinue the appropriation of statutory surplus reserves when the aggregate sum of the statutory surplus reserve is more than 50 % of their registered capital. The statutory surplus reserve is non-distributable other than during liquidation and may only be used to fund losses from prior years, to expand production operations, or to increase the capital of the subsidiaries. In addition, the subsidiaries may make further contribution to the discretional surplus reserve using post-tax profits in accordance with resolutions of the Board of Directors. In 2021, one of the Company's PRC subsidiaries declared and paid dividends of RMB 131.6 million ($ 20.4 million). In the third quarter of 2021, upon passage of the requisite resolution of the Board of Directors, a statutory surplus reserve of RMB 36.4 million ($ 5.6 million) was recorded within Shareholders' Equity as an appropriation of the retained earnings of the Company's PRC subsidiaries, of which $ 3.9 million is attributable to the Company's common shareholders and $ 1.7 million is attributable to non-controlling shareholders. The statutory surplus reserve of RMB 36.4 million ($ 5.6 million) has reached 50 % of its PRC subsidiaries' registered capital. No additional statutory surplus reserve was recorded by the Company's PRC subsidiaries for the year ended December 31, 2022 . |
Consolidated Statements of Op_2
Consolidated Statements of Operations Supplemental Information | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Statements of Operations Supplemental Information | 19. Consolidated Statements of Operations Supplemental Information (a) Selling Expenses The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Consolidated Statements of Operations, for the years ended December 31, 2022, 2021 and 2020: Years Ended December 31, 2022 2021 2020 (In thousands of U.S. Dollars) Sales Marketing and Other Sales Marketing and Other Sales Marketing and Other Technology sales (1) $ 479 $ 810 $ 1,885 $ 989 $ 1,278 $ 1,077 Image enhancement and maintenance services (2) — 20,284 — 8,923 — 4,306 Technology rentals (3) 85 663 399 1,109 908 510 Total $ 564 $ 21,757 $ 2,284 $ 11,021 $ 2,186 $ 5,893 (1) Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System. Direct advertising and marketing costs for each IMAX System are expensed as incurred. (2) Film exploitation costs, including advertising and marketing costs are expensed as incurred. (3) Sales commissions related to joint revenue sharing arrangements accounted for operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed. Direct advertising and marketing costs for each IMAX System are expensed as incurred. (b) Foreign Exchange Included in Selling, General and Administrative Expenses for the year ended December 31, 2022 is a net loss of $( 3.2 ) million resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities, primarily due to the weakening of the RMB against the USD, as compared to a net gain of $ 1.3 million and a net gain of $ 0.8 million for the years ended December 31, 2021 and 2020, respectively. See Note 23(c) for additional information. (c) Collaborative Arrangements Joint Revenue Sharing Arrangements See Note 7 for a description of the material terms of the Company's collaborative joint revenue sharing arrangements. The accounting policy for the Company's joint revenue sharing arrangements is disclosed in Note 3(o). Revenue attributable to transactions arising between the Company and its customers under joint revenue sharing arrangements are recorded within Revenues – Technology Sales (for hybrid joint revenue sharing arrangements) and Revenues – Technology Rentals (for traditional joint revenue sharing arrangements). For the year ended December 31, 2022, such revenues totaled $ 66.6 million (2021 — $ 51.6 million ; 2020 — $ 19.9 million ). (See Note 21(a) for a disaggregated presentation of the Company’s revenues.) IMAX DMR In an IMAX DMR arrangement, the Company receives a percentage of the box office receipts from a third party who owns the copyright to a film in exchange for converting the film into IMAX DMR format and distributing it through the IMAX network . The fee earned by the Company in a typical IMAX DMR arrangement averages approximately 12.5 % of box office receipts (i.e. gross box office receipts less applicable sales taxes), except for within Greater China, where the Company receives a lower percentage of net box office receipts for certain Hollywood films. The accounting policy for the Company's IMAX DMR arrangements is disclosed in Note 3(o). Revenue attributable to transactions arising between the Company and its customers under IMAX DMR arrangements are included in Revenues – Image Enhancement and Maintenance Services. For the year ended December 31, 2022, such revenues totaled $ 94.9 million (2021 — $ 70.7 million ; 2020 — $ 28.3 million ). (See Note 21(a) for a disaggregated presentation of the Company’s revenues.) Co-Produced Film Arrangements In certain film arrangements, the Company co-produces a film with a third party whereby the third party retains the copyright and certain other rights to the film. In some cases, the Company obtains exclusive theatrical distribution rights to the film. Under these arrangements, both parties contribute to the funding of the production, distribution and exploitation costs associated with the film. As of December 31, 2022 , the Company is party to one co-produced film arrangement, which represents the VIE total assets balance of $ 1.5 million and liabilities balance of $ 0.2 million and three other co-produced film arrangements, the terms of which are similar. The accounting policies relating to co-produced film arrangements are disclosed in Notes 3(a) and 3(o). In 2022, an expense of $ 0.8 million (2021 — $ 0.4 million ; 2020 — $ 2.0 million ) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. In 2017, the Company participated in one significant co-produced television arrangement. This arrangement was not a VIE. For the year ended December 31, 2022, revenues of $ 0.3 million (2021 — $ 0.2 million ; 2020 — $ 0.3 million ) and Costs and Expenses Applicable to Revenues of $nil (2021 — $ nil ; 2020 — $ nil ) attributable to this collaborative arrangement were recorded within Revenue – Image Enhancement and Maintenance Services and Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Supplemental Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Consolidated Statements of Cash Flows Supplemental Information | 20. Consolidated Statements of Cash Flows Supplemental Information (a) Changes in other operating assets and liabilities Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Decrease (Increase) in: Financing receivables $ 5,411 $ ( 7,637 ) $ ( 10,568 ) Prepaid expenses ( 1,892 ) ( 3,230 ) ( 979 ) Variable consideration receivables 667 ( 2,905 ) ( 2,361 ) Other assets 968 1,003 ( 4,747 ) Increase (Decrease) in: Accounts payable 8,496 ( 4,752 ) 414 Accrued and other liabilities ( 12,849 ) 15,167 ( 6,399 ) $ 801 $ ( 2,354 ) $ ( 24,640 ) (b) Cash payments made on account Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Income taxes (1) $ 13,963 $ 18,475 $ 4,763 Interest $ 715 $ 3,251 $ 5,773 (1) In 2021 , the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $ 8.9 million in income taxes and $ 1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $ 8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $ 1.6 million in associated interest. (c) Depreciation and amortization Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Film assets $ 16,881 $ 16,316 $ 8,838 Property, plant and equipment: Equipment supporting joint revenue sharing arrangements 22,165 22,320 24,930 Other property, plant and equipment (1) 9,757 9,479 11,225 Other intangible assets (2) 6,103 6,079 6,565 Other assets (3) 1,755 1,888 1,146 Total $ 56,661 $ 56,082 $ 52,704 (1) Includes the amortization of laser projection systems, camera, and lens upgrades recorded in Research and Development on the Statements of Operations of $ 0.6 million in the year ended December 31, 2022 (2021 — $ 0.8 million; 2020 — $ 0.9 million). (2) Includes the amortization of licenses and intellectual property recorded in Research and Development on the Consolidated Statements of Operations of $ 1.3 million in the year ended December 31, 2022 (2021 — $ 1.3 million; 2020 — $ 1.3 million). (3) Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements. (d) Write-downs, including asset impairments Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Other assets (1) $ 4,470 $ — $ 1,151 Inventories (2) 741 890 3,632 Property, plant and equipment: Equipment supporting joint revenue sharing arrangements (3) 973 364 1,784 Other property, plant and equipment 57 217 174 Other intangible assets 87 142 184 Film assets (4) 848 151 10,804 $ 7,176 $ 1,764 $ 17,729 (1) In 2022 , the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020 , the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such write-downs including asset impairments were incurred in 2021. (2) In 2022 , the Company recorded write-downs of $ 0.9 million, net of a recovery of $ 0.2 million in Costs and Expenses Applicable to Technology Sales. The write-downs recorded during the year ended December 31, 2022 include $ 0.4 million related to excess and damaged inventory and $ 0.3 million recorded to reduce the carrying value of service parts held in Russia . For the years ended December 31, 2021 and 2020 , the Company recorded write-downs of $ 0.9 million and $ 3.6 million, respectively, in Costs and Expenses Applicable to Technology Sales to reduce the carrying value of excess inventory. (3) In 2022 , the Company recorded charges of $ 1.0 million ( 2021 — $ 0.4 million; 2020 — $ 1.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-downs of leased xenon-based digital systems which were taken out of service in connection with exhibitor customer upgrades to laser-based digital systems, as well as an IMAX System that was removed from its existing location. (4) In 2022 , the Company recorded impairment losses of $ 0.8 million ( 2021 — $ 0.2 million) related to the write-down of DMR and documentary film assets. In 2020, the Company recorded impairment losses of $ 10.8 million principally to write-down the carrying value of certain documentary, alternative content film assets and DMR related film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. (e) Significant non-cash investing activities Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Net increase (decrease) in accruals related to: Investment in equipment supporting joint revenue sharing arrangements $ 790 $ 1,009 $ ( 1,888 ) Acquisition of other intangible assets 30 ( 891 ) 792 Purchases of property, plant and equipment (1) 311 ( 188 ) 158 $ 1,131 $ ( 70 ) $ ( 938 ) (1) See Note 7 for supplemental disclosure of noncash leasing activities. (f) Significant non-cash financing activities In the fourth quarter of 2022, the Company recognized a $ 2.0 million liability related to repurchase of its common shares, which were not settled as of December 31, 2022 and were related on the Consolidated Balance Sheets within Accrued and Other Liabilities. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 21. Revenue from Contracts with Customers (a) Disaggregated Information About Revenue The following tables summarize the Company’s revenues by type and reportable segment for the years ended December 31, 2022, 2021, and 2020: Year Ended December 31, 2022 Revenue from Contracts with Customers (In thousands of U.S. Dollars) Fixed Variable Revenue from Lease Finance Income Total Technology sales IMAX Systems (1) $ 43,704 $ 7,268 $ 3,479 $ — $ 54,451 Joint Revenue Sharing Arrangements, fixed fees — — 4,804 — 4,804 Other Theater Business 6,255 — — — 6,255 All Other 3,546 102 — — 3,648 Sub-total 53,505 7,370 8,283 — 69,158 Image enhancement and maintenance services IMAX DMR — 94,867 — — 94,867 IMAX Maintenance 56,608 — — — 56,608 Film Distribution 554 2,598 — — 3,152 Film Post-Production 3,783 — — — 3,783 All Other 1,178 1,791 — — 2,969 Sub-total 62,123 99,256 — — 161,379 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 61,768 — 61,768 All Other — — 18 — 18 Sub-total — — 61,786 — 61,786 Finance income IMAX Systems — — — 8,482 8,482 Total $ 115,628 $ 106,626 $ 70,069 $ 8,482 $ 300,805 Year Ended December 31, 2021 Revenue from Contracts with Customers (In thousands of U.S. Dollars) Fixed Variable Revenue from Lease Finance Income Total Technology sales IMAX Systems (1) $ 37,900 $ 5,576 $ 11,392 $ — $ 54,868 Joint Revenue Sharing Arrangements, fixed fees — — 5,406 — 5,406 Other Theater Business 2,363 — — — 2,363 All Other 3,475 41 — — 3,516 Sub-total 43,738 5,617 16,798 — 66,153 Image enhancement and maintenance services IMAX DMR — 70,659 — — 70,659 IMAX Maintenance 53,339 — — — 53,339 Film Distribution 205 1,259 — — 1,464 Film Post-Production 4,260 — — — 4,260 All Other 377 1,049 — — 1,426 Sub-total 58,181 72,967 — — 131,148 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 46,184 — 46,184 All Other — — 606 — 606 Sub-total — — 46,790 — 46,790 Finance income IMAX Systems — — — 10,792 10,792 Total $ 101,919 $ 78,584 $ 63,588 $ 10,792 $ 254,883 Year Ended December 31, 2020 Revenue from Contracts with Customers (In thousands of U.S. Dollars) Fixed Variable Revenue from Lease Finance Income Total Technology sales IMAX Systems (1) $ 33,869 $ 5,799 $ 4,271 $ — $ 43,939 Joint Revenue Sharing Arrangements, fixed fees — — 2,056 — 2,056 Other Theater Business 1,666 — — — 1,666 All Other 1,957 110 — — 2,067 Sub-total 37,492 5,909 6,327 — 49,728 Image enhancement and maintenance services IMAX DMR — 28,265 — — 28,265 IMAX Maintenance 21,999 — — — 21,999 Film Distribution 3,000 1,841 — — 4,841 Film Post-Production 3,878 — — — 3,878 All Other — 335 — — 335 Sub-total 28,877 30,441 — — 59,318 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 17,841 — 17,841 Sub-total — — 17,841 — 17,841 Finance income IMAX Systems — — — 10,116 10,116 Total $ 66,369 $ 36,350 $ 24,168 $ 10,116 $ 137,003 (1) Includes revenues earned from sale and sales-type lease arrangements involving new and upgraded IMAX Systems, as well as the impact of renewals and amendments to existing system arrangements. (b) Deferred Revenue IMAX System sale and lease arrangements include a requirement for the Company to provide maintenance services over the life of the arrangement, subject to a consumer price index adjustment each year. In circumstances where customers prepay the entire term’s maintenance fee, additional payments are due to the Company for the years after its extended warranty and maintenance obligations expire. Payments upon renewal each year are either prepaid or made in arrears and can vary in frequency from monthly to annually. As of December 31, 2022, $ 21.0 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2021 — $ 20.2 million and 2020 — $ 21.6 million). Maintenance revenue is recognized evenly over the contract term which coincides with the period over which maintenance services are provided. In the event of customer default, any payments made by the customer may be retained by the Company. In instances where the Company receives consideration prior to satisfying its performance obligations, the recognition of revenue is deferred. The majority of the deferred revenue balance relates to payments received by the Company for IMAX Systems where control of the system has not transferred to the customer. The deferred revenue balance related to an individual system increases as progress payments are made and is then derecognized when control of the system is transferred to the customer. Recognition dates are variable and depend on numerous factors, including some outside of the Company’s control. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | 22. Segment Reporting The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM, along with other members of management, assess segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments. The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements (“JRSA”); (iii) IMAX Systems; (iv) IMAX Maintenance; (v) Other Theater Business; (vi) Film Distribution; and (vii) Film Post-Production. The Company's activities that do not meet the criteria to be considered a reportable segment are disclosed within All Other. The Company organizes its reportable segments into the following three categories , identified by the nature of the product sold or service provided : (i) IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR segment and contingent rent from the JRSA segment; (ii) IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment; and (iii) Film Distribution and Post-Production, which includes activities related to the distribution of large-format documentary films, primarily to institutional theaters, and the distribution of exclusive experiences ranging from live performances to interactive events with leading artists and creators (through the Film Distribution segment) and the provision of film post-production and quality control services. The Company presents its segment information at a disaggregated level to provide more relevant information to the users of its financial statements. Transactions between the IMAX DMR segment and the Film Post-Production segment are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. In the first quarter of 2022, the Company's internal reporting was updated to reclassify the results of IMAX Enhanced ® , an initiative to bring The IMAX Experience ® into the home, out of the New Business Initiatives segment and into All Other for segment reporting purposes. IMAX Enhanced was the only component of the New Business Initiatives segment. Prior period comparatives have been reclassified to conform with the current period presentation. In the first quarter of 2023, the Company has updated its internal reporting, including the information provided to the CODM to assess segment performance and allocate resources, and, as a result, will update its reportable segments in its quarterly report on Form 10-Q for the period ending March 31, 2023. Following these changes, the Company will have two reportable segments: (i) Technology Products and Services, which will principally include the sale, lease, and maintenance of IMAX Systems, previously included within the JRSA, IMAX Systems, IMAX Maintenance, Other Theater Business segments, and (ii) Content Solutions, which will principally include content enhancement and distribution services, previously included within the IMAX DMR, Film Distribution and Film Post-Production segments. The Company’s activities that do not meet the criteria to be considered a reportable segment will be reported within All Other. (a) Segment Financial Information The following table presents the Company’s revenue and gross margin (margin loss) by category and reportable segment for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, Revenue (1) Gross Margin (Margin Loss) (In thousands of U.S. Dollars) 2022 2021 2020 2022 2021 2020 IMAX Technology Network IMAX DMR $ 94,867 $ 70,659 $ 28,265 $ 57,964 $ 44,782 $ 13,731 JRSA, contingent rent 61,768 46,184 17,841 37,394 21,761 ( 9,500 ) 156,635 116,843 46,106 95,358 66,543 4,231 IMAX Technology Sales and Maintenance IMAX Systems (2) 62,933 65,660 54,055 35,129 34,981 24,816 JRSA, fixed fees 4,804 5,406 2,056 589 1,343 529 IMAX Maintenance 56,608 53,339 21,999 27,109 27,572 3,068 Other Theater Business (3) 6,255 2,363 1,666 807 398 ( 438 ) 130,600 126,768 79,776 63,634 64,294 27,975 Film Distribution and Post-Production Film Distribution (4) 3,152 1,464 4,841 ( 7,668 ) ( 1,121 ) ( 9,840 ) Post-Production 3,783 4,260 3,878 1,540 1,969 ( 358 ) 6,935 5,724 8,719 ( 6,128 ) 848 ( 10,198 ) Sub-total for reportable segments 294,170 249,335 134,601 152,864 131,685 22,008 All Other (5) 6,635 5,548 2,402 3,491 2,721 ( 468 ) Total $ 300,805 $ 254,883 $ 137,003 $ 156,355 $ 134,406 $ 21,540 The following table presents the Company’s assets by category and reportable segment, reconciled to consolidated assets, as of December 31, 2022 and 2021: As of December 31, (In thousands of U.S. Dollars) 2022 2021 IMAX Technology Network IMAX DMR $ 48,755 $ 48,299 JRSA, contingent rent 193,403 196,789 IMAX Technology Sales and Maintenance IMAX Systems 255,458 249,672 JRSA, fixed fees 26,574 27,930 IMAX Maintenance 48,764 38,530 Other Theater Business 110 82 Film Distribution and Post-Production Film Distribution 11,545 7,185 Post-Production 32,406 31,575 Sub-total for reportable segments 617,015 600,062 All Other (5) 29,686 1,420 Corporate and other non-segment specific assets 174,453 281,765 Total $ 821,154 $ 883,247 The following table presents the Company’s amortization by category and reportable segment, and on a consolidated basis, for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 IMAX Technology Network IMAX DMR $ 16,367 $ 15,917 $ 10,269 JRSA, contingent rent 23,920 24,208 26,076 IMAX Technology Sales and Maintenance IMAX Systems 169 2,076 3,548 IMAX Maintenance — — 213 Film Distribution and Post-Production Film Distribution 2,423 600 1,213 Post-Production — 924 1,281 Sub-total for reportable segments 42,879 43,725 42,600 All Other (5) 309 — 11 Corporate and other non-segment specific assets 13,473 12,357 10,093 Total $ 56,661 $ 56,082 $ 52,704 The following table presents the Company’s write-downs, including asset impairments and credit loss expense (reversal), by category and reportable segment, and on a consolidated basis, for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 IMAX Technology Network IMAX DMR $ 29 $ 151 $ 1,057 JRSA, contingent rent 973 364 1,784 IMAX Technology Sales and Maintenance IMAX Systems 150 837 2,872 IMAX Maintenance 591 53 510 Film Distribution and Post-Production Film Distribution (4) 819 — 9,997 Post-Production — — — Sub-total for reportable segments 2,562 1,405 16,220 All Other (5) — — 52 Corporate and other non-segment specific assets (6) 13,161 ( 3,592 ) 20,065 Total $ 15,723 $ ( 2,187 ) $ 36,337 The following table presents the Company’s purchases of fixed assets within the Consolidated Statements of Cash Flows by category and reportable segment for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 IMAX Technology Network IMAX DMR $ — $ — $ — JRSA, contingent rent 19,803 10,094 6,654 IMAX Technology Sales and Maintenance IMAX Systems 2,574 621 50 IMAX Maintenance 4 25 — Film Distribution and Post-Production Film Distribution 4,126 1,599 — Post-Production 1,195 609 456 Sub-total for reportable segments 27,702 12,948 7,160 All Other (5) 9 — — Corporate and other non-segment specific assets 516 736 191 Total $ 28,227 $ 13,684 $ 7,351 (1) The Company’s largest customer represents 12 % of total Revenues as of December 31, 2022 (2021 ― 10 % ; 2020 ― 16 % ). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2022 and 2021 . (2) The revenue from this segment includes the initial upfront payments and the present value of fixed minimum payments from sale and sales-type lease arrangements of IMAX Systems, as well as the present value of estimated variable consideration from sales of IMAX Systems. To a lesser extent, the revenue from this segment also includes finance income associated with these revenue streams. (3) The revenue from this segment principally includes after-market sales of IMAX projection system parts and 3D glasses. (4) For the year ended December 31, 2022 , the Company recorded an impairment loss of $ 0.8 million related to the write-down of documentary film assets. During the year ended December 31, 2020 , Film Distribution segment results were significantly influenced by impairment losses of $ 10.0 million, to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. No such impairment losses were incurred in 2021. (5) All Other includes the results from IMAX Enhanced, SSIMWAVE, and other ancillary activities. In the first quarter of 2022, the Company's internal reporting was updated to reclassify the results of IMAX Enhanced out of the New Business Initiatives segment into All Other for segment reporting purposes. Prior period comparatives have been revised to conform with the current period presentation. (See Note 5 for additional information related to the Company's acquisition of SSIMWAVE. ) (6) During the year ended December 31, 2022 , includes provision of current expected credit losses of $ 8.5 million ( 2021 ― net reversal of $ 4.0 million; 2020 ― provision of $ 18.6 million). (See Note 6 .) In 2022, the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020, the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such impairment losses were incurred in 2021. These amounts are excluded from the measurement of the Company’s segment performance. (b) Geographic Information Revenue by geographic area is based on the location of the customer. Revenue related to IMAX DMR is presented based upon the geographic location of the IMAX System that exhibit the remastered films. IMAX DMR revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the IMAX System. The following table summarizes the Company’s revenues by geographic area for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 United States $ 107,734 $ 73,499 $ 30,157 Greater China 73,330 112,801 52,331 Asia (excluding Greater China) 47,145 23,682 20,090 Western Europe 40,245 20,942 13,683 Latin America 9,418 3,601 6,114 Canada 7,550 3,266 1,365 Russia/the CIS & Ukraine (1) 2,849 7,308 2,927 Rest of the World 12,534 9,784 10,336 Total $ 300,805 $ 254,883 $ 137,003 (1) In addition to Russia, the CIS includes Azerbaijan, Belarus, Kazakhstan, and Kyrgyzstan. Commencing i n March 2022, in response to the ongoing conflict between Russia and Ukraine and resulting sanctions, the Company suspended its operations in Russia and Belarus. As of December 31, 2022, the IMAX network includes 54 systems in Russia, eight systems in Ukraine, and one system in Belarus. No single country in the Rest of the World, Western Europe, Latin America, and Asia (excluding Greater China) classifications comprise more than 10% of total revenue. The following table presents the breakdown of Property, Plant and Equipment by geography as of December 31, 2022 and 2021: As of December 31, (In thousands of U.S. Dollars) 2022 2021 United States $ 94,505 $ 91,856 Greater China 86,665 100,182 Canada 36,385 32,643 Western Europe 20,132 21,684 Asia (excluding Greater China) 10,471 9,463 Rest of the World 4,738 4,525 Total $ 252,896 $ 260,353 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 23. Financial Instruments (a) Financial Instruments The Company maintains cash with various major financial institutions. The Company’s cash is invested with highly rated financial institutions. The Company’s $ 97.4 million balance of cash and cash equivalents as of December 31, 2022 (December 31, 2021 — $ 189.7 million ) includes $ 79.7 million in cash held outside of Canada (December 31, 2021 — $ 102.1 million ), of which $ 43.7 million was held in the PRC (December 31, 2021 — $ 76.3 million ). (b) Fair Value Measurements The carrying values of the Company’s Cash and Cash Equivalents, Accounts Receivable, Accounts Payable, and Accrued Liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As of December 31, 2022 As of December 31, 2021 (In thousands of U.S. Dollars) Carrying Estimated Carrying Estimated Level 1 Cash and cash equivalents (1) $ 97,401 $ 97,401 $ 189,711 $ 189,711 Equity securities (2) 1,035 1,035 1,087 1,087 Level 2 Net financed sales receivables (3) $ 101,052 $ 100,059 $ 112,657 $ 112,662 Net investment in sales-type leases (3) 28,332 27,972 28,392 28,407 Equity securities (1) 1,000 1,000 1,000 1,000 COLI (4) 3,398 3,398 3,275 3,275 Foreign exchange contracts — designated forwards (2) ( 649 ) ( 649 ) 79 79 Wells Fargo Credit Facility borrowings (1) ( 25,000 ) ( 25,000 ) — — HSBC China Facility borrowings (1) ( 12,496 ) ( 12,496 ) — — Bank of China Facility borrowings (1) ( 374 ) ( 374 ) ( 3,612 ) ( 3,612 ) Federal Economic Development Loan (3) ( 1,782 ) ( 1,782 ) N/A N/A Convertible Notes (5) ( 230,000 ) ( 196,717 ) ( 230,000 ) ( 223,100 ) Level 3 Interest in film classified as a financial instrument (6) $ — $ — $ — $ — (1) Recorded at cost, which approximates fair value. (2) Fair value is determined using quoted prices in active markets. (3) Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms. (4) Measured at cash surrender value, which approximates fair value. (5) Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data. (6) Recorded at amortized cost less impairment losses. Inputs used in the calculation of estimated fair value include management's projection of future box office and ancillary receipts for the film net of distribution costs and other costs in accordance with the investment agreement. See 23 (e) below. (c) Foreign Exchange Risk Management The Company is exposed to market risk from changes in foreign currency rates. A majority of the Company’s revenues is denominated in U.S. Dollars while a significant portion of its costs and expenses is denominated in Canadian Dollars. A portion of the Company’s net U.S. Dollar cash is converted to Canadian Dollars to fund Canadian Dollar expenses through the spot market. In China and Japan, the Company has ongoing operating expenses related to its operations in RMB and Japanese Yen, respectively. Net cash flows are converted to and from U.S. Dollars through the spot market. The Company also has cash receipts under leases denominated in RMB, Japanese Yen, Canadian Dollars, and Euros which are converted to U.S. Dollars through the spot market. In addition, because IMAX films generate box office in 87 different countries, unfavorable exchange rates between applicable local currencies and the U.S. Dollar could have an impact on box office receipts and the Company’s revenues and results of operations. The Company’s policy is to not use any financial instruments for trading or other speculative purposes. The Company has entered into a series of foreign currency forward contracts to manage the risks associated with the volatility of foreign currencies. Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continue to meet hedge effectiveness tests as of December 31, 2022 (the “Foreign Currency Hedges”), with settlement dates throughout 2023 . Foreign currency derivatives are recognized and measured in the Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Consolidated Statements of Operations except for derivatives designated and qualifying as foreign currency cash flow hedging instruments. The Company currently has cash flow hedging instruments associated with Selling, General and Administrative Expenses. For foreign currency cash flow hedging instruments related to Selling, General and Administrative Expenses, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in Accumulated Other Comprehensive (Loss) Income and reclassified to the Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Consolidated Statements of Operations. The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Consolidated Financial Statements: Notional value of foreign exchange contracts : As of December 31, (In thousands of U.S. Dollars) 2022 2021 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 24,707 $ 26,702 Fair value of derivatives in foreign exchange contracts : As of December 31, (In thousands of U.S. Dollars) Balance Sheet Location 2022 2021 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 50 $ 184 Accrued and other liabilities ( 699 ) ( 105 ) $ ( 649 ) $ 79 Derivatives in foreign currency hedging relationships are as follows : Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Foreign exchange contracts Derivative (Loss) Gain — Forwards Recognized in OCI (Effective Portion) $ ( 1,323 ) $ 468 $ 550 Location of Derivative (Loss) Gain Reclassified from AOCI Years Ended December 31, (In thousands of U.S. Dollars) (Effective Portion) 2022 2021 2020 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ ( 596 ) $ 1,707 $ ( 578 ) Inventories — — ( 26 ) $ ( 596 ) $ 1,707 $ ( 604 ) Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Foreign exchange contracts Derivative Gain Recognized — Forwards In and out of OCI (Effective Portion) $ — $ — $ 17 Non-designated derivatives in foreign currency relationships are as follows : Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Foreign exchange contracts Derivative Gain Reclassified — Forwards From AOCI (Ineffective Portion) $ — $ ( 318 ) $ — Years Ended December 31, (In thousands of U.S. Dollars) Location of Derivative Gain 2022 2021 2020 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ — $ 398 $ 344 The Company's estimated net amount of the existing loss as of December 31, 2022 is $ ( 0.6 ) million , which is expected to be reclassified to earnings within the next twelve months. (d) Investments in Equity Securities As of December 31, 2022, the Consolidated Balance Sheets includes $ 1.0 million (December 31, 2021 — $ 1.1 million ) of investments in equity securities. On January 17, 2019, IMAX China (Hong Kong), Limited, a wholly-owned subsidiary of IMAX China, as an investor entered into a cornerstone investment agreement with Maoyan Entertainment (“Maoyan”) (as the issuer) and Morgan Stanley Asia Limited (as a sponsor, underwriter and the underwriters’ representative). Pursuant to this agreement, IMAX China (Hong Kong), Limited agreed to invest $ 15.2 million to subscribe for a certain number of shares of Maoyan at the final offer price pursuant to the global offering of the share capital of Maoyan, and this investment would be subject to a lock-up period of six months following the date of the global offering. On February 4, 2019, Maoyan completed its global offering, upon which, IMAX China (Hong Kong), Limited became a less than 1 % shareholder in Maoyan. In February 2021, IMAX China (Hong Kong), Limited sold all of its 7,949,000 shares of Maoyan for gross proceeds of $ 17.8 million, and recognized $ 5.2 million gain in the Consolidated Statements of Operations. The Company has an investment of $ 1.0 million (December 31, 2021 — $ 1.0 million ) in the shares of an exchange traded fund. This investment is classified as an equity investment. As of December 31, 2022, the Company held investments in the preferred shares of enterprises which meet the criteria for classification as an equity security carried at historical cost, net of impairment charges. The carrying value of these equity security investments was $ 1.0 million as of December 31, 2022 (December 31, 2021 — $ 1.0 million ) and is recorded in Other Assets. (e) Interest in Film On January 10, 2022, IMAX (Shanghai) Culture and Technology Co., Ltd, a wholly-owned subsidiary of IMAX China, entered into a joint film investment agreement with Wanda Film (Horgos) Co. Ltd. to invest RMB 30.0 million ($ 4.7 million) in the movie Mozart from Space , which was released on July 15, 2022. Pursuant to the investment agreement, IMAX (Shanghai) Culture and Technology Co., Ltd. has the right to receive a share of the profits or losses of the film distribution. IMAX (Shanghai) Culture and Technology Co., Ltd.'s commitment is limited to its investment and has no further obligation if the actual movie production cost exceeds the original budget. The investment meets the criteria for classification as a financial asset. The investment is measured at amortized cost less impairment losses and is recorded within Other Assets in the Consolidated Balance Sheets. During the second quarter of 2022 , the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in Mozart from Space based on projected box office results and distribution costs. |
Employees Pension and Postretir
Employees Pension and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employees Pension and Postretirement Benefits | 24. Employee's Pension and Postretirement Benefits (a) Defined Benefit Plan The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP” ), covering its CEO, Richard L. Gelfond. Under the terms of the SERP, if Mr. Gelfond's employment is terminated other than for cause (as defined in his employment agreement), he is entitled to receive SERP benefits in the form of a lump sum payment. SERP benefit payments to Mr. Gelfond are subject to a deferral for six months after the termination of his employment, at which time Mr. Gelfond will be entitled to receive interest on the deferred amount credited at the applicable federal rate for short-term obligations. Pursuant to an amendment to his employment agreement dated September 19, 2022, the term of Mr. Gelfond's employment was extended through December 31, 2025, although Mr. Gelfond has not informed the Company that he intends to retire at that time. Under the terms of his employment agreement, as amended, the total benefit payable to Mr. Gelfond under the SERP is fixed at $ 20.3 million. As of December 31, 2022 and 2021, the projected benefit obligation for SERP are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 Projected benefit obligation: Obligation, beginning of period $ 20,056 $ 20,116 Interest cost 160 72 Actuarial gain ( 2,901 ) ( 132 ) Obligation, end of period and unfunded status $ 17,315 $ 20,056 As of December 31, 2022, 2021, and 2020, the following amounts related to the SERP were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income and will be recognized as components of net periodic benefit cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized actuarial gain $ ( 3,580 ) $ ( 679 ) $ ( 547 ) Unamortized prior service cost — 184 369 Net periodic benefit costs to be recognized in future periods $ ( 3,580 ) $ ( 495 ) $ ( 178 ) For the years ended December 31, 2022, 2021, and 2020, the components of pension expense related to the SERP were as follows: Years ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Interest cost $ 160 $ 72 $ 379 Amortization of prior service cost 184 185 87 Pension expense $ 344 $ 257 $ 466 The following assumptions were used to determine the SERP obligation and any related costs as of and for the years ended December 31, 2022, 2021, and 2020: As of December 31, 2022 2021 2020 Discount rate 4.55 % 0.80 % 0.36 % Lump sum interest rate: First 25 years N/A N/A N/A First 20 years N/A N/A N/A Thereafter N/A N/A N/A Cost of living adjustment on benefits N/A N/A N/A No contributions were made for the SERP during 2022. The Company expects interest costs of $ 0.8 million to be recognized as a component of pension cost for the year ended December 31, 2023. (b) Defined Contribution Pension Plan The Company also maintains defined contribution plans for its employees, including its executive officers. The Company makes contributions to these plans on behalf of employees in an amount up to 5 % of their base salary subject to certain prescribed maximums. During 2022, the Company contributed and recorded expense of $ 1.1 million (2021 — $ 1.1 million ; 2020 — $ 1.1 million ) to its Canadian plan and $ 0.7 million (2021 — $ 0.5 million ; 2020 — $ 0.6 million ) to its defined contribution employee plan under Section 401(k) of the U.S. Internal Revenue Code. (c) Postretirement Benefits - Executives The Company has an unfunded postretirement plan for Mr. Gelfond and Bradley J. Wechsler, former Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”). The Executive Postretirement Benefit Plan provides that the Company will maintain health benefits for Messrs. Gelfond and Wechsler until they become eligible for Medicare and, thereafter, the Company will provide Medicare supplemental coverage as selected by Messrs. Gelfond and Wechsler. Mr. Wechsler retired from the Company’s Board of Directors on June 9, 2021. The Company maintained Mr. Wechsler’s health benefits through December 31, 2021, and thereafter is providing him with Medicare supplemental coverage or its equivalent value. As of December 31, 2022 and 2021, the Company’s Consolidated Balance Sheets include the following amounts within Accrued and Other Liabilities related to the Executive Postretirement Benefit Plan: As of December 31, (In thousands of U.S. Dollars) 2022 2021 Projected benefit obligation: Obligation, beginning of year $ 662 $ 710 Interest cost 18 16 Benefits paid ( 8 ) ( 16 ) Actuarial gain ( 215 ) ( 48 ) Obligation, end of year and unfunded status $ 457 $ 662 For the years ended December 31, 2022, 2021, and 2020, the components of pension expense related to the Executive Postretirement Benefit Plan were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Interest cost $ 18 $ 16 $ 20 Amortization of actuarial gain — — ( 17 ) Pension expense $ 18 $ 16 $ 3 As of December 31, 2022, 2021, and 2020, the following amounts related to the Executive Postretirement Benefit Plan were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income and will be recognized as components of net pension cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized actuarial (gain) loss $ ( 242 ) $ ( 27 ) $ 21 As of December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the benefit obligation related to the Executive Postretirement Benefit Plan are as follows: As of December 31, 2022 2021 2020 Discount rate 5.01 % 2.71 % 2.36 % For the years ended December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the net postretirement benefit expense related to the Executive Postretirement Benefit Plan are as follows: Years Ended December 31, 2022 2021 2020 Discount rate 2.71 % 2.36 % 3.13 % The following benefit payments are expected to be made as per the current plan assumptions for the Executive Postretirement Benefit Plan in each of the next five years and thereafter following the December 31, 2022 balance sheet date: (In thousands of U.S. Dollars) 2023 $ 10 2024 10 2025 11 2026 23 2027 24 Thereafter 888 Total $ 966 (d) Postretirement Benefits – Canadian Employees The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements (the “Canadian Postretirement Benefit Plan”). The Company will provide eligible participants, upon retirement, with health and welfare benefits. As of December 31, 2022 and 2021, the Company’s Consolidated Balance Sheets include the following amounts within Accrued and Other Liabilities related to the Canadian Postretirement Benefit Plan: As of December 31, (In thousands of U.S. Dollars) 2022 2021 Projected benefit obligations: Obligation, beginning of year $ 1,702 $ 1,862 Interest cost 46 42 Benefits paid ( 155 ) ( 118 ) Actuarial gain ( 539 ) ( 92 ) Unrealized foreign exchange (gain) loss ( 78 ) 8 Obligation, end of year and unfunded status $ 976 $ 1,702 For the years ended December 31, 2022, 2021, and 2020, the components of pension expense related to the Canadian Postretirement Benefit Plan were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Interest cost $ 46 $ 42 $ 47 Pension expense $ 46 $ 42 $ 47 The Company expects interest costs of less than $ 0.1 million to be recognized as a component of benefit cost for the year ended December 31, 2023. As of December 31, 2022, 2021, and 2020, the following amounts related to the Canadian Postretirement Benefit Plan were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income and will be recognized as components of net pension cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized actuarial (gain) loss $ ( 354 ) $ 185 $ 277 As December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the benefit obligation related to the Canadian Postretirement Benefit Plan are as follows: As of December 31, 2022 2021 2020 Discount rate 5.00 % 2.80 % 2.30 % For the years ended December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the net postretirement benefit expense related to the Canadian Postretirement Benefit Plan are as follows: Years Ended December 31, 2022 2021 2020 Discount rate 2.80 % 2.30 % 3.05 % The following benefit payments are expected to be made as per the current plan assumptions for the Canadian Postretirement Benefit Plan in each of the next five years and thereafter following the December 31, 2022 balance sheet date: (In thousands of U.S. Dollars) 2023 $ 94 2024 94 2025 95 2026 87 2027 86 Thereafter 1,082 Total $ 1,538 (e) Deferred Compensation Benefit Plan The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein). In 2018, the executive incurred a separation from service from the Company, and as such, the Retirement Plan benefits became fully vested as of December 31, 2018. As of December 31, 2022, the benefit obligation related to the Retirement Plan was $ 3.9 million (December 31, 2021 — $ 3.8 million ) and is recorded on the Company’s Consolidated Balance Sheets within Accrued and Other Liabilities. As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Consolidated Statements of Operations within Retirement Benefits Non-Service Expense. The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Consolidated Balance Sheets within Prepaid Expenses. As of December 31, 2022, fair value of the COLI asset was $ 3.4 million (December 31, 2021 — $ 3.3 million ). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Consolidated Statements of Operations within Realized and Unrealized Investment Gains (Losses). |
Government Assistance
Government Assistance | 12 Months Ended |
Dec. 31, 2022 | |
Government Assistance [Abstract] | |
Government Assistance | 25. Government Assistance (a) COVID-19 Relief The Company has applied for and received financial support under COVID relief legislation that has been enacted in the countries in which it operates. For the year ended December 31, 2022 , the Company recognized $ 0.4 million ( 2021 — $ 3.8 million; 2020 — $ 7.1 million) in benefits principally from the Hardest-Hit Businesses Recovery program, and recorded such amounts as reductions to Selling, General and Administrative Expenses ($ 0.3 million) and Costs and Expenses Applicable to Revenues ($ 0.1 million). For the years ended December 31, 2021 and 2020, the Company recognized $ 3.8 million and $ 7.1 million, respectively, in benefits from various COVID-19 government relief programs, and recorded such amounts as reductions to Selling, General and Administrative Expenses ($ 2.9 million and $ 6.0 million, respectively), Costs and Expenses Applicable to Revenues ($ 0.9 million and $ 1.0 million, respectively) and Research and Development ($ nil and $ 0.1 million, respectively). These benefits are principally under the Canada Emergency Wage Subsidy program (“CEWS” program), which expired in October 2021. (b) Federal Economic Development Loan SSIMWAVE entered into a contribution agreement with the Federal Economic Development Agency for Southern Ontario (the “Federal Economic Development Loan” on May 29, 2019, under which SSIMWAVE may receive up to $ 4.2 million CAD ($ 3.1 million) by way of repayable contributions toward certain eligible projects costs. The contributions under the agreement cover 35 % of the eligible and supported costs of SSIMWAVE between January 10, 2019 and December 31, 2022. The contributions are repayable over 60 months , with repayments estimated to begin in January 2024 , with an annual interest rate of 0 %. As of December 31, 2022, SSIMWAVE has received contributions of CAD $ 3.8 million ( $ 2.8 million ) from the Federal Economic Development Loan. As of December 31, 2022, the Federal Economic Development Loan has a carrying value of $ 1.8 million , net of unaccreted interest benefit and is recorded within Convertible Notes and Other Borrowings, Net on the Company's Consolidated Balance Sheets. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Non-Controlling Interests | 26. Non-Controlling Interests (a) IMAX China Non-Controlling Interest As of December 31, 2022, the Company indirectly owns 71.73 % of IMAX China, whose shares trade on the Hong Kong Stock Exchange (December 31, 2021 — 71.11 % ). IMAX China remains a consolidated subsidiary of the Company. The balance of non-controlling interest in IMAX China as of December 31, 2022 is $ 65.7 million (December 31, 2021 — $ 73.5 million). The net income attributable to non-controlling interest of IMAX China for the year ended December 31, 2022 is $ 3.0 million (2021 — income of $ 12.8 million ; 2020 — loss of $( 8.6 ) million ). (b) Other Non-Controlling Interests The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed by a third party in the amount of $ 25.0 million, with the possibility of contributing additional funds. The Company has contributed $ 9.0 million to the Original Film Fund since 2014, and has reached its maximum contribution. Through December 31, 2022, the Original Film Fund has invested $ 22.3 million toward the development of original films. The related production, financing and distribution agreement includes put and call rights relating to change of control of the rights, title and interest in the co-financed pictures. (c) Non-Controlling Interest in Temporary Equity The following summarizes the movement of the non-controlling interest in temporary equity, in the Original Film Fund for the years ended December 31, 2022, 2021 and 2020: (In thousands of U.S. Dollars) Balance as of January 1, 2020 $ 5,908 Return of capital to non-controlling interests ( 10 ) Net loss ( 5,139 ) Balance as of December 31, 2020 759 Net loss ( 1 ) Balance as of December 31, 2021 758 Net loss ( 36 ) Balance as of December 31, 2022 $ 722 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | (a) Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has evaluated its various variable interests to determine whether they are VIEs as required by U.S. GAAP. The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of and consolidates five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in Note 26 (b). The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which are not material to the Company’s Consolidated Financial Statements. A loss in value of an equity method investment that is other than temporary is recognized as a charge in the Consolidated Statements of Operations. As of December 31, 2022 and 2021, total assets and liabilities of the Company's consolidated VIEs are as follows: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Total assets $ 1,523 $ 1,576 Total liabilities $ 248 $ 259 |
Estimates and Assumptions | (b) Estimates and Assumptions The preparation of financial statements and related disclosures in accordance with U.S. GAAP requires management to make judgments, assumptions, and estimates that affect the amounts reported in the Company’s Consolidated Financial Statements and accompanying notes. Management’s judgments, assumptions, and estimates are based on historical experience, future expectations and other factors that are believed to be reasonable as of the date of the Consolidated Financial Statements. Actual results may ultimately differ from management’s original estimates, as future events and circumstances sometimes do not develop as expected, and the differences may be material. Significant estimates made by management include, but are not limited to: (i) the allocation of the transaction price in an IMAX System arrangement to distinct performance obligations; (ii) the amount of variable consideration to be earned on sales of IMAX Systems based on projections of future box office performance; (iii) expected credit losses on accounts receivable, financing receivables, and variable consideration receivables; (iv) provisions for the write-down of excess and obsolete inventory; (v) the fair values of the reporting units used in assessing the recoverability of goodwill; (vi) the cash flow projections used in testing the recoverability of long-lived assets such as the theater system equipment supporting joint revenue sharing arrangements; (vii) the economic lives of the theater system equipment supporting joint revenue sharing arrangements; (viii) the useful lives of intangible assets; (ix) the ultimate revenue forecasts used to test the recoverability of film assets; (x) the discount rates used to determine the present value of financing receivables and lease liabilities, as well as to determine the fair values of the Company’s reporting units for the purpose of assessing the recoverability of goodwill; (xi) pension plan assumptions; (xii) estimates related to the fair value and projected vesting of share-based payment awards; (xiii) the valuation of deferred income tax assets; (xiv) reserves related to uncertain tax positions; and (xv) the allocation of the purchase price for the acquisition of SSIMWAVE Inc. and its wholly-owned subsidiary (together, “SSIMWAVE”). The COVID-19 pandemic and the measures to prevent its spread have impacted the Company’s business and the global economy, as described in Note 2. Although management is encouraged by the broad reopening of the IMAX network, the continued progress towards the resumption of normal theater operations, normal film release schedules, and recent box office results, there continues to be risk and uncertainty relating to the judgments, assumptions, and estimates used by management in preparing the Company's Consolidated Financial Statements. Commencing in March 2022, in response to numerous sanctions imposed by the United States, Canada and the European Union on companies transacting in Russia and Belarus resulting from ongoing conflict between Russia and Ukraine, the Company suspended its operations in Russia and Belarus. As of December 31, 2022 , the IMAX network includes 54 systems in Russia, eight systems in Ukraine, and one system in Belarus, and the Company's backlog includes 14 systems in Russia, one system in Ukraine, and five systems in Belarus with a total fixed contracted value of $ 22.9 million. In the first quarter of 2022, the Company recorded provisions for potential credit losses against substantially all of its receivables in Russia due to uncertainties associated with the ongoing conflict and resulting sanctions. These receivables relate to existing sale agreements as the Company is not party to any joint revenue sharing arrangements in these countries. In addition, beginning in the first quarter of 2022, exhibitors in Russia, Ukraine, and Belarus were placed on nonaccrual status for maintenance revenue and finance income. Most multiplexes in Ukraine have reopened since the conflict began and the Company remains optimistic that its full network in Ukraine will ultimately resume operations. The Company continues to closely monitor the evolving impacts of this conflict (including the sanctions imposed by the United States, Canada and the European Union) and its effects on the global economy and the Company. (See Note 6 for more information on the impact of the ongoing Russia-Ukraine conflict and resulting sanctions on the Company's receivables and current expected credit losses.) On September 7, 2022, Cineworld Group plc (“Cineworld”), the parent company of Regal, and certain of its subsidiaries and Regal CineMedia Holdings, LLC, filed petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Southern District of Texas. The Company had an unsecured pre-petition claim of $ 11.4 million related to receivables from the entities included in the reorganization proceedings. On October 21, 2022, the Company was ratified by the bankruptcy court as a critical vendor of Cineworld, allowing the Company to collect pre-petition amounts owed to it by Cineworld, and requiring Cineworld to stay current on the Company’s post-petition receivables. On November 8, 2022, IMAX Corporation entered into a trade agreement with Cineworld (the “Trade Agreement”), pursuant to which Cineworld affirmed the amount of the receivables owed to the Company and agreed to a payment plan under which all amounts due will be settled over the period from November 9, 2022 to April 12, 2023. As of February 20, 2023, the Company had received payments of $ 7.2 million from Cineworld in accordance with the terms of the Trade Agreement. Based on its evaluation of its contracts with Cineworld, its assessment of the reorganization and its discussions with Cineworld to date, the Company has determined that no additional provision for expected credit losses is required. The Company also does not expect to see a material impact on its IMAX network with Cineworld resulting from this reorganization. There can, however, be no guarantees as to the ultimate outcome of a Chapter 11 proceeding. |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents The Company considers all highly liquid investments convertible to a known amount of cash and with an original maturity of three months or less to be cash equivalents. |
Receivable | (d) Receivables The Company develops an estimate of expected credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after considering management’s internal credit quality classifications, as well as macro-economic and industry risk factors. The write-off of any billed receivable balance requires the approval of management. (See Note 6 for more information related to the Company’s receivables and current expected credit losses.) |
Inventories | (e) Inventories Inventories are carried at the lower of cost, determined on an average cost basis, and net realizable value except for raw materials, which are carried at the lower of cost and replacement cost. Finished goods and work-in-process includes the cost of raw materials, direct labor, theater design costs, and an applicable share of manufacturing overhead costs. The costs related to IMAX Systems under sale and sales-type lease arrangements are transferred from Inventories to Costs and Expenses Applicable to Revenues – Technology Sales in the period when the sale is recognized in the Consolidated Statements of Operations. The costs related to IMAX Systems under joint revenue sharing arrangements are transferred from Inventories to assets under construction in Property, Plant and Equipment when allocated to a signed joint revenue sharing arrangement. The Company records write-downs for excess and obsolete inventory based upon management’s judgments regarding future events and business conditions, including the anticipated installation dates for the current backlog of theater system contracts, contracts in negotiation, technological developments, growth prospects within the customers’ ultimate marketplace and anticipated market acceptance of the Company’s current and pending theater IMAX Systems. Finished goods inventories includes IMAX Systems for which title has passed to the Company’s customer in situations when the IMAX System has been delivered to the customer, but the criteria for revenue recognition were not met as of the balance sheet date. |
Film Assets | (f) Film Assets Film Assets consist of: (i) capitalized costs associated with the digital remastering of films where the copyright is owned by a third party, including labor and allocated overhead, and (ii) capitalized costs associated with the production of films, including labor, allocated overhead, and the cost of acquiring film rights. Production financing provided by third parties that acquire substantive rights in the film is recorded as a reduction of the cost of the film. Capitalized film costs are amortized and participation costs are accrued to Costs and Expenses Applicable to Revenues using the individual-film-forecast method, which amortizes such costs in the same ratio as the associated ultimate revenue. Estimates of ultimate revenues are prepared on a title-by-title basis and reviewed regularly by management and revised where necessary to reflect the most current information. Ultimate revenues reflect management’s estimates of future revenue over a period not to exceed ten years following the date of the film’s initial release. The recoverability of the Company’s film assets is dependent upon the commercial acceptance of the underlying films and the resulting level of box office results and, in certain situations, ancillary revenues. If management’s projections of future net cash flows resulting from the exploitation of a film indicate that the carrying value of the film asset is not recoverable, the film asset is written down to its fair value. Film exploitation costs, including advertising and marketing, are recorded in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services as incurred, except for those costs that are made after recognizing revenue, which are recorded when the related revenues are recognized. |
Property, Plant and Equipment | (g) Property, Plant and Equipment Property, Plant and Equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of the underlying assets as follows: Theater system components (1) — Over the equipment’s expected useful life ( 7 to 20 years) Camera equipment — Over a period between 5 to 10 years Buildings — Over a period between 20 to 25 years Office and product equipment — Over a period between 3 to 5 years Leasehold improvements — Over the shorter of the initial term of the underlying lease plus any reasonably assured renewal periods, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. The cost of IMAX System components and related equipment expected to be used in future joint revenue sharing arrangements, including related direct labor costs and an allocation of direct production costs, are recorded within assets under construction until the underlying IMAX System is installed and in working condition. These assets are depreciated to Costs and Expenses Applicable to Revenues on a straight-line basis over the lesser of the term of the joint revenue sharing arrangement and the equipment’s expected useful life. The estimated useful lives of the system components and related equipment used in joint revenue sharing arrangements are reviewed periodically to determine if any adjustments are required. Property, Plant and Equipment is grouped at the lowest level for which identifiable cash flows are largely independent and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, the asset (or asset group) is considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating such assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used. |
Investment in Equity Securities | (h) Investment in Equity Securities Equity securities with readily determinable fair values are reported at fair value with changes in fair value recorded within Realized and Unrealized Investment Gains (Losses) in the Consolidated Statements of Operations. |
Other Assets | (i) Other Assets Other Assets principally includes lease incentives provided to certain exhibitor customers under joint revenue sharing arrangements classified as an operating lease, as well as sales commissions and other deferred selling expenses that directly relate to the acquisition of the revenue generating contract and are incremental to the Company’s other expenses. To a much lesser extent, Other Assets also includes various investments and foreign currency derivatives. Capitalized lease incentives are amortized on a straight-line basis over the term of the lease as a reduction to rental revenue. Sales commissions and other selling expenses paid prior to the recognition of the related revenue are deferred and recognized within Costs and Expenses Applicable to Revenues upon the client acceptance of the IMAX System or the abandonment of the sale arrangement. Foreign currency derivatives are accounted for at fair value using quoted prices in active markets. In periods when there are no outstanding borrowings under the Company’s revolving credit facility arrangements, any related debt issuance costs are recorded within Other Assets and amortized on a straight-line basis over the term of the facility. In periods when there are outstanding borrowings under the Company’s revolving credit facility arrangements, any related debt issuance costs are reclassified to reduce the principal amount of outstanding borrowings and amortized on a straight-line basis over the term of the facility. (See Note 15 for information related to the Company’s borrowings.) |
Goodwill | (j) Goodwill Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but is tested annually for impairment at the reporting unit level in the fourth quarter of the year and between annual tests if indicators of potential impairment exist. These indicators could include a decline in the Company’s stock price and market capitalization, a significant change in the outlook for the reporting unit's business, including projections of future box office results and IMAX System installations, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a reporting unit. For reporting units with goodwill, an impairment loss is recognized for the amount by which the reporting unit's carrying value, including goodwill, exceeds its fair value. The carrying value of each reporting unit is based on a systematic and rational allocation of certain assets and liabilities. The fair value of each reporting unit is assessed using a discounted cash flow model based on management’s current short-term forecast and estimated long-term projections, against which various sensitivity analyses are performed. The discount rates used in the cash flow model are derived based on the Company’s estimated weighted average cost of capital. These estimates and the likelihood of future changes in these estimates depend on a number of underlying variables and a range of possible outcomes. |
Other Intangible Assets | (k) Other Intangible Assets Other intangible assets with finite lives are generally amortized on a straight-line basis over estimated useful lives ranging from 4 to 20 years, except for intangible assets that have an identifiable pattern of consumption of the economic benefit of the asset. Such intangible assets are amortized over the consumption pattern. Research and development acquired in a business combination is measured at fair value using market-participant assumptions and is initially classified as an indefinite-lived intangible asset. The in-process intangible research and development (IPR&D) assets are considered indefinite-lived until the abandonment or completion of the associated research and development efforts. If the acquired IPR&D project is abandoned, the related intangible would be written off or impaired. Once the IPR&D activities are completed, management would determine the useful lives and the methods of amortization of the related intangible assets. The Company capitalizes costs associated with internally developed and/or purchased software systems for internal use that have reached the application development stage. Capitalized costs include external direct costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related expenses for employees who are directly associated with and devote time to the internal-use software project. Capitalization of such costs begins when the preliminary project stage is complete and ceases no later than the point at which the project is substantially complete and ready for its intended purpose. Costs incurred during the preliminary project and post-implementation stages are charged to expense. These capitalized costs are amortized on a straight-line basis over the estimated useful life. Intangible Assets are grouped at the lowest level for which identifiable cash flows are largely independent and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. In such situations, the asset (or asset group) is considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset (or asset group) and its eventual disposition are less than the carrying value of the asset (or asset group). In such situations, the asset (or asset group) is written down to its fair value, which is the present value of the estimated future cash flows. Factors that are considered when evaluating intangible assets for impairment include a current expectation that it is more likely than not that the intangible asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the intangible asset, and a significant change in the extent or manner in which the intangible asset is being used. |
Deferred Revenue | (l) Deferred Revenue In instances where the Company receives consideration prior to satisfying its performance obligations, the recognition of revenue is deferred. The majority of the Deferred Revenue balance relates to payments received by the Company for IMAX Systems where control of the system has not transferred to the customer. The Deferred Revenue balance related to an individual location increases as progress payments are made and is then derecognized when control of the system is transferred to the customer. To a lesser extent, the Deferred Revenue balance also relates to situations when an exhibitor customer pays the contractual maintenance fee prior to the recognition of revenue. |
Statutory Surplus Reserve | (m) Statutory Surplus Reserve Pursuant to the corporate law of the People’s Republic of China (the “PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits, after offsetting accumulated losses from prior years, before dividends can be declared or paid to equity holders. The Company’s PRC subsidiaries are required to appropriate 10 % of statutory net profits to statutory surplus reserves, upon distribution of their after-tax profits. The Company’s PRC subsidiaries may discontinue the appropriation of statutory surplus reserves when the aggregate sum of the statutory surplus reserve is more than 50 % of their registered capital. The statutory surplus reserve is non-distributable other than during liquidation and may only be used to fund losses from prior years, to expand production operations, or to increase the capital of the subsidiaries. In addition, the subsidiaries may make further contribution to a discretionary surplus reserve using post-tax profits in accordance with resolutions of the Board of Directors. |
Income Taxes | (n) Income Taxes Income taxes are accounted for under the liability method whereby deferred income tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the accounting and tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or laws is recognized in the Company’s Consolidated Financial Statements in the period in which the change is enacted. Investment tax credits are recognized as a reduction of income tax expense. The Company assesses the realization of deferred income tax assets and based on all available evidence, concludes whether it is more likely than not that the net deferred income tax assets will be realized. A valuation allowance is provided for the amount of deferred income tax assets not considered to be realizable in the current period. In assessing the need for a valuation allowance, management considers, among other things, projections of future taxable income and ongoing prudent and feasible tax planning strategies. If management determines that sufficient negative evidence exists, then management will consider recording a valuation allowance against a portion or all of the deferred tax assets in that jurisdiction. If, after recording a valuation allowance, management’s projections of future taxable income and other positive evidence considered in evaluating the need for a valuation allowance prove, with the benefit of hindsight, to be inaccurate, it could prove more difficult to support the realization of these deferred tax assets. As a result, an additional valuation allowance could be required, which would have an adverse impact on the Company’s effective income tax rate and results. Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which a valuation allowance is recorded, the Company may reverse all or a portion of the valuation allowance in that jurisdiction. In such situations, the adjustment made to the deferred tax asset would have a favorable impact on the Company’s effective income tax rate and results in the period such determination was made. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Tax benefits are recognized only when it is more likely than not, based on the technical merits, that the benefits will be sustained on examination. Tax benefits that meet the more likely than not recognition threshold are measured using a probability weighting of the largest amount of tax benefit that has greater than 50% likelihood of being realized upon settlement. Whether the more likely than not recognition threshold is met for a particular tax benefit is a matter of judgment based on the individual facts and circumstances evaluated in light of all available evidence as of the balance sheet date. Although management believes that the Company has adequately accounted for its uncertain tax positions, tax audits can result in subsequent assessments where the ultimate resolution may result in the Company owing additional taxes above what was originally recognized in its financial statements. Tax reserves for uncertain tax positions are adjusted by the Company to reflect its best estimate of the outcome of examinations and assessments and in light of changing facts and circumstances, such as the completion of a tax audit, expiration of a statute of limitations, the refinement of an estimate, and interest accruals associated with the uncertain tax positions until they are resolved. Some of these adjustments require significant judgment in estimating the timing and amount of the additional tax expense. |
Revenue Recognition | (o) Revenue Recognition IMAX Systems The Company evaluates each of the performance obligations in an IMAX System arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate performance obligations. The Company’s “System Obligation” consists of the following: (i) an IMAX System, which includes the projector, sound system, screen system and, if applicable, a 3D glasses cleaning machine; (ii) services associated with the IMAX System, including theater design support, the supervision of installation services, and projectionist training; and (iii) a license to use the IMAX brand to market the theater. The System Obligation, as a group, is a distinct performance obligation. The Company is not responsible for the physical installation of the equipment in the customer’s facility; however, it supervises the installation by the customer. The customer has the right to use the IMAX brand from the date the Company and the customer enter into an arrangement. IMAX System arrangements also include a requirement for the Company to provide maintenance services and an extended warranty over the life of the arrangement in exchange for an annual maintenance fee, which is subject to a consumer price index increase on renewal each year. Consideration related to the provision of maintenance services is included in the allocation of the transaction price to the separate performance obligations in the arrangement at contract inception, as discussed in more detail below. The Company’s maintenance services are a stand ready obligation and, as a result, are recognized on a straight-line basis over the contract term. The transaction price in an IMAX System arrangement is allocated to each good or service that is identified as a separate performance obligation based on estimated standalone selling prices. This allocation is based on observable prices when the Company sells the goods or services separately. The Company has established standalone prices for the System Obligation and maintenance and extended warranty services, as well as for film license arrangements. The Company uses an adjusted market assessment approach for separate performance obligations that do not have standalone selling prices or third-party evidence of estimated standalone selling prices. The Company considers multiple factors including its historical pricing practices, product class, market competition and geography. IMAX System arrangements involve either the lease or the sale of an IMAX System. The transaction price for the System Obligation, other than for IMAX Systems delivered pursuant to joint revenue sharing arrangements, consist of upfront or initial payments made before and after the final installation of the system and ongoing payments throughout the term of the arrangement. The Company estimates the transaction price, including an estimate of future variable consideration, received in exchange for the goods delivered or services rendered. The arrangement for the sale of an IMAX System includes indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the exhibitor customer if certain minimum box office receipt thresholds are exceeded. In addition, hybrid sales arrangements include amounts owed by the exhibitor customer based on a percentage of their box office receipts over the term of the arrangement. These contract provisions are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal. This estimate is based on management’s box office projections for the individual location, which are developed using historical data for the location and, if necessary, comparable theaters and territories (see “Constraints on the Recognition of Variable Consideration” below). Transfer of control of the System Obligation occurs at the earlier of client acceptance of the installation of the IMAX System, including projectionist training, and the opening of the theater to the public, as discussed in more detail below. IMAX System arrangements are non-cancellable unless the Company fails to perform its obligations. In the absence of a material default by the Company, there is no right to any remedy for the customer under the Company’s arrangements. If a material default by the Company exists, the customer has the right to terminate the arrangement and seek a refund only if the customer provides notice to the Company of a material default and only if the Company does not cure the default within a specified period. Sales Arrangements For IMAX System arrangements that qualify as a sale, the transaction price allocated to the System Obligation is recognized in the Consolidated Statements of Operations upon the transfer of control of the system to the customer, which is when all of the following conditions have been met: (i) the projector, sound system, and screen system have been installed and are in full working condition, (ii) the 3D glasses cleaning machine, if applicable, has been delivered, (iii) projectionist training has been completed, and (iv) the earlier of (a) the receipt of written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the IMAX System. The initial revenue recognized in a sales arrangement consists of payments made before and in connection with the installation of the IMAX System and the present value of any future payments, including ongoing fixed minimum payments, which are subject to indexed increases over the term of the arrangement, and potential additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded. In addition, hybrid sales arrangements include amounts owed by the customer based on a percentage of their box office receipts over the term of the arrangement. Potential payments based on the future box office receipts of the customer are considered to be variable consideration. An estimate of the present value of such variable consideration is recognized as revenue upon the transfer of control of the System Obligation to the customer, subject to constraints to ensure that there is not a risk of significant revenue reversal (see “Constraints on the Recognition of Variable Consideration” below). The Company has also agreed, on occasion, to sell equipment under lease or at the end of a lease term. The transaction price agreed to for these lease buyouts is reflected in the Company’s Consolidated Statements of Operations within Revenues – Technology Sales. Taxes assessed by governmental authorities that are both imposed on and concurrent with the specific revenue-producing transactions and collected by the Company have been excluded from the measurement of the transaction prices discussed above. Constraints on the Recognition of Variable Consideration The recognition of variable consideration involves a significant amount of judgment. Variable consideration is recognized subject to appropriate constraints to avoid a significant reversal of revenue in future periods. The Company reviews its variable consideration assets on at least a quarterly basis considering recent box office performance and, when applicable, updated box office projections for future periods. The relevant accounting guidance identifies the following examples of situations when constraining the amount of variable consideration is appropriate: • The amount of consideration is highly susceptible to factors outside the entity’s influence; • The uncertainty about the amount of consideration is not expected to be resolved for a long period of time; • The Company’s experience (or other evidence) with similar types of contracts is limited, or that experience has limited predictive value; and • The entity has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances. As discussed above, the Company’s significant streams of variable consideration relate to arrangements for the sale of IMAX Systems which include indexed minimum payment increases over the term of the arrangement, as well as the potential for additional payments owed by the customer if certain minimum box office receipt thresholds are exceeded. In addition, hybrid sales arrangements include variable consideration based on a percentage of the customer’s box office receipts over the term of the arrangement. Variable consideration related to indexed minimum payment increases is outside of the Company’s control, but the movement in the rates is historically well documented and economic trends in inflation are easily accessible. For each contract subject to an indexed minimum payment increase, the Company estimates the most likely amount using published indices. The amount of the estimated minimum payment increase is then recorded at its present value as of the date of recognition using the customer’s implied borrowing rate. Variable consideration related to the level of the customer’s box office receipts is outside of the Company’s control as it is dependent upon the future commercial success of the films released to the IMAX network. The estimated variable consideration initially recognized by the Company is based on management’s box office projections for the location, which are developed using historical box office data for that location and, if necessary, comparable locations and territories. Using this data, management applies its understanding of these exhibition markets to estimate the most likely amount of variable consideration to be earned over the term of the arrangement. Management then applies a constraint to this estimate by reducing the projection by a percentage factor for locations or markets with no or limited historical box office experience. In cases where direct historical experience can be observed, average historical box office results, eliminating significant outliers, is used. The resulting amount of variable consideration is then recorded at its present value as of the date of recognition using a risk-weighted discount rate. |
Revenue Recognition Leases | Lease Arrangements As a lessor, the Company provides IMAX Systems to customers through long-term lease arrangements. Under these arrangements, in exchange for providing the IMAX System, the Company earns fixed upfront and ongoing consideration. A lease arrangement that transfers substantially all of the benefits and risks incident to ownership of the IMAX System is classified as a sales-type lease; otherwise the lease is classified as an operating lease. Prior to commencement of the lease term, the Company may modify certain payment terms or make concessions. If these circumstances occur, the Company reassesses the classification of the lease based on the modified terms and conditions. For sales-type leases, the revenue allocated to the System Obligation is recognized when the lease term commences, which the Company deems to be when all of the following conditions have been met: (i) the projector, sound system, and screen system have been installed and are in full working condition, (ii) the 3D glasses cleaning machine, if applicable, has been delivered, (iii) projectionist training has been completed, and (iv) the earlier of (a) the receipt of the written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the theater, provided collectability is reasonably assured. The initial revenue recognized for sales-type leases consists of the initial payments received and the present value of future initial payments and fixed minimum ongoing payments computed at the interest rate implicit in the lease. Contingent payments in excess of the fixed minimum payments are recognized when reported by theater operators, provided collectability is reasonably assured. For joint revenue sharing arrangements that are classified as operating leases, initial payments and fixed minimum ongoing payments are recognized as revenue on a straight-line basis over the lease term. For these leases, the lease term is considered to commence when all of the following conditions have been met: (i) the projector, sound system and screen system have been installed and are in full working condition; (ii) the 3D glasses cleaning machine, if applicable, has been delivered; (iii) projectionist training has been completed; and (iv) the earlier of (a) the receipt of written customer acceptance certifying the completion of installation and run-in testing of the equipment and the completion of projectionist training or (b) the public opening of the theater. Contingent payments in excess of fixed minimum ongoing payments are recognized as revenue when reported by theater operators, provided collectability is reasonably assured. |
Revenue Recognition Finance Income | Finance Income Finance Income is recognized over the term of the sales-type lease or financed sale receivable, provided collectability is reasonably assured. A theater operator that is classified within the “All Transactions Suspended” category under the Company’s internal credit quality guidelines is placed on nonaccrual status and Finance Income recognition related to the location is stopped. While the recognition of Finance Income is suspended, payments received from a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a recovery of provision taken on the billed amount, if applicable, is recorded to the extent of the residual cash received. Once the collectability issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of Finance Income. |
Improvements and Modifications | Improvements and Modifications Improvements and modifications to an IMAX System after installation are treated as a separate performance obligation, if and when the Company is requested to perform these services. Revenue is recognized for these services once they have been provided. |
Costs and Expenses Applicable to Revenues - Technology Sales | Costs and Expenses Applicable to Revenues – Technology Sales Costs and Expenses Applicable to Revenues – Technology Sales relates to sale and sales-type leases of IMAX Systems and other equipment, and includes the cost of the equipment and costs related to project management, design, delivery and installation supervision services, as applicable. The costs related to IMAX Systems under sale and sales-type lease arrangements are transferred from Inventories to Costs and Expenses Applicable to Revenues in the period when the sale is recognized in the Consolidated Statements of Operations. Sales commissions and other selling expenses that directly relate to the acquisition of the revenue generating contract and are incremental to the Company’s other expenses are deferred and recognized in the Consolidated Statements of Operations upon the client acceptance of the IMAX System. The Company may have warranty obligations at or after the time revenue is recognized which require the replacement of certain parts that do not affect the functionality of the theater system or services. The costs for warranty obligations for known issues are accrued as charges to Costs and Expenses Applicable to Revenues – Technology Sales at the time revenue is recognized based on the Company’s past historical experience and cost estimates. |
Costs and Expenses Applicable to Revenues - Technology Rentals | Costs and Expenses Applicable to Revenues – Technology Rentals Costs and Expenses Applicable to Revenues – Technology Rentals relates to joint revenue sharing arrangements classified as operating leases, and primarily includes the depreciation of IMAX System components and related equipment used in the joint revenue sharing arrangement. Impairment losses, if any, are also included in Costs and Expenses Applicable to Revenues – Technology Rentals. Sales commissions related to these arrangements are deferred and recognized as Costs and Expenses Applicable to Revenues – Technology Rentals in the month they are earned by the salesperson, which is typically the month of installation. Direct advertising and marketing costs for each location are charged to Costs and Expenses Applicable to Revenues – Technology Rentals as incurred. |
Terminations, Consensual Buyouts and Concessions | Terminations, Consensual Buyouts and Concessions The Company enters into IMAX System arrangements with customers that contain customer payment obligations prior to the scheduled installation of the IMAX System. During the period of time between signing and the installation of the IMAX System, which may extend several years, certain customers may be unable to, or may elect not to, proceed with the system installation for a number of reasons including business considerations, or the inability to obtain certain consents, approvals or financing. Once the determination is made that the customer will not proceed with installation, the arrangement may be terminated under the default provisions of the arrangement or by mutual agreement between the Company and the customer (a “consensual buyout”). Terminations by default are situations when a customer does not meet the payment obligations under an arrangement and the Company retains the amounts paid by the customer. Under a consensual buyout, the Company and the customer agree, in writing, to a settlement and to release each other of any further obligations under the arrangement or an arbitrated settlement is reached. Any initial payments retained or additional payments received by the Company are recognized as revenue when the settlement arrangements are executed and the cash is received, respectively. In addition, the Company may agree with a customer to convert its obligations for one type of IMAX System configuration that has not yet been installed to an arrangement to acquire or lease a different type of IMAX System. The Company considers these situations to be the termination of the original arrangement and the origination of a new arrangement. The Company may offer certain incentives to customers to complete IMAX System transactions including payment concessions or free services and products such as film licenses or 3D glasses. Reductions in, and deferral of, payments are taken into account in determining the transaction price either by a direct reduction in the sales price or a reduction of payments to be discounted. Free products and services are accounted for as separate performance obligations. |
Maintenance And Extended Warranty Services | Maintenance and Extended Warranty Services Maintenance and extended warranty services may be provided under an arrangement with multiple performance obligations or as a separately priced contract. Revenues related to these services are deferred and recognized on a straight-line basis over the contract period and are recognized within Revenues – Image Enhancement and Maintenance Services in the Consolidated Statements of Operations. Maintenance and extended warranty services include maintenance of the customer’s equipment and replacement parts. Under certain maintenance arrangements, maintenance services may include additional training services to the customer’s technicians. All costs associated with this maintenance and extended warranty program are expensed as incurred. A loss on maintenance and extended warranty services is recognized if the expected cost of providing the services under the contract exceeds the related deferred revenue. As the maintenance services are a stand ready obligation with the cost of providing the service expected to increase throughout the term, revenue is recognized over the term of the arrangement such that increased amounts are recognized in later periods. |
Films Revenue Recognition | IMAX DMR Services In an IMAX DMR arrangement, the Company receives a percentage of the box-office receipts from a third party who owns the copyright to a film in exchange for converting the film into IMAX DMR format and distributing it through the IMAX network. In these arrangements, although the Company does not hold rights to the intellectual property in the form of the film content, it is compensated for the application of its intellectual property in the form of its patented DMR processes to create new intellectual property in the form of an IMAX DMR version of film. Revenues associated with IMAX DMR arrangements qualify for the variable consideration exemption for sales- or usage-based royalties in the relevant accounting guidance and are recognized within Revenues – Image Enhancement and Maintenance Services in the period when the corresponding box office sales occur. Losses on IMAX DMR services are recognized as Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services in the period when it is determined that the Company’s estimate of total revenues to be realized by the remastered film will not exceed the corresponding cost of IMAX DMR services. Film Production Services In certain film arrangements, the Company produces a film financed by third parties whereby the third party retains the copyright, and the Company obtains exclusive distribution rights. Under these arrangements, the Company is entitled to receive a fixed fee or retain, as a fee, the excess of gross revenue over the cost of the production (the “production fee”). The third party receives a portion of the revenues received by the Company from distributing the film, which is charged to Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. Production fees are deferred and recognized as a reduction in the cost of the film based on the ratio of the Company’s distribution revenues recognized in the current period to the ultimate distribution revenues expected from the film. Film exploitation costs, including advertising and marketing, are recorded in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services as incurred, except for those costs that are made after recognizing revenue, which are recorded when the related revenues are recognized. Revenue from film production services where the Company does not hold the associated distribution rights are recognized in Revenues – Image Enhancement and Maintenance Services when performance obligations associated with the contractual service are satisfied. Losses on film production services are recognized as Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services in the period when it is determined that the Company’s estimate of total revenues to be realized by the Company will not exceed estimated total production costs to be expended on the film production. Film Distribution Services In a Film Distribution arrangement, the Company distributes large-format documentary films, primarily to institutional locations, and distributes exclusive entertainment experiences ranging from live performances to interactive events with leading artists and creators. Revenue from the licensing of films qualifies for the variable consideration exemption for sales- or usage-based royalties in the relevant accounting guidance and is recognized within Revenues – Image Enhancement and Maintenance Services when all performance obligations have been satisfied, which includes the completion and delivery of the film and the commencement of the license period. In situations when film license fees are based on a percentage of box-office receipts, revenue is recognized when box-office receipts are reported by the exhibitor. Film exploitation costs, including advertising and marketing, are expensed as incurred within Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. Film Post-Production Services Revenues from post-production film services are recognized within Revenues – Image Enhancement and Maintenance Services when performance of the contracted services is completed. Software License and Subscription Services Through SSIMWAVE, the Company provides term licenses, which give customers the right to use its software for a specific period, and perpetual licenses, which give customers the right to use its software for an indefinite period. For both types of licenses, the associated revenue is recognized at the point in time when the customer can use and benefit from the software, which is generally upon delivery to the customer or upon commencement of the renewal term. For licenses that are deployed and hosted at the customer site, revenue is recognized upon delivery of the software to the customer or upon commencement of the renewal term. For licenses where the software is provided through a hosting arrangement, if the customer does not have a contractual right to take possession of the underlying software without significant penalty, or it is not feasible for the customer to run the software on its own hardware or contract a third party to host the services, the arrangement is accounted for as a service transaction whereby the Company has a stand-ready obligation to provide the software over the license period. Therefore, the related revenue is recognized ratably over the license period, as control of service is transferred to the customer. SSIMWAVE's software license arrangements for both term and perpetual licenses typically include maintenance and support services which provide technical support and unspecified updates and upgrades on a when-and-if-available basis. The contractual term of the arrangement to provide maintenance and support services for perpetual licenses is renewable, generally on an annual basis, at the option of the customer. Maintenance and support services represent stand-ready obligations for which revenue is recognized ratably over the term of the arrangements. Revenues from licenses and maintenance and support services are recognized within Revenues – Image Enhancement and Maintenance Services. |
Leases | (p) Leases As a lessee, the Company’s lease arrangements principally involve office and warehouse space, which are classified as operating leases. The corresponding operating lease right-of-use (“ROU”) assets and liabilities are recorded within Property, Plant and Equipment and Accrued and Other Liabilities in the Company’s Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term. Operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The incremental borrowing rate used in the calculation of the Company’s lease liabilities is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs, and its level of investment in the leasehold improvements, among other factors. The depreciable lives of ROU assets and related leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. When there are modifications to the lease agreements, the Company remeasures the lease liabilities to reflect changes to lease payments and recognizes the amount of the remeasurement of the lease liability as an adjustment to the ROU assets. Amortization of ROU assets and interest on lease liabilities are included within Selling, General and Administrative Expenses in the Company’s Consolidated Statements of Operations. (See Note 7 for additional information related to the Company’s operating leases.) |
Research and Development Expense | (q) Research and Development Research and development costs, which are expensed as incurred, primarily include projector and sound parts, labor, consulting fees, allocation of overheads, and other related materials which pertain to the Company’s development of new products and services. Research and development costs pertaining to fixed and intangible assets that have alternative future uses are capitalized and amortized under their related policies. |
Foreign Currency Translations | (r) Foreign Currency Translation Monetary assets and liabilities that are denominated in a currency other than the Company's functional currency are translated into the relevant functional currency using the exchange rate prevailing at the end of the period. Foreign exchange translation gains and losses are included in the determination of earnings in the period in which they arise. Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenues, expenses, gains, and losses recorded in foreign currencies are translated using the exchange rates prevailing during the period in which they are recognized. Translation adjustments resulting from this process are recorded to Other Comprehensive (Loss) Income and reported on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income until the subsidiary is sold or liquidated, at which point the adjustments are recognized in Consolidated Statements of Operations. Foreign currency derivatives are recognized and measured in the Consolidated Balance Sheets at their fair value. Changes in the fair value (i.e., gains or losses) are recognized in the Consolidated Statements of Operations except for derivatives designated and qualifying as foreign currency hedging instruments. For foreign currency hedging instruments, the gain or loss related to the effective portion of the hedge of a forecasted transaction is reported within Other Comprehensive (Loss) Income and reclassified to the Consolidated Statements of Operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Consolidated Statements of Operations. |
Share-Based Compensation | (s) Share-Based Compensation The Company issues share-based compensation to eligible employees, directors, and consultants under the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, the “IMAX LTIP”) and the China Long-Term Incentive Plan (the “China LTIP”) as summarized in Note 18. The IMAX LTIP is the Company’s governing document and awards to employees, directors, and consultants under this plan may consist of stock options, restricted share units (“RSUs”), performance stock units (“PSUs”) and other awards. A separate stock option plan, the China LTIP, was adopted by a subsidiary of the Company in October 2012. The Company measures share-based compensation expense using the grant date fair value of the award (see below), which is recognized as an expense in the Consolidated Statements of Operations on a straight-line basis over the requisite service period. Share-based compensation expense is not adjusted for estimated forfeitures but is instead adjusted when and if actual forfeitures occur. Stock Options The Company utilizes a lattice-binomial option-pricing model (“Binomial Model”) to determine the fair value of stock option awards on the grant date. The fair value determined by the Binomial Model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the award, and actual and projected employee stock option exercise behaviors. The Binomial Model also considers the expected exercise multiple which is the multiple of exercise price to grant price at which exercises are expected to occur on average. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because the Company’s employee stock options have certain characteristics that are significantly different from traded options, and because changes in the subjective assumptions can materially affect the estimated value, in management’s opinion, the Binomial Model best provides a fair measure of the fair value of the Company’s employee stock options. The Company stratifies its employees into homogeneous groups in order to calculate the grant date fair value of stock options using the Binomial Model. As a result, ranges of assumptions are used for the expected life of the option. The Company uses historical data to estimate option exercise behavior within the Binomial Model and various groups of employees that have similar historical exercise behavior are grouped together for valuation purposes. The expected volatility rate is estimated based on a blended volatility method which takes into consideration the Company’s historical share price volatility, the Company’s implied volatility which is determined in reference to observed current market prices for the Company’s traded options and the Company’s peer group volatility. (See Note 18(c) for the assumptions used to determine the fair value of the Company’s stock options.) Restricted Share Units The fair value of RSU awards is equal to the closing price of the Company’s common stock on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as compensation expense over the requisite service period in the Company’s Consolidated Statements of Operations. The Company’s RSUs are classified as equity. Performance Stock Units The Company grants two types of PSU awards, one which vests based on a combination of employee service and the achievement of certain EBITDA-based targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets. The achievement of the EBITDA and TSR targets in these PSUs is determined over a three-year performance period. At the conclusion of the three-year performance period, the number of PSUs that ultimately vest can range from 0 % to a maximum vesting opportunity of 175 % of the initial award, depending upon actual performance versus the established EBITDA and share-price targets. The Company’s PSUs are classified as equity. The grant date fair value of PSUs with EBITDA-based targets is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant. The grant date fair value of PSUs with TSR targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model that considers the likelihood of achieving the TSR targets embedded in the award (“Monte Carlo Model”). The compensation expense attributable to each type of PSU is recognized on a straight-line basis over the requisite service period. The fair value determined by the Monte Carlo Model is affected by the Company’s share price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, market conditions as of the grant date, the Company’s expected share price volatility over the term of the awards, and other relevant data. The compensation expense is fixed on the date of grant based on the dollar value of the PSUs granted. The amount and timing of compensation expense recognized for PSUs with EBITDA-based targets is dependent upon management's assessment of the likelihood and timing of achieving these targets. If, as a result of management’s assessment, it is projected that a greater number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase compensation expense is recorded in the period such determination is made. Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period such determination is made. Share-Based Payment Awards to Non-Employees Share-based payment awards for services provided by non-employees are measured at grant date fair value of the equity instruments that the Company is obligated to issue when the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The grant date is the date which the Company and the non-employees reach a mutual understanding of the key terms and conditions of the share-based payment awards. When there are performance conditions related to the vesting of the share-based awards, the Company assesses the probability of vesting at each reporting date and adjusts the compensation costs based on the probability assessment. |
Pension and Other Postretirement Plans | (t) Pension Plans and Postretirement Benefits The Company has a defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”). As the Company’s SERP is unfunded, as of December 31, 2022, a liability is recognized for the benefit obligation. Assumptions used in computing the defined benefit obligations are reviewed annually by management in consultation with its actuaries and adjusted for current conditions. Actuarial gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefits cost are recognized as a component of Other Comprehensive (Loss) Income. Amounts recognized in Accumulated Other Comprehensive (Loss) Income including unrecognized actuarial gains or losses and prior service costs are adjusted as they are subsequently recognized in the Consolidated Statements of Operations as components of net periodic benefit cost. Prior service costs resulting from the pension plan inception or amendments are amortized over the expected future service life of the employees, cumulative actuarial gains and losses in excess of 10 % of the projected benefit obligation are amortized over the expected average remaining service life of the employees, and current service costs are expensed when earned. The remaining weighted average future service life of the employee used in computing the defined benefit obligation for the year ended December 31, 2022 was 3.0 years . For defined contribution pension plans, required contributions by the Company are recorded as an expense within Selling, General and Administrative Expenses in the Company’s Consolidated Statements of Operations. A liability is recognized for the unfunded accumulated benefit obligation of the postretirement benefits plan. Assumptions used in computing the accumulated benefit obligation are reviewed by management in consultation with its actuaries and adjusted for current conditions. Net benefit cost is split between operating income and non-operating income, where only the service cost is included in income from operations and the non-service components are included in Retirement Benefits Non-Service Expenses. Actuarial gains and losses are recognized as a component of Other Comprehensive (Loss) Income. Amounts recognized in Accumulated Other Comprehensive (Loss) Income including unrecognized actuarial gains or losses are adjusted as they are subsequently recognized within Retirement Benefits Non-Service Expense in the Consolidated Statements of Operations. |
Guarantees, Indemnifications and Warranties | (u) Guarantees In situations when the Company acts as a guarantor, at the inception of a guarantee, it recognizes a liability for the fair value of the underlying guarantee. Disclosures as required under the relevant accounting guidance have been included in Note 17 . |
Recently Issued Accounting Standards Not Yet Adopted | Adoption of New Accounting Policies In July 2021, the FASB issued ASU No. 2021-05, “Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments” (“ASU 2021-05”), which requires sales-type or direct financing leases that have variable payments (that do not depend on a rate or an index) and result in a day-one loss to be classified as operating leases. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The amendments are effective for annual periods beginning after December 15, 2021 including interim periods within those periods. Early adoption is permitted. The Company adopted ASU 2021-05 for the year ended December 31, 2022 and adoption did no t have a material impact on the Company's Consolidated Financial Statements. In October 2021, the FASB issued ASU No. 2021-08, “2021-08: Business Combinations (Topic 850): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08” ). ASU 2021-08 requires that an acquirer recognize and measure contract assets and contract liabilities (e.g., deferred revenue) acquired in a business combination in accordance with Topic 606, as opposed to at fair value. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those periods. Early adoption is permitted. The Company elected to early adopt ASU 2021-08 in the third quarter of 2022 in connection with its acquisition of SSIMWAVE Inc. (see Note 5). In November 2021, the FASB issued ASU No. 2021-10, “2021-10: Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). The amendments in ASU 2021-10 require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The amendments are effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company adopted ASU 2021-10 for the year ended December 31, 2022 and has provided the required disclosures in Note 25. Recently Issued FASB Accounting Standard Codification Updates Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The purpose of ASU 2020-04 is to provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply ASU 2020-04 prospectively through December 31, 2022. In October 2022, the FASB extended the temporary accounting relief to December 31, 2024 from the current sunset date of December 31, 2022. As of December 31, 2022, the Company is not party to any third party contracts that reference the London Interbank Offered Rate (LIBOR). Accordingly, the Company does not expect ASU 2020-04 to have a material effect on its Consolidated Financial Statements. In March 2022, the FASB issued ASU No. 2022-02, “2022-02: Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 amends and eliminates the accounting guidance for Troubled Debt Restructurings by creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requires for public business entities, to disclose current-period gross write offs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt ASU 2022-02 for the first quarter of 2023 and is in the process of evaluating the accounting and disclosure impact, if any, on the Company's Consolidated Financial Statements. The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. Accounting standard updates that are not noted above were assessed and determined to be not applicable or not significant to the Company’s Consolidated Financial Statements for the year ended December 31, 2022. |
Credit Risk | The Company’s internal credit quality classifications for theater operators are as follows: • Good Standing — The theater operator continues to be in good standing as payments and reporting are received on a regular basis. • Credit Watch — The theater operator has demonstrated a delay in payments, but continues to be in active communication with the Company. Theater operators placed on Credit Watch are subject to enhanced monitoring. In addition, depending on the size of the outstanding balance, length of time in arrears, and other factors, future transactions may need to be approved by management. These receivables are in better condition than those in the Pre-Approved Transactions Only category, but are not in as good condition as the receivables in the Good Standing category. • Pre-Approved Transactions Only — The theater operator has demonstrated a delay in payments with little or no communication with the Company. All services and shipments to the theater operator must be reviewed and approved by management. These receivables are in better condition than those in the All Transactions Suspended category, but are not in as good condition as the receivables in the Credit Watch category. In certain situations, a theater operator may be placed on nonaccrual status and all revenue recognition related to the theater may be suspended, including the accretion of Finance Income for Financing Receivables. • All Transactions Suspended — The theater operator is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater operator is classified within the All Transactions Suspended category, the theater is placed on nonaccrual status and all revenue recognitions related to the theater are suspended, including the accretion of Finance Income for Financing Receivables. |
Segment Reporting | The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements (“JRSA”); (iii) IMAX Systems; (iv) IMAX Maintenance; (v) Other Theater Business; (vi) Film Distribution; and (vii) Film Post-Production. The Company's activities that do not meet the criteria to be considered a reportable segment are disclosed within All Other. The Company organizes its reportable segments into the following three categories , identified by the nature of the product sold or service provided : (i) IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR segment and contingent rent from the JRSA segment; (ii) IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment; and (iii) Film Distribution and Post-Production, which includes activities related to the distribution of large-format documentary films, primarily to institutional theaters, and the distribution of exclusive experiences ranging from live performances to interactive events with leading artists and creators (through the Film Distribution segment) and the provision of film post-production and quality control services. |
Fair Value of Financial Instruments | The carrying values of the Company’s Cash and Cash Equivalents, Accounts Receivable, Accounts Payable, and Accrued Liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As of December 31, 2022 As of December 31, 2021 (In thousands of U.S. Dollars) Carrying Estimated Carrying Estimated Level 1 Cash and cash equivalents (1) $ 97,401 $ 97,401 $ 189,711 $ 189,711 Equity securities (2) 1,035 1,035 1,087 1,087 Level 2 Net financed sales receivables (3) $ 101,052 $ 100,059 $ 112,657 $ 112,662 Net investment in sales-type leases (3) 28,332 27,972 28,392 28,407 Equity securities (1) 1,000 1,000 1,000 1,000 COLI (4) 3,398 3,398 3,275 3,275 Foreign exchange contracts — designated forwards (2) ( 649 ) ( 649 ) 79 79 Wells Fargo Credit Facility borrowings (1) ( 25,000 ) ( 25,000 ) — — HSBC China Facility borrowings (1) ( 12,496 ) ( 12,496 ) — — Bank of China Facility borrowings (1) ( 374 ) ( 374 ) ( 3,612 ) ( 3,612 ) Federal Economic Development Loan (3) ( 1,782 ) ( 1,782 ) N/A N/A Convertible Notes (5) ( 230,000 ) ( 196,717 ) ( 230,000 ) ( 223,100 ) Level 3 Interest in film classified as a financial instrument (6) $ — $ — $ — $ — (1) Recorded at cost, which approximates fair value. (2) Fair value is determined using quoted prices in active markets. (3) Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms. (4) Measured at cash surrender value, which approximates fair value. (5) Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data. (6) Recorded at amortized cost less impairment losses. Inputs used in the calculation of estimated fair value include management's projection of future box office and ancillary receipts for the film net of distribution costs and other costs in accordance with the investment agreement. See 23 (e) below. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIEs Total Assets and Liabilities | As of December 31, 2022 and 2021, total assets and liabilities of the Company's consolidated VIEs are as follows: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Total assets $ 1,523 $ 1,576 Total liabilities $ 248 $ 259 |
Summary of Estimated Useful Lives | Property, Plant and Equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of the underlying assets as follows: Theater system components (1) — Over the equipment’s expected useful life ( 7 to 20 years) Camera equipment — Over a period between 5 to 10 years Buildings — Over a period between 20 to 25 years Office and product equipment — Over a period between 3 to 5 years Leasehold improvements — Over the shorter of the initial term of the underlying lease plus any reasonably assured renewal periods, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Subject to Revision Upon Completion of Valuation Procedures | The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed as of December 31, 2022. (In thousands of U.S. Dollars) Purchase Price : Cash payments $ 19,521 IMAX Share Consideration 1,947 Earn-Out Payment 1,750 Total Purchase Price $ 23,218 Allocation of Purchase Price : Cash and cash equivalents $ 3,582 Accounts receivable 158 Property, plant and equipment 409 Intangible assets (see Note 14) 11,189 Other assets 293 Accounts payable and accrued liabilities ( 1,092 ) Deferred revenue ( 1,300 ) Federal economic development loan, net of unaccreted interest benefit ( 1,772 ) Deferred tax liability ( 2,037 ) Goodwill (see Note 14) 13,788 Total Purchase Price $ 23,218 |
Schedule of Allocation of Fair Value of Identifiable Intangible Assets | The allocation of the fair value of identified intangible assets is as follows: (In thousands of U.S. Dollars) Fair Value Weighted Average Useful Life Patent and trademarks 100 2 Years Customer relationships 1,340 7 Years Developed technology 5,779 4 to 7 Years In-process research and development 3,810 Not yet in use Non-compete agreement 160 4 Years Total identifiable intangible assets $ 11,189 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Allowance For Credit Losses Related to Accounts Receivable | The following tables summarize the activity in the allowance for credit losses related to Accounts Receivable for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 (In thousands of U.S. Dollars) Theater Studios Other Total Beginning balance $ 8,867 $ 1,994 $ 1,085 $ 11,946 Current period provision (reversal), net 2,687 ( 128 ) 585 3,144 Write-offs ( 43 ) ( 128 ) ( 394 ) ( 565 ) Foreign exchange ( 367 ) ( 39 ) — ( 406 ) Ending balance $ 11,144 $ 1,699 $ 1,276 $ 14,119 Year Ended December 31, 2021 (In thousands of U.S. Dollars) Theater Studios Other Total Beginning balance $ 8,368 $ 4,481 $ 1,446 $ 14,295 Current period provision (reversal), net 793 ( 1,913 ) ( 332 ) ( 1,452 ) Write-offs ( 357 ) ( 551 ) ( 19 ) ( 927 ) Foreign exchange 63 ( 23 ) ( 10 ) 30 Ending balance $ 8,867 $ 1,994 $ 1,085 $ 11,946 |
Schedule of Financing Receivables | . As of December 31, 2022 and 2021, financing receivables consist of the following: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Net investment in leases Gross minimum payments due under sales-type leases $ 29,727 $ 29,953 Unearned finance income ( 619 ) ( 763 ) Present value of minimum payments due under sales-type leases 29,108 29,190 Allowance for credit losses ( 776 ) ( 798 ) Net investment in leases 28,332 28,392 Financed sales receivables Gross minimum payments due under financed sales 141,337 152,315 Unearned finance income ( 29,340 ) ( 34,244 ) Present value of minimum payments due under financed sales 111,997 118,071 Allowance for credit losses ( 10,945 ) ( 5,414 ) Net financed sales receivables 101,052 112,657 Total financing receivables $ 129,384 $ 141,049 Net financed sales receivables due within one year $ 32,366 $ 29,115 Net financed sales receivables due after one year 68,686 83,542 Total financed sales receivables $ 101,052 $ 112,657 |
Schedule of Weighted-average Remaining Lease Term and Weighted-average Interest Rate | As of December 31, 2022 and 2021, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sale receivables, as applicable, are as follows: December 31, December 31, 2022 2021 Weighted-average remaining lease term (in years) Sales-type lease arrangements 9.0 9.6 Weighted-average interest rate Sales-type lease arrangements 8.23 % 6.56 % Financed sales receivables 8.79 % 8.79 % |
Schedule of Net Investment In Leases by Credit Quality Indicator | The tables below provide information on the Company’s net investment in leases by credit quality indicator as of December 31, 2022 and 2021. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts. (In thousands of U.S. Dollars) By Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Total Net investment in leases: Credit quality classification: In good standing $ 4,148 $ 6,969 $ 2,494 $ 1,977 $ — $ 1,016 $ 16,604 Credit Watch — — — — — — — Pre-approved transactions — 3,089 1,162 5,401 2,451 — 12,103 Transactions suspended — — — — — 401 401 Total net investment in leases $ 4,148 $ 10,058 $ 3,656 $ 7,378 $ 2,451 $ 1,417 $ 29,108 (In thousands of U.S. Dollars) By Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Total Net investment in leases: Credit quality classification: In good standing $ 11,030 $ 3,991 $ 7,973 $ 2,574 $ 823 $ 1,928 $ 28,319 Credit Watch — — — — — — — Pre-approved transactions — — — — — — — Transactions suspended — — — — — 871 871 Total net investment in leases $ 11,030 $ 3,991 $ 7,973 $ 2,574 $ 823 $ 2,799 $ 29,190 |
Schedule of Financed Sale Receivables by Credit Quality Indicator | The tables below provide information on the Company’s financed sale receivables by credit quality indicator as of December 31, 2022 and 2021. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts. (In thousands of U.S. Dollars) By Origination Year As of December 31, 2022 2022 2021 2020 2019 2018 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 10,252 $ 8,643 $ 6,280 $ 8,541 $ 9,854 $ 39,912 $ 83,482 Credit Watch — — — — — 1,152 1,152 Pre-approved transactions — 2,318 1,399 1,134 1,449 9,243 15,543 Transactions suspended 272 664 142 1,269 1,197 8,276 11,820 Total financed sales receivables $ 10,524 $ 11,625 $ 7,821 $ 10,944 $ 12,500 $ 58,583 $ 111,997 (In thousands of U.S. Dollars) By Origination Year As of December 31, 2021 2021 2020 2019 2018 2017 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 12,520 $ 8,251 $ 10,593 $ 13,278 $ 12,615 $ 47,950 $ 105,207 Credit Watch — — — — 321 1,292 1,613 Pre-approved transactions — — 743 418 2,098 3,650 6,909 Transactions suspended — — 335 — 680 3,327 4,342 Total financed sales receivables $ 12,520 $ 8,251 $ 11,671 $ 13,696 $ 15,714 $ 56,219 $ 118,071 |
Schedule of Aging Analysis for Net Investment in Leases and Financed Sale Receivables | The following tables provide an aging analysis for the Company’s net investment in leases and financed sale receivables as of December 31, 2022 and 2021: As of December 31, 2022 (In thousands of U.S. Dollars) Accrued 30-89 90+ Billed Unbilled Recorded Allowance Net Net investment in leases $ 237 $ 216 $ 2,593 $ 3,046 $ 26,062 $ 29,108 $ ( 776 ) $ 28,332 Financed sales receivables 2,269 1,307 12,793 16,369 95,628 111,997 ( 10,945 ) 101,052 Total $ 2,506 $ 1,523 $ 15,386 $ 19,415 $ 121,690 $ 141,105 $ ( 11,721 ) $ 129,384 As of December 31, 2021 (In thousands of U.S. Dollars) Accrued 30-89 90+ Billed Unbilled Recorded Allowance Net Net investment in leases $ 225 $ 156 $ 1,267 $ 1,648 $ 27,542 $ 29,190 $ ( 798 ) $ 28,392 Financed sales receivables 1,750 989 8,378 11,117 106,954 118,071 ( 5,414 ) 112,657 Total $ 1,975 $ 1,145 $ 9,645 $ 12,765 $ 134,496 $ 147,261 $ ( 6,212 ) $ 141,049 |
Schedule of Net Investment in Leases and Financed Sale Receivables with Billed Amounts Past Due Continues to Accrue Finance Income | The following tables provide information about the Company’s net investment in leases and financed sale receivables with billed amounts past due for which it continues to accrue finance income as of December 31, 2022 and 2021. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts. As of December 31, 2022 (In thousands of U.S. Dollars) Accrued 30-89 Days 90+ Days Billed Unbilled Allowance Net Net investment in leases $ 190 $ 181 $ 2,593 $ 2,964 $ 17,070 $ ( 230 ) $ 19,804 Financed sales receivables 1,550 1,115 10,814 13,479 43,172 ( 1,587 ) 55,064 Total $ 1,740 $ 1,296 $ 13,407 $ 16,443 $ 60,242 $ ( 1,817 ) $ 74,868 As of December 31, 2021 (In thousands of U.S. Dollars) Accrued 30-89 Days 90+ Days Billed Unbilled Allowance Net Net investment in leases $ 143 $ 132 $ 825 $ 1,100 $ 12,619 $ ( 176 ) $ 13,543 Financed sales receivables 959 729 6,190 7,878 41,439 ( 1,413 ) 47,904 Total $ 1,102 $ 861 $ 7,015 $ 8,978 $ 54,058 $ ( 1,589 ) $ 61,447 |
Schedule of Net Investment in Leases and Financed Sale Receivables on Nonaccrual Status | The following table provides information about the Company’s net investment in leases and financed sale receivables that are on nonaccrual status as of December 31, 2022 and 2021: As of December 31, 2022 As of December 31, 2021 (In thousands of U.S. Dollars) Recorded Allowance Net Recorded Allowance Net Net investment in leases $ 401 $ ( 401 ) $ — $ 871 $ ( 309 ) $ 562 Net financed sales receivables 27,364 ( 9,589 ) 17,775 8,642 ( 2,357 ) 6,285 Total $ 27,765 $ ( 9,990 ) $ 17,775 $ 9,513 $ ( 2,666 ) $ 6,847 |
Summary of Allowance for Credit Losses Related to Net Investment in Leases and Financed Sale Receivables | The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for years ended December 31, 2022 and 2021: Year Ended December 31, 2022 Net Investment Financed (In thousands of U.S. Dollars) in Leases Sales Receivables Beginning balance $ 798 $ 5,414 Current period provision, net 5 5,783 Foreign exchange ( 27 ) ( 252 ) Ending balance $ 776 $ 10,945 Year Ended December 31, 2021 Net Investment Net Financed (In thousands of U.S. Dollars) in Leases Sales Receivables Beginning balance $ 557 $ 7,274 Current period provision (reversal), net 235 ( 1,947 ) Foreign exchange 6 87 Ending balance $ 798 $ 5,414 |
Summary of Allowance For Credit Losses Related to Variable Consideration Receivables | The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the years ended December 31, 2022 and 2021: Year Ended December 31, (In thousands of U.S. Dollars) 2022 2021 Beginning balance $ 1,082 $ 1,887 Current period reversal, net ( 440 ) ( 787 ) Foreign Exchange ( 32 ) ( 18 ) Ending balance $ 610 $ 1,082 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Operating Lease Expense | For the years ended December 31, 2022, 2021, and 2020 the components of lease expense recorded within Selling, General and Administrative Expenses are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Operating lease cost: Amortization of operating lease assets 2,734 2,791 3,114 Interest on operating lease liabilities 825 937 1,052 Short-term and variable lease costs 616 713 540 Finance lease cost: Amortization of finance lease assets 171 N/A N/A Interest on finance lease liabilities 22 N/A N/A Total lease cost $ 4,368 $ 4,441 $ 4,706 |
Supplemental Cash and Non-Cash Flow Information Related to Leases | For the years ended December 31, 2022, 2021, and 2020, supplemental cash and non-cash information related to leases is as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 3,783 $ 3,839 $ 3,743 Finance leases $ 948 N/A N/A Supplemental disclosure of noncash leasing activities: Right-of-use assets obtained in exchange for operating lease obligations $ 3,068 $ 1,047 $ 563 Right-of-use assets obtained in exchange for finance lease obligations $ 1,990 N/A N/A |
Lessee Operating Lease Balance Sheet Amounts and Lines | As of December 31, 2022 and 2021, supplemental balance sheet information related to leases is as follows: December 31, (In thousands of U.S. Dollars) 2022 2021 Assets Balance Sheet Location Operating lease right-of-use assets Property, plant and equipment $ 12,341 $ 12,132 Finance lease right-of-use assets Property, plant and equipment $ 1,876 N/A Liabilities Balance Sheet Location Operating lease liabilities Accrued and other liabilities $ 14,641 $ 14,691 Finance lease liabilities (1) Accrued and other liabilities $ 1,011 N/A (1) Recorded net of a $ 0.9 million upfront payment made upon execution of the finance lease arrangement. |
Lessee Leases Weighted Average Remaining Lease Term and Weighted Average Interest Rate | As of December 31, 2022 and 2021, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s leases are as follows: December 31, 2022 2021 Operating leases: Weighted-average remaining lease term (years) 6.0 7.0 Weighted-average discount rate 5.90 % 5.97 % Finance leases: Weighted-average remaining lease term (years) 4.7 N/A Weighted-average discount rate 6.00 % N/A |
Lessee Operating and Finance Lease, Maturity | As of December 31, 2022, the maturities of the Company’s operating and finance lease liabilities are as follows: (In thousands of U.S. Dollars) Operating Leases Finance Leases 2023 $ 3,639 $ 508 2024 3,017 508 2025 2,429 — 2026 2,069 — 2027 2,094 — Thereafter 4,171 — Total lease payments $ 17,419 $ 1,016 Less: interest expense ( 2,778 ) ( 5 ) Present value of lease liabilities $ 14,641 $ 1,011 |
Schedule of Maturities of Lease Receivables | The following lease payments are expected to be received by the Company for its sales-type leases and joint revenue sharing arrangements in each of the next five years and thereafter following the December 31, 2022 balance sheet date: (In thousands of U.S. Dollars) Sales-Type Joint Revenue 2023 $ 3,245 $ 172 2024 3,158 69 2025 3,038 27 2026 2,823 — 2027 2,760 — Thereafter 14,702 — Total $ 29,726 $ 268 |
Variable Consideration from C_2
Variable Consideration from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Change in Contract with Customer, Asset [Abstract] | |
Summary of Variable Consideration from Contracts With Customers | The following table summarizes the activity related to variable consideration from contracts with customers for the years ended December 31, 2022, 2021, and 2020: (In thousands of U.S. Dollars) Balance as of January 1, 2020 $ 40,040 Variable consideration for newly recognized sales 5,550 Accretion to finance income 2,133 Transferred to receivables from variable consideration assets ( 5,310 ) Movement in allowance for credit losses ( 1,887 ) Balance as of December 31, 2020 40,526 Variable consideration for newly recognized sales 4,696 Accretion to finance income 1,985 Transferred to receivables from variable consideration assets ( 3,794 ) Movement in allowance for credit losses (see Note 6) 805 Balance as of December 31, 2021 44,218 Variable consideration for newly recognized sales 7,109 Accretion to finance income 1,846 Transferred to receivables from variable consideration assets ( 9,621 ) Movement in allowance for credit losses (see Note 6) 472 Balance as of December 31, 2022 $ 44,024 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | As of December 31, (In thousands of U.S. Dollars) 2022 2021 Raw materials $ 25,365 $ 20,551 Work-in-process 2,034 1,406 Finished goods 4,135 4,967 $ 31,534 $ 26,924 |
Summary of Inventory Valuation Allowance Account | The following table summarizes the activity for the Company’s inventory valuation allowance account for the years ended December 31, 2022, 2021 and 2020: Balance at Additions (1) Other deductions (2) Balance at (In thousands of U.S. Dollars) Year ended December 31, 2022 $ 4,897 $ 919 $ ( 77 ) $ 5,739 Year ended December 31, 2021 $ 5,752 $ 629 $ ( 1,484 ) $ 4,897 Year ended December 31, 2020 $ 3,216 $ 3,028 $ ( 492 ) $ 5,752 (1) Excludes a recovery of $ 0.2 million charged directly to the Consolidated Statements of Operations during the year ended December 31, 2022 (2021 and 2020 — expenses of $ 0.3 million , and $ 0.6 million , respectively). (2) Includes the write-off of amounts previously charged to valuation allowance. |
Film Assets (Tables)
Film Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Film, Capitalized Cost [Abstract] | |
Film Assets | As of December 31, (In thousands of U.S. Dollars) 2022 2021 Completed and released films, net of accumulated amortization of $ 1,227 $ 2,292 $ 235,029 (2021 ― $ 218,148 ) Films in production 1,667 195 Films in development 2,383 1,754 $ 5,277 $ 4,241 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of December 31, 2022 Accumulated Net Book (In thousands of U.S. Dollars) Cost Depreciation Value Equipment leased or held for use: System components (1)(2)(3) $ 345,960 $ 194,444 $ 151,516 Camera equipment 8,597 3,859 4,738 354,557 198,303 156,254 Assets under construction (4) 14,379 — 14,379 Right-of-use assets (5) 14,615 398 14,217 Other property, plant and equipment: Land 8,203 — 8,203 Buildings 81,053 31,519 49,534 Office and production equipment (6) 38,485 31,360 7,125 Leasehold improvements 7,959 4,775 3,184 135,700 67,654 68,046 $ 519,251 $ 266,355 $ 252,896 As of December 31, 2021 Accumulated Net Book (In thousands of U.S. Dollars) Cost Depreciation Value Equipment leased or held for use: System components (1)(2)(3) $ 346,517 $ 181,936 $ 164,581 Camera equipment 4,855 3,214 1,641 351,372 185,150 166,222 Assets under construction (4) 10,232 — 10,232 Right-of-use assets (5) 14,429 2,297 12,132 Other property, plant and equipment: Land 8,203 — 8,203 Buildings 80,973 28,873 52,100 Office and production equipment (6) 39,017 31,169 7,848 Leasehold improvements 8,110 4,494 3,616 136,303 64,536 71,767 $ 512,336 $ 251,983 $ 260,353 (1) Included in system components are assets with costs of $ 7.6 million (2021 — $ 7.6 million ) and accumulated depreciation of $ 7.2 million (2021 — $ 7.0 million ) that are leased to customers under operating leases. (2) Included in system components are assets with costs of $ 323.7 million (2021 — $ 324.3 million ) and accumulated depreciation of $ 177.9 million (2021 — $ 166.5 million ) that are used in joint revenue sharing arrangements. (3) In 2022, the Company recorded charges of $ 1.0 million (2021 — $ 0.4 million ; 2020 — $ 1.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems, as well as an IMAX System that was removed from its existing location. (4) Included in assets under construction are components with costs of $ 9.1 million (2021 — $ 9.2 million ) that will be utilized to construct assets to be used in joint revenue sharing arrangements. (5) The right-of-use assets primarily include operating leases for office and warehouse space. (6) Fully depreciated office and production equipment is still in use by the Company. In 2022, the Company identified and wrote off $ 3.5 million (2021 — $ 0.5 million ) of office and production equipment that is fully depreciated and no longer in use. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of Other Assets | As of December 31, (In thousands of U.S. Dollars) 2022 2021 Lease incentives provided to exhibitor customers, net of accumulated amortization $ 12,975 $ 14,834 Commissions and other deferred selling expenses 1,336 1,418 Other investments 1,000 1,000 Foreign currency derivatives 50 184 Other 304 363 $ 15,665 $ 17,799 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Loss) Income Before Taxes by Jurisdiction | (a) (Loss) Income Before Taxes by Jurisdiction (Loss) income before taxes by tax jurisdiction for the years ended December 31, 2022, 2021, and 2020 consists of the following: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Canada $ ( 55,623 ) $ ( 55,480 ) $ ( 104,166 ) United States 4,281 3,218 ( 6,437 ) China 11,466 53,792 ( 8,253 ) Ireland 24,070 829 ( 7,473 ) Other 6,037 8,628 ( 2,795 ) $ ( 9,769 ) $ 10,987 $ ( 129,124 ) |
Schedule of Income Tax (Expense) Benefit | (b) Income Tax (Expense) Benefit Income tax (expense) benefit for the years ended December 31, 2022, 2021, and 2020 consists of the following: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Income tax (expense) benefit – current: Canada $ ( 1,149 ) $ ( 915 ) $ 555 United States ( 274 ) ( 1,038 ) 488 China ( 4,437 ) ( 11,045 ) ( 1,980 ) Ireland ( 2,802 ) ( 1,358 ) ( 1,462 ) Other ( 3,519 ) ( 3,212 ) ( 487 ) Sub-total ( 12,181 ) ( 17,568 ) ( 2,886 ) Income tax (expense) benefit – deferred: Canada (1) 943 ( 231 ) ( 10,801 ) United States ( 131 ) ( 1,268 ) 867 China (2) 2,763 ( 381 ) ( 15,756 ) Ireland ( 1,562 ) ( 997 ) 2,161 Other 60 ( 119 ) ( 89 ) Sub-total 2,073 ( 2,996 ) ( 23,618 ) Total (3) $ ( 10,108 ) $ ( 20,564 ) $ ( 26,504 ) (1) A valuation allowance is recorded in jurisdictions where management has determined, based on the weight of all available evidence, both positive and negative, that a valuation allowance for deferred tax assets is required. For the year ended December 31, 2022, the Company recorded a $ 16.9 million valuation allowance against its deferred tax assets in Canada and China primarily as a result of uncertainties related to the long-term impact of the COVID-19 pandemic (2021 — $ 17.2 million ). The $ 16.9 million increase in the valuation allowance recorded in 2022 is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations. (2) T he Company's deferred tax liability of $ 17.6 million as of December 31, 2021 was for the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinvested, which will become payable upon the repatriation of any such earnings. During the year ended December 31, 2022, $ 27.4 million of historical earnings from a subsidiary in China were distributed and, as a result, $ 2.7 million of foreign withholding taxes were paid to the relevant tax authorities. The remaining deferred tax liability on the Company’s Consolidated Balance Sheets as of December 31, 2022 is $ 14.9 million . (3) For the year ended December 31, 2022 , Income Tax (Expense) Benefit excludes a tax expense of $ 0.8 million included in Other Comprehensive (Loss) Income ( 2021 — benefit of $ 0.3 million; 2020 — benefit of $ 0.1 million ). |
Schedule of Reconciliation of Income Tax Expense to Statutory Rates | (c) Reconciliation of Income Tax Expense to Statutory Rates For the years ended December 31, 2022, 2021, and 2020, the Company’s effective tax rate and income tax expense differs from the combined Canadian federal and provincial statutory income tax rates due to the following factors: Years Ended December 31, 2022 2021 2020 (In thousands of U.S. Dollars, except rates) Amount Rate Amount Rate Amount Rate Income tax benefit (expense) at combined statutory rates $ 2,596 26.5 % $ ( 2,912 ) 26.5 % $ 34,218 26.5 % Adjustments resulting from: Non-controlling interests share of partnership losses — 0.0 % ( 1 ) 0.0 % ( 1,229 ) ( 1.0 %) Increase in valuation allowance ( 16,848 ) ( 172.5 %) ( 14,722 ) 134.0 % ( 28,589 ) ( 22.1 %) Changes to tax reserves 1,643 16.8 % 3,508 ( 31.9 %) ( 2,699 ) ( 2.1 %) U.S. federal and state taxes ( 86 ) ( 0.9 %) ( 80 ) 0.7 % ( 250 ) ( 0.2 %) Withholding taxes ( 3,825 ) ( 39.2 %) ( 4,199 ) 38.2 % ( 20,943 ) ( 16.2 %) Income tax at different rates in foreign and other provincial jurisdictions 3,872 39.6 % 3,352 ( 30.5 %) ( 2,607 ) ( 2.0 %) Investment and other tax credits (non-refundable) 752 7.7 % 413 ( 3.8 %) 643 0.5 % Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments 2,278 23.3 % ( 5,336 ) 48.6 % ( 1,219 ) ( 0.9 %) Other non-deductible/non-taxable items ( 490 ) ( 4.9 %) ( 587 ) 5.4 % ( 3,829 ) ( 3.0 %) Income tax expense $ ( 10,108 ) ( 103.6 %) $ ( 20,564 ) 187.2 % $ ( 26,504 ) ( 20.5 %) |
Deferred Tax Assets and Deferred Tax Liability | (d) Deferred Tax Assets and Deferred Tax Liability As of December 31, 2022 and 2021, the Company’s deferred tax assets and deferred tax liability consists of the following: As of December 31, (In thousands of U.S. Dollars) 2022 2021 Net operating loss carryforwards $ 29,158 $ 21,219 Investment tax credit and other tax credit carryforwards 5,213 3,919 Write-downs of other assets 2,341 1,223 Excess of tax accounting basis in various assets 14,549 13,929 Accrued pension liability 5,375 6,901 Accrued share-based compensation 8,920 7,728 Income recognition on net investment in leases ( 3,344 ) ( 3,368 ) Other accrued reserves 10,552 8,369 Total deferred income tax assets 72,764 59,920 Valuation allowance ( 62,864 ) ( 46,014 ) Deferred income tax asset net of valuation allowance 9,900 13,906 Deferred tax liability ( 14,900 ) ( 17,642 ) Net deferred tax liability $ ( 5,000 ) $ ( 3,736 ) |
Reconciliation of Beginning and Ending Amount of Tax Reserves (excluding interest and penalties) | The following table presents a reconciliation of the beginning and ending amount of tax reserves (excluding interest and penalties) for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Balance at beginning of the year $ 11,939 $ 14,076 $ 14,718 Additions based on tax positions related to the current year 11 37 2,301 Reductions for tax positions of prior years ( 94 ) ( 991 ) — Reductions resulting from lapse of applicable statute of limitations and ( 2,123 ) ( 1,183 ) ( 2,943 ) Balance at the end of the year $ 9,733 $ 11,939 $ 14,076 |
Income Tax (Expense) Benefit in Other Comprehensive Income | For the years ended December 31, 2022, 2021, and 2020, Income Tax (Expense) Benefit related to the components of Other Comprehensive (Loss) Income is as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized defined benefit plan actuarial (gain) loss $ ( 198 ) $ ( 37 ) $ 276 Unrealized postretirement benefit plans actuarial (gain) loss ( 762 ) ( 35 ) 92 Amortization of prior service cost ( 48 ) ( 48 ) ( 23 ) Unrealized change in cash flow hedging instruments 346 ( 123 ) ( 132 ) Realized change in cash flow hedging instruments ( 156 ) 446 ( 158 ) Reclassification of unrealized change in ineffective cash flow hedging instruments — 83 — $ ( 818 ) $ 286 $ 55 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | As of December 31, 2022 Accumulated Net Book (In thousands of U.S. Dollars) Cost Amortization Value Licenses and intellectual property $ 26,168 $ 15,232 $ 10,936 Internal use software 32,886 25,232 7,654 Developed technology 5,779 225 5,554 In process research and development 3,810 — 3,810 Patents and trademarks 13,031 9,771 3,260 Customer relationships 1,340 50 1,290 Other 769 535 234 $ 83,783 $ 51,045 $ 32,738 As of December 31, 2021 Accumulated Net Book (In thousands of U.S. Dollars) Cost Amortization Value Licenses and intellectual property $ 26,168 $ 13,642 $ 12,526 Internal use software 28,571 21,544 7,027 Patents and trademarks 12,834 9,406 3,428 Other 598 499 99 $ 68,171 $ 45,091 $ 23,080 |
Summary of Estimated Amortization Expenses | The estimated amortization expense for each of the next five years following the December 31, 2022 balance sheet date is as follows: (In thousands of U.S. Dollars) 2023 $ ( 7,821 ) 2024 ( 7,636 ) 2025 ( 5,456 ) 2026 ( 3,059 ) 2027 ( 3,099 ) |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility Borrowings | As of December 31, 2022 and 2021, Revolving Credit Facility Borrowings, Net includes the following: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Wells Fargo Credit Facility borrowings $ 25,000 $ — HSBC China Facility borrowings 12,496 — Bank of China Facility borrowings 374 3,612 Unamortized debt issuance costs ( 1,759 ) ( 1,140 ) Revolving Credit Facility Borrowings, net $ 36,111 $ 2,472 Wells Fargo |
Summary of Convertible Notes and Other Borrowings, Net | As of December 31, 2022 and December 31, 2021, Convertible Notes and Other Borrowings, Net includes the following: December 31, December 31, (In thousands of U.S. Dollars) 2022 2021 Convertible Notes $ 230,000 $ 230,000 Unamortized discounts and debt issuance costs ( 4,870 ) ( 6,359 ) Convertible Notes, net 225,130 223,641 Federal Economic Development Loan 2,812 N/A Unaccreted interest benefit ( 1,030 ) N/A Federal Economic Development Loan, net 1,782 N/A Convertible Notes and Other Borrowings, net $ 226,912 $ 223,641 Convertible Notes |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Company's Contractual Obligations and Commitments | The following table presents a summary of the Company’s contractual obligations and commitments as of December 31, 2022: Payments Due by Period (In thousands of U.S. Dollars) Total Less Than One Year 1 to 3 years 3 to 5 years Thereafter Purchase obligations (1) $ 37,884 $ 34,419 $ 3,183 $ 37 $ 245 Pension obligations (2) 20,295 — — 20,295 — Operating lease obligations (3) 18,013 3,905 5,825 4,137 4,146 Finance lease obligations 1,016 508 508 — — Wells Fargo Facility 25,000 — — 25,000 — HSBC Facility 12,496 12,496 — — — Bank of China Facility 374 374 — — — Federal Economic Development Loan (4) 2,812 — 1,250 1,250 312 Convertible Notes (5) 234,025 1,150 2,300 230,575 — Postretirement benefits obligations 2,504 104 210 220 1,970 $ 354,419 $ 52,956 $ 13,276 $ 281,514 $ 6,673 (1) Represents total payments to be made under binding commitments with suppliers and outstanding payments to be made for supplies ordered, but yet to be invoiced. (2) The Company has an unfunded defined benefit pension plan covering its Chief Executive Officer. (See Note 24 .) (3) Represents total minimum annual rental payments due under the Company’s operating leases. (See Note 7 .) (4) The Federal Economic Development Loan will be repayable over 60 months, with repayments estimated to begin in January 2024. (See Note 15 (b).) (5) The Convertible Notes bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021 . The Convertible Notes will mature on April 1, 2026 , unless earlier repurchased, redeemed or converted. (See Note 15 (b).) |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Changes During the Year | The following table summarizes the settlement of stock option and RSU transactions: Years Ended December 31, 2022 2021 2020 Stock options Issued from treasury — 41,613 — Plan trustee purchases — — — Total stock options exercised — 41,613 — RSUs Issued from treasury 596,277 531,629 42,982 Plan trustee purchases — 723 386,297 Shares withheld for tax withholdings 203,956 157,546 24,714 Total RSUs vested 800,233 689,898 453,993 |
Share-Based Compensation Expense | Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Cost and expenses applicable to revenues $ 1,156 $ 1,490 $ 691 Selling, general and administrative expenses 25,438 23,776 20,652 Research and development 419 348 150 $ 27,013 $ 25,614 $ 21,493 |
Stock Option Plan | The Company recorded the following expenses related to stock options issued to employees and directors under the IMAX LTIP and SOP: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Stock option expense $ 572 $ 1,064 $ 1,847 |
Non vested stock options | As of December 31, 2022, 2021, and 2020, unrecognized share-based compensation expense related to non-vested employee stock options is as follows: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Expense related to non-vested employee stock options $ 86 $ 662 $ 2,029 As of 2022, 2021, and 2020, unrecognized share-based compensation expense related to non-vested employee stock options is expected to be recognized over the following weighted-average periods: As of December 31, 2022 2021 2020 Weighted average period (in years) 0.2 1.1 1.8 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the stock option activity under the SOP and IMAX LTIP for the years ended December 31, 2022, 2021, and 2020: Weighted Average Exercise Number of Shares Price Per Share 2022 2021 2020 2022 2021 2020 Stock options outstanding, beginning of year 3,736,157 4,892,962 5,732,209 $ 26.61 $ 26.81 $ 26.82 Granted — — — — — — Exercised — ( 41,613 ) — — 21.23 — Forfeited ( 796 ) ( 88,934 ) ( 34,678 ) 22.49 22.49 22.49 Expired ( 126,569 ) ( 903,038 ) ( 786,086 ) 33.61 28.31 27.07 Cancelled ( 4,053 ) ( 123,220 ) ( 18,483 ) 27.92 26.68 27.97 Stock options outstanding, end of year 3,604,739 3,736,157 4,892,962 26.36 26.61 26.81 Stock options exercisable, end of year 3,523,335 3,488,107 4,311,761 26.45 26.93 27.30 |
RSU Expenses | RSUs have been granted to employees and directors under the IMAX LTIP. Each RSU represents a contingent right to receive a common share and is the economic equivalent of one common share. The grant date fair value of each RSU is equal to the share price of the Company’s stock at the grant date or the average closing price of the Company’s common stock for five days prior to the date of grant. For the years ended December 31, 2022, 2021, and 2020, the Company recorded the following expenses related to RSUs issued to employees and directors in the IMAX LTIP: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 RSU expenses $ 15,498 $ 15,555 $ 13,761 |
RSU Unrecognized Expenses | Total share-based compensation expense related to non-vested RSUs not yet recognized and the weighted average period over which the awards are expected to be recognized are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Expense related to non-vested RSUs not yet recognized $ 17,457 $ 15,913 $ 17,343 Weighted average period awards are expected to be recognized (in years) 1.5 1.6 1.9 |
Restricted Stock Units Issued under the IMAX LTIP | The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the years ended December 31, 2022, 2021, and 2020: Number of Awards Weighted Average Grant Date Fair 2022 2021 2020 2022 2021 2020 RSUs outstanding, beginning of year 1,457,883 1,564,838 1,065,347 $ 19.16 $ 18.33 $ 23.17 Granted 708,313 831,123 1,050,385 19.31 21.03 15.35 Vested and settled ( 800,231 ) ( 689,872 ) ( 453,993 ) 19.10 19.46 22.71 Forfeited ( 113,921 ) ( 248,206 ) ( 96,901 ) 20.39 19.38 18.81 RSUs outstanding, end of year 1,252,044 1,457,883 1,564,838 19.16 19.16 18.33 |
RSU Carve out Balance | The following table summarizes the number of RSUs issued from the carve-out balance: Approved under the June 3, 2020 amended and restated IMAX LTIP 885,000 Issued during previous years ( 482,912 ) Issued during 2022 ( 59,030 ) Outstanding, December 31, 2022 343,058 |
PSU Expenses | For the years ended December 31, 2022, 2021, and 2020, the Company recorded the following expenses related to outstanding PSUs, which includes adjustments reflecting management’s estimate of the number of PSUs with EBITDA-based targets expected to vest: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 PSU expenses $ 8,306 $ 5,322 $ 2,563 |
Performance Stock Units Activity under the IMAX LTIP | The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP: Number of Awards Weighted Average Grant Date 2022 2021 2020 2022 2021 2020 PSUs outstanding, beginning of year 613,405 361,844 — $ 18.21 $ 15.68 $ — Granted 359,138 309,574 370,265 20.34 20.77 15.66 Forfeited ( 40,827 ) ( 58,013 ) ( 8,421 ) 19.90 16.11 4.84 PSUs outstanding, end of year 931,716 613,405 361,844 18.96 18.21 15.68 |
China LTIP Activity | For the years ended December 31, 2022, 2021, and 2020, share-based compensation expense related to China Options, China RSUs and China PSUs was as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Expense China Options $ 91 $ 285 $ 875 China RSUs 2,284 2,810 2,093 China PSUs 262 578 208 Total $ 2,637 $ 3,673 $ 3,176 |
Summary of Share Repurchases | The following table summarizes the Company's share repurchases during the years ended December 31, 2022 and 2021: Total Number of Shares Repurchased Average Price Paid Per Share (in thousands of U.S. Dollars) 2022 2021 2022 2021 Shares repurchased 5,401,852 841,331 $ 15.19 $ 16.51 |
Basic and Diluted Per-share Computations | The following table reconciles the denominator of the basic and diluted weighted average share computations: Years Ended December 31, (In thousands) 2022 2021 2020 Issued and outstanding, beginning of period 58,654 58,921 61,176 Weighted average number of shares (repurchased) issued, net ( 1,980 ) 205 ( 1,939 ) Weighted average number of shares outstanding - basic and diluted 56,674 59,126 59,237 |
IMAX China | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Share Repurchases | The following table summarizes the IMAX China's share repurchases during the years ended December 31, 2022 and 2021: Total Number of Shares Repurchased Average Price Paid Per Share (in thousands of U.S. Dollars) 2022 2021 2022 2021 Shares repurchased 2,961,800 6,664,700 $ 1.02 $ 1.50 |
Consolidated Statements of Op_3
Consolidated Statements of Operations Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Selling Expenses, Including Sales Commissions and Marketing and Other Expenses | The following table summarizes the Company’s selling expenses, including sales commissions and marketing and other, which are recognized within Costs and Expenses Applicable to Revenues in the Consolidated Statements of Operations, for the years ended December 31, 2022, 2021 and 2020: Years Ended December 31, 2022 2021 2020 (In thousands of U.S. Dollars) Sales Marketing and Other Sales Marketing and Other Sales Marketing and Other Technology sales (1) $ 479 $ 810 $ 1,885 $ 989 $ 1,278 $ 1,077 Image enhancement and maintenance services (2) — 20,284 — 8,923 — 4,306 Technology rentals (3) 85 663 399 1,109 908 510 Total $ 564 $ 21,757 $ 2,284 $ 11,021 $ 2,186 $ 5,893 (1) Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System. Direct advertising and marketing costs for each IMAX System are expensed as incurred. (2) Film exploitation costs, including advertising and marketing costs are expensed as incurred. (3) Sales commissions related to joint revenue sharing arrangements accounted for operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed. Direct advertising and marketing costs for each IMAX System are expensed as incurred. |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Changes in Other Operating Assets and Liabilities | Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Decrease (Increase) in: Financing receivables $ 5,411 $ ( 7,637 ) $ ( 10,568 ) Prepaid expenses ( 1,892 ) ( 3,230 ) ( 979 ) Variable consideration receivables 667 ( 2,905 ) ( 2,361 ) Other assets 968 1,003 ( 4,747 ) Increase (Decrease) in: Accounts payable 8,496 ( 4,752 ) 414 Accrued and other liabilities ( 12,849 ) 15,167 ( 6,399 ) $ 801 $ ( 2,354 ) $ ( 24,640 ) |
Cash Payments | Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Income taxes (1) $ 13,963 $ 18,475 $ 4,763 Interest $ 715 $ 3,251 $ 5,773 (1) In 2021 , the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $ 8.9 million in income taxes and $ 1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $ 8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $ 1.6 million in associated interest. |
Summary of Depreciation and Amortization | Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Film assets $ 16,881 $ 16,316 $ 8,838 Property, plant and equipment: Equipment supporting joint revenue sharing arrangements 22,165 22,320 24,930 Other property, plant and equipment (1) 9,757 9,479 11,225 Other intangible assets (2) 6,103 6,079 6,565 Other assets (3) 1,755 1,888 1,146 Total $ 56,661 $ 56,082 $ 52,704 (1) Includes the amortization of laser projection systems, camera, and lens upgrades recorded in Research and Development on the Statements of Operations of $ 0.6 million in the year ended December 31, 2022 (2021 — $ 0.8 million; 2020 — $ 0.9 million). (2) Includes the amortization of licenses and intellectual property recorded in Research and Development on the Consolidated Statements of Operations of $ 1.3 million in the year ended December 31, 2022 (2021 — $ 1.3 million; 2020 — $ 1.3 million). (3) Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements. |
Write Downs, Net of Recoveries | Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Other assets (1) $ 4,470 $ — $ 1,151 Inventories (2) 741 890 3,632 Property, plant and equipment: Equipment supporting joint revenue sharing arrangements (3) 973 364 1,784 Other property, plant and equipment 57 217 174 Other intangible assets 87 142 184 Film assets (4) 848 151 10,804 $ 7,176 $ 1,764 $ 17,729 (1) In 2022 , the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020 , the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such write-downs including asset impairments were incurred in 2021. (2) In 2022 , the Company recorded write-downs of $ 0.9 million, net of a recovery of $ 0.2 million in Costs and Expenses Applicable to Technology Sales. The write-downs recorded during the year ended December 31, 2022 include $ 0.4 million related to excess and damaged inventory and $ 0.3 million recorded to reduce the carrying value of service parts held in Russia . For the years ended December 31, 2021 and 2020 , the Company recorded write-downs of $ 0.9 million and $ 3.6 million, respectively, in Costs and Expenses Applicable to Technology Sales to reduce the carrying value of excess inventory. (3) In 2022 , the Company recorded charges of $ 1.0 million ( 2021 — $ 0.4 million; 2020 — $ 1.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-downs of leased xenon-based digital systems which were taken out of service in connection with exhibitor customer upgrades to laser-based digital systems, as well as an IMAX System that was removed from its existing location. (4) In 2022 , the Company recorded impairment losses of $ 0.8 million ( 2021 — $ 0.2 million) related to the write-down of DMR and documentary film assets. In 2020, the Company recorded impairment losses of $ 10.8 million principally to write-down the carrying value of certain documentary, alternative content film assets and DMR related film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. |
Significant Non-cash Investing Activities | Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Net increase (decrease) in accruals related to: Investment in equipment supporting joint revenue sharing arrangements $ 790 $ 1,009 $ ( 1,888 ) Acquisition of other intangible assets 30 ( 891 ) 792 Purchases of property, plant and equipment (1) 311 ( 188 ) 158 $ 1,131 $ ( 70 ) $ ( 938 ) (1) See Note 7 for supplemental disclosure of noncash leasing activities. (f) Significant non-cash financing activities In the fourth quarter of 2022, the Company recognized a $ 2.0 million liability related to repurchase of its common shares, which were not settled as of December 31, 2022 and were related on the Consolidated Balance Sheets within Accrued and Other Liabilities. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Segment | The following tables summarize the Company’s revenues by type and reportable segment for the years ended December 31, 2022, 2021, and 2020: Year Ended December 31, 2022 Revenue from Contracts with Customers (In thousands of U.S. Dollars) Fixed Variable Revenue from Lease Finance Income Total Technology sales IMAX Systems (1) $ 43,704 $ 7,268 $ 3,479 $ — $ 54,451 Joint Revenue Sharing Arrangements, fixed fees — — 4,804 — 4,804 Other Theater Business 6,255 — — — 6,255 All Other 3,546 102 — — 3,648 Sub-total 53,505 7,370 8,283 — 69,158 Image enhancement and maintenance services IMAX DMR — 94,867 — — 94,867 IMAX Maintenance 56,608 — — — 56,608 Film Distribution 554 2,598 — — 3,152 Film Post-Production 3,783 — — — 3,783 All Other 1,178 1,791 — — 2,969 Sub-total 62,123 99,256 — — 161,379 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 61,768 — 61,768 All Other — — 18 — 18 Sub-total — — 61,786 — 61,786 Finance income IMAX Systems — — — 8,482 8,482 Total $ 115,628 $ 106,626 $ 70,069 $ 8,482 $ 300,805 Year Ended December 31, 2021 Revenue from Contracts with Customers (In thousands of U.S. Dollars) Fixed Variable Revenue from Lease Finance Income Total Technology sales IMAX Systems (1) $ 37,900 $ 5,576 $ 11,392 $ — $ 54,868 Joint Revenue Sharing Arrangements, fixed fees — — 5,406 — 5,406 Other Theater Business 2,363 — — — 2,363 All Other 3,475 41 — — 3,516 Sub-total 43,738 5,617 16,798 — 66,153 Image enhancement and maintenance services IMAX DMR — 70,659 — — 70,659 IMAX Maintenance 53,339 — — — 53,339 Film Distribution 205 1,259 — — 1,464 Film Post-Production 4,260 — — — 4,260 All Other 377 1,049 — — 1,426 Sub-total 58,181 72,967 — — 131,148 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 46,184 — 46,184 All Other — — 606 — 606 Sub-total — — 46,790 — 46,790 Finance income IMAX Systems — — — 10,792 10,792 Total $ 101,919 $ 78,584 $ 63,588 $ 10,792 $ 254,883 Year Ended December 31, 2020 Revenue from Contracts with Customers (In thousands of U.S. Dollars) Fixed Variable Revenue from Lease Finance Income Total Technology sales IMAX Systems (1) $ 33,869 $ 5,799 $ 4,271 $ — $ 43,939 Joint Revenue Sharing Arrangements, fixed fees — — 2,056 — 2,056 Other Theater Business 1,666 — — — 1,666 All Other 1,957 110 — — 2,067 Sub-total 37,492 5,909 6,327 — 49,728 Image enhancement and maintenance services IMAX DMR — 28,265 — — 28,265 IMAX Maintenance 21,999 — — — 21,999 Film Distribution 3,000 1,841 — — 4,841 Film Post-Production 3,878 — — — 3,878 All Other — 335 — — 335 Sub-total 28,877 30,441 — — 59,318 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 17,841 — 17,841 Sub-total — — 17,841 — 17,841 Finance income IMAX Systems — — — 10,116 10,116 Total $ 66,369 $ 36,350 $ 24,168 $ 10,116 $ 137,003 (1) Includes revenues earned from sale and sales-type lease arrangements involving new and upgraded IMAX Systems, as well as the impact of renewals and amendments to existing system arrangements. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Information by Category and Reportable Segment | The following table presents the Company’s revenue and gross margin (margin loss) by category and reportable segment for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, Revenue (1) Gross Margin (Margin Loss) (In thousands of U.S. Dollars) 2022 2021 2020 2022 2021 2020 IMAX Technology Network IMAX DMR $ 94,867 $ 70,659 $ 28,265 $ 57,964 $ 44,782 $ 13,731 JRSA, contingent rent 61,768 46,184 17,841 37,394 21,761 ( 9,500 ) 156,635 116,843 46,106 95,358 66,543 4,231 IMAX Technology Sales and Maintenance IMAX Systems (2) 62,933 65,660 54,055 35,129 34,981 24,816 JRSA, fixed fees 4,804 5,406 2,056 589 1,343 529 IMAX Maintenance 56,608 53,339 21,999 27,109 27,572 3,068 Other Theater Business (3) 6,255 2,363 1,666 807 398 ( 438 ) 130,600 126,768 79,776 63,634 64,294 27,975 Film Distribution and Post-Production Film Distribution (4) 3,152 1,464 4,841 ( 7,668 ) ( 1,121 ) ( 9,840 ) Post-Production 3,783 4,260 3,878 1,540 1,969 ( 358 ) 6,935 5,724 8,719 ( 6,128 ) 848 ( 10,198 ) Sub-total for reportable segments 294,170 249,335 134,601 152,864 131,685 22,008 All Other (5) 6,635 5,548 2,402 3,491 2,721 ( 468 ) Total $ 300,805 $ 254,883 $ 137,003 $ 156,355 $ 134,406 $ 21,540 The following table presents the Company’s assets by category and reportable segment, reconciled to consolidated assets, as of December 31, 2022 and 2021: As of December 31, (In thousands of U.S. Dollars) 2022 2021 IMAX Technology Network IMAX DMR $ 48,755 $ 48,299 JRSA, contingent rent 193,403 196,789 IMAX Technology Sales and Maintenance IMAX Systems 255,458 249,672 JRSA, fixed fees 26,574 27,930 IMAX Maintenance 48,764 38,530 Other Theater Business 110 82 Film Distribution and Post-Production Film Distribution 11,545 7,185 Post-Production 32,406 31,575 Sub-total for reportable segments 617,015 600,062 All Other (5) 29,686 1,420 Corporate and other non-segment specific assets 174,453 281,765 Total $ 821,154 $ 883,247 The following table presents the Company’s amortization by category and reportable segment, and on a consolidated basis, for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 IMAX Technology Network IMAX DMR $ 16,367 $ 15,917 $ 10,269 JRSA, contingent rent 23,920 24,208 26,076 IMAX Technology Sales and Maintenance IMAX Systems 169 2,076 3,548 IMAX Maintenance — — 213 Film Distribution and Post-Production Film Distribution 2,423 600 1,213 Post-Production — 924 1,281 Sub-total for reportable segments 42,879 43,725 42,600 All Other (5) 309 — 11 Corporate and other non-segment specific assets 13,473 12,357 10,093 Total $ 56,661 $ 56,082 $ 52,704 The following table presents the Company’s write-downs, including asset impairments and credit loss expense (reversal), by category and reportable segment, and on a consolidated basis, for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 IMAX Technology Network IMAX DMR $ 29 $ 151 $ 1,057 JRSA, contingent rent 973 364 1,784 IMAX Technology Sales and Maintenance IMAX Systems 150 837 2,872 IMAX Maintenance 591 53 510 Film Distribution and Post-Production Film Distribution (4) 819 — 9,997 Post-Production — — — Sub-total for reportable segments 2,562 1,405 16,220 All Other (5) — — 52 Corporate and other non-segment specific assets (6) 13,161 ( 3,592 ) 20,065 Total $ 15,723 $ ( 2,187 ) $ 36,337 The following table presents the Company’s purchases of fixed assets within the Consolidated Statements of Cash Flows by category and reportable segment for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 IMAX Technology Network IMAX DMR $ — $ — $ — JRSA, contingent rent 19,803 10,094 6,654 IMAX Technology Sales and Maintenance IMAX Systems 2,574 621 50 IMAX Maintenance 4 25 — Film Distribution and Post-Production Film Distribution 4,126 1,599 — Post-Production 1,195 609 456 Sub-total for reportable segments 27,702 12,948 7,160 All Other (5) 9 — — Corporate and other non-segment specific assets 516 736 191 Total $ 28,227 $ 13,684 $ 7,351 (1) The Company’s largest customer represents 12 % of total Revenues as of December 31, 2022 (2021 ― 10 % ; 2020 ― 16 % ). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2022 and 2021 . (2) The revenue from this segment includes the initial upfront payments and the present value of fixed minimum payments from sale and sales-type lease arrangements of IMAX Systems, as well as the present value of estimated variable consideration from sales of IMAX Systems. To a lesser extent, the revenue from this segment also includes finance income associated with these revenue streams. (3) The revenue from this segment principally includes after-market sales of IMAX projection system parts and 3D glasses. (4) For the year ended December 31, 2022 , the Company recorded an impairment loss of $ 0.8 million related to the write-down of documentary film assets. During the year ended December 31, 2020 , Film Distribution segment results were significantly influenced by impairment losses of $ 10.0 million, to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. No such impairment losses were incurred in 2021. (5) All Other includes the results from IMAX Enhanced, SSIMWAVE, and other ancillary activities. In the first quarter of 2022, the Company's internal reporting was updated to reclassify the results of IMAX Enhanced out of the New Business Initiatives segment into All Other for segment reporting purposes. Prior period comparatives have been revised to conform with the current period presentation. (See Note 5 for additional information related to the Company's acquisition of SSIMWAVE. ) (6) During the year ended December 31, 2022 , includes provision of current expected credit losses of $ 8.5 million ( 2021 ― net reversal of $ 4.0 million; 2020 ― provision of $ 18.6 million). (See Note 6 .) In 2022, the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020, the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such impairment losses were incurred in 2021. These amounts are excluded from the measurement of the Company’s segment performance. |
Geographic Information | The following table summarizes the Company’s revenues by geographic area for the years ended December 31, 2022, 2021, and 2020: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 United States $ 107,734 $ 73,499 $ 30,157 Greater China 73,330 112,801 52,331 Asia (excluding Greater China) 47,145 23,682 20,090 Western Europe 40,245 20,942 13,683 Latin America 9,418 3,601 6,114 Canada 7,550 3,266 1,365 Russia/the CIS & Ukraine (1) 2,849 7,308 2,927 Rest of the World 12,534 9,784 10,336 Total $ 300,805 $ 254,883 $ 137,003 (1) In addition to Russia, the CIS includes Azerbaijan, Belarus, Kazakhstan, and Kyrgyzstan. Commencing i n March 2022, in response to the ongoing conflict between Russia and Ukraine and resulting sanctions, the Company suspended its operations in Russia and Belarus. As of December 31, 2022, the IMAX network includes 54 systems in Russia, eight systems in Ukraine, and one system in Belarus. |
Schedule of Property Plant and Equipment By Geographic Areas | The following table presents the breakdown of Property, Plant and Equipment by geography as of December 31, 2022 and 2021: As of December 31, (In thousands of U.S. Dollars) 2022 2021 United States $ 94,505 $ 91,856 Greater China 86,665 100,182 Canada 36,385 32,643 Western Europe 20,132 21,684 Asia (excluding Greater China) 10,471 9,463 Rest of the World 4,738 4,525 Total $ 252,896 $ 260,353 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments Gain Loss [Line Items] | |
Fair Value of Financial Instruments | The carrying values of the Company’s Cash and Cash Equivalents, Accounts Receivable, Accounts Payable, and Accrued Liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As of December 31, 2022 As of December 31, 2021 (In thousands of U.S. Dollars) Carrying Estimated Carrying Estimated Level 1 Cash and cash equivalents (1) $ 97,401 $ 97,401 $ 189,711 $ 189,711 Equity securities (2) 1,035 1,035 1,087 1,087 Level 2 Net financed sales receivables (3) $ 101,052 $ 100,059 $ 112,657 $ 112,662 Net investment in sales-type leases (3) 28,332 27,972 28,392 28,407 Equity securities (1) 1,000 1,000 1,000 1,000 COLI (4) 3,398 3,398 3,275 3,275 Foreign exchange contracts — designated forwards (2) ( 649 ) ( 649 ) 79 79 Wells Fargo Credit Facility borrowings (1) ( 25,000 ) ( 25,000 ) — — HSBC China Facility borrowings (1) ( 12,496 ) ( 12,496 ) — — Bank of China Facility borrowings (1) ( 374 ) ( 374 ) ( 3,612 ) ( 3,612 ) Federal Economic Development Loan (3) ( 1,782 ) ( 1,782 ) N/A N/A Convertible Notes (5) ( 230,000 ) ( 196,717 ) ( 230,000 ) ( 223,100 ) Level 3 Interest in film classified as a financial instrument (6) $ — $ — $ — $ — (1) Recorded at cost, which approximates fair value. (2) Fair value is determined using quoted prices in active markets. (3) Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms. (4) Measured at cash surrender value, which approximates fair value. (5) Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data. (6) Recorded at amortized cost less impairment losses. Inputs used in the calculation of estimated fair value include management's projection of future box office and ancillary receipts for the film net of distribution costs and other costs in accordance with the investment agreement. See 23 (e) below. |
Notional Amount of Derivative | The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Consolidated Financial Statements: Notional value of foreign exchange contracts : As of December 31, (In thousands of U.S. Dollars) 2022 2021 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 24,707 $ 26,702 |
Fair Value of Foreign Exchange Contracts | Fair value of derivatives in foreign exchange contracts : As of December 31, (In thousands of U.S. Dollars) Balance Sheet Location 2022 2021 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 50 $ 184 Accrued and other liabilities ( 699 ) ( 105 ) $ ( 649 ) $ 79 |
Derivatives in Foreign Currency Hedging Relationships | Derivatives in foreign currency hedging relationships are as follows : Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Foreign exchange contracts Derivative (Loss) Gain — Forwards Recognized in OCI (Effective Portion) $ ( 1,323 ) $ 468 $ 550 Location of Derivative (Loss) Gain Reclassified from AOCI Years Ended December 31, (In thousands of U.S. Dollars) (Effective Portion) 2022 2021 2020 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ ( 596 ) $ 1,707 $ ( 578 ) Inventories — — ( 26 ) $ ( 596 ) $ 1,707 $ ( 604 ) Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Foreign exchange contracts Derivative Gain Recognized — Forwards In and out of OCI (Effective Portion) $ — $ — $ 17 |
Not Designated as Hedging Instrument [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Derivatives in Foreign Currency Hedging Relationships | Non-designated derivatives in foreign currency relationships are as follows : Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Foreign exchange contracts Derivative Gain Reclassified — Forwards From AOCI (Ineffective Portion) $ — $ ( 318 ) $ — Years Ended December 31, (In thousands of U.S. Dollars) Location of Derivative Gain 2022 2021 2020 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ — $ 398 $ 344 |
Employees Pension and Postret_2
Employees Pension and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SERP Benefits [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Amounts Accrued for the SERP | As of December 31, 2022 and 2021, the projected benefit obligation for SERP are as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 Projected benefit obligation: Obligation, beginning of period $ 20,056 $ 20,116 Interest cost 160 72 Actuarial gain ( 2,901 ) ( 132 ) Obligation, end of period and unfunded status $ 17,315 $ 20,056 |
Summary of Accumulated Other Comprehensive (Loss) Income and Components of Net Periodic Benefit Cost in Future Periods | As of December 31, 2022, 2021, and 2020, the following amounts related to the SERP were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income and will be recognized as components of net periodic benefit cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized actuarial gain $ ( 3,580 ) $ ( 679 ) $ ( 547 ) Unamortized prior service cost — 184 369 Net periodic benefit costs to be recognized in future periods $ ( 3,580 ) $ ( 495 ) $ ( 178 ) |
Summary of Disclosure of Pension Expense | For the years ended December 31, 2022, 2021, and 2020, the components of pension expense related to the SERP were as follows: Years ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Interest cost $ 160 $ 72 $ 379 Amortization of prior service cost 184 185 87 Pension expense $ 344 $ 257 $ 466 |
Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation and Expense | The following assumptions were used to determine the SERP obligation and any related costs as of and for the years ended December 31, 2022, 2021, and 2020: As of December 31, 2022 2021 2020 Discount rate 4.55 % 0.80 % 0.36 % Lump sum interest rate: First 25 years N/A N/A N/A First 20 years N/A N/A N/A Thereafter N/A N/A N/A Cost of living adjustment on benefits N/A N/A N/A |
Postretirement Benefits Executives [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Amounts Accrued for the SERP | As of December 31, 2022 and 2021, the Company’s Consolidated Balance Sheets include the following amounts within Accrued and Other Liabilities related to the Executive Postretirement Benefit Plan: As of December 31, (In thousands of U.S. Dollars) 2022 2021 Projected benefit obligation: Obligation, beginning of year $ 662 $ 710 Interest cost 18 16 Benefits paid ( 8 ) ( 16 ) Actuarial gain ( 215 ) ( 48 ) Obligation, end of year and unfunded status $ 457 $ 662 |
Summary of Accumulated Other Comprehensive (Loss) Income and Components of Net Periodic Benefit Cost in Future Periods | As of December 31, 2022, 2021, and 2020, the following amounts related to the Executive Postretirement Benefit Plan were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income and will be recognized as components of net pension cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized actuarial (gain) loss $ ( 242 ) $ ( 27 ) $ 21 |
Summary of Disclosure of Pension Expense | For the years ended December 31, 2022, 2021, and 2020, the components of pension expense related to the Executive Postretirement Benefit Plan were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Interest cost $ 18 $ 16 $ 20 Amortization of actuarial gain — — ( 17 ) Pension expense $ 18 $ 16 $ 3 |
Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation and Expense | As of December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the benefit obligation related to the Executive Postretirement Benefit Plan are as follows: As of December 31, 2022 2021 2020 Discount rate 5.01 % 2.71 % 2.36 % For the years ended December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the net postretirement benefit expense related to the Executive Postretirement Benefit Plan are as follows: Years Ended December 31, 2022 2021 2020 Discount rate 2.71 % 2.36 % 3.13 % |
Summary of Benefit Payment are Expected in Next Five Year | The following benefit payments are expected to be made as per the current plan assumptions for the Executive Postretirement Benefit Plan in each of the next five years and thereafter following the December 31, 2022 balance sheet date: (In thousands of U.S. Dollars) 2023 $ 10 2024 10 2025 11 2026 23 2027 24 Thereafter 888 Total $ 966 |
Postretirement Benefits Canadian Employees [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Amounts Accrued for the SERP | As of December 31, 2022 and 2021, the Company’s Consolidated Balance Sheets include the following amounts within Accrued and Other Liabilities related to the Canadian Postretirement Benefit Plan: As of December 31, (In thousands of U.S. Dollars) 2022 2021 Projected benefit obligations: Obligation, beginning of year $ 1,702 $ 1,862 Interest cost 46 42 Benefits paid ( 155 ) ( 118 ) Actuarial gain ( 539 ) ( 92 ) Unrealized foreign exchange (gain) loss ( 78 ) 8 Obligation, end of year and unfunded status $ 976 $ 1,702 |
Summary of Accumulated Other Comprehensive (Loss) Income and Components of Net Periodic Benefit Cost in Future Periods | As of December 31, 2022, 2021, and 2020, the following amounts related to the Canadian Postretirement Benefit Plan were recorded on the Company’s Consolidated Balance Sheets within Accumulated Other Comprehensive (Loss) Income and will be recognized as components of net pension cost in future periods: As of December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Unrealized actuarial (gain) loss $ ( 354 ) $ 185 $ 277 |
Summary of Disclosure of Pension Expense | For the years ended December 31, 2022, 2021, and 2020, the components of pension expense related to the Canadian Postretirement Benefit Plan were as follows: Years Ended December 31, (In thousands of U.S. Dollars) 2022 2021 2020 Interest cost $ 46 $ 42 $ 47 Pension expense $ 46 $ 42 $ 47 |
Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation and Expense | As December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the benefit obligation related to the Canadian Postretirement Benefit Plan are as follows: As of December 31, 2022 2021 2020 Discount rate 5.00 % 2.80 % 2.30 % For the years ended December 31, 2022, 2021, and 2020, the weighted average assumptions used to determine the net postretirement benefit expense related to the Canadian Postretirement Benefit Plan are as follows: Years Ended December 31, 2022 2021 2020 Discount rate 2.80 % 2.30 % 3.05 % |
Summary of Benefit Payment are Expected in Next Five Year | The following benefit payments are expected to be made as per the current plan assumptions for the Canadian Postretirement Benefit Plan in each of the next five years and thereafter following the December 31, 2022 balance sheet date: (In thousands of U.S. Dollars) 2023 $ 94 2024 94 2025 95 2026 87 2027 86 Thereafter 1,082 Total $ 1,538 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Movement of the Non-controlling Interest in Temporary Equity in Original Film Fund | The following summarizes the movement of the non-controlling interest in temporary equity, in the Original Film Fund for the years ended December 31, 2022, 2021 and 2020: (In thousands of U.S. Dollars) Balance as of January 1, 2020 $ 5,908 Return of capital to non-controlling interests ( 10 ) Net loss ( 5,139 ) Balance as of December 31, 2020 759 Net loss ( 1 ) Balance as of December 31, 2021 758 Net loss ( 36 ) Balance as of December 31, 2022 $ 722 |
Description of the Business - A
Description of the Business - Additional Information (Details) | Dec. 31, 2022 TheaterSystem Destination Country Institutionallocation Multiplex | Dec. 31, 2021 Institutionallocation Multiplex TheaterSystem Destination Country |
Description of Business (Textuals) [Abstract] | ||
Number of theater systems operating | TheaterSystem | 1,716 | 1,683 |
Number of Countries and Territories in which Entity Operates | Country | 87 | 87 |
Number of commercial multiplexes | Multiplex | 1,633 | 1,599 |
Number of commercial destinations | Destination | 12 | 12 |
Number of institutional locations | Institutionallocation | 71 | 72 |
IMAX China Noncontrolling Interest | ||
Description of Business (Textuals) [Abstract] | ||
Minority Interest Ownership Percentage By Company | 71.73% | 71.11% |
Impact of COVID-19 Pandemic - A
Impact of COVID-19 Pandemic - Additional Information (Details) | Dec. 31, 2022 |
Impact of COVID-19 Pandemic [Member] | IMAX [Member] | Greater China [Member] | |
Impact Of Coronavirus Nineteen Pandemic [Line Items] | |
Percentage of global theater network open | 97% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Feb. 20, 2023 USD ($) | Dec. 31, 2022 USD ($) Theater Lease | Sep. 07, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Other equity | $ | $ 185,678 | $ 174,620 | |||
Non-controlling interests | $ | 65,691 | 73,531 | |||
Total shareholders' equity | $ | $ 329,046 | $ 429,614 | $ 464,008 | ||
Number of variable interest entities | ten | ||||
Period of revenue estimation from initial film release | 10 years | ||||
Fixed contracted theater value | $ | $ 22,900 | ||||
Percentage of statutory net profits to statutory surplus reserve to be appropriated | 10% | ||||
Discontinuation of contribution, Aggregate sum of statutory surplus reserve more than its registered capital, percent | 50% | ||||
Lessee, operating lease, existence of option to extend term | true | ||||
Lessee, operating lease, existence of option to extend description | The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs, and its level of investment in the leasehold improvements, among other factors. | ||||
Lessee, operating lease, assumptions for discount rate | The incremental borrowing rate used in the calculation of the Company’s lease liabilities is based on the location of each leased property. | ||||
Leases include options to purchase leased property | Lease | 0 | ||||
Lessee, operating lease, existence of residual value | false | ||||
Lessee, operating lease, sublease options | The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. | ||||
Pension policy details | 10% | ||||
Remaining weighted average service life of employee | 3.0 years | ||||
Unsecured pre-petition claims related to receivable from bankruptcy entities | $ | $ 11,400 | ||||
CineworldGroupPlc | Trade Agreement [Member] | Subsequent Event | |||||
Significant Accounting Policies [Line Items] | |||||
Proceeds from receivables | $ | $ 7,200 | ||||
Russia [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of backlog theaters | Theater | 14 | ||||
Number of theaters | Theater | 54 | ||||
Ukraine [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of backlog theaters | Theater | 1 | ||||
Number of theaters | Theater | 8 | ||||
Belarus [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of backlog theaters | Theater | 5 | ||||
Number of theaters | Theater | 1 | ||||
Performance Share Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | ||||
Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Assets, Useful Life | 4 years | ||||
Lessee, operating lease, renewal term | 1 year | ||||
Minimum [Member] | Performance Share Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0% | ||||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Assets, Useful Life | 20 years | ||||
Lessee, operating lease, renewal term | 5 years | ||||
Maximum [Member] | Performance Share Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 175% | ||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of variable interest entities primary beneficiary | five | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Number of variable interest entities not a primary beneficiary | five |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - VIEs Total Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 821,154 | $ 883,247 |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 491,386 | 452,875 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | 1,523 | 1,576 |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | $ 248 | $ 259 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives (Details) | 12 Months Ended | |
Dec. 31, 2022 | ||
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant And Equipment, Useful Life, Maximum | Over the shorter of the initial term of the underlying lease plus any reasonably assured renewal | |
Minimum [Member] | Theater System Components [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | [1] |
Minimum [Member] | Camera Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Minimum [Member] | Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Minimum [Member] | Office and Production Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | Theater System Components [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | [1] |
Maximum [Member] | Camera Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum [Member] | Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Maximum [Member] | Office and Production Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
[1] Includes equipment under joint revenue sharing arrangements. |
New Accounting Standards and _2
New Accounting Standards and Accounting Changes - Additional Information (Details) | Dec. 31, 2022 |
ASU 2021-05 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2022 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU 2021-08 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jul. 01, 2022 |
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] | true |
ASU 2021-10 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2022 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 22, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Cash payments | $ 15,939 | ||
Professional fees | 1,100 | ||
Purchase price allocation from goodwill | $ 11,200 | 11,200 | |
SSIMWAVE Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, date of acquisition agreement | Sep. 22, 2022 | ||
Total Purchase Price | $ 23,218 | ||
Cash payments | $ 19,521 | ||
Number of common shares issued | 160,547 | ||
Business combination common shares with fair value | $ 1,947 | ||
Contingent consideration fair value | 1,750 | ||
Business combination maximum amount of possible earn out payment paid to sellers in aggregate amount | 2,000 | ||
Purchase price allocation from goodwill | 11,189 | 11,200 | 11,200 |
Deferred tax liability | $ 2,037 | 2,000 | $ 2,000 |
Additional payment to former shareholders | $ 100 |
Acquisition - Schedule of Subje
Acquisition - Schedule of Subject to Revision Upon Completion of Valuation Procedures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 22, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Cash payments | $ 15,939 | ||
Intangible assets | 11,200 | ||
Goodwill | 52,815 | $ 39,027 | |
SSIMWAVE Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash payments | $ 19,521 | ||
IMAX Share Consideration | 1,947 | ||
Earn-Out Payment | 1,750 | ||
Total Purchase Price | 23,218 | ||
Cash and cash equivalents | 3,582 | ||
Accounts receivable | 158 | ||
Property, plant and equipment | 409 | ||
Intangible assets | 11,189 | 11,200 | |
Other assets | 293 | ||
Accounts payable and accrued liabilities | (1,092) | ||
Deferred revenue | (1,300) | ||
Federal economic development loan, net of unaccreted interest benefit | (1,772) | ||
Deferred tax liability | (2,037) | (2,000) | |
Goodwill | 13,788 | $ 13,800 | |
Total Purchase Price | $ 23,218 |
Acquisition - Schedule of Alloc
Acquisition - Schedule of Allocation of Fair Value of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 22, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Total identifiable intangible assets, Fair Value | $ 11,200 | |
SSIMWAVE Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Total identifiable intangible assets, Fair Value | $ 11,189 | $ 11,200 |
SSIMWAVE Inc. [Member] | In-process Research and Development [Member] | ||
Business Acquisition [Line Items] | ||
Indefinite lived intangible assets, Fair Value | 3,810 | |
Acquired Indefinite Lived Intangible Assets Weighted Average Useful Life | Not yet in use | |
SSIMWAVE Inc. [Member] | Patent and Trademarks [Member] | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets, Fair Value | $ 100 | |
Finite lived intangible assets, Weighted Average Useful Life | 2 years | |
SSIMWAVE Inc. [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets, Fair Value | $ 1,340 | |
Finite lived intangible assets, Weighted Average Useful Life | 7 years | |
SSIMWAVE Inc. [Member] | Developed Technology [Member] | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets, Fair Value | $ 5,779 | |
SSIMWAVE Inc. [Member] | Developed Technology [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life | 4 years | |
SSIMWAVE Inc. [Member] | Developed Technology [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets, Weighted Average Useful Life | 7 years | |
SSIMWAVE Inc. [Member] | Non-compete Agreement [Member] | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets, Fair Value | $ 160 | |
Finite lived intangible assets, Weighted Average Useful Life | 4 years |
Receivables - Summary of Allowa
Receivables - Summary of Allowance For Credit Losses Related to Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | $ 11,946 | $ 14,295 |
Current period provision (reversal), net | 3,144 | (1,452) |
Write-offs | (565) | (927) |
Foreign exchange | (406) | 30 |
Ending balance | 14,119 | 11,946 |
Theatre Operators [Member] | ||
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | 8,867 | 8,368 |
Current period provision (reversal), net | 2,687 | 793 |
Write-offs | (43) | (357) |
Foreign exchange | (367) | 63 |
Ending balance | 11,144 | 8,867 |
Studios [Member] | ||
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | 1,994 | 4,481 |
Current period provision (reversal), net | (128) | (1,913) |
Write-offs | (128) | (551) |
Foreign exchange | (39) | (23) |
Ending balance | 1,699 | 1,994 |
Other [Member] | ||
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | 1,085 | 1,446 |
Current period provision (reversal), net | 585 | (332) |
Write-offs | (394) | (19) |
Foreign exchange | (10) | |
Ending balance | $ 1,276 | $ 1,085 |
Receivables - Additional Inform
Receivables - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Feb. 20, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 07, 2022 | |
Current Expected Credit Losses [Line Items] | ||||
Unsecured pre-petition claims related to receivable from bankruptcy entities | $ 11,400,000 | |||
Finance income related to net investment in leases with billed amounts past due | $ 100,000 | $ 100,000 | ||
Finance Income related to the net investment in leases in nonaccrual status | 0 | 0 | ||
Finance income related to financed sale receivables with billed amounts past due | 3,600,000 | 3,700,000 | ||
Finance Income related to the financed sales receivables in nonaccrual status | 500,000 | 200,000 | ||
Theatre And Foreign Movie Studio [Member] | ||||
Current Expected Credit Losses [Line Items] | ||||
Increase (decrease) in allowance for current expected credit losses, accounts receivables | 2,200,000 | (2,300,000) | ||
Additional reserve allowances | 1,500,000 | |||
Theatre Operators [Member] | ||||
Current Expected Credit Losses [Line Items] | ||||
Increase (decrease) in allowance for current expected credit losses, variable consideration receivables | 500,000 | 800,000 | ||
Theatre Operators [Member] | Variable Consideration Receivables [Member] | ||||
Current Expected Credit Losses [Line Items] | ||||
Increase (decrease) investment in leases and financed sale receivables provision for current expected credit losses | $ 5,500,000 | $ 1,600,000 | ||
Trade Agreement [Member] | Cineworld Group Plc [Member] | Subsequent Event | ||||
Current Expected Credit Losses [Line Items] | ||||
Proceeds from receivables | $ 7,200,000 |
Receivables - Schedule of Finan
Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Net investment in leases | ||
Gross minimum payments due under sales-type leases | $ 29,727 | $ 29,953 |
Unearned finance income | (619) | (763) |
Present value of minimum payments due under sales-type leases | 29,108 | 29,190 |
Allowance for credit losses | (776) | (798) |
Net investment in leases | 28,332 | 28,392 |
Financed sales receivables | ||
Gross minimum payments due under financed sales | 141,337 | 152,315 |
Unearned finance income | (29,340) | (34,244) |
Present value of minimum payments due under financed sales | 111,997 | 118,071 |
Allowance for credit losses | (10,945) | (5,414) |
Net financed sales receivables | 101,052 | 112,657 |
Total financing receivables | 129,384 | 141,049 |
Net financed sales receivables due within one year | 32,366 | 29,115 |
Net financed sales receivables due after one year | 68,686 | 83,542 |
Net financed sales receivables | $ 101,052 | $ 112,657 |
Receivables - Schedule of Weigh
Receivables - Schedule of Weighted-average Remaining Lease Term and Weighted-average Interest Rate (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted-average remaining lease term (in years) | ||
Sales-type lease arrangements | 9 years | 9 years 7 months 6 days |
Weighted-average interest rate | ||
Sales-type lease arrangements | 8.23% | 6.56% |
Financed sales receivables | 8.79% | 8.79% |
Receivables - Schedule of Net I
Receivables - Schedule of Net Investment In Leases by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Current fiscal year | $ 4,148 | $ 11,030 |
Net investment leases, By Origination Year, Before latest fiscal year | 10,058 | 3,991 |
Net investment leases, By Origination Year, Two years before latest fiscal year | 3,656 | 7,973 |
Net investment leases, By Origination Year, Three years before latest fiscal year | 7,378 | 2,574 |
Net investment leases, By Origination Year, Four years before latest fiscal year | 2,451 | 823 |
Net investment leases, By Origination Year, Prior | 1,417 | 2,799 |
Net Investment in Lease, Total | 29,108 | 29,190 |
In Good Standing [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Current fiscal year | 4,148 | 11,030 |
Net investment leases, By Origination Year, Before latest fiscal year | 6,969 | 3,991 |
Net investment leases, By Origination Year, Two years before latest fiscal year | 2,494 | 7,973 |
Net investment leases, By Origination Year, Three years before latest fiscal year | 1,977 | 2,574 |
Net investment leases, By Origination Year, Four years before latest fiscal year | 823 | |
Net investment leases, By Origination Year, Prior | 1,016 | 1,928 |
Net Investment in Lease, Total | 16,604 | 28,319 |
Pre-Approved Transactions [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Before latest fiscal year | 3,089 | |
Net investment leases, By Origination Year, Two years before latest fiscal year | 1,162 | |
Net investment leases, By Origination Year, Three years before latest fiscal year | 5,401 | |
Net investment leases, By Origination Year, Four years before latest fiscal year | 2,451 | |
Net Investment in Lease, Total | 12,103 | |
Transactions Suspended [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Prior | 401 | 871 |
Net Investment in Lease, Total | $ 401 | $ 871 |
Receivables - Schedule of Fin_2
Receivables - Schedule of Financed Sale Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Current fiscal year | $ 10,524 | $ 12,520 |
Financed sales receivables, By Origination Year, Before lastest fiscal year | 11,625 | 8,251 |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 7,821 | 11,671 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 10,944 | 13,696 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 12,500 | 15,714 |
Financed sales receivables, By Origination Year, Prior | 58,583 | 56,219 |
Financed sales receivables, Total | 141,105 | 147,261 |
Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 111,997 | 118,071 |
In Good Standing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Current fiscal year | 10,252 | 12,520 |
Financed sales receivables, By Origination Year, Before lastest fiscal year | 8,643 | 8,251 |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 6,280 | 10,593 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 8,541 | 13,278 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 9,854 | 12,615 |
Financed sales receivables, By Origination Year, Prior | 39,912 | 47,950 |
In Good Standing [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 83,482 | 105,207 |
Credit Watch [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 321 | |
Financed sales receivables, By Origination Year, Prior | 1,152 | 1,292 |
Credit Watch [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 1,152 | 1,613 |
Pre-Approved Transactions [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Before lastest fiscal year | 2,318 | |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 1,399 | 743 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 1,134 | 418 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 1,449 | 2,098 |
Financed sales receivables, By Origination Year, Prior | 9,243 | 3,650 |
Pre-Approved Transactions [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 15,543 | 6,909 |
Transactions Suspended [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Current fiscal year | 272 | |
Financed sales receivables, By Origination Year, Before lastest fiscal year | 664 | |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 142 | 335 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 1,269 | |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 1,197 | 680 |
Financed sales receivables, By Origination Year, Prior | 8,276 | 3,327 |
Transactions Suspended [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | $ 11,820 | $ 4,342 |
Receivables - Schedule of Aging
Receivables - Schedule of Aging Analysis for Net Investment in Leases and Financed Sale Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | $ 19,415 | $ 12,765 | |
Unbilled | 121,690 | 134,496 | |
Financed sales receivables, Total | 141,105 | 147,261 | |
Allowance for Credit Losses | (11,721) | (6,212) | |
Total financing receivables | 129,384 | 141,049 | |
Net Investment in Leases [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 3,046 | 1,648 | |
Unbilled | 26,062 | 27,542 | |
Financed sales receivables, Total | 29,108 | 29,190 | |
Allowance for Credit Losses | (776) | (798) | $ (557) |
Total financing receivables | 28,332 | 28,392 | |
Net Financed Sales Receivables [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 16,369 | 11,117 | |
Unbilled | 95,628 | 106,954 | |
Financed sales receivables, Total | 111,997 | 118,071 | |
Allowance for Credit Losses | (10,945) | (5,414) | $ (7,274) |
Total financing receivables | 101,052 | 112,657 | |
Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 2,506 | 1,975 | |
Accrued and Current [Member] | Net Investment in Leases [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 237 | 225 | |
Accrued and Current [Member] | Net Financed Sales Receivables [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 2,269 | 1,750 | |
30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 1,523 | 1,145 | |
30 to 89 Days Past Due [Member] | Net Investment in Leases [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 216 | 156 | |
30 to 89 Days Past Due [Member] | Net Financed Sales Receivables [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 1,307 | 989 | |
Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 15,386 | 9,645 | |
Equal To Greater Than 90 Days Past Due [Member] | Net Investment in Leases [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | 2,593 | 1,267 | |
Equal To Greater Than 90 Days Past Due [Member] | Net Financed Sales Receivables [Member] | |||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | |||
Billed | $ 12,793 | $ 8,378 |
Receivables - Schedule of Net_2
Receivables - Schedule of Net Investment in Leases and Financed Sale Receivables with Billed Amounts Past Due Continues to Accrue Finance Income (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | $ 19,415 | $ 12,765 | |
Unbilled | 121,690 | 134,496 | |
Allowance for Credit Losses | (11,721) | (6,212) | |
Total financing receivables | 129,384 | 141,049 | |
Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 2,506 | 1,975 | |
30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 1,523 | 1,145 | |
Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 15,386 | 9,645 | |
Net Investment in Leases [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 3,046 | 1,648 | |
Unbilled | 26,062 | 27,542 | |
Allowance for Credit Losses | (776) | (798) | $ (557) |
Total financing receivables | 28,332 | 28,392 | |
Net Investment in Leases [Member] | Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 237 | 225 | |
Net Investment in Leases [Member] | 30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 216 | 156 | |
Net Investment in Leases [Member] | Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 2,593 | 1,267 | |
Net Financed Sales Receivables [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 16,369 | 11,117 | |
Unbilled | 95,628 | 106,954 | |
Allowance for Credit Losses | (10,945) | (5,414) | $ (7,274) |
Total financing receivables | 101,052 | 112,657 | |
Net Financed Sales Receivables [Member] | Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 2,269 | 1,750 | |
Net Financed Sales Receivables [Member] | 30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 1,307 | 989 | |
Net Financed Sales Receivables [Member] | Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 12,793 | 8,378 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 16,443 | 8,978 | |
Unbilled | 60,242 | 54,058 | |
Allowance for Credit Losses | (1,817) | (1,589) | |
Total financing receivables | 74,868 | 61,447 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 1,740 | 1,102 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | 30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 1,296 | 861 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 13,407 | 7,015 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Investment in Leases [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 2,964 | 1,100 | |
Unbilled | 17,070 | 12,619 | |
Allowance for Credit Losses | (230) | (176) | |
Total financing receivables | 19,804 | 13,543 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Investment in Leases [Member] | Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 190 | 143 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Investment in Leases [Member] | 30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 181 | 132 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Investment in Leases [Member] | Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 2,593 | 825 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 13,479 | 7,878 | |
Unbilled | 43,172 | 41,439 | |
Allowance for Credit Losses | (1,587) | (1,413) | |
Total financing receivables | 55,064 | 47,904 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Accrued and Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 1,550 | 959 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | 30 to 89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | 1,115 | 729 | |
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Billed | $ 10,814 | $ 6,190 |
Receivables - Schedule of Net_3
Receivables - Schedule of Net Investment in Leases and Financed Sale Receivables on Nonaccrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Recorded Receivable | $ 27,765 | $ 9,513 |
Allowance for Credit Losses | (9,990) | (2,666) |
Net | 17,775 | 6,847 |
Net Investment in Leases [Member] | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Recorded Receivable | 401 | 871 |
Allowance for Credit Losses | (401) | (309) |
Net | 562 | |
Net Financed Sales Receivables [Member] | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Recorded Receivable | 27,364 | 8,642 |
Allowance for Credit Losses | (9,589) | (2,357) |
Net | $ 17,775 | $ 6,285 |
Receivables - Summary of Allo_2
Receivables - Summary of Allowance for Credit Losses Related to Net Investment in Leases and Financed Sale Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | $ 6,212 | |
Ending balance | 11,721 | $ 6,212 |
Net Investment in Leases [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 798 | 557 |
Current period provision (reversal), net | 5 | 235 |
Foreign exchange | (27) | 6 |
Ending balance | 776 | 798 |
Net Financed Sales Receivables [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning balance | 5,414 | 7,274 |
Current period provision (reversal), net | 5,783 | (1,947) |
Foreign exchange | (252) | 87 |
Ending balance | $ 10,945 | $ 5,414 |
Receivables - Summary of Allo_3
Receivables - Summary of Allowance For Credit Losses Related to Variable Consideration Receivables (Details) - Theatre Operators [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | $ 1,082 | $ 1,887 |
Current period reversal, net | (440) | (787) |
Foreign Exchange | (32) | (18) |
Ending balance | $ 610 | $ 1,082 |
Lease Arrangements - Additional
Lease Arrangements - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 Lease | |
Leases [Line Items] | |
Lessee, operating lease description | The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. |
Lessee, operating lease, existence of option to extend term | true |
Lessee, operating lease, existence of option to extend description | The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs, and its level of investment in the leasehold improvements, among other factors. |
Lessee, operating lease, assumptions for discount rate | The incremental borrowing rate used in the calculation of the Company’s lease liabilities is based on the location of each leased property. |
Leases include options to purchase leased property | 0 |
Lessee, operating lease, existence of residual value | false |
Lessee, operating lease, sublease options | The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. |
Lessor, sales-type lease description | The Company provides IMAX Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. |
Minimum [Member] | |
Leases [Line Items] | |
Lessee, operating lease, renewal term | 1 year |
Sales-type lease, lease term | 10 years |
Non-cancellable term of joint revenue sharing arrangements | 10 years |
Maximum [Member] | |
Leases [Line Items] | |
Lessee, operating lease, renewal term | 5 years |
Sales-type lease, lease term | 20 years |
Non-cancellable term of joint revenue sharing arrangements | or longer |
Lease Arrangements - Components
Lease Arrangements - Components of Operating Lease Expense (Details) - Selling, General and Administrative Expenses [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Line Items] | |||
Amortization of operating lease assets | $ 2,734 | $ 2,791 | $ 3,114 |
Interest on operating lease liabilities | 825 | 937 | 1,052 |
Short-term and variable lease costs | 616 | 713 | 540 |
Amortization of finance lease assets | 171 | ||
Interest on finance lease liabilities | 22 | ||
Total lease cost | $ 4,368 | $ 4,441 | $ 4,706 |
Lease Arrangements - Supplement
Lease Arrangements - Supplemental Cash and Non-Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating leases | $ 3,783 | $ 3,839 | $ 3,743 |
Finance leases | 948 | ||
Supplemental Disclosure of Noncash Leasing Activities [Abstract] | |||
Right-of-use assets obtained in exchange for operating lease obligations | 3,068 | $ 1,047 | $ 563 |
Right-of-use assets obtained in exchange for finance lease obligations | $ 1,990 |
Lease Arrangements - Lessee Ope
Lease Arrangements - Lessee Operating Lease Balance Sheet Amounts and Lines (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Line Items] | |||
Operating lease right-of-use assets | $ 12,341 | $ 12,132 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net of accumulated depreciation | Property, plant and equipment, net of accumulated depreciation | |
Finance lease right-of-use assets | $ 1,876 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | ||
Operating lease liabilities | $ 14,641 | $ 14,691 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities | |
Finance lease liabilities | [1] | $ 1,011 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | ||
[1] Recorded net of a $ 0.9 million upfront payment made upon execution of the finance lease arrangement. |
Lease Arrangements - Lessee O_2
Lease Arrangements - Lessee Operating Lease Balance Sheet Amounts and Lines (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Leases [Abstract] | |
Upfront payment made upon execution of finance lease | $ 0.9 |
Lease Arrangements - Lessee Lea
Lease Arrangements - Lessee Leases Weighted Average Remaining Lease Term and Weighted Average Interest Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 6 years | 7 years |
Weighted-average discount rate | 5.90% | 5.97% |
Finance Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 4 years 8 months 12 days | |
Weighted-average discount rate | 6% |
Lease Arrangements - Lessee O_3
Lease Arrangements - Lessee Operating and Finance Lease, Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |||
2023 | $ 3,639 | ||
2024 | 3,017 | ||
2025 | 2,429 | ||
2026 | 2,069 | ||
2027 | 2,094 | ||
Thereafter | 4,171 | ||
Total lease payments | 17,419 | ||
Less: interest expense | (2,778) | ||
Present value of lease liabilities | $ 14,641 | $ 14,691 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued and other liabilities | Accrued and other liabilities | |
Finance Lease, Liability, to be Paid [Abstract] | |||
2023 | $ 508 | ||
2024 | 508 | ||
Total lease payments | 1,016 | ||
Less: interest expense | (5) | ||
Present value of lease liabilities | [1] | $ 1,011 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | ||
[1] Recorded net of a $ 0.9 million upfront payment made upon execution of the finance lease arrangement. |
Lease Arrangements - Schedule o
Lease Arrangements - Schedule of Maturities of Lease Receivables (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Sales-type leases | |
2023 | $ 3,245 |
2024 | 3,158 |
2025 | 3,038 |
2026 | 2,823 |
2027 | 2,760 |
Thereafter | 14,702 |
Total | 29,726 |
Joint Revenue Sharing Arrangements | |
2023 | 172 |
2024 | 69 |
2025 | 27 |
Total | $ 268 |
Variable Consideration Receivab
Variable Consideration Receivable from Contracts With Customers - Summary of Variable Consideration Receivable from Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Contract with Customer, Asset [Abstract] | |||
Balance Beginning | $ 44,218 | $ 40,526 | $ 40,040 |
Variable consideration for newly recognized sales | 7,109 | 4,696 | 5,550 |
Accretion to finance income | 1,846 | 1,985 | 2,133 |
Transferred to receivables from variable consideration assets | (9,621) | (3,794) | (5,310) |
Movement in allowance for credit losses | 472 | 805 | (1,887) |
Balance Ending | $ 44,024 | $ 44,218 | $ 40,526 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials | $ 25,365 | $ 20,551 |
Work-in-process | 2,034 | 1,406 |
Finished goods | 4,135 | 4,967 |
Total | $ 31,534 | $ 26,924 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories (Textuals) [Abstract] | ||
Finished goods inventory with title passed to customer | $ 3.5 | $ 2.6 |
Inventories - Summary of Invent
Inventories - Summary of Inventory Valuation Allowance Account (Details) - Inventory Valuation Allowance [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Inventory [Line Items] | |||||
Balance at beginning of year | $ 4,897 | $ 5,752 | $ 3,216 | ||
Additions charged to expenses | 919 | 629 | [1] | 3,028 | [1] |
Other deductions | (77) | (1,484) | [2] | (492) | [2] |
Balance at end of year | $ 5,739 | $ 4,897 | $ 5,752 | ||
[1] Excludes a recovery of $ 0.2 million charged directly to the Consolidated Statements of Operations during the year ended December 31, 2022 (2021 and 2020 — expenses of $ 0.3 million , and $ 0.6 million , respectively). Includes the write-off of amounts previously charged to valuation allowance. |
Inventories - Summary of Inve_2
Inventories - Summary of Inventory Valuation Allowance Account (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory [Abstract] | |||
Inventory expenses (recovery) charged to statement of operation | $ (0.2) | $ 0.3 | $ 0.6 |
Film Assets - Film Assets (Deta
Film Assets - Film Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Film, Capitalized Cost [Abstract] | ||
Completed and released films, net of accumulated amortization of $218,148 (2020 - $202,832) | $ 1,227 | $ 2,292 |
Films in production | 1,667 | 195 |
Films in development | 2,383 | 1,754 |
Film Costs, Total | $ 5,277 | $ 4,241 |
Film Assets - Film Assets (Pare
Film Assets - Film Assets (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Film, Capitalized Cost [Abstract] | ||
Accumulated amortization | $ 235,029 | $ 218,148 |
Film Assets - Additional Inform
Film Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Film Assets [Line Items] | ||||||
Film costs expected to be amortized within three years from balance sheet date | $ 5.2 | |||||
Amount of participation payments expected to be made to third parties in the next operating cycle | 3.8 | $ 3.3 | ||||
Documentary film asset impairments | $ 0.8 | $ 0.2 | $ 10.8 | |||
Forecast [Member] | ||||||
Film Assets [Line Items] | ||||||
Film costs, amortized in next operating cycle | $ 0.1 | $ 0.2 | $ 4.9 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment | |||
Cost | $ 519,251 | $ 512,336 | |
Accumulated Depreciation | 266,355 | 251,983 | |
Net Book Value | 252,896 | 260,353 | |
System Components [Member] | |||
Property, plant and equipment | |||
Cost | [1],[2],[3] | 345,960 | 346,517 |
Accumulated Depreciation | [1],[2],[3] | 194,444 | 181,936 |
Net Book Value | [1],[2],[3] | 151,516 | 164,581 |
Camera Equipment [Member] | |||
Property, plant and equipment | |||
Cost | 8,597 | 4,855 | |
Accumulated Depreciation | 3,859 | 3,214 | |
Net Book Value | 4,738 | 1,641 | |
Equipment leased or held for use [Member] | |||
Property, plant and equipment | |||
Cost | 354,557 | 351,372 | |
Accumulated Depreciation | 198,303 | 185,150 | |
Net Book Value | 156,254 | 166,222 | |
Asset under Construction [Member] | |||
Property, plant and equipment | |||
Cost | [4] | 14,379 | 10,232 |
Accumulated Depreciation | [4] | 0 | 0 |
Net Book Value | [4] | 14,379 | 10,232 |
Right Of Use Assets | |||
Property, plant and equipment | |||
Cost | [5] | 14,615 | 14,429 |
Accumulated Depreciation | [5] | 398 | 2,297 |
Net Book Value | [5] | 14,217 | 12,132 |
Land [Member] | |||
Property, plant and equipment | |||
Cost | 8,203 | 8,203 | |
Accumulated Depreciation | 0 | 0 | |
Net Book Value | 8,203 | 8,203 | |
Buildings [Member] | |||
Property, plant and equipment | |||
Cost | 81,053 | 80,973 | |
Accumulated Depreciation | 31,519 | 28,873 | |
Net Book Value | 49,534 | 52,100 | |
Office and Production Equipment [Member] | |||
Property, plant and equipment | |||
Cost | [6] | 38,485 | 39,017 |
Accumulated Depreciation | [6] | 31,360 | 31,169 |
Net Book Value | [6] | 7,125 | 7,848 |
Leasehold Improvements [Member] | |||
Property, plant and equipment | |||
Cost | 7,959 | 8,110 | |
Accumulated Depreciation | 4,775 | 4,494 | |
Net Book Value | 3,184 | 3,616 | |
Other property, plant and equipment [Member] | |||
Property, plant and equipment | |||
Cost | 135,700 | 136,303 | |
Accumulated Depreciation | 67,654 | 64,536 | |
Net Book Value | $ 68,046 | $ 71,767 | |
[1] In 2022, the Company recorded charges of $ 1.0 million (2021 — $ 0.4 million ; 2020 — $ 1.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems, as well as an IMAX System that was removed from its existing location. Included in system components are assets with costs of $ 323.7 million (2021 — $ 324.3 million ) and accumulated depreciation of $ 177.9 million (2021 — $ 166.5 million ) that are used in joint revenue sharing arrangements. Included in system components are assets with costs of $ 7.6 million (2021 — $ 7.6 million ) and accumulated depreciation of $ 7.2 million (2021 — $ 7.0 million ) that are leased to customers under operating leases. Included in assets under construction are components with costs of $ 9.1 million (2021 — $ 9.2 million ) that will be utilized to construct assets to be used in joint revenue sharing arrangements. The right-of-use assets primarily include operating leases for office and warehouse space. Fully depreciated office and production equipment is still in use by the Company. In 2022, the Company identified and wrote off $ 3.5 million (2021 — $ 0.5 million ) of office and production equipment that is fully depreciated and no longer in use. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Property, Plant and Equipment (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
System Components [Member] | |||
Property, plant and equipment | |||
Assets leased to customers under operating lease, Gross | $ 7.6 | $ 7.6 | |
Accumulated Depreciation, assets leased to customers under operating lease | 7.2 | 7 | |
Assets under joint revenue sharing arrangements included in Theater system components | 323.7 | 324.3 | |
Accumulated Depreciation , Assets under joint revenue sharing arrangements included in Theater system components | 177.9 | 166.5 | |
Theater system components written off in Costs and expenses | 1 | 0.4 | $ 1.8 |
Asset under Construction [Member] | |||
Property, plant and equipment | |||
Assets under joint revenue sharing arrangements included in Assets under construction | 9.1 | 9.2 | |
Office and Production Equipment [Member] | |||
Property, plant and equipment | |||
Fully amortized office and production equipment written off in the period | $ 3.5 | $ 0.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other property, plant and equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment write downs no longer in use | $ 0.1 | $ 0.2 | $ 0.2 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets [Abstract] | ||
Lease incentives provided to exhibitor customers, net of accumulated amortization | $ 12,975 | $ 14,834 |
Commissions and other deferred selling expenses | 1,336 | 1,418 |
Other investments | 1,000 | 1,000 |
Foreign currency derivatives | 50 | 184 |
Other | 304 | 363 |
Other assets, total | $ 15,665 | $ 17,799 |
Income Taxes - Schedule of (Los
Income Taxes - Schedule of (Loss) Income Before Taxes by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes Disclosure [Line Items] | |||
(Loss) income before taxes | $ (9,769) | $ 10,987 | $ (129,124) |
Canada [Member] | |||
Income Taxes Disclosure [Line Items] | |||
(Loss) income before taxes | (55,623) | (55,480) | (104,166) |
United States [Member] | |||
Income Taxes Disclosure [Line Items] | |||
(Loss) income before taxes | 4,281 | 3,218 | (6,437) |
China [Member] | |||
Income Taxes Disclosure [Line Items] | |||
(Loss) income before taxes | 11,466 | 53,792 | (8,253) |
Ireland [Member] | |||
Income Taxes Disclosure [Line Items] | |||
(Loss) income before taxes | 24,070 | 829 | (7,473) |
Other [Member] | |||
Income Taxes Disclosure [Line Items] | |||
(Loss) income before taxes | $ 6,037 | $ 8,628 | $ (2,795) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax (Expense) Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Taxes Disclosure [Line Items] | ||||
Current income tax (expense) benefit, Total | $ (12,181) | $ (17,568) | $ (2,886) | |
Deferred income tax (expense) benefit, Total | 2,073 | (2,996) | (23,618) | |
Total | [1] | (10,108) | (20,564) | (26,504) |
Canada [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax (expense) benefit, Total | (1,149) | (915) | 555 | |
Deferred income tax (expense) benefit, Total | [2] | 943 | (231) | (10,801) |
United States [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax (expense) benefit, Total | (274) | (1,038) | 488 | |
Deferred income tax (expense) benefit, Total | (131) | (1,268) | 867 | |
China [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax (expense) benefit, Total | (4,437) | (11,045) | (1,980) | |
Deferred income tax (expense) benefit, Total | [3] | 2,763 | (381) | (15,756) |
Ireland [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax (expense) benefit, Total | (2,802) | (1,358) | (1,462) | |
Deferred income tax (expense) benefit, Total | (1,562) | (997) | 2,161 | |
Other [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Current income tax (expense) benefit, Total | (3,519) | (3,212) | (487) | |
Deferred income tax (expense) benefit, Total | $ 60 | $ (119) | $ (89) | |
[1] For the year ended December 31, 2022 , Income Tax (Expense) Benefit excludes a tax expense of $ 0.8 million included in Other Comprehensive (Loss) Income ( 2021 — benefit of $ 0.3 million; 2020 — benefit of $ 0.1 million ). A valuation allowance is recorded in jurisdictions where management has determined, based on the weight of all available evidence, both positive and negative, that a valuation allowance for deferred tax assets is required. For the year ended December 31, 2022, the Company recorded a $ 16.9 million valuation allowance against its deferred tax assets in Canada and China primarily as a result of uncertainties related to the long-term impact of the COVID-19 pandemic (2021 — $ 17.2 million ). The $ 16.9 million increase in the valuation allowance recorded in 2022 is reflected within Income Tax Expense in the Company’s Consolidated Statements of Operations. he Company's deferred tax liability of $ 17.6 million as of December 31, 2021 was for the estimated applicable foreign withholding taxes associated with historical earnings that were not indefinitely reinvested, which will become payable upon the repatriation of any such earnings. During the year ended December 31, 2022, $ 27.4 million of historical earnings from a subsidiary in China were distributed and, as a result, $ 2.7 million of foreign withholding taxes were paid to the relevant tax authorities. The remaining deferred tax liability on the Company’s Consolidated Balance Sheets as of December 31, 2022 is $ 14.9 million . |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax (Expense) Benefit (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes Disclosure [Line Items] | |||
Deferred tax asset, valuation allowance | $ 62,864 | $ 46,014 | |
Deferred income tax asset, valuation allowance change | 16,900 | 17,200 | |
Deferred tax liability | 14,900 | 17,642 | |
Deferred income tax (benefit) expense | (2,073) | 2,996 | $ 23,618 |
Payment of foreign withholding taxes | 2,700 | 2,000 | |
Other comprehensive (loss) income, income tax effect | 818 | (286) | (55) |
Canada [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred tax asset, valuation allowance | 16,900 | 17,200 | |
China [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred tax asset, valuation allowance | 16,900 | 17,200 | |
Foreign Country [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred income tax (benefit) expense | 131 | 1,268 | $ (867) |
Foreign Country [Member] | China [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred income tax (benefit) expense | 27,400 | ||
Shareholder's Equity [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred income tax asset, valuation allowance change | 2,500 | ||
Income Tax Expense [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Deferred income tax asset, valuation allowance change | $ 16,900 | $ 14,700 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Expense to Statutory Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax (expense) benefit at combined statutory rates, Amount | $ 2,596 | $ (2,912) | $ 34,218 |
NCI share of partnership losses, Amount | (1) | (1,229) | |
Increase in valuation allowance, Amount | (16,848) | (14,722) | (28,589) |
Changes to tax reserves, Amount | 1,643 | 3,508 | (2,699) |
U.S. federal and state taxes, Amount | (86) | (80) | (250) |
Withholding taxes, Amount | (3,825) | (4,199) | (20,943) |
Income tax at different rates in foreign and other provincial jurisdictions, Amount | 3,872 | 3,352 | (2,607) |
Investment and other tax credits (non-refundable), Amount | 752 | 413 | 643 |
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments, Amount | 2,278 | (5,336) | (1,219) |
Other non-deductible/non-taxable items, Amount | (490) | (587) | (3,829) |
Income tax expense | $ (10,108) | $ (20,564) | $ (26,504) |
Income tax (expense) benefit at combined statutory rates, Rate | 26.50% | 26.50% | 26.50% |
Non-controlling interests share of partnership losses, Rate | 0% | 0% | (1.00%) |
Increase in valuation allowance, Rate | (172.50%) | 134% | (22.10%) |
Changes to tax reserves, Rate | 16.80% | (31.90%) | (2.10%) |
U.S. federal and state taxes, Rate | (0.90%) | 0.70% | (0.20%) |
Withholding taxes, Rate | (39.20%) | 38.20% | (16.20%) |
Income tax at different rates in foreign and other provincial jurisdictions, Rate | 39.60% | (30.50%) | (2.00%) |
Investment and other tax credits (non-refundable), Rate | 7.70% | (3.80%) | 0.50% |
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments, Rate | 23.30% | 48.60% | (0.90%) |
Other non-deductible/non-taxable items, Rate | (4.90%) | 5.40% | (3.00%) |
Income tax expense | (103.60%) | 187.20% | (20.50%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets, Net [Abstract] | ||
Net operating loss carryforwards | $ 29,158 | $ 21,219 |
Investment tax credit and other tax credit carryforwards | 5,213 | 3,919 |
Write-downs of other assets | 2,341 | 1,223 |
Excess of tax accounting basis in various assets | 14,549 | 13,929 |
Accrued pension liability | 5,375 | 6,901 |
Accrued share-based compensation | 8,920 | 7,728 |
Income recognition on net investment in leases | (3,344) | (3,368) |
Other accrued reserves | 10,552 | 8,369 |
Total deferred income tax assets | 72,764 | 59,920 |
Valuation allowance | (62,864) | (46,014) |
Deferred income tax asset net of valuation allowance | 9,900 | 13,906 |
Deferred tax liability | (14,900) | (17,642) |
Net deferred tax liability | $ (5,000) | $ (3,736) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Income Tax Contingency [Line Items] | ||||||||
Deferred tax liability recognized within Accumulated Other Comprehensive (Loss) Income | $ 1,100 | $ 300 | $ 1,100 | $ 300 | ||||
Net Operating Loss Carryforwards, Limitations on Use | Estimated Canadian net operating loss carryforwards of $129.4 million can be used to reduce taxable income through 2042, China net operating losses of $5.1 million can be used to reduce taxable income through 2027, and $8.9 million of Ireland net operating losses can be carried forward indefinitely. Investment tax credits and other tax credits of $5.5 million can be carried forward to reduce income taxes payable through to 2042. | |||||||
Investment tax credits and other tax credits, carryforwards | 5,500 | $ 5,500 | ||||||
Investment tax credits and other tax credit carryforward, expiration period | 2042 | |||||||
Deferred tax liability | 14,900 | 17,642 | $ 14,900 | 17,642 | ||||
Deferred income tax asset after valuation allowance | 9,900 | 13,906 | 9,900 | 13,906 | ||||
Deferred tax asset, valuation allowance | 62,864 | 46,014 | 62,864 | 46,014 | ||||
Deferred income tax asset, valuation allowance change | 16,900 | 17,200 | ||||||
Deferred income tax (benefit) expense | (2,073) | 2,996 | $ 23,618 | |||||
Payment of foreign withholding taxes | 2,700 | 2,000 | ||||||
Provision for uncertain tax positions recorded to income tax provision | 2,200 | 2,100 | 600 | |||||
Total tax reserves (including interest and penalties) | 12,300 | 13,900 | 12,300 | 13,900 | ||||
Interest and penalty associated with tax reserves | 600 | 1,400 | 3,300 | |||||
Payment of income taxes | 8,900 | 13,963 | [1] | 18,475 | [1] | 4,763 | [1] | |
Income tax receivable | 8,900 | $ 8,900 | ||||||
Notice of reassessment received | 13,200 | |||||||
Canada Revenue Agency [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Net operating loss carryforwards, expiration period | 2042 | |||||||
Net Operating Loss Carryforwards | 129,400 | $ 129,400 | ||||||
Payment of income taxes | 1,600 | |||||||
Income tax receivable | 1,600 | $ 1,600 | ||||||
Canada Revenue Agency [Member] | Minimum [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Open Tax Years by Major Tax Jurisdiction | 2016 | |||||||
Canada Revenue Agency [Member] | Maximum [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Open Tax Years by Major Tax Jurisdiction | 2021 | |||||||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Open Tax Years by Major Tax Jurisdiction | 2017 | |||||||
Internal Revenue Service (IRS) [Member] | Maximum [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Open Tax Years by Major Tax Jurisdiction | 2022 | |||||||
State Administration of Taxation, China [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Net operating loss carryforwards, expiration period | 2027 | |||||||
Net Operating Loss Carryforwards | 5,100 | $ 5,100 | ||||||
Revenue Commissioners, Ireland [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Net Operating Loss Carryforwards | 8,900 | 8,900 | ||||||
Impact of COVID-19 Pandemic [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Deferred tax asset, valuation allowance | 16,900 | 17,200 | 16,900 | 17,200 | ||||
China [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Deferred tax asset, valuation allowance | $ 16,900 | 17,200 | 16,900 | 17,200 | ||||
Shareholder's Equity [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Deferred income tax asset, valuation allowance change | 2,500 | |||||||
Income Tax Expense [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Deferred income tax asset, valuation allowance change | 16,900 | 14,700 | ||||||
Foreign Country [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Deferred income tax (benefit) expense | 131 | $ 1,268 | $ (867) | |||||
Payment of income taxes | $ 8,900 | |||||||
Foreign Country [Member] | China [Member] | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Deferred income tax (benefit) expense | $ 27,400 | |||||||
[1] In 2021 , the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $ 8.9 million in income taxes and $ 1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $ 8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $ 1.6 million in associated interest. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Tax Reserves (excluding interest and penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of beginning and ending amount of tax reserves (excluding interest and penalties) | |||
Balance at beginning of the year | $ 11,939 | $ 14,076 | $ 14,718 |
Additions based on tax positions related to the current year | 11 | 37 | 2,301 |
Reductions for tax positions of prior years | (94) | (991) | |
Reductions resulting from lapse of applicable statute of limitations and administrative practices | (2,123) | (1,183) | (2,943) |
Balance at the end of the year | $ 9,733 | $ 11,939 | $ 14,076 |
Income Taxes - Income Tax (Expe
Income Taxes - Income Tax (Expense) Benefit Included in the Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrealized defined benefit plan actuarial (gain) loss | $ (198) | $ (37) | $ 276 |
Unrealized postretirement benefit plans actuarial (gain) loss | (762) | (35) | 92 |
Amortization of prior service cost | (48) | (48) | (23) |
Unrealized change in cash flow hedging instruments | (346) | (123) | (132) |
Realized change in cash flow hedging instruments | (156) | 446 | (158) |
Reclassification of unrealized change in ineffective cash flow hedging instruments | 83 | ||
Income tax effect on comprehensive (loss) income | $ (818) | $ 286 | $ 55 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 22, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net book value of patents and trademarks disposed of in the year | $ 100 | $ 100 | |
Goodwill | 52,815 | 39,027 | |
Intangible assets acquired | 11,200 | ||
Capitalized other intangible assets, cost | 83,783 | 68,171 | |
Net book value of other intangible assets capitalized | $ 15,500 | $ 3,900 | |
Weighted average amortization period for additions to other intangible assets | 4 years 8 months 12 days | 2 years 3 months 18 days | |
Costs incurred to renew or extend the term of acquired patents and trademarks | $ 100 | $ 100 | |
Internal Use Software, Patents And Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Capitalized other intangible assets, cost | 5,100 | 4,100 | |
SSIMWAVE Inc. [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 13,800 | $ 13,788 | |
Intangible assets acquired | 11,200 | $ 11,189 | |
IMAX Systems Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 19,100 | 19,100 | |
Joint Revenue Sharing Arrangements Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 13,500 | 13,500 | |
IMAX Maintenance Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 6,400 | $ 6,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Intangible Assets | ||
Other Intangible Assets, Cost | $ 83,783 | $ 68,171 |
Other Intangible Assets, Accumulated Amortization | 51,045 | 45,091 |
Other Intangible Assets, Net Book Value | 32,738 | 23,080 |
Licenses and Intellectual Property [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 26,168 | 26,168 |
Other Intangible Assets, Accumulated Amortization | 15,232 | 13,642 |
Other Intangible Assets, Net Book Value | 10,936 | 12,526 |
Internal Use Software [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 32,886 | 28,571 |
Other Intangible Assets, Accumulated Amortization | 25,232 | 21,544 |
Other Intangible Assets, Net Book Value | 7,654 | 7,027 |
Developed Technology [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 5,779 | |
Other Intangible Assets, Accumulated Amortization | 225 | |
Other Intangible Assets, Net Book Value | 5,554 | |
In Process Research and Development [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 3,810 | |
Other Intangible Assets, Net Book Value | 3,810 | |
Patents and Trademarks [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 13,031 | 12,834 |
Other Intangible Assets, Accumulated Amortization | 9,771 | 9,406 |
Other Intangible Assets, Net Book Value | 3,260 | 3,428 |
Customer Relationships [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 1,340 | |
Other Intangible Assets, Accumulated Amortization | 50 | |
Other Intangible Assets, Net Book Value | 1,290 | |
Other [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 769 | 598 |
Other Intangible Assets, Accumulated Amortization | 535 | 499 |
Other Intangible Assets, Net Book Value | $ 234 | $ 99 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expenses (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Other Intangible Assets Additional Textuals [Abstract] | |
2023 | $ (7,821) |
2024 | (7,636) |
2025 | (5,456) |
2026 | (3,059) |
2027 | $ (3,099) |
Borrowings - Revolving Credit F
Borrowings - Revolving Credit Facility Borrowings, Net (Details) ¥ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) |
Wells Fargo Credit Facility [Member] | ||||
Bank indebtedness [Line Items] | ||||
Borrowings | $ 25,000,000 | $ 0 | ||
Revolving Credit Facility [Member] | ||||
Bank indebtedness [Line Items] | ||||
Unamortized debt issuance costs | (1,759,000) | (1,140,000) | ||
Revolving Credit Facility Borrowings, net | 36,111,000 | 2,472,000 | ||
Bank of China Facility [Member] | ||||
Bank indebtedness [Line Items] | ||||
Borrowings | 400,000 | ¥ 2.6 | 3,600,000 | ¥ 23 |
Bank of China Facility [Member] | Revolving Credit Facility [Member] | ||||
Bank indebtedness [Line Items] | ||||
Borrowings | 374,000 | $ 3,612,000 | ||
HSBC China Facility [Member] | ||||
Bank indebtedness [Line Items] | ||||
Borrowings | $ 12,496,000 | ¥ 87 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) ¥ in Millions | 3 Months Ended | 12 Months Ended | 48 Months Ended | ||||||||||||
May 25, 2022 USD ($) | Mar. 19, 2021 USD ($) | May 29, 2019 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 CAD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2019 USD ($) | May 29, 2019 CAD ($) | |
Borrowings (Textual) [Abstract] | |||||||||||||||
Credit facility description | On March 25, 2022, the Company entered into a Sixth Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as agent (the “Agent”), and a syndicate of lenders party thereto (the “Credit Agreement”), which extended the maturity date of the credit facility under the Credit Agreement (the “Credit Facility”) from June 28, 2023 to March 25, 2027. The Company's obligations under the Credit Agreement are guaranteed by certain of the Company's subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors. | ||||||||||||||
Credit facility maturity date | Mar. 25, 2027 | ||||||||||||||
Current borrowing capacity | $ 300,000,000 | $ 300,000,000 | |||||||||||||
Repayment of outstanding indebtedness | $ 3,600,000 | $ 307,609,000 | |||||||||||||
Line of credit facility covenant terms | The Credit Facility requires that the Company maintain a maximum Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25:1.00 on the last day of each Fiscal Quarter. | ||||||||||||||
Letters of guarantee outstanding | $ 400,000 | 500,000 | 400,000 | ¥ 2.8 | ¥ 2.8 | ||||||||||
Amount borrowed | 37,871,000 | 3,600,000 | $ 287,610,000 | ||||||||||||
Proceeds from issuance of convertible notes, net | 223,675,000 | ||||||||||||||
Debt issuance costs paid | 2,279,000 | 527,000 | $ 1,073,000 | ||||||||||||
Foreign Exchange Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Unrealized gain (loss) on outstanding foreign currency forward contracts | (600,000) | 100,000 | (600,000) | ||||||||||||
Notional Amount of arrangements entered into | 24,700,000 | 26,700,000 | 24,700,000 | ||||||||||||
Convertible Notes [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Borrowings | 230,000,000 | 230,000,000 | 230,000,000 | ||||||||||||
Debt instrument, principal amount | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | ||||||||||||
Debt instrument, annual interest rate | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | ||||||||||
Proceeds from issuance of convertible notes, net | $ 223,700,000 | ||||||||||||||
Debt issuance costs paid | $ 1,200,000 | ||||||||||||||
Debt instrument, frequency of periodic interest payment | semi-annually | ||||||||||||||
Debt instrument, payment terms | The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum on the principal of $230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. | ||||||||||||||
Debt instrument, date of first required payment | Oct. 01, 2021 | ||||||||||||||
Debt instrument, maturity date | Apr. 01, 2026 | ||||||||||||||
Debt instrument, convertible, terms of conversion feature | Holders of the Convertible Notes have the right to convert their Convertible Notes in certain circumstances and during specified periods. Before January 1, 2026, holders of the Convertible Notes have the right to convert their Convertible Notes only upon the occurrence of certain events. From and after January 1, 2026, holders of the Convertible Notes may convert their Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company will pay or deliver, as applicable, cash or a combination of cash (in an amount no less than the principal amount of the Convertible Notes being converted) and common shares, at its election, based on the applicable conversion rates. The initial conversion rate is 34.7766 common shares per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $28.75 per common share, and is subject to adjustment upon the occurrence of certain events. | ||||||||||||||
Debt instrument, initial conversion rate per $1,000 principal amount | 34.7766 | ||||||||||||||
Convertible notes principal amount | $ 1,000 | $ 1,000 | |||||||||||||
Debt instrument, initial conversion price | $ / shares | $ 28.75 | $ 28.75 | |||||||||||||
Debt instrument, redemption, description | The Convertible Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after April 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any Convertible Notes for redemption will constitute a “make-whole fundamental change” with respect to such notes, in which case the conversion rate applicable to the conversion of such notes will be increased in certain circumstances if such notes are converted after they are called for redemption | ||||||||||||||
Debt instrument, redemption start date | Apr. 06, 2024 | ||||||||||||||
Convertible Notes [Member] | Call Option [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Cap price of capped call transactions | $ / shares | 37.2750 | 37.2750 | |||||||||||||
Percentage of premium of cap price over last reported sale price per common share on March 16, 2021 | 75% | ||||||||||||||
Cost of capped call transactions | $ 19,100,000 | ||||||||||||||
Reduction to other equity | $ 19,100,000 | ||||||||||||||
Bank of China Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Credit facility description | In June 2022, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company's majority-owned subsidiaries in China, renewed its unsecured revolving facility with Bank of China for up to 200.0 million Chinese Renminbi (“RMB”) ($28.7 million), including RMB 10.0 million ($1.4 million) for letters of guarantee, to fund ongoing working capital requirements (the “Bank of China Facility”). | ||||||||||||||
Current borrowing capacity | $ 28,700,000 | ¥ 200 | |||||||||||||
Borrowings | $ 400,000 | $ 3,600,000 | $ 400,000 | ¥ 2.6 | ¥ 23 | ||||||||||
Effective interest rate | 4.12% | 4.31% | |||||||||||||
Letters of guarantees borrowing capacity | 1,400,000 | 10 | |||||||||||||
Line of credit facility expiration period | 2023-09 | ||||||||||||||
Remaining borrowing capacity | $ 26,900,000 | 26,900,000 | 187.4 | ||||||||||||
HSBC China Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Current borrowing capacity | $ 28,700,000 | ¥ 200 | |||||||||||||
Borrowings | $ 12,496,000 | 12,496,000 | 87 | ||||||||||||
Effective interest rate | 3.91% | ||||||||||||||
Remaining borrowing capacity | $ 16,200,000 | 16,200,000 | 113 | ||||||||||||
Federal Economic Development Loan Payable [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Loans payable | 2,812,000 | 2,812,000 | |||||||||||||
Debt instrument, fair value | 1,782,000 | $ 1,782,000 | |||||||||||||
Federal Economic Development Loan Payable [Member] | Interest Expense [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Interest accretion expense | 100,000 | ||||||||||||||
Federal Economic Development Loan Payable [Member] | SSIMWAVE Inc. [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Debt instrument, annual interest rate | 0% | 0% | |||||||||||||
Percentage of contributions cover eligible and supported costs | 35% | ||||||||||||||
Contributions repayable months | 60 months | ||||||||||||||
Debt instrument repayment beginning month and year | 2024-01 | ||||||||||||||
Loans payable | 2,800,000 | $ 2,800,000 | $ 3,800,000 | ||||||||||||
Letter of Credit | Bank of China Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Remaining borrowing capacity | $ 1,000,000 | 1,000,000 | ¥ 7.2 | ||||||||||||
NBC Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Credit facility maturity date | Jun. 30, 2023 | ||||||||||||||
Current borrowing capacity | $ 5,000,000 | ||||||||||||||
Remaining borrowing capacity | $ 0 | $ 0 | 0 | ||||||||||||
Wells Fargo Credit Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Borrowings | 25,000,000 | 0 | 25,000,000 | ||||||||||||
Letters of credit or advance payment guarantees | $ 0 | $ 0 | 0 | ||||||||||||
Line of credit facility covenant terms | The Credit Agreement contains customary affirmative and negative covenants, including covenants that limit indebtedness, liens, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets. The Credit Agreement also contains customary representations, warranties and event of default provisions.The Company incurred fees of approximately $2.5 million in connection with the March 2022 amendment of the Credit Agreement, which are being amortized on a straight-line basis over the term of the Credit Agreement. In the first quarter of 2022, the Company expensed $0.4 million in unamortized deferred financing costs associated with lenders that are no longer parties to the Credit Agreement. | ||||||||||||||
Debt instrument net leverage ratio | 0 | ||||||||||||||
Liquidity covenant minimum | $ 75,000,000 | ||||||||||||||
Interest rate description | Loans under the Credit Facility bear interest, at the Company's option, at (i) Term SOFR, Eurocurrency Rate or CDOR Rate plus a margin ranging from 1.00% to 1.75% per annum; or (ii) the U.S. base rate or the Canadian prime rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company's total leverage ratio. In no event will Term SOFR, Eurocurrency Rate or CDOR Rate be less than 0.00% per annum. | ||||||||||||||
Effective interest rate | 5.64% | 2.64% | |||||||||||||
Fees incurred with amendments | $ 2,500,000 | ||||||||||||||
Unamortized deferred financing costs expenses | $ 400,000 | ||||||||||||||
Remaining borrowing capacity | $ 275,000,000 | 275,000,000 | |||||||||||||
Wells Fargo Credit Facility [Member] | SOFR, Eurocurrency or CDOR Rate [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Interest rate margin percentage | 1.75% | ||||||||||||||
Interest rate maximum margin percentage | 0% | ||||||||||||||
Minimum [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Borrowing capacity under uncommitted accordion feature | $ 440,000,000 | 440,000,000 | |||||||||||||
Minimum [Member] | Convertible Notes [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Percentage of last reported sale price per common share against conversion price for specific period of time | 130% | ||||||||||||||
Minimum [Member] | Wells Fargo Credit Facility [Member] | SOFR, Eurocurrency or CDOR Rate [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Interest rate margin percentage | 1% | ||||||||||||||
Minimum [Member] | Wells Fargo Credit Facility [Member] | U.S. Base Rate or Canadian Prime Rate [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Interest rate margin percentage | 0.25% | ||||||||||||||
Maximum [Member] | Federal Economic Development Loan Payable [Member] | SSIMWAVE Inc. [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Debt instrument, principal amount | $ 3,100,000 | $ 4,200,000 | |||||||||||||
Maximum [Member] | Wells Fargo Credit Facility [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Debt instrument net leverage ratio | 3.25 | ||||||||||||||
Unrestricted cash and cash equivalents held outside of People's Republic of China | $ 75,000,000 | $ 75,000,000 | |||||||||||||
Maximum [Member] | Wells Fargo Credit Facility [Member] | SOFR, Eurocurrency or CDOR Rate [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Interest rate margin percentage | 1.75% | ||||||||||||||
Maximum [Member] | Wells Fargo Credit Facility [Member] | U.S. Base Rate or Canadian Prime Rate [Member] | |||||||||||||||
Borrowings (Textual) [Abstract] | |||||||||||||||
Interest rate margin percentage | 1% |
Borrowings - Summary of Convert
Borrowings - Summary of Convertible Notes and Other Borrowings, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Bank indebtedness [Line Items] | ||
Revolving Credit Facility Borrowings, net | $ 226,912 | $ 223,641 |
Convertible Notes and Other Borrowings, net | 226,912 | 223,641 |
Convertible Notes [Member] | ||
Bank indebtedness [Line Items] | ||
Borrowings | 230,000 | 230,000 |
Unamortized discounts and debt issuance costs | (4,870) | (6,359) |
Revolving Credit Facility Borrowings, net | 225,130 | $ 223,641 |
Federal Economic Development Loan [Member] | ||
Bank indebtedness [Line Items] | ||
Loans payable | 2,812 | |
Unaccreted interest benefit | (1,030) | |
Debt instrument, fair value, Total | $ 1,782 |
Commitments - Summary of Compan
Commitments - Summary of Company's Contractual Obligations and Commitments (Details) $ in Thousands | Dec. 31, 2022 USD ($) | |
Purchase obligations | ||
Purchase obligations, Total | $ 37,884 | [1] |
Less Than One Year, Purchase obligations | 34,419 | [1] |
1 to 3 years, Purchase obligations | 3,183 | [1] |
3 to 5 years, Purchase obligations | 37 | [1] |
Thereafter, Purchase obligations | 245 | [1] |
Operating lease obligations | ||
Total lease payments | 17,419 | |
Less Than One Year, Operating Leases | 3,639 | |
Thereafter, Operating Leases | 4,171 | |
Finance lease obligations | ||
Total lease payments | 1,016 | |
Less Than One Year, Finance lease obligations | 508 | |
Total contractual obligations and commitments | ||
Total contractual obligations and commitments, Total | 354,419 | |
Less Than One Year, Total contractual obligations and commitments | 52,956 | |
1 to 3 years, Total contractual obligations and commitments | 13,276 | |
3 to 5 years, Total contractual obligations and commitments | 281,514 | |
Thereafter, Total contractual obligations and commitments | 6,673 | |
Convertible Notes [Member] | ||
Working Capital Facility | ||
Convertible Notes, Total | 234,025 | [2] |
Less Than One Year, Working Capital Facility | 1,150 | [2] |
1 to 3 years, Working Capital Facility | 2,300 | [2] |
3 to 5 years, Working Capital Facility | 230,575 | [2] |
Thereafter, Working Capital Facility | 0 | [2] |
Wells Fargo Credit Facility [Member] | ||
Total contractual obligations and commitments | ||
Total contractual obligations and commitments, Total | 25,000 | |
3 to 5 years, Total contractual obligations and commitments | 25,000 | |
HSBC Facility [Member] | ||
Total contractual obligations and commitments | ||
Total contractual obligations and commitments, Total | 12,496 | |
Less Than One Year, Total contractual obligations and commitments | 12,496 | |
Bank of China Facility [Member] | ||
Total contractual obligations and commitments | ||
Total contractual obligations and commitments, Total | 374 | |
Less Than One Year, Total contractual obligations and commitments | 374 | |
Federal Economic Development Loan Payable [Member] | ||
Total contractual obligations and commitments | ||
Total contractual obligations and commitments, Total | 2,812 | [3] |
1 to 3 years, Total contractual obligations and commitments | 1,250 | [3] |
3 to 5 years, Total contractual obligations and commitments | 1,250 | [3] |
Thereafter, Total contractual obligations and commitments | 312 | [3] |
Operating Lease Obligations | ||
Operating lease obligations | ||
Total lease payments | 18,013 | [4] |
Less Than One Year, Operating Leases | 3,905 | [4] |
1 to 3 years, Operating Leases | 5,825 | [4] |
3 to 5 years, Operating Leases | 4,137 | [4] |
Thereafter, Operating Leases | 4,146 | [4] |
Finance Lease Obligations [Member] | ||
Finance lease obligations | ||
Total lease payments | 1,016 | |
Less Than One Year, Finance lease obligations | 508 | |
1 to 3 years, Finance lease obligations | 508 | |
Pension Obligations [Member] | ||
Pension and Postretirement benefits obligations | ||
Total expected future benefit payment | 20,295 | [5] |
Less Than One Year | 0 | [5] |
1 to 3 years | 0 | [5] |
3 to 5 years | 20,295 | [5] |
Thereafter | 0 | [5] |
Postretirement Benefits Obligations [Member] | ||
Pension and Postretirement benefits obligations | ||
Total expected future benefit payment | 2,504 | |
Less Than One Year | 104 | |
1 to 3 years | 210 | |
3 to 5 years | 220 | |
Thereafter | $ 1,970 | |
[1] Represents total payments to be made under binding commitments with suppliers and outstanding payments to be made for supplies ordered, but yet to be invoiced. The Convertible Notes bear interest at a rate of 0.500 % per annum on the principal of $ 230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021 . The Convertible Notes will mature on April 1, 2026 , unless earlier repurchased, redeemed or converted. (See Note 15 (b).) The Federal Economic Development Loan will be repayable over 60 months, with repayments estimated to begin in January 2024. (See Note 15 (b).) Represents total minimum annual rental payments due under the Company’s operating leases. (See Note 7 .) The Company has an unfunded defined benefit pension plan covering its Chief Executive Officer. (See Note 24 .) |
Commitments - Summary of Comp_2
Commitments - Summary of Company's Contractual Obligations and Commitments (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Mar. 19, 2021 | |
Borrowings (Textual) [Abstract] | ||
Credit facility description | On March 25, 2022, the Company entered into a Sixth Amended and Restated Credit Agreement with Wells Fargo Bank, National Association, as agent (the “Agent”), and a syndicate of lenders party thereto (the “Credit Agreement”), which extended the maturity date of the credit facility under the Credit Agreement (the “Credit Facility”) from June 28, 2023 to March 25, 2027. The Company's obligations under the Credit Agreement are guaranteed by certain of the Company's subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all of the assets of the Company and the Guarantors. | |
Convertible Notes [Member] | ||
Borrowings (Textual) [Abstract] | ||
Debt instrument, annual interest rate | 0.50% | 0.50% |
Debt instrument, principal amount | $ 230,000,000 | $ 230,000,000 |
Debt instrument, frequency of periodic interest payment | semi-annually | |
Debt instrument, payment terms | The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum on the principal of $230.0 million, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. | |
Debt instrument, date of first required payment | Oct. 01, 2021 | |
Debt instrument, maturity date | Apr. 01, 2026 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued commission on sale or lease of the theater systems payable in future periods | $ 2.2 | $ 1.1 |
Contingencies and Guarantees -
Contingencies and Guarantees - Additional Information (Details) - USD ($) | 12 Months Ended | 51 Months Ended | 95 Months Ended | |||||
Dec. 03, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 27, 2008 | Dec. 02, 2011 | Jun. 30, 2021 | Jun. 23, 2021 | |
Contingencies And Guarantees Disclosure Textual [Abstract] | ||||||||
Final Award in favor of company | amount of $11.3 million, consisting of past and future rents owed to the Company, plus interest and costs, as well as an additional $2,512 each day in interest from October 1, 2007 until the date the award is paid | $30,000 to cover the costs of the application | ||||||
Final Award amount issued | $ 11,300,000 | |||||||
Final Award additional interest | $ 2,512 | |||||||
Final Award settlement cost | $ 30,000 | |||||||
Award inclusive of interest | $ 25,300,000 | |||||||
Damages awarded | $ 11,300,000 | |||||||
Litigation liability related to Final Judgment | $ 11,300,000 | |||||||
Amounts collected in respect of theater systems not delivered | 7,200,000 | |||||||
Legal judgment and arbitration awards (income) expense | 0 | $ (1,770,000) | $ 4,105,000 | |||||
Litigation liability paid | $ 9,500,000 | |||||||
Litigation settlement expense reversed | $ 1,800,000 | |||||||
Benefit of legal judgement and arbitration awards | $ 1,800,000 | |||||||
Product warranty accrual | 0 | 0 | ||||||
Indemnification of its directors/officers | 0 | 0 | ||||||
Other Indemnification | $ 0 | $ 0 |
Capital Stock - Summary of Sett
Capital Stock - Summary of Settlement of Stock Option and RSU Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan trustee purchases | 0 | 0 | |
Cash proceeds from stock option exercises | $ 883 | ||
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued from treasury | 41,613 | ||
Total stock options exercised | 41,613 | ||
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued from treasury | 596,277 | 531,629 | 42,982 |
Plan trustee purchases | 723 | 386,297 | |
Shares withheld for tax withholdings | 203,956 | 157,546 | 24,714 |
Total RSUs vested | 800,233 | 689,898 | 453,993 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) $ / shares in Units, $ / shares in Units, ¥ in Millions, $ in Millions | 2 Months Ended | 12 Months Ended | |||||||||||||
Feb. 21, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2022 HKD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 HKD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 USD ($) shares | Jul. 28, 2022 shares | Jun. 23, 2022 shares | Jun. 02, 2022 shares | Apr. 28, 2022 shares | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CNY (¥) | May 06, 2021 shares | Dec. 31, 2019 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based compensation costs recorded for the period | $ | $ 27,000,000 | $ 25,600,000 | $ 21,500,000 | ||||||||||||
Stock-based compensation expense | $ | $ 27,013,000 | $ 25,614,000 | $ 21,493,000 | ||||||||||||
Common stock, shares outstanding | 54,148,614 | 58,653,642 | |||||||||||||
Maximum number of shares of common stock may be issued for outstanding PSU | 54,148,614 | 58,653,642 | |||||||||||||
Common shares purchased in open market by trustee in connection with RSUs | 0 | 0 | 0 | 0 | 0 | ||||||||||
Antidilutive shares issuable upon exercise of stock options and vesting of restricted share units and performance stock units | 4,523,121 | 4,523,121 | 6,131,792 | 6,131,792 | 6,131,792 | 6,999,667 | |||||||||
Percentage of statutory net profits to statutory surplus reserve to be appropriated | 10% | ||||||||||||||
Discontinuation of contribution, Aggregate sum of statutory surplus reserve more than its registered capital, percent | 50% | ||||||||||||||
Statutory surplus reserve appropriated | $ 0 | $ 5,600,000 | ¥ 36.4 | ||||||||||||
Dividends declared and paid | $ 20,400,000 | ¥ 131.6 | |||||||||||||
Statutory surplus reserve to its subsidiaries registered capital percent | 50% | 50% | |||||||||||||
Subsequent Event [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Repurchase of common shares | 109,477 | ||||||||||||||
Stock Acquired, Average Cost per Share | $ / shares | $ 14.87 | ||||||||||||||
Repurchase of common shares, value | $ | $ 1,600,000 | ||||||||||||||
IMAX China | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Details of the share repurchase program | In 2021, IMAX China’s shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of issued shares as of May 6, 2021 (34,835,824 shares). This program expired on the date of the 2022 Annual General Meeting of IMAX China on June 23, 2022. During the 2022 Annual General Meeting, shareholders approved the repurchase of shares of IMAX China not to exceed 10% of the total number of issued shares as of June 23, 2022 (34,063,480 shares). This program will be valid until the 2023 Annual General Meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time. | In 2021, IMAX China’s shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China not to exceed 10% of the total number of issued shares as of May 6, 2021 (34,835,824 shares). This program expired on the date of the 2022 Annual General Meeting of IMAX China on June 23, 2022. During the 2022 Annual General Meeting, shareholders approved the repurchase of shares of IMAX China not to exceed 10% of the total number of issued shares as of June 23, 2022 (34,063,480 shares). This program will be valid until the 2023 Annual General Meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time. | |||||||||||||
Stock Repurchase Program Expiration Date | Jun. 23, 2022 | Jun. 23, 2022 | May 06, 2021 | May 06, 2021 | May 06, 2021 | ||||||||||
Repurchase of common shares | 2,961,800 | 2,961,800 | 6,664,700 | 6,664,700 | 6,664,700 | ||||||||||
Stock Acquired, Average Cost per Share | (per share) | $ 1.02 | $ 8 | $ 1.50 | $ 11.68 | |||||||||||
Repurchase of common shares, value | $ 3,000,000 | $ 23.7 | $ 10,000,000 | $ 77.8 | |||||||||||
Stock Repurchase Program, maximum percentage of shares to be repurchased | 10% | 10% | |||||||||||||
Stock Repurchase Program, Authorized number of shares | 34,063,480 | 34,835,824 | |||||||||||||
Parent [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Details of the share repurchase program | On April 28, 2022 and July 28, 2022, the Company’s Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2023 and an increase of $200.0 million in the share repurchase program, respectively. With the increase of $200.0 million, the Company's total share repurchase authority is $400.0 million under the current share repurchase program. As of December 31, 2022, the Company has $193.4 million available under its approved repurchase program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time. | On April 28, 2022 and July 28, 2022, the Company’s Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2023 and an increase of $200.0 million in the share repurchase program, respectively. With the increase of $200.0 million, the Company's total share repurchase authority is $400.0 million under the current share repurchase program. As of December 31, 2022, the Company has $193.4 million available under its approved repurchase program. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, subject to market conditions, applicable legal requirements, and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time. | |||||||||||||
Stock Repurchase Program, Authorized Amount | $ | $ 193,400,000 | ||||||||||||||
Stock Repurchase Program Expiration Date | Jun. 30, 2023 | Jun. 30, 2023 | |||||||||||||
Repurchase of common shares | 5,401,852 | 5,401,852 | 841,331 | 841,331 | 841,331 | ||||||||||
Stock Acquired, Average Cost per Share | $ / shares | $ 15.19 | $ 16.51 | |||||||||||||
Repurchase of common shares, value | $ | $ 82,000,000 | $ 13,900,000 | |||||||||||||
Stock Repurchase Program, Authorized number of shares | 200,000,000 | 200,000,000 | |||||||||||||
Statutory surplus reserve appropriated | $ | $ 3,900,000 | ||||||||||||||
Non-controlling Interests [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Repurchase of common shares, value | $ | $ 2,458,000 | $ 5,797,000 | $ 858,000 | ||||||||||||
Statutory surplus reserve appropriated | $ | $ 1,700,000 | ||||||||||||||
Settlement Occurred [Member] | Parent [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Repurchase of common shares | 140,000 | 140,000 | 0 | 0 | 0 | ||||||||||
Stock Acquired, Average Cost per Share | $ / shares | $ 14.45 | ||||||||||||||
Repurchase of common shares, value | $ | $ 2,000,000 | ||||||||||||||
Maximum [Member] | Parent [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ | $ 400,000,000 | ||||||||||||||
Employee Stock Option [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Reserved common shares for future issuance | 5,788,499 | 5,807,445 | |||||||||||||
Options outstanding | 3,604,739 | 3,736,157 | 4,892,962 | 5,732,209 | |||||||||||
Options common shares were vested and exercisable | 3,523,335 | 3,488,107 | |||||||||||||
Income tax benefit from stock based compensation | $ | $ 100,000 | $ 100,000 | $ 100,000 | ||||||||||||
Options fully vested and unvested, weighted average exercise price | $ / shares | $ 26.36 | ||||||||||||||
Options fully vested and unvested, weighted average remaining contractual life | 3 years 3 months 18 days | 3 years 3 months 18 days | |||||||||||||
Intrinsic value of options exercised | $ | 0.1 | ||||||||||||||
Stock-based compensation expense | $ | $ 572,000 | $ 1,064,000 | $ 1,847,000 | ||||||||||||
Antidilutive shares issuable upon exercise of stock options and vesting of restricted share units and performance stock units | 3,604,739 | 3,604,739 | 3,736,157 | 3,736,157 | 3,736,157 | 4,892,962 | |||||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock based awards vesting period | 4 years | 4 years | |||||||||||||
Stock based awards expiration period or remaining contractual life | 10 years | 10 years | |||||||||||||
Performance Stock Units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of shares outstanding | 931,716 | 613,405 | 361,844 | ||||||||||||
Stock based awards vesting period | 3 years | 3 years | |||||||||||||
RSU awards, granted to non-employees | 359,138 | 359,138 | 309,574 | 309,574 | 309,574 | 370,265 | |||||||||
Stock-based compensation expense | $ | $ 8,306,000 | $ 5,322,000 | $ 2,563,000 | ||||||||||||
Unrecognized share based compensation expense | $ | $ 10,800,000 | ||||||||||||||
Weighted average term expense expected recognized | 1 year 9 months 18 days | 1 year 9 months 18 days | |||||||||||||
Antidilutive shares issuable upon exercise of stock options and vesting of restricted share units and performance stock units | 281,262 | 281,262 | 937,752 | 937,752 | 937,752 | 541,867 | |||||||||
Performance Stock Units [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 175% | 175% | |||||||||||||
Performance Stock Units [Member] | Maximum [Member] | EBITDA | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Maximum number of shares of common stock may be issued for outstanding PSU | 1,630,503 | ||||||||||||||
Performance Stock Units [Member] | Minimum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0% | 0% | |||||||||||||
Restricted Share Units [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of shares outstanding | 1,252,044 | 1,457,883 | 1,564,838 | 1,065,347 | |||||||||||
Restricted Stock Unit Economic Equivalent | 1 | 1 | |||||||||||||
Tax expense (benefits) realized | $ | $ 900,000 | $ (600,000) | $ (300,000) | ||||||||||||
Accrued liabilities | $ | $ 800,000 | $ 2,600,000 | |||||||||||||
RSU that may vest on a shorter period | 343,058 | 885,000 | |||||||||||||
RSU awards, granted to non-employees | 708,313 | 708,313 | 831,123 | 831,123 | 831,123 | 1,050,385 | |||||||||
Stock-based compensation expense | $ | $ 15,498,000 | $ 15,555,000 | $ 13,761,000 | ||||||||||||
Common shares purchased in open market by trustee in connection with RSUs | 723 | 723 | 723 | 386,297 | |||||||||||
Antidilutive shares issuable upon exercise of stock options and vesting of restricted share units and performance stock units | 637,120 | 637,120 | 1,457,883 | 1,457,883 | 1,457,883 | 1,564,838 | |||||||||
Restricted Share Units [Member] | Certain Advisor [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
RSU awards, granted to non-employees | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Stock-based compensation expense | $ | $ 0 | $ 100,000 | |||||||||||||
Restricted Share Units [Member] | Maximum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock based awards vesting period | 3 years | 3 years | |||||||||||||
Percentage of common shares authorized | 5% | 5% | |||||||||||||
Restricted Share Units [Member] | Minimum [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock based awards vesting period | 1 year | 1 year | |||||||||||||
IMAX China Stock Options [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock-based compensation expense | $ | $ 100,000 | $ 100,000 | $ 700,000 | ||||||||||||
Vested stock options contractual life | 1 year | 1 year |
Capital Stock - Share-Based Com
Capital Stock - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 27,013 | $ 25,614 | $ 21,493 |
Cost and Expenses Applicable to Revenues [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1,156 | 1,490 | 691 |
Selling, General and Administrative Expenses [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 25,438 | 23,776 | 20,652 |
Research and Development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 419 | $ 348 | $ 150 |
Capital Stock - Expenses Relate
Capital Stock - Expenses Related to Stock Option Grants Issued to Employees and Directors (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 27,013 | $ 25,614 | $ 21,493 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 572 | $ 1,064 | $ 1,847 |
Capital Stock - Total Share-Bas
Capital Stock - Total Share-Based Compensation Expense Related to Non-Vested Employee Stock Options not yet Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense related to non-vested employee stock options | $ 86 | $ 662 | $ 2,029 |
Capital Stock - Weighted Averag
Capital Stock - Weighted Average Period over Which Awards Expected to be Recognized (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period (in years) | 2 months 12 days | 1 year 1 month 6 days | 1 year 9 months 18 days |
Capital Stock - Schedule of Sha
Capital Stock - Schedule of Share-based Compensation, Stock Options, Activity (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding, beginning of year | 3,736,157 | 4,892,962 | 5,732,209 |
Exercised | (41,613) | ||
Forfeited | (796) | (88,934) | (34,678) |
Expired | (126,569) | (903,038) | (786,086) |
Cancelled | (4,053) | (123,220) | (18,483) |
Stock options outstanding, end of year | 3,604,739 | 3,736,157 | 4,892,962 |
Stock options exercisable, end of year | 3,523,335 | 3,488,107 | 4,311,761 |
Stock options outstanding, weighted average exercise price per share, beginning of year | $ 26.61 | $ 26.81 | $ 26.82 |
Exercised, weighted average exercise price per share | 21.23 | ||
Forfeited, weighted average exercise price per share | 22.49 | 22.49 | 22.49 |
Expired, weighted average exercise price per share | 33.61 | 28.31 | 27.07 |
Cancelled, weighted average exercise price per share | 27.92 | 26.68 | 27.97 |
Stock options outstanding, weighted average exercise price per share, end of year | 26.36 | 26.61 | 26.81 |
Stock options exercisable, weighted average exercise price per share, end of year | $ 26.45 | $ 26.93 | $ 27.30 |
Capital Stock - Expenses Rela_2
Capital Stock - Expenses Related to RSU Grants Issued to Employees and Directors in Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 27,013 | $ 25,614 | $ 21,493 |
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 15,498 | $ 15,555 | $ 13,761 |
Capital Stock - Total Share-B_2
Capital Stock - Total Share-Based Compensation Expense Related to Non-Vested RSUs not Yet Recognized and Weighted Average Period (Details) - Restricted Share Units [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense related to non-vested RSUs not yet recognized | $ 17,457 | $ 15,913 | $ 17,343 |
Weighted average period awards are expected to be recognized (in years) | 1 year 6 months | 1 year 7 months 6 days | 1 year 10 months 24 days |
Capital Stock - Restricted Stoc
Capital Stock - Restricted Stock Units Activity under the IMAX LTIP (Details) - Restricted Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of awards outstanding, beginning of year | 1,457,883 | 1,564,838 | 1,065,347 |
Granted | 708,313 | 831,123 | 1,050,385 |
Vested and settled | (800,231) | (689,872) | (453,993) |
Forfeited | (113,921) | (248,206) | (96,901) |
Number of awards outstanding, end of year | 1,252,044 | 1,457,883 | 1,564,838 |
Weighted average grant date fair value per share, beginning of year | $ 19.16 | $ 18.33 | $ 23.17 |
Granted, weighted average grant date fair value per share | 19.31 | 21.03 | 15.35 |
Vested and settled, weighted average grant date fair value per share | 19.10 | 19.46 | 22.71 |
Forfeited, weighted average grant date fair value per share | 20.39 | 19.38 | 18.81 |
Weighted average grant date fair value per share, end of year | $ 19.16 | $ 19.16 | $ 18.33 |
Capital Stock - Summary of Numb
Capital Stock - Summary of Number of RSUs Issued From Carve-Out Balance (Details) - Restricted Share Units [Member] - shares | 7 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU carve out, balance beginning of period | 885,000 | |
RSUs issued from carve-out | (59,030) | (482,912) |
RSU carve out, balance end of period | 343,058 |
Capital Stock - Expenses Rela_3
Capital Stock - Expenses Related to PSUs Grants Issued to Employees and Directors in Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 27,013 | $ 25,614 | $ 21,493 |
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8,306 | $ 5,322 | $ 2,563 |
Capital Stock - Performance Sto
Capital Stock - Performance Stock Units Activity under the IMAX LTIP (Details) - Performance Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of awards outstanding, beginning of year | 613,405 | 361,844 | |
Granted | 359,138 | 309,574 | 370,265 |
Forfeited | (40,827) | (58,013) | (8,421) |
Number of awards outstanding, end of year | 931,716 | 613,405 | 361,844 |
Weighted average grant date fair value per share, beginning of year | $ 18.21 | $ 15.68 | |
Granted, weighted average grant date fair value per share | 20.34 | 20.77 | $ 15.66 |
Forfeited, weighted average grant date fair value per share | 19.90 | 16.11 | 4.84 |
Weighted average grant date fair value per share, end of year | $ 18.96 | $ 18.21 | $ 15.68 |
Capital Stock - Summary of Expe
Capital Stock - Summary of Expense Related to Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | $ 27,000 | $ 25,600 | $ 21,500 |
China Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | 91 | 285 | 875 |
China RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | 2,284 | 2,810 | 2,093 |
China PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | 262 | 578 | 208 |
China Options, RSUs and PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | $ 2,637 | $ 3,673 | $ 3,176 |
Capital Stock - Summary of Shar
Capital Stock - Summary of Share Repurchases (Details) | 12 Months Ended | |||
Dec. 31, 2022 $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
IMAX China | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total Number of Shares Repurchased | 2,961,800 | 2,961,800 | 6,664,700 | 6,664,700 |
Average Price Paid Per Share | (per share) | $ 1.02 | $ 8 | $ 1.50 | $ 11.68 |
Parent [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Total Number of Shares Repurchased | 5,401,852 | 5,401,852 | 841,331 | 841,331 |
Average Price Paid Per Share | $ / shares | $ 15.19 | $ 16.51 |
Capital Stock - Basic and Dilut
Capital Stock - Basic and Diluted Weighted Average Share Computations (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Issued and outstanding, beginning of period | 58,654 | 58,921 | 61,176 |
Weighted average number of shares (repurchased) issued , net | (1,980) | 205 | (1,939) |
Weighted average number of shares outstanding - basic | 56,674 | 59,126 | 59,237 |
Weighted average number of shares outstanding - diluted | 56,674 | 59,126 | 59,237 |
Consolidated Statements of Op_4
Consolidated Statements of Operations Supplemental Information - Summary of Selling Expenses, Including Sales Commissions and Marketing and Other Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Collaborative Arrangements [Line Items] | ||||
Sales Commissions | $ 564 | $ 2,284 | $ 2,186 | |
Marketing and Other | 21,757 | 11,021 | 5,893 | |
Technology Sales [Member] | ||||
Collaborative Arrangements [Line Items] | ||||
Sales Commissions | [1] | 479 | 1,885 | 1,278 |
Marketing and Other | [1] | 810 | 989 | 1,077 |
Image Enhancement and Maintenance Services [Member] | ||||
Collaborative Arrangements [Line Items] | ||||
Marketing and Other | [2] | 20,284 | 8,923 | 4,306 |
Technology Rentals [Member] | ||||
Collaborative Arrangements [Line Items] | ||||
Sales Commissions | [3] | 85 | 399 | 908 |
Marketing and Other | [3] | $ 663 | $ 1,109 | $ 510 |
[1] Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX System. Direct advertising and marketing costs for each IMAX System are expensed as incurred. Film exploitation costs, including advertising and marketing costs are expensed as incurred. Sales commissions related to joint revenue sharing arrangements accounted for operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the IMAX System is installed. Direct advertising and marketing costs for each IMAX System are expensed as incurred. |
Consolidated Statements of Op_5
Consolidated Statements of Operations Supplemental Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Film | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2017 Film | |
Foreign Exchange | ||||
Foreign exchange translation gain (loss) | $ (3,200) | $ 1,300 | $ 800 | |
Collaborative Arrangements | ||||
Average percentage of the box-office receipts of the film for recovering digital re-mastering cost | 12.50% | |||
Revenue attributable to transactions arising between the company and its customers under IMAX DMR arrangements | $ 94,900 | 70,700 | 28,300 | |
Number of significant co-produced film arrangement | Film | 1 | 1 | ||
Number of other co-produced film arrangements | Film | 3 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 821,154 | 883,247 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 491,386 | 452,875 | ||
Amounts attributable to transactions between the company and other parties involved in the production of films included in costs and expenses | 800 | 400 | 2,000 | |
Co-produced television collaborative arrangement revenue | 300 | 200 | 300 | |
Co-produced television collaborative arrangement costs and expenses | 0 | 0 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Collaborative Arrangements | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | 1,523 | 1,576 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 248 | 259 | ||
Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | ||||
Collaborative Arrangements | ||||
Revenues attributable to transactions arising between the company and its customers under joint revenue sharing arrangements | $ 66,600 | $ 51,600 | $ 19,900 |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Decrease (Increase) in: | |||||||
Financing receivables | $ 5,411 | $ (7,637) | $ (10,568) | ||||
Prepaid expenses | (1,892) | (3,230) | (979) | ||||
Variable consideration receivables | 667 | (2,905) | (2,361) | ||||
Other assets | 968 | 1,003 | (4,747) | ||||
Increase (Decrease) in: | |||||||
Accounts payable | 8,496 | (4,752) | 414 | ||||
Accrued and other liabilities | (12,849) | 15,167 | (6,399) | ||||
Changes in other non-cash operating assets and liabilities | 801 | (2,354) | (24,640) | ||||
Cash payments made on account of: | |||||||
Income taxes | $ 8,900 | 13,963 | [1] | 18,475 | [1] | 4,763 | [1] |
Interest | $ 715 | $ 3,251 | $ 5,773 | ||||
[1] In 2021 , the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $ 8.9 million in income taxes and $ 1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $ 8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $ 1.6 million in associated interest. |
Consolidated Statements of Ca_5
Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Operating Assets and Liabilities (Parentheticals) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2022 | [1] | Dec. 31, 2021 | [1] | Dec. 31, 2020 | [1] | |
Supplemental Cash Flow Elements [Line Items] | |||||||
Payment of income taxes | $ 8,900 | $ 13,963 | $ 18,475 | $ 4,763 | |||
Accounts Receivable Net Of Allowance For Credit Losses | |||||||
Supplemental Cash Flow Elements [Line Items] | |||||||
Payment of income taxes | 8,900 | ||||||
Interest | 1,600 | ||||||
Foreign Country [Member] | |||||||
Supplemental Cash Flow Elements [Line Items] | |||||||
Payment of income taxes | 8,900 | ||||||
Interest | $ 1,600 | ||||||
[1] In 2021 , the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $ 8.9 million in income taxes and $ 1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $ 8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $ 1.6 million in associated interest. |
Consolidated Statements of Ca_6
Consolidated Statements of Cash Flows Supplemental Information - Summary of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Summary of Depreciation and amortization | ||||
Film assets | $ 16,881 | $ 16,316 | $ 8,838 | |
Property, plant and equipment: | ||||
Equipment supporting joint revenue sharing arrangements | 22,165 | 22,320 | 24,930 | |
Other property, plant and equipment | [1] | 9,757 | 9,479 | 11,225 |
Other intangible assets | [2] | 6,103 | 6,079 | 6,565 |
Other assets | [3] | 1,755 | 1,888 | 1,146 |
Depreciation and amortization | $ 56,661 | $ 56,082 | $ 52,704 | |
[1] Includes the amortization of laser projection systems, camera, and lens upgrades recorded in Research and Development on the Statements of Operations of $ 0.6 million in the year ended December 31, 2022 (2021 — $ 0.8 million; 2020 — $ 0.9 million). Includes the amortization of licenses and intellectual property recorded in Research and Development on the Consolidated Statements of Operations of $ 1.3 million in the year ended December 31, 2022 (2021 — $ 1.3 million; 2020 — $ 1.3 million). Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements. |
Consolidated Statements of Ca_7
Consolidated Statements of Cash Flows Supplemental Information - Summary of Depreciation and Amortization (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |||
Amortization of property, plant and equipment net in research and development | $ 0.6 | $ 0.8 | $ 0.9 |
Amortization of intangible assets net in research and development | $ 1.3 | $ 1.3 | $ 1.3 |
Consolidated Statements of Ca_8
Consolidated Statements of Cash Flows Supplemental Information - Write-downs, Net of Recoveries (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Write-downs | ||||||
Other assets | $ 4,500 | ¥ 30 | $ 0 | $ 1,151 | [1] | |
Inventories | [2] | 741 | 890 | 3,632 | ||
Equipment supporting joint revenue sharing arrangements | [3] | 973 | 364 | 1,784 | ||
Other property, plant and equipment | 57 | 217 | 174 | |||
Other intangible assets | 87 | 142 | 184 | |||
Film assets | [4] | 848 | 151 | 10,804 | ||
Write-downs | $ 7,176 | $ 1,764 | $ 17,729 | |||
[1] In 2022 , the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020 , the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such write-downs including asset impairments were incurred in 2021. In 2022 , the Company recorded write-downs of $ 0.9 million, net of a recovery of $ 0.2 million in Costs and Expenses Applicable to Technology Sales. The write-downs recorded during the year ended December 31, 2022 include $ 0.4 million related to excess and damaged inventory and $ 0.3 million recorded to reduce the carrying value of service parts held in Russia . For the years ended December 31, 2021 and 2020 , the Company recorded write-downs of $ 0.9 million and $ 3.6 million, respectively, in Costs and Expenses Applicable to Technology Sales to reduce the carrying value of excess inventory. In 2022 , the Company recorded charges of $ 1.0 million ( 2021 — $ 0.4 million; 2020 — $ 1.8 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-downs of leased xenon-based digital systems which were taken out of service in connection with exhibitor customer upgrades to laser-based digital systems, as well as an IMAX System that was removed from its existing location. In 2022 , the Company recorded impairment losses of $ 0.8 million ( 2021 — $ 0.2 million) related to the write-down of DMR and documentary film assets. In 2020, the Company recorded impairment losses of $ 10.8 million principally to write-down the carrying value of certain documentary, alternative content film assets and DMR related film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. |
Consolidated Statements of Ca_9
Consolidated Statements of Cash Flows Supplemental Information - Write-downs, Net of Recoveries (Parenthetical) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Supplemental Cash Flow Elements [Line Items] | ||||||
Other assets write downs on impairment | $ 4,500 | ¥ 30 | $ 0 | $ 1,151 | [1] | |
Theater system components written off in Costs and expenses | 1,000 | 400 | 1,800 | |||
Write-downs for excess and obsolete inventory | [2] | 741 | 890 | 3,632 | ||
Film assets write downs on impairment loss | 800 | $ 200 | $ 10,800 | |||
Technology Sales [Member] | ||||||
Supplemental Cash Flow Elements [Line Items] | ||||||
Write-downs for excess and obsolete inventory | 900 | |||||
Write-downs net of a recovery | 200 | |||||
Excess and damaged inventory | ||||||
Supplemental Cash Flow Elements [Line Items] | ||||||
Write-downs for excess and obsolete inventory | 400 | |||||
Carrying value of service parts | Russia | ||||||
Supplemental Cash Flow Elements [Line Items] | ||||||
Write-downs for excess and obsolete inventory | $ 300 | |||||
[1] In 2022 , the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020 , the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such write-downs including asset impairments were incurred in 2021. In 2022 , the Company recorded write-downs of $ 0.9 million, net of a recovery of $ 0.2 million in Costs and Expenses Applicable to Technology Sales. The write-downs recorded during the year ended December 31, 2022 include $ 0.4 million related to excess and damaged inventory and $ 0.3 million recorded to reduce the carrying value of service parts held in Russia . For the years ended December 31, 2021 and 2020 , the Company recorded write-downs of $ 0.9 million and $ 3.6 million, respectively, in Costs and Expenses Applicable to Technology Sales to reduce the carrying value of excess inventory. |
Consolidated Statements of C_10
Consolidated Statements of Cash Flows Supplemental Information - Significant Non-cash Investing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net increase (decrease) in accruals related to: | |||
Investment in equipment supporting joint revenue sharing arrangements | $ 790 | $ 1,009 | $ (1,888) |
Acquisition of other intangible assets | 30 | (891) | 792 |
Purchases of property, plant and equipment | 311 | (188) | 158 |
Net accruals | $ 1,131 | $ (70) | $ (938) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows Supplemental Information (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Liability related to repurchase of common shares expense recognized not settled | $ 2 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | $ 300,805 | $ 254,883 | $ 137,003 |
Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 115,628 | 101,919 | 66,369 | |
Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 106,626 | 78,584 | 36,350 | |
Lease Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,069 | 63,588 | 24,168 | |
Finance Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,482 | 10,792 | 10,116 | |
Technology Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 69,158 | 66,153 | 49,728 | |
Technology Sales [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53,505 | 43,738 | 37,492 | |
Technology Sales [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,370 | 5,617 | 5,909 | |
Technology Sales [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,804 | 5,406 | 2,056 | |
Technology Sales [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Other Theater Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,255 | 2,363 | 1,666 | |
Technology Sales [Member] | Other Theater Business [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,255 | 2,363 | 1,666 | |
Technology Sales [Member] | Other Theater Business [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,648 | 3,516 | 2,067 | |
Technology Sales [Member] | Other [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,546 | 3,475 | 1,957 | |
Technology Sales [Member] | Other [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102 | 41 | 110 | |
Technology Sales [Member] | IMAX Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 54,451 | 54,868 | 43,939 |
Technology Sales [Member] | IMAX Systems [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 43,704 | 37,900 | 33,869 |
Technology Sales [Member] | IMAX Systems [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 7,268 | 5,576 | 5,799 |
Technology Sales [Member] | Lease Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,283 | 16,798 | 6,327 | |
Technology Sales [Member] | Lease Arrangements [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,804 | 5,406 | 2,056 | |
Technology Sales [Member] | Lease Arrangements [Member] | Other Theater Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Lease Arrangements [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Lease Arrangements [Member] | IMAX Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 3,479 | 11,392 | 4,271 |
Technology Sales [Member] | Finance Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | Other Theater Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | IMAX Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 0 | 0 | 0 |
Image Enhancement and Maintenance Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 161,379 | 131,148 | 59,318 | |
Image Enhancement and Maintenance Services [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,123 | 58,181 | 28,877 | |
Image Enhancement and Maintenance Services [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 99,256 | 72,967 | 30,441 | |
Image Enhancement and Maintenance Services [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,969 | 1,426 | ||
Image Enhancement and Maintenance Services [Member] | Other [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,178 | 377 | ||
Image Enhancement and Maintenance Services [Member] | Other [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,791 | 1,049 | ||
Image Enhancement and Maintenance Services [Member] | IMAX DMR [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94,867 | 70,659 | 28,265 | |
Image Enhancement and Maintenance Services [Member] | IMAX DMR [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | IMAX DMR [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 94,867 | 70,659 | 28,265 | |
Image Enhancement and Maintenance Services [Member] | Film Post-Production [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,783 | 4,260 | 3,878 | |
Image Enhancement and Maintenance Services [Member] | Film Post-Production [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,783 | 4,260 | 3,878 | |
Image Enhancement and Maintenance Services [Member] | Film Post-Production [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Film Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,152 | 1,464 | 4,841 | |
Image Enhancement and Maintenance Services [Member] | Film Distribution [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 554 | 205 | 3,000 | |
Image Enhancement and Maintenance Services [Member] | Film Distribution [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,598 | 1,259 | 1,841 | |
Image Enhancement and Maintenance Services [Member] | IMAX Maintenance Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56,608 | 53,339 | 21,999 | |
Image Enhancement and Maintenance Services [Member] | IMAX Maintenance Segment [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56,608 | 53,339 | 21,999 | |
Image Enhancement and Maintenance Services [Member] | IMAX Maintenance Segment [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Lease Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Lease Arrangements [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Image Enhancement and Maintenance Services [Member] | Lease Arrangements [Member] | IMAX DMR [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Lease Arrangements [Member] | Film Post-Production [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Lease Arrangements [Member] | Film Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Lease Arrangements [Member] | IMAX Maintenance Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Finance Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Finance Income [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Image Enhancement and Maintenance Services [Member] | Finance Income [Member] | IMAX DMR [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Finance Income [Member] | Film Post-Production [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Finance Income [Member] | Film Distribution [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Image Enhancement and Maintenance Services [Member] | Finance Income [Member] | IMAX Maintenance Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61,786 | 46,790 | 17,841 | |
Technology Rentals [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18 | 606 | 335 | |
Technology Rentals [Member] | Other [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Other [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 335 | |
Technology Rentals [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61,768 | 46,184 | 17,841 | |
Technology Rentals [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Lease Arrangements [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61,786 | 46,790 | 17,841 | |
Technology Rentals [Member] | Lease Arrangements [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18 | 606 | 0 | |
Technology Rentals [Member] | Lease Arrangements [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61,768 | 46,184 | 17,841 | |
Technology Rentals [Member] | Finance Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Finance Income [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Technology Rentals [Member] | Finance Income [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Finance Income Segment [Member] | IMAX Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,482 | 10,792 | 10,116 | |
Finance Income Segment [Member] | IMAX Systems [Member] | Fixed Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Finance Income Segment [Member] | IMAX Systems [Member] | Variable Consideration [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Finance Income Segment [Member] | Lease Arrangements [Member] | IMAX Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | |
Finance Income Segment [Member] | Finance Income [Member] | IMAX Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 8,482 | $ 10,792 | $ 10,116 | |
[1] The Company’s largest customer represents 12 % of total Revenues as of December 31, 2022 (2021 ― 10 % ; 2020 ― 16 % ). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2022 and 2021 . Includes revenues earned from sale and sales-type lease arrangements involving new and upgraded IMAX Systems, as well as the impact of renewals and amendments to existing system arrangements. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Maintenance Services [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue Remaining Performance Obligation | $ 21 | $ 20.2 | $ 21.6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) - Segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting (Textual) [Abstract] | ||
Description of products and services from which each reportable segment derives its revenues | The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements (“JRSA”); (iii) IMAX Systems; (iv) IMAX Maintenance; (v) Other Theater Business; (vi) Film Distribution; and (vii) Film Post-Production. The Company's activities that do not meet the criteria to be considered a reportable segment are disclosed within All Other. The Company organizes its reportable segments into the following three categories, identified by the nature of the product sold or service provided | |
Disclosure on geographic areas, description of revenue from external customers | No single country in the Rest of the World, Western Europe, Latin America, and Asia (excluding Greater China) classifications comprise more than 10% of total revenue. | |
Forecast [Member] | ||
Segment Reporting (Textual) [Abstract] | ||
Number of reportable segments | 2 |
Segment Reporting - Segment Rep
Segment Reporting - Segment Reporting Information by Category and Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues | ||||
Revenue | [1] | $ 300,805 | $ 254,883 | $ 137,003 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 156,355 | 134,406 | 21,540 | |
Assets | ||||
Assets | 821,154 | 883,247 | ||
Amortization | ||||
Amortization | 56,661 | 56,082 | 52,704 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | 15,723 | (2,187) | 36,337 | |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 28,227 | 13,684 | 7,351 | |
IMAX DMR [Member] | ||||
Revenues | ||||
Revenue | [1] | 94,867 | 70,659 | 28,265 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 57,964 | 44,782 | 13,731 | |
Assets | ||||
Assets | 48,755 | 48,299 | ||
Amortization | ||||
Amortization | 16,367 | 15,917 | 10,269 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | 29 | 151 | 1,057 | |
JRSA, Contingent Rent [Member] | ||||
Revenues | ||||
Revenue | [1] | 61,768 | 46,184 | 17,841 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 37,394 | 21,761 | (9,500) | |
Assets | ||||
Assets | 193,403 | 196,789 | ||
Amortization | ||||
Amortization | 23,920 | 24,208 | 26,076 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | 973 | 364 | 1,784 | |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 19,803 | 10,094 | 6,654 | |
IMAX Technology Network [Member] | ||||
Revenues | ||||
Revenue | [1] | 156,635 | 116,843 | 46,106 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 95,358 | 66,543 | 4,231 | |
IMAX Systems [Member] | ||||
Revenues | ||||
Revenue | [1],[2] | 62,933 | 65,660 | 54,055 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | [2] | 35,129 | 34,981 | 24,816 |
Assets | ||||
Assets | 255,458 | 249,672 | ||
Amortization | ||||
Amortization | 169 | 2,076 | 3,548 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | 150 | 837 | 2,872 | |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 2,574 | 621 | 50 | |
IMAX Maintenance Reporting Unit [Member] | ||||
Revenues | ||||
Revenue | [1] | 56,608 | 53,339 | 21,999 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 27,109 | 27,572 | 3,068 | |
Assets | ||||
Assets | 48,764 | 38,530 | ||
Amortization | ||||
Amortization | 213 | |||
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | 591 | 53 | 510 | |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 4 | 25 | ||
JRSA, Fixed Fees [Member] | ||||
Revenues | ||||
Revenue | [1] | 4,804 | 5,406 | 2,056 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 589 | 1,343 | 529 | |
Assets | ||||
Assets | 26,574 | 27,930 | ||
Other Theater Business [Member] | ||||
Revenues | ||||
Revenue | [3] | 6,255 | 2,363 | 1,666 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | [3] | 807 | 398 | (438) |
Assets | ||||
Assets | 110 | 82 | ||
IMAX Technology Sales and Maintenance [Member] | ||||
Revenues | ||||
Revenue | [1] | 130,600 | 126,768 | 79,776 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 63,634 | 64,294 | 27,975 | |
Post-Production [Member] | ||||
Revenues | ||||
Revenue | [1] | 3,783 | 4,260 | 3,878 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 1,540 | 1,969 | (358) | |
Assets | ||||
Assets | 32,406 | 31,575 | ||
Amortization | ||||
Amortization | 924 | 1,281 | ||
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 1,195 | 609 | 456 | |
Film Distribution [Member] | ||||
Revenues | ||||
Revenue | [4] | 3,152 | 1,464 | 4,841 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | [4] | (7,668) | (1,121) | (9,840) |
Assets | ||||
Assets | 11,545 | 7,185 | ||
Amortization | ||||
Amortization | 2,423 | 600 | 1,213 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | [4] | 819 | 9,997 | |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 4,126 | 1,599 | ||
Sub-total for Reportable Segments | ||||
Revenues | ||||
Revenue | [1] | 294,170 | 249,335 | 134,601 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | 152,864 | 131,685 | 22,008 | |
Assets | ||||
Assets | 617,015 | 600,062 | ||
Amortization | ||||
Amortization | 42,879 | 43,725 | 42,600 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | 2,562 | 1,405 | 16,220 | |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | 27,702 | 12,948 | 7,160 | |
Reportable Segments [Member] | ||||
Revenues | ||||
Revenue | [1] | 6,935 | 5,724 | 8,719 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | (6,128) | 848 | (10,198) | |
Other [Member] | ||||
Revenues | ||||
Revenue | [1],[5] | 6,635 | 5,548 | 2,402 |
Gross Margin (Margin Loss) | ||||
Gross Margin (Margin Loss) | [5] | 3,491 | 2,721 | (468) |
Assets | ||||
Assets | [5] | 29,686 | 1,420 | |
Amortization | ||||
Amortization | [5] | 309 | 11 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | [5] | 52 | ||
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | [5] | 9 | ||
Corporate and other non-segment specific assets [Member] | ||||
Assets | ||||
Assets | 174,453 | 281,765 | ||
Amortization | ||||
Amortization | 13,473 | 12,357 | 10,093 | |
Write-downs, including asset impairments and credit loss expense | ||||
Write-downs, including asset impairments and credit loss expense | [5],[6] | 13,161 | (3,592) | 20,065 |
Purchase of property, plant and equipment | ||||
Purchases of fixed assets | $ 516 | $ 736 | $ 191 | |
[1] The Company’s largest customer represents 12 % of total Revenues as of December 31, 2022 (2021 ― 10 % ; 2020 ― 16 % ). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2022 and 2021 . The revenue from this segment includes the initial upfront payments and the present value of fixed minimum payments from sale and sales-type lease arrangements of IMAX Systems, as well as the present value of estimated variable consideration from sales of IMAX Systems. To a lesser extent, the revenue from this segment also includes finance income associated with these revenue streams. The revenue from this segment principally includes after-market sales of IMAX projection system parts and 3D glasses. For the year ended December 31, 2022 , the Company recorded an impairment loss of $ 0.8 million related to the write-down of documentary film assets. During the year ended December 31, 2020 , Film Distribution segment results were significantly influenced by impairment losses of $ 10.0 million, to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. For the year ended December 31, 2022 , the Company recorded an impairment loss of $ 0.8 million related to the write-down of documentary film assets. All Other includes the results from IMAX Enhanced, SSIMWAVE, and other ancillary activities. In the first quarter of 2022, the Company's internal reporting was updated to reclassify the results of IMAX Enhanced out of the New Business Initiatives segment into All Other for segment reporting purposes. Prior period comparatives have been revised to conform with the current period presentation. (See Note 5 for additional information related to the Company's acquisition of SSIMWAVE. During the year ended December 31, 2022 , includes provision of current expected credit losses of $ 8.5 million ( 2021 ― net reversal of $ 4.0 million; 2020 ― provision of $ 18.6 million). (See Note 6 .) |
Segment Reporting - Segment R_2
Segment Reporting - Segment Reporting Information by Category and Reportable Segment (Parenthetical) (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Segment Reporting Information [Line Items] | |||||||
Percentage of total revenues represented by largest customer | 12% | 12% | 10% | 16% | |||
Segment Reporting (Textual) [Abstract] | |||||||
Impairment loss | $ 0 | ||||||
Film assets write downs on impairment loss | $ 800 | 200 | $ 10,800 | ||||
Amortization of deferred financing costs | 3,177 | 2,513 | 902 | ||||
Other assets write downs on impairment | 4,500 | ¥ 30 | 0 | 1,151 | [1] | ||
Wanda Film (Horgos) Co. Ltd [Member] | |||||||
Segment Reporting (Textual) [Abstract] | |||||||
Investment in film impairment | $ 4,500 | ¥ 30 | |||||
Distribution [Member] | |||||||
Segment Reporting (Textual) [Abstract] | |||||||
Impairment loss | 10,000 | ||||||
Corporate and other non-segment specific assets [Member] | |||||||
Segment Reporting (Textual) [Abstract] | |||||||
Write-downs, included in current expected credit loss expense | $ 8,500 | $ 4,000 | $ 18,600 | ||||
[1] In 2022 , the Company recognized a full impairment of its RMB 30.0 million ($ 4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (See Note 23(e).) In 2020 , the Company recorded a write-down of $ 1.2 million in Asset Impairments related to content-related assets which became impaired in the year. No such write-downs including asset impairments were incurred in 2021. |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | [1] | $ 300,805 | $ 254,883 | $ 137,003 |
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 107,734 | 73,499 | 30,157 | |
Greater China [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 73,330 | 112,801 | 52,331 | |
Asia (excluding Greater China) [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 47,145 | 23,682 | 20,090 | |
Western Europe [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 40,245 | 20,942 | 13,683 | |
Latin America [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 9,418 | 3,601 | 6,114 | |
Canada [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 7,550 | 3,266 | 1,365 | |
Russia/the CIS & Ukraine [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | [2] | 2,849 | 7,308 | 2,927 |
Rest of the World [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 12,534 | $ 9,784 | $ 10,336 | |
[1] The Company’s largest customer represents 12 % of total Revenues as of December 31, 2022 (2021 ― 10 % ; 2020 ― 16 % ). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2022 and 2021 . In addition to Russia, the CIS includes Azerbaijan, Belarus, Kazakhstan, and Kyrgyzstan. Commencing i n March 2022, in response to the ongoing conflict between Russia and Ukraine and resulting sanctions, the Company suspended its operations in Russia and Belarus. As of December 31, 2022, the IMAX network includes 54 systems in Russia, eight systems in Ukraine, and one system in Belarus. |
Segment Reporting - Geographi_2
Segment Reporting - Geographic Information (Parenthetical) (Details) | Dec. 31, 2022 System |
RU | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Number of Systems | 54 |
UA | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Number of Systems | 8 |
BY | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Number of Systems | 1 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Property Plant and Equipment By Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | $ 252,896 | $ 260,353 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | 94,505 | 91,856 |
Greater China [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | 86,665 | 100,182 |
Canada [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | 36,385 | 32,643 |
Western Europe [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | 20,132 | 21,684 |
Asia (excluding Greater China) [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | 10,471 | 9,463 |
Rest of the World [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment | $ 4,738 | $ 4,525 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021 USD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Dec. 31, 2022 USD ($) Country | Jan. 10, 2022 USD ($) | Jan. 10, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | |
Financial Instruments (Textual) [Abstract] | |||||||
Cash and cash equivalents | $ 97,401 | $ 189,711 | |||||
Cash held outside of Canada | $ 79,700 | 102,100 | |||||
Number of countries that generate box office | Country | 87 | ||||||
Foreign Exchange contract settlement date range | settlement dates throughout 2023 | ||||||
Estimated gains to be reclassified to earnings within the next twelve months | $ 600 | ||||||
Investment in equity securities | 1,035 | 1,087 | |||||
Investment in equity securities - cost | $ 15,200 | ||||||
Equity securities restrictions | lock-up period of six months | ||||||
Wanda Film (Horgos) Co. Ltd [Member] | |||||||
Financial Instruments (Textual) [Abstract] | |||||||
Investments in film | $ 4,700 | ¥ 30 | |||||
Investment in film impairment | $ 4,500 | ¥ 30 | |||||
Fixed Income Securities [Member] | |||||||
Financial Instruments (Textual) [Abstract] | |||||||
Equity Investment, Debt Securities | $ 1,000 | 1,000 | |||||
Preferred Stock [Member] | Other Assets [Member] | |||||||
Financial Instruments (Textual) [Abstract] | |||||||
Investment in equity securities | $ 1,000 | 1,000 | |||||
Maoyan [Member] | |||||||
Financial Instruments (Textual) [Abstract] | |||||||
Number of shares sold | shares | 7,949,000 | ||||||
Gross proceeds from sale of investment | $ 17,800 | ||||||
Realized gain on fair value of investment | $ 5,200 | ||||||
Maximum [Member] | |||||||
Financial Instruments (Textual) [Abstract] | |||||||
Equity securities percentage ownership | 1% | ||||||
China [Member] | |||||||
Financial Instruments (Textual) [Abstract] | |||||||
Cash held/undistributed earnings | $ 43,700 | $ 76,300 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Financial Instrument | |||
Cash and cash equivalents | $ 97,401 | $ 189,711 | |
Net investment in sales-type leases | 28,332 | 28,392 | |
Credit Facility borrowings | (36,111) | (2,472) | |
Carrying Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Other Financial Instrument | |||
Cash and cash equivalents | [1] | 97,401 | 189,711 |
Equity securities | [2] | 1,035 | 1,087 |
Carrying Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | |||
Other Financial Instrument | |||
Net financed sales receivables | [3] | 101,052 | 112,657 |
Net investment in sales-type leases | [3] | 28,332 | 28,392 |
Equity securities | [1] | 1,000 | 1,000 |
COLI | [4] | 3,398 | 3,275 |
Convertible Notes | [5] | (230,000) | (230,000) |
Carrying Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | HSBC China Facility [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [1] | (12,496) | |
Carrying Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | Bank of China Facility [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [1] | (374) | (3,612) |
Carrying Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | Federal Economic Development Loan [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [3] | (1,782) | |
Carrying Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | Wells Fargo Credit Facility [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [1] | (25,000) | |
Carrying Amount, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 | |||
Other Financial Instrument | |||
Foreign exchange contracts forwards | [2] | (649) | 79 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Other Financial Instrument | |||
Cash and cash equivalents | [1] | 97,401 | 189,711 |
Equity securities | [2] | 1,035 | 1,087 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | |||
Other Financial Instrument | |||
Net financed sales receivables | [3] | 100,059 | 112,662 |
Net investment in sales-type leases | [3] | 27,972 | 28,407 |
Equity securities | [1] | 1,000 | 1,000 |
COLI | [4] | 3,398 | 3,275 |
Convertible Notes | [5] | (196,717) | (223,100) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | HSBC China Facility [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [1] | (12,496) | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | Bank of China Facility [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [1] | (374) | (3,612) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | Federal Economic Development Loan [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [3] | (1,782) | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 | Wells Fargo Credit Facility [Member] | |||
Other Financial Instrument | |||
Credit Facility borrowings | [1] | (25,000) | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 | |||
Other Financial Instrument | |||
Foreign exchange contracts forwards | [2] | $ (649) | $ 79 |
[1] Recorded at cost, which approximates fair value. Fair value is determined using quoted prices in active markets. Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms. Measured at cash surrender value, which approximates fair value. Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data. |
Financial Instruments - Notiona
Financial Instruments - Notional Amount of Derivative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts — Forwards | $ 24,707 | $ 26,702 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value of Foreign Exchange Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives Fair Value [Line Items] | ||
Foreign currency derivatives | $ 50 | $ 184 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value | (649) | 79 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency derivatives | 50 | 184 |
Accrued and other liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ (699) | $ (105) |
Financial Instruments - Derivat
Financial Instruments - Derivatives in Foreign Currency Hedging Relationships (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative (Loss) Gain Recognized in OCI (Effective Portion) | $ (1,323,000) | $ 468,000 | $ 500,000 |
Derivative (Loss) Gain Reclassified from AOCI (Effective Portion) included in Selling, general and administrative expenses | (596,000) | 1,707,000 | (578,000) |
Realized net loss (gain) from cash flow hedging instruments | (596,000) | 1,707,000 | (604,000) |
Derivative Gain (Loss) Recognized In and Out of OCI (Effective Portion) | 0 | 0 | 17,000 |
Fair Value Hedging [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative (Loss) Gain Recognized in OCI (Effective Portion) | (1,323,000) | 468,000 | 550,000 |
Inventories [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Realized net loss (gain) from cash flow hedging instruments | $ 0 | $ 0 | $ (26,000) |
Financial Instruments - Non Des
Financial Instruments - Non Designated Derivatives in Foreign Currency Relationships (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Gain Reclassified From AOCI (Ineffective portion) | $ (318) | ||
Foreign Exchange Contracts - Forwards [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Location of Derivative Gain | $ 0 | $ 398 | $ 344 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | Selling, General and Administrative Expense |
Employee's Pension and Postreti
Employee's Pension and Postretirement Benefits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 19, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Deferred compensation plan description | The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein). | |||
Deferred Compensation Plan [Member] | Accrued and Other Liabilities [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Benefit obligation recorded | $ 3,900 | $ 3,800 | ||
Deferred Compensation Plan [Member] | Prepaid Expenses [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Company-owned life insurance | $ 3,400 | 3,300 | ||
SERP Benefits [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Defined benefit pension plan | The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”), covering its CEO, Richard L. Gelfond. | |||
Companies contribution and expenses | $ 0 | |||
Expected interest costs in the remainder of the year | 800 | |||
Expected interest costs | $ 160 | 72 | $ 379 | |
Defined Contribution Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Defined contribution plans for employees | The Company also maintains defined contribution plans for its employees, including its executive officers. The Company makes contributions to these plans on behalf of employees in an amount up to 5% of their base salary subject to certain prescribed maximums. | |||
Maximum percentage of base salary contributed to Defined Contribution Plan by Company | 5% | |||
Canadian Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Companies contribution and expenses | $ 1,100 | 1,100 | 1,100 | |
Us Internal Revenue Code [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Companies contribution and expenses | 700 | 500 | 600 | |
Postretirement Benefits Canadian Employees [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Expected interest costs | 46 | $ 42 | $ 47 | |
Postretirement Benefits Canadian Employees [Member] | Maximum [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Expected interest costs | $ 100 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | |||
Richard L. Gelfond [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Benefit payable | $ 20,300 |
Employee's Pension and Postre_2
Employee's Pension and Postretirement Benefits - Summary of Amounts Accrued for the SERP (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amounts Accrued | |||
Obligation, beginning of period | $ 20,056 | $ 20,116 | |
Interest cost | 160 | 72 | $ 379 |
Actuarial gain | (2,901) | (132) | |
Obligation, end of period and unfunded status | $ 17,315 | $ 20,056 | $ 20,116 |
Employee's Pension and Postre_3
Employee's Pension and Postretirement Benefits - Summary of Accumulated Other Comprehensive (Loss) Income and Components of Net Periodic Benefit Cost in Future Periods (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Components of net periodic benefit cost in future periods | |||
Unrealized actuarial (gain) loss | $ (3,580) | $ (679) | $ (547) |
Unamortized prior service cost | 184 | 369 | |
Net periodic benefit costs to be recognized in future periods | $ (3,580) | $ (495) | $ (178) |
Employee's Pension and Postre_4
Employee's Pension and Postretirement Benefits - Summary of Disclosure of Pension Expense (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net periodic benefit cost | |||
Interest cost | $ 160 | $ 72 | $ 379 |
Amortization of prior service cost | $ 184 | $ 185 | $ 87 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income Defined Benefit Plan Amortization Prior Service Cost Credit Arising During Period Before Tax | Other Comprehensive Income Defined Benefit Plan Amortization Prior Service Cost Credit Arising During Period Before Tax | Other Comprehensive Income Defined Benefit Plan Amortization Prior Service Cost Credit Arising During Period Before Tax |
Pension expense | $ 344 | $ 257 | $ 466 |
Employee's Pension and Postre_5
Employee's Pension and Postretirement Benefits - Summary of Assumptions to Determine SERP Obligation and Any Related Costs (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SERP Benefits [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate | 4.55% | 0.80% | 0.36% |
Employee's Pension and Postre_6
Employee's Pension and Postretirement Benefits - Summary of Amounts Include within Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Benefits Executives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation, beginning of period | $ 662 | $ 710 | |
Interest cost | 18 | 16 | $ 20 |
Benefits paid | (8) | (16) | |
Actuarial gain | (215) | (48) | |
Obligation, end of period and unfunded status | 457 | 662 | 710 |
Postretirement Benefits Canadian Employees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation, beginning of period | 1,702 | 1,862 | |
Interest cost | 46 | 42 | 47 |
Benefits paid | (155) | (118) | |
Actuarial gain | (539) | (92) | |
Unrealized foreign exchange (gain) loss | (78) | 8 | |
Obligation, end of period and unfunded status | $ 976 | $ 1,702 | $ 1,862 |
Employee's Pension and Postre_7
Employee's Pension and Postretirement Benefits - Summary of Components of Pension Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Benefits Executives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 18 | $ 16 | $ 20 |
Amortization of actuarial gain | $ (17) | ||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | ||
Pension expense | 18 | 16 | $ 3 |
Postretirement Benefits Canadian Employees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 46 | 42 | 47 |
Pension expense | $ 46 | $ 42 | $ 47 |
Employee's Pension and Postre_8
Employee's Pension and Postretirement Benefits - Summary of Accumulated Other Comprehensive (Loss) Income and Components of Net Pension Cost in Future Periods (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Postretirement Benefits Executives [Member] | |||
Components of net periodic benefit cost in future periods | |||
Unrealized actuarial (gain) loss | $ (242) | $ (27) | $ 21 |
Postretirement Benefits Canadian Employees [Member] | |||
Components of net periodic benefit cost in future periods | |||
Unrealized actuarial (gain) loss | $ (354) | $ 185 | $ 277 |
Employee's Pension and Postre_9
Employee's Pension and Postretirement Benefits - Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Postretirement Benefits Executives [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate | 5.01% | 2.71% | 2.36% |
Postretirement Benefits Canadian Employees [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate | 5% | 2.80% | 2.30% |
Employee's Pension and Postr_10
Employee's Pension and Postretirement Benefits - Summary of Weighted Average Assumptions Used to Determine the Net Postretirement Benefit Expense (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Benefits Executives [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate used in calculating net periodic benefit cost | 2.71% | 2.36% | 3.13% |
Postretirement Benefits Canadian Employees [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate used in calculating net periodic benefit cost | 2.80% | 2.30% | 3.05% |
Employee's Pension and Postr_11
Employee's Pension and Postretirement Benefits - Summary of Benefit Payment are Expected in Next Five Year (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Postretirement Benefits Executives [Member] | |
Pension and Postretirement benefits obligations | |
2023 | $ 10 |
2024 | 10 |
2025 | 11 |
2026 | 23 |
2027 | 24 |
Thereafter | 888 |
Total expected future benefit payment | 966 |
Postretirement Benefits Canadian Employees [Member] | |
Pension and Postretirement benefits obligations | |
2023 | 94 |
2024 | 94 |
2025 | 95 |
2026 | 87 |
2027 | 86 |
Thereafter | 1,082 |
Total expected future benefit payment | $ 1,538 |
Government Assistance - Additio
Government Assistance - Additional Information (Details) | 12 Months Ended | 48 Months Ended | |||||
May 29, 2019 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | May 29, 2019 CAD ($) | |
Impact of COVID-19 Pandemic [Member] | |||||||
Government Assistance [Line Items] | |||||||
Proceeds from government subsidies | $ 400,000 | $ 3,800,000 | $ 7,100,000 | ||||
Impact of COVID-19 Pandemic [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Government Assistance [Line Items] | |||||||
Proceeds from government subsidies | 300,000 | 2,900,000 | 6,000,000 | ||||
Impact of COVID-19 Pandemic [Member] | Costs and Expenses Applicable to Revenues [Member] | |||||||
Government Assistance [Line Items] | |||||||
Proceeds from government subsidies | 100,000 | 900,000 | 1,000,000 | ||||
Impact of COVID-19 Pandemic [Member] | Research and Development [Member] | |||||||
Government Assistance [Line Items] | |||||||
Proceeds from government subsidies | $ 0 | $ 100,000 | |||||
Federal Economic Development Loan Payable [Member] | |||||||
Government Assistance [Line Items] | |||||||
Loans payable | 2,812,000 | $ 2,812,000 | |||||
Debt instrument, fair value | 1,782,000 | $ 1,782,000 | |||||
SSIMWAVE Inc. [Member] | Federal Economic Development Loan Payable [Member] | |||||||
Government Assistance [Line Items] | |||||||
Percentage of contributions cover eligible and supported costs | 35% | ||||||
Contributions repayable months | 60 months | ||||||
Debt instrument repayment beginning month and year | 2024-01 | ||||||
Debt instrument, annual interest rate | 0% | 0% | |||||
Loans payable | $ 2,800,000 | $ 2,800,000 | $ 3,800,000 | ||||
SSIMWAVE Inc. [Member] | Maximum [Member] | Federal Economic Development Loan Payable [Member] | |||||||
Government Assistance [Line Items] | |||||||
Debt instrument, principal amount | $ 3,100,000 | $ 4,200,000 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2014 USD ($) Film | |
Redeemable Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 65,691 | $ 73,531 | ||
Net income (loss) attributable to non-controlling interests | 2,923 | 12,752 | $ (13,711) | |
Investment in film assets | $ 19,598 | $ 14,810 | 7,665 | |
IMAX China Noncontrolling Interest | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Minority Interest Ownership Percentage By Company | 71.73% | 71.11% | ||
IMAX China | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Non-controlling interests | $ 65,700 | $ 73,500 | ||
Net income (loss) attributable to non-controlling interests | 3,000 | 12,800 | (8,600) | |
Other Noncontrolling Interest [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Net income (loss) attributable to non-controlling interests | $ (36) | $ (1) | $ (5,139) | |
Non-controlling interest description | The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed by a third party in the amount of $25.0 million, with the possibility of contributing additional funds. The Company has contributed $9.0 million to the Original Film Fund since 2014, and has reached its maximum contribution. | |||
Number of expected original films | Film | 10 | |||
Investment in film assets | $ 22,300 | |||
Other Noncontrolling Interest [Member] | Third Party [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Film fund committed capital contribution | $ 25,000 | |||
Other Noncontrolling Interest [Member] | IMAX [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Film fund contributions paid | $ 9,000 |
Non-Controlling Interests - Sum
Non-Controlling Interests - Summary of Movement of the Non-controlling Interest in Temporary Equity in Original Film Fund (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-controlling Interests | |||
Net loss | $ 2,923 | $ 12,752 | $ (13,711) |
Other Noncontrolling Interest [Member] | |||
Non-controlling Interests | |||
Beginning Balance | 758 | 759 | 5,908 |
Return of capital to non-controlling interests | (10) | ||
Net loss | (36) | (1) | (5,139) |
Ending Balance | $ 722 | $ 758 | $ 759 |