Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
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 | $ 1,045.9 | ||
Entity Common Stock, Shares Outstanding | 61,362,872 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
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 | ||
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, 2019, 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, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 109,484 | $ 141,590 |
Accounts receivable, net of allowance for doubtful accounts of $5,138 (December 31, 2018 — $3,174) | 99,513 | 93,309 |
Financing receivables, net of allowance for uncollectible amounts (notes 5 and 22(c)) | 128,038 | 127,432 |
Variable consideration receivable from contracts (note 6) | 40,040 | 35,985 |
Inventories (note 7) | 42,989 | 44,560 |
Prepaid expenses | 10,237 | 10,294 |
Film assets (note 8) | 17,921 | 16,367 |
Property, plant and equipment (note 9) | 306,849 | 280,658 |
Investment in equity securities (note 22(e)) | 15,685 | 1,022 |
Other Assets (notes 10 and 22(e)) | 25,034 | 17,997 |
Deferred income taxes (note 11) | 23,905 | 31,264 |
Other intangible assets (note 12) | 30,347 | 34,095 |
Goodwill | 39,027 | 39,027 |
Total assets | 889,069 | 873,600 |
Liabilities | ||
Bank indebtedness (note 13) | 18,229 | 37,753 |
Accounts payable | 20,414 | 32,057 |
Accrued and other liabilities (notes 8, 14, 15, 16, 22(d), 23 and 26) | 112,779 | 97,724 |
Deferred revenue | 94,552 | 106,709 |
Total liabilities | 245,974 | 274,243 |
Commitments and contingencies (notes 14 and 15) | ||
Non-controlling interests | ||
Non-controlling interests (note 24(b)) | 5,908 | 6,439 |
Shareholders' equity | ||
Capital stock (note 16) common shares — no par value. Authorized — unlimited number 61,362,872 issued and 61,175,852 outstanding (December 31, 2018 — 61,478,168 issued and 61,433,589 outstanding) | 423,386 | 422,455 |
Less: Treasury stock, 187,020 shares at cost (December 31, 2018 — 44,579) | (4,038) | (916) |
Other equity | 171,789 | 179,595 |
Accumulated deficit | (40,253) | (85,385) |
Accumulated other comprehensive loss | (3,190) | (3,588) |
Total shareholders' equity attributable to common shareholders | 547,694 | 512,161 |
Non-controlling interests (note 24(a)) | 89,493 | 80,757 |
Total shareholders' equity | 637,187 | 592,918 |
Total liabilities and shareholders' equity | $ 889,069 | $ 873,600 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | ||
Allowance for doubtful accounts | $ 5,138 | $ 3,174 |
Shareholders' equity | ||
Common stock, par value | ||
Common stock, shares issued | 61,362,872 | 61,478,168 |
Common stock, shares outstanding | 61,175,852 | 61,433,589 |
Number of treasury shares held in trust for future settlement of share based awards | 187,020 | 44,579 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Revenues, total | $ 395,664,000 | $ 374,401,000 | $ 380,767,000 |
Costs and expenses applicable to revenues (note 2(n)) | |||
Cost and expenses applicable to revenues, total | 181,492,000 | 166,472,000 | 195,521,000 |
Gross margin | 214,172,000 | 207,929,000 | 185,246,000 |
Selling, general and administrative expenses (note 16(c)) | 123,456,000 | 117,477,000 | 109,882,000 |
Research and development | 5,203,000 | 13,728,000 | 20,855,000 |
Asset impairments (note 22(e)) | 0 | 1,225,000 | |
Amortization of intangibles | 4,955,000 | 4,145,000 | 3,019,000 |
Receivable provisions, net of recoveries (note 18) | 2,430,000 | 3,130,000 | 2,647,000 |
Legal arbitration award (note 15) | 11,737,000 | ||
Executive transition costs (note 25) | 0 | 2,994,000 | |
Exit costs, restructuring charges and associated impairments (note 26) | 850,000 | 9,542,000 | 16,174,000 |
Income from operations | 77,278,000 | 45,176,000 | 31,444,000 |
Change in fair value of equity securities (note 22(e)) | (517,000) | ||
Retirement benefits non-service expense (note 23) | (737,000) | (499,000) | (518,000) |
Interest income | 2,105,000 | 1,844,000 | 1,027,000 |
Interest expense | (2,793,000) | (2,916,000) | (1,942,000) |
Income before income taxes and income (loss) from equity-accounted investments, net of tax | 75,336,000 | 43,605,000 | 30,011,000 |
Provision for income taxes (note 11) | (16,768,000) | (9,518,000) | (16,790,000) |
Income (loss) from equity-accounted investments, net of tax | 3,000 | (492,000) | (703,000) |
Net income | 58,571,000 | 33,595,000 | 12,518,000 |
Less: net income attributable to non-controlling interests (note 24(a)) | (11,705,000) | (10,751,000) | (10,174,000) |
Net income attributable to common shareholders | $ 46,866,000 | $ 22,844,000 | $ 2,344,000 |
Net income per share attributable to common shareholders - basic and diluted: (note 16(d)) | |||
Net income per share — basic and diluted | $ 0.76 | $ 0.36 | $ 0.04 |
Equipment and Product Sales [Member] | |||
Revenues | |||
Revenues, total | $ 118,245,000 | $ 106,591,000 | $ 103,294,000 |
Costs and expenses applicable to revenues (note 2(n)) | |||
Cost and expenses applicable to revenues, total | 63,627,000 | 54,853,000 | 48,172,000 |
Services [Member] | |||
Revenues | |||
Revenues, total | 188,547,000 | 181,740,000 | 195,594,000 |
Costs and expenses applicable to revenues (note 2(n)) | |||
Cost and expenses applicable to revenues, total | 88,175,000 | 84,236,000 | 120,629,000 |
Rentals [Member] | |||
Revenues | |||
Revenues, total | 77,961,000 | 74,472,000 | 72,281,000 |
Costs and expenses applicable to revenues (note 2(n)) | |||
Cost and expenses applicable to revenues, total | 29,690,000 | 27,383,000 | 26,720,000 |
Finance Income [Member] | |||
Revenues | |||
Revenues, total | $ 10,911,000 | $ 11,598,000 | $ 9,598,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 58,571 | $ 33,595 | $ 12,518 |
Unrealized defined benefit plan actuarial gain (note 23(a)) | 157 | 1,448 | 1,004 |
Unrealized postretirement benefit plans actuarial (loss) gain (note 23(c) and 23(d)) | (153) | 85 | 125 |
Prior service cost arising during the period (note 23(a)) | (456) | ||
Unrealized net gain (loss) from cash flow hedging instruments (note 22(d)) | 552 | (2,219) | 2,545 |
Realization of cash flow hedging net loss (gain) upon settlement (note 22(d)) | 1,183 | (408) | (824) |
Foreign currency translation adjustments (note 2) | (729) | (3,170) | 3,618 |
Other comprehensive income (loss), before tax | 554 | (4,264) | 6,468 |
Income tax (expense) recovery related to other comprehensive (loss) income (note 11(h)) | (378) | 286 | (746) |
Other comprehensive income (loss), net of tax | 176 | (3,978) | 5,722 |
Comprehensive income | 58,747 | 29,617 | 18,240 |
Less: Comprehensive income attributable to non-controlling interests | (11,483) | (9,735) | (11,322) |
Comprehensive income attributable to common shareholders | $ 47,264 | $ 19,882 | $ 6,918 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating Activities | ||||
Net income | $ 58,571 | $ 33,595 | $ 12,518 | |
Adjustments to reconcile net income to cash from operations: | ||||
Depreciation and amortization (notes 19(c) and 21(a)) | 63,487 | 57,437 | 66,807 | |
Write-downs, net of recoveries (notes 19(d) and 21(a)) | 6,806 | 11,770 | 29,568 | |
Deferred income taxes | [1] | 6,762 | (6,923) | (4,017) |
Stock and other non-cash compensation | 23,570 | 23,723 | 24,075 | |
Unrealized foreign currency exchange loss (gain) | 32 | 631 | (502) | |
Change in fair value of equity securities (note 22(e)) | 517 | |||
Loss from equity-accounted investments | 730 | 95 | 306 | |
(Gain) loss on non-cash contribution to equity-accounted investees | (733) | 397 | 397 | |
Investment in film assets | (23,437) | (23,200) | (34,645) | |
Changes in other non-cash operating assets and liabilities (note 19(a)) | (45,929) | 12,447 | (9,141) | |
Net cash provided by operating activities | 90,376 | 109,972 | 85,366 | |
Investing Activities | ||||
Purchase of property, plant and equipment | (7,421) | (13,368) | (24,143) | |
Investment in joint revenue sharing equipment | (40,489) | (34,810) | (42,634) | |
Acquisition of other intangible assets | (2,931) | (8,696) | (5,214) | |
Investment in equity securities (note 22(e)) | (15,153) | (1,606) | ||
Net cash used in investing activities | (65,994) | (56,874) | (73,597) | |
Financing Activities | ||||
Increase in bank indebtedness (note 13) | 35,000 | 65,000 | ||
Repayment of bank indebtedness (note 13) | (55,000) | (50,667) | (2,000) | |
Treasury stock repurchased for future settlement of restricted share units (note 16) | (4,038) | (916) | (5,133) | |
Settlement of restricted share units and options (note 16) | (9,795) | (5,249) | (20,331) | |
Repurchase of common shares | (2,659) | (71,479) | (46,140) | |
Taxes withheld and paid on employee stock awards vested | (590) | (1,437) | (600) | |
Common shares issued - stock options exercised | 2,404 | 1,017 | 16,668 | |
Issuance of subsidiary shares to non-controlling interests (net of return on capital) | 1,106 | 7,796 | ||
Dividends paid to non-controlling interests | (4,384) | (6,934) | ||
Credit facility amendment fees paid | (1,909) | |||
Net cash used in financing activities | (57,118) | (70,862) | (57,536) | |
Effects of exchange rate changes on cash | 630 | 629 | (267) | |
Decrease in cash and cash equivalents during year | (32,106) | (17,135) | (46,034) | |
Cash and cash equivalents, beginning of year | 141,590 | 158,725 | 204,759 | |
Cash and cash equivalents, end of year | 109,484 | 141,590 | $ 158,725 | |
IMAX China | ||||
Financing Activities | ||||
Repurchase of common shares | $ (19,162) | $ (6,084) | ||
[1] | For the year ended December 31, 2019, the Company has not adjusted the valuation allowance from the prior year (2018 — $nil) relating to the future utilization of deductible temporary differences, tax credits, and certain net operating loss carryforwards. Included in the provision for income taxes is the deferred tax related to amounts recorded in and reclassified from other comprehensive income in the year of $0.4 million (2018 — $0.3 million). |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Thousands | Total | Capital Stock [Member] | Other Equity [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] | Common Shares Issued and Outstanding [Member] |
Balance, beginning of year at Dec. 31, 2016 | $ 437,274 | $ 177,304 | $ (47,366) | $ (5,200) | |||
Movement of Shareholders' Equity | |||||||
Change in shares held in treasury | (3,194) | ||||||
Employee stock options exercised | 14,652 | ||||||
Paid-in-capital for employee stock options granted | 5,496 | ||||||
Paid-in-capital for restricted share units granted | 17,157 | ||||||
Paid-in-capital for restricted share units vested | (14,756) | ||||||
Cash received from the issuance of common shares in excess of par value | 2,017 | ||||||
Fair value of stock options exercised at the grant date | 3,542 | (3,542) | |||||
Common shares repurchased and retired | (11,884) | (34,256) | |||||
Issuance of common shares for vested restricted share units | 274 | ||||||
Paid-in-capital for non-employee stock options granted and vested | 17 | ||||||
Stock options exercised from treasury shares | (8,393) | ||||||
Retrospective adjustment for adoption of new accounting pronouncements | Retrospective adoption of ASC Topic 740, Intra-entity transfers [Member] | (8,314) | ||||||
Net income attributable to common shareholders | $ 2,344 | 2,344 | |||||
Other comprehensive (loss) income, net of tax | 5,722 | 4,574 | $ 1,148 | ||||
Balance, end of year at Dec. 31, 2017 | 440,664 | 175,300 | (87,592) | (626) | |||
Balance, beginning of year at Dec. 31, 2016 | 59,562 | ||||||
Movement of Shareholders' Equity | |||||||
Net income attributable to non-controlling interests | $ 10,174 | 13,801 | |||||
Balance, end of year at Dec. 31, 2017 | 74,511 | ||||||
Common shares issued and outstanding, Balance, beginning of year at Dec. 31, 2016 | 66,160,000 | 66,159,902 | |||||
Movement of Shareholders' Equity | |||||||
Employee stock options exercised | 405,229 | ||||||
Restricted share units vested (net of shares withheld for tax) | 7,127 | ||||||
Restricted share units and stock option exercises settled from treasury shares purchased on open market | 66,093 | ||||||
Repurchase of common shares | (1,736,150) | ||||||
Number of treasury shares held in trust for future settlement of share based awards | (206,651) | ||||||
Common shares issued and outstanding, Balance, end of year at Dec. 31, 2017 | 64,696,000 | 64,695,550 | |||||
Movement of Shareholders' Equity | |||||||
Total shareholders' equity | $ 602,257 | ||||||
Change in shares held in treasury | 4,216 | ||||||
Employee stock options exercised | 218 | ||||||
Paid-in-capital for employee stock options granted | 5,907 | ||||||
Paid-in-capital for restricted share units granted | 16,325 | ||||||
Paid-in-capital for restricted share units vested | (12,582) | ||||||
Cash received from the issuance of common shares in excess of par value | 799 | ||||||
Fair value of stock options exercised at the grant date | 70 | (70) | |||||
Common shares repurchased and retired | (23,629) | (47,850) | |||||
Common shares repurchased, IMAX China | (6,084) | ||||||
Retrospective adjustment for adoption of new accounting pronouncements | Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | 27,213 | ||||||
Retrospective adjustment for adoption of new accounting pronouncements | 735 | ||||||
Net income attributable to common shareholders | 22,844 | 22,844 | |||||
Other comprehensive (loss) income, net of tax | (3,978) | (2,962) | (1,016) | ||||
Balance, end of year at Dec. 31, 2018 | 512,161 | 421,539 | 179,595 | (85,385) | (3,588) | ||
Movement of Shareholders' Equity | |||||||
Net income attributable to non-controlling interests | 10,751 | 13,461 | |||||
Dividends paid to non-controlling shareholders | (6,934) | ||||||
Balance, end of year at Dec. 31, 2018 | $ 80,757 | 80,757 | |||||
Movement of Shareholders' Equity | |||||||
Employee stock options exercised | 12,750 | ||||||
Restricted share units and stock option exercises settled from treasury shares purchased on open market | 206,651 | ||||||
Repurchase of common shares | (3,436,783) | ||||||
Number of treasury shares held in trust for future settlement of share based awards | 44,579 | (44,579) | |||||
Common shares issued and outstanding, Balance, end of year at Dec. 31, 2018 | 61,433,589 | 61,433,589 | |||||
Movement of Shareholders' Equity | |||||||
Total shareholders' equity | $ 592,918 | ||||||
Change in shares held in treasury | (3,122) | ||||||
Employee stock options exercised | 1,752 | ||||||
Paid-in-capital for employee stock options granted | 8,910 | ||||||
Paid-in-capital for restricted share units granted | 13,985 | ||||||
Paid-in-capital for restricted share units vested | (10,525) | ||||||
Cash received from the issuance of common shares in excess of par value | 651 | ||||||
Fair value of stock options exercised at the grant date | 104 | (104) | |||||
Common shares repurchased and retired | (925) | (1,734) | |||||
Common shares repurchased, IMAX China | (19,162) | ||||||
Stock options exercised from treasury shares | (1,561) | ||||||
Net income attributable to common shareholders | 46,866 | 46,866 | |||||
Other comprehensive (loss) income, net of tax | 176 | 398 | (223) | ||||
Balance, end of year at Dec. 31, 2019 | 547,694 | $ 419,348 | $ 171,789 | $ (40,253) | $ (3,190) | ||
Movement of Shareholders' Equity | |||||||
Net income attributable to non-controlling interests | 11,705 | 13,343 | |||||
Dividends paid to non-controlling shareholders | (4,384) | ||||||
Balance, end of year at Dec. 31, 2019 | $ 89,493 | $ 89,493 | |||||
Movement of Shareholders' Equity | |||||||
Employee stock options exercised | 19,088 | ||||||
Restricted share units and stock option exercises settled from treasury shares purchased on open market | 44,579 | ||||||
Repurchase of common shares | 8,051,500 | (134,384) | |||||
Number of treasury shares held in trust for future settlement of share based awards | 187,020 | (187,020) | |||||
Common shares issued and outstanding, Balance, end of year at Dec. 31, 2019 | 61,175,852 | 61,175,852 | |||||
Movement of Shareholders' Equity | |||||||
Total shareholders' equity | $ 637,187 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2019 | |
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”), is an entertainment technology company specializing in digital and film-based motion picture technologies, whose principal activities are the: • design, manufacture, sale and lease of proprietary theater systems for IMAX theaters principally owned and operated by commercial and institutional customers located in 81 countries and territories as at December 31, 2019; • production, digital re-mastering, post-production and/or distribution of certain films shown throughout the IMAX theater network; • provision of other services to the IMAX theater network, including ongoing maintenance and extended warranty services for IMAX theater systems; • operation of certain theaters primarily in the United States; and • other activities, which includes short-term rental of cameras and aftermarket sales of projector system components. The Company refers to all theaters using the IMAX theater system as “IMAX theaters.” The Company’s revenues from equipment and product sales include the sale and sales-type leasing of its theater systems and sales of their associated parts and accessories, contingent rentals on sales-type leases and contingent additional payments on sales transactions. The Company’s revenues from services include the provision of maintenance and extended warranty services, digital re-mastering services, film production and film post-production services, film distribution, and the operation of certain theaters. The Company’s rentals include revenues from the leasing of its theater systems that are operating leases, contingent rentals on operating leases, joint revenue sharing arrangements and the rental of the Company’s cameras and camera equipment. The Company’s finance income represents interest income and accretion of variable consideration arising from the sales-type leases and financed sales of the Company’s theater systems. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Significant accounting policies are summarized as follows: The Company prepares its consolidated financial statements in accordance with U.S. GAAP. (a) Basis of Consolidation The consolidated financial statements include the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which the Company has identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. The Company has evaluated its various variable interests to determine whether they are VIEs as required by the Consolidation Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”). The Company has ten film and content related companies that are VIEs. For five of the Company’s film production companies, the Company has determined that it is the primary beneficiary of these entities as the Company has the power to direct the activities of the respective VIE that most significantly impact the respective VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be significant to the respective VIE or the right to receive benefits from the respective VIE that could potentially be significant to the respective VIE. The majority of these consolidated assets are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in note 24(b). For the other five film production companies which are VIEs, the Company did not consolidate these film entities since it does not have the power to direct activities and does not absorb the majority of the expected losses or expected residual returns. The Company equity accounts for these entities. A loss in value of an investment other than a temporary decline is recognized as a charge to the consolidated statements of operations. Total assets and liabilities of the Company's consolidated VIEs are as follows: December 31, December 31, 2019 2018 Total assets $ 9,677 $ 12,203 Total liabilities $ 15,528 $ 11,573 Total assets and liabilities of the VIE entities which the Company does not consolidate are as follows: December 31, December 31, 2019 2018 Total assets $ 448 $ 447 Total liabilities $ 372 $ 362 The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323 “Investments – Equity Method and Joint Ventures” (“ASC 323”) and ASC 320 “Investments in Debt and Equity Securities” (“ASC 320”), as appropriate. All intercompany accounts and transactions, including all unrealized intercompany profits on transactions with equity-accounted investees, have been eliminated. (b) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be materially different from these estimates. Significant estimates made by management include, but are not limited to: estimated transaction price related to distinct performance obligations; economic lives of joint revenue sharing equipment; allowances for potential uncollectability of accounts receivable, financing receivables and net investment in leases; provisions for inventory obsolescence; ultimate revenues for film assets; impairment provisions for film assets, long-lived assets and goodwill; depreciable lives of property, plant and equipment and right-of-use assets; discount rates of lease liabilities; useful lives of intangible assets; pension plan assumptions; accruals for contingencies including uncertain tax positions; valuation allowances for deferred income tax assets; and, estimates of the fair value of stock-based payment awards. (c) Cash and Cash Equivalents The Company considers all highly liquid investments convertible to a known amount of cash and with an original maturity to the Company of three months or less to be cash equivalents. (d) Accounts Receivable and Financing Receivables Allowances for doubtful accounts receivable are based on the Company’s assessment of the collectability of specific customer balances, which is based upon a review of the customer’s credit worthiness, past collection history and the underlying asset value of the equipment, where applicable. Interest on overdue accounts receivable is recognized as income as the amounts are collected. For trade accounts receivable that have characteristics of both a contractual maturity of one year or less, and arose from the sale of other goods or services, the Company charges off the balance against the allowance for doubtful accounts when it is known that a provided amount will not be collected. The Company monitors the performance of the theaters to which it has leased or sold theater systems which are subject to ongoing payments. When facts and circumstances indicate that there is a potential impairment in the net investment in lease or a financing receivable, the Company will evaluate the potential outcome of either a renegotiation involving changes in the terms of the receivable or defaults on the existing lease or financed sale agreements. The Company will record a provision if it is considered probable that the Company will be unable to collect all amounts due under the contractual terms of the arrangement or a renegotiated lease amount will cause a reclassification of the sales-type lease to an operating lease. When the net investment in lease or the financing receivable is impaired, the Company will recognize a provision for the difference between the carrying value in the investment and the present value of expected future cash flows discounted using the effective interest rate for the net investment in the lease or the financing receivable. If the Company expects to recover the theater system, the provision is equal to the excess of the carrying value of the investment over the fair value of the equipment. When the minimum lease payments are renegotiated and the lease continues to be classified as a sales-type lease, the reduction in payments is applied to reduce unearned finance income. These provisions are adjusted when there is a significant change in the amount or timing of the expected future cash flows or when actual cash flows differ from cash flow previously expected. Once a net investment in lease or financing receivable is considered impaired, the Company does not recognize finance income until the collectability issues are resolved. When finance income is not recognized, any payments received are applied against outstanding gross minimum lease amounts receivable or gross receivables from financed sales. Once the collectability issues are resolved, the Company will once again commence the recognition of interest income. (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 include the cost of raw materials, direct labor, theater design costs, and an applicable share of manufacturing overhead costs. The costs related to theater systems under sales and sales-type lease arrangements are relieved from inventory to costs and expenses applicable to revenues-equipment and product sales when revenue recognition criteria are met. The costs related to theater systems under operating lease arrangements and joint revenue sharing arrangements are transferred from inventory to assets under construction in property, plant and equipment when allocated to a signed joint revenue sharing arrangement or when the arrangement is first classified as an operating lease. The Company records provisions for excess and obsolete inventory based upon current estimates of future events and conditions, including the anticipated installation dates for the current backlog of theater system contracts, technological developments, signings in negotiation, growth prospects within the customers’ ultimate marketplace and anticipated market acceptance of the Company’s current and pending theater systems. Finished goods inventories can contain theater systems for which title has passed to the Company’s customer (as the theater system has been delivered to the customer) but the revenue recognition criteria as discussed in note 2(n) have not been met. (f) Film Assets Costs of producing films, including labor, allocated overhead, capitalized interest, and costs of acquiring film rights are recorded as film assets and accounted for in accordance with Entertainment-Films Topic of the FASB ASC. Production financing provided by third parties that acquire substantive rights in the film is recorded as a reduction of the cost of the production. Film assets are amortized and participation costs are accrued using the individual-film-forecast method in the same ratio that current gross revenues bear to current and anticipated future ultimate revenues. 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 for films include estimates of revenue over a period not to exceed ten years following the date of initial release. Film exploitation costs, including advertising costs, are expensed as incurred. Costs, including labor and allocated overhead, of digitally re-mastering films where the copyright is owned by a third party and the Company shares in the revenue of the third party are included in film assets. These costs are amortized using the individual-film-forecast method in the same ratio that current gross revenues bear to current and anticipated future ultimate revenues from the re-mastered film. The recoverability of film assets is dependent upon commercial acceptance of the films. If events or circumstances indicate that the recoverable amount of a film asset is less than the unamortized film costs, the film asset is written down to its fair value. The Company determines the fair value of its film assets using a discounted cash flow model. (g) Property, Plant and Equipment Property, plant and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives as follows: Theater system components (1) — over the equipment’s anticipated useful life (7 to 20 years) Camera equipment — 5 to 10 years Buildings — 20 to 25 years Office and product equipment — 3 to 5 years Leasehold improvements — over the shorter of the initial term of the underlying leases plus any reasonably assured renewal terms, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. Equipment and components allocated to be used in future operating leases and joint revenue sharing arrangements, as well as direct labor costs and an allocation of direct production costs, are included in assets under construction until such equipment is installed and in working condition, at which time the equipment is depreciated on a straight-line basis over the lesser of the term of the joint revenue sharing arrangement and the equipment’s anticipated useful life. The estimated useful life is periodically reviewed for the equipment and components used in joint revenue sharing arrangements to determine if any adjustments need to be made to the current amortization. The Company reviews the carrying values of its property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent when testing for, and measuring for, impairment. In performing its review of recoverability, the Company estimates the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset or asset group, an impairment loss is recognized in the consolidated statements of operations. Measurement of the impairment loss is based on the excess of the carrying amount of the asset or asset group over the fair value calculated using discounted expected future cash flows. A liability for the fair value of an asset retirement obligation associated with the retirement of tangible long-lived assets and the associated asset retirement costs are recognized in the period in which the liability and costs are incurred if a reasonable estimate of fair value can be made using a discounted cash flow model. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and subsequently amortized over the asset’s useful life. The liability is accreted over the period to expected cash outflows. (h) Investment in Equity Securities Equity securities with readily determinable fair values are reported at fair value with changes in fair value recorded within the change in fair value of equity securities in the consolidated statements of operations. (i) Other Assets Other assets include lease incentives, deferred selling costs that are direct and incremental to the acquisition of sales contracts, various investments, insurance recoverable and foreign currency derivatives. When no amounts have been drawn down on the related debt instrument, the costs of debt financing are deferred and amortized over the term of the debt using the effective interest rate method. When amounts are drawn on the debt instrument, the deferred financing fees are reclassified to net against the outstanding debt amount and amortized over the life of the debt instrument and recognized in interest expense. Selling costs related to an arrangement incurred prior to recognition of the related revenue are deferred and expensed to costs and expenses applicable to revenues upon: (i) recognition of the contract’s theater system revenue; or (ii) abandonment of the sale arrangement. Foreign currency derivatives are accounted for at fair value using quoted prices in closed exchanges (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy). The Company may provide lease incentives to certain exhibitors which are essential to entering into the respective lease arrangement. Lease incentives include payments made to or on behalf of the exhibitor. These lease incentives are recognized as a reduction in rental revenue on a straight-line basis over the term of the lease. Investments in new business ventures are accounted for using ASC 323 as described in note 2(a). The Company currently accounts for its joint venture investment with TCL Multimedia Technology Holdings Limited (“TCL”), using the equity method of accounting. The Company accounts for in-kind contributions to its equity investment in accordance with ASC 845 “Non-Monetary Transactions” (“ASC 845”) whereby if the fair value of the asset or assets contributed is greater than the carrying value a partial gain shall be recognized. The Company’s investment in debt securities is classified as an available-for-sale investment in accordance with ASC 320. Unrealized holding gains and losses for this investment is excluded from earnings and reported in other comprehensive income until realized. Realization occurs upon sale of a portion of or the entire investment. The investment is impaired if the fair value is less than cost, which is assessed in each reporting period. When the Company intends to sell a specifically identified beneficial interest, a write-down for other-than-temporary impairment shall be recognized in earnings. The Company’s investment in preferred shares, which meets the criteria for classification as an equity security in accordance with ASC 325, is accounted for at cost. The Company records the related warrants at fair value upon recognition date. Warrants are recognized over the term of the agreement. (j) Goodwill Goodwill represents the excess of purchase price over the fair value of net identifiable assets acquired in a purchase business combination. Goodwill is not subject to amortization and is tested for impairment annually (on September 30 th (k) Other Intangible Assets Patents, trademarks and other intangibles are recorded at cost and are amortized on a straight-line basis over estimated useful lives ranging from 4 to 10 years except for intangible assets that have an identifiable pattern of consumption of the economic benefit of the asset, which are amortized over the consumption pattern. The Company reviews the carrying values of its other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent when testing for, and measuring for, impairment. In performing its review for recoverability, the Company estimates the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset or asset group, an impairment loss is recognized in the consolidated statement of operations. Measurement of the impairment loss is based on the excess of the carrying amount of the asset or asset group over the fair value calculated using discounted expected future cash flows. (l) Deferred Revenue Deferred revenue represents cash received prior to revenue recognition criteria being met for theater system sales or leases, film contracts, maintenance and extended warranty services, film related services and film distribution. (m) 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 consolidated statement of operations in the period in which the change is enacted. Investment tax credits are recognized as a reduction of income tax expense. The Company assesses 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. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. The Company follows the provisions of ASC 740-10-25 that provide a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken in a tax return. 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 realised 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 we believe we have adequately accounted for our uncertain tax positions, tax audits can result in subsequent assessments where the ultimate resolution may result in us owing additional taxes above what was provided for. 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. (n) Revenue Recognition Contracts with Multiple Performance Obligations The Company’s revenue arrangements with certain customers may involve performance obligations consisting of the delivery of a theater system (projector, sound system, screen system and, if applicable, 3D glasses cleaning machine); services associated with the theater system including theater design support, supervision of installation, and projectionist training; a license to use the IMAX brand; 3D glasses; maintenance and extended warranty services; and licensing of films. The Company evaluates all of the performance obligations in an arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate units of accounting based on the applicable accounting guidance in ASC Topic 842 “Leases”; ASC Topic 460 “Guarantees”; and ASC Topic 606 “Revenue from Contracts with Customers”. If separate units of accounting are either required under the relevant accounting standards or determined to be applicable under the Revenue Recognition Topic, the total transaction price received or receivable in the arrangement is allocated based on the applicable guidance in the above noted standards. Theater Systems The Company has identified the projection system, sound system, screen system and, if applicable, 3D glasses cleaning machine, theater design support, supervision of installation, projectionist training and the use of the IMAX brand to be, as a group, a distinct performance obligation, and a single unit of accounting (the “System Obligation”). When an arrangement does not include all the performance obligations of a System Obligation, the performance obligations of the System Obligation included in the arrangement are considered by the Company to be a grouped distinct performance obligation and a single unit of accounting. The Company is not responsible for the physical installation of the equipment in the customer’s facility; however, the Company 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. The Company’s System Obligation arrangements involve either a lease or a sale of the theater system. The transaction price for the System Obligation, other than for those delivered pursuant to joint revenue sharing arrangements, consist of upfront or initial payments made before and after the final installation of the theater system equipment and ongoing payments throughout the term of the lease or over a period of time, as specified in the arrangement. The ongoing payments are the greater of an annual fixed minimum amount or a certain percentage of the theater box-office. Amounts received in excess of the annual fixed minimum amounts are considered contingent payments. The Company’s 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. Transaction price is allocated to each s eparate performance obligation for each good or service based on estimated standalone selling prices. The Company uses observable prices when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. Standalone prices are established for the Company’s System Obligation, maintenance and extended warranty services and 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 price. The Company considers multiple factors including the Company’s historical pricing practices, product class, market competition and geography. Sales Arrangements For arrangements qualifying as sales, the revenue allocated to the System Obligation is recognized in accordance with the Revenue Recognition Topic of the FASB ASC, when all of the following conditions signifying transfer of control 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) 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) public opening of the theater. The initial revenue recognized consists of the initial payments received and the present value of any future initial payments, fixed minimum ongoing payments and an estimate of future variable consideration (future CPI and additional payments in excess of the minimums in the case of full sale arrangements or a percentage of ongoing box office in the case of hybrid sales arrangements) that have been attributed to this performance obligation. The Company has also agreed, on occasion, to sell equipment under lease or at the end of a lease term. Transaction price agreed to for these lease buyouts is included in revenues from equipment and product 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. Lease Arrangements As a lessor, for lease arrangements, the Company determines the classification of the lease in accordance with ASC Topic 842. The Company adopted ASC Topic 842 as of January 1, 2019, which with respect to lessor arrangements is consistent with ASC 840, which was applied in prior periods. A lease arrangement that transfers substantially all of the benefits and risks incident to ownership of the equipment is classified as a sales-type lease based on the criteria established by the accounting standard; otherwise the lease is classified as an operating lease. Prior to commencement of the lease term for the equipment, 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) 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) 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 operating leases, initial payments and fixed minimum ongoing payments are recognized as revenue on a straight-line basis over the lease term. For operating 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 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) 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) 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. Revenues from joint revenue sharing arrangements with upfront payments that qualify for classification as sales-type leases are recognized in accordance with the sales and sales-type lease criteria discussed above. Contingent revenues from joint revenue sharing arrangements are recognized as box-office results and concessions revenues are reported by the theater operator, provided collectability is reasonably assured. Finance Income Finance income, which includes the accretion of variable consideration under ASC Topic 606, is recognized over the term of the sales-type lease or financed sales receivable, provided collectability is reasonably assured. Finance income recognition ceases when the Company determines that the associated receivable is not collectible. Finance income is suspended when the Company identifies a theater that is delinquent, non-responsive or not negotiating in good faith with the Company. Once the collectability issues are resolved the Company will resume recognition of finance income. Improvements and Modifications Improvements and modifications to the theater system after installation are treated as separate performance obligations, if and when the Company is requested to perform these services. Revenue is recognized for these services once they have been provided. Cost of Equipment and Product Sales Theater systems and other equipment subject to sales-type leases and sales arrangements includes the cost of the equipment and costs related to project management, design, delivery and installation supervision services as applicable. The costs related to theater systems under sales and sales-type lease arrangements are relieved from inventory to costs and expenses applicable to revenues-equipment and product sales when revenue recognition criteria are met. In addition, the Company defers direct selling costs such as sales commissions and other amounts related to these contracts until the related revenue is recognized. These costs included in costs and expenses applicable to revenues-equipment and product sales, totaled $2.0 million in 2019 (2018 — $2.0 million; 2017 — $2.7 million). The cost of equipment and product sales prior to direct selling costs was $63.6 million in 2019 (2018 — $52.9 million; 2017 — $45.5 million). The Company may have warranty obligations at or after the time revenue is recognized which require 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-equipment and product sales at the time revenue is recognized based on the Company’s past historical experience and cost estimates. Cost of Rentals For theater systems and other equipment subject to an operating lease or placed in a theater operators’ venue under a joint revenue sharing arrangement, the cost of equipment and those costs that result directly from and are essential to the arrangement, is included within property, plant and equipment. Depreciation and impairment losses, if any, are included in cost of rentals based on the accounting policy set out in note 2(g). After the adoption of ASC Topic 606, commissions continue to be deferred and recognized as costs and expenses applicable to revenues-rentals in the month they are earned, which is typically the month of installation. These costs totaled |
New Accounting Standards and Ac
New Accounting Standards and Accounting Changes | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Standards and Accounting Changes | 3. New Accounting Standards and Accounting Changes Adoption of New Accounting Policies The Company adopted several standards including the following on January 1, 2019. In 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASC Topic 842”). The Company adopted 2016-02 and several associated ASUs on January 1, 2019. See note 4 for a further discussion of the Company’s adoption of ASC Topic 842. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The adoption of this standard was applied prospectively and did not have an impact on the Company’s consolidated financial statements. In December 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The adoption of this standard was applied prospectively and did not have an impact on the Company. See note 22(d) for additional disclosure regarding the Company’s hedging arrangements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The adoption of this standard was applied prospectively and did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). The adoption of this standard was applied prospectively and did not have a material impact on the Company’s consolidated financial statements. Recently Issued FASB Accounting Standard Codification Updates Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the accounting for income taxes” (“ASU 2019-12”). The purpose of ASU 2019-12 is to simplify the accounting for income taxes. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently assessing the impact of ASU 2019-12 on its consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” (“ASU 2019-11”). The purpose of ASU 2019-11 is to clarify or address stakeholders’ specific issues about certain aspects of the amendments in ASU 2016-13. As the Company has not yet adopted ASU 2016-13, the effective date and transition requirements for the amendments in ASU 2019-11 related to amendments in 2016-13, have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019 (see below). The Company is currently assessing the impact of the codification improvements on its consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments – Credit Losses (Topic 326)” (“ASU 2019-05”). The purpose of ASU 2019-05 is to provide the option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon adoption of ASU 2016-13. Adoption of ASU 2019-05 coincides with the adoption of ASU 2016-13 and will therefore be effective for interim and annual reporting periods beginning after December 15, 2019. The Company’s Accounts receivable, Financing receivables, Variable consideration receivable from contracts and certain small loans receivable are within the scope of ASU 2019-05. The Company has concluded that historical data, adjusted for any current events and expected future economic factors, is the most appropriate modelling information to determine the Company’s expected credit losses. The Company is in the process of completing the necessary analysis for its adoption of ASU 2019-05 in the first quarter of 2020. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”). The purpose of ASU 2019-04 is to provide clarification and improve the guidance provided by ASU 2016-01, ASU 2016-13, and ASU 2017-12. Adoption of these amendments are required at the time of adopting ASU 2016-01, ASU 2016-13, and ASU 2017-12. As the Company has not yet adopted ASU 2016-13, the effective date and transition requirements for the amendments in ASU 2019-04 related to amendments in 2016-13, have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019 (see below). The Company is currently assessing the impact of the codification improvements on its consolidated financial statements. The Company has previously adopted ASU 2016-01 and ASU 2017-12. As a result, the effective date for adoption of ASU 2019-04 as it pertains to ASU 2016-01 is the fiscal year beginning after December 15, 2019 and ASU 2017-12 is the beginning of the first annual period beginning after the issuance date. The Company is currently assessing the potential impacts of the codification improvements in ASU 2019-04 relating to ASU 2016-01 and 2017-12 on its consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350)” (“ASU 2019-02”). The purpose of ASU 2019-02 is to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization, as well as requiring an entity to reassess estimates of the use of a film in a film group. In addition, ASU 2019-02 will require an entity to test for impairment at a film group level if it is predominantly monetized with other films. Amendments in this update would be applied prospectively, and for public entities, the amendments in ASU 2019-02 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2019-02 on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The purpose of ASU 2016-13 is to require a financial asset measured on the amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. For public entities, the amendments in ASU 2016-13 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2016-13 on its consolidated financial statements. The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. Accounting standards 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 period ended December 31, 2019. |
Adoption of ASC Topic 842, Leas
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 | 4. Adoption of ASC Topic 842, Leases, effective January 1, 2019 On January 1, 2019, the Company adopted ASC Topic 842 “Leases”. The standard was issued to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. As a lessee, the adoption of the standard resulted in the Company recording a net increase to net lease assets and lease liabilities of approximately $17.4 million as at January 1, 2019. The gross right-of-use assets and lease liabilities amounted to $20.0 million, while prepaid expenses of less than $0.1 million and unamortized lease inducements and other accruals of $2.5 million were reclassed from accrued liabilities to offset the applicable right-of-use asset. The Company mainly leases office and warehouse storage space. Office equipment is generally purchased outright. Adoption of ASC Topic 842 did not change the lease classification of its leases. The leases continue to be classified as operating leases similar to the guidance under ASC Topic 840. The adoption of ASC Topic 842 did not materially impact the Company’s net earnings and had no impact on cash flows. As a lessor, several of the Company’s leases of IMAX theater systems are classified as sales-type leases. The accounting treatment of its lease arrangements for IMAX theater systems has not changed under Topic ASC 842 as compared to guidance under ASC Topic 840, as the Company has very few sales-type leases with variable consideration tied to an index. The Company adopted ASC Topic 842, utilizing the modified retrospective transition method, which allowed the Company to adopt the standard as of the date of initial application. Prior year comparative amounts are not required to be restated and are presented in accordance with ASC Topic 840, “Leases” or other applicable standards effective prior to January 1, 2019. The Company has elected the ‘package of practical expedients’ permitted under the transition guidance within ASC Topic 842, which permits the Company to carry forward the historical lease classification and not reassess whether any expired or existing contracts are or contain leases. In addition, the Company is not required to reassess initial direct costs for any existing leases. The Company did not elect the land easements and the use of hindsight practical expedients in determining the lease term for existing leases. ASC Topic 842 also provides practical expedients for an entity’s ongoing accounting. The Company has elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases with a term of less than 12 months, it will not recognize right-of-use assets or lease liabilities. The Company also elected the practical expedient to not separate lease and non-lease components for all its leases regardless of whether the Company is the lessee or a lessor to the lease. The following table presents the impact from the adoption of ASC Topic 842 on the Company’s assets and liabilities in the consolidated balance sheet: Balance at Balance at December 31, ASC Topic 842 January 1, 2018 Adjustments 2019 Assets Property, plant and equipment $ 280,658 $ 17,462 $ 298,120 Prepaid expenses 10,294 (36 ) 10,258 Liabilities Accrued and other liabilities 97,724 17,426 115,150 |
Lease Arrangements And Financin
Lease Arrangements And Financing Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Arrangements And Financing Receivables | 5. Lease Arrangements and Financing Receivables IMAX Corporation as a Lessor: Several of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. 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 lease arrangements are described in note 2(n) in the Company’s 2019 Form 10-K. The Company classifies its lease arrangements at inception of the arrangement and, if required, after a modification of the lease arrangement, to determine whether they are sales-type leases or operating leases. Under the Company’s 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. Except for those sales arrangements that are classified as sales-type leases, the Company’s leases generally do not contain an automatic transfer of title at the end of the lease term. The Company’s 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 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 theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company has assessed the nature of its joint revenue sharing arrangements and concluded that, based on the guidance in the Revenue Recognition Topic of the ASC, the arrangements contain a lease. 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 equipment under joint revenue sharing arrangements 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 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 extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company monitors the performance of the theaters to which it has leased theater systems. When facts and circumstances indicate that there is a potential impairment in the net investment in lease, the Company will evaluate the potential outcome of either a renegotiation involving changes in the terms of the receivable or defaults on the existing lease. The Company will record a provision if it is considered probable that the Company will be unable to collect all amounts due under the contractual terms of the arrangement or a renegotiated lease amount will cause a reclassification of the sales-type lease to an operating lease. See additional details regarding the Company’s traditional and hybrid joint revenue sharing arrangements as described in note 2 (n) in the Company’s 2019 Form 10-K. Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of theater systems are as follows: As at December 31, 2019 2018 Gross minimum lease payments receivable $ 16,766 $ 10,499 Unearned finance income (1,005 ) (902 ) Minimum lease payments receivable 15,761 9,597 Accumulated allowance for uncollectible amounts (155 ) (155 ) Net investment in leases 15,606 9,442 Gross financed sales receivables 146,660 155,044 Unearned finance income (33,313 ) (36,215 ) Financed sales receivables 113,347 118,829 Accumulated allowance for uncollectible amounts (915 ) (839 ) Net financed sales receivables 112,432 117,990 Total financing receivables $ 128,038 $ 127,432 Net financed sales receivables due within one year $ 27,595 $ 26,911 Net financed sales receivables due after one year $ 84,837 $ 91,079 As at December 31, 2019 2018 Weighted-average remaining lease term (years) Sales-type lease arrangements 8.1 7.3 Weighted-average interest rate Sales-type lease arrangements 6.68 % 8.00 % Financed sales receivables 9.00 % 9.10 % IMAX Corporation as a Lessee : The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The Company determined that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. The incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The depreciable life of assets and 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. The components of lease expense are as follows: Years Ended December 31, 2019 2018 2017 Operating lease cost (1) Selling, general and administrative expenses $ 850 $ 4,863 $ 6,059 Amortization of lease assets Selling, general and administrative expenses 2,370 — — Interest on lease liabilities Selling, general and administrative expenses 1,102 — — Total lease cost $ 4,322 $ 4,863 $ 6,059 (1) Includes short-term leases and variable lease costs, which are not significant for the December 31, 2019 Supplemental cash flow information related to leases are as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 3,607 Right-of-use assets obtained in exchange for lease obligations $ 17,147 Supplemental balance sheet information related to leases are as follows: As at December 31, January 1, 2019 2019 Assets Operating Leases Property, plant and equipment $ 16,262 $ 17,462 Liabilities Operating Leases (1) Accrued and other liabilities $ 18,677 $ 19,960 (1) The Company recorded lease liabilities of approximately $20.0 million as at January 1, 2019 upon initial adoption of ASC Topic 842. In addition, unamortized lease inducements and other accruals of $2.5 million were reclassified from accrued liabilities to offset against the applicable right-of-use asset. As at December 31, January 1, 2019 2019 Weighted-average remaining lease term (years) Operating Leases 8.1 8.3 Weighted-average discount rate Operating Leases 5.90 % 5.80 % Maturities of lease liabilities are as follows: Operating Leases 2020 $ 3,732 2021 3,308 2022 2,387 2023 2,268 2024 2,220 Thereafter 10,060 Total lease payments $ 23,975 Less: interest expense (5,298 ) Present value of lease liabilities $ 18,677 As of December 31, 2018, under ASC Topic 840, minimum lease payments under non-cancelable operating leases by period were expected to be as follows: Operating Leases 2019 $ 3,847 2020 2,790 2021 2,491 2022 1,843 2023 1,759 Thereafter 9,657 Total lease payments $ 22,387 |
Variable Consideration Receivab
Variable Consideration Receivable from Contracts | 12 Months Ended |
Dec. 31, 2019 | |
Change In Contract With Customer Asset [Abstract] | |
Variable Consideration Receivable from Contracts | 6. Variable Consideration Receivable from Contracts ASC Topic 606 requires the Company to estimate the transaction price, including an estimate of future variable consideration, received in exchange for the goods delivered or service rendered. The arrangements for the sale of projection systems include indexed minimum payment increases over the term of the arrangement, as well as provision for additional payments in excess of the minimum agreed payments in situations where the theater exceeds certain box office thresholds. Both of these contract provisions constitute variable consideration under the new standard that, subject to constraints to ensure reversal of revenues do not occur, require estimation and recognition upon transfer of control of the System Obligation to the customer, which is at the earlier of client acceptance of the installation of the system, including projectionist training, and the theater’s opening to the public. As this variable consideration extends through the entire term of the arrangement, which typically last 10 years, the Company applies constraints to its estimates and recognizes the variable consideration on a discounted present value basis at recognition. In certain joint revenue sharing arrangements, specifically the Company’s hybrid sales arrangements, the Company’s arrangements call for sufficient upfront revenues to cover the cost of the arrangement, with monthly payments calculated based on the theater’s net box office earned. Title and control of the projection system transfer to the customer at the earlier of client acceptance of the theater installation, including projectionist training, and theater opening to the public. Under ASC Topic 606, the percentage payment is considered variable consideration that must be estimated and recognized at the time of initial revenue recognition. Using box office projections and the Company’s history with theater and box office experience in different territories, the Company estimates the amount of percentage payment earned over the life of the arrangement, subject to sufficient constraint such that there is not a risk of significant revenue reversal. The recognition of variable consideration involves a significant amount of judgment. ASC Topic 606 requires variable consideration to be recognized subject to appropriate constraints to avoid a significant reversal of revenue in future periods. The Company will review the variable consideration receivable on an ongoing basis. The standard identifies several examples of situations where constraining variable consideration would be 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 • The Company 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 The following table sets forth a summary of activities in variable consideration receivable from contracts for the year ended December 31: Variable Consideration Receivable from Contracts Balance as at December 31, 2018 $ 35,985 Recognition of variable consideration 9,948 Accretion to finance income 1,936 True-up of variable consideration receivable 979 Payments received (8,808 ) Balance as at December 31, 2019 $ 40,040 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories As at December 31, 2019 2018 Raw materials $ 26,538 $ 29,705 Work-in-process 4,608 4,733 Finished goods 11,843 10,122 $ 42,989 $ 44,560 At December 31, 2019, finished goods inventory for which title had passed to the customer, however control has not yet been transferred, and revenue was deferred amounted to $0.7 million (December 31, 2018 — $1.9 million). Inventories at December 31, 2019 include impairments and write-downs for excess and obsolete inventory based upon current estimates of net realizable value considering future events and conditions of $0.4 million (December 31, 2018 — $0.3 million). |
Film Assets
Film Assets | 12 Months Ended |
Dec. 31, 2019 | |
Film Costs [Abstract] | |
Film Assets | 8. Film Assets As at December 31, 2019 2018 Completed and released films, net of accumulated amortization of $ 7,193 $ 5,958 $192,999 (2018 ― $173,812) Films in production 4,250 4,500 Films in development 6,478 5,909 $ 17,921 $ 16,367 The Company expects to amortize film costs of $11.4 million for released films within three years from December 31, 2019 (December 31, 2018— $11.4 million), including $7.3 million (December 31, 2018 — $6.8 million), which reflects the portion of the costs of the Company’s completed films that are expected to be amortized within the next year. The amount of participation payments to third parties related to these films that the Company expects to pay during 2020, which is included in accrued liabilities at December 31, 2019, is $1.6 million (2018 — $1.9 million). In 2019, the Company considered the lower than expected revenues and revised expectations for future revenues based on the latest information. An impairment of $1.4 million was recorded based on the carrying value of certain documentary films as compared to the related estimated future box office and revenues that would ultimately be generated by these films. No such charge was recorded in the year ended 2018. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 9. Property, Plant and Equipment As at December 31, 2019 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components (1)(2)(3) $ 322,492 $ 133,739 $ 188,753 Camera equipment 5,192 4,239 953 327,684 137,978 189,706 Assets under construction (4) 14,483 — 14,483 Right-of-use assets (5) 17,147 885 16,262 Other property, plant and equipment Land 8,203 — 8,203 Buildings 80,850 22,931 57,919 Office and production equipment (6) 41,673 25,654 16,019 Leasehold improvements 7,614 3,357 4,257 138,340 51,942 86,398 $ 497,654 $ 190,805 $ 306,849 As at December 31, 2018 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components (1)(2)(3) $ 287,066 $ 120,273 $ 166,793 Camera equipment 5,080 3,839 1,241 292,146 124,112 168,034 Assets under construction (4) 24,327 — 24,327 Other property, plant and equipment Land 8,203 — 8,203 Buildings 77,468 20,012 57,456 Office and production equipment (6) 42,252 24,295 17,957 Leasehold improvements 7,583 2,902 4,681 135,506 47,209 88,297 $ 451,979 $ 171,321 $ 280,658 (1) Included in theater system components are assets with costs of $7.6 million (2018 — $8.5 million) and accumulated depreciation of $6.7 million (2018 — $7.4 million) that are leased to customers under operating leases. (2) Included in theater system components are assets with costs of $297.4 million (2018 —$269.8 million) and accumulated depreciation of $121.3 million (2018 — $108.4 million) that are used in joint revenue sharing arrangements. (3) In 2019, the Company recorded a charge of $2.2 million (2018 — $0.6 million ) in cost of sales applicable to Rentals upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. (4) Included in assets under construction are components with costs of $13.2 million (2018 — $15.3 million) that will be utilized to construct assets to be used in joint revenue sharing arrangements. (5) The right-of-use assets mainly include operating leases for office and warehouse storage space. See note 4 for further discussion of the adoption impact of ASC Topic 842 on the Company’s consolidated financial statements. (6) Fully amortized office and production equipment is still in use by the Company. In 2019, the Company identified and wrote off $4.9 million (2018 — $1.3 million) of office and production equipment that is no longer in use and fully amortized. In 2019, the Company recorded a charge of $0.2 million (2018 — $0.8 million; 2017 — $1.2 million) reflecting property, plant and equipment that were no longer in use. The Company recognized asset impairment charges of $0.1 million (2018 — less than $0.1 million; 2017 — $0.3 million) against property, plant and equipment after an assessment of the carrying value of certain assets in light of their future expected cash flows. In addition, as a result of the Company’s restructuring activities in 2018 and 2017, certain long-lived assets were deemed to be impaired as the Company’s exit from certain activities limited the future revenue associated with these assets. In 2018, the Company recognized property, plant and equipment charges of $3.7 million (2017 — $3.7 million). No such charge was recorded in the year ended 2019. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | 10. Other Assets As at December 31, 2019 2018 Lease incentives provided to theaters 19,125 10,550 Commissions and other deferred selling expenses 1,501 2,796 Other investments 2,500 2,500 Investment in content 955 1,073 Foreign currency derivatives 602 649 Other 351 429 $ 25,034 $ 17,997 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes (a) Income (loss) before income taxes by tax jurisdiction are comprised of the following: Years Ended December 31, 2019 2018 2017 Canada $ 884 $ (14,749 ) $ (17,261 ) United States (234 ) (6,079 ) (11,895 ) China 51,809 50,446 50,410 Ireland 17,630 8,071 3,632 Other 5,247 5,916 5,125 $ 75,336 $ 43,605 $ 30,011 (b) The (provision) recovery of income taxes is comprised of the following: Years Ended December 31, 2019 2018 2017 Current: Canada $ 2,369 $ (4,893 ) $ (6,898 ) United States 595 1,300 267 China (11,789 ) (11,259 ) (12,724 ) Ireland (762 ) (1,095 ) (735 ) Other (419 ) (494 ) (717 ) (10,006 ) (16,441 ) (20,807 ) Deferred: (1) Canada (3,913 ) 5,993 8,748 United States (949 ) 2,386 (7,109 ) China (18 ) (6 ) 1,405 Ireland (1,923 ) (1,423 ) 1,085 Other 41 (27 ) (112 ) (6,762 ) 6,923 4,017 Provision for income taxes $ (16,768 ) $ (9,518 ) $ (16,790 ) (1) For the year ended December 31, 2019, the Company has not adjusted the valuation allowance from the prior year (2018 — $nil) relating to the future utilization of deductible temporary differences, tax credits, and certain net operating loss carryforwards. Included in the provision for income taxes is the deferred tax related to amounts recorded in and reclassified from other comprehensive income in the year of $0.4 million (2018 — $0.3 million). (c) The provision for income taxes from operations differs from the amount that would have resulted by applying the combined Canadian federal and provincial statutory income tax rates to earnings due to the following: Years Ended December 31, 2019 2018 2017 Income tax provision at combined statutory rates $ (19,964 ) $ (11,555 ) $ (7,954 ) Adjustments resulting from: Non-deductible stock based compensation (276 ) (363 ) (295 ) Other non-deductible/non-includable items 93 202 (717 ) Changes to tax reserves 1,418 (204 ) (1,435 ) U.S. federal and state taxes (300 ) 30 (373 ) Withholding taxes (1,071 ) (1,418 ) (1,217 ) Income tax at different rates in foreign and other provincial jurisdictions 5,019 3,477 4,147 Investment and other tax credits (non-refundable) 701 783 1,570 Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments (1,998 ) 768 (532 ) (Reduction of) excess tax benefit from realized stock-based compensation awards (374 ) (1,232 ) (591 ) Impact of changes due to U.S. Tax Act — — (9,323 ) Other (16 ) (6 ) (70 ) Provision for income taxes $ (16,768 ) $ (9,518 ) $ (16,790 ) (d) The net deferred income tax asset is comprised of the following: As at December 31, 2019 2018 Net operating loss carryforwards $ 888 $ 3,389 Investment tax credit and other tax credit carryforwards 3,650 4,829 Write-downs of other assets 1,220 1,218 Excess of tax accounting basis in property, plant and equipment, inventories and other assets 6,257 8,243 Accrued pension liability 6,393 6,125 Accrued stock-based compensation 5,360 2,054 Other accrued reserves 4,617 11,423 Total deferred income tax assets 28,385 37,281 Income recognition on net investment in leases (4,283 ) (5,820 ) 24,102 31,461 Valuation allowance (197 ) (197 ) Net deferred income tax asset $ 23,905 $ 31,264 The gross deferred tax assets include a liability of $0.4 million (December 31, 2018 — $0.1 million) relating to the remaining tax effect resulting from the Company’s defined benefit pension plan, the related actuarial gains and losses, and unrealized net gains and losses on cash flow hedging instruments recorded in accumulated other comprehensive income. The Company recorded income tax expense of $16.8 million for the year-ended December 31, 2019. The effective tax rate for the year of 22.3% was lower than the Canadian statutory combined Federal and Provincial rate of 26.22% primarily due to income earned in Greater China and Ireland at lower effective rates. The effective tax rate for the year ended December 31, 2019 was consistent with the effective tax rate for the year ended December 31, 2018 of 21.8%. The effective tax rate for the year ended December 31, 2018 was significantly lower than the effective tax rate for December 31, 2017 of 55.9% due to the impact of the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted on December 22, 2017 by the U.S. government. The Tax Act made broad and complex changes to the U.S. tax code including, but not limited to reducing the U.S. federal corporate tax rate from 35% to 21%, imposing other limitations and changes that limit or eliminate various deductions, including interest expense, performance-based compensation for certain executives, and other deductions and required the re-measurement of deferred tax assets and liabilities. U.S. GAAP requires that the impact of changes to tax legislation be recognized in the period in which the law was enacted. As a result, the Company recorded a discrete tax provision charge of $9.3 million for the year ended December 31, 2017 increasing the effective tax rate for 2017 by 31.1%. The Tax Act also includes a number of other changes including: (a) the imposition of a one-time deemed repatriation tax on accumulated foreign earnings (the “Transition Tax”), (b) a 100% dividends received deduction on dividends from foreign affiliates, (c) a current inclusion in U.S. federal taxable income of earnings of foreign affiliates that are determined to be global intangible low taxed income or “GILTI”, (d) creation of the base erosion anti-abuse tax, or “BEAT”, (e) provision for an effective tax rate of 13.125% for certain income derived from outside of the U.S. (referred to as foreign derived intangible income or “FDII”) and (f) 100% expensing of qualifying fixed assets acquired after September 27, 2017. Given that the Company is a Canadian based multinational with subsidiary operations in the US and other foreign jurisdictions a number of these changes did not impact the Company. The Company is not expecting to be subject to the BEAT, Transition Tax or GILTI given its current legal and tax structures. The Company is eligible to expense qualifying fixed assets acquired after September 27, 2017, and was subject to the additional limitations imposed on the deductibility of executive compensation. The Company is not adversely impacted by the limitations placed on the deductibility of interest expense. In 2018, the Company finalised its accounting related to changes in the Tax Act. Among other things, the Company has finalised provisional estimates and tax calculations made under SAB 118, which included an evaluation of recent interpretations and new guidance issued. No adjustments were recognised during the year ended December 31, 2018, and the provisional re-measurement effect on deferred taxes recorded in the year 2017 year reflects the total effect of the changes in the Tax Act. No U.S. income taxes have been provided for any undistributed foreign earnings, or any additional outside basis differences inherent in these foreign entities, as the Company is a Canadian corporation and these amounts continue to be indefinitely reinvested in foreign operations which are owned directly or indirectly. Further, the Company has not provided for Canadian taxes on cumulative earnings of non-Canadian affiliates and associated companies that have been reinvested indefinitely. Taxes are provided for earnings of non-Canadian affiliates and associated companies when the Company determines that such earnings are no longer indefinitely reinvested. (e) (f) Valuation allowance The provision for income taxes in the year ended December 31, 2019 does not include an adjustment to the valuation allowance (2018 — $nil) in continuing operations. During the year ended December 31, 2019, after considering all available evidence, both positive (including recent and historical profits, projected future profitability, backlog, carryforward periods for, and utilization of net operating loss carryovers and tax credits, discretionary deductions and other factors) and negative (including cumulative losses in past years and other factors), it was concluded that the existing valuation allowance against the Company’s deferred tax assets was appropriate (2018 — $nil). The $0.2 million (2018 — $0.2 million) balance in the valuation allowance as at December 31, 2019 is primarily attributable to certain U.S. state net operating loss carryovers that may expire unutilized. (g) Uncertain tax positions The Company recorded a net decrease of $1.4 million related to reserves for income taxes, of which $nil was recorded directly to retained earnings. As at December 31, 2019 and December 31, 2018, the Company had total tax reserves (including interest and penalties) of $14.7 million and $16.1 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 position. Accordingly, additional provisions on federal, provincial, state and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. A reconciliation of the beginning and ending amount of tax reserves (excluding interest and penalties) for the years ended December 31 is as follows: Years Ended December 31, 2019 2018 2017 Balance at beginning of the year $ 16,136 $ 15,927 $ 12,593 Additions based on tax positions related to the current year 812 4,329 3,639 Reductions for tax positions of prior years (2,230 ) (170 ) (195 ) Reductions resulting from lapse of applicable statute of limitations and administrative practices — (3,950 ) (110 ) Balance at the end of the year $ 14,718 $ 16,136 $ 15,927 The Company has elected to classify interest and penalties related to income tax liabilities, when applicable, as part of the interest expense in its consolidated statements of operations rather than income tax expense. The Company expensed $0.2 million in potential interest and penalties associated with its provision for uncertain tax positions for the years ended December 31, 2019 (2018 — less than $0.1 million; 2017 — less than $0.1 million). The number of years with open tax audits varies depending on the tax jurisdiction. The Company's major taxing jurisdictions include Canada, the province of Ontario, the United States (including multiple states), Ireland and China. The Company's 2015 through 2019 tax years remain subject to examination by the IRS for U.S. federal tax purposes, and the 2015 through 2019 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 financial statements. Cash held outside of North America as at December 31, 2019 was $89.9 million (December 31, 2018 — $121.9 million), of which $67.6 million was held in the People’s Republic of China (“PRC”) (December 31, 2018 — $54.7 million). The Company's intent is to permanently reinvest these amounts outside of Canada and does not currently anticipate that it will need funds generated from foreign operations to fund North American operations. In the event funds from foreign operations are needed to fund operations in North America and if withholding taxes have not already been previously provided, the Company would be required to accrue and pay these additional withholding tax amounts on repatriation of funds from China to Canada. The Company currently estimates this amount to be $21.9 million. (h) Income tax effect on comprehensive income The income tax benefit (expense) related to the following items included in other comprehensive income (loss) are: Years Ended December, 31 2019 2018 2017 Unrecognized actuarial gain (loss) on defined benefit plan $ (42 ) $ (379 ) $ (262 ) Unrecognized actuarial gain or loss on postretirement benefit plans — (23 ) (32 ) Prior service cost arising during the period 145 — — Amortization of prior service cost included in net income (26 ) — — Unrealized change in cash flow hedging instruments (145 ) 581 (667 ) Realized change in cash flow hedging instruments upon settlement (310 ) 107 215 $ (378 ) $ 286 $ (746 ) |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | 12. Other Intangible Assets As at December 31, 2019 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 12,779 $ 8,587 $ 4,192 Licenses and intellectual property 26,168 10,747 15,421 Internal use software 23,791 13,239 10,552 Other 576 394 182 $ 63,314 $ 32,967 $ 30,347 As at December 31, 2018 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 12,266 $ 7,871 $ 4,395 Licenses and intellectual property 26,168 8,972 17,196 Internal use software 21,528 9,264 12,264 Other 548 308 240 $ 60,510 $ 26,415 $ 34,095 Fully amortized other intangible assets are still in use by the Company. In 2019, the Company identified and wrote off $0.1 million (2018 ─ $0.2 million) of patents and trademarks that are no longer in use. During 2019, the Company acquired $2.9 million in other intangible assets, which is mainly an investment in the Company’s internal use software. The weighted average amortization period for these additions is 4.7 years. The net book value of the internal use software was $1.9 million as at December 31, 2019. During 2019, the Company incurred costs of $0.4 million to renew or extend the term of acquired patents and trademarks which were recorded in selling, general and administrative expenses (2018 ─ $0.3 million). The estimated amortization expense for each of the years ended December 31, are as follows: 2020 $ 6,553 2021 6,553 2022 6,553 2023 6,553 2024 6,553 |
Credit Facility and Other Finan
Credit Facility and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility and Other Financing Arrangements | 13. Credit Facility and Other Financing Arrangements Credit Facility On June 28, 2018, the Company entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto. The Credit Agreement expands the Company’s revolving borrowing capacity from $200.0 million to $300.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, depending on the mix of revolving and term loans comprising the incremental facility. The facility (the “Credit Facility”) matures on June 28, 2023. Loans under the Credit Facility will bear interest, at the Company’s option, at (i) LIBOR plus a margin ranging from 1.00% to 1.75% per annum; or (ii) the U.S. base rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company’s Total Leverage Ratio (as defined in the Credit Agreement). The Credit Agreement provides that the Company is required to maintain a Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) as of the last day of any fiscal quarter (as defined in the Credit Agreement) of no greater than 3.25:1.00. In addition, the Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, capital expenditures, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets. The Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. 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 the assets of the Company and the Guarantors. The Company was in compliance with all of its requirements at December 31, 2019. Total amounts drawn and available under the Credit Facility at December 31, 2019 were $20.0 million and $280.0 million, respectively (December 31, 2018 — $40.0 million and $260.0 million, respectively). The effective interest rate for the year ended December 31, 2019 was 3.43% (2018 — 3.41%). As at December 31, 2019 and 2018, the Company did not have any letters of credit and advance payment guarantees outstanding under the Credit Facility. Working Capital Loan On July 5, 2018, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, entered into an unsecured revolving facility for up to 200.0 million Renminbi (approximately $30.0 million U.S. Dollars) to fund ongoing working capital requirements. On July 24, 2019, this facility was renewed. The total amounts drawn and available under the working capital loan at December 31, 2019 and 2018 were nil and 200.0 million Renminbi, respectively ($nil and approximately $30.0 million U.S. Dollars, respectively). Bank indebtedness includes the following: December 31, December 31, 2019 2018 Credit Facility $ 20,000 $ 40,000 Deferred charges on debt financing (1,771 ) (2,247 ) $ 18,229 $ 37,753 Wells Fargo Foreign Exchange Facility Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. The net settlement gain on its foreign currency forward contracts was $0.5 million at December 31, 2019, as the fair value of the forward contracts exceeded the notional value (December 31, 2018 — $1.2 million net settlement risk). As at December 31, 2019, the Company has $36.1 million in notional value of such arrangements outstanding (December 31, 2018 — $50.8 million). Bank of Facility Prior to September 30, 2019, the Company had available a $10.0 million facility (December 31, 2018 — $10.0 million) with the Bank of Montreal for use solely in conjunction with the issuance of performance guarantees and letters of credit fully insured by Export Development Canada (the “Bank of Montreal Facility”). The Bank of Montreal Facility expired as of September 30, 2019 and was not renewed. NBC Facility On October 28, 2019, the Company entered into a $5.0 million facility with the National Bank of Canada for use solely in conjunction with the issuance of performance guarantees and letters of credit fully insured by Export Development Canada (the “NBC Facility”) to replace the Bank of Montreal Facility. The Company did not have any letters of credit and advance payment guarantees outstanding as at December 31, 2019 under the NBC Facility. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | 14. Commitments In the ordinary course of 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 at December 31, 2019: Payments Due by Fiscal Year Total Obligations 2020 2021 2022 2023 2024 Thereafter Purchase obligations $ 41,779 $ 41,440 $ 339 $ — $ — $ — $ — Pension obligations 20,298 — — — 20,298 — — Operating lease obligations 22,170 4,215 3,260 2,318 2,203 2,158 8,016 Credit Facility 20,000 — — — 20,000 — — Postretirement benefits obligations 2,246 108 114 113 123 123 1,665 $ 106,493 $ 45,763 $ 3,713 $ 2,431 $ 42,624 $ 2,281 $ 9,681 Operating Lease Obligations The Company’s lease commitments consist of rent and equipment under operating leases. The Company accounts for any incentives provided over the term of the lease. The following table summarizes information about the Company’s total rental expenses under operating leases: Years Ended December 31, 2019 2018 2017 Total rent expense $ 3,753 $ 4,303 $ 5,685 Recorded in the accrued liabilities balance as at December 31, 2019 is $0.3 million (December 31, 2018—$3.0 million) related to accrued rent and lease inducements being recognized as an offset to rent expense over the term of the respective leases. Purchase Obligations Purchase obligations primarily consist of the Company’s commitments made under long-term supplier contracts. Pension and Postretirement Benefits Obligations The Company has an unfunded defined benefit pension plan, covering certain individuals and a postretirement plan to provide health and welfare benefits to Canadian employees meeting certain eligibility requirements. See note 23 for further information. Credit Facility The Company is not required to make any minimum payments on its Credit Facility. See note 13 for further information. Letters of Credit and Advance Payment Guarantees As at December 31, 2019 the Company did not have any letters of credit and advance payment guarantees outstanding (December 31, 2018 — $nil), under the Credit Facility, the Bank of Montreal Facility or the NBC Facility. See note 13 for further information. Commissions The Company compensates its sales force with both fixed and variable compensation. Commissions on the sale or lease of the Company’s theater 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. At December 31, 2019, $0.6 million (December 31, 2018 — $1.8 million ) of commissions have been accrued and will be payable in future periods. |
Contingencies and Guarantees
Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies and Guarantees | 15. Contingencies and Guarantees The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. In accordance with the Contingencies Topic of the FASB ASC, the Company will make a provision for a liability when it is both probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has adequate provisions for any such matters. The Company reviews these provisions in conjunction with any related provisions on assets related to the claims at least quarterly and adjusts these provisions to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other pertinent information related to the case. Should developments in any of these matters outlined below cause a change in the Company’s determination as to an unfavorable outcome and result in the need to recognize a material provision, or, should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on the Company’s results of operations, cash flows, and financial position in the period or periods in which such a change in determination, settlement or judgment occurs. The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred. (a) 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 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. In July 2008, E-City commenced a proceeding in Mumbai, India seeking an order that the ICC award may not be recognized in India and on June 10, 2013, the Bombay High Court ruled that it had jurisdiction over the proceeding filed by E-City. The Company appealed that ruling to the Supreme Court of India, and on March 10, 2017, the Supreme Court set aside the Bombay High Court’s judgement and 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. 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 October 2015, 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. (b) 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. An arbitration hearing for witness testimony was held during the week of December 14, 2015. At the hearing, Giencourt’s expert identified monetary damages of up to approximately $10.4 million, which Giencourt sought to recover from the Company. The Company asserted a counterclaim against Giencourt for breach of contract and sought to recover lost profits in excess of $24.0 million under the agreements. Subsequently, in December 2015, Giencourt made a motion to the panel seeking to enforce a purported settlement of the matter based on negotiations between Giencourt and the Company. The panel held a final hearing with closing arguments in October 2016. 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 the merits of the dispute. The Company strongly disputes that discussions about a potential resolution of this matter amounted to an enforceable settlement. In October 2017, the Company filed a petition to vacate the arbitration award in the United States Court for the Southern District of Florida on various grounds, including that the panel exceeded its jurisdiction, and a hearing was held on June 27, 2019. On September 27, 2019, a Magistrate Judge filed a non-binding recommendation that the Company’s petition be dismissed. On October 14, 2019, the Company filed an objection to that recommendation. The Company’s petition to vacate the arbitration award was denied by the District Judge on January 10, 2020. The Company plans to appeal this decision to the Eleventh Circuit Court of Appeals. At this time, the Company is unable to determine the amounts that it may owe pursuant to the Award, or the timing of any such payments, and therefore no assurances can be given with respect to the ultimate outcome of the matter . (c) 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. (d) In the normal course of business, the Company enters into agreements that may contain features that meet the definition of a guarantee. The Guarantees Topic of the FASB ASC defines a guarantee to be 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 The Company has provided no significant financial guarantees to third parties. Product Warranties The Company’s accrual for product warranties, that was recorded as part of accrued and other liabilities in the consolidated balance sheets is $0.2 million and $0.2 million as at December 31, 2019 and 2018, respectively. Director/Officer Indemnifications The Company’s General By-law contains 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 No Other Indemnification Agreements In the normal course of the Company’s operations, the Company provides indemnifications to counterparties in transactions such as: theater system lease and sale agreements and the supervision of installation or servicing of the theater 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 Company’s 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 not 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, 2019 | |
Equity [Abstract] | |
Capital Stock | 16. 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, as 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) Changes during the Year During the year, the Company settled common shares pursuant to the exercise of stock options for cash proceeds and vesting of RSUs. The settlement of common shares can be either settled through newly issued common shares from treasury or through the purchase of common shares in the open market by the IMAX Long-Term Incentive Plan trustee. The following table summarizes the settlement of stock option and RSU transactions: Years Ended December 31, 2019 2018 2017 Stock options Issued from treasury 19,088 12,750 405,229 Plan trustee purchases 67,840 — 263,112 Total stock options exercised 86,928 12,750 668,341 Cash proceeds on stock option exercises $ 1,752 $ 218 $ 14,652 RSUs Issued from treasury — — 7,127 Plan trustee purchases 404,719 462,137 422,022 Shares withheld for tax withholdings 29,577 72,056 27,630 Total RSUs vested 434,296 534,193 456,779 (c) Stock-Based Compensation The Company issues stock-based compensation to eligible employees, directors, and consultants under the IMAX Corporation Amended and Restated Long-Term Incentive Plan (the “IMAX LTIP”) and the China Long-Term Incentive Plan (the “China LTIP”) as summarized below. The IMAX LTIP is the Company’s governing document and awards to employees, directors, and consultants under this plan may consist of stock options, RSUs, PSUs and other awards. Stock options are no longer granted under the Company’s previous approved Stock Option Plan (“SOP”). A separate stock option plan, the China LTIP, was adopted by a subsidiary of the Company in October 2012. Compensation costs recorded in the consolidated statements of operations for the Company’s stock-based compensation plans were $22.8 million (2018 — $22.6 million; 2017 —$23.0 million). The following reflects the stock-based compensation expense recorded to the respective financial statement line items: Years Ended December 31, 2019 2018 2017 Cost and expenses applicable to revenues $ 1,709 $ 1,657 $ 1,704 Selling, general and administrative expenses 20,750 20,102 20,393 Research and development 371 452 556 Executive transition costs — 320 — Exit costs, restructuring charges and associated impairments — 54 357 $ 22,830 $ 22,585 $ 23,010 As at December 31, 2019, the Company has reserved a total of 8,944,999 (December 31, 2018 — 9,767,307) common shares for future issuance under the IMAX LTIP. Of the common shares reserved for issuance, there are options in respect of 5,732,209 (December 31, 2018 — 5,465,046) common shares and RSUs in respect of 1,065,347 (December 31, 2018 — 1,033,871) common shares outstanding at December 31, 2019. At December 31, 2019 options in respect of 4,801,272 (December 31, 2018 — 3,990,970) common shares were vested and exercisable. Stock Option Plan 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 utilizes a Binomial Model to determine the fair value of stock-based payment awards. 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 awards, and 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 awards of stock options are made at 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 means the higher of the closing price of a common share on the grant date (or 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 “Fair Market Value”). The stock options vest within 4 years and expire 10 years or less from the date granted. 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 option grants issued to employees and directors in the IMAX LTIP and SOP plans. Years Ended December 31, 2019 2018 2017 Stock option expense $ 8,329 $ 5,950 $ 4,462 An income tax benefit is recorded in the consolidated statement of operations of $1.9 million for the year ended December 31, 2019 (2018 —$1.2 million; 2017 —$1.0 million) related to stock option expenses. Total stock-based compensation expense related to non-vested employee stock options not yet recognized at December 31 are as follows: Years Ended December 31, 2019 2018 2017 Expense related to non-vested employee stock options not yet recognized $ 4,073 $ 8,482 $ 7,441 The weighted average period over which the awards are expected to be recognized are as follows: Years Ended December 31, 2019 2018 2017 Weighted average period awards are expected to be recognized (in years) 2.7 1.9 2.3 The weighted average fair value of all stock options granted to employees and directors at the measurement date and the assumptions used to estimate the average fair value of the stock option are as follows: Years Ended December 31, 2019 2018 2017 Weighted average fair value per share $ 6.65 $ 6.74 $ 8.31 Average risk-free interest rate 2.64% 2.67% 2.34% Expected option life (in years) 6.73 - 10.00 5.06 - 7.00 4.71 - 5.83 Expected volatility 31% 30% 30% Dividend yield 0% 0% 0% Stock Options to Non-Employees There were no common share options issued to non-employees in 2019, 2018 or 2017. In 2019, the Company did not record a charge (2018 — $nil; 2017 — less than $0.1 million) to selling, general and administrative expenses related to the non-employee stock options. There were no accrued liabilities related to non-employee stock options as at December 31, 2019 (December 31, 2018 — $nil). China Long-Term Incentive Plan Each stock option (“China Option”), RSU or cash settled share-based payment (“CSSBP”) issued under the China LTIP represents an opportunity to participate economically in the future growth and value creation of IMAX China. The CSSBPs represent the right to receive cash payments in an amount equal to a certain percentage of the excess of the total equity value of IMAX China based on the per share price in the IMAX China initial public offering (the “IMAX China IPO”) over the strike price of the CSSBPs. The CSSBPs were issued in conjunction with the China LTIP, with similar terms and conditions as the China Options. The CSSBP awards are accounted as liability awards, however the fair value of the liability was fixed at the time of the initial public offering. During 2017, the remaining balance of the CSSBPs vested and were settled in cash for $0.6 million. 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 and China LTIP Restricted Share Units (“China RSUs”). The following table summarizes the expense related to China Options, China RSUs, CSSBPs and any accrued liability related to CSSBPs: Years Ended December 31, 2019 2018 2017 Expense China Options $ 320 $ 217 $ 1,034 China RSUs 1,664 1,229 1,124 CSSBPs — — 353 CSSBPs liability $ — $ — $ — Stock Option Summary The following table summarizes certain information in respect of option activity under the SOP and IMAX LTIP: Weighted Average Exercise Number of Shares Price Per Share 2019 2018 2017 2019 2018 2017 Options outstanding, beginning of year 5,465,046 5,082,100 5,190,542 $ 27.63 $ 29.31 $ 28.35 Granted 1,016,882 1,082,123 854,764 20.66 21.95 30.07 Exercised (86,928 ) (12,750 ) (668,341 ) 20.16 17.08 21.92 Forfeited (336,493 ) (69,332 ) (108,551 ) 23.63 29.99 32.42 Expired (299,134 ) (507,977 ) (89,958 ) 25.82 31.69 32.29 Cancelled (27,164 ) (109,118 ) (96,356 ) 31.13 30.44 29.28 Options outstanding, end of year 5,732,209 5,465,046 5,082,100 26.82 27.63 29.31 Options exercisable, end of year 4,801,272 3,990,970 3,913,088 27.40 28.48 28.96 As at December 31, 2019, 5,732,209 options included both fully vested and unvested options with a weighted average exercise price of $26.82, aggregate intrinsic value of $0.9 million and weighted average remaining contractual life of 4.5 years. As at December 31, 2019, options that are exercisable have an intrinsic value of $0.9 million and a weighted average remaining contractual life of 4.3 years. The intrinsic value of options exercised in 2019 was $0.2 million (2018 — $0.1 million; 2017 — $6.8 million). Restricted Share Units RSUs have been granted to employees and directors under the IMAX LTIP. Each RSU represents a contingent right to receive one 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. The Company recorded the following expenses related to RSU grants issued to employees and directors in the plan: Years Ended December 31, 2019 2018 2017 RSU expenses $ 12,394 $ 15,189 $ 16,033 The Company’s actual tax benefits realized for the tax deductions related to the vesting of RSUs was $1.6 million for the year ended December 31, 2019 (2018 — $1.4 million; 2017 — $3.6 million). The Company’s accrued liability for RSUs, deemed as granted, was $0.4 million as at December 31, 2019 (December 31, 2018 — $nil). Total stock-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, 2019 2018 2017 Expense related to non-vested RSUs not yet recognized $ 23,548 $ 18,597 $ 22,440 Weighted average period awards are expected to be recognized (in years) 2.7 2.2 2.1 The following table summarizes certain information in respect of RSU activity under the IMAX LTIP: Number of Awards Weighted Average Grant Date Fair Value Per Share 2019 2018 2017 2019 2018 2017 RSUs outstanding, beginning of year 1,033,871 995,329 1,124,180 $ 25.70 $ 32.68 $ 33.01 Granted 687,475 659,282 463,010 22.30 20.99 30.47 Vested and settled (434,296 ) (534,193 ) (456,779 ) 27.54 32.33 31.66 Forfeited (221,703 ) (86,547 ) (135,082 ) 23.68 29.19 32.03 RSUs outstanding, end of year 1,065,347 1,033,871 995,329 23.17 25.70 32.68 Historically, RSUs granted under the IMAX LTIP have vested between immediately and four years from the grant date. In connection with the amendment and restatement of the IMAX LTIP at the Company’s annual and special meeting of the shareholders on June 6, 2016, the IMAX LTIP plan was amended to impose a minimum one-year Outstanding, December 31, 2017 213,661 Issued during 2018 (65,838 ) Outstanding, December 31, 2018 147,823 Issued during 2019 (64,053 ) Outstanding, December 31, 2019 83,770 Restricted Share Units to Non-Employees The Company issued 12,580 RSU awards to a certain advisor of the Company which were granted, vested, and settled in the year ended December 31, 2019 (2018 and 2017 ― nil, respectively). The Company recorded an expense of $0.1 million for the year ended December 31, 2019 (2018 and 2017 ― $nil, respectively) related to RSU grants issued to advisors and strategic partners of the Company. Issuer Purchases of Equity Securities In 2017, the Company’s Board of Directors approved a $200.0 million share repurchase program for shares of the Company’s common stock. The share purchase program expires on June 30, 2020. The repurchases may be made either in the open market or through private transactions, 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 2019, the Company repurchased 134,384 (2018 ― 3,436,783) common shares at an average price of $19.76 per share (2018 ― $20.78 per share), excluding commissions. In 2018, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to buy back shares of IMAX China in an amount not to exceed 10% of the total number of issued shares of IMAX China as at May 3, 2018 (35,818,112 shares). The share repurchase program expired on June 6, 2019. In 2019, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China in an amount not to exceed 10% of the total number of issued shares of IMAX China as at June 6, 2019 (35,605,560 shares). The share purchase program expires on the date of the 2020 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 2019, IMAX China repurchased 8,051,500 common shares at an average price of HKD $18.63 per share (U.S. $2.38). The total number of shares purchased during the year ended December 31, 2019 and 2018 does not include 615,000 and 300,000 common shares, purchased in the administration of employee share-based compensation plans, at an average price of $22.49 and $20.55 per share, respectively. As at December 31, 2019, the IMAX LTIP trustee held 187,020 shares purchased for $4.0 million in the open market to be issued upon the settlement of RSUs and certain stock options. The shares held with the trustee are recorded at cost and are reported as a reduction against capital stock on the consolidated balance sheet. (d) Reconciliations of the numerator and denominator of the basic and diluted per-share computations are comprised of the following: Years Ended December 31, 2019 2018 2017 Net income attributable to common shareholders $ 46,866 $ 22,844 $ 2,344 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 61,434 64,696 66,160 Weighted average number of shares repurchased during the period, net (124 ) (1,621 ) (780 ) Weighted average number of shares used in computing basic earnings per share 61,310 63,075 65,380 Assumed exercise of stock options and RSUs, net of shares assumed repurchased 179 132 160 Weighted average number of shares used in computing diluted earnings per share 61,489 63,207 65,540 The calculation of diluted earnings per share exclude 5,809,468 (2018 and 2017 ― 5,666,976 and 4,993,014, respectively) shares that are issuable upon exercise of 77,259 (2018 and 2017 ― 277,543 and 579,808, respectively) RSUs and 5,732,209 (2018 and 2017 ― 5,389,433 and 4,413,206, respectively) stock options for the years ended December 31, 2019, 2018 and 2017, as the impact of these exercises would be antidilutive. |
Consolidated Statements of Op_2
Consolidated Statements of Operations Supplemental Information | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidated Statements of Operations Supplemental Information | 17. Consolidated Statements of Operations Supplemental Information (a) Selling Expenses The Company defers direct selling costs such as sales commissions and other amounts related to its sales and sales-type lease arrangements until the related revenue is recognized. These costs and direct advertising and marketing, included in costs and expenses applicable to Revenues – Equipment and product sales, totaled $3.1 million for the year ended December 31, 2019 (2018 — $2.9 million; 2017 — $3.6 million). Film exploitation costs, including advertising and marketing, totaled $22.9 million for the year ended December 31, 2019 (2018 — $21.2 million; 2017 — $14.7 million), and are recorded in costs and expenses applicable to revenues-services as incurred. Commissions are recognized as costs and expenses applicable to Revenues – Rentals in the month they are earned. These costs totaled an expense of $0.4 million for the year ended December 31, 2019 (2018 — $0.9 million; 2017 — $1.6 million). Direct advertising and marketing costs for each theater are charged to costs and expenses applicable to Revenues – Rentals as incurred. These costs totaled an expense of $3.0 million for the year ended December 31, 2019 (2018 — $2.1 million; 2017 — $2.6 million). (b) Foreign Exchange Included in selling, general and administrative expenses for the year ended December 31, 2019 is $0.9 million for a net foreign exchange loss related to the translation of foreign currency denominated monetary assets and liabilities as compared to a net loss of $1.7 million and a net gain of $1.0 million for the years ended December 31, 2018 and 2017, respectively. See note 22(d) for additional information. (c) Collaborative Arrangements Joint Revenue Sharing Arrangements In a joint revenue sharing arrangement, the Company receives a portion of a theater’s box-office and concession revenues, and in some cases a small upfront or initial payment, in exchange for placing a theater system at the theater operator’s venue. 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 equipment under joint revenue sharing arrangements 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 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 extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company has signed traditional and hybrid joint revenue sharing agreements with 39 exhibitors (2018 — 35) for a total of 1,223 theater systems (2018 — 1,185), of which 870 theaters (2018 — 798) were operating as at December 31, 2019. The terms of the Company’s joint revenue sharing arrangements are similar in nature, rights and obligations. The accounting policy for the Company’s joint revenue sharing arrangements is disclosed in note 2(n). Amounts attributable to transactions arising between the Company and its customers under joint revenue sharing arrangements are included in Equipment and Product Sales and Rentals revenue under ASC Topic 606 and for the year ended December 31, 2019 amounted to $92.0 million (2018 — $86.6 million; 2017 —$80.6 million). IMAX DMR In an IMAX DMR arrangement, the Company transforms conventional motion pictures into the Company’s large screen format, allowing the release of Hollywood content to the global IMAX theater network. In a typical IMAX DMR film arrangement, the Company will absorb its costs for the digital re-mastering and then recoup this cost from a percentage of the box-office receipts of the film, which in recent years has averaged approximately 12.5% outside of Greater China and a lower percentage for certain films within Greater China. The Company does not typically hold distribution rights or the copyright to these films. In 2019, the majority of IMAX DMR revenue was earned from the exhibition of 72 IMAX DMR films (2018 — 80) throughout the IMAX theater network. The accounting policy for the Company’s IMAX DMR arrangements is disclosed in note 2(n). Amounts attributable to transactions arising between the Company and its customers under IMAX DMR arrangements are included in Services revenues and for the year ended December 31, 2019 amounted to $120.8 million (2018 — $110.8 million; 2017 — $108.9 million). 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 rights to the film except that the Company obtains exclusive theatrical distribution rights to the film. Under these arrangements, both parties contribute funding to the Company’s wholly-owned company for the production of the film or content and for associated exploitation costs. Clauses in the film arrangements generally provide for the third party to take over the production of the film if the cost of the production exceeds its approved budget or if it appears as though the film will not be delivered on a timely basis. As at December 31, 2019, the Company has two significant co-produced arrangements which primarily represents the VIE total assets balance of $9.7 million and liabilities balance of $15.5 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 2(a) and 2(n). In 2019, an expense of $0.6 million (2018 — recovery of $0.5 million; 2017 — expense of $1.2 million) attributable to transactions between the Company and other parties involved in the production of the films have been included in cost and expenses applicable to revenues-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, 2019, revenues of $0.4 million (2018 — $0.3 million; 2017 — $20.4 million) and costs and expenses applicable to revenues of less than $0.1 million (2018 — $0.3 million; 2017 — $33.4 million), attributable to this collaborative arrangement have been recorded in Revenue – Services and Costs and expenses applicable to revenues – Services, respectively. In 2017, included therein are net revenues attributable to transactions between the Company and other parties involved in the production of the episodic content of $20.1 million. |
Receivable Provisions, Net of R
Receivable Provisions, Net of Recoveries | 12 Months Ended |
Dec. 31, 2019 | |
Receivable Provisions Net Of Recoveries [Abstract] | |
Receivable Provisions, Net of Recoveries | 18. Receivable Provisions, Net of Recoveries The following table reflects the Company’s receivable provisions net of recoveries recorded in the consolidated statements of operations: Years Ended December 31, 2019 2018 2017 Accounts receivable provisions, net of recoveries $ 2,354 $ 3,030 $ 1,967 Financing receivable provisions, net of recoveries 76 100 680 Receivable provisions, net of recoveries $ 2,430 $ 3,130 $ 2,647 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows Supplemental Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Consolidated Statements of Cash Flows Supplemental Information | 19. Consolidated Statements of Cash Flows Supplemental Information (a) Changes in other non-cash operating assets and liabilities are comprised of the following: Years Ended December 31, 2019 2018 2017 Decrease (increase) in: Accounts receivable $ (8,621 ) $ 33,942 $ (37,807 ) Financing receivables (320 ) 1,325 (7,253 ) Inventories 1,942 (14,022 ) 10,832 Prepaid expenses (290 ) (3,703 ) (924 ) Variable consideration receivable (4,056 ) — — Other assets (2,063 ) (3,084 ) (457 ) Increase (decrease) in: Accounts payable (11,774 ) 7,749 4,204 Accrued and other liabilities (1) (8,505 ) (3,266 ) (642 ) Deferred revenue (12,242 ) (6,494 ) 22,906 $ (45,929 ) $ 12,447 $ (9,141 ) (1) Excluded the $17.4 million non-cash impact of adopting ASC Topic 842 in 2019 (b) Cash payments made on account of: Years Ended December 31, 2019 2018 2017 Income taxes $ 17,298 $ 12,684 $ 22,829 Interest $ 1,231 $ 502 $ 826 (c) Depreciation and amortization are comprised of the following: Years Ended December 31, 2019 2018 2017 Film assets (1) $ 19,176 $ 15,679 $ 31,031 Property, plant and equipment Joint revenue sharing arrangements 23,153 20,739 18,112 Other property, plant and equipment 12,477 13,164 11,803 Other intangible assets 6,290 5,507 4,319 Other assets 1,882 1,242 980 Deferred financing costs 509 1,106 562 $ 63,487 $ 57,437 $ 66,807 (1) Included in film asset amortization is a charge of $nil (2018 — $nil; 2017 — $1.5 million) relating to changes in estimates based on the ultimate recoverability of future films. (d) Write-downs, net of recoveries, are comprised of the following: Years Ended December 31, 2019 2018 2017 Asset impairments Property, plant and equipment $ 96 3,725 $ 3,966 Other assets — 2,565 2,533 Prepaid expenses — 121 — Other intangible assets — 66 — Impairment of investments — — 1,225 Film assets 1,379 — 17,363 Other charges Accounts receivable (net of recoveries) 2,354 3,030 1,967 Financing receivables 76 100 680 Inventories 446 250 500 Property, plant and equipment (1) 2,360 1,762 1,224 Other intangible assets 95 151 63 Other assets — — 47 $ 6,806 $ 11,770 $ 29,568 Inventory charges Recorded in costs and expenses applicable to revenues - product & equipment sales $ 276 $ 250 $ 500 Recorded in costs and expenses applicable to revenues - services 170 — — $ 446 $ 250 $ 500 (1) In 2019, the Company recorded a charge of $0.2 million (2018 — $0.8 million; 2017 — $1.2 million) reflecting property, plant and equipment that were no longer in use. In 2019, the Company recorded a charge of $2.2 million in cost of sales applicable to Rentals upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. In 2018, the Company also recorded a charge of $0.6 million in cost of sales applicable to Rentals, and $0.4 million in revenue applicable to Rentals upon the upgrade of xenon-based digital systems under operating lease arrangements to laser-based digital systems under sales or sales-type lease arrangements. No such charge was recorded in the year ended December 31, 2017. (e) Significant non-cash investing and financing activities are comprised of the following: Years Ended December 31, 2019 2018 Net accruals related to: Purchases of property, plant and equipment $ 496 $ 227 Investment in joint revenue sharing arrangements (2,013 ) (61 ) Acquisition of other intangible assets (51 ) 89 $ (1,568 ) $ 255 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 20. The following tables present a breakdown of the Company’s revenues between fixed and variable consideration and lease arrangements: Years Ended December 31, 2019 Subject to the Revenue Subject to the Recognition Standard Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ — $ 120,765 $ — $ 120,765 Joint revenue sharing arrangements – contingent rent — — 75,932 75,932 IMAX systems – contingent rent — — 139 139 — 120,765 76,071 196,836 Theater business IMAX systems Sales and sales-type leases 86,202 10,108 — 96,310 Ongoing fees and finance income 11,613 — — 11,613 Joint revenue sharing arrangements – fixed fees — — 11,014 11,014 Theater system maintenance 53,151 — — 53,151 Other theater 8,390 — — 8,390 159,356 10,108 11,014 180,478 New business 2,754 — — 2,754 Other Film post-production 7,392 — — 7,392 Film distribution — 4,818 — 4,818 Other — 2,123 1,263 3,386 7,392 6,941 1,263 15,596 Total $ 169,502 $ 137,814 $ 88,348 $ 395,664 Year Ended December 31, 2018 Subject to the Revenue Subject to the Recognition Standard Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ — $ 110,793 $ — $ 110,793 Joint revenue sharing arrangements – contingent rent — — 73,371 73,371 IMAX systems – contingent rent — — — — — 110,793 73,371 184,164 Theater business IMAX systems Sales and sales-type leases 82,128 6,304 — 88,432 Ongoing fees and finance income 12,224 — — 12,224 Joint revenue sharing arrangements – fixed fees 9,706 — — 9,706 Theater system maintenance 49,684 — — 49,684 Other theater 8,358 — — 8,358 162,100 6,304 — 168,404 New business 4,050 1,719 — 5,769 Other Film post-production 9,516 — — 9,516 Film distribution — 3,446 — 3,446 Other 50 3,052 — 3,102 9,566 6,498 — 16,064 Total $ 175,716 $ 125,314 $ 73,371 $ 374,401 The Company’s arrangements include a requirement for the provision of maintenance services over the life of the arrangement, subject to a consumer price index increase on renewal each year. In circumstances where customers prepay the entire term’s maintenance arrangement, payments are due to the Company for the years after the extended warranty and maintenance services offered as part of the System performance obligations expire. Payments upon renewal each year can be either in arrears or in advance and can vary in frequency from monthly to annually. At December 31, 2019, $17.7 million of consideration has been deferred in relation to outstanding stand ready performance obligations related to these maintenance services (December 31, 2018 — $21.9 million). As the maintenance services are a stand ready obligation, revenue, subject to appropriate constraint, is recognized evenly over the contract term. In instances where consideration is received prior to performance obligations being satisfied, it is deferred. The majority of the Company’s deferred revenue balance relates to payments for theater systems that have not yet been recognized. The deferred revenue related to an individual theater increases as progress payments are made and is recognized at the time the system obligation is satisfied. Recognition dates are variable and depend on numerous factors, including some outside of the Company’s control. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segmented Information | 21. Segmented Information Management, including the Company’s Chief Executive Officer (“CEO”) who is the Company’s Chief Operating Decision Maker (as defined in the Segment Reporting Topic of the FASB ASC), assesses segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, amortization of intangibles, receivables provisions (recoveries), write-downs net of recoveries, interest income, interest expense and tax (provision) recovery are not allocated to the segments. The Company’s reportable segments are organized under four primary groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box office results and which includes the reportable segment of IMAX DMR and contingent rent from the joint revenue sharing arrangements and IMAX systems segments (hybrid joint revenue sharing arrangements, which take the form of a sale are reflected under the IMAX systems segment of Theater Business); (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes hybrid (fixed and contingent) revenues and upfront installation costs from sales arrangements previously reported in the joint revenue sharing arrangements segment and after-market sales of projection system parts and 3D glasses from the other segment; (3) New Business, which includes which includes home entertainment, and other new business initiatives that are in the development, start-up and/or wind-up phases, and (4) Other; which includes the film post-production and distribution segments, certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. The Company is presenting information at a disaggregated level to provide more relevant information to readers, as permitted by the standard. The accounting policies of the segments are the same as those described in note 2. Transactions between the film production and 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. (a) The Company has the following eight reportable segments: IMAX DMR, joint revenue sharing arrangements, IMAX systems, theater system maintenance, other theater, new business, film distribution and film post-production. The Company organizes its reportable segments into the following four primary groups: Network Business, Theater Business, New Business and Other. Years Ended December 31, 2019 2018 2017 Revenue (1) Network business IMAX DMR $ 120,765 $ 110,793 $ 108,853 Joint revenue sharing arrangements – contingent rent 75,932 73,371 70,444 IMAX systems – contingent rent 139 — 3,890 196,836 184,164 183,187 Theater business IMAX systems 107,923 100,656 90,347 Joint revenue sharing arrangements – fixed fees 11,014 9,706 10,118 Theater system maintenance 53,151 49,684 45,383 Other theater 8,390 8,358 9,145 180,478 168,404 154,993 New business 2,754 5,769 24,522 Other Film post-production 7,392 9,516 10,382 Film distribution 4,818 3,446 2,790 Other 3,386 3,102 4,893 15,596 16,064 18,065 Total revenues $ 395,664 $ 374,401 $ 380,767 Gross Margin Network business IMAX DMR (2) $ 78,592 $ 72,773 $ 71,789 Joint revenue sharing arrangements – contingent rent (2) 47,935 48,856 47,337 IMAX systems – contingent rent 139 — 3,890 126,666 121,629 123,016 Theater business IMAX systems (2)(3) 58,540 60,019 57,734 Joint revenue sharing arrangements – fixed fees (2) 2,613 1,982 2,349 Theater system maintenance (3) 23,010 21,991 18,275 Other theater 2,624 1,806 1,965 86,787 85,798 80,323 New business 2,106 (350 ) (16,176 ) Other Film post-production 1,680 3,107 4,791 Film distribution (2) (2,942 ) (1,344 ) (5,797 ) Other (125 ) (911 ) (911 ) (1,387 ) 852 (1,917 ) Total segment margin $ 214,172 $ 207,929 $ 185,246 Years Ended December 31, 2019 2018 2017 Depreciation and amortization Network business IMAX DMR $ 16,117 $ 13,602 $ 15,779 Joint revenue sharing arrangements - contingent rent 25,036 21,970 19,092 Theater business IMAX systems 3,878 3,615 3,551 Theater system maintenance 299 164 173 New business 58 2,519 15,365 Other Film post-production 1,301 1,500 1,845 Film distribution 3,894 2,225 2,128 Other 747 790 911 Corporate and other non-segment specific assets 12,157 11,052 7,963 Total $ 63,487 $ 57,437 $ 66,807 Years Ended December 31, 2019 2018 2017 Asset impairments and write-downs, net of recoveries Network business IMAX DMR — $ 15 $ — Joint revenue sharing arrangements - contingent rent 2,207 1,193 944 Theater business IMAX systems 276 250 2,930 Theater system maintenance 170 — — New business 96 7,399 16,400 Other Film post-production — — — Film distribution 1,379 — 5,865 Corporate and other non-segment specific assets 2,678 2,913 3,429 Total $ 6,806 $ 11,770 $ 29,568 Years Ended December 31, 2019 2018 2017 Purchase of property, plant and equipment Network business IMAX DMR $ 99 $ 55 $ 518 Joint revenue sharing arrangements - contingent rent 40,489 34,810 42,634 Theater business IMAX systems 452 2,813 4,537 Theater system maintenance 311 527 206 New business — 342 4,487 Other Film post-production 1,210 1,067 810 Other 504 193 367 Corporate and other non-segment specific assets 4,845 8,371 13,218 Total $ 47,910 $ 48,178 $ 66,777 As at December 31 2019 2018 Assets Network business IMAX DMR $ 46,417 $ 38,117 Joint revenue sharing arrangements - contingent rent 231,626 223,799 IMAX systems - contingent rent — — Theater business IMAX systems 277,720 266,290 Joint revenue sharing arrangements - fixed fees 27,189 18,044 Theater system maintenance 22,869 26,225 Other theater 2,042 2,197 New business — 1,677 Other Film post-production 36,562 36,998 Film distribution 14,831 15,601 Other 23,809 26,519 Corporate and other non-segment specific assets 206,004 218,133 Total $ 889,069 $ 873,600 (1) The Company’s largest customer represents 16.5% of total revenues as at December 31, 2019, (2018 —17.1%; 2017 —16.4%). (2) IMAX DMR segment margins include marketing costs of $22.5 million, $16.5 million and $15.4 million in 2019, 2018 and 2017, respectively. Joint revenue sharing arrangements segment margins include advertising, marketing, and commission costs of $4.5 million, $3.6 million and $4.5 million in 2019, 2018 and 2017, respectively. IMAX systems segment margins include marketing and commission costs of $2.0 million, $2.4 million and $2.9 million in 2019, 2018 and 2017, respectively. Film distribution segment margins includes marketing expense of $0.4 million, expense of $2.2 million and recovery of $0.7 million in 2019, 2018 and 2017, respectively. (3) In 2019, the Company recorded a charge of $0.4 million (2018 — $0.3 million; 2017 — $0.5 million, respectively) in costs and expenses applicable to revenues, primarily for its film-based projector inventories. Specifically, IMAX systems include an inventory charge of $0.3 million (2018 — $0.3 million; 2017 — $0.5 million). Theater system maintenance includes inventory write-downs of $0.2 million (2018 — $nil; 2017 — $nil). (4) Goodwill is allocated on a relative fair market value basis to the IMAX systems segment, theater system maintenance segment and joint revenue sharing segment. There has been no change in the allocation of goodwill from the prior year. (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 theaters that exhibit the re-mastered 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 theater. Years Ended December 31, 2019 2018 2017 Revenue Greater China $ 124,294 $ 117,520 $ 126,474 United States 121,264 118,495 135,153 Canada 9,220 10,507 12,812 Asia (excluding Greater China) 48,386 46,858 35,896 Western Europe 46,911 40,497 32,765 Russia & the CIS 16,124 10,133 11,054 Latin America 9,438 12,952 10,963 Rest of the World 20,027 17,439 15,650 Total $ 395,664 $ 374,401 $ 380,767 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. As at December 31 2019 2018 Property, plant and equipment United States $ 109,240 $ 97,843 Greater China 105,312 93,494 Canada 47,837 48,275 Western Europe 27,748 26,566 Asia (excluding Greater China) 9,948 8,084 Rest of the World 6,764 6,396 Total $ 306,849 $ 280,658 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 22. 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 accounts receivables and financing receivables are subject to credit risk. The Company’s accounts receivable and financing receivables are concentrated with the theater exhibition industry and film entertainment industry. To minimize the Company’s credit risk, the Company retains title to underlying theater systems leased, performs initial and ongoing credit evaluations of its customers and makes ongoing provisions for its estimate of potentially uncollectible amounts. The Company believes it has adequately provided for related exposures surrounding receivables and contractual commitments. (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 fair values due to the short-term maturity of these instruments. The Company’s other financial instruments at December 31, are comprised of the following: As at December 31, 2019 As at December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Level 1 Cash and cash equivalents (1) $ 109,484 109,484 $ 141,590 $ 141,590 Equity securities (3) 15,685 15,685 1,022 1,022 Level 2 Net financed sales receivables (2) $ 112,432 $ 111,441 $ 117,990 $ 117,428 Net investment in sales-type leases (2) 15,606 15,309 9,442 9,529 Convertible loan receivable (2) 1,500 1,500 1,500 1,500 Equity securities (1) 1,000 1,000 1,000 1,000 Foreign exchange contracts — (3) 530 530 (1,202 ) (1,202 ) Borrowings under the Credit Facility (1) (20,000 ) (20,000 ) (40,000 ) (40,000 ) (1) Recorded at cost, which approximates fair value. (2) Estimated based on discounting future cash flows at currently available interest rates with comparable terms. (3) Value determined using quoted prices in active markets. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. There were no transfers in or out of the Company’s Level 3 assets during the year ended December 31, 2019 and 2018. (c) Financing Receivables The Company’s net investment in leases and its net financed sale receivables are subject to the disclosure requirements of ASC 310 “Receivables”. Due to differing risk profiles of its net investment in leases and its net financed sales receivables, the Company views its net investment in leases and its net financed sale receivables as separate classes of financing receivables. The Company does not aggregate financing receivables to assess impairment. The Company monitors the credit quality of each customer on a frequent basis through collections and aging analyses. The Company also holds meetings monthly in order to identify credit concerns and whether a change in credit quality classification is required for the customer. A customer may improve in their credit quality classification once a substantial payment is made on overdue balances or the customer has agreed to a payment plan with the Company and payments have commenced in accordance to the payment plan. The change in credit quality indicator is dependent upon management approval. The Company classifies its customers into four categories to indicate the credit quality worthiness of its financing receivables for internal purposes only: Good standing — Theater continues to be in good standing with the Company as the client’s payments and reporting are up-to-date. Credit Watch — Theater operator has begun to demonstrate a delay in payments, and has been placed on the Company's credit watch list for continued monitoring, but active communication continues with the Company. Depending on the size of outstanding balance, length of time in arrears and other factors, transactions may need to be approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "Pre-approved transactions" category, but not in as good of condition as those receivables in "Good standing." Pre-approved transactions only — Theater operator is demonstrating a delay in payments with little or no communication with the Company. All service or shipments to the theater must be reviewed and approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "All transactions suspended" category, but not in as good of condition as those receivables in "Credit Watch." Depending on the individual facts and circumstances of each customer, finance income recognition may be suspended if management believes the receivable to be impaired. All transactions suspended — Theater is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater is classified as “All transactions suspended” the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. The following table discloses the recorded investment in financing receivables by credit quality indicator: As at December 31, 2019 As at December 31, 2018 Minimum Lease Payments Financed Sales Receivables Total Minimum Lease Payments Financed Sales Receivables Total In good standing $ 15,094 $ 102,450 $ 117,544 $ 8,701 $ 108,574 $ 117,275 Credit Watch 667 9,279 9,946 574 8,723 9,297 Pre-approved transactions — 830 830 322 565 887 Transactions suspended — 788 788 — 967 967 $ 15,761 $ 113,347 $ 129,108 $ 9,597 $ 118,829 $ 128,426 While recognition of finance income is suspended, payments received by 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. The Company’s investment in financing receivables on nonaccrual status is as follows: As at December 31, 2019 As at December 31, 2018 Recorded Investment Related Allowance Recorded Investment Related Allowance Net investment in leases $ — $ — $ — $ — Net financed sales receivables 788 (732 ) 967 (739 ) Total $ 788 $ (732 ) $ 967 $ (739 ) The Company considers financing receivables with aging between 60-89 days as indications of theaters with potential collection concerns. The Company will begin to focus its review on these financing receivables and increase its discussions internally and with the theater regarding payment status. Once a theater’s aging exceeds 90 days, the Company’s policy is to review and assess collectability on the theater’s past due accounts. Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of further information or supporting documentation to the customer. The Company’s aged financing receivables are as follows: As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Total Recorded Investment Related Allowances Recorded Investment Net of Allowances Net investment in leases $ 30 $ 68 $ 251 $ 349 $ 15,412 $ 15,761 $ (155 ) $ 15,606 Net financed sales receivables 1,678 2,772 5,446 9,896 103,451 113,347 (915 ) 112,432 Total $ 1,708 $ 2,840 $ 5,697 $ 10,245 $ 118,863 $ 129,108 $ (1,070 ) $ 128,038 As at December 31, 2018 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Total Recorded Investment Related Allowances Recorded Investment Net of Allowances Net investment in leases $ 52 $ 18 $ 253 $ 323 $ 9,274 $ 9,597 $ (155 ) $ 9,442 Net financed sales receivables 1,442 2,066 5,241 8,749 110,080 118,829 (839 ) 117,990 Total $ 1,494 $ 2,084 $ 5,494 $ 9,072 $ 119,354 $ 128,426 $ (994 ) $ 127,432 The Company’s recorded investment in financing receivables with billed amounts past due for which the Company continues to accrue finance income is as follows: As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Related Allowance Recorded Investment Past Due and Accruing Net investment in leases $ 9 $ 19 $ 251 $ 279 $ 578 $ — $ 857 Net financed sales receivables 1,146 1,290 5,523 7,959 29,173 — 37,132 Total $ 1,155 $ 1,309 $ 5,774 $ 8,238 $ 29,751 $ — $ 37,989 As at December 31, 2018 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Related Allowance Recorded Investment Past Due and Accruing Net investment in leases $ 28 $ 9 $ 246 $ 283 $ 1,523 $ — $ 1,806 Net financed sales receivables 558 1,472 5,860 7,890 31,507 — 39,397 Total $ 586 $ 1,481 $ 6,106 $ 8,173 $ 33,030 $ — $ 41,203 The Company considers financing receivables to be impaired when it believes it to be probable that it will not recover the full amount of principal or interest owing under the arrangement. The Company uses its knowledge of the industry and economic trends, as well as its prior experiences to determine the amount recoverable for impaired financing receivables. The following table discloses information regarding the Company’s impaired financing receivables: As at December 31, 2019 Recorded Investment Unpaid Principal Related Allowance Average Recorded Investment Interest Income Recognized Recorded investment for which there is a related allowance: Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables 708 80 (732 ) 818 — Recorded investment for which there is no related allowance: Net investment in leases — — — — — Net financed sales receivables — — — — — Total recorded investment in impaired loans Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables $ 708 $ 80 $ (732 ) $ 818 $ — As at December 31, 2018 Recorded Investment Unpaid Principal Related Allowance Average Recorded Investment Interest Income Recognized Recorded investment for which there is a related allowance: Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables 869 98 (739 ) 930 — Recorded investment for which there is no related allowance: Net investment in leases — — — — — Net financed sales receivables — — — — — Total recorded investment in impaired loans Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables $ 869 $ 98 $ (739 ) $ 930 $ — The Company’s activity in the allowance for credit losses for the period and the Company’s recorded investment in financing receivables is as follows: Year Ended December 31, 2019 Net Investment Net Financed in Leases Sales Receivables Allowance for credit losses Beginning balance $ 155 $ 839 Charge-offs — — Recoveries — — Provision — 76 Ending balance $ 155 $ 915 Ending balance: individually evaluated for impairment $ 155 $ 915 Financing receivables Ending balance: individually evaluated for impairment $ 15,761 $ 113,347 Year Ended December 31, 2018 Net Investment Net Financed in Leases Sales Receivables Allowance for credit losses Beginning balance $ 155 $ 922 Charge-offs — (183 ) Recoveries — — Provision — 100 Ending balance $ 155 $ 839 Ending balance: individually evaluated for impairment $ 155 $ 839 Financing receivables Ending balance: individually evaluated for impairment $ 9,597 $ 118,829 (d) Foreign Exchange Risk Management The Company is exposed to market risk from changes in foreign currency rates. A significant portion of the Company’s revenues is denominated in U.S. dollars while a substantial portion of its costs and expenses is denominated in Canadian dollars. A portion of the net U.S. dollar cash flows of the Company is periodically 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 Chinese Renminbi 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 Chinese Renminbi, 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 81 different countries, unfavourable exchange rates between applicable local currencies, and the U.S. dollar affect the Company’s reported gross box-office and revenues, further impacting the Company’s results of operations. The Company’s policy is to not use any financial instruments for trading or other speculative purposes. The Company entered into a series of foreign currency forward contracts to manage the Company’s 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 at December 31, 2019 (the “Foreign Currency Hedges”), with settlement dates throughout 2020 and 2021. Foreign currency derivatives are recognized and measured in the balance sheet at fair value. Changes in the fair value (gains or losses) are recognized in the consolidated statement of operations except for derivatives designated and qualifying as foreign currency hedging instruments. For foreign currency hedging instruments, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comprehensive income and reclassified to the consolidated statement of operations when the forecasted transaction occurs. The Company currently does not hold any derivatives which are not designated as hedging instruments and therefore no gain or loss pertaining to an ineffective portion has been recognized. 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 at December 31, 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 36,052 $ 50,828 Fair value of derivatives in foreign exchange contracts: As at December 31, Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 602 $ 649 Accrued and other liabilities $ (72 ) (1,851 ) $ 530 $ (1,202 ) Derivatives in Foreign Currency Hedging relationships are as follows: Years Ended December 31, 2019 2018 2017 Foreign exchange contracts - Forwards Derivative Gain (Loss) Recognized in OCI (Effective Portion) $ 552 $ (2,219 ) $ 2,545 $ 552 $ (2,219 ) $ 2,545 Location of Derivative (Loss) Gain Reclassified from AOCI Years Ended December 31, into Income (Effective Portion) 2019 2018 2017 Foreign exchange contracts - Forwards Selling, general and administrative expenses $ (1,109 ) $ 408 $ 824 Inventory (42 ) — — Property, plant and equipment (32 ) — — $ (1,183 ) $ 408 $ 824 Years Ended December 31, 2019 2018 2017 Foreign exchange contracts - Forwards Derivative (Loss) Gain Recognized In and Out of OCI (Effective Portion) $ (22 ) $ 21 $ — The Company's estimated net amount of the existing gains as at December 31, 2019 is $0.4 million, which is expected to be reclassified to earnings within the next twelve months. (e) Investments in New Business Ventures The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323 and the FASB ASC 320, as appropriate. As at December 31, 2019, the equity method of accounting is being utilized for investments with a total carrying value of $nil (December 31, 2018 — $nil). The Company’s accumulated losses in excess of its equity investment were $1.5 million as at December 31, 2019 (December 31, 2018 — $1.6 million) and are classified in Accrued and other liabilities. For the year ended December 31, 2019, gross revenues, cost of revenue and net loss for the investment were $2.0 million, $1.2 million and $1.5 million, respectively (2018 — $1.9 million, $3.0 million, and $1.8 million, respectively). The Company has determined it is not the primary beneficiary of this VIE, and therefore this entity has not been consolidated. In a prior year, the Company issued a convertible loan of $1.5 million to this entity with a term of 3 years with an annual effective interest rate of 5.0%. The instrument is classified as an available-for-sale investment due to certain features that allow for conversion to common stock in the entity in the event of certain triggers occurring. In addition, the Company has an investment in preferred stock of another business venture of $1.5 million which meets the criteria for classification as a debt security under the FASB ASC 320 and is recorded at a fair value of $nil at December 31, 2019 (December 31, 2018 — $nil). Furthermore, the Company has an investment of $1.0 million (December 31, 2018 — $1.0 million) in the shares of an exchange traded fund. This investment is classified as an equity investment. For the year ended December 31, 2019, the Company held investments with a total value of $3.5 million in the preferred shares of enterprises which meet the criteria for classification as an equity security under FASB ASC 325, carried at historical cost, net of impairment charges. The carrying value of these equity security investments was $1.0 million at December 31, 2019 (December 31, 2018 — $1.0 million). 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. This investment is classified as an equity security under the FASB ASC 321, with a readily determinable market value through the Hong Kong Stock Exchange. The changes in fair value are recorded in the Change in fair value of equity investment line item in the Company’s consolidated statement of operations. For the year ended December 31, 2019, the Company has recorded a net unrealized loss of $0.5 million. The total carrying value of investments in new business ventures at December 31, 2019 and 2018 is $2.5 million and $2.5 million, respectively, and is recorded in Other Assets. The investment in shares of an exchange traded fund and the investment in Maoyan are recorded in Investment in equity securities. |
Employees Pension and Postretir
Employees Pension and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employees Pension and Postretirement Benefits | 23. Employee's Pension and Postretirement Benefits (a) Defined Benefit Plan The Company has an unfunded U.S. defined benefit pension plan, the SERP, covering Richard L. Gelfond, Chief Executive Officer (“CEO”) of the Company. The SERP provides for a lifetime retirement benefit from age 55 determined as 75% of Mr. Gelfond’s best average 60 consecutive months of earnings over his employment history. The benefits were 50% vested as at July 2000, the SERP initiation date. The vesting percentage increased on a straight-line basis from inception until age 55. The benefits of Mr. Gelfond are 100% vested. Upon a termination for cause, prior to a change of control, Mr. Gelfond shall forfeit any and all benefits to which he may have been entitled, whether or not vested. Under the terms of the SERP, if Mr. Gelfond’s employment 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 dated November 1, 2019 to the existing employment agreement, the term of Mr. Gelfond’s employment was extended through December 31, 2022, although Mr. Gelfond has not informed the Company that he intends to retire at that time. Under the terms of the amendment to his employment agreement, the total amount of benefit payable to Mr. Gelfond under the SERP has been fixed at $ 20.3 million. The increase in SERP obligation under the amendment was accounted for as prior service costs arising the during the year and recognized in other comprehensive income. The prior service costs arising from the amendment are amortized over the remaining employment agreement term of 36 months on a straight-line basis. The amortization expenses of prior service costs are recorded within the retirement benefits non-service expense in the consolidated statements of operations. The following assumptions were used to determine the obligation and cost of the Company’s SERP at the plan measurement dates: As at December 31, 2019 2018 2017 Discount rate 2.00 % 3.14 % 2.22 % Lump sum interest rate: First 25 years 2.12 % — — First 20 years — 3.09 % 2.39 % Thereafter 2.26 % 2.84 % 2.60 % Cost of living adjustment on benefits 1.20 % 1.20 % 1.20 % The amounts accrued for the SERP are determined as follows: Years Ended December 31, 2019 2018 Obligation, beginning of period $ 17,977 $ 19,003 Prior service cost 456 — Interest cost 564 422 Actuarial gain (157 ) (1,448 ) Obligation, end of period and unfunded status $ 18,840 $ 17,977 The following table provides disclosure of the pension benefit obligation recorded in the consolidated balance sheets: As at December 31, 2019 2018 Accrued benefits cost $ (18,840 ) $ (17,977 ) Accumulated other comprehensive gain (988 ) (1,287 ) Net amount recognized in the consolidated balance sheets $ (19,828 ) $ (19,264 ) The following table provides disclosure of pension expense for the SERP for the years ended December 31: Years ended December 31, 2019 2018 2017 Interest cost $ 564 $ 422 $ 427 Pension expense $ 564 $ 422 $ 427 The accumulated benefit obligation for the SERP was $18.8 million at December 31, 2019 (2018 — $18.0 million). The following amounts were included in accumulated other comprehensive income and will be recognized as components of net periodic benefit cost in future periods: As at December 31, 2019 2018 2017 Unrealized actuarial (gain) loss $ (1,444 ) $ (1,287 ) $ 161 Unamortized prior service cost 456 — — Net periodic benefit costs to be recognized in future periods $ (988 ) $ (1,287 ) $ 161 No contributions were made for the SERP during 2019. The Company expects interest costs of $0.6 million to be recognized as a component of net periodic benefit cost in 2020. The following benefit payments are expected to be made as per the current SERP assumptions and the terms of the SERP in each of the next five years, and in the aggregate: 2020 $ — 2021 — 2022 — 2023 20,298 2024 — Thereafter — $ 20,298 (b) Defined Contribution Pension Plan The Company also maintains defined contribution pension 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 2019, the Company contributed and expensed an aggregate of $1.2 million (2018 — $1.2 million; 2017 — $1.2 million) to its Canadian plan and an aggregate of $0.6 million (2018 —$0.5 million; 2017 —$0.7 million) to its defined contribution employee pension plan under Section 401(k) of the U.S. Internal Revenue Code. (c) Postretirement Benefits - Executives The Company has an unfunded postretirement plan for Messrs. Gelfond and Bradley J. Wechsler, Chairman of the Company’s Board of Directors. The 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. The amounts accrued for the plan are determined as follows: As at December 31, 2019 2018 Obligation, beginning of year $ 639 $ 698 Interest cost 26 24 Benefits paid — (24 ) Actuarial gain — (59 ) Obligation, end of year $ 665 $ 639 The following details the net cost components, all related to continuing operations, and underlying assumptions of postretirement benefits other than pensions: Years Ended December 31, 2019 2018 2017 Interest cost $ 26 $ 24 $ 26 Pension expense $ 26 $ 24 $ 26 The following amounts were included in accumulated other comprehensive income and will be recognized as components of net periodic benefit cost in future periods: As at December 31, 2019 2018 2017 Unrealized actuarial (gain) loss $ (50 ) $ (50 ) $ 9 Weighted average assumptions used to determine the benefit obligation are: As at December 31, 2019 2018 2017 Discount rate 3.13 % 4.15 % 3.55 % Weighted average assumption used to determine the net postretirement benefit expense are: Years Ended December 31, 2019 2018 2017 Discount rate 4.15 % 3.55 % 4.10 % The following benefit payments are expected to be made as per the current plan assumptions in each of the next five years: 2020 $ 8 2021 9 2022 9 2023 19 2024 20 Thereafter 600 Total $ 665 (d) Postretirement Benefits – Canadian Employees The Company has an unfunded postretirement plan for its Canadian employees upon meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. The amounts accrued for the plan are determined as follows: As at December 31, 2019 2018 Obligation, beginning of year $ 1,487 $ 1,678 Interest cost 49 53 Benefits paid (108 ) (104 ) Actuarial loss (gain) 153 (26 ) Unrealized foreign exchange (gain) loss 0 (114 ) Obligation, end of year $ 1,581 $ 1,487 The following details the net cost components, all related to continuing operations, and underlying assumptions of postretirement benefits other than pensions: Years Ended December 31, 2019 2018 2017 Interest cost $ 49 $ 53 $ 65 Pension expense $ 49 $ 53 $ 65 The following amounts were included in accumulated other comprehensive income and will be recognized as components of net periodic benefit cost in future periods: As at December 31, 2019 2018 2017 Unrealized actuarial loss $ 309 $ 156 $ 182 The Company expects interest costs of less than $0.1 million Weighted average assumptions used to determine the benefit obligation are: As at December 31, 2019 2018 2017 Discount rate 3.05 % 3.35 % 3.35 % Weighted average assumptions used to determine the net postretirement benefit expense are: Years Ended December 31, 2019 2018 2017 Discount rate 3.80 % 3.35 % 3.65 % The following benefit payments are expected to be made as per the current plan assumptions in each of the next five years: 2020 $ 100 2021 105 2022 104 2023 104 2024 103 Thereafter 1,065 Total $ 1,581 (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 his agreement with the Company, the plan will vest in full if he incurs a separation of service (as defined therein). In the fourth quarter of 2018, he incurred a separation from service, and as such, his Retirement Plan benefits became fully vested in 2018 and the accelerated costs were recognized and reflected in the executive transition costs line on the consolidated statement of operations. As at December 31, 2019, the Company had a funded benefit obligation recorded of $3.6 million (December 31, 2018 — unfunded benefit obligation of $3.6 million). Subsequent to year end, the retirement benefit obligation was fully funded. During 2018, the Company expensed an aggregate of $2.6 million (2017 — $0.5 million), of which $0.7 million was recorded in selling, general and administrative expenses as it relates to service performed in 2018, the remaining $1.9 million is recorded in executive transition costs. The Company did not recognize any additional expenses in the year ended December 31, 2019. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Non-Controlling Interests | 24. Non-Controlling Interests (a) IMAX China Non-Controlling Interest The Company indirectly owns approximately 69.74% of IMAX China, whose shares trade on the Hong Kong Stock Exchange. IMAX China remains a consolidated subsidiary of the Company. The balance of non-controlling interest in IMAX China as at December 31, 2019 is $89.5 million. The net income attributable to non-controlling interest in IMAX China for the year ended December 31, 2019 is $13.3 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 to 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. The Company sees the Original Film Fund as a vehicle designed to generate a continuous, steady flow of high-quality documentary content. As at December 31, 2019, the Original Film Fund 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. The Company also established its VR Fund among the Company, its subsidiary IMAX China and other strategic investors to help finance the creation of interactive VR content experiences for use across all VR platforms, including in the pilot IMAX VR Centers. The VR Fund helped finance the production of one interactive VR experience, which debuted exclusively in the pilot IMAX VR Centers in November 2017 before being made available to other VR platforms. As at December 31, 2018, the Company invested $4.0 million toward the development of VR content. In December 2018, the Company announced, in connection with its strategic review of its VR pilot initiative, that it had decided to close its remaining VR locations and write-off certain VR content investments. Subsequent to year end, the Company has also decided dissolve the VR Fund and not actively pursue any additional VR opportunities at this time The following summarizes the movement of the non-controlling interest in temporary equity, in the Company’s subsidiary for the years ended December 31, 2019, 2018 and 2017. Balance as at January 1, 2017 $ 4,980 Net loss (3,627 ) Balance as at December 31, 2017 $ 1,353 Issuance of subsidiary shares to non-controlling interests 7,796 Net loss (2,710 ) Balance as at December 31, 2018 $ 6,439 Return of capital to non-controlling interests (243 ) Share issuance costs from the issuance of subsidiary shares to a non-controlling interest 1,350 Net loss (1,638 ) Balance as at December 31, 2019 $ 5,908 |
Executive Transition Costs
Executive Transition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Executive Transition Costs | 25. Executive Transition Costs In 2018, the Company recognized executive transition costs of $3.0 million associated with the separation of the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. The costs include $1.9 million of accelerated costs related to retirement benefits which became vested in full. Additional expenses of $1.1 million have been recorded for severance, bonus and stock-based compensation which relate to the exit of the executive and other executives. No such charges were incurred in the year ended December 31, 2019. |
Exit Costs, Restructuring Charg
Exit Costs, Restructuring Charges and Associated Impairments | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Exit Costs, Restructuring Charges and Associated Impairments | 26. Exit Costs, Restructuring Charges and Associated Impairments The Company recognized the following charges in its consolidated statements of operations for the year ended December 31: 2019 2018 2017 Restructuring charges $ 628 $ 2,405 $ 9,895 Asset impairments — 6,432 5,553 Costs to exit lease and restore facilities 222 619 726 Other — 86 — $ 850 $ 9,542 $ 16,174 (a) Costs to exit an operating lease In December 2018, the Company announced that it would be closing all remaining VR locations. As the premises lease was non-cancellable until the end of the term and pursuant to FASB ASC 420 “Exit or Disposal Cost Obligations”, the Company recognized a new business segment expense of $0.2 million and $0.6 million for the years ended December 31, 2019 and December 31, 2018, respectively. In September 2017, the Company relocated its New York office employees and operations as the existing leased space was not suitable to accommodate all current business needs. As the premises lease is non-cancellable to the end of the term, the Company entered into a sublease arrangement to reduce the expected losses over the remaining term of the lease. Pursuant to FASB ASC 420 “Exit or Disposal Cost Obligations”, the Company recognized a corporate segment expense of $0.7 million for the year ended December 31, 2017. (b) Restructuring charges Restructuring charges are comprised of employee severance costs including benefits and stock-based compensation, costs of consolidating facilities and contract termination costs. Restructuring charges are based upon plans that have been committed to by the Company but may be refined in subsequent periods. These charges are recognized pursuant to FASB ASC 420. A liability for a cost associated with an exit or disposal activity is recognized and measured at its fair value in the consolidated statement of operations in the period in which the liability is incurred. When estimating the value of facility restructuring activities, assumptions are applied regarding estimated sub-lease payments to be received, which can differ from actual results. In December 2018, the Company performed a strategic review of its virtual reality pilot initiative and has decided to close its remaining VR locations. In addition, as part of the Company’s ongoing efforts to decrease costs, the Company has reduced certain functions and has realigned resources. In June 2017, the Company implemented a cost reduction plan with the goal of increasing profitability, operating leverage and free cash flow. The cost reduction plan included the exit from certain non-core businesses or initiatives, as well as a one-time reduction in workforce. In connection with the Company’s restructuring initiatives, the Company incurred $0.6 million (2018 — $2.4 million, 2017 — $9.9 million) in restructuring charges for the year ended December 31, 2019. A summary of the restructuring costs by reporting groups identified by nature of product sold, or service provided as disclosed in note 21 recognized during the year ended December 31 are as follows: 2019 2018 2017 Corporate $ 628 $ 1,529 $ 5,369 New business — 611 1,699 Other — 215 930 IMAX DMR — 50 662 Theater system maintenance — — 546 IMAX systems — — 120 Joint revenue sharing arrangements — — 21 Film post-production — — 548 $ 628 $ 2,405 $ 9,895 The following table sets forth a summary of restructuring accrual activities for the year ended December 31: Employee Severance and Benefits Balance as at December 31, 2017 $ 2,221 Restructuring charges 2,405 Cash payments (2,690 ) Balance as at December 31, 2018 $ 1,936 Restructuring charges 628 Cash payments (2,211 ) Balance as at December 31, 2019 $ 353 (c) Associated Impairments As a result of the cost reduction plan discussed above, the Company recognized costs associated with the retirement of certain long-lived assets pursuant to the FASB ASC 410-20, “Asset retirement and environmental obligations” and ASC 360-10, “Property, plant and equipment”. The following impairments for the years ended December 31, 2019, 2018 and 2017 are a direct result of the exit activities described in (a) above. 2019 2018 2017 Property, plant and equipment $ — $ 3,680 $ 3,696 Other assets — 2,565 1,522 Prepaid expenses — 121 — Intangible assets — 66 — Film assets — — 335 $ — $ 6,432 $ 5,553 In the year ended December 31, 2019, the Company did not recognize any exit costs or associated impairments. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | 27. Selected Quarterly Financial Information (Unaudited) (in thousands of U.S. dollars, except per share amounts) 2019 Q1 Q2 Q3 Q4 Revenues $ 80,198 $ 104,797 $ 86,390 $ 124,279 Costs and expenses applicable to revenues 35,058 45,244 39,270 61,920 Gross margin $ 45,140 $ 59,553 $ 47,120 $ 62,359 Net income $ 12,487 $ 13,836 $ 10,896 $ 21,352 Net income attributable to common shareholders $ 8,265 $ 11,397 $ 9,033 $ 18,171 Net income per share attributable to common shareholders: Net income per share - basic & diluted $ 0.13 $ 0.19 $ 0.15 $ 0.29 2018 Q1 Q2 Q3 Q4 Revenues $ 84,984 $ 98,345 $ 82,108 $ 108,964 Costs and expenses applicable to revenues 34,292 37,941 39,917 54,322 Gross margin $ 50,692 $ 60,404 $ 42,191 $ 54,642 Net income $ 12,067 $ 10,255 $ 7,502 $ 3,771 Net income attributable to common shareholders $ 8,505 $ 7,625 $ 5,020 $ 1,694 Net income per share attributable to common shareholders: Net income per share - basic & diluted $ 0.13 $ 0.12 $ 0.08 $ 0.03 |
Prior Period's Figures
Prior Period's Figures | 12 Months Ended |
Dec. 31, 2019 | |
Prior Period Adjustment [Abstract] | |
Prior Period's Figures | 28. Prior Period's Figures In the current year, the Company reclassified certain amounts from “Other Assets” on the consolidated balance sheet. Variable consideration receivable from contracts and Investment in equity securities are presented as separate lines on the consolidated balance sheet as at December 31, 2019 and 2018. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 29. Subsequent event Subsequent to December 31, 2019, in response to the public health risks associated with an outbreak of coronavirus in Wuhan, China, Chinese exhibitors temporarily closed more than 70,000 movie theaters, including all of the approximately 700 IMAX theaters in mainland China. The theaters have been closed since late January 2020, including over the Lunar New Year holiday, and have not yet reopened as of the date of this report. Chinese movie studios also postponed the release of multiple films, including those originally scheduled to be released over this holiday, five of which were scheduled to be shown in IMAX theaters. The repercussions of this health crisis in China will have a material adverse impact on the revenues generated by IMAX theatre systems in the first quarter of 2020 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | IMAX CORPORATION Schedule II Valuation and Qualifying Accounts (In thousands of U.S. dollars) Balance at beginning of year Additions/ (recoveries) charged to expenses Other additions/ (deductions) (1) Balance at end of year Allowance for net investment in leases Year ended December 31, 2017 $ 672 $ (517 ) $ — $ 155 Year ended December 31, 2018 $ 155 $ — $ — $ 155 Year ended December 31, 2019 $ 155 $ — $ — $ 155 Allowance for financed sale receivables Year ended December 31, 2017 $ 494 $ 428 $ — $ 922 Year ended December 31, 2018 $ 922 $ (83 ) $ — $ 839 Year ended December 31, 2019 $ 839 $ 76 $ — $ 915 Allowance for doubtful accounts receivable Year ended December 31, 2017 $ 1,250 $ 1,967 $ (1,604 ) $ 1,613 Year ended December 31, 2018 $ 1,613 $ 3,030 $ (1,469 ) $ 3,174 Year ended December 31, 2019 $ 3,174 $ 2,354 $ (390 ) $ 5,138 Inventories valuation allowance Year ended December 31, 2017 $ 3,342 $ 500 $ 44 $ 3,886 Year ended December 31, 2018 $ 3,886 $ 250 $ (251 ) $ 3,885 Year ended December 31, 2019 $ 3,885 $ 446 $ (1,115 ) $ 3,216 Deferred income tax valuation allowance Year ended December 31, 2017 $ 197 $ — $ — $ 197 Year ended December 31, 2018 $ 197 $ — $ — $ 197 Year ended December 31, 2019 $ 197 $ — $ — $ 197 (1) Deductions represent write-offs of amounts previously charged to the provision. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable interest entities | (a) Basis of Consolidation The consolidated financial statements include the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which the Company has identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. The Company has evaluated its various variable interests to determine whether they are VIEs as required by the Consolidation Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”). The Company has ten film and content related companies that are VIEs. For five of the Company’s film production companies, the Company has determined that it is the primary beneficiary of these entities as the Company has the power to direct the activities of the respective VIE that most significantly impact the respective VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be significant to the respective VIE or the right to receive benefits from the respective VIE that could potentially be significant to the respective VIE. The majority of these consolidated assets are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in note 24(b). For the other five film production companies which are VIEs, the Company did not consolidate these film entities since it does not have the power to direct activities and does not absorb the majority of the expected losses or expected residual returns. The Company equity accounts for these entities. A loss in value of an investment other than a temporary decline is recognized as a charge to the consolidated statements of operations. Total assets and liabilities of the Company's consolidated VIEs are as follows: December 31, December 31, 2019 2018 Total assets $ 9,677 $ 12,203 Total liabilities $ 15,528 $ 11,573 Total assets and liabilities of the VIE entities which the Company does not consolidate are as follows: December 31, December 31, 2019 2018 Total assets $ 448 $ 447 Total liabilities $ 372 $ 362 The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323 “Investments – Equity Method and Joint Ventures” (“ASC 323”) and ASC 320 “Investments in Debt and Equity Securities” (“ASC 320”), as appropriate. All intercompany accounts and transactions, including all unrealized intercompany profits on transactions with equity-accounted investees, have been eliminated. |
Use of Estimates | (b) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could be materially different from these estimates. Significant estimates made by management include, but are not limited to: estimated transaction price related to distinct performance obligations; economic lives of joint revenue sharing equipment; allowances for potential uncollectability of accounts receivable, financing receivables and net investment in leases; provisions for inventory obsolescence; ultimate revenues for film assets; impairment provisions for film assets, long-lived assets and goodwill; depreciable lives of property, plant and equipment and right-of-use assets; discount rates of lease liabilities; useful lives of intangible assets; pension plan assumptions; accruals for contingencies including uncertain tax positions; valuation allowances for deferred income tax assets; and, estimates of the fair value of stock-based payment awards. |
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 to the Company of three months or less to be cash equivalents. |
Accounts Receivables Allowance for Doubtful Accounts | (d) Accounts Receivable and Financing Receivables Allowances for doubtful accounts receivable are based on the Company’s assessment of the collectability of specific customer balances, which is based upon a review of the customer’s credit worthiness, past collection history and the underlying asset value of the equipment, where applicable. Interest on overdue accounts receivable is recognized as income as the amounts are collected. For trade accounts receivable that have characteristics of both a contractual maturity of one year or less, and arose from the sale of other goods or services, the Company charges off the balance against the allowance for doubtful accounts when it is known that a provided amount will not be collected. |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts | The Company monitors the performance of the theaters to which it has leased or sold theater systems which are subject to ongoing payments. When facts and circumstances indicate that there is a potential impairment in the net investment in lease or a financing receivable, the Company will evaluate the potential outcome of either a renegotiation involving changes in the terms of the receivable or defaults on the existing lease or financed sale agreements. The Company will record a provision if it is considered probable that the Company will be unable to collect all amounts due under the contractual terms of the arrangement or a renegotiated lease amount will cause a reclassification of the sales-type lease to an operating lease. |
Condition for Company's policy to review and assess collectability on theater's past due accounts | When the net investment in lease or the financing receivable is impaired, the Company will recognize a provision for the difference between the carrying value in the investment and the present value of expected future cash flows discounted using the effective interest rate for the net investment in the lease or the financing receivable. If the Company expects to recover the theater system, the provision is equal to the excess of the carrying value of the investment over the fair value of the equipment. When the minimum lease payments are renegotiated and the lease continues to be classified as a sales-type lease, the reduction in payments is applied to reduce unearned finance income. These provisions are adjusted when there is a significant change in the amount or timing of the expected future cash flows or when actual cash flows differ from cash flow previously expected. Once a net investment in lease or financing receivable is considered impaired, the Company does not recognize finance income until the collectability issues are resolved. When finance income is not recognized, any payments received are applied against outstanding gross minimum lease amounts receivable or gross receivables from financed sales. Once the collectability issues are resolved, the Company will once again commence the recognition of interest income. |
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 include the cost of raw materials, direct labor, theater design costs, and an applicable share of manufacturing overhead costs. The costs related to theater systems under sales and sales-type lease arrangements are relieved from inventory to costs and expenses applicable to revenues-equipment and product sales when revenue recognition criteria are met. The costs related to theater systems under operating lease arrangements and joint revenue sharing arrangements are transferred from inventory to assets under construction in property, plant and equipment when allocated to a signed joint revenue sharing arrangement or when the arrangement is first classified as an operating lease. The Company records provisions for excess and obsolete inventory based upon current estimates of future events and conditions, including the anticipated installation dates for the current backlog of theater system contracts, technological developments, signings in negotiation, growth prospects within the customers’ ultimate marketplace and anticipated market acceptance of the Company’s current and pending theater systems. Finished goods inventories can contain theater systems for which title has passed to the Company’s customer (as the theater system has been delivered to the customer) but the revenue recognition criteria as discussed in note 2(n) have not been met. |
Film Assets | (f) Film Assets Costs of producing films, including labor, allocated overhead, capitalized interest, and costs of acquiring film rights are recorded as film assets and accounted for in accordance with Entertainment-Films Topic of the FASB ASC. Production financing provided by third parties that acquire substantive rights in the film is recorded as a reduction of the cost of the production. Film assets are amortized and participation costs are accrued using the individual-film-forecast method in the same ratio that current gross revenues bear to current and anticipated future ultimate revenues. 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 for films include estimates of revenue over a period not to exceed ten years following the date of initial release. Film exploitation costs, including advertising costs, are expensed as incurred. Costs, including labor and allocated overhead, of digitally re-mastering films where the copyright is owned by a third party and the Company shares in the revenue of the third party are included in film assets. These costs are amortized using the individual-film-forecast method in the same ratio that current gross revenues bear to current and anticipated future ultimate revenues from the re-mastered film. The recoverability of film assets is dependent upon commercial acceptance of the films. If events or circumstances indicate that the recoverable amount of a film asset is less than the unamortized film costs, the film asset is written down to its fair value. The Company determines the fair value of its film assets using a discounted cash flow model. |
Property, Plant and Equipment | (g) Property, Plant and Equipment Property, plant and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives as follows: Theater system components (1) — over the equipment’s anticipated useful life (7 to 20 years) Camera equipment — 5 to 10 years Buildings — 20 to 25 years Office and product equipment — 3 to 5 years Leasehold improvements — over the shorter of the initial term of the underlying leases plus any reasonably assured renewal terms, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. Equipment and components allocated to be used in future operating leases and joint revenue sharing arrangements, as well as direct labor costs and an allocation of direct production costs, are included in assets under construction until such equipment is installed and in working condition, at which time the equipment is depreciated on a straight-line basis over the lesser of the term of the joint revenue sharing arrangement and the equipment’s anticipated useful life. The estimated useful life is periodically reviewed for the equipment and components used in joint revenue sharing arrangements to determine if any adjustments need to be made to the current amortization. The Company reviews the carrying values of its property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent when testing for, and measuring for, impairment. In performing its review of recoverability, the Company estimates the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset or asset group, an impairment loss is recognized in the consolidated statements of operations. Measurement of the impairment loss is based on the excess of the carrying amount of the asset or asset group over the fair value calculated using discounted expected future cash flows. A liability for the fair value of an asset retirement obligation associated with the retirement of tangible long-lived assets and the associated asset retirement costs are recognized in the period in which the liability and costs are incurred if a reasonable estimate of fair value can be made using a discounted cash flow model. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and subsequently amortized over the asset’s useful life. The liability is accreted over the period to expected cash outflows. |
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 the change in fair value of equity securities in the consolidated statements of operations. |
Other Assets | (i) Other Assets Other assets include lease incentives, deferred selling costs that are direct and incremental to the acquisition of sales contracts, various investments, insurance recoverable and foreign currency derivatives. When no amounts have been drawn down on the related debt instrument, the costs of debt financing are deferred and amortized over the term of the debt using the effective interest rate method. When amounts are drawn on the debt instrument, the deferred financing fees are reclassified to net against the outstanding debt amount and amortized over the life of the debt instrument and recognized in interest expense. Selling costs related to an arrangement incurred prior to recognition of the related revenue are deferred and expensed to costs and expenses applicable to revenues upon: (i) recognition of the contract’s theater system revenue; or (ii) abandonment of the sale arrangement. Foreign currency derivatives are accounted for at fair value using quoted prices in closed exchanges (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy). The Company may provide lease incentives to certain exhibitors which are essential to entering into the respective lease arrangement. Lease incentives include payments made to or on behalf of the exhibitor. These lease incentives are recognized as a reduction in rental revenue on a straight-line basis over the term of the lease. Investments in new business ventures are accounted for using ASC 323 as described in note 2(a). The Company currently accounts for its joint venture investment with TCL Multimedia Technology Holdings Limited (“TCL”), using the equity method of accounting. The Company accounts for in-kind contributions to its equity investment in accordance with ASC 845 “Non-Monetary Transactions” (“ASC 845”) whereby if the fair value of the asset or assets contributed is greater than the carrying value a partial gain shall be recognized. The Company’s investment in debt securities is classified as an available-for-sale investment in accordance with ASC 320. Unrealized holding gains and losses for this investment is excluded from earnings and reported in other comprehensive income until realized. Realization occurs upon sale of a portion of or the entire investment. The investment is impaired if the fair value is less than cost, which is assessed in each reporting period. When the Company intends to sell a specifically identified beneficial interest, a write-down for other-than-temporary impairment shall be recognized in earnings. The Company’s investment in preferred shares, which meets the criteria for classification as an equity security in accordance with ASC 325, is accounted for at cost. The Company records the related warrants at fair value upon recognition date. Warrants are recognized over the term of the agreement. |
Goodwill | (j) Goodwill Goodwill represents the excess of purchase price over the fair value of net identifiable assets acquired in a purchase business combination. Goodwill is not subject to amortization and is tested for impairment annually (on September 30 th |
Other Intangible Assets | (k) Other Intangible Assets Patents, trademarks and other intangibles are recorded at cost and are amortized on a straight-line basis over estimated useful lives ranging from 4 to 10 years except for intangible assets that have an identifiable pattern of consumption of the economic benefit of the asset, which are amortized over the consumption pattern. The Company reviews the carrying values of its other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group might not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent when testing for, and measuring for, impairment. In performing its review for recoverability, the Company estimates the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset or asset group, an impairment loss is recognized in the consolidated statement of operations. Measurement of the impairment loss is based on the excess of the carrying amount of the asset or asset group over the fair value calculated using discounted expected future cash flows. |
Deferred Revenue | (l) Deferred Revenue Deferred revenue represents cash received prior to revenue recognition criteria being met for theater system sales or leases, film contracts, maintenance and extended warranty services, film related services and film distribution. |
Income Taxes | (m) 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 consolidated statement of operations in the period in which the change is enacted. Investment tax credits are recognized as a reduction of income tax expense. The Company assesses 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. The Company is subject to ongoing tax exposures, examinations and assessments in various jurisdictions. The Company follows the provisions of ASC 740-10-25 that provide a recognition threshold and measurement criteria for the financial statement recognition of a tax benefit taken in a tax return. 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 realised 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 we believe we have adequately accounted for our uncertain tax positions, tax audits can result in subsequent assessments where the ultimate resolution may result in us owing additional taxes above what was provided for. 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 | (n) Revenue Recognition Contracts with Multiple Performance Obligations The Company’s revenue arrangements with certain customers may involve performance obligations consisting of the delivery of a theater system (projector, sound system, screen system and, if applicable, 3D glasses cleaning machine); services associated with the theater system including theater design support, supervision of installation, and projectionist training; a license to use the IMAX brand; 3D glasses; maintenance and extended warranty services; and licensing of films. The Company evaluates all of the performance obligations in an arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate units of accounting based on the applicable accounting guidance in ASC Topic 842 “Leases”; ASC Topic 460 “Guarantees”; and ASC Topic 606 “Revenue from Contracts with Customers”. If separate units of accounting are either required under the relevant accounting standards or determined to be applicable under the Revenue Recognition Topic, the total transaction price received or receivable in the arrangement is allocated based on the applicable guidance in the above noted standards. Theater Systems The Company has identified the projection system, sound system, screen system and, if applicable, 3D glasses cleaning machine, theater design support, supervision of installation, projectionist training and the use of the IMAX brand to be, as a group, a distinct performance obligation, and a single unit of accounting (the “System Obligation”). When an arrangement does not include all the performance obligations of a System Obligation, the performance obligations of the System Obligation included in the arrangement are considered by the Company to be a grouped distinct performance obligation and a single unit of accounting. The Company is not responsible for the physical installation of the equipment in the customer’s facility; however, the Company 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. The Company’s System Obligation arrangements involve either a lease or a sale of the theater system. The transaction price for the System Obligation, other than for those delivered pursuant to joint revenue sharing arrangements, consist of upfront or initial payments made before and after the final installation of the theater system equipment and ongoing payments throughout the term of the lease or over a period of time, as specified in the arrangement. The ongoing payments are the greater of an annual fixed minimum amount or a certain percentage of the theater box-office. Amounts received in excess of the annual fixed minimum amounts are considered contingent payments. The Company’s 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. Transaction price is allocated to each s eparate performance obligation for each good or service based on estimated standalone selling prices. The Company uses observable prices when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. Standalone prices are established for the Company’s System Obligation, maintenance and extended warranty services and 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 price. The Company considers multiple factors including the Company’s historical pricing practices, product class, market competition and geography. Sales Arrangements For arrangements qualifying as sales, the revenue allocated to the System Obligation is recognized in accordance with the Revenue Recognition Topic of the FASB ASC, when all of the following conditions signifying transfer of control 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) 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) public opening of the theater. The initial revenue recognized consists of the initial payments received and the present value of any future initial payments, fixed minimum ongoing payments and an estimate of future variable consideration (future CPI and additional payments in excess of the minimums in the case of full sale arrangements or a percentage of ongoing box office in the case of hybrid sales arrangements) that have been attributed to this performance obligation. The Company has also agreed, on occasion, to sell equipment under lease or at the end of a lease term. Transaction price agreed to for these lease buyouts is included in revenues from equipment and product 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. |
Revenue Recognition Leases | Lease Arrangements As a lessor, for lease arrangements, the Company determines the classification of the lease in accordance with ASC Topic 842. The Company adopted ASC Topic 842 as of January 1, 2019, which with respect to lessor arrangements is consistent with ASC 840, which was applied in prior periods. A lease arrangement that transfers substantially all of the benefits and risks incident to ownership of the equipment is classified as a sales-type lease based on the criteria established by the accounting standard; otherwise the lease is classified as an operating lease. Prior to commencement of the lease term for the equipment, 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) 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) 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 operating leases, initial payments and fixed minimum ongoing payments are recognized as revenue on a straight-line basis over the lease term. For operating 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 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) 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) 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. Revenues from joint revenue sharing arrangements with upfront payments that qualify for classification as sales-type leases are recognized in accordance with the sales and sales-type lease criteria discussed above. Contingent revenues from joint revenue sharing arrangements are recognized as box-office results and concessions revenues are reported by the theater operator, provided collectability is reasonably assured. |
Revenue Recognition Finance Income | Finance Income Finance income, which includes the accretion of variable consideration under ASC Topic 606, is recognized over the term of the sales-type lease or financed sales receivable, provided collectability is reasonably assured. Finance income recognition ceases when the Company determines that the associated receivable is not collectible. Finance income is suspended when the Company identifies a theater that is delinquent, non-responsive or not negotiating in good faith with the Company. Once the collectability issues are resolved the Company will resume recognition of finance income. |
Improvements and Modifications | Improvements and Modifications Improvements and modifications to the theater system after installation are treated as separate performance obligations, if and when the Company is requested to perform these services. Revenue is recognized for these services once they have been provided. |
Cost of Equipment and Product Sales | Cost of Equipment and Product Sales Theater systems and other equipment subject to sales-type leases and sales arrangements includes the cost of the equipment and costs related to project management, design, delivery and installation supervision services as applicable. The costs related to theater systems under sales and sales-type lease arrangements are relieved from inventory to costs and expenses applicable to revenues-equipment and product sales when revenue recognition criteria are met. In addition, the Company defers direct selling costs such as sales commissions and other amounts related to these contracts until the related revenue is recognized. These costs included in costs and expenses applicable to revenues-equipment and product sales, totaled $2.0 million in 2019 (2018 — $2.0 million; 2017 — $2.7 million). The cost of equipment and product sales prior to direct selling costs was $63.6 million in 2019 (2018 — $52.9 million; 2017 — $45.5 million). The Company may have warranty obligations at or after the time revenue is recognized which require 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-equipment and product sales at the time revenue is recognized based on the Company’s past historical experience and cost estimates. |
Cost of Rentals | Cost of Rentals For theater systems and other equipment subject to an operating lease or placed in a theater operators’ venue under a joint revenue sharing arrangement, the cost of equipment and those costs that result directly from and are essential to the arrangement, is included within property, plant and equipment. Depreciation and impairment losses, if any, are included in cost of rentals based on the accounting policy set out in note 2(g). After the adoption of ASC Topic 606, commissions continue to be deferred and recognized as costs and expenses applicable to revenues-rentals in the month they are earned, which is typically the month of installation. These costs totaled $0.4 million in 2019 (2018 — $0.9 million; 2017 — $1.6 million). Direct advertising and marketing costs for each theater are charged to costs and expenses applicable to revenues-rentals as incurred. These costs totaled $3.0 million in 2019 (2018 — $2.1 million; 2017 — $2.6 million). |
Terminations, Consensual Buyouts and Concessions | Terminations, Consensual Buyouts and Concessions The Company enters into theater system arrangements with customers that contain customer payment obligations prior to the scheduled installation of the theater system. During the period of time between signing and the installation of the theater system, which may extend several years, certain customers may be unable to, or may elect not to, proceed with the theater 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 could agree with customers to convert their obligations for other theater system configurations that have not yet been installed to arrangements to acquire or lease the IMAX digital theater system. The Company considers these situations to be a termination of the previous arrangement and origination of a new arrangement for the IMAX digital theater system. The Company may offer certain incentives to customers to complete theater 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 in accordance with the Leases or Interests Topic of the FASB ASC. Free products and services are accounted for as separate units of accounting. Other consideration given by the Company to customers are accounted for in accordance with ASC Topic 606 “Revenue from Contracts with Customers”. |
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 in Services revenues. Maintenance and extended warranty services includes 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 contracts 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 | Film Production and IMAX DMR 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 to retain as a fee the excess of funding over cost of production (the “production fee”). The third parties receive a portion of the revenues received by the Company from distributing the film, which is charged to costs and expenses applicable to revenues-services. The 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 totaled $22.5 million in 2019 (2018 — $16.5 million; 2017 — $15.4 million) and are recorded in costs and expenses applicable to revenues-services as incurred. Revenue from film production services where the Company does not hold the associated distribution rights are recognized in Services revenues when performance obligations associated with the contractual service are satisfied. Revenues from digitally re-mastering (IMAX DMR) films where third parties own or hold the copyrights and the rights to distribute the film are derived in the form of processing fees and recoupments calculated as a percentage of box-office receipts generated from the re-mastered films. Processing fees are recognized as Services revenues when the performance obligations of the related re-mastering service are satisfied. Recoupments, calculated as a percentage of box-office receipts, are recognized as Services revenue when box-office receipts are reported by the third party that owns or holds the related film rights. Losses on film production and IMAX DMR services are recognized as costs and expenses applicable to revenues-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 and the cost of IMAX DMR services. Film Distribution Revenue from the licensing of films is recognized in Services revenues when all performance obligations have been satisfied, which includes the completion and delivery of the film and the commencement of the license period. When license fees are based on a percentage of box-office receipts, revenue is recognized when box-office receipts are reported by exhibitors. Film exploitation costs, including advertising and marketing, totaled an expense of $0.4 million in 2019 (2018 — an expense of $2.2 million; 2017 — a recovery of $0.7 million) and are recorded in costs and expenses applicable to revenues-services as incurred. Film Post-Production Services Revenues from post-production film services are recognized in Services revenues when performance of the contracted services are satisfied. |
Other Revenue | Other The Company recognizes revenue in Services revenues from its owned and operated theaters resulting from box-office ticket and concession sales as tickets are sold, films are shown and upon the sale of various concessions. The sales are cash or credit card transactions with theater goers based on fixed prices per seat or per concession item. In addition, the Company enters into commercial arrangements with third party theater owners resulting in the sharing of profits and losses which are recognized in Services revenues when reported by such theaters. The Company also provides management services to certain theaters and recognizes revenue over the term of such services. Revenues on camera rentals are recognized in Rental revenues over the rental period. Revenue from the sale of 3D glasses is recognized in Equipment and product sales revenue when the 3D glasses have been delivered to the customer. Other service revenues are recognized in Service revenues when the performance of contracted services is complete. |
Leases | (o) Leases The Company adopted ASC Topic 842 on January 1, 2019 (see note 4), utilizing the modified retrospective transition method, which allowed the Company to adopt the standard as of the date of initial application. Prior year comparative amounts are not required to be restated and are presented in accordance with ASC Topic 840, “Leases” or other applicable standards prior to January 1, 2019. For the year ended December 31, 2019, the Company uses ASC Topic 842 to evaluate whether an arrangement is a lease within the scope of the accounting standard. Transactions accounted for under ASC Topic 842 are not within the scope of ASC Topic 606. Arrangements not within the scope of the accounting standard are accounted for either as a sales or services arrangement, as applicable. As a lessee, the Company mainly leases office and warehouse storage space which are classified as operating leases. The operating lease right-of-use (“ROU”) assets and liabilities are included in Property, Plant and Equipment and Accrued and other liabilities in the Company’s consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The implicit rate is used when readily determinable. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The Company determined that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. The depreciable life of ROU assets and 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 remeasurement of the lease liability as an adjustment to the ROU assets. The Company reviews the carrying values of the ROU assets for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. Impairment loss is recognized in the consolidated statement of operations. Amortization of ROU assets and interest on lease liabilities are included in the selling, general and administrative expenses in the consolidated statement of operations. IMAX Corporation as a Lessee : The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The Company determined that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. The incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The depreciable life of assets and 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. |
Research and Development Expense | (p) Research and Development Research and development costs are expensed as incurred and primarily include projector and sound parts, labor, consulting fees, allocation of overheads and other related materials which pertain to the Company’s development of ongoing product 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 | (q) Foreign Currency Translation Monetary assets and liabilities of the Company’s operations which are denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the end of the period. In 2013, the Company determined that the functional currency of one of its consolidated subsidiaries had changed from the Company’s reporting currency to the currency of the nation in which it is domiciled. As a result, in accordance with the FASB ASC 830 “Foreign Currency Matters”, the adjustment attributable to current-rate translation of non-monetary assets as of the date of the change was reported in other comprehensive income (“OCI”). The functional currency of its other consolidated subsidiaries continues to be the United States dollar. Foreign exchange translation gains and losses are included in the determination of earnings in the period in which they arise. Foreign currency derivatives are recognized and measured in the balance sheet at fair value. Changes in the fair value (gains or losses) are recognized in the consolidated statement of operations except for derivatives designated and qualifying as foreign currency hedging instruments. For foreign currency hedging instruments, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comprehensive income (loss) and reclassified to the consolidated statement of operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the consolidated statement of operations. |
Share-based Compensation, Option and Incentive Plans | (r) Stock-Based Compensation The Company’s stock-based compensation generally includes stock options, restricted share units (“RSUs”) and performance share units (“PSUs”). Stock-based compensation is recognized in accordance with the FASB ASC Topic 505, “Equity” and Topic 718, “Compensation-Stock Compensation.” The Company measures stock-based compensation cost based on the grant date fair value of the award, which is recognized as an expense in the consolidated statement of operations on a straight-line basis over the requisite service period. Stock-based compensation expense is not adjusted for estimated forfeitures, but is instead adjusted upon the actual forfeiture of the award. Stock-based compensation expense includes compensation cost for employee stock-based payment awards granted and all modified, repurchased or cancelled employee awards. In addition, compensation expense includes the compensation cost, based on the grant-date fair value calculated for pro forma disclosures under ASC 718-10-55, for the portion of awards for which required service had not been rendered that were outstanding. Compensation expense for these employee awards is recognized using the straight-line single-option method. The Company utilizes the market yield on U.S. treasury securities (also known as nominal rate) over the contractual term of the instrument being issued. 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. 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. See note 16(c) for the assumptions used to determine the fair value of stock-based payment awards. As the Company stratifies its employees into homogeneous groups in order to calculate the grant date fair value of options using the Binomial Model, ranges of assumptions used are presented for the expected life of the option. The Company uses historical data to estimate option exercise behavior within the valuation model; 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 implied by the observed current market prices of the Company’s traded options and the Company’s peer group volatility. The Company utilizes the Binomial Model to determine expected option life based on such data as vesting periods of awards, historical data that includes past exercise and post-vesting cancellations and stock price history. 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. 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. The value of the portion of the award that is ultimately expected to vest is recognized as compensation expense over the requisite service periods in the Company’s consolidated statements of operations. The Company’s RSUs have been classified as equity in accordance with Topic 505. Performance Share 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 certain stock-price targets. The fair value of the PSUs with EBITDA-based targets is equal to the closing price of the Company’s common stock on the date of grant. The fair value of the PSUs with stock-price targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model which takes into account the likelihood of achieving the stock-price 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 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 awards, and actual and projected employee stock option exercise behaviors. The amount and timing of compensation expense recognized for PSUs with EBITDA-based targets is dependent upon management's quarterly 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. The Company’s PSUs have been classified as equity in accordance with Topic 505. Awards to Non-Employees Stock-based awards for services provided by non-employees within the scope of ASC Topic 718 are measured at grant date fair value of the equity instruments that the Company is obligated to issue when 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 stock-based awards. When there are performance conditions related to the vesting of the stock-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 | (s) 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 at December 31, 2019, 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 income. Amounts recognized in accumulated other comprehensive income including unrecognized actuarial gains or losses and prior service costs are adjusted as they are subsequently recognized in the consolidated statement 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, 2019 was 3.0 year. For defined contribution pension plans, required contributions by the Company are recorded as an expense. 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 income (loss). Amounts recognized in accumulated other comprehensive income (loss) including unrecognized actuarial gains or losses are adjusted as they are subsequently recognized in the consolidated statement of operations as components of net periodic benefit cost. |
Guarantees, Indemnifications and Warranties | (t) Guarantees The ASC Topic 460 “Guarantees” requires a guarantor to recognize, at the inception of a guarantee, a liability for the fair value of certain guarantees. Disclosures as required under the accounting guidance have been included in note 15(f). |
New Accounting Pronouncements Adopted & Accounting Pronouncements Not Yet Adopted | Adoption of New Accounting Policies The Company adopted several standards including the following on January 1, 2019. In 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASC Topic 842”). The Company adopted 2016-02 and several associated ASUs on January 1, 2019. See note 4 for a further discussion of the Company’s adoption of ASC Topic 842. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The adoption of this standard was applied prospectively and did not have an impact on the Company’s consolidated financial statements. In December 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The adoption of this standard was applied prospectively and did not have an impact on the Company. See note 22(d) for additional disclosure regarding the Company’s hedging arrangements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The adoption of this standard was applied prospectively and did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). The adoption of this standard was applied prospectively and did not have a material impact on the Company’s consolidated financial statements. Recently Issued FASB Accounting Standard Codification Updates Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the accounting for income taxes” (“ASU 2019-12”). The purpose of ASU 2019-12 is to simplify the accounting for income taxes. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently assessing the impact of ASU 2019-12 on its consolidated financial statements. In November 2019, the FASB issued ASU No. 2019-11, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” (“ASU 2019-11”). The purpose of ASU 2019-11 is to clarify or address stakeholders’ specific issues about certain aspects of the amendments in ASU 2016-13. As the Company has not yet adopted ASU 2016-13, the effective date and transition requirements for the amendments in ASU 2019-11 related to amendments in 2016-13, have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019 (see below). The Company is currently assessing the impact of the codification improvements on its consolidated financial statements. In May 2019, the FASB issued ASU No. 2019-05, “Financial Instruments – Credit Losses (Topic 326)” (“ASU 2019-05”). The purpose of ASU 2019-05 is to provide the option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for certain financial assets upon adoption of ASU 2016-13. Adoption of ASU 2019-05 coincides with the adoption of ASU 2016-13 and will therefore be effective for interim and annual reporting periods beginning after December 15, 2019. The Company’s Accounts receivable, Financing receivables, Variable consideration receivable from contracts and certain small loans receivable are within the scope of ASU 2019-05. The Company has concluded that historical data, adjusted for any current events and expected future economic factors, is the most appropriate modelling information to determine the Company’s expected credit losses. The Company is in the process of completing the necessary analysis for its adoption of ASU 2019-05 in the first quarter of 2020. In April 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”). The purpose of ASU 2019-04 is to provide clarification and improve the guidance provided by ASU 2016-01, ASU 2016-13, and ASU 2017-12. Adoption of these amendments are required at the time of adopting ASU 2016-01, ASU 2016-13, and ASU 2017-12. As the Company has not yet adopted ASU 2016-13, the effective date and transition requirements for the amendments in ASU 2019-04 related to amendments in 2016-13, have the same effective date and transition requirements as ASU 2016-13. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019 (see below). The Company is currently assessing the impact of the codification improvements on its consolidated financial statements. The Company has previously adopted ASU 2016-01 and ASU 2017-12. As a result, the effective date for adoption of ASU 2019-04 as it pertains to ASU 2016-01 is the fiscal year beginning after December 15, 2019 and ASU 2017-12 is the beginning of the first annual period beginning after the issuance date. The Company is currently assessing the potential impacts of the codification improvements in ASU 2019-04 relating to ASU 2016-01 and 2017-12 on its consolidated financial statements. In March 2019, the FASB issued ASU No. 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350)” (“ASU 2019-02”). The purpose of ASU 2019-02 is to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization, as well as requiring an entity to reassess estimates of the use of a film in a film group. In addition, ASU 2019-02 will require an entity to test for impairment at a film group level if it is predominantly monetized with other films. Amendments in this update would be applied prospectively, and for public entities, the amendments in ASU 2019-02 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2019-02 on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The purpose of ASU 2016-13 is to require a financial asset measured on the amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. For public entities, the amendments in ASU 2016-13 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2016-13 on its consolidated financial statements. The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. Accounting standards 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 period ended December 31, 2019. |
Lessor Leases | IMAX Corporation as a Lessor: Several of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. 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 lease arrangements are described in note 2(n) in the Company’s 2019 Form 10-K. The Company classifies its lease arrangements at inception of the arrangement and, if required, after a modification of the lease arrangement, to determine whether they are sales-type leases or operating leases. Under the Company’s 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. Except for those sales arrangements that are classified as sales-type leases, the Company’s leases generally do not contain an automatic transfer of title at the end of the lease term. The Company’s 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 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 theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company has assessed the nature of its joint revenue sharing arrangements and concluded that, based on the guidance in the Revenue Recognition Topic of the ASC, the arrangements contain a lease. 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 equipment under joint revenue sharing arrangements 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 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 extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company monitors the performance of the theaters to which it has leased theater systems. When facts and circumstances indicate that there is a potential impairment in the net investment in lease, the Company will evaluate the potential outcome of either a renegotiation involving changes in the terms of the receivable or defaults on the existing lease. The Company will record a provision if it is considered probable that the Company will be unable to collect all amounts due under the contractual terms of the arrangement or a renegotiated lease amount will cause a reclassification of the sales-type lease to an operating lease. See additional details regarding the Company’s traditional and hybrid joint revenue sharing arrangements as described in note 2 (n) in the Company’s 2019 Form 10-K. |
Commitments and Contingencies | The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. In accordance with the Contingencies Topic of the FASB ASC, the Company will make a provision for a liability when it is both probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has adequate provisions for any such matters. The Company reviews these provisions in conjunction with any related provisions on assets related to the claims at least quarterly and adjusts these provisions to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other pertinent information related to the case. Should developments in any of these matters outlined below cause a change in the Company’s determination as to an unfavorable outcome and result in the need to recognize a material provision, or, should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on the Company’s results of operations, cash flows, and financial position in the period or periods in which such a change in determination, settlement or judgment occurs. The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred. |
Segment Reporting | The Company’s reportable segments are organized under four primary groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box office results and which includes the reportable segment of IMAX DMR and contingent rent from the joint revenue sharing arrangements and IMAX systems segments (hybrid joint revenue sharing arrangements, which take the form of a sale are reflected under the IMAX systems segment of Theater Business); (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes hybrid (fixed and contingent) revenues and upfront installation costs from sales arrangements previously reported in the joint revenue sharing arrangements segment and after-market sales of projection system parts and 3D glasses from the other segment; (3) New Business, which includes which includes home entertainment, and other new business initiatives that are in the development, start-up and/or wind-up phases, and (4) Other; which includes the film post-production and distribution segments, certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. The Company is presenting information at a disaggregated level to provide more relevant information to readers, as permitted by the standard. The accounting policies of the segments are the same as those described in note 2. Transactions between the film production and 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. |
Costs Associated With Exit or Disposal Activities or Restructurings | Restructuring charges are comprised of employee severance costs including benefits and stock-based compensation, costs of consolidating facilities and contract termination costs. Restructuring charges are based upon plans that have been committed to by the Company but may be refined in subsequent periods. These charges are recognized pursuant to FASB ASC 420. A liability for a cost associated with an exit or disposal activity is recognized and measured at its fair value in the consolidated statement of operations in the period in which the liability is incurred. When estimating the value of facility restructuring activities, assumptions are applied regarding estimated sub-lease payments to be received, which can differ from actual results. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
VIEs Total Assets and Liabilities | Total assets and liabilities of the Company's consolidated VIEs are as follows: December 31, December 31, 2019 2018 Total assets $ 9,677 $ 12,203 Total liabilities $ 15,528 $ 11,573 Total assets and liabilities of the VIE entities which the Company does not consolidate are as follows: December 31, December 31, 2019 2018 Total assets $ 448 $ 447 Total liabilities $ 372 $ 362 |
Summary of Estimated Useful Lives | Property, plant and equipment are recorded at cost and are depreciated on a straight-line basis over their estimated useful lives as follows: Theater system components (1) — over the equipment’s anticipated useful life (7 to 20 years) Camera equipment — 5 to 10 years Buildings — 20 to 25 years Office and product equipment — 3 to 5 years Leasehold improvements — over the shorter of the initial term of the underlying leases plus any reasonably assured renewal terms, and the useful life of the asset (1) Includes equipment under joint revenue sharing arrangements. |
Adoption of ASC Topic 842, Le_2
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Impacts of Adoption of Standard Related to Leases | The following table presents the impact from the adoption of ASC Topic 842 on the Company’s assets and liabilities in the consolidated balance sheet: Balance at Balance at December 31, ASC Topic 842 January 1, 2018 Adjustments 2019 Assets Property, plant and equipment $ 280,658 $ 17,462 $ 298,120 Prepaid expenses 10,294 (36 ) 10,258 Liabilities Accrued and other liabilities 97,724 17,426 115,150 |
Lease Arrangements And Financ_2
Lease Arrangements And Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Financing Receivables Consisting Of Net Investment In Sales Type Leases And Receivables From Financed Sales | Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of theater systems are as follows: As at December 31, 2019 2018 Gross minimum lease payments receivable $ 16,766 $ 10,499 Unearned finance income (1,005 ) (902 ) Minimum lease payments receivable 15,761 9,597 Accumulated allowance for uncollectible amounts (155 ) (155 ) Net investment in leases 15,606 9,442 Gross financed sales receivables 146,660 155,044 Unearned finance income (33,313 ) (36,215 ) Financed sales receivables 113,347 118,829 Accumulated allowance for uncollectible amounts (915 ) (839 ) Net financed sales receivables 112,432 117,990 Total financing receivables $ 128,038 $ 127,432 Net financed sales receivables due within one year $ 27,595 $ 26,911 Net financed sales receivables due after one year $ 84,837 $ 91,079 As at December 31, 2019 2018 Weighted-average remaining lease term (years) Sales-type lease arrangements 8.1 7.3 Weighted-average interest rate Sales-type lease arrangements 6.68 % 8.00 % Financed sales receivables 9.00 % 9.10 % |
Components of Lease Expense | The components of lease expense are as follows: Years Ended December 31, 2019 2018 2017 Operating lease cost (1) Selling, general and administrative expenses $ 850 $ 4,863 $ 6,059 Amortization of lease assets Selling, general and administrative expenses 2,370 — — Interest on lease liabilities Selling, general and administrative expenses 1,102 — — Total lease cost $ 4,322 $ 4,863 $ 6,059 (1) Includes short-term leases and variable lease costs, which are not significant for the December 31, 2019 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases are as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities $ 3,607 Right-of-use assets obtained in exchange for lease obligations $ 17,147 |
Lessee Operating Lease Balance Sheet Amounts and Lines | Supplemental balance sheet information related to leases are as follows: As at December 31, January 1, 2019 2019 Assets Operating Leases Property, plant and equipment $ 16,262 $ 17,462 Liabilities Operating Leases (1) Accrued and other liabilities $ 18,677 $ 19,960 (1) The Company recorded lease liabilities of approximately $20.0 million as at January 1, 2019 upon initial adoption of ASC Topic 842. In addition, unamortized lease inducements and other accruals of $2.5 million were reclassified from accrued liabilities to offset against the applicable right-of-use asset. |
Lessee Operating Lease Weighted Averages Table | As at December 31, January 1, 2019 2019 Weighted-average remaining lease term (years) Operating Leases 8.1 8.3 Weighted-average discount rate Operating Leases 5.90 % 5.80 % |
Lessee Operating Lease, Maturity | Maturities of lease liabilities are as follows: Operating Leases 2020 $ 3,732 2021 3,308 2022 2,387 2023 2,268 2024 2,220 Thereafter 10,060 Total lease payments $ 23,975 Less: interest expense (5,298 ) Present value of lease liabilities $ 18,677 |
Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases | As of December 31, 2018, under ASC Topic 840, minimum lease payments under non-cancelable operating leases by period were expected to be as follows: Operating Leases 2019 $ 3,847 2020 2,790 2021 2,491 2022 1,843 2023 1,759 Thereafter 9,657 Total lease payments $ 22,387 |
Variable Consideration Receiv_2
Variable Consideration Receivable from Contracts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Change In Contract With Customer Asset [Abstract] | |
Summary of Variable Consideration Receivable From Contracts | The following table sets forth a summary of activities in variable consideration receivable from contracts for the year ended December 31: Variable Consideration Receivable from Contracts Balance as at December 31, 2018 $ 35,985 Recognition of variable consideration 9,948 Accretion to finance income 1,936 True-up of variable consideration receivable 979 Payments received (8,808 ) Balance as at December 31, 2019 $ 40,040 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | As at December 31, 2019 2018 Raw materials $ 26,538 $ 29,705 Work-in-process 4,608 4,733 Finished goods 11,843 10,122 $ 42,989 $ 44,560 |
Film Assets (Tables)
Film Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Film Costs [Abstract] | |
Film Assets | As at December 31, 2019 2018 Completed and released films, net of accumulated amortization of $ 7,193 $ 5,958 $192,999 (2018 ― $173,812) Films in production 4,250 4,500 Films in development 6,478 5,909 $ 17,921 $ 16,367 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | As at December 31, 2019 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components (1)(2)(3) $ 322,492 $ 133,739 $ 188,753 Camera equipment 5,192 4,239 953 327,684 137,978 189,706 Assets under construction (4) 14,483 — 14,483 Right-of-use assets (5) 17,147 885 16,262 Other property, plant and equipment Land 8,203 — 8,203 Buildings 80,850 22,931 57,919 Office and production equipment (6) 41,673 25,654 16,019 Leasehold improvements 7,614 3,357 4,257 138,340 51,942 86,398 $ 497,654 $ 190,805 $ 306,849 As at December 31, 2018 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components (1)(2)(3) $ 287,066 $ 120,273 $ 166,793 Camera equipment 5,080 3,839 1,241 292,146 124,112 168,034 Assets under construction (4) 24,327 — 24,327 Other property, plant and equipment Land 8,203 — 8,203 Buildings 77,468 20,012 57,456 Office and production equipment (6) 42,252 24,295 17,957 Leasehold improvements 7,583 2,902 4,681 135,506 47,209 88,297 $ 451,979 $ 171,321 $ 280,658 (1) Included in theater system components are assets with costs of $7.6 million (2018 — $8.5 million) and accumulated depreciation of $6.7 million (2018 — $7.4 million) that are leased to customers under operating leases. (2) Included in theater system components are assets with costs of $297.4 million (2018 —$269.8 million) and accumulated depreciation of $121.3 million (2018 — $108.4 million) that are used in joint revenue sharing arrangements. (3) In 2019, the Company recorded a charge of $2.2 million (2018 — $0.6 million ) in cost of sales applicable to Rentals upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. (4) Included in assets under construction are components with costs of $13.2 million (2018 — $15.3 million) that will be utilized to construct assets to be used in joint revenue sharing arrangements. (5) The right-of-use assets mainly include operating leases for office and warehouse storage space. See note 4 for further discussion of the adoption impact of ASC Topic 842 on the Company’s consolidated financial statements. (6) Fully amortized office and production equipment is still in use by the Company. In 2019, the Company identified and wrote off $4.9 million (2018 — $1.3 million) of office and production equipment that is no longer in use and fully amortized. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets [Abstract] | |
Schedule of Other Assets | As at December 31, 2019 2018 Lease incentives provided to theaters 19,125 10,550 Commissions and other deferred selling expenses 1,501 2,796 Other investments 2,500 2,500 Investment in content 955 1,073 Foreign currency derivatives 602 649 Other 351 429 $ 25,034 $ 17,997 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) From Continuing Operations Before Income Taxes By Tax Jurisdiction | (a) Income (loss) before income taxes by tax jurisdiction are comprised of the following: Years Ended December 31, 2019 2018 2017 Canada $ 884 $ (14,749 ) $ (17,261 ) United States (234 ) (6,079 ) (11,895 ) China 51,809 50,446 50,410 Ireland 17,630 8,071 3,632 Other 5,247 5,916 5,125 $ 75,336 $ 43,605 $ 30,011 |
Schedule of Components of (Provision) Recovery for Income Taxes Related to Income from Continuing Operations | (b) The (provision) recovery of income taxes is comprised of the following: Years Ended December 31, 2019 2018 2017 Current: Canada $ 2,369 $ (4,893 ) $ (6,898 ) United States 595 1,300 267 China (11,789 ) (11,259 ) (12,724 ) Ireland (762 ) (1,095 ) (735 ) Other (419 ) (494 ) (717 ) (10,006 ) (16,441 ) (20,807 ) Deferred: (1) Canada (3,913 ) 5,993 8,748 United States (949 ) 2,386 (7,109 ) China (18 ) (6 ) 1,405 Ireland (1,923 ) (1,423 ) 1,085 Other 41 (27 ) (112 ) (6,762 ) 6,923 4,017 Provision for income taxes $ (16,768 ) $ (9,518 ) $ (16,790 ) (1) For the year ended December 31, 2019, the Company has not adjusted the valuation allowance from the prior year (2018 — $nil) relating to the future utilization of deductible temporary differences, tax credits, and certain net operating loss carryforwards. Included in the provision for income taxes is the deferred tax related to amounts recorded in and reclassified from other comprehensive income in the year of $0.4 million (2018 — $0.3 million). |
Schedule of Effective Income Tax Rate Reconciliation | (c) The provision for income taxes from operations differs from the amount that would have resulted by applying the combined Canadian federal and provincial statutory income tax rates to earnings due to the following: Years Ended December 31, 2019 2018 2017 Income tax provision at combined statutory rates $ (19,964 ) $ (11,555 ) $ (7,954 ) Adjustments resulting from: Non-deductible stock based compensation (276 ) (363 ) (295 ) Other non-deductible/non-includable items 93 202 (717 ) Changes to tax reserves 1,418 (204 ) (1,435 ) U.S. federal and state taxes (300 ) 30 (373 ) Withholding taxes (1,071 ) (1,418 ) (1,217 ) Income tax at different rates in foreign and other provincial jurisdictions 5,019 3,477 4,147 Investment and other tax credits (non-refundable) 701 783 1,570 Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments (1,998 ) 768 (532 ) (Reduction of) excess tax benefit from realized stock-based compensation awards (374 ) (1,232 ) (591 ) Impact of changes due to U.S. Tax Act — — (9,323 ) Other (16 ) (6 ) (70 ) Provision for income taxes $ (16,768 ) $ (9,518 ) $ (16,790 ) |
Schedule of Components of Net Deferred Income Tax Assets | (d) The net deferred income tax asset is comprised of the following: As at December 31, 2019 2018 Net operating loss carryforwards $ 888 $ 3,389 Investment tax credit and other tax credit carryforwards 3,650 4,829 Write-downs of other assets 1,220 1,218 Excess of tax accounting basis in property, plant and equipment, inventories and other assets 6,257 8,243 Accrued pension liability 6,393 6,125 Accrued stock-based compensation 5,360 2,054 Other accrued reserves 4,617 11,423 Total deferred income tax assets 28,385 37,281 Income recognition on net investment in leases (4,283 ) (5,820 ) 24,102 31,461 Valuation allowance (197 ) (197 ) Net deferred income tax asset $ 23,905 $ 31,264 |
Schedule of Income Tax Contingencies | A reconciliation of the beginning and ending amount of tax reserves (excluding interest and penalties) for the years ended December 31 is as follows: Years Ended December 31, 2019 2018 2017 Balance at beginning of the year $ 16,136 $ 15,927 $ 12,593 Additions based on tax positions related to the current year 812 4,329 3,639 Reductions for tax positions of prior years (2,230 ) (170 ) (195 ) Reductions resulting from lapse of applicable statute of limitations and administrative practices — (3,950 ) (110 ) Balance at the end of the year $ 14,718 $ 16,136 $ 15,927 |
Income Tax Benefit (Expense) Included in the Other Comprehensive Income (Loss) | The income tax benefit (expense) related to the following items included in other comprehensive income (loss) are: Years Ended December, 31 2019 2018 2017 Unrecognized actuarial gain (loss) on defined benefit plan $ (42 ) $ (379 ) $ (262 ) Unrecognized actuarial gain or loss on postretirement benefit plans — (23 ) (32 ) Prior service cost arising during the period 145 — — Amortization of prior service cost included in net income (26 ) — — Unrealized change in cash flow hedging instruments (145 ) 581 (667 ) Realized change in cash flow hedging instruments upon settlement (310 ) 107 215 $ (378 ) $ 286 $ (746 ) |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | As at December 31, 2019 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 12,779 $ 8,587 $ 4,192 Licenses and intellectual property 26,168 10,747 15,421 Internal use software 23,791 13,239 10,552 Other 576 394 182 $ 63,314 $ 32,967 $ 30,347 As at December 31, 2018 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 12,266 $ 7,871 $ 4,395 Licenses and intellectual property 26,168 8,972 17,196 Internal use software 21,528 9,264 12,264 Other 548 308 240 $ 60,510 $ 26,415 $ 34,095 |
Summary of Estimated Amortization Expenses | The estimated amortization expense for each of the years ended December 31, are as follows: 2020 $ 6,553 2021 6,553 2022 6,553 2023 6,553 2024 6,553 |
Credit Facility and Other Fin_2
Credit Facility and Other Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Bank Indebtedness | Bank indebtedness includes the following: December 31, December 31, 2019 2018 Credit Facility $ 20,000 $ 40,000 Deferred charges on debt financing (1,771 ) (2,247 ) $ 18,229 $ 37,753 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 at December 31, 2019: Payments Due by Fiscal Year Total Obligations 2020 2021 2022 2023 2024 Thereafter Purchase obligations $ 41,779 $ 41,440 $ 339 $ — $ — $ — $ — Pension obligations 20,298 — — — 20,298 — — Operating lease obligations 22,170 4,215 3,260 2,318 2,203 2,158 8,016 Credit Facility 20,000 — — — 20,000 — — Postretirement benefits obligations 2,246 108 114 113 123 123 1,665 $ 106,493 $ 45,763 $ 3,713 $ 2,431 $ 42,624 $ 2,281 $ 9,681 |
Summary of Information About Total Rental Expenses Under Operating Leases | The following table summarizes information about the Company’s total rental expenses under operating leases: Years Ended December 31, 2019 2018 2017 Total rent expense $ 3,753 $ 4,303 $ 5,685 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes during the year | The following table summarizes the settlement of stock option and RSU transactions: Years Ended December 31, 2019 2018 2017 Stock options Issued from treasury 19,088 12,750 405,229 Plan trustee purchases 67,840 — 263,112 Total stock options exercised 86,928 12,750 668,341 Cash proceeds on stock option exercises $ 1,752 $ 218 $ 14,652 RSUs Issued from treasury — — 7,127 Plan trustee purchases 404,719 462,137 422,022 Shares withheld for tax withholdings 29,577 72,056 27,630 Total RSUs vested 434,296 534,193 456,779 |
Stock compensation | The following reflects the stock-based compensation expense recorded to the respective financial statement line items: Years Ended December 31, 2019 2018 2017 Cost and expenses applicable to revenues $ 1,709 $ 1,657 $ 1,704 Selling, general and administrative expenses 20,750 20,102 20,393 Research and development 371 452 556 Executive transition costs — 320 — Exit costs, restructuring charges and associated impairments — 54 357 $ 22,830 $ 22,585 $ 23,010 |
Stock option plan | The Company recorded the following expenses related to stock option grants issued to employees and directors in the IMAX LTIP and SOP plans. Years Ended December 31, 2019 2018 2017 Stock option expense $ 8,329 $ 5,950 $ 4,462 |
Non vested stock options | Total stock-based compensation expense related to non-vested employee stock options not yet recognized at December 31 are as follows: Years Ended December 31, 2019 2018 2017 Expense related to non-vested employee stock options not yet recognized $ 4,073 $ 8,482 $ 7,441 The weighted average period over which the awards are expected to be recognized are as follows: Years Ended December 31, 2019 2018 2017 Weighted average period awards are expected to be recognized (in years) 2.7 1.9 2.3 |
Options to Employees | The weighted average fair value of all stock options granted to employees and directors at the measurement date and the assumptions used to estimate the average fair value of the stock option are as follows: Years Ended December 31, 2019 2018 2017 Weighted average fair value per share $ 6.65 $ 6.74 $ 8.31 Average risk-free interest rate 2.64% 2.67% 2.34% Expected option life (in years) 6.73 - 10.00 5.06 - 7.00 4.71 - 5.83 Expected volatility 31% 30% 30% Dividend yield 0% 0% 0% |
China LTIP Activity | The following table summarizes the expense related to China Options, China RSUs, CSSBPs and any accrued liability related to CSSBPs: Years Ended December 31, 2019 2018 2017 Expense China Options $ 320 $ 217 $ 1,034 China RSUs 1,664 1,229 1,124 CSSBPs — — 353 CSSBPs liability $ — $ — $ — |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes certain information in respect of option activity under the SOP and IMAX LTIP: Weighted Average Exercise Number of Shares Price Per Share 2019 2018 2017 2019 2018 2017 Options outstanding, beginning of year 5,465,046 5,082,100 5,190,542 $ 27.63 $ 29.31 $ 28.35 Granted 1,016,882 1,082,123 854,764 20.66 21.95 30.07 Exercised (86,928 ) (12,750 ) (668,341 ) 20.16 17.08 21.92 Forfeited (336,493 ) (69,332 ) (108,551 ) 23.63 29.99 32.42 Expired (299,134 ) (507,977 ) (89,958 ) 25.82 31.69 32.29 Cancelled (27,164 ) (109,118 ) (96,356 ) 31.13 30.44 29.28 Options outstanding, end of year 5,732,209 5,465,046 5,082,100 26.82 27.63 29.31 Options exercisable, end of year 4,801,272 3,990,970 3,913,088 27.40 28.48 28.96 |
RSU expenses | The Company recorded the following expenses related to RSU grants issued to employees and directors in the plan: Years Ended December 31, 2019 2018 2017 RSU expenses $ 12,394 $ 15,189 $ 16,033 |
RSU unrecognized expenses | Total stock-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, 2019 2018 2017 Expense related to non-vested RSUs not yet recognized $ 23,548 $ 18,597 $ 22,440 Weighted average period awards are expected to be recognized (in years) 2.7 2.2 2.1 |
Restricted Stock Units activity under the IMAX LTIP | The following table summarizes certain information in respect of RSU activity under the IMAX LTIP: Number of Awards Weighted Average Grant Date Fair Value Per Share 2019 2018 2017 2019 2018 2017 RSUs outstanding, beginning of year 1,033,871 995,329 1,124,180 $ 25.70 $ 32.68 $ 33.01 Granted 687,475 659,282 463,010 22.30 20.99 30.47 Vested and settled (434,296 ) (534,193 ) (456,779 ) 27.54 32.33 31.66 Forfeited (221,703 ) (86,547 ) (135,082 ) 23.68 29.19 32.03 RSUs outstanding, end of year 1,065,347 1,033,871 995,329 23.17 25.70 32.68 |
RSU carve out balance | The following table summarizes the number of RSUs issued from the carve-out balance: Outstanding, December 31, 2017 213,661 Issued during 2018 (65,838 ) Outstanding, December 31, 2018 147,823 Issued during 2019 (64,053 ) Outstanding, December 31, 2019 83,770 |
Basic and diluted per-share computations | Reconciliations of the numerator and denominator of the basic and diluted per-share computations are comprised of the following: Years Ended December 31, 2019 2018 2017 Net income attributable to common shareholders $ 46,866 $ 22,844 $ 2,344 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 61,434 64,696 66,160 Weighted average number of shares repurchased during the period, net (124 ) (1,621 ) (780 ) Weighted average number of shares used in computing basic earnings per share 61,310 63,075 65,380 Assumed exercise of stock options and RSUs, net of shares assumed repurchased 179 132 160 Weighted average number of shares used in computing diluted earnings per share 61,489 63,207 65,540 |
Receivable Provisions, Net of_2
Receivable Provisions, Net of Recoveries (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Receivable Provisions Net Of Recoveries [Abstract] | |
Receivable Provisions, Net of Recoveries | The following table reflects the Company’s receivable provisions net of recoveries recorded in the consolidated statements of operations: Years Ended December 31, 2019 2018 2017 Accounts receivable provisions, net of recoveries $ 2,354 $ 3,030 $ 1,967 Financing receivable provisions, net of recoveries 76 100 680 Receivable provisions, net of recoveries $ 2,430 $ 3,130 $ 2,647 |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Changes in Other Non-cash Operating Assets and Liabilities | Years Ended December 31, 2019 2018 2017 Decrease (increase) in: Accounts receivable $ (8,621 ) $ 33,942 $ (37,807 ) Financing receivables (320 ) 1,325 (7,253 ) Inventories 1,942 (14,022 ) 10,832 Prepaid expenses (290 ) (3,703 ) (924 ) Variable consideration receivable (4,056 ) — — Other assets (2,063 ) (3,084 ) (457 ) Increase (decrease) in: Accounts payable (11,774 ) 7,749 4,204 Accrued and other liabilities (1) (8,505 ) (3,266 ) (642 ) Deferred revenue (12,242 ) (6,494 ) 22,906 $ (45,929 ) $ 12,447 $ (9,141 ) (1) Excluded the $17.4 million non-cash impact of adopting ASC Topic 842 in 2019 |
Cash Payments | Years Ended December 31, 2019 2018 2017 Income taxes $ 17,298 $ 12,684 $ 22,829 Interest $ 1,231 $ 502 $ 826 |
Summary of Depreciation and Amortization | Years Ended December 31, 2019 2018 2017 Film assets (1) $ 19,176 $ 15,679 $ 31,031 Property, plant and equipment Joint revenue sharing arrangements 23,153 20,739 18,112 Other property, plant and equipment 12,477 13,164 11,803 Other intangible assets 6,290 5,507 4,319 Other assets 1,882 1,242 980 Deferred financing costs 509 1,106 562 $ 63,487 $ 57,437 $ 66,807 (1) Included in film asset amortization is a charge of $nil (2018 — $nil; 2017 — $1.5 million) relating to changes in estimates based on the ultimate recoverability of future films. |
Write Downs, Net of Recoveries | Years Ended December 31, 2019 2018 2017 Asset impairments Property, plant and equipment $ 96 3,725 $ 3,966 Other assets — 2,565 2,533 Prepaid expenses — 121 — Other intangible assets — 66 — Impairment of investments — — 1,225 Film assets 1,379 — 17,363 Other charges Accounts receivable (net of recoveries) 2,354 3,030 1,967 Financing receivables 76 100 680 Inventories 446 250 500 Property, plant and equipment (1) 2,360 1,762 1,224 Other intangible assets 95 151 63 Other assets — — 47 $ 6,806 $ 11,770 $ 29,568 Inventory charges Recorded in costs and expenses applicable to revenues - product & equipment sales $ 276 $ 250 $ 500 Recorded in costs and expenses applicable to revenues - services 170 — — $ 446 $ 250 $ 500 (1) In 2019, the Company recorded a charge of $0.2 million (2018 — $0.8 million; 2017 — $1.2 million) reflecting property, plant and equipment that were no longer in use. In 2019, the Company recorded a charge of $2.2 million in cost of sales applicable to Rentals upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. In 2018, the Company also recorded a charge of $0.6 million in cost of sales applicable to Rentals, and $0.4 million in revenue applicable to Rentals upon the upgrade of xenon-based digital systems under operating lease arrangements to laser-based digital systems under sales or sales-type lease arrangements. No such charge was recorded in the year ended December 31, 2017. |
Significant Non-cash Investing and Financing Activities | Years Ended December 31, 2019 2018 Net accruals related to: Purchases of property, plant and equipment $ 496 $ 227 Investment in joint revenue sharing arrangements (2,013 ) (61 ) Acquisition of other intangible assets (51 ) 89 $ (1,568 ) $ 255 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue by Segment | The following tables present a breakdown of the Company’s revenues between fixed and variable consideration and lease arrangements: Years Ended December 31, 2019 Subject to the Revenue Subject to the Recognition Standard Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ — $ 120,765 $ — $ 120,765 Joint revenue sharing arrangements – contingent rent — — 75,932 75,932 IMAX systems – contingent rent — — 139 139 — 120,765 76,071 196,836 Theater business IMAX systems Sales and sales-type leases 86,202 10,108 — 96,310 Ongoing fees and finance income 11,613 — — 11,613 Joint revenue sharing arrangements – fixed fees — — 11,014 11,014 Theater system maintenance 53,151 — — 53,151 Other theater 8,390 — — 8,390 159,356 10,108 11,014 180,478 New business 2,754 — — 2,754 Other Film post-production 7,392 — — 7,392 Film distribution — 4,818 — 4,818 Other — 2,123 1,263 3,386 7,392 6,941 1,263 15,596 Total $ 169,502 $ 137,814 $ 88,348 $ 395,664 Year Ended December 31, 2018 Subject to the Revenue Subject to the Recognition Standard Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ — $ 110,793 $ — $ 110,793 Joint revenue sharing arrangements – contingent rent — — 73,371 73,371 IMAX systems – contingent rent — — — — — 110,793 73,371 184,164 Theater business IMAX systems Sales and sales-type leases 82,128 6,304 — 88,432 Ongoing fees and finance income 12,224 — — 12,224 Joint revenue sharing arrangements – fixed fees 9,706 — — 9,706 Theater system maintenance 49,684 — — 49,684 Other theater 8,358 — — 8,358 162,100 6,304 — 168,404 New business 4,050 1,719 — 5,769 Other Film post-production 9,516 — — 9,516 Film distribution — 3,446 — 3,446 Other 50 3,052 — 3,102 9,566 6,498 — 16,064 Total $ 175,716 $ 125,314 $ 73,371 $ 374,401 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Inter-Segment Revenue | Transactions between the film production and 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. (a) The Company has the following eight reportable segments: IMAX DMR, joint revenue sharing arrangements, IMAX systems, theater system maintenance, other theater, new business, film distribution and film post-production. The Company organizes its reportable segments into the following four primary groups: Network Business, Theater Business, New Business and Other. Years Ended December 31, 2019 2018 2017 Revenue (1) Network business IMAX DMR $ 120,765 $ 110,793 $ 108,853 Joint revenue sharing arrangements – contingent rent 75,932 73,371 70,444 IMAX systems – contingent rent 139 — 3,890 196,836 184,164 183,187 Theater business IMAX systems 107,923 100,656 90,347 Joint revenue sharing arrangements – fixed fees 11,014 9,706 10,118 Theater system maintenance 53,151 49,684 45,383 Other theater 8,390 8,358 9,145 180,478 168,404 154,993 New business 2,754 5,769 24,522 Other Film post-production 7,392 9,516 10,382 Film distribution 4,818 3,446 2,790 Other 3,386 3,102 4,893 15,596 16,064 18,065 Total revenues $ 395,664 $ 374,401 $ 380,767 Gross Margin Network business IMAX DMR (2) $ 78,592 $ 72,773 $ 71,789 Joint revenue sharing arrangements – contingent rent (2) 47,935 48,856 47,337 IMAX systems – contingent rent 139 — 3,890 126,666 121,629 123,016 Theater business IMAX systems (2)(3) 58,540 60,019 57,734 Joint revenue sharing arrangements – fixed fees (2) 2,613 1,982 2,349 Theater system maintenance (3) 23,010 21,991 18,275 Other theater 2,624 1,806 1,965 86,787 85,798 80,323 New business 2,106 (350 ) (16,176 ) Other Film post-production 1,680 3,107 4,791 Film distribution (2) (2,942 ) (1,344 ) (5,797 ) Other (125 ) (911 ) (911 ) (1,387 ) 852 (1,917 ) Total segment margin $ 214,172 $ 207,929 $ 185,246 Years Ended December 31, 2019 2018 2017 Depreciation and amortization Network business IMAX DMR $ 16,117 $ 13,602 $ 15,779 Joint revenue sharing arrangements - contingent rent 25,036 21,970 19,092 Theater business IMAX systems 3,878 3,615 3,551 Theater system maintenance 299 164 173 New business 58 2,519 15,365 Other Film post-production 1,301 1,500 1,845 Film distribution 3,894 2,225 2,128 Other 747 790 911 Corporate and other non-segment specific assets 12,157 11,052 7,963 Total $ 63,487 $ 57,437 $ 66,807 Years Ended December 31, 2019 2018 2017 Asset impairments and write-downs, net of recoveries Network business IMAX DMR — $ 15 $ — Joint revenue sharing arrangements - contingent rent 2,207 1,193 944 Theater business IMAX systems 276 250 2,930 Theater system maintenance 170 — — New business 96 7,399 16,400 Other Film post-production — — — Film distribution 1,379 — 5,865 Corporate and other non-segment specific assets 2,678 2,913 3,429 Total $ 6,806 $ 11,770 $ 29,568 Years Ended December 31, 2019 2018 2017 Purchase of property, plant and equipment Network business IMAX DMR $ 99 $ 55 $ 518 Joint revenue sharing arrangements - contingent rent 40,489 34,810 42,634 Theater business IMAX systems 452 2,813 4,537 Theater system maintenance 311 527 206 New business — 342 4,487 Other Film post-production 1,210 1,067 810 Other 504 193 367 Corporate and other non-segment specific assets 4,845 8,371 13,218 Total $ 47,910 $ 48,178 $ 66,777 As at December 31 2019 2018 Assets Network business IMAX DMR $ 46,417 $ 38,117 Joint revenue sharing arrangements - contingent rent 231,626 223,799 IMAX systems - contingent rent — — Theater business IMAX systems 277,720 266,290 Joint revenue sharing arrangements - fixed fees 27,189 18,044 Theater system maintenance 22,869 26,225 Other theater 2,042 2,197 New business — 1,677 Other Film post-production 36,562 36,998 Film distribution 14,831 15,601 Other 23,809 26,519 Corporate and other non-segment specific assets 206,004 218,133 Total $ 889,069 $ 873,600 (1) The Company’s largest customer represents 16.5% of total revenues as at December 31, 2019, (2018 —17.1%; 2017 —16.4%). (2) IMAX DMR segment margins include marketing costs of $22.5 million, $16.5 million and $15.4 million in 2019, 2018 and 2017, respectively. Joint revenue sharing arrangements segment margins include advertising, marketing, and commission costs of $4.5 million, $3.6 million and $4.5 million in 2019, 2018 and 2017, respectively. IMAX systems segment margins include marketing and commission costs of $2.0 million, $2.4 million and $2.9 million in 2019, 2018 and 2017, respectively. Film distribution segment margins includes marketing expense of $0.4 million, expense of $2.2 million and recovery of $0.7 million in 2019, 2018 and 2017, respectively. (3) In 2019, the Company recorded a charge of $0.4 million (2018 — $0.3 million; 2017 — $0.5 million, respectively) in costs and expenses applicable to revenues, primarily for its film-based projector inventories. Specifically, IMAX systems include an inventory charge of $0.3 million (2018 — $0.3 million; 2017 — $0.5 million). Theater system maintenance includes inventory write-downs of $0.2 million (2018 — $nil; 2017 — $nil). (4) Goodwill is allocated on a relative fair market value basis to the IMAX systems segment, theater system maintenance segment and joint revenue sharing segment. There has been no change in the allocation of goodwill from the prior year. |
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 theaters that exhibit the re-mastered 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 theater. Years Ended December 31, 2019 2018 2017 Revenue Greater China $ 124,294 $ 117,520 $ 126,474 United States 121,264 118,495 135,153 Canada 9,220 10,507 12,812 Asia (excluding Greater China) 48,386 46,858 35,896 Western Europe 46,911 40,497 32,765 Russia & the CIS 16,124 10,133 11,054 Latin America 9,438 12,952 10,963 Rest of the World 20,027 17,439 15,650 Total $ 395,664 $ 374,401 $ 380,767 |
Schedule of Property Plant and Equipment By Geographic Areas | As at December 31 2019 2018 Property, plant and equipment United States $ 109,240 $ 97,843 Greater China 105,312 93,494 Canada 47,837 48,275 Western Europe 27,748 26,566 Asia (excluding Greater China) 9,948 8,084 Rest of the World 6,764 6,396 Total $ 306,849 $ 280,658 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
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 fair values due to the short-term maturity of these instruments. The Company’s other financial instruments at December 31, are comprised of the following: As at December 31, 2019 As at December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Level 1 Cash and cash equivalents (1) $ 109,484 109,484 $ 141,590 $ 141,590 Equity securities (3) 15,685 15,685 1,022 1,022 Level 2 Net financed sales receivables (2) $ 112,432 $ 111,441 $ 117,990 $ 117,428 Net investment in sales-type leases (2) 15,606 15,309 9,442 9,529 Convertible loan receivable (2) 1,500 1,500 1,500 1,500 Equity securities (1) 1,000 1,000 1,000 1,000 Foreign exchange contracts — (3) 530 530 (1,202 ) (1,202 ) Borrowings under the Credit Facility (1) (20,000 ) (20,000 ) (40,000 ) (40,000 ) (1) Recorded at cost, which approximates fair value. (2) Estimated based on discounting future cash flows at currently available interest rates with comparable terms. (3) Value determined using quoted prices in active markets. |
Recorded Investment in Financing Receivables | The following table discloses the recorded investment in financing receivables by credit quality indicator: As at December 31, 2019 As at December 31, 2018 Minimum Lease Payments Financed Sales Receivables Total Minimum Lease Payments Financed Sales Receivables Total In good standing $ 15,094 $ 102,450 $ 117,544 $ 8,701 $ 108,574 $ 117,275 Credit Watch 667 9,279 9,946 574 8,723 9,297 Pre-approved transactions — 830 830 322 565 887 Transactions suspended — 788 788 — 967 967 $ 15,761 $ 113,347 $ 129,108 $ 9,597 $ 118,829 $ 128,426 |
Investment In Financing Receivables On Nonaccrual Status | The Company’s investment in financing receivables on nonaccrual status is as follows: As at December 31, 2019 As at December 31, 2018 Recorded Investment Related Allowance Recorded Investment Related Allowance Net investment in leases $ — $ — $ — $ — Net financed sales receivables 788 (732 ) 967 (739 ) Total $ 788 $ (732 ) $ 967 $ (739 ) |
Aging of Financing Receivables | The Company’s aged financing receivables are as follows: As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Total Recorded Investment Related Allowances Recorded Investment Net of Allowances Net investment in leases $ 30 $ 68 $ 251 $ 349 $ 15,412 $ 15,761 $ (155 ) $ 15,606 Net financed sales receivables 1,678 2,772 5,446 9,896 103,451 113,347 (915 ) 112,432 Total $ 1,708 $ 2,840 $ 5,697 $ 10,245 $ 118,863 $ 129,108 $ (1,070 ) $ 128,038 As at December 31, 2018 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Total Recorded Investment Related Allowances Recorded Investment Net of Allowances Net investment in leases $ 52 $ 18 $ 253 $ 323 $ 9,274 $ 9,597 $ (155 ) $ 9,442 Net financed sales receivables 1,442 2,066 5,241 8,749 110,080 118,829 (839 ) 117,990 Total $ 1,494 $ 2,084 $ 5,494 $ 9,072 $ 119,354 $ 128,426 $ (994 ) $ 127,432 |
Financing Receivables Continues to Accrue Finance Income | The Company’s recorded investment in financing receivables with billed amounts past due for which the Company continues to accrue finance income is as follows: As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Related Allowance Recorded Investment Past Due and Accruing Net investment in leases $ 9 $ 19 $ 251 $ 279 $ 578 $ — $ 857 Net financed sales receivables 1,146 1,290 5,523 7,959 29,173 — 37,132 Total $ 1,155 $ 1,309 $ 5,774 $ 8,238 $ 29,751 $ — $ 37,989 As at December 31, 2018 Accrued and Current 30-89 Days 90+ Days Billed Financing Receivables Related Unbilled Recorded Investment Related Allowance Recorded Investment Past Due and Accruing Net investment in leases $ 28 $ 9 $ 246 $ 283 $ 1,523 $ — $ 1,806 Net financed sales receivables 558 1,472 5,860 7,890 31,507 — 39,397 Total $ 586 $ 1,481 $ 6,106 $ 8,173 $ 33,030 $ — $ 41,203 |
Impaired Financing Receivables | The following table discloses information regarding the Company’s impaired financing receivables: As at December 31, 2019 Recorded Investment Unpaid Principal Related Allowance Average Recorded Investment Interest Income Recognized Recorded investment for which there is a related allowance: Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables 708 80 (732 ) 818 — Recorded investment for which there is no related allowance: Net investment in leases — — — — — Net financed sales receivables — — — — — Total recorded investment in impaired loans Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables $ 708 $ 80 $ (732 ) $ 818 $ — As at December 31, 2018 Recorded Investment Unpaid Principal Related Allowance Average Recorded Investment Interest Income Recognized Recorded investment for which there is a related allowance: Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables 869 98 (739 ) 930 — Recorded investment for which there is no related allowance: Net investment in leases — — — — — Net financed sales receivables — — — — — Total recorded investment in impaired loans Net investment in leases $ — $ — $ — $ — $ — Net financed sales receivables $ 869 $ 98 $ (739 ) $ 930 $ — |
Allowance for Credit Losses and Investment in Financing Receivables | The Company’s activity in the allowance for credit losses for the period and the Company’s recorded investment in financing receivables is as follows: Year Ended December 31, 2019 Net Investment Net Financed in Leases Sales Receivables Allowance for credit losses Beginning balance $ 155 $ 839 Charge-offs — — Recoveries — — Provision — 76 Ending balance $ 155 $ 915 Ending balance: individually evaluated for impairment $ 155 $ 915 Financing receivables Ending balance: individually evaluated for impairment $ 15,761 $ 113,347 Year Ended December 31, 2018 Net Investment Net Financed in Leases Sales Receivables Allowance for credit losses Beginning balance $ 155 $ 922 Charge-offs — (183 ) Recoveries — — Provision — 100 Ending balance $ 155 $ 839 Ending balance: individually evaluated for impairment $ 155 $ 839 Financing receivables Ending balance: individually evaluated for impairment $ 9,597 $ 118,829 |
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 at December 31, 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 36,052 $ 50,828 |
Fair Value of Foreign Exchange Contracts | Fair value of derivatives in foreign exchange contracts: As at December 31, Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 602 $ 649 Accrued and other liabilities $ (72 ) (1,851 ) $ 530 $ (1,202 ) |
Derivatives in Foreign Currency Hedging Relationships | Derivatives in Foreign Currency Hedging relationships are as follows: Years Ended December 31, 2019 2018 2017 Foreign exchange contracts - Forwards Derivative Gain (Loss) Recognized in OCI (Effective Portion) $ 552 $ (2,219 ) $ 2,545 $ 552 $ (2,219 ) $ 2,545 Location of Derivative (Loss) Gain Reclassified from AOCI Years Ended December 31, into Income (Effective Portion) 2019 2018 2017 Foreign exchange contracts - Forwards Selling, general and administrative expenses $ (1,109 ) $ 408 $ 824 Inventory (42 ) — — Property, plant and equipment (32 ) — — $ (1,183 ) $ 408 $ 824 Years Ended December 31, 2019 2018 2017 Foreign exchange contracts - Forwards Derivative (Loss) Gain Recognized In and Out of OCI (Effective Portion) $ (22 ) $ 21 $ — |
Employees Pension and Postret_2
Employees Pension and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SERP Benefits [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation and Expense | The following assumptions were used to determine the obligation and cost of the Company’s SERP at the plan measurement dates: As at December 31, 2019 2018 2017 Discount rate 2.00 % 3.14 % 2.22 % Lump sum interest rate: First 25 years 2.12 % — — First 20 years — 3.09 % 2.39 % Thereafter 2.26 % 2.84 % 2.60 % Cost of living adjustment on benefits 1.20 % 1.20 % 1.20 % |
Summary of Amounts Accrued for the SERP | The amounts accrued for the SERP are determined as follows: Years Ended December 31, 2019 2018 Obligation, beginning of period $ 17,977 $ 19,003 Prior service cost 456 — Interest cost 564 422 Actuarial gain (157 ) (1,448 ) Obligation, end of period and unfunded status $ 18,840 $ 17,977 The following table provides disclosure of the pension benefit obligation recorded in the consolidated balance sheets: As at December 31, 2019 2018 Accrued benefits cost $ (18,840 ) $ (17,977 ) Accumulated other comprehensive gain (988 ) (1,287 ) Net amount recognized in the consolidated balance sheets $ (19,828 ) $ (19,264 ) |
Summary of Disclosure of Pension Expense | The following table provides disclosure of pension expense for the SERP for the years ended December 31: Years ended December 31, 2019 2018 2017 Interest cost $ 564 $ 422 $ 427 Pension expense $ 564 $ 422 $ 427 |
Summary of Accumulated Other Comprehensive Income and Components of Net Periodic Benefit Cost in Future Periods | The following amounts were included in accumulated other comprehensive income and will be recognized as components of net periodic benefit cost in future periods: As at December 31, 2019 2018 2017 Unrealized actuarial (gain) loss $ (1,444 ) $ (1,287 ) $ 161 Unamortized prior service cost 456 — — Net periodic benefit costs to be recognized in future periods $ (988 ) $ (1,287 ) $ 161 |
Summary of Benefit Payment are Expected in Next Five Year | The following benefit payments are expected to be made as per the current SERP assumptions and the terms of the SERP in each of the next five years, and in the aggregate: 2020 $ — 2021 — 2022 — 2023 20,298 2024 — Thereafter — $ 20,298 |
Postretirement Benefits Executives [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation and Expense | Weighted average assumptions used to determine the benefit obligation are: As at December 31, 2019 2018 2017 Discount rate 3.13 % 4.15 % 3.55 % Weighted average assumption used to determine the net postretirement benefit expense are: Years Ended December 31, 2019 2018 2017 Discount rate 4.15 % 3.55 % 4.10 % |
Summary of Amounts Accrued for the SERP | The amounts accrued for the plan are determined as follows: As at December 31, 2019 2018 Obligation, beginning of year $ 639 $ 698 Interest cost 26 24 Benefits paid — (24 ) Actuarial gain — (59 ) Obligation, end of year $ 665 $ 639 |
Summary of Disclosure of Pension Expense | The following details the net cost components, all related to continuing operations, and underlying assumptions of postretirement benefits other than pensions: Years Ended December 31, 2019 2018 2017 Interest cost $ 26 $ 24 $ 26 Pension expense $ 26 $ 24 $ 26 |
Summary of Accumulated Other Comprehensive Income and Components of Net Periodic Benefit Cost in Future Periods | The following amounts were included in accumulated other comprehensive income and will be recognized as components of net periodic benefit cost in future periods: As at December 31, 2019 2018 2017 Unrealized actuarial (gain) loss $ (50 ) $ (50 ) $ 9 |
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 in each of the next five years: 2020 $ 8 2021 9 2022 9 2023 19 2024 20 Thereafter 600 Total $ 665 |
Postretirement Benefits Canadian Employees [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation and Expense | Weighted average assumptions used to determine the benefit obligation are: As at December 31, 2019 2018 2017 Discount rate 3.05 % 3.35 % 3.35 % Weighted average assumptions used to determine the net postretirement benefit expense are: Years Ended December 31, 2019 2018 2017 Discount rate 3.80 % 3.35 % 3.65 % |
Summary of Amounts Accrued for the SERP | The amounts accrued for the plan are determined as follows: As at December 31, 2019 2018 Obligation, beginning of year $ 1,487 $ 1,678 Interest cost 49 53 Benefits paid (108 ) (104 ) Actuarial loss (gain) 153 (26 ) Unrealized foreign exchange (gain) loss 0 (114 ) Obligation, end of year $ 1,581 $ 1,487 |
Summary of Disclosure of Pension Expense | The following details the net cost components, all related to continuing operations, and underlying assumptions of postretirement benefits other than pensions: Years Ended December 31, 2019 2018 2017 Interest cost $ 49 $ 53 $ 65 Pension expense $ 49 $ 53 $ 65 |
Summary of Accumulated Other Comprehensive Income and Components of Net Periodic Benefit Cost in Future Periods | The following amounts were included in accumulated other comprehensive income and will be recognized as components of net periodic benefit cost in future periods: As at December 31, 2019 2018 2017 Unrealized actuarial loss $ 309 $ 156 $ 182 |
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 in each of the next five years: 2020 $ 100 2021 105 2022 104 2023 104 2024 103 Thereafter 1,065 Total $ 1,581 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Noncontrolling Interest [Member] | |
Non-controlling Interests | |
Summary of Movement of the Non-controlling Interest in Temporary Equity in Company's Subsidiary | The following summarizes the movement of the non-controlling interest in temporary equity, in the Company’s subsidiary for the years ended December 31, 2019, 2018 and 2017. Balance as at January 1, 2017 $ 4,980 Net loss (3,627 ) Balance as at December 31, 2017 $ 1,353 Issuance of subsidiary shares to non-controlling interests 7,796 Net loss (2,710 ) Balance as at December 31, 2018 $ 6,439 Return of capital to non-controlling interests (243 ) Share issuance costs from the issuance of subsidiary shares to a non-controlling interest 1,350 Net loss (1,638 ) Balance as at December 31, 2019 $ 5,908 |
Exit Costs, Restructuring Cha_2
Exit Costs, Restructuring Charges and Associated Impairments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Exit Costs Restructuring Charges and Associated Impairment | 2019 2018 2017 Restructuring charges $ 628 $ 2,405 $ 9,895 Asset impairments — 6,432 5,553 Costs to exit lease and restore facilities 222 619 726 Other — 86 — $ 850 $ 9,542 $ 16,174 |
Restructuring and Related Costs | 2019 2018 2017 Corporate $ 628 $ 1,529 $ 5,369 New business — 611 1,699 Other — 215 930 IMAX DMR — 50 662 Theater system maintenance — — 546 IMAX systems — — 120 Joint revenue sharing arrangements — — 21 Film post-production — — 548 $ 628 $ 2,405 $ 9,895 |
Restructuring and Accrual Activities | The following table sets forth a summary of restructuring accrual activities for the year ended December 31: Employee Severance and Benefits Balance as at December 31, 2017 $ 2,221 Restructuring charges 2,405 Cash payments (2,690 ) Balance as at December 31, 2018 $ 1,936 Restructuring charges 628 Cash payments (2,211 ) Balance as at December 31, 2019 $ 353 |
Associated Impairments | 2019 2018 2017 Property, plant and equipment $ — $ 3,680 $ 3,696 Other assets — 2,565 1,522 Prepaid expenses — 121 — Intangible assets — 66 — Film assets — — 335 $ — $ 6,432 $ 5,553 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | (in thousands of U.S. dollars, except per share amounts) 2019 Q1 Q2 Q3 Q4 Revenues $ 80,198 $ 104,797 $ 86,390 $ 124,279 Costs and expenses applicable to revenues 35,058 45,244 39,270 61,920 Gross margin $ 45,140 $ 59,553 $ 47,120 $ 62,359 Net income $ 12,487 $ 13,836 $ 10,896 $ 21,352 Net income attributable to common shareholders $ 8,265 $ 11,397 $ 9,033 $ 18,171 Net income per share attributable to common shareholders: Net income per share - basic & diluted $ 0.13 $ 0.19 $ 0.15 $ 0.29 2018 Q1 Q2 Q3 Q4 Revenues $ 84,984 $ 98,345 $ 82,108 $ 108,964 Costs and expenses applicable to revenues 34,292 37,941 39,917 54,322 Gross margin $ 50,692 $ 60,404 $ 42,191 $ 54,642 Net income $ 12,067 $ 10,255 $ 7,502 $ 3,771 Net income attributable to common shareholders $ 8,505 $ 7,625 $ 5,020 $ 1,694 Net income per share attributable to common shareholders: Net income per share - basic & diluted $ 0.13 $ 0.12 $ 0.08 $ 0.03 |
Description of the Business - A
Description of the Business - Additional Information (Details) | Dec. 31, 2019Country |
Description of Business (Textuals) [Abstract] | |
Number of Countries and Territories in which Entity Operates | 81 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Lease | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of variable interest entities | ten | ||
Period of revenue estimation from initial film release | 10 years | ||
Commission recognized as cost and expenses | $ 2 | $ 2 | $ 2.7 |
Cost of equipment and product sales prior to direct selling costs | 63.6 | 52.9 | 45.5 |
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-rentals | 2 | 2.4 | 2.9 |
Direct advertising and marketing costs included in costs and expenses applicable to revenues-rentals | 3 | 2.1 | 2.6 |
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services | $ 22.9 | 21.2 | 14.7 |
Lessee, operating lease, existence of option to extend term | true | ||
Lessee, operating lease, existence of option to extend description | The Company determined that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. | ||
Lessee, operating lease, assumptions for discount rate | The incremental borrowing rate used in the calculation of the lease liability 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 | 10.00% | ||
Remaining weighted average service life of employee | 3.0 year | ||
IMAX DMR [Member] | |||
Significant Accounting Policies [Line Items] | |||
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services | $ 22.5 | 16.5 | 15.4 |
Film Distribution [Member] | |||
Significant Accounting Policies [Line Items] | |||
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services | 0.4 | 2.2 | (0.7) |
Rental [Member] | |||
Significant Accounting Policies [Line Items] | |||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-rentals | $ 0.4 | $ 0.9 | $ 1.6 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Assets, Useful Life | 4 years | ||
Lessee, operating lease, renewal term | 1 year | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Assets, Useful Life | 10 years | ||
Lessee, operating lease, renewal term | 5 years | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of variable interest entities not a primary beneficiary | five | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of variable interest entities primary beneficiary | five |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - VIEs Total Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 889,069 | $ 873,600 |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 245,974 | 274,243 |
Variable Interest Entity, Non-consolidated, Carrying Amount, Total Assets | 448 | 447 |
Variable Interest Entity, Non-consolidated, Carrying Amount, Total Liabilities | 372 | 362 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | 9,677 | 12,203 |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | $ 15,528 | $ 11,573 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives (Details) | 12 Months Ended | |
Dec. 31, 2019 | ||
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 leases plus any reasonably assured renewal terms, and the useful life of the asset | |
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. |
Adoption of ASC Topic 842, Le_3
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net lease assets | $ 889,069 | $ 873,600 | |
Accrued and other liabilities | 112,779 | 97,724 | |
Operating Lease liability | 18,677 | $ 20,000 | |
Prepaid expenses | $ 10,237 | $ 10,294 | |
Lease, Practical Expedients, Package [true false] | true | ||
Lease, Practical Expedient, Land Easement [true false] | false | ||
Lease, Practical Expedient, Use of Hindsight [true false] | false | ||
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true | ||
Lease, Practical Expedient, Short-term Lease Recognition Exemption [true false] | true | ||
ASC Topic 842 Leases [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accrued and other liabilities | $ 17,400 | 115,150 | |
Prepaid expenses | 10,258 | ||
ASC Topic 842 Leases [Member] | As Adjusted [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net lease assets | 17,400 | ||
Accrued and other liabilities | 17,426 | ||
Operating lease asset | 20,000 | ||
Operating Lease liability | 20,000 | ||
Prepaid expenses | (36) | ||
Unamortized lease inducements and other accruals | (2,500) | ||
ASC Topic 842 Leases [Member] | As Adjusted [Member] | Maximum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses | $ 100 |
Adoption of ASC Topic 842, Le_4
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 - Impacts of Adoption of Standard Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | $ 306,849 | $ 280,658 | |
Prepaid expenses | 10,237 | 10,294 | |
Accrued and other liabilities | 112,779 | 97,724 | |
ASC Topic 842 Leases [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | $ 298,120 | ||
Prepaid expenses | 10,258 | ||
Accrued and other liabilities | $ 17,400 | 115,150 | |
ASC Topic 842 Leases [Member] | Previously Reported [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | 280,658 | ||
Prepaid expenses | 10,294 | ||
Accrued and other liabilities | $ 97,724 | ||
ASC Topic 842 Leases [Member] | As Adjusted [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | 17,462 | ||
Prepaid expenses | (36) | ||
Accrued and other liabilities | $ 17,426 |
Lease Arrangements And Financ_3
Lease Arrangements And Financing Receivables - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Lease | Jan. 01, 2019USD ($) | |
Leases [Line Items] | ||
Lessor, sales-type lease description | Several of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. 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. | |
Sales-type lease, option to purchase asset description | the Company’s leases generally do not contain an automatic transfer of title at the end of the lease term | |
Lessee, operating lease description | The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases 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 determined that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. | |
Lessee, operating lease, assumptions for discount rate | The incremental borrowing rate used in the calculation of the lease liability 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. | |
Operating Lease liability | $ 18,677 | $ 20,000 |
ASC Topic 842 Leases [Member] | As Adjusted [Member] | ||
Leases [Line Items] | ||
Operating Lease liability | 20,000 | |
Unamortized lease inducements and other accruals | $ (2,500) | |
Minimum [Member] | ||
Leases [Line Items] | ||
Sales-type lease, lease term | 10 years | |
Non-cancellable term of joint revenue sharing arrangements | 10 years | |
Lessee, operating lease, renewal term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Sales-type lease, lease term | 20 years | |
Non-cancellable term of joint revenue sharing arrangements | or longer | |
Lessee, operating lease, renewal term | 5 years |
Lease Arrangements And Financ_4
Lease Arrangements And Financing Receivables - Financing Receivables, Consisting of Net Investment in Sales-Type Leases and Receivables from Financed Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales | ||
Gross minimum lease payments receivable | $ 16,766 | $ 10,499 |
Unearned finance income | (1,005) | (902) |
Minimum lease payments receivable | 15,761 | 9,597 |
Accumulated allowance for uncollectible amounts | (155) | (155) |
Net investment in leases | 15,606 | 9,442 |
Gross financed sales receivables | 146,660 | 155,044 |
Unearned finance income | (33,313) | (36,215) |
Financed sales receivables | 113,347 | 118,829 |
Accumulated allowance for uncollectible amounts | (915) | (839) |
Net financed sales receivables | 112,432 | 117,990 |
Total financing receivables | 128,038 | 127,432 |
Net financed sales receivables due within one year | 27,595 | 26,911 |
Net financed sales receivables due after one year | $ 84,837 | $ 91,079 |
Weighted-average remaining lease term (years) | ||
Sales-type lease arrangements | 8 years 1 month 6 days | 7 years 3 months 18 days |
Weighted-average interest rate | ||
Sales-type lease arrangements | 6.68% | 8.00% |
Financed sales receivables | 9.00% | 9.10% |
Lease Arrangements And Financ_5
Lease Arrangements And Financing Receivables - Components of Lease Expense (Details) - Selling, general and administrative expenses [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Leases [Line Items] | ||||
Operating lease cost | $ 850 | [1] | $ 4,863 | $ 6,059 |
Amortization of lease assets | 2,370 | 0 | 0 | |
Interest on lease liabilities | 1,102 | 0 | 0 | |
Total lease cost | $ 4,322 | $ 4,863 | $ 6,059 | |
[1] | Includes short-term leases and variable lease costs, which are not significant for the December 31, 2019 |
Lease Arrangements And Financ_6
Lease Arrangements And Financing Receivables - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 3,607 |
Right-of-use assets obtained in exchange for lease obligations | $ 17,147 |
Lease Arrangements And Financ_7
Lease Arrangements And Financing Receivables - Lessee Operating Lease Balance Sheet Amounts and Lines (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Line Items] | |||
Operating Lease liability | $ 18,677 | $ 20,000 | |
Property, plant and equipment [Member] | |||
Leases [Line Items] | |||
Operating lease asset | 16,262 | 17,462 | |
Accrued and other liabilities [Member] | |||
Leases [Line Items] | |||
Operating Lease liability | $ 18,677 | $ 19,960 | [1] |
[1] | The Company recorded lease liabilities of approximately $20.0 million as at January 1, 2019 upon initial adoption of ASC Topic 842. In addition, unamortized lease inducements and other accruals of $2.5 million were reclassified from accrued liabilities to offset against the applicable right-of-use asset. |
Lease Arrangements And Financ_8
Lease Arrangements And Financing Receivables - Lessee Operating Lease Weighted Averages Table (Details) | Dec. 31, 2019 | Jan. 01, 2019 |
Lease Cost [Abstract] | ||
Weighted-average remaining lease term (years) | 8 years 1 month 6 days | 8 years 3 months 18 days |
Weighted-average discount rate | 5.90% | 5.80% |
Lease Arrangements And Financ_9
Lease Arrangements And Financing Receivables - Lessee Operating Lease, Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2020 | $ 3,732 | |
2021 | 3,308 | |
2022 | 2,387 | |
2023 | 2,268 | |
2024 | 2,220 | |
Thereafter | 10,060 | |
Total lease payments | 23,975 | |
Less: interest expense | (5,298) | |
Present value of lease liabilities | $ 18,677 | $ 20,000 |
Lease Arrangements And Finan_10
Lease Arrangements And Financing Receivables - Schedule of Future Minimum Lease Payments under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2019 | $ 4,215 | $ 3,847 |
2020 | 3,260 | 2,790 |
2021 | 2,318 | 2,491 |
2022 | 2,203 | 1,843 |
2023 | 2,158 | 1,759 |
Thereafter | 8,016 | 9,657 |
Total lease payments | $ 22,170 | $ 22,387 |
Variable Consideration Receiv_3
Variable Consideration Receivable from Contracts - Summary of Variable Consideration Receivable from Contracts (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Change In Contract With Customer Asset [Abstract] | |
Balance as at December 31, 2018 | $ 35,985 |
Recognition of variable consideration | 9,948 |
Accretion to finance income | 1,936 |
True-up of variable consideration receivable | 979 |
Payments received | (8,808) |
Balance as at December 31, 2019 | $ 40,040 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw materials | $ 26,538 | $ 29,705 |
Work-in-process | 4,608 | 4,733 |
Finished goods | 11,843 | 10,122 |
Total | $ 42,989 | $ 44,560 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories (Textuals) [Abstract] | ||
Finished goods inventory with title passed to customer | $ 0.7 | $ 1.9 |
Impairments and write-downs for excess and obsolete inventory | $ 0.4 | $ 0.3 |
Film Assets - Film Assets (Deta
Film Assets - Film Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Film Costs [Abstract] | ||
Completed and released films, net of accumulated amortization of $192,999 (2018 - $173,812) | $ 7,193 | $ 5,958 |
Films in production | 4,250 | 4,500 |
Films in development | 6,478 | 5,909 |
Film Costs, Total | $ 17,921 | $ 16,367 |
Film Assets - Additional Inform
Film Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Film Assets [Line Items] | |||
Accumulated amortization, completed and released films | $ 11,400,000 | ||
Film costs expected to be amortized within three years from balance sheet date | $ 11,400,000 | ||
Film costs, amortized in next operating cycle | 6,800,000 | ||
Amount of participation payments expected to be made to third parties in the next operating cycle | 1,600,000 | 1,900,000 | |
Documentary film asset impairments | $ 1,400,000 | $ 0 | |
Forecast [Member] | |||
Film Assets [Line Items] | |||
Film costs, amortized in next operating cycle | $ 7,300,000 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment | |||
Cost | $ 497,654 | $ 451,979 | |
Accumulated Depreciation | 190,805 | 171,321 | |
Net Book Value | 306,849 | 280,658 | |
Theater System Components [Member] | |||
Property, plant and equipment | |||
Cost | [1],[2],[3] | 322,492 | 287,066 |
Accumulated Depreciation | [1],[2],[3] | 133,739 | 120,273 |
Net Book Value | [1],[2],[3] | 188,753 | 166,793 |
Camera Equipment [Member] | |||
Property, plant and equipment | |||
Cost | 5,192 | 5,080 | |
Accumulated Depreciation | 4,239 | 3,839 | |
Net Book Value | 953 | 1,241 | |
Equipment leased or held for use [Member] | |||
Property, plant and equipment | |||
Cost | 327,684 | 292,146 | |
Accumulated Depreciation | 137,978 | 124,112 | |
Net Book Value | 189,706 | 168,034 | |
Asset under Construction [Member] | |||
Property, plant and equipment | |||
Cost | [4] | 14,483 | 24,327 |
Accumulated Depreciation | [4] | 0 | 0 |
Net Book Value | [4] | 14,483 | 24,327 |
Right Of Use Assets | |||
Property, plant and equipment | |||
Cost | [5] | 17,147 | |
Accumulated Depreciation | [5] | 885 | |
Net Book Value | [5] | 16,262 | |
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 | 80,850 | 77,468 | |
Accumulated Depreciation | 22,931 | 20,012 | |
Net Book Value | 57,919 | 57,456 | |
Office and Production Equipment [Member] | |||
Property, plant and equipment | |||
Cost | [6] | 41,673 | 42,252 |
Accumulated Depreciation | [6] | 25,654 | 24,295 |
Net Book Value | [6] | 16,019 | 17,957 |
Leasehold Improvements [Member] | |||
Property, plant and equipment | |||
Cost | 7,614 | 7,583 | |
Accumulated Depreciation | 3,357 | 2,902 | |
Net Book Value | 4,257 | 4,681 | |
Other property, plant and equipment [Member] | |||
Property, plant and equipment | |||
Cost | 138,340 | 135,506 | |
Accumulated Depreciation | 51,942 | 47,209 | |
Net Book Value | $ 86,398 | $ 88,297 | |
[1] | In 2019, the Company recorded a charge of $2.2 million (2018 — $0.6 million ) in cost of sales applicable to Rentals upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. | ||
[2] | Included in theater system components are assets with costs of $297.4 million (2018 —$269.8 million) and accumulated depreciation of $121.3 million (2018 — $108.4 million) that are used in joint revenue sharing arrangements. | ||
[3] | Included in theater system components are assets with costs of $7.6 million (2018 — $8.5 million) and accumulated depreciation of $6.7 million (2018 — $7.4 million) that are leased to customers under operating leases. | ||
[4] | Included in assets under construction are components with costs of $13.2 million (2018 — $15.3 million) that will be utilized to construct assets to be used in joint revenue sharing arrangements. | ||
[5] | The right-of-use assets mainly include operating leases for office and warehouse storage space. See note 4 for further discussion of the adoption impact of ASC Topic 842 on the Company’s consolidated financial statements. | ||
[6] | Fully amortized office and production equipment is still in use by the Company. In 2019, the Company identified and wrote off $4.9 million (2018 — $1.3 million) of office and production equipment that is no longer in use and fully amortized. |
Property, Plant and Equipment_2
Property, Plant and Equipment - Property, Plant and Equipment (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment | |||
Written off in cost of sales upon the upgrade of theater systems under joint revenue sharing arrangement | $ 2.2 | $ 0.6 | $ 0 |
Theater System Components [Member] | |||
Property, plant and equipment | |||
Assets leased to customers under operating lease, Gross | 7.6 | 8.5 | |
Accumulated Depreciation, assets leased to customers under operating lease | 6.7 | 7.4 | |
Assets under joint revenue sharing arrangements included in Theater system components | 297.4 | 269.8 | |
Accumulated Depreciation , Assets under joint revenue sharing arrangements included in Theater system components | 121.3 | 108.4 | |
Written off in cost of sales upon the upgrade of theater systems under joint revenue sharing arrangement | 2.2 | 0.6 | |
Asset under Construction [Member] | |||
Property, plant and equipment | |||
Assets under joint revenue sharing arrangements included in Assets under construction | 13.2 | 15.3 | |
Office and Production Equipment [Member] | |||
Property, plant and equipment | |||
Fully amortized office and production equipment written off in the period | $ 4.9 | $ 1.3 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Property plant and equipment write downs no longer in use | $ 200,000 | $ 800,000 | $ 1,200,000 |
Impairment charges against property, plant and equipment | 96,000 | 3,725,000 | 3,966,000 |
Restructuring Charges [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property, plant and equipment associated impairment charges relating to restructuring activities | 0 | 3,680,000 | 3,696,000 |
Other property, plant and equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment write downs no longer in use | 200,000 | 800,000 | 1,200,000 |
Impairment charges against property, plant and equipment | $ 100,000 | $ 300,000 | |
Other property, plant and equipment [Member] | Maximum [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charges against property, plant and equipment | $ 100,000 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Lease incentives provided to theaters | $ 19,125 | $ 10,550 |
Commissions and other deferred selling expenses | 1,501 | 2,796 |
Other investments | 2,500 | 2,500 |
Investment in content | 955 | 1,073 |
Foreign currency derivatives | 602 | 649 |
Other | 351 | 429 |
Other assets, total | $ 25,034 | $ 17,997 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Disclosure [Line Items] | |||
Income (loss) before income taxes | $ 75,336 | $ 43,605 | $ 30,011 |
Canada [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income (loss) before income taxes | 884 | (14,749) | (17,261) |
United States [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income (loss) before income taxes | (234) | (6,079) | (11,895) |
China [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income (loss) before income taxes | 51,809 | 50,446 | 50,410 |
Ireland [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income (loss) before income taxes | 17,630 | 8,071 | 3,632 |
Other [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income (loss) before income taxes | $ 5,247 | $ 5,916 | $ 5,125 |
Income Taxes - Schedule of (Pro
Income Taxes - Schedule of (Provision) Recovery of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current income tax (provision) recovery [Abstract] | ||||
Current income tax provision, Total | $ (10,006) | $ (16,441) | $ (20,807) | |
Deferred income tax (provision) recovery [Abstract] | ||||
Change in deferred income taxes | [1] | (6,762) | 6,923 | 4,017 |
Provision for income taxes | (16,768) | (9,518) | (16,790) | |
Canada [Member] | ||||
Current income tax (provision) recovery [Abstract] | ||||
Current income tax provision, Total | 2,369 | (4,893) | (6,898) | |
Deferred income tax (provision) recovery [Abstract] | ||||
Change in deferred income taxes | (3,913) | 5,993 | 8,748 | |
United States [Member] | ||||
Current income tax (provision) recovery [Abstract] | ||||
Current income tax provision, Total | 595 | 1,300 | 267 | |
Deferred income tax (provision) recovery [Abstract] | ||||
Change in deferred income taxes | (949) | 2,386 | (7,109) | |
China [Member] | ||||
Current income tax (provision) recovery [Abstract] | ||||
Current income tax provision, Total | (11,789) | (11,259) | (12,724) | |
Deferred income tax (provision) recovery [Abstract] | ||||
Change in deferred income taxes | (18) | (6) | 1,405 | |
Ireland [Member] | ||||
Current income tax (provision) recovery [Abstract] | ||||
Current income tax provision, Total | (762) | (1,095) | (735) | |
Deferred income tax (provision) recovery [Abstract] | ||||
Change in deferred income taxes | (1,923) | (1,423) | 1,085 | |
Other [Member] | ||||
Current income tax (provision) recovery [Abstract] | ||||
Current income tax provision, Total | (419) | (494) | (717) | |
Deferred income tax (provision) recovery [Abstract] | ||||
Change in deferred income taxes | $ 41 | $ (27) | $ (112) | |
[1] | For the year ended December 31, 2019, the Company has not adjusted the valuation allowance from the prior year (2018 — $nil) relating to the future utilization of deductible temporary differences, tax credits, and certain net operating loss carryforwards. Included in the provision for income taxes is the deferred tax related to amounts recorded in and reclassified from other comprehensive income in the year of $0.4 million (2018 — $0.3 million). |
Income Taxes - Schedule of (P_2
Income Taxes - Schedule of (Provision) Recovery of Income Taxes (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense Benefit Continuing Operations [Abstract] | |||
Change in valuation allowance relating to the future utilization of deductible temporary differences, tax credits, and certain net operating loss carryforwards | $ 0 | $ 0 | |
Other comprehensive income (loss), deferred income tax reclassified | $ 378,000 | $ (286,000) | $ 746,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Tax from Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
Income tax provision at combined statutory rates | $ (19,964) | $ (11,555) | $ (7,954) |
Non-deductible stock based compensation | (276) | (363) | (295) |
Other non-deductible/non-includable items | 93 | 202 | (717) |
Changes to tax reserves | 1,418 | (204) | (1,435) |
U.S. federal and state taxes | (300) | 30 | (373) |
Withholding taxes | (1,071) | (1,418) | (1,217) |
Income tax at different rates in foreign and other provincial jurisdictions | 5,019 | 3,477 | 4,147 |
Investment and other tax credits (non-refundable) | 701 | 783 | 1,570 |
Changes to deferred tax assets and liabilities resulting from audit and other tax return adjustments | (1,998) | 768 | (532) |
(Reduction of) excess tax benefit from realized stock-based compensation awards | (374) | (1,232) | (591) |
Impact of changes due to U.S. Tax Act | 0 | 0 | (9,323) |
Other | (16) | (6) | (70) |
Provision for income taxes | $ (16,768) | $ (9,518) | $ (16,790) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets Net [Abstract] | ||
Net operating loss carryforwards | $ 888 | $ 3,389 |
Investment tax credit and other tax credit carryforwards | 3,650 | 4,829 |
Write-downs of other assets | 1,220 | 1,218 |
Excess of tax accounting basis in property, plant and equipment, inventories and other assets | 6,257 | 8,243 |
Accrued pension liability | 6,393 | 6,125 |
Accrued stock-based compensation | 5,360 | 2,054 |
Other accrued reserves | 4,617 | 11,423 |
Total deferred income tax assets | 28,385 | 37,281 |
Income recognition on net investment in leases | (4,283) | (5,820) |
Total deferred income tax assets, before valuation allowance | 24,102 | 31,461 |
Valuation allowance | (197) | (197) |
Net deferred income tax asset | $ 23,905 | $ 31,264 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Tax Contingency [Line Items] | |||
Deferred tax assets, Other | $ 400,000 | $ 100,000 | |
Provision for income taxes | $ 16,768,000 | $ 9,518,000 | $ 16,790,000 |
Statutory effective rate | 0.223 | 0.218 | 0.559 |
Combined federal and provincial rate | 26.22% | ||
Tax reform changes | The effective tax rate for the year ended December 31, 2018 was significantly lower than the effective tax rate for December 31, 2017 of 55.9% due to the impact of the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted on December 22, 2017 by the U.S. government. The Tax Act made broad and complex changes to the U.S. tax code including, but not limited to reducing the U.S. federal corporate tax rate from 35% to 21%, imposing other limitations and changes that limit or eliminate various deductions, including interest expense, performance-based compensation for certain executives, and other deductions and required the re-measurement of deferred tax assets and liabilities. U.S. GAAP requires that the impact of changes to tax legislation be recognized in the period in which the law was enacted. As a result, the Company recorded a discrete tax provision charge of $9.3 million for the year ended December 31, 2017 increasing the effective tax rate for 2017 by 31.1%. The Tax Act also includes a number of other changes including: (a) the imposition of a one-time deemed repatriation tax on accumulated foreign earnings (the “Transition Tax”), (b) a 100% dividends received deduction on dividends from foreign affiliates, (c) a current inclusion in U.S. federal taxable income of earnings of foreign affiliates that are determined to be global intangible low taxed income or “GILTI”, (d) creation of the base erosion anti-abuse tax, or “BEAT”, (e) provision for an effective tax rate of 13.125% for certain income derived from outside of the U.S. (referred to as foreign derived intangible income or “FDII”) and (f) 100% expensing of qualifying fixed assets acquired after September 27, 2017. Given that the Company is a Canadian based multinational with subsidiary operations in the US and other foreign jurisdictions a number of these changes did not impact the Company. The Company is not expecting to be subject to the BEAT, Transition Tax or GILTI given its current legal and tax structures. The Company is eligible to expense qualifying fixed assets acquired after September 27, 2017, and was subject to the additional limitations imposed on the deductibility of executive compensation. The Company is not adversely impacted by the limitations placed on the deductibility of interest expense. | ||
Income taxes provided for undistributed foreign earnings | $ 0 | ||
Original tax rate | 35.00% | ||
Revised tax rate | 21.00% | ||
Impact of changes due to U.S. tax Act | $ 9,300,000 | ||
Increase in effective tax rate due to new reform | 31.10% | ||
Dividends received deduction | 100.00% | ||
Effective tax rate for FDII | 13.125% | ||
Qualifying fixed asset deductible portion | 100.00% | ||
Investment tax credits and other tax credit carryforward, expiration period | 2039 | ||
Net Operating Loss Carryforwards, Limitations on Use | Estimated U.S. and Canadian net operating loss carryforwards of $13.7 million can be carried forward to reduce taxable income through to 2037 and the remaining $2.9 million can be carried forward indefinitely. Investment tax credits and other tax credits can be carried forward to reduce income taxes payable through to 2039. | ||
Change in valuation allowance relating to the future utilization of deductible temporary differences, tax credits, and certain net operating loss carryforwards | $ 0 | $ 0 | |
Change in valuation allowance recorded to deferred income tax expense | 0 | ||
Valuation allowance | 197,000 | 197,000 | |
Provision for uncertain tax positions recorded to income tax provision | 1,400,000 | ||
Provision for uncertain tax positions recorded to shareholders' equity | 0 | ||
Total tax reserves (including interest and penalties) | 14,700,000 | 16,100,000 | |
Interest and penalty associated with tax reserves | 200,000 | ||
Cash held outside of North America | 89,900,000 | 121,900,000 | |
Withholding tax estimate on repatriation of funds | 21,900,000 | ||
Republic of China [Member] | |||
Income Tax Contingency [Line Items] | |||
Cash held/undistributed earnings intended to be permanently reinvested | $ 67,600,000 | 54,700,000 | |
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Interest and penalty associated with tax reserves | $ 100,000 | $ 100,000 | |
Maximum [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
Open Tax Years by Major Tax Jurisdiction | 2019 | ||
Maximum [Member] | Canada Revenue Agency [Member] | |||
Income Tax Contingency [Line Items] | |||
Open Tax Years by Major Tax Jurisdiction | 2019 | ||
Minimum [Member] | Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
Open Tax Years by Major Tax Jurisdiction | 2015 | ||
Minimum [Member] | Canada Revenue Agency [Member] | |||
Income Tax Contingency [Line Items] | |||
Open Tax Years by Major Tax Jurisdiction | 2015 | ||
U.S. and Canada [Member] | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards, expiration period | 2037 | ||
Net Operating Loss Carryforwards | $ 13,700,000 | ||
Remaining net operating loss carryforwards | $ 2,900,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of beginning and ending amount of tax reserves (excluding interest and penalties) | |||
Balance at beginning of the year | $ 16,136 | $ 15,927 | $ 12,593 |
Additions based on tax positions related to the current year | 812 | 4,329 | 3,639 |
Reductions for tax positions of prior years | (2,230) | (170) | (195) |
Reductions resulting from lapse of applicable statute of limitations and administrative practices | (3,950) | (110) | |
Balance at the end of the year | $ 14,718 | $ 16,136 | $ 15,927 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) Included in the Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized actuarial gain (loss) on defined benefit plan | $ (42) | $ (379) | $ (262) |
Unrecognized actuarial gain or loss on postretirement benefit plans | 0 | (23) | (32) |
Prior service cost arising during the period | 145 | 0 | 0 |
Amortization of prior service cost included in net income | (26) | 0 | 0 |
Unrealized change in cash flow hedging instruments | (145) | 581 | (667) |
Realized change in cash flow hedging instruments upon settlement | (310) | 107 | 215 |
Income tax effect on comprehensive income (loss) | $ (378) | $ 286 | $ (746) |
Other Intangible Assets - Summa
Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Intangible Assets | ||
Other Intangible Assets, Cost | $ 63,314 | $ 60,510 |
Other Intangible Assets, Accumulated Amortization | 32,967 | 26,415 |
Other Intangible Assets, Net Book Value | 30,347 | 34,095 |
Patents and Trademarks [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 12,779 | 12,266 |
Other Intangible Assets, Accumulated Amortization | 8,587 | 7,871 |
Other Intangible Assets, Net Book Value | 4,192 | 4,395 |
Licenses and Intellectual Property [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 26,168 | 26,168 |
Other Intangible Assets, Accumulated Amortization | 10,747 | 8,972 |
Other Intangible Assets, Net Book Value | 15,421 | 17,196 |
Internal Use Software [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 23,791 | 21,528 |
Other Intangible Assets, Accumulated Amortization | 13,239 | 9,264 |
Other Intangible Assets, Net Book Value | 10,552 | 12,264 |
Other [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 576 | 548 |
Other Intangible Assets, Accumulated Amortization | 394 | 308 |
Other Intangible Assets, Net Book Value | $ 182 | $ 240 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net book value of patents and trademarks disposed of in the year | $ 0.1 | $ 0.2 |
Weighted average amortization period for additions to other intangible assets | 4 years 8 months 12 days | |
Costs incurred to renew or extend the term of acquired patents and trademarks | $ 0.4 | $ 0.3 |
Internal Use Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition of other intangible assets, cost | 2.9 | |
Acquisition of other intangible assets, net book value | $ 1.9 |
Other Intangible Assets - Sum_2
Other Intangible Assets - Summary of Estimated Amortization Expenses (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Other Intangible Assets Additional Textuals [Abstract] | |
2020 | $ 6,553 |
2021 | 6,553 |
2022 | 6,553 |
2023 | 6,553 |
2024 | $ 6,553 |
Credit Facility and Other Fin_3
Credit Facility and Other Financing Arrangements - Additional Information (Details) ¥ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019CNY (¥) | Oct. 28, 2019USD ($) | Sep. 29, 2019USD ($) | Dec. 31, 2018CNY (¥) | Jul. 05, 2018USD ($) | Jul. 05, 2018CNY (¥) | Jun. 28, 2018USD ($) | |
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Credit Facility Description | On June 28, 2018, the Company entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto. The Credit Agreement expands the Company’s revolving borrowing capacity from $200.0 million to $300.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, depending on the mix of revolving and term loans comprising the incremental facility. The facility (the “Credit Facility”) matures on June 28, 2023. | ||||||||
Credit Facility Maturity Date | Jun. 28, 2023 | ||||||||
Line of credit facility covenant terms | The Credit Agreement provides that the Company is required to maintain a Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) as of the last day of any fiscal quarter (as defined in the Credit Agreement) of no greater than 3.25:1.00. In addition, the Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, capital expenditures, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets. The Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. | ||||||||
Remaining Borrowing Capacity | $ 280,000,000 | $ 260,000,000 | |||||||
Effective interest rate | 3.43% | 3.41% | |||||||
Working Capital Loan [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Current borrowing capacity | $ 30,000,000 | ¥ 200,000 | |||||||
Credit Facility Description | On July 5, 2018, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, entered into an unsecured revolving facility for up to 200.0 million Renminbi (approximately $30.0 million U.S. Dollars) to fund ongoing working capital requirements. | ||||||||
Amounts Drawn | $ 0 | ¥ 0 | |||||||
Remaining Borrowing Capacity | $ 30,000,000 | ¥ 200,000 | |||||||
Minimum [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Borrowing capacity under uncommitted accordion feature | 440,000,000 | ||||||||
Maximum [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Current borrowing capacity | $ 300,000,000 | ||||||||
Prior Credit Facility [Member] | Minimum [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Current borrowing capacity | $ 200,000,000 | ||||||||
Credit Facility [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Interest rate description | Loans under the Credit Facility will bear interest, at the Company’s option, at (i) LIBOR plus a margin ranging from 1.00% to 1.75% per annum; or (ii) the U.S. base rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company’s Total Leverage Ratio (as defined in the Credit Agreement). | ||||||||
Compliance with covenants | The Company was in compliance with all of its requirements at December 31, 2019. | ||||||||
Amounts Drawn | $ 20,000,000 | 40,000,000 | |||||||
Letters of credit and advance payment guarantees | $ 0 | 0 | |||||||
Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Interest rate margin percentage | 1.00% | ||||||||
Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Interest rate margin percentage | 0.25% | ||||||||
Credit Facility [Member] | Maximum [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Debt instrument net leverage ratio | 3.25 | ||||||||
Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Interest rate margin percentage | 1.75% | ||||||||
Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Interest rate margin percentage | 1.00% | ||||||||
Wells Fargo Foreign Exchange Facility [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Settlement gain on its foreign currency forward contracts | $ 500,000 | 1,200,000 | |||||||
Notional Amount of arrangements entered into | $ 36,100,000 | 50,800,000 | |||||||
Bank of Montreal Facility [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Credit Facility Maturity Date | Sep. 30, 2019 | ||||||||
Remaining Borrowing Capacity | $ 10,000,000 | $ 10,000,000 | |||||||
Letters of credit and advance payment guarantees | $ 0 | ||||||||
NBC Facility [Member] | |||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||
Current borrowing capacity | $ 5,000,000 | ||||||||
Letters of credit and advance payment guarantees | $ 0 |
Credit Facility and Other Fin_4
Credit Facility and Other Financing Arrangements - Bank Indebtedness (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Credit Facility | $ 20,000 | $ 40,000 |
Deferred charges on debt financing | (1,771) | (2,247) |
Total bank indebtedness | $ 18,229 | $ 37,753 |
Commitments - Summary of Compan
Commitments - Summary of Company's Contractual Obligations and Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Purchase obligations | ||
Purchase obligations, Total | $ 41,779 | |
2020, Purchase obligations | 41,440 | |
2021, Purchase obligations | 339 | |
2022, Purchase obligations | 0 | |
2023, Purchase obligations | 0 | |
2024, Purchase obligations | 0 | |
Thereafter, Purchase obligations | 0 | |
Operating lease obligations | ||
Total lease payments | 22,170 | $ 22,387 |
2020, Operating Leases | 4,215 | 3,847 |
2021, Operating Leases | 3,260 | 2,790 |
2022, Operating Leases | 2,318 | 2,491 |
2023, Operating Leases | 2,203 | 1,843 |
2024, Operating Leases | 2,158 | 1,759 |
Thereafter, Operating Leases | 8,016 | 9,657 |
Credit Facility | ||
Credit Facility, Total | 20,000 | $ 40,000 |
2020, Credit Facility | 0 | |
2021, Credit Facility | 0 | |
2022, Credit Facility | 0 | |
2023, Credit Facility | 20,000 | |
2024, Credit Facility | 0 | |
Thereafter, Credit Facility | 0 | |
Total contractual obligations and commitments | ||
Total contractual obligations and commitments, Total | 106,493 | |
2020, Total contractual obligations and commitments | 45,763 | |
2021, Total contractual obligations and commitments | 3,713 | |
2022, Total contractual obligations and commitments | 2,431 | |
2023, Total contractual obligations and commitments | 42,624 | |
2024, Total contractual obligations and commitments | 2,281 | |
Thereafter, Total contractual obligations and commitments | 9,681 | |
Pension Obligations [Member] | ||
Pension and Postretirement benefits obligations | ||
Total expected future benefit payment | 20,298 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 20,298 | |
2024 | 0 | |
Thereafter | 0 | |
Postretirement Benefits Obligations [Member] | ||
Pension and Postretirement benefits obligations | ||
Total expected future benefit payment | 2,246 | |
2020 | 108 | |
2021 | 114 | |
2022 | 113 | |
2023 | 123 | |
2024 | 123 | |
Thereafter | $ 1,665 |
Commitments - Summary of Inform
Commitments - Summary of Information About Total Rental Expenses Under Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Total rent expense | $ 3,753 | $ 4,303 | $ 5,685 |
Commitments - Additional Inform
Commitments - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Line Of Credit Facility [Line Items] | ||
Accrued rent and lease inducements recognized as an offset to rent expense included in accrued liabilities | $ 300,000 | $ 3,000,000 |
Accrued commission on sale or lease of the theater systems payable in future periods | 600,000 | 1,800,000 |
Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of credit and advance payment guarantees | 0 | $ 0 |
Bank of Montreal Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of credit and advance payment guarantees | 0 | |
NBC Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Letters of credit and advance payment guarantees | $ 0 |
Contingencies and Guarantees -
Contingencies and Guarantees - Additional Information (Details) - USD ($) | 12 Months Ended | 25 Months Ended | 51 Months Ended | 95 Months Ended | |
Dec. 31, 2019 | Dec. 14, 2015 | Mar. 27, 2008 | Dec. 02, 2011 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||||
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 | ||||
Damages sought | $ 10,400,000 | ||||
Financial Guarantees | $ 0 | ||||
Product Warranty Accrual | 200,000 | $ 200,000 | |||
Indemnification of its directors/officers | 0 | $ 0 | |||
Other Indemnification | $ 0 | ||||
Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Counterclaim sought | $ 24,000,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan trustee purchases | 615,000 | 300,000 | |
Cash proceeds on stock option exercises | $ 2,404 | $ 1,017 | $ 16,668 |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued from treasury | 19,088 | 12,750 | 405,229 |
Plan trustee purchases | 67,840 | 263,112 | |
Total stock options exercised | 86,928 | 12,750 | 668,341 |
Cash proceeds on stock option exercises | $ 1,752 | $ 218 | $ 14,652 |
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issued from treasury | 7,127 | ||
Plan trustee purchases | 404,719 | 462,137 | 422,022 |
Shares withheld for tax withholdings | 29,577 | 72,056 | 27,630 |
Total RSUs vested | 434,296 | 534,193 | 456,779 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) | May 03, 2018shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2019USD ($)$ / sharesshares | Jun. 06, 2019shares | Dec. 31, 2016shares | Jun. 06, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation costs recorded for the period | $ | $ 22,800,000 | $ 22,600,000 | $ 23,000,000 | ||||||
Stock-based compensation expense | $ | $ 22,830,000 | $ 22,585,000 | $ 23,010,000 | ||||||
Common shares purchased in open market by trustee in connection with RSUs | 615,000 | 300,000 | |||||||
Weighted average price of common shares purchased in open market by trustee in connection with RSUs | $ / shares | $ 22.49 | $ 20.55 | |||||||
Number of treasury shares held in trust for future settlement of share based awards | 187,020 | 44,579 | |||||||
Value of treasury shares held in trust for future settlement of share based awards | $ | $ 4,038,000 | $ 4,038,000 | $ 916,000 | $ 4,038,000 | |||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 5,809,468 | 5,666,976 | 4,993,014 | ||||||
Parent [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Details of the share repurchase program | In 2017, the Company’s Board of Directors approved a $200.0 million share repurchase program for shares of the Company’s common stock. The share purchase program expires on June 30, 2020. The repurchases may be made either in the open market or through private transactions, 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 | $ | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | ||||||
Stock Repurchase Program Expiration Date | Jun. 30, 2020 | ||||||||
Repurchase of common shares | 134,384 | 3,436,783 | |||||||
Stock Acquired, Average Cost per Share | $ / shares | $ 19.76 | $ 20.78 | |||||||
Non-controlling Interests [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Details of the share repurchase program | In 2018, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to buy back shares of IMAX China in an amount not to exceed 10% of the total number of issued shares of IMAX China as at May 3, 2018 (35,818,112 shares). The share repurchase program expired on June 6, 2019. In 2019, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China in an amount not to exceed 10% of the total number of issued shares of IMAX China as at June 6, 2019 (35,605,560 shares). The share purchase program expires on the date of the 2020 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. 6, 2019 | ||||||||
Repurchase of common shares | 8,051,500 | ||||||||
Stock Acquired, Average Cost per Share | (per share) | $ 18.63 | $ 2.38 | |||||||
Stock Repurchase Program, maximum percentage of shares to be repurchased | 10.00% | 10.00% | |||||||
Stock Repurchase Program, Authorized number of shares | 35,818,112 | 35,605,560 | |||||||
Employee Stock Option [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation costs recorded for the period | $ | $ 8,329,000 | $ 5,950,000 | $ 4,462,000 | ||||||
Reserved common shares for future issuance | 8,944,999 | 8,944,999 | 9,767,307 | 8,944,999 | |||||
Options outstanding | 5,732,209 | 5,732,209 | 5,465,046 | 5,082,100 | 5,732,209 | 5,190,542 | |||
Options common shares were vested and exercisable | 4,801,272 | 4,801,272 | 3,990,970 | 4,801,272 | |||||
Income tax benefit from stock based compensation | $ | $ 1,900,000 | $ 1,200,000 | $ 1,000,000 | ||||||
Options fully vested and unvested, weighted average exercise price | $ / shares | $ 26.82 | $ 26.82 | $ 26.82 | ||||||
Aggregate intrinsic value of vested stock options | $ | $ 900,000 | $ 900,000 | $ 900,000 | ||||||
Options fully vested and unvested, weighted average remaining contractual life | 4 years 6 months | ||||||||
Options exercisable intrinsic value | $ | $ 900,000 | $ 900,000 | $ 900,000 | ||||||
Weighted average remaining contractual life of exercisable option | 4 years 3 months 18 days | ||||||||
Intrinsic value of options exercised | $ | $ 200,000 | $ 100,000 | $ 6,800,000 | ||||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 5,732,209 | 5,389,433 | 4,413,206 | ||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock based awards vesting period | 4 years | ||||||||
Stock based awards expiration period or remaining contractual life | 10 years | ||||||||
Restricted Share Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation costs recorded for the period | $ | $ 12,394,000 | $ 15,189,000 | $ 16,033,000 | ||||||
Number RSUs outstanding | 1,065,347 | 1,065,347 | 1,033,871 | 995,329 | 1,065,347 | 1,124,180 | |||
Accrued liabilities | $ | $ 400,000 | $ 400,000 | $ 400,000 | ||||||
Restricted Stock Unit Contingent Right | 1 | ||||||||
Restricted Stock Unit Economic Equivalent | 1 | ||||||||
Tax benefits realized | $ | $ 1,600,000 | $ 1,400,000 | $ 3,600,000 | ||||||
RSU that may vest on a shorter period | 83,770 | 83,770 | 147,823 | 213,661 | 83,770 | 300,000 | |||
RSU awards, Granted | 687,475 | 659,282 | 463,010 | ||||||
RSU awards, Vested and settled | 434,296 | 534,193 | 456,779 | ||||||
Common shares purchased in open market by trustee in connection with RSUs | 404,719 | 462,137 | 422,022 | ||||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 77,259 | 277,543 | 579,808 | ||||||
Restricted Share Units [Member] | Certain Advisor [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSU awards, Granted | 12,580 | 0 | 0 | ||||||
RSU awards, Vested and settled | 12,580 | 0 | 0 | ||||||
Stock-based compensation expense | $ | $ 100,000 | $ 0 | $ 0 | ||||||
Restricted Share Units [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock based awards vesting period | 4 years | ||||||||
Restricted Share Units [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock based awards vesting period | 1 year | ||||||||
Options Non Employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation costs charged for the period | $ | $ 0 | 100,000 | |||||||
Accrued liabilities | $ | $ 0 | $ 0 | $ 0 | ||||||
CSSBPs [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation costs recorded for the period | $ | 353,000 | ||||||||
Cash paid in settlement | $ | $ 600,000 |
Capital Stock - Stock Compensat
Capital Stock - Stock Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 22,830 | $ 22,585 | $ 23,010 |
Cost and Expenses Applicable to Revenues [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,709 | 1,657 | 1,704 |
Selling, general and administrative expenses [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 20,750 | 20,102 | 20,393 |
Research and Development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 371 | 452 | 556 |
Executive Transition Costs [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 320 | ||
Exit Costs, Restructuring Charges and Associated Impairments [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 54 | $ 357 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option expense | $ 22,800 | $ 22,600 | $ 23,000 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option expense | $ 8,329 | $ 5,950 | $ 4,462 |
Capital Stock - Total Stock-Bas
Capital Stock - Total Stock-Based Compensation Expense Related to Non-Vested Employee Stock Options not yet Recognized (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense related to non-vested employee stock options not yet recognized | $ 4,073 | $ 8,482 | $ 7,441 |
Capital Stock - Weighted Averag
Capital Stock - Weighted Average Period over Which Awards Expected to be Recognized (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period awards are expected to be recognized (in years) | 2 years 8 months 12 days | 1 year 10 months 24 days | 2 years 3 months 18 days |
Capital Stock - Weighted Aver_2
Capital Stock - Weighted Average Fair Value of all Stock Options Granted to Employees and Directors and Assumptions used to Estimate Average Fair Value of Stock Option (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options valuation assumptions | |||
Weighted average fair value per share | $ 6.65 | $ 6.74 | $ 8.31 |
Average risk-free interest rate | 2.64% | 2.67% | 2.34% |
Expected volatility | 31.00% | 30.00% | 30.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Stock options valuation assumptions | |||
Expected option life (in years) | 6 years 8 months 23 days | 5 years 21 days | 4 years 8 months 15 days |
Maximum [Member] | |||
Stock options valuation assumptions | |||
Expected option life (in years) | 10 years | 7 years | 5 years 9 months 29 days |
Capital Stock - Summary of Expe
Capital Stock - Summary of Expense and Accrued Liability Related to Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | $ 22,800 | $ 22,600 | $ 23,000 |
China Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | 320 | 217 | 1,034 |
China RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | $ 1,664 | $ 1,229 | 1,124 |
CSSBPs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense | $ 353 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, beginning of year | 5,465,046 | 5,082,100 | 5,190,542 |
Granted | 1,016,882 | 1,082,123 | 854,764 |
Exercised | (86,928) | (12,750) | (668,341) |
Forfeited | (336,493) | (69,332) | (108,551) |
Expired | (299,134) | (507,977) | (89,958) |
Cancelled | (27,164) | (109,118) | (96,356) |
Options outstanding, end of year | 5,732,209 | 5,465,046 | 5,082,100 |
Options exercisable, end of year | 4,801,272 | 3,990,970 | 3,913,088 |
Options outstanding, weighted average exercise price per share, beginning of period | $ 27.63 | $ 29.31 | $ 28.35 |
Granted, weighted average exercise price per share | 20.66 | 21.95 | 30.07 |
Exercised, weighted average exercise price per share | 20.16 | 17.08 | 21.92 |
Forfeited, weighted average exercise price per share | 23.63 | 29.99 | 32.42 |
Expired, weighted average exercise price per share | 25.82 | 31.69 | 32.29 |
Cancelled, weighted average exercise price per share | 31.13 | 30.44 | 29.28 |
Options outstanding, weighted average exercise price per share, end of period | 26.82 | 27.63 | 29.31 |
Options exercisable, weighted average exercise price per share, end of period | $ 27.40 | $ 28.48 | $ 28.96 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU expenses | $ 22,800 | $ 22,600 | $ 23,000 |
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU expenses | $ 12,394 | $ 15,189 | $ 16,033 |
Capital Stock -Total Stock-Base
Capital Stock -Total Stock-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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense related to non-vested RSUs not yet recognized | $ 23,548 | $ 18,597 | $ 22,440 |
Weighted average period awards are expected to be recognized (in years) | 2 years 8 months 12 days | 2 years 2 months 12 days | 2 years 1 month 6 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs outstanding, beginning of year | 1,033,871 | 995,329 | 1,124,180 |
Granted | 687,475 | 659,282 | 463,010 |
Vested and settled | (434,296) | (534,193) | (456,779) |
Forfeited | (221,703) | (86,547) | (135,082) |
RSUs outstanding, end of year | 1,065,347 | 1,033,871 | 995,329 |
RSUs outstanding, weighted average grant date fair value per share, beginning of period | $ 25.70 | $ 32.68 | $ 33.01 |
Granted, weighted average grant date fair value per share | 22.30 | 20.99 | 30.47 |
Vested and settled, weighted average grant date fair value per share | 27.54 | 32.33 | 31.66 |
Forfeited, weighted average grant date fair value per share | 23.68 | 29.19 | 32.03 |
RSUs outstanding, weighted average grant date fair value per share, end of period | $ 23.17 | $ 25.70 | $ 32.68 |
Capital Stock - Summary of Numb
Capital Stock - Summary of Number of RSUs Issued From Carve-Out Balance (Details) - Restricted Share Units [Member] - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU carve out, balance beginning of period | 147,823 | 213,661 |
RSUs issued from carve-out | (64,053) | (65,838) |
RSU carve out, balance end of period | 83,770 | 147,823 |
Capital Stock - Basic and Dilut
Capital Stock - Basic and Diluted Per-share Computations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||||
Net income attributable to common shareholders | $ 46,866 | $ 22,844 | $ 2,344 | |
Weighted average number of common shares (000's): | ||||
Issued and outstanding, beginning of period | 61,175,852 | 61,433,589 | 64,696,000 | 66,160,000 |
Weighted average number of shares repurchased during the period, net | (124,000) | (1,621,000) | (780,000) | |
Weighted average number of shares used in computing basic earnings per share | 61,310,000 | 63,075,000 | 65,380,000 | |
Assumed exercise of stock options and RSUs, net of shares assumed repurchased | 179,000 | 132,000 | 160,000 | |
Weighted average number of shares used in computing diluted earnings per share | 61,489,000 | 63,207,000 | 65,540,000 |
Consolidated Statements of Op_3
Consolidated Statements of Operations Supplemental Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)exhibitorTheaterFilm | Dec. 31, 2018USD ($)exhibitorTheaterFilm | Dec. 31, 2017USD ($)Film | |
Selling Expenses | |||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-equipment and product sales | $ 2,000 | $ 2,400 | $ 2,900 |
Direct advertising and marketing costs included in costs and expenses applicable to revenues-rentals | 3,000 | 2,100 | 2,600 |
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services | 22,900 | 21,200 | 14,700 |
Foreign Exchange | |||
Foreign exchange translation gain (Ioss) | $ (900) | $ (1,700) | 1,000 |
Collaborative Arrangements | |||
Total number of exhibitors under joint revenue sharing agreements | exhibitor | 39 | 35 | |
Total number of theater systems under joint revenue sharing agreements | Theater | 1,223 | 1,185 | |
Total number of operating theaters under joint revenue sharing agreement | Theater | 870 | 798 | |
Average percentage of the box-office receipts of the film for recovering digital re-mastering cost | 12.50% | ||
IMAX DMR films exhibited in the period | Film | 72 | 80 | |
Amounts attributable to transactions arising between the company and its customers under IMAX DMR arrangements | $ 120,800 | $ 110,800 | $ 108,900 |
Number of significant co-produced film arrangement | Film | 2 | 1 | |
Number of other co-produced film arrangements | Film | 3 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 889,069 | 873,600 | |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 245,974 | 274,243 | |
Amounts attributable to transactions between the company and other parties involved in the production of films included in cost and expense | 600 | 500 | $ 1,200 |
Co-produced television collaborative arrangement revenue | 400 | 300 | 20,400 |
Co-produced television collaborative arrangement costs and expenses | 300 | 33,400 | |
Co-produced television collaborative arrangement net revenue recorded | 20,100 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Collaborative Arrangements | |||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | 9,677 | 12,203 | |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 15,528 | 11,573 | |
Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | |||
Collaborative Arrangements | |||
Amounts attributable to transactions arising between the company and its customers under joint revenue sharing arrangements | $ 92,000 | 86,600 | 80,600 |
Minimum [Member] | |||
Collaborative Arrangements | |||
Non-cancellable term of joint revenue sharing arrangements | 10 years | ||
Maximum [Member] | |||
Collaborative Arrangements | |||
Non-cancellable term of joint revenue sharing arrangements | or longer | ||
Co-produced television collaborative arrangement costs and expenses | $ 100 | ||
Equipment and Product Sales [Member] | |||
Selling Expenses | |||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-equipment and product sales | 3,100 | 2,900 | 3,600 |
Rental [Member] | |||
Selling Expenses | |||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-equipment and product sales | $ 400 | $ 900 | $ 1,600 |
Receivable Provisions, Net of_3
Receivable Provisions, Net of Recoveries - Receivable Provisions, Net of Recoveries (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivable Provisions Net Of Recoveries [Abstract] | |||
Accounts receivable provisions, net of recoveries | $ 2,354 | $ 3,030 | $ 1,967 |
Financing receivable provisions, net of recoveries | 76 | 100 | 680 |
Receivable provisions, net of recoveries | $ 2,430 | $ 3,130 | $ 2,647 |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Non-cash Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Decrease (increase) in: | ||||
Accounts receivable | $ (8,621) | $ 33,942 | $ (37,807) | |
Financing receivables | (320) | 1,325 | (7,253) | |
Inventories | 1,942 | (14,022) | 10,832 | |
Prepaid expenses | (290) | (3,703) | (924) | |
Variable consideration receivable | (4,056) | 0 | 0 | |
Other assets | (2,063) | (3,084) | (457) | |
Increase (decrease) in: | ||||
Accounts payable | (11,774) | 7,749 | 4,204 | |
Accrued and other liabilities | [1] | (8,505) | (3,266) | (642) |
Deferred revenue | (12,242) | (6,494) | 22,906 | |
Changes in other non-cash operating assets and liabilities | (45,929) | 12,447 | (9,141) | |
Cash payments made on account of: | ||||
Income taxes | 17,298 | 12,684 | 22,829 | |
Interest | $ 1,231 | $ 502 | $ 826 | |
[1] | Excluded the $17.4 million non-cash impact of adopting ASC Topic 842 in 2019 |
Consolidated Statements of Ca_5
Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Non-cash Operating Assets and Liabilities (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Elements [Line Items] | |||
Accrued and other liabilities | $ 112,779 | $ 97,724 | |
ASC Topic 842 Leases [Member] | |||
Supplemental Cash Flow Elements [Line Items] | |||
Accrued and other liabilities | $ 17,400 | $ 115,150 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Summary of Depreciation and amortization | ||||
Film assets | [1] | $ 19,176 | $ 15,679 | $ 31,031 |
Property, plant and equipment | ||||
Joint revenue sharing arrangements | 23,153 | 20,739 | 18,112 | |
Other property, plant and equipment | 12,477 | 13,164 | 11,803 | |
Other intangible assets | 6,290 | 5,507 | 4,319 | |
Other assets | 1,882 | 1,242 | 980 | |
Deferred financing costs | 509 | 1,106 | 562 | |
Depreciation and amortization | $ 63,487 | $ 57,437 | $ 66,807 | |
[1] | Included in film asset amortization is a charge of $nil (2018 — $nil; 2017 — $1.5 million) relating to changes in estimates based on the ultimate recoverability of future films. |
Consolidated Statements of Ca_7
Consolidated Statements of Cash Flows Supplemental Information - Summary of Depreciation and Amortization (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Charge recorded in film asset amortization relating to changes in estimates based on ultimate recoverability of future films | $ 0 | $ 0 | $ 1,500 |
Consolidated Statements of Ca_8
Consolidated Statements of Cash Flows Supplemental Information - Write-downs, Net of Recoveries (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Asset impairments | ||||
Property, plant and equipment | $ 96,000 | $ 3,725,000 | $ 3,966,000 | |
Other assets | 2,565,000 | 2,533,000 | ||
Prepaid expenses | 121,000 | 0 | ||
Other intangible assets | 66,000 | 0 | ||
Impairment of investments | 0 | 1,225,000 | ||
Film assets | 1,379,000 | 0 | 17,363,000 | |
Other charges | ||||
Accounts receivable (net of recoveries) | 2,354,000 | 3,030,000 | 1,967,000 | |
Financing receivables | 76,000 | 100,000 | 680,000 | |
Inventories | 446,000 | 250,000 | 500,000 | |
Property, plant and equipment | [1] | 2,360,000 | 1,762,000 | 1,224,000 |
Other intangible assets | 95,000 | 151,000 | 63,000 | |
Other assets | 0 | 47,000 | ||
Write-downs, net of recoveries | 6,806,000 | 11,770,000 | 29,568,000 | |
Inventory charges | ||||
Recorded in costs and expenses applicable to revenues - product & equipment sales | 276,000 | 250,000 | 500,000 | |
Recorded in costs and expenses applicable to revenues - services | 170,000 | 0 | 0 | |
Inventory charges | $ 446,000 | $ 250,000 | $ 500,000 | |
[1] | In 2019, the Company recorded a charge of $0.2 million (2018 — $0.8 million; 2017 — $1.2 million) reflecting property, plant and equipment that were no longer in use. In 2019, the Company recorded a charge of $2.2 million in cost of sales applicable to Rentals upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. In 2018, the Company also recorded a charge of $0.6 million in cost of sales applicable to Rentals, and $0.4 million in revenue applicable to Rentals upon the upgrade of xenon-based digital systems under operating lease arrangements to laser-based digital systems under sales or sales-type lease arrangements. No such charge was recorded in the year ended December 31, 2017. |
Consolidated Statements of Ca_9
Consolidated Statements of Cash Flows Supplemental Information - Write-downs, Net of Recoveries (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Property plant and equipment write downs no longer in use | $ 0.2 | $ 0.8 | $ 1.2 |
Theater system components written off in Cost of Sales | $ 2.2 | 0.6 | 0 |
Theater system components written off in Revenue | $ 0.4 | $ 0 |
Consolidated Statements of C_10
Consolidated Statements of Cash Flows Supplemental Information - Significant Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net accruals related to: | ||
Purchases of property, plant and equipment | $ 496 | $ 227 |
Investment in joint revenue sharing arrangements | (2,013) | (61) |
Acquisition of other intangible assets | (51) | 89 |
Net accruals | $ (1,568) | $ 255 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | $ 124,279 | $ 86,390 | $ 104,797 | $ 80,198 | $ 108,964 | $ 82,108 | $ 98,345 | $ 84,984 | $ 395,664 | [1] | $ 374,401 | [1] | $ 380,767 | [1] | |
Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 88,348 | 73,371 | |||||||||||||
Network Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 196,836 | 184,164 | |||||||||||||
Network Business [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 76,071 | 73,371 | |||||||||||||
Network Business [Member] | IMAX DMR [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 120,765 | 110,793 | |||||||||||||
Network Business [Member] | IMAX DMR [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Network Business [Member] | Joint Revenue Sharing Arrangements – Contingent Rent [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 75,932 | 73,371 | |||||||||||||
Network Business [Member] | Joint Revenue Sharing Arrangements – Contingent Rent [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 75,932 | 73,371 | |||||||||||||
Network Business [Member] | IMAX systems – Contingent Rent [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 139 | 0 | |||||||||||||
Network Business [Member] | IMAX systems – Contingent Rent [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 139 | 0 | |||||||||||||
Theater Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 180,478 | 168,404 | |||||||||||||
Theater Business [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 11,014 | 0 | |||||||||||||
Theater Business [Member] | Sales and Sales-type Leases [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 96,310 | 88,432 | |||||||||||||
Theater Business [Member] | Sales and Sales-type Leases [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Theater Business [Member] | Ongoing Fees and Finance Income [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 11,613 | 12,224 | |||||||||||||
Theater Business [Member] | Ongoing Fees and Finance Income [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Theater Business [Member] | Joint Revenue Sharing Arrangements – Fixed Fees [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 11,014 | 9,706 | |||||||||||||
Theater Business [Member] | Joint Revenue Sharing Arrangements – Fixed Fees [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 11,014 | 0 | |||||||||||||
Theater Business [Member] | Theater System Maintenance [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 53,151 | 49,684 | |||||||||||||
Theater Business [Member] | Theater System Maintenance [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Theater Business [Member] | Other Theater [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 8,390 | 8,358 | |||||||||||||
Theater Business [Member] | Other Theater [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
New Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | [1] | 2,754 | 5,769 | $ 24,522 | |||||||||||
New Business [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Other [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 15,596 | 16,064 | |||||||||||||
Other [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 1,263 | 0 | |||||||||||||
Other [Member] | Film Post-production [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 7,392 | 9,516 | |||||||||||||
Other [Member] | Film Post-production [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Other [Member] | Film Distribution [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 4,818 | 3,446 | |||||||||||||
Other [Member] | Film Distribution [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Other [Member] | Other [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 3,386 | 3,102 | |||||||||||||
Other [Member] | Other [Member] | Lease Arrangements [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 1,263 | 0 | |||||||||||||
Fixed Consideration [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 169,502 | 175,716 | |||||||||||||
Fixed Consideration [Member] | Network Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Fixed Consideration [Member] | Network Business [Member] | IMAX DMR [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Fixed Consideration [Member] | Network Business [Member] | Joint Revenue Sharing Arrangements – Contingent Rent [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Fixed Consideration [Member] | Network Business [Member] | IMAX systems – Contingent Rent [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Fixed Consideration [Member] | Theater Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 159,356 | 162,100 | |||||||||||||
Fixed Consideration [Member] | Theater Business [Member] | Sales and Sales-type Leases [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 86,202 | 82,128 | |||||||||||||
Fixed Consideration [Member] | Theater Business [Member] | Ongoing Fees and Finance Income [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 11,613 | 12,224 | |||||||||||||
Fixed Consideration [Member] | Theater Business [Member] | Joint Revenue Sharing Arrangements – Fixed Fees [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 9,706 | |||||||||||||
Fixed Consideration [Member] | Theater Business [Member] | Theater System Maintenance [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 53,151 | 49,684 | |||||||||||||
Fixed Consideration [Member] | Theater Business [Member] | Other Theater [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 8,390 | 8,358 | |||||||||||||
Fixed Consideration [Member] | New Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 2,754 | 4,050 | |||||||||||||
Fixed Consideration [Member] | Other [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 7,392 | 9,566 | |||||||||||||
Fixed Consideration [Member] | Other [Member] | Film Post-production [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 7,392 | 9,516 | |||||||||||||
Fixed Consideration [Member] | Other [Member] | Film Distribution [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Fixed Consideration [Member] | Other [Member] | Other [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 50 | |||||||||||||
Variable Consideration [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 137,814 | 125,314 | |||||||||||||
Variable Consideration [Member] | Network Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 120,765 | 110,793 | |||||||||||||
Variable Consideration [Member] | Network Business [Member] | IMAX DMR [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 120,765 | 110,793 | |||||||||||||
Variable Consideration [Member] | Network Business [Member] | Joint Revenue Sharing Arrangements – Contingent Rent [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | Network Business [Member] | IMAX systems – Contingent Rent [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | Theater Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 10,108 | 6,304 | |||||||||||||
Variable Consideration [Member] | Theater Business [Member] | Sales and Sales-type Leases [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 10,108 | 6,304 | |||||||||||||
Variable Consideration [Member] | Theater Business [Member] | Ongoing Fees and Finance Income [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | Theater Business [Member] | Joint Revenue Sharing Arrangements – Fixed Fees [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | Theater Business [Member] | Theater System Maintenance [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | Theater Business [Member] | Other Theater [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | New Business [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 1,719 | |||||||||||||
Variable Consideration [Member] | Other [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 6,941 | 6,498 | |||||||||||||
Variable Consideration [Member] | Other [Member] | Film Post-production [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 0 | 0 | |||||||||||||
Variable Consideration [Member] | Other [Member] | Film Distribution [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | 4,818 | 3,446 | |||||||||||||
Variable Consideration [Member] | Other [Member] | Other [Member] | |||||||||||||||
Revenue from Contracts with Customers [Line Items] | |||||||||||||||
Revenues | $ 2,123 | $ 3,052 | |||||||||||||
[1] | The Company’s largest customer represents 16.5% of total revenues as at December 31, 2019, (2018 —17.1%; 2017 —16.4%). |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Revenue Remaining Performance Obligation | $ 17.7 | $ 21.9 |
Segmented Information - Additio
Segmented Information - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting (Textual) [Abstract] | |||
Number of Primary Groups | Segment | 4 | ||
Description of products and services from which each reportable segment derives its revenues | The Company’s reportable segments are organized under four primary groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box office results and which includes the reportable segment of IMAX DMR and contingent rent from the joint revenue sharing arrangements and IMAX systems segments (hybrid joint revenue sharing arrangements, which take the form of a sale are reflected under the IMAX systems segment of Theater Business); (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes hybrid (fixed and contingent) revenues and upfront installation costs from sales arrangements previously reported in the joint revenue sharing arrangements segment and after-market sales of projection system parts and 3D glasses from the other segment; (3) New Business, which includes which includes home entertainment, and other new business initiatives that are in the development, start-up and/or wind-up phases, and (4) Other; which includes the film post-production and distribution segments, certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. | ||
Description of the basis of accounting for transactions between reportable segments | The accounting policies of the segments are the same as those described in note 2. | ||
Number of Reportable Segments | Segment | 8 | ||
Percentage of total revenues represented by largest customer | 16.50% | 17.10% | 16.40% |
Marketing and commission costs | $ 2,000,000 | $ 2,400,000 | $ 2,900,000 |
Inventories | 446,000 | 250,000 | 500,000 |
Recorded in costs and expenses applicable to revenues - product & equipment sales | 276,000 | 250,000 | 500,000 |
Recorded in costs and expenses applicable to revenues - services | $ 170,000 | 0 | 0 |
Goodwill allocation method | There has been no change in the allocation of goodwill from the prior year. | ||
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. | ||
IMAX DMR [Member] | |||
Segment Reporting (Textual) [Abstract] | |||
Marketing costs (recovery) | $ 22,500,000 | 16,500,000 | 15,400,000 |
Joint revenue sharing arrangements [Member] | |||
Segment Reporting (Textual) [Abstract] | |||
Advertising, marketing and commission costs (recovery) | 4,500,000 | 3,600,000 | 4,500,000 |
IMAX systems [Member] | |||
Segment Reporting (Textual) [Abstract] | |||
Advertising, marketing and commission costs (recovery) | 2,000,000 | 2,400,000 | 2,900,000 |
Film Distribution [Member] | |||
Segment Reporting (Textual) [Abstract] | |||
Marketing costs (recovery) | $ 400,000 | $ 2,200,000 | $ 700,000 |
Segmented Information - Inter-S
Segmented Information - Inter-Segment Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Revenues | |||||||||||||||
Revenues | $ 124,279 | $ 86,390 | $ 104,797 | $ 80,198 | $ 108,964 | $ 82,108 | $ 98,345 | $ 84,984 | $ 395,664 | [1] | $ 374,401 | [1] | $ 380,767 | [1] | |
Gross margins | |||||||||||||||
Gross margins | 62,359 | $ 47,120 | $ 59,553 | $ 45,140 | 54,642 | $ 42,191 | $ 60,404 | $ 50,692 | 214,172 | 207,929 | 185,246 | ||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 63,487 | 57,437 | 66,807 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 6,806 | 11,770 | 29,568 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 47,910 | 48,178 | 66,777 | ||||||||||||
Assets | |||||||||||||||
Assets | 889,069 | 873,600 | 889,069 | 873,600 | |||||||||||
IMAX DMR [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 120,765 | 110,793 | 108,853 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | [2] | 78,592 | 72,773 | 71,789 | |||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 16,117 | 13,602 | 15,779 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 15 | ||||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 99 | 55 | 518 | ||||||||||||
Assets | |||||||||||||||
Assets | 46,417 | 38,117 | 46,417 | 38,117 | |||||||||||
Joint Revenue Sharing Arrangements – Contingent Rent [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 75,932 | 73,371 | 70,444 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | [2] | 47,935 | 48,856 | 47,337 | |||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 25,036 | 21,970 | 19,092 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 2,207 | 1,193 | 944 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 40,489 | 34,810 | 42,634 | ||||||||||||
Assets | |||||||||||||||
Assets | 231,626 | 223,799 | 231,626 | 223,799 | |||||||||||
IMAX systems – Contingent Rent [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 139 | 0 | 3,890 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | 139 | 0 | 3,890 | ||||||||||||
Network Business Total [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 196,836 | 184,164 | 183,187 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | 126,666 | 121,629 | 123,016 | ||||||||||||
IMAX Systems [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 107,923 | 100,656 | 90,347 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | [2],[3] | 58,540 | 60,019 | 57,734 | |||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 3,878 | 3,615 | 3,551 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 276 | 250 | 2,930 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 452 | 2,813 | 4,537 | ||||||||||||
Assets | |||||||||||||||
Assets | 277,720 | 266,290 | 277,720 | 266,290 | |||||||||||
Joint Revenue Sharing Arrangements – Fixed Fees [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 11,014 | 9,706 | 10,118 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | [2] | 2,613 | 1,982 | 2,349 | |||||||||||
Assets | |||||||||||||||
Assets | 27,189 | 18,044 | 27,189 | 18,044 | |||||||||||
Theater System Maintenance [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 53,151 | 49,684 | 45,383 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | [3] | 23,010 | 21,991 | 18,275 | |||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 299 | 164 | 173 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 170 | ||||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 311 | 527 | 206 | ||||||||||||
Assets | |||||||||||||||
Assets | 22,869 | 26,225 | 22,869 | 26,225 | |||||||||||
Other Theater [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 8,390 | 8,358 | 9,145 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | 2,624 | 1,806 | 1,965 | ||||||||||||
Assets | |||||||||||||||
Assets | 2,042 | 2,197 | 2,042 | 2,197 | |||||||||||
Theater Network Total [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 180,478 | 168,404 | 154,993 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | 86,787 | 85,798 | 80,323 | ||||||||||||
New Business [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 2,754 | 5,769 | 24,522 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | 2,106 | (350) | (16,176) | ||||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 58 | 2,519 | 15,365 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 96 | 7,399 | 16,400 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 342 | 4,487 | |||||||||||||
Assets | |||||||||||||||
Assets | 1,677 | 1,677 | |||||||||||||
Film Post-production [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 7,392 | 9,516 | 10,382 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | 1,680 | 3,107 | 4,791 | ||||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 1,301 | 1,500 | 1,845 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 1,210 | 1,067 | 810 | ||||||||||||
Assets | |||||||||||||||
Assets | 36,562 | 36,998 | 36,562 | 36,998 | |||||||||||
Film Distribution [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 4,818 | 3,446 | 2,790 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | [2] | (2,942) | (1,344) | (5,797) | |||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 3,894 | 2,225 | 2,128 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 1,379 | 5,865 | |||||||||||||
Assets | |||||||||||||||
Assets | 14,831 | 15,601 | 14,831 | 15,601 | |||||||||||
Other [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 3,386 | 3,102 | 4,893 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | (125) | (911) | (911) | ||||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 747 | 790 | 911 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 504 | 193 | 367 | ||||||||||||
Assets | |||||||||||||||
Assets | 23,809 | 26,519 | 23,809 | 26,519 | |||||||||||
Others Total [Member] | |||||||||||||||
Revenues | |||||||||||||||
Revenues | [1] | 15,596 | 16,064 | 18,065 | |||||||||||
Gross margins | |||||||||||||||
Gross margins | (1,387) | 852 | (1,917) | ||||||||||||
Corporate and other non-segment specific assets [Member] | |||||||||||||||
Depreciation and amortization | |||||||||||||||
Depreciation and amortization | 12,157 | 11,052 | 7,963 | ||||||||||||
Asset impairments and write-downs, net of recoveries | |||||||||||||||
Asset impairments and write-downs, net of recoveries | 2,678 | 2,913 | 3,429 | ||||||||||||
Purchase of property, plant and equipment | |||||||||||||||
Purchase of property, plant and equipment | 4,845 | 8,371 | $ 13,218 | ||||||||||||
Assets | |||||||||||||||
Assets | $ 206,004 | $ 218,133 | $ 206,004 | $ 218,133 | |||||||||||
[1] | The Company’s largest customer represents 16.5% of total revenues as at December 31, 2019, (2018 —17.1%; 2017 —16.4%). | ||||||||||||||
[2] | IMAX DMR segment margins include marketing costs of $22.5 million, $16.5 million and $15.4 million in 2019, 2018 and 2017, respectively. Joint revenue sharing arrangements segment margins include advertising, marketing, and commission costs of $4.5 million, $3.6 million and $4.5 million in 2019, 2018 and 2017, respectively. IMAX systems segment margins include marketing and commission costs of $2.0 million, $2.4 million and $2.9 million in 2019, 2018 and 2017, respectively. Film distribution segment margins includes marketing expense of $0.4 million, expense of $2.2 million and recovery of $0.7 million in 2019, 2018 and 2017, respectively. | ||||||||||||||
[3] | In 2019, the Company recorded a charge of $0.4 million (2018 — $0.3 million; 2017 — $0.5 million, respectively) in costs and expenses applicable to revenues, primarily for its film-based projector inventories. Specifically, IMAX systems include an inventory charge of $0.3 million (2018 — $0.3 million; 2017 — $0.5 million). Theater system maintenance includes inventory write-downs of $0.2 million (2018 — $nil; 2017 — $nil). |
Segmented Information - Geograp
Segmented Information - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | $ 124,279 | $ 86,390 | $ 104,797 | $ 80,198 | $ 108,964 | $ 82,108 | $ 98,345 | $ 84,984 | $ 395,664 | [1] | $ 374,401 | [1] | $ 380,767 | [1] |
United States [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 121,264 | 118,495 | 135,153 | |||||||||||
Greater China [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 124,294 | 117,520 | 126,474 | |||||||||||
Canada [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 9,220 | 10,507 | 12,812 | |||||||||||
Western Europe [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 46,911 | 40,497 | 32,765 | |||||||||||
Asia (excluding Greater China) [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 48,386 | 46,858 | 35,896 | |||||||||||
Russia & the CIS [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 16,124 | 10,133 | 11,054 | |||||||||||
Latin America [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | 9,438 | 12,952 | 10,963 | |||||||||||
Rest of the World [Member] | ||||||||||||||
Geographical Information - Revenue | ||||||||||||||
Revenues, total | $ 20,027 | $ 17,439 | $ 15,650 | |||||||||||
[1] | The Company’s largest customer represents 16.5% of total revenues as at December 31, 2019, (2018 —17.1%; 2017 —16.4%). |
Segmented Information - Schedul
Segmented Information - Schedule of Property Plant and Equipment By Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | $ 306,849 | $ 280,658 |
United States [Member] | ||
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | 109,240 | 97,843 |
Greater China [Member] | ||
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | 105,312 | 93,494 |
Canada [Member] | ||
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | 47,837 | 48,275 |
Western Europe [Member] | ||
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | 27,748 | 26,566 |
Asia (excluding Greater China) [Member] | ||
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | 9,948 | 8,084 |
Rest of the World [Member] | ||
Geographical Information - Property, plant and equipment | ||
Property, plant and equipment | $ 6,764 | $ 6,396 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Financial Instrument | |||
Cash and cash equivalents | $ 109,484 | $ 141,590 | |
Investment in equity securities | 15,685 | 1,022 | |
Net financed sales receivables | 112,432 | 117,990 | |
Net investment in sales-type leases | 15,606 | 9,442 | |
Convertible loan receivable | 1,500 | ||
Foreign exchange contracts — designated forwards | 530 | (1,202) | |
Borrowings under the Credit Facility | (20,000) | (40,000) | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Other Financial Instrument | |||
Cash and cash equivalents | [1] | 109,484 | 141,590 |
Investment in equity securities | [2] | 15,685 | 1,022 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Investment in equity securities | [1] | 1,000 | 1,000 |
Net financed sales receivables | [3] | 112,432 | 117,990 |
Net investment in sales-type leases | [3] | 15,606 | 9,442 |
Convertible loan receivable | [3] | 1,500 | 1,500 |
Borrowings under the Credit Facility | [1] | (20,000) | (40,000) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Foreign exchange contracts — designated forwards | [2] | 530 | (1,202) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Other Financial Instrument | |||
Cash and cash equivalents | [1] | 109,484 | 141,590 |
Investment in equity securities | [2] | 15,685 | 1,022 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Investment in equity securities | [1] | 1,000 | 1,000 |
Net financed sales receivables | [3] | 111,441 | 117,428 |
Net investment in sales-type leases | [3] | 15,309 | 9,529 |
Convertible loan receivable | [3] | 1,500 | 1,500 |
Borrowings under the Credit Facility | [1] | (20,000) | (40,000) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Foreign exchange contracts — designated forwards | [2] | $ 530 | $ (1,202) |
[1] | Recorded at cost, which approximates fair value. | ||
[2] | Value determined using quoted prices in active markets. | ||
[3] | Estimated based on discounting future cash flows at currently available interest rates with comparable terms. |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Country | Dec. 31, 2018USD ($) | |
Financial Instruments (Textual) [Abstract] | ||
Transfers into/out of Level 3 | $ 0 | $ 0 |
Financing receivables indications of theaters with potential collection concerns | 60-89 days | |
Financing receivables indications of theaters to review and assess | Once a theater’s aging exceeds 90 days, the Company’s policy is to review and assess collectability on the theater’s past due accounts. | |
Financing receivables indications of theaters with potential impairment | Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of further information or supporting documentation to the customer. | |
Number of countries that generate box office | Country | 81 | |
Foreign Exchange contract settlement date range | settlement dates throughout 2020 and 2021 | |
Gain (loss) on derivatives not designated hedging instruments | $ 0 | |
Estimated gains to be reclassified to earnings within the next twelve months | 400,000 | |
Financial Instruments Additional (Textual) [Abstract] | ||
Convertible loan receivable | $ 1,500,000 | |
Convertible loan receivable, term | 3 years | |
Convertible loan effective interest rate | 5.00% | |
Total carrying value of investments in new business ventures | $ 2,500,000 | 2,500,000 |
Investment classified as equity security - cost | 15,200,000 | |
Investment classified as equity security - fair value | $ 15,685,000 | 1,022,000 |
Equity securities restrictions | lock-up period of six months | |
Movements in fair value of financial instruments | $ 517,000 | |
Maximum [Member] | ||
Financial Instruments Additional (Textual) [Abstract] | ||
Equity securities percentage ownership | 1.00% | |
Fixed Income Securities [Member] | ||
Financial Instruments Additional (Textual) [Abstract] | ||
Equity Investment, Debt Securities | $ 1,000,000 | 1,000,000 |
Preferred Stock [Member] | ||
Financial Instruments Additional (Textual) [Abstract] | ||
Investment classified as equity security - cost | 3,500,000 | |
Investment classified as equity security - fair value | 1,000,000 | 1,000,000 |
Preferred Stock of Business Venture [Member] | ||
Financial Instruments Additional (Textual) [Abstract] | ||
Equity Investment, Debt Securities | 1,500,000 | |
Investment classified as equity security - fair value | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Equity Accounted Investment [Member] | ||
Financial Instruments Additional (Textual) [Abstract] | ||
Carrying value of investments accounted for under the equity method of accounting | 0 | 0 |
Equity method investment, difference between carrying amount and underlying equity | 1,500,000 | 1,600,000 |
Gross revenues of investment new business ventures | 2,000,000 | 1,900,000 |
Cost of revenue of investment new business ventures | 1,200,000 | 3,000,000 |
Net loss on equity-accounted investments | $ 1,500,000 | $ 1,800,000 |
Financial Instruments - Recorde
Financial Instruments - Recorded Investment in Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | $ 15,761 | $ 9,597 |
Financed Sales Receivables | 113,347 | 118,829 |
Total Recorded Investment | 129,108 | 128,426 |
In Good Standing [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 15,094 | 8,701 |
Financed Sales Receivables | 102,450 | 108,574 |
Total Recorded Investment | 117,544 | 117,275 |
Credit Watch [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 667 | 574 |
Financed Sales Receivables | 9,279 | 8,723 |
Total Recorded Investment | 9,946 | 9,297 |
Pre-Approved Transactions [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 0 | 322 |
Financed Sales Receivables | 830 | 565 |
Total Recorded Investment | 830 | 887 |
Transactions Suspended [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 0 | 0 |
Financed Sales Receivables | 788 | 967 |
Total Recorded Investment | $ 788 | $ 967 |
Financial Instruments - Investm
Financial Instruments - Investment In Financing Receivables On Nonaccrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment In Financing Receivables On Nonaccrual Status | ||
Net investment in leases recorded investment | $ 0 | $ 0 |
Net financed sales receivables recorded investment | 788 | 967 |
Total recorded investment | 788 | 967 |
Net investment in leases related allowance | 0 | 0 |
Net financed sales receivables related allowance | (732) | (739) |
Total related allowance | $ (732) | $ (739) |
Financial Instruments - Aging o
Financial Instruments - Aging of Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | $ 10,245 | $ 9,072 | |
Related Unbilled Recorded Investment | 118,863 | 119,354 | |
Total Recorded Investment | 129,108 | 128,426 | |
Related Allowances | (1,070) | (994) | |
Recorded Investment Net of Allowances | 128,038 | 127,432 | |
Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,708 | 1,494 | |
Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 2,840 | 2,084 | |
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 5,697 | 5,494 | |
Net Investment in Leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 349 | 323 | |
Related Unbilled Recorded Investment | 15,412 | 9,274 | |
Total Recorded Investment | 15,761 | 9,597 | |
Related Allowances | (155) | (155) | $ (155) |
Recorded Investment Net of Allowances | 15,606 | 9,442 | |
Net Investment in Leases [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 30 | 52 | |
Net Investment in Leases [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 68 | 18 | |
Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 251 | 253 | |
Net Financed Sales Receivables [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 9,896 | 8,749 | |
Related Unbilled Recorded Investment | 103,451 | 110,080 | |
Total Recorded Investment | 113,347 | 118,829 | |
Related Allowances | (915) | (839) | $ (922) |
Recorded Investment Net of Allowances | 112,432 | 117,990 | |
Net Financed Sales Receivables [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,678 | 1,442 | |
Net Financed Sales Receivables [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 2,772 | 2,066 | |
Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | $ 5,446 | $ 5,241 |
Financial Instruments - Financi
Financial Instruments - Financing Receivables Continues to Accrue Finance Income (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | $ 10,245 | $ 9,072 | |
Related Unbilled Recorded Investment | 118,863 | 119,354 | |
Related Allowances | (1,070) | (994) | |
Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,708 | 1,494 | |
Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 2,840 | 2,084 | |
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 5,697 | 5,494 | |
Net Investment in Leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 349 | 323 | |
Related Unbilled Recorded Investment | 15,412 | 9,274 | |
Related Allowances | (155) | (155) | $ (155) |
Net Investment in Leases [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 30 | 52 | |
Net Investment in Leases [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 68 | 18 | |
Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 251 | 253 | |
Net Financed Sales Receivables [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 9,896 | 8,749 | |
Related Unbilled Recorded Investment | 103,451 | 110,080 | |
Related Allowances | (915) | (839) | $ (922) |
Net Financed Sales Receivables [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,678 | 1,442 | |
Net Financed Sales Receivables [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 2,772 | 2,066 | |
Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 5,446 | 5,241 | |
Financing Receivables Continue To Accrue Finance Income [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 8,238 | 8,173 | |
Related Unbilled Recorded Investment | 29,751 | 33,030 | |
Related Allowances | 0 | 0 | |
Recorded Investment Net of Allowances | 37,989 | 41,203 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,155 | 586 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,309 | 1,481 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 5,774 | 6,106 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 279 | 283 | |
Related Unbilled Recorded Investment | 578 | 1,523 | |
Related Allowances | 0 | 0 | |
Recorded Investment Net of Allowances | 857 | 1,806 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 9 | 28 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 19 | 9 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 251 | 246 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 7,959 | 7,890 | |
Related Unbilled Recorded Investment | 29,173 | 31,507 | |
Related Allowances | 0 | 0 | |
Recorded Investment Net of Allowances | 37,132 | 39,397 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables Accrued and Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,146 | 558 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | 1,290 | 1,472 | |
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Billed Financing Receivables | $ 5,523 | $ 5,860 |
Financial Instruments - Impaire
Financial Instruments - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment in Leases [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 0 | $ 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 708 | 869 |
Unpaid Principal | 80 | 98 |
Related Allowance | (732) | (739) |
Average Recorded Investment | 818 | 930 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded [Member] | Net Investment in Leases [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded [Member] | Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 708 | 869 |
Unpaid Principal | 80 | 98 |
Related Allowance | (732) | (739) |
Average Recorded Investment | 818 | 930 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded [Member] | Net Investment in Leases [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded [Member] | Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Financial Instruments - Allowan
Financial Instruments - Allowance for Credit Losses and Investment in Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses: | ||
Beginning balance | $ 994 | |
Ending balance | 1,070 | $ 994 |
Net Investment in Leases [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 155 | 155 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 0 | 0 |
Ending balance | 155 | 155 |
Ending balance: individually evaluated for impairment | 155 | 155 |
Financing receivables: | ||
Ending balance: individually evaluated for impairment | 15,761 | 9,597 |
Net Financed Sales Receivables [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 839 | 922 |
Charge-offs | 0 | (183) |
Recoveries | 0 | 0 |
Provision | 76 | 100 |
Ending balance | 915 | 839 |
Ending balance: individually evaluated for impairment | 915 | 839 |
Financing receivables: | ||
Ending balance: individually evaluated for impairment | $ 113,347 | $ 118,829 |
Financial Instruments - Notiona
Financial Instruments - Notional Amount of Derivative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts — Forwards | $ 36,052 | $ 50,828 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value of Foreign Exchange Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives Fair Value [Line Items] | ||
Foreign currency derivatives | $ 602 | $ 649 |
Foreign exchange contracts - designated forwards | 530 | (1,202) |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign currency derivatives | 602 | 649 |
Accrued and other liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ (72) | $ (1,851) |
Financial Instruments - Derivat
Financial Instruments - Derivatives in Foreign Currency Hedging Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Gain (Loss)Recognized in OCI (Effective Portion) | $ 552 | $ (2,219) | $ 2,545 |
Location of Derivative (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | (1,183) | 408 | 824 |
Derivative (Loss) Gain Recognized In and Out of OCI (Effective Portion) | (22) | 21 | 0 |
Fair Value Hedging [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Gain (Loss)Recognized in OCI (Effective Portion) | 552 | (2,219) | 2,545 |
Selling, general and administrative expenses [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Location of Derivative (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | (1,109) | 408 | 824 |
Inventory [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Location of Derivative (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | (42) | 0 | 0 |
Property, plant and equipment [Member] | |||
Derivative Instruments Gain Loss [Line Items] | |||
Location of Derivative (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | $ (32) | $ 0 | $ 0 |
Employee's Pension and Postreti
Employee's Pension and Postretirement Benefits - Additional Information (Details) - USD ($) | Nov. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Expenses recorded in executive transition costs | $ 1,900,000 | |||
Deferred Compensation Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Companies contribution and expenses | $ 2,600 | 500 | ||
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 his agreement with the Company, the plan will vest in full if he incurs a separation of service (as defined therein). | |||
Unfunded benefit obligation recorded | $ 3,600 | 3,600 | ||
Expenses recorded to selling, general and administrative expenses | 700,000 | |||
Expenses recorded in executive transition costs | 1,900 | |||
Pension And Other Postretirement Benefit Expense Textual [Abstract] | ||||
Companies contribution and expenses | $ 2,600 | 500 | ||
Richard L. Gelfond | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit payable | $ 20,300 | |||
Remaining employment agreement term | 36 months | |||
SERP Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plan | The Company has an unfunded U.S. defined benefit pension plan, the SERP, covering Richard L. Gelfond, Chief Executive Officer (“CEO”) of the Company. The SERP provides for a lifetime retirement benefit from age 55 determined as 75% of Mr. Gelfond’s best average 60 consecutive months of earnings over his employment history. The benefits were 50% vested as at July 2000, the SERP initiation date. The vesting percentage increased on a straight-line basis from inception until age 55. The benefits of Mr. Gelfond are 100% vested. Upon a termination for cause, prior to a change of control, Mr. Gelfond shall forfeit any and all benefits to which he may have been entitled, whether or not vested. | |||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Benefit Obligation | $ 18,840,000 | 17,977,000 | $ 19,003,000 | |
Companies contribution and expenses | 0 | |||
Pension And Other Postretirement Benefit Expense Textual [Abstract] | ||||
Companies contribution and expenses | 0 | |||
Expected interest costs in the remainder of the year | $ 600,000 | |||
Defined Contribution Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Defined contribution pension plans for employees | The Company also maintains defined contribution pension 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 Pension Plan by Company | 5.00% | |||
Canadian Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Companies contribution and expenses | $ 1,200,000 | 1,200,000 | 1,200,000 | |
Pension And Other Postretirement Benefit Expense Textual [Abstract] | ||||
Companies contribution and expenses | 1,200,000 | 1,200,000 | 1,200,000 | |
Us Internal Revenue Code [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Companies contribution and expenses | 600,000 | 500,000 | 700,000 | |
Pension And Other Postretirement Benefit Expense Textual [Abstract] | ||||
Companies contribution and expenses | 600,000 | 500,000 | 700,000 | |
Postretirement Benefits Canadian Employees [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||
Benefit Obligation | 1,581,000 | $ 1,487,000 | $ 1,678,000 | |
Pension And Other Postretirement Benefit Expense Textual [Abstract] | ||||
Expected interest costs in the remainder of the year | $ 100,000 |
Employee's Pension and Postre_2
Employee's Pension and Postretirement Benefits - Summary of Assumptions to Determine the Obligation and Cost of SERP at the Plan Measurement Dates (Details) - SERP Benefits [Member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assumptions used to determine obligation and cost status | |||
Discount rate | 2.00% | 3.14% | 2.22% |
First 25 years | 2.12% | ||
First 20 years | 3.09% | 2.39% | |
Lump sum interest rate - thereafter | 2.26% | 2.84% | 2.60% |
Cost of living adjustment on benefits | 1.20% | 1.20% | 1.20% |
Employee's Pension and Postre_3
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts Accrued | |||
Obligation, beginning of period | $ 17,977 | $ 19,003 | |
Prior service cost | 456 | ||
Interest cost | 564 | 422 | $ 427 |
Actuarial gain | (157) | (1,448) | |
Obligation, end of period and unfunded status | $ 18,840 | $ 17,977 | $ 19,003 |
Employee's Pension and Postre_4
Employee's Pension and Postretirement Benefits - Summary of Disclosure of Pension Benefit Obligation (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Amounts recorded in the consolidated balance sheet | |||
Accrued benefits cost | $ (18,840) | $ (17,977) | $ (19,003) |
Accumulated other comprehensive gain | (988) | (1,287) | |
Net amount recognized in the consolidated balance sheets | $ (19,828) | $ (19,264) |
Employee's Pension and Postre_5
Employee's Pension and Postretirement Benefits - Summary of Disclosure of Pension Expense (Details) - SERP Benefits [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net periodic benefit cost | |||
Interest cost | $ 564 | $ 422 | $ 427 |
Pension expense | $ 564 | $ 422 | $ 427 |
Employee's Pension and Postre_6
Employee's Pension and Postretirement Benefits - Summary of Accumulated Other Comprehensive Income and Components of Net Periodic Benefit Cost in Future Periods (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SERP Benefits [Member] | |||
Components of net periodic benefit cost in future periods | |||
Unrealized actuarial (gain) loss | $ (1,444) | $ (1,287) | $ 161 |
Unamortized prior service cost | 456 | ||
Net periodic benefit costs to be recognized in future periods | (988) | (1,287) | 161 |
Postretirement Benefits Executives [Member] | |||
Components of net periodic benefit cost in future periods | |||
Unrealized actuarial (gain) loss | (50) | (50) | 9 |
Postretirement Benefits Canadian Employees [Member] | |||
Components of net periodic benefit cost in future periods | |||
Unrealized actuarial (gain) loss | $ 309 | $ 156 | $ 182 |
Employee's Pension and Postre_7
Employee's Pension and Postretirement Benefits - Summary of Benefit Payment are Expected in Next Five Year (Details) $ in Thousands | Dec. 31, 2019USD ($) |
SERP Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 0 |
2021 | 0 |
2022 | 0 |
2023 | 20,298 |
2024 | 0 |
Thereafter | 0 |
Total expected future benefit payment | 20,298 |
Postretirement Benefits Executives [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 8 |
2021 | 9 |
2022 | 9 |
2023 | 19 |
2024 | 20 |
Thereafter | 600 |
Total expected future benefit payment | 665 |
Postretirement Benefits Canadian Employees [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 100 |
2021 | 105 |
2022 | 104 |
2023 | 104 |
2024 | 103 |
Thereafter | 1,065 |
Total expected future benefit payment | $ 1,581 |
Employee's Pension and Postre_8
Employee's Pension and Postretirement Benefits - Summary of Amounts Accrued for the Plan are Determined (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Benefits Executives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation, beginning of period | $ 639 | $ 698 | |
Interest cost | 26 | 24 | $ 26 |
Benefits paid | (24) | ||
Actuarial gain | (59) | ||
Obligation, end of period and unfunded status | 665 | 639 | 698 |
Postretirement Benefits Canadian Employees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation, beginning of period | 1,487 | 1,678 | |
Interest cost | 49 | 53 | 65 |
Benefits paid | (108) | (104) | |
Actuarial gain | 153 | (26) | |
Unrealized foreign exchange (gain) loss | 0 | (114) | |
Obligation, end of period and unfunded status | $ 1,581 | $ 1,487 | $ 1,678 |
Employee's Pension and Postre_9
Employee's Pension and Postretirement Benefits - Summary of Net Cost Components Related to Continuing Operation of Post Retirement Benefits Other than Pension (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Benefits Executives [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | $ 26 | $ 24 | $ 26 |
Pension expense | 26 | 24 | 26 |
Postretirement Benefits Canadian Employees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 49 | 53 | 65 |
Pension expense | $ 49 | $ 53 | $ 65 |
Employee's Pension and Postr_10
Employee's Pension and Postretirement Benefits - Summary of Weighted Average Assumptions Used to Determine the Benefit Obligation (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Postretirement Benefits Executives [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate | 3.13% | 4.15% | 3.55% |
Postretirement Benefits Canadian Employees [Member] | |||
Assumptions used to determine obligation and cost status | |||
Discount rate | 3.05% | 3.35% | 3.35% |
Employee's Pension and Postr_11
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Benefits Executives [Member] | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used in calculating net periodic benefit cost | 4.15% | 3.55% | 4.10% |
Postretirement Benefits Canadian Employees [Member] | |||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate used in calculating net periodic benefit cost | 3.80% | 3.35% | 3.65% |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($)Film | |
Non-controlling Interests | ||||
Non-controlling interest | $ 89,493 | $ 80,757 | ||
Net income attributable to non-controlling interests | 11,705 | 10,751 | $ 10,174 | |
Investment in film assets | 23,437 | 23,200 | 34,645 | |
Investment in content | $ 955 | 1,073 | ||
IMAX China Noncontrolling Interest | ||||
Non-controlling Interests | ||||
Minority Interest Ownership Percentage By Company | 69.74% | |||
IMAX China | ||||
Non-controlling Interests | ||||
Non-controlling interest | $ 89,500 | |||
Net income attributable to non-controlling interests | 13,300 | |||
Other Noncontrolling Interest [Member] | ||||
Non-controlling Interests | ||||
Net income attributable to non-controlling interests | $ (1,638) | (2,710) | $ (3,627) | |
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 to 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. The Company sees the Original Film Fund as a vehicle designed to generate a continuous, steady flow of high-quality documentary content. | |||
Number Of Expected Original Films | Film | 10 | |||
Investment in film assets | $ 22,300 | |||
Investment in content | $ 4,000 | |||
Other Noncontrolling Interest [Member] | Third Party [Member] | ||||
Non-controlling Interests | ||||
Film Fund Expected Capital Contribution | $ 25,000 | |||
Other Noncontrolling Interest [Member] | IMAX [Member] | ||||
Non-controlling Interests | ||||
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 Company's Subsidiary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-controlling Interests | |||
Issuance of subsidiary shares to non-controlling interests | $ 1,106 | $ 7,796 | |
Net income (loss) | 11,705 | 10,751 | $ 10,174 |
Other Noncontrolling Interest [Member] | |||
Non-controlling Interests | |||
Beginning Balance | 6,439 | 1,353 | 4,980 |
Issuance of subsidiary shares to non-controlling interests | 7,796 | ||
Return of capital to non-controlling interests | (243) | ||
Share issuance costs from the issuance of subsidiary shares to a non-controlling interest | 1,350 | ||
Net income (loss) | (1,638) | (2,710) | (3,627) |
Ending Balance | $ 5,908 | $ 6,439 | $ 1,353 |
Executive Transition Costs - Ad
Executive Transition Costs - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | ||
Executive transition costs | $ 0 | $ 2,994,000 |
Accelerated post retirement plan costs | 1,900,000 | |
Additional compensation expense executives | $ 1,100,000 |
Exit Costs, Restructuring Cha_3
Exit Costs, Restructuring Charges and Associated Impairments - Exit Costs Restructuring Charges and Associated Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |||
Restructuring charges | $ 628 | $ 2,405 | $ 9,895 |
Asset impairments | 6,432 | 5,553 | |
Costs to exit lease and restore facilities | 222 | 619 | 726 |
Other | 86 | 0 | |
Total exit costs, restructuring charges and associated impairments | $ 850 | $ 9,542 | $ 16,174 |
Exit Costs, Restructuring Cha_4
Exit Costs, Restructuring Charges and Associated Impairments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |||
Costs to exit an operating lease | $ 200 | $ 600 | $ 700 |
Restructuring charges incurred | $ 628 | $ 2,405 | $ 9,895 |
Exit Costs, Restructuring Cha_5
Exit Costs, Restructuring Charges and Associated Impairments - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | $ 628 | $ 2,405 | $ 9,895 |
Corporate [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | $ 628 | 1,529 | 5,369 |
New Business [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | 611 | 1,699 | |
Other [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | 215 | 930 | |
IMAX DMR [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | 50 | 662 | |
Theater System Maintenance [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | 546 | ||
IMAX Systems [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | 0 | 120 | |
Joint revenue sharing arrangements [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | 0 | 21 | |
Film Post-production [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Restructuring charges | $ 0 | $ 548 |
Exit Costs, Restructuring Cha_6
Exit Costs, Restructuring Charges and Associated Impairments - Restructuring and Accrual Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |||
Balance, beginning of period | $ 1,936 | $ 2,221 | |
Restructuring charges | 628 | 2,405 | $ 9,895 |
Cash payments | (2,211) | (2,690) | |
Balance, end of period | $ 353 | $ 1,936 | $ 2,221 |
Exit Costs, Restructuring Cha_7
Exit Costs, Restructuring Charges and Associated Impairments - Associated Impairments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring costs and reserves [Line Items] | |||
Other assets | $ 2,565,000 | $ 2,533,000 | |
Prepaid expenses | 121,000 | 0 | |
Intangible assets | 66,000 | 0 | |
Film assets | $ 1,379,000 | 0 | 17,363,000 |
Associated Impairments | 6,432,000 | 5,553,000 | |
Restructuring Charges [Member] | |||
Restructuring costs and reserves [Line Items] | |||
Property, plant and equipment | $ 0 | 3,680,000 | 3,696,000 |
Other assets | 2,565,000 | 1,522,000 | |
Prepaid expenses | 121,000 | 0 | |
Intangible assets | 66,000 | 0 | |
Film assets | 0 | 335,000 | |
Associated Impairments | $ 6,432,000 | $ 5,553,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited) - Selected Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 124,279 | $ 86,390 | $ 104,797 | $ 80,198 | $ 108,964 | $ 82,108 | $ 98,345 | $ 84,984 | $ 395,664 | [1] | $ 374,401 | [1] | $ 380,767 | [1] |
Costs and expenses applicable to revenues | 61,920 | 39,270 | 45,244 | 35,058 | 54,322 | 39,917 | 37,941 | 34,292 | ||||||
Gross margin | 62,359 | 47,120 | 59,553 | 45,140 | 54,642 | 42,191 | 60,404 | 50,692 | 214,172 | 207,929 | 185,246 | |||
Net income | 21,352 | 10,896 | 13,836 | 12,487 | 3,771 | 7,502 | 10,255 | 12,067 | 58,571 | 33,595 | 12,518 | |||
Net income attributable to common shareholders | $ 18,171 | $ 9,033 | $ 11,397 | $ 8,265 | $ 1,694 | $ 5,020 | $ 7,625 | $ 8,505 | $ 46,866 | $ 22,844 | $ 2,344 | |||
Net income per share attributable to common shareholders: | ||||||||||||||
Net income per share - basic & diluted | $ 0.29 | $ 0.15 | $ 0.19 | $ 0.13 | $ 0.03 | $ 0.08 | $ 0.12 | $ 0.13 | $ 0.76 | $ 0.36 | $ 0.04 | |||
[1] | The Company’s largest customer represents 16.5% of total revenues as at December 31, 2019, (2018 —17.1%; 2017 —16.4%). |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event [Member] | Jan. 01, 2020TheaterFilm |
Subsequent Event [Line Items] | |
Number of films scheduled to be released in IMAX theaters | Film | 5 |
Minimum [Member] | |
Subsequent Event [Line Items] | |
Aggregate number of temporarily closed movie theaters | 70,000 |
Mainland China [Member] | |
Subsequent Event [Line Items] | |
Number of temporarily closed movie theaters | 700 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Net Investment in Leases [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 155 | $ 155 | $ 672 |
Additions/ (recoveries) charged to expenses | (517) | ||
Balance at end of year | 155 | 155 | 155 |
Allowance for Financed Sale Receivables [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 839 | 922 | 494 |
Additions/ (recoveries) charged to expenses | 76 | (83) | 428 |
Balance at end of year | 915 | 839 | 922 |
Allowance for Doubtful Accounts Receivable [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 3,174 | 1,613 | 1,250 |
Additions/ (recoveries) charged to expenses | 2,354 | 3,030 | 1,967 |
Other additions/ (deductions) | (390) | (1,469) | (1,604) |
Balance at end of year | 5,138 | 3,174 | 1,613 |
Inventories Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 3,885 | 3,886 | 3,342 |
Additions/ (recoveries) charged to expenses | 446 | 250 | 500 |
Other additions/ (deductions) | (1,115) | (251) | 44 |
Balance at end of year | 3,216 | 3,885 | 3,886 |
Deferred Income Tax Valuation Allowance [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 197 | 197 | 197 |
Balance at end of year | $ 197 | $ 197 | $ 197 |