Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2020shares | |
Document Information [Line Items] | |
Entity Registrant Name | IMAX Corporation |
Entity Central Index Key | 0000921582 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2020 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock Shares Outstanding | 58,861,171 |
Document Quarterly Report | true |
Document Transition Report | false |
Entity Incorporation, State or Country Code | Z4 |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | IMAX |
Security Exchange Name | NYSE |
Entity File Number | 001-35066 |
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 |
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 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 305,197 | $ 109,484 |
Accounts receivable, net of allowance for credit losses | 59,674 | 99,513 |
Financing receivables, net of allowance for credit losses | 126,740 | 128,038 |
Variable consideration receivable, net of allowance for credit losses | 39,394 | 40,040 |
Inventories | 53,021 | 42,989 |
Prepaid expenses | 10,812 | 10,237 |
Film assets | 7,468 | 17,921 |
Property, plant and equipment | 282,854 | 306,849 |
Investment in equity securities | 14,803 | 15,685 |
Other assets | 23,796 | 25,034 |
Deferred income tax assets | 17,737 | 23,905 |
Other intangible assets | 27,019 | 30,347 |
Goodwill | 39,027 | 39,027 |
Total assets | 1,007,542 | 889,069 |
Liabilities | ||
Bank indebtedness | 297,985 | 18,229 |
Accounts payable | 12,011 | 20,414 |
Accrued and other liabilities | 103,970 | 112,779 |
Deferred revenue | 99,770 | 94,552 |
Deferred income tax liabilities | 18,661 | |
Total liabilities | 532,397 | 245,974 |
Commitments and contingencies | ||
Non-controlling interests | ||
Non-controlling interests | 776 | 5,908 |
Shareholders' equity | ||
Capital stock common shares — no par value. Authorized — unlimited number. 58,878,749 issued and 58,861,171 outstanding (December 31, 2019 — 61,362,872 issued and 61,175,852 outstanding) | 405,583 | 423,386 |
Less: Treasury stock, 17,578 shares at cost (December 31, 2019 — 187,020) | (271) | (4,038) |
Other equity | 177,110 | 171,789 |
Accumulated deficit | (181,604) | (40,253) |
Accumulated other comprehensive loss | (1,984) | (3,190) |
Total shareholders' equity attributable to common shareholders | 398,834 | 547,694 |
Non-controlling interests | 75,535 | 89,493 |
Total shareholders' equity | 474,369 | 637,187 |
Total liabilities and shareholders' equity | $ 1,007,542 | $ 889,069 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Shareholders' equity | ||
Common stock, par value | ||
Common stock, shares issued | 58,878,749 | 61,362,872 |
Common stock, shares outstanding | 58,861,171 | 61,175,852 |
Number of treasury shares held in trust for future settlement of share based awards | 17,578 | 187,020 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues | |||||
Revenues, total | $ 37,256 | $ 86,390 | $ 81,013 | $ 271,385 | |
Costs and expenses applicable to revenues | |||||
Cost and expenses applicable to revenues, total | 33,427 | 39,270 | 79,786 | 119,572 | |
Gross margin | [1] | 3,829 | 47,120 | 1,227 | 151,813 |
Selling, general and administrative expenses | 24,815 | 29,482 | 83,247 | 89,267 | |
Research and development | 1,130 | 1,359 | 4,562 | 3,717 | |
Amortization of intangibles | 1,349 | 1,271 | 4,014 | 3,564 | |
Credit loss expense | 3,925 | 599 | 15,582 | 1,957 | |
Asset impairments | 0 | 0 | 1,151 | 0 | |
Exit costs, restructuring charges and associated impairments | 0 | 0 | 0 | 850 | |
(Loss) income from operations | (27,390) | 14,409 | (107,329) | 52,458 | |
Gain (loss) in fair value of investments | 1,575 | (490) | (939) | (2,543) | |
Retirement benefits non-service expense | (186) | (160) | (432) | (480) | |
Interest income | 586 | 490 | 1,842 | 1,632 | |
Interest expense | (2,391) | (489) | (4,620) | (1,806) | |
(Loss) income before taxes | (27,806) | 13,760 | (111,478) | 49,261 | |
Income tax expense | (19,349) | (3,030) | (24,606) | (11,986) | |
Equity in (losses) gains of investees, net of tax | (1,329) | 166 | (1,858) | (56) | |
Net (loss) income | (48,484) | 10,896 | (137,942) | 37,219 | |
Less: Net loss (income) attributable to non-controlling interests | 1,275 | (1,863) | 15,412 | (8,524) | |
Net (loss) income attributable to common shareholders | $ (47,209) | $ 9,033 | $ (122,530) | $ 28,695 | |
Net (loss) income per share attributable to common shareholders - basic and diluted: | |||||
Net (loss) income per share — basic and diluted | $ (0.80) | $ 0.15 | $ (2.06) | $ 0.47 | |
Technology Sales [Member] | |||||
Revenues | |||||
Revenues, total | $ 15,753 | $ 21,735 | $ 24,102 | $ 56,629 | |
Costs and expenses applicable to revenues | |||||
Cost and expenses applicable to revenues, total | 9,222 | 11,740 | 15,637 | 33,114 | |
Image Enhancement and Maintenance Services [Member] | |||||
Revenues | |||||
Revenues, total | 14,589 | 44,168 | 39,109 | 144,977 | |
Costs and expenses applicable to revenues | |||||
Cost and expenses applicable to revenues, total | 16,989 | 20,181 | 42,049 | 66,205 | |
Technology Rentals [Member] | |||||
Revenues | |||||
Revenues, total | 4,473 | 17,642 | 10,307 | 61,675 | |
Costs and expenses applicable to revenues | |||||
Cost and expenses applicable to revenues, total | 7,216 | 7,349 | 22,100 | 20,253 | |
Finance Income [Member] | |||||
Revenues | |||||
Revenues, total | $ 2,441 | $ 2,845 | $ 7,495 | $ 8,104 | |
[1] | IMAX DMR gross margin includes marketing costs of $0.4 million and $2.8 million for the three and nine months ended September 30, 2020, respectively (2019 — $4.3 million and $17.7 million, respectively). JRSA gross margin includes advertising, marketing and commission expense of $0.7 million and $1.3 million for the three and nine months ended September 30, 2020, respectively (2019 —$0.8 million and $1.1 million, respectively). IMAX Systems gross margin includes marketing and commission costs of $0.6 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, (2019 — $0.6 million and $1.5 million, respectively). Film Distribution segment gross margin includes marketing expense of $0.2 million and $0.4 million for the three and nine months ended September 30, 2020, respectively (2019 — $0.1 million and $0.7 million, respectively). |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (48,484) | $ 10,896 | $ (137,942) | $ 37,219 |
Unrealized net gain (loss) from cash flow hedging instruments | 591 | (527) | (935) | (162) |
Realized net loss from cash flow hedging instruments | 110 | 322 | 805 | 1,015 |
Foreign currency translation adjustments | 2,387 | (1,498) | 1,772 | (1,670) |
Defined benefit and postretirement benefit plans | 19 | 36 | ||
Other comprehensive income (loss), before tax | 3,107 | (1,703) | 1,678 | (817) |
Income tax (expense) benefit related to other comprehensive income (loss) | (189) | 54 | 64 | (224) |
Other comprehensive income (loss), net of tax | 2,918 | (1,649) | 1,742 | (1,041) |
Comprehensive (loss) income | (45,566) | 9,247 | (136,200) | 36,178 |
Less: Comprehensive loss (income) attributable to non-controlling interests | 553 | (1,410) | 14,876 | (8,017) |
Comprehensive (loss) income attributable to common shareholders | $ (45,013) | $ 7,837 | $ (121,324) | $ 28,161 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net (loss) income | $ (137,942) | $ 37,219 |
Adjustments to reconcile net (loss) income to cash from operating activities: | ||
Depreciation and amortization | 41,294 | 45,500 |
Credit loss expense | 15,582 | 1,957 |
Write-downs | 13,339 | 1,027 |
Deferred income tax expense | 23,142 | 1,035 |
Share-based and other non-cash compensation | 16,345 | 17,397 |
Unrealized foreign currency exchange (gain) loss | (394) | 214 |
Loss in fair value of investments | 939 | 2,543 |
Equity in losses of investees | 1,858 | 56 |
Changes in assets and liabilities: | ||
Accounts receivable | 30,350 | 9,613 |
Inventories | (10,278) | (13,422) |
Film assets | (6,177) | (15,405) |
Deferred revenue | 5,233 | (2,599) |
Changes in other operating assets and liabilities | (24,109) | (17,878) |
Net cash (used in) provided by operating activities | (30,818) | 67,257 |
Investing Activities | ||
Purchase of property, plant and equipment | (658) | (5,528) |
Investment in equipment for joint revenue sharing arrangements | (5,289) | (31,099) |
Acquisition of other intangible assets | (1,661) | (1,874) |
Investment in equity securities | (15,153) | |
Net cash used in investing activities | (7,608) | (53,654) |
Financing Activities | ||
Increase in revolving credit facility borrowings | 280,244 | 35,000 |
Repayment of revolving credit facility borrowings | (55,000) | |
Credit facility amendment fees paid | (1,026) | |
Settlement of restricted share units and options | (2,815) | (8,589) |
Treasury stock repurchased for future settlement of restricted share units | (271) | (1,572) |
Repurchase of common shares, IMAX China | (36,624) | (2,659) |
Taxes withheld and paid on employee stock awards vested | (251) | (508) |
Common shares issued - stock options exercised | 2,391 | |
Issuance of subsidiary shares to non-controlling interests (net of return on capital) | 1,106 | |
Dividends paid to non-controlling interests | (4,214) | (4,384) |
Net cash provided by (used in) financing activities | 233,509 | (53,372) |
Effects of exchange rate changes on cash | 630 | 727 |
Increase (decrease) in cash and cash equivalents during period | 195,713 | (39,042) |
Cash and cash equivalents, beginning of period | 109,484 | 141,590 |
Cash and cash equivalents, end of period | 305,197 | 102,548 |
IMAX China | ||
Financing Activities | ||
Repurchase of common shares, IMAX China | $ (1,534) | $ (19,157) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Capital Stock [Member] | Other Equity [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] |
Balance, beginning of period at Dec. 31, 2018 | $ 421,539 | $ 179,595 | $ (85,385) | $ (3,588) | ||
Movement of Shareholders' Equity | ||||||
Change in shares held in treasury | (656) | |||||
Employee stock options exercised | 1,740 | |||||
Amortization of share-based payment expense - stock options | 6,719 | |||||
Amortization of share-based payment expense - restricted share units | 10,770 | |||||
Restricted share units vested | (8,713) | |||||
Cash received from the issuance of common shares in excess of par value | 651 | |||||
Fair value of stock options exercised at the grant date | 100 | (100) | ||||
Common shares repurchased and retired | (925) | (1,734) | ||||
Common shares repurchased, IMAX China | (19,157) | |||||
Stock options exercised from treasury shares | (1,561) | |||||
Net (loss) income attributable to non-controlling interests | $ 28,695 | 28,695 | ||||
Other comprehensive (loss) income, net of tax | (1,041) | (534) | ||||
Balance, end of period at Sep. 30, 2019 | 421,798 | 168,204 | (58,424) | (4,122) | ||
Balance, beginning of period at Dec. 31, 2018 | $ 80,757 | |||||
Movement of Shareholders' Equity | ||||||
Net income (loss) attributable to non-controlling interests | 8,524 | 9,309 | ||||
Other comprehensive income (loss), net of tax | (507) | |||||
Dividends paid to non-controlling shareholders | (4,384) | |||||
Balance, end of period at Sep. 30, 2019 | 85,175 | |||||
Balance, beginning of period at Jun. 30, 2019 | 422,101 | 166,232 | (66,828) | (2,926) | ||
Movement of Shareholders' Equity | ||||||
Change in shares held in treasury | 3 | |||||
Employee stock options exercised | 12 | |||||
Amortization of share-based payment expense - stock options | 2,231 | |||||
Amortization of share-based payment expense - restricted share units | 3,517 | |||||
Restricted share units vested | (1,419) | |||||
Fair value of stock options exercised at the grant date | 3 | (3) | ||||
Common shares repurchased and retired | (321) | (629) | ||||
Common shares repurchased, IMAX China | (2,344) | |||||
Stock options exercised from treasury shares | (10) | |||||
Net (loss) income attributable to non-controlling interests | 9,033 | 9,033 | ||||
Other comprehensive (loss) income, net of tax | (1,649) | (1,196) | ||||
Balance, end of period at Sep. 30, 2019 | 421,798 | 168,204 | (58,424) | (4,122) | ||
Balance, beginning of period at Jun. 30, 2019 | 85,472 | |||||
Movement of Shareholders' Equity | ||||||
Net income (loss) attributable to non-controlling interests | 1,863 | 2,274 | ||||
Other comprehensive income (loss), net of tax | (453) | |||||
Dividends paid to non-controlling shareholders | (2,118) | |||||
Balance, end of period at Sep. 30, 2019 | 85,175 | |||||
Movement of Shareholders' Equity | ||||||
Total shareholders' equity | 612,631 | |||||
Total shareholders' equity | 637,187 | |||||
Balance, beginning of period at Dec. 31, 2019 | 547,694 | 419,348 | 171,789 | (40,253) | (3,190) | |
Movement of Shareholders' Equity | ||||||
Change in shares held in treasury | 3,767 | |||||
Amortization of share-based payment expense - stock options | 2,137 | |||||
Amortization of share-based payment expense - restricted share units | 11,099 | |||||
Amortization of share-based payment expense - performance stock units | 1,307 | |||||
Restricted share units vested | (7,688) | |||||
Common shares repurchased and retired | (17,803) | (18,821) | ||||
Common shares repurchased, IMAX China | (1,534) | |||||
Net (loss) income attributable to non-controlling interests | (122,530) | (122,530) | ||||
Other comprehensive (loss) income, net of tax | 1,742 | 1,206 | ||||
Balance, end of period at Sep. 30, 2020 | 398,834 | 405,312 | 177,110 | (181,604) | (1,984) | |
Balance, beginning of period at Dec. 31, 2019 | 89,493 | 89,493 | ||||
Movement of Shareholders' Equity | ||||||
Net income (loss) attributable to non-controlling interests | (15,412) | (10,280) | ||||
Other comprehensive income (loss), net of tax | 536 | |||||
Dividends paid to non-controlling shareholders | (4,214) | |||||
Balance, end of period at Sep. 30, 2020 | 75,535 | 75,535 | ||||
Balance, beginning of period at Jun. 30, 2020 | 405,254 | 172,690 | (134,395) | (4,180) | ||
Movement of Shareholders' Equity | ||||||
Change in shares held in treasury | 58 | |||||
Amortization of share-based payment expense - stock options | 1,034 | |||||
Amortization of share-based payment expense - restricted share units | 3,337 | |||||
Amortization of share-based payment expense - performance stock units | 514 | |||||
Restricted share units vested | (463) | |||||
Common shares repurchased, IMAX China | (2) | |||||
Net (loss) income attributable to non-controlling interests | (47,209) | (47,209) | ||||
Other comprehensive (loss) income, net of tax | 2,918 | 2,196 | ||||
Balance, end of period at Sep. 30, 2020 | 398,834 | $ 405,312 | $ 177,110 | $ (181,604) | $ (1,984) | |
Balance, beginning of period at Jun. 30, 2020 | 74,723 | |||||
Movement of Shareholders' Equity | ||||||
Net income (loss) attributable to non-controlling interests | (1,275) | 2,186 | ||||
Other comprehensive income (loss), net of tax | 722 | |||||
Dividends paid to non-controlling shareholders | (2,096) | |||||
Balance, end of period at Sep. 30, 2020 | 75,535 | $ 75,535 | ||||
Movement of Shareholders' Equity | ||||||
Total shareholders' equity | $ 474,369 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Accounting Principles IMAX Corporation, together with its consolidated subsidiaries (the “Company”), prepares its financial statements in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. In the Company’s opinion, the unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. The interim results presented in the Company’s Condensed Consolidated Statements of Operations are not necessarily indicative of results for a full year, particularly in this interim period due to the impacts of the COVID-19 global pandemic (see Note 2). These Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements In the first quarter of 2020, the Company updated certain account names within Revenues and Costs and Expenses Applicable to Revenues in its Condensed Consolidated Statements of Operations to better describe the nature of its revenue-generating activities and related costs. Principles of Consolidation These Condensed Consolidated Financial Statements include the accounts of the Company, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in Note 17(b). The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which are not material to the Company’s Condensed Consolidated Financial Statements. A loss in value of an investment that is other than temporary is recognized as a charge in the Condensed Consolidated Statements of Operations. Total assets and liabilities of the Company’s consolidated VIEs are as follows: September 30, December 31, 2020 2019 Total assets $ 1,571 $ 9,677 Total liabilities (1) $ 245 $ 308 (1) Prior year comparative has been reclassified to conform with current period presentation. Estimates and Assumptions In preparing the Company’s Condensed Consolidated Financial Statements, management makes judgments in applying various accounting policies. The areas of policy judgment are consistent with those reported in Note 2(b) in the 2019 Form 10-K, with the exception of the estimates used by the Company in applying ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which was adopted To date, the Company’s operations have been significantly impacted by the COVID-19 global pandemic, as described in Note 2. There continues to be significant ongoing uncertainty surrounding the extent and duration of the impacts that the pandemic will continue to have on box office results and the installation of IMAX Theater Systems, as well as the Company’s customers, suppliers, and employees. There is heightened potential for future credit losses on receivables, inventory write downs, impairments of film assets, impairments of long-lived assets (including the theater system equipment supporting the Company’s joint revenue sharing arrangements), impairments of goodwill, valuation allowances against deferred tax assets, and the reversal of variable consideration receivables that are based on estimates of future box office performance. In the current environment, assumptions about box office results, IMAX Theater System installations, and customer creditworthiness have greater variability than normal, which could in the future significantly affect the valuation of the Company’s assets, both financial and non-financial. The cash flow estimates used to test the recoverability of certain of the Company’s long-lived assets are based on a longer time horizon due to the long-term nature of the underlying contracts, allowing time for a recovery of the cash flows associated with the underlying assets groups, which management has factored into its estimates. The accuracy of management’s estimates is dependent, in part, on the timing and extent of the reopening of theaters in the IMAX network, and on the release of new films by movie studios. These theater reopening and film release scenarios are highly uncertain and have been factored into management’s cash flow estimates. As an understanding of the longer-term impacts of COVID-19 on the Company’s customers and business develops, there is a heightened potential for changes in management’s estimates over the remainder of 2020 and into 2021. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 9 Months Ended |
Sep. 30, 2020 | |
Impact Of Coronavirus Nineteen Pandemic [Abstract] | |
Impact of COVID-19 Pandemic | 2. Impact of COVID-19 Pandemic In late-January 2020, in response to the public health risks associated with the novel coronavirus and the disease that it causes (“COVID-19”), the Chinese government directed exhibitors in China to temporarily close more than 70,000 movie theaters, including all of the approximately 700 IMAX theaters in mainland China. On March 11, 2020, due to the worsening public health crisis associated with the novel coronavirus, COVID-19 was characterized as a pandemic by the World Health Organization, and in the following weeks, local, state and national governments instituted stay-at-home orders and restrictions on large public gatherings which caused movie theaters in countries around the world to temporarily close, including substantially all of the IMAX theaters in those countries. As a result of the theater closures, Hollywood and Chinese movie studios postponed the theatrical release of multiple films, including many scheduled to be shown in IMAX theaters, while certain other films have been released directly to streaming platforms. More recently, stay-at-home orders have been lifted in many countries and movie theaters throughout the IMAX network gradually reopened in the third quarter of 2020 with reduced capacities, physical distancing requirements, and other safety measures. During the third quarter of 2020, a significant number of the theaters in the IMAX commercial multiplex network reopened, including substantially all of the theaters in Greater China and the majority of the theaters in Domestic (i.e., United States and Canada) locations and Rest of World markets. In many parts of Asia, audiences have returned to theaters, particularly IMAX theaters, in numbers consistent with pre-pandemic attendance. However, ticket sales have been significantly lower than normal levels in theaters outside of Asia and, in recent weeks, Hollywood movie studios further delayed a number of films due to be released in the fourth quarter of 2020. As a result, certain theater chains have recently closed again or have reduced their operating hours. In addition, theaters in major markets such as New York City and Los Angeles continue to remain temporarily closed. The repercussions of the COVID-19 global pandemic have resulted in a significant decrease in the Company’s revenues , earnings and operating cash flows during the three and nine months ended September 30, 2020 as gross box office (“ GBO ”) results declined significantly, the installation s of certain theater systems w ere delayed, and maintenance services were generally suspended for theaters that were closed. During time periods in which there is a lack of new films released by movie studios and a significant number of theaters in the IMAX network are closed, the Company has and will continue to experience a significant decline in earnings and operating cash flows as it is generating significantly lower than normal levels of GBO-based revenue from its joint revenue sharing arrangements and digital remastering services, it is unable to provide normal maintenance services to any of the theaters that remain closed, and while some installation activity is continuing, certain theater system installations have, and may continue to be delayed. In addition, the Company has experienced and is likely to continue to experience delays in collecting payments due under existing theater sale or lease arrangements from its exhibitor partners who are now facing financial difficulties as a result of the theater closures. In response, the Company has provided temporary relief to exhibitor partners by waiving maintenance fees during periods when theaters are closed and, in certain situations, by providing extended payment terms on annual minimum payment obligations in exchange for a corresponding extension of the term of the underlying sale or lease arrangement. A s discussed in Note 4, for the three and nine months ended September 30, 2020, the Company increased its provision for current expected credit losses by $3.9 million and $15.6 million , respectively, principally reflecting a reduction in the credit quality of its theater related accounts receivable , financing receivables and variable consideration receivables . T he Company may continue to be significantly impacted by the COVID-19 global pandemic even after a significant portion or all theaters are reopened. The global economic impact of COVID-19 has led to record levels of unemployment in certain countries, which has led to, and may continue to result in lower consumer spending. The timing and extent of a recovery of consumer behavior and willingness to spend discretionary income on movie-going may delay the Company’s ability to generate significant GBO-based revenue until such time as consumer behavior normalizes and consumer spending recovers. In response to uncertainties associated with the COVID-19 global pandemic, the Company has taken and is continuing to take significant steps to preserve cash by eliminating non-essential costs, placing certain employees on a temporary furlough for at least the remainder of the current fiscal year, reducing the working hours of other employees and deferring all non-essential capital expenditures to minimum levels. The Company has also implemented an active cash management process, which, among other things, requires senior management approval of all outgoing payments. In addition, in the first quarter of 2020, the Company drew down the $280.0 million in remaining available borrowing capacity under its credit facility, which was then amended in June 2020 to, among other things, Consistent with the first and second quarters of 2020, the Company performed a quantitative goodwill impairment test considering the latest available information and determined that its goodwill was not impaired as of September 30, 2020. As of that date, the Company’s total Goodwill was $39.0 million, of which $19.0 million relates to the IMAX Systems reporting unit, $13.6 million relates to the Joint Revenue Sharing Arrangement reporting unit, and $6.4 million relates to the IMAX Maintenance reporting unit These estimates and the likelihood of future changes in these estimates depend on a number of underlying variables and a range of possible outcomes. Actual results may materially differ from management’s estimates, especially due to the (see Note 1). In the third quarter of 2020, the Company also updated its recoverability tests of the carrying values of the theater system equipment supporting its joint revenue sharing arrangements, which are recorded within Property, Plant and Equipment . In performing its reviews of recoverability, the Company estimated the undiscounted future cash flows expected to result from the use of the assets and determined that there was no impairment as of September 30, 2020. The cash flow estimates used in these tests are consistent with estimates are highly uncertain due to the COVID-19 global pandemic; therefore, management’s estimated cash flows factor in a number of underlying variables and ranges of possible cash flow scenarios. Actual results may materially differ from management’s estimates, especially due to the (see Note 1). In the third quarter of 2020, the Company also assessed the recoverability of its deferred tax assets due to losses recognized in the period associated with the COVID-19 global pandemic. The utilization of the Company’s deferred tax assets is dependent on having sufficient future tax benefits, such as taxable income in each of the jurisdictions to which the deferred tax assets relate. In the third quarter of 2020, the Company recorded a $ million valuation allowance to reduce the value of deferred tax assets in certain jurisdictions where the Company incurs corporate leadership and administrative costs and where management could not reliably estimate future taxable income in th ose jurisdiction s due to uncertainties associated with the COVID-19 global pandemic. At the point in time when the uncertainties of COVID-19 resolve and the Company is able to reliably forecast sufficient future taxable income in the impacted jurisdictions, the $ 23.7 million valuation allowance recorded in the third quarter of 2020 may be reversed. Despite this valuation allowance, the Company remains entitled to benefit from tax attributes which currently have a valuation allowance applied (see Note 11). If business conditions deteriorate further, or should they remain depressed for a prolonged period of time, management’s estimates of operating results and future cash flows for the IMAX Systems and Joint Revenue Sharing Arrangements reporting units may be insufficient to support the goodwill assigned to them, thus requiring impairment charges. The Company will continue to evaluate the recoverability of goodwill at the reporting unit level on an annual basis as of the beginning of its fourth fiscal quarter and whenever events or changes in circumstances indicate there may be a potential impairment. In addition, estimates related to future expected credit losses (Note 4) and the recoverability of deferred tax assets (Note 11) could also be further materially impacted by changes in estimates in the future (see Note 1). |
Recently Issued Accounting Stan
Recently Issued Accounting Standards Not Yet Adopted | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards Not Yet Adopted | 3. Recently Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The purpose of ASU 2019-05 is to provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. 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 Condensed Consolidated Financial Statements for the period ended September 30, 2020. |
Current Expected Credit Losses
Current Expected Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Current Expected Credit Losses | 4. Current Expected Credit Losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The standard requires financial assets measured on the amortized cost basis to be presented at the net amount expected to be collected. The Company’s accounts receivable, financing receivables and variable consideration receivables are within the scope of ASU No. 2016-13. Accounts Receivable Accounts receivable principally includes amounts currently due to the Company under theater sale and sales-type lease arrangements, contingent fees owed by theater operators as a result of box office performance and fees for theater maintenance services. Accounts receivable also includes amounts due from movie studios and other content creators for digitally remastering films into IMAX formats, as well as for film distribution and post-production services. In order to mitigate the credit risk associated with accounts receivable, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The Company’s internal credit quality classifications for theater operators are as follows: • Good Standing — The theater operator continues to be in good standing as payments and reporting are up to date. • Credit Watch — The theater operator has demonstrated a delay in payments but continues to be in active communication with the Company. Theater operators placed on Credit Watch are subject to enhanced monitoring. In addition, depending on the size of the outstanding balance, length of time in arrears and other factors, future transactions may need to be approved by management. These receivables are in better condition than those in the Pre-Approved Transactions Only category but are not in as good condition as the receivables in the Good Standing category. • Pre-Approved Transactions Only — The theater operator has demonstrated a delay in payments with little or no communication with the Company. All services and shipments to the theater operator must be reviewed and approved by management. These receivables are in better condition than those in the All Transactions Suspended category but are not in as good condition as the receivables in the Credit Watch category. In certain situation, depending on the individual facts and circumstances related to each customer, finance income recognition may be suspended for the net investment in lease and financed sale receivable balances for customers in the Pre-Approved Transactions Only category. See below for a discussion of the Company’s net investment in leases and financed sale receivables. • All Transactions Suspended — The theater operator is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater operator is classified within the All Transactions Suspended category, the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. The ability of the Company to collect its accounts receivable balances is heavily dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators, or other customers, may experience financial difficulties, such as those imposed by the COVID-19 global pandemic, that could cause them to be unable to fulfill their payment obligations to the Company. The Company develops its estimate of credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher than normal risk profile after taking into account management’s internal credit quality classifications, as well as macro-economic and industry risk factors. The following table summarizes the activity in the allowance for credit losses related to accounts receivable for the three and nine months ended September 30, 2020: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Theater Operators Studios Other Total Theater Operators Studios Other Total Beginning balance $ 6,317 $ 5,455 $ 838 $ 12,610 $ 3,302 $ 893 $ 942 $ 5,137 Current period provision 1,623 (262 ) 468 1,829 4,718 4,424 364 9,506 Write-offs (614 ) — — (614 ) (614 ) — — (614 ) Recoveries — — — — — — — — Foreign exchange 133 184 (9 ) 308 53 60 (9 ) 104 Ending balance $ 7,459 $ 5,377 $ 1,297 $ 14,133 $ 7,459 $ 5,377 $ 1,297 $ 14,133 For the three and nine months ended September 30, 2020, the Company recorded provisions for current expected credit losses of $1.8 million and $9.5 million, respectively, reflecting a reduction in the credit quality of its theater and studio related accounts receivable, which management believes is primarily related to the COVID-19 global pandemic. For the three months ended September 30, 2020, the reduction to the provision for Studios is principally due to improved collection experience with a particular customer. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company’s customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Notes 1 and 2). Financing Receivables Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Theater Systems. Similar to accounts receivable, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The internal credit quality classifications utilized by the Company for accounts receivable, as described above, are also used for financing receivables. The ability of the Company to collect its financing receivable balances is heavily dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators may experience financial difficulties, such as those imposed by the COVID-19 global pandemic, that could cause them to be unable to fulfill their payment obligations to the Company. The Company develops its estimate of credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher than normal risk profile after taking into account management’s internal credit quality classifications, as well as macro-economic and industry risk factors. As at September 30, 2020 and December 31, 2019, financing receivables consist of the following: September 30, December 31, 2020 2019 Net investment in leases Gross minimum payments due under sales-type leases $ 18,476 $ 16,766 Unearned finance income (877 ) (1,005 ) Present value of minimum payments due under sales-type leases 17,599 15,761 Allowance for credit losses (504 ) (155 ) Net investment in leases 17,095 15,606 Financed sales receivables Gross minimum payments due under financed sales 144,394 146,660 Unearned finance income (30,106 ) (33,313 ) Present value of minimum payments due under financed sales 114,288 113,347 Allowance for credit losses (4,643 ) (915 ) Net financed sales receivables 109,645 112,432 Total financing receivables $ 126,740 $ 128,038 Net financed sales receivables due within one year $ 34,197 $ 27,595 Net financed sales receivables due after one year $ 75,448 $ 84,837 Total financed sales receivables $ 109,645 $ 112,432 As at September 30, 2020 and December 31, 2019, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sale receivables, as applicable, are as follows: September 30, December 31, 2020 2019 Weighted-average remaining lease term (in years) Sales-type lease arrangements 7.9 8.1 Weighted-average interest rate Sales-type lease arrangements 5.38 % 6.68 % Financed sales receivables 9.04 % 9.00 % The following tables provide information on the Company’s net investment in leases by credit quality indicator as at September 30, 2020 and December 31, 2019: By Origination Year As at September 30, 2020 2020 2019 2018 2017 2016 Prior Total Net investment in leases: Credit quality classification: In good standing $ 1,861 $ — $ — $ 958 $ — $ 2,141 $ 4,960 Credit Watch — 8,106 3,087 — — 707 11,900 Pre-approved transactions — — — — — 9 9 Transactions suspended — — — — — 730 730 Total net investment in leases $ 1,861 $ 8,106 $ 3,087 $ 958 $ — $ 3,587 $ 17,599 By Origination Year As at December 31, 2019 2019 2018 2017 2016 2015 Prior Total Net investment in leases: Credit quality classification: In good standing $ 7,874 $ 3,045 $ 989 $ — $ — $ 3,186 $ 15,094 Credit Watch — — — — — 667 667 Pre-approved transactions — — — — — — — Transactions suspended — — — — — — — Total net investment in leases $ 7,874 $ 3,045 $ 989 $ — $ — $ 3,853 $ 15,761 The following tables provide information on the Company’s financed sale receivables by credit quality indicator as at September 30, 2020 and December 31, 2019: By Origination Year As at September 30, 2020 2020 2019 2018 2017 2016 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 3,009 $ 3,509 $ 1,171 $ 262 $ 1,876 $ 6,397 $ 16,224 Credit Watch 701 8,242 13,545 15,584 14,388 41,424 93,884 Pre-approved transactions — — — — 599 668 1,267 Transactions suspended — — — 924 905 1,084 2,913 Total financed sales receivables $ 3,710 $ 11,751 $ 14,716 $ 16,770 $ 17,768 $ 49,573 $ 114,288 By Origination Year As at December 31, 2019 2019 2018 2017 2016 2015 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 11,981 $ 14,414 $ 16,556 $ 15,208 $ — $ 44,291 $ 102,450 Credit Watch — — 637 1,687 — 6,955 9,279 Pre-approved transactions — — 250 295 — 285 830 Transactions suspended — — — 165 — 623 788 Total financed sales receivables $ 11,981 $ 14,414 $ 17,443 $ 17,355 $ — $ 52,154 $ 113,347 The following tables provide an aging analysis for the Company’s net investment in leases and financed sale receivables as at September 30, 2020 and December 31, 2019: As at September 30, 2020 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 132 $ 161 $ 1,053 $ 1,346 $ 16,253 $ 17,599 $ (504 ) $ 17,095 Financed sales receivables 1,686 2,359 13,312 17,357 96,931 114,288 (4,643 ) 109,645 Total $ 1,818 $ 2,520 $ 14,365 $ 18,703 $ 113,184 $ 131,887 $ (5,147 ) $ 126,740 As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 30 $ 68 $ 251 $ 349 $ 15,412 $ 15,761 $ (155 ) $ 15,606 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 The Company considers financing receivables with an aging between 60-89 days as indications of theaters with potential collection concerns. At this point, 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 perform an enhanced review to assess collectibility of the theater’s past due accounts. The over 90 days past due category may be an indicator of potential impairment as up to 90 days outstanding is considered to be a reasonable time to resolve any issues. Given the potential impacts of the COVID-19 global pandemic on the Company’s customers, management is enhancing its monitoring procedures with respect to overdue receivables. The following table provides information about the Company’s net investment in leases and financed sale receivables with billed amounts past due for which it continues to accrue finance income as at September 30, 2020 and December 31, 2019: As at September 30, 2020 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Allowance for Credit Losses Net Net investment in leases $ 123 $ 142 $ 746 $ 1,011 $ 12,181 $ (290 ) $ 12,902 Financed sales receivables 1,384 1,908 12,991 16,283 69,963 (2,211 ) 84,035 Total $ 1,507 $ 2,050 $ 13,737 $ 17,294 $ 82,144 $ (2,501 ) $ 96,937 As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Allowance for Credit Losses Net Net investment in leases $ 9 $ 19 $ 251 $ 279 $ 578 $ — $ 857 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 The following table provides information about the Company’s net investment in leases and financed sale receivables that are on nonaccrual status as at September 30, 2020 and December 31, 2019: As at September 30, 2020 As at December 31, 2019 Recorded Receivable Allowance for Credit Losses Net Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 730 $ (18 ) $ 712 $ — $ — $ — Net financed sales receivables 2,913 (1,187 ) 1,726 788 (732 ) 56 Total $ 3,643 $ (1,205 ) $ 2,438 $ 788 $ (732 ) $ 56 A theater operator that is classified within the “All Transactions Suspended” category is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. While the 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 collectibility issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of finance income. For the nine months ended September 30, 2020, the Company recognized $0.1 million (2019 —$0.1 million) in finance income related to the net investment in leases with billed amounts past due. There was no such finance income recognized for the three months ended September 30, 2020 and 2019. For the three and nine months ended September 30, 2020, the Company recognized $1.4 million and $4.2 million, respectively (2019 —$1.5 million and $5.1 million, respectively) in finance income related to the financed sale receivables with billed amounts past due. The following table summarizes the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Net Investment Financed Net Investment Financed in Leases Sales Receivables in Leases Sales Receivables Beginning balance $ 459 $ 3,709 $ 155 $ 915 Current period provision 105 1,201 409 4,014 Write-offs (69 ) (330 ) (69 ) (330 ) Recoveries — — — — Foreign exchange 9 63 9 44 Ending balance $ 504 $ 4,643 $ 504 $ 4,643 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Net Investment Net Financed Net Investment Net Financed in Leases Sales Receivables in Leases Sales Receivables Beginning balance $ 155 $ 839 $ 155 $ 839 Charge-offs — — — — Recoveries — — — — Provision — 76 — 76 Ending balance $ 155 $ 915 $ 155 $ 915 For the three and nine months ended September 30, 2020, the Company recorded a provision for current expected credit losses of $1.3 million and $4.4 million, respectively, reflecting a reduction in the credit quality of its theater related financing receivables, which management believes is primarily related to the COVID-19 global pandemic. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company’s customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Notes 1 and 2). Variable Consideration Receivable In sale arrangements, variable consideration may become due to the Company from theater operators if certain annual minimum box office receipt thresholds are exceeded. Such variable consideration is recorded as revenue in the period when the sale is recognized and adjusted in future periods based on actual results and changes in estimates. Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal. The ability of the Company to collect its variable consideration receivables is heavily dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators may experience financial difficulties, such as those imposed by the COVID-19 global pandemic, that could cause them to be unable to fulfill their payment obligations to the Company. The Company develops its estimate of credit losses by class of receivable and customer type through a calculation utiliz ing historic al loss rates for financed sale receivables which are then adjusted for specific receivables that are judged to have a higher than normal risk profile after taking into account management’s internal credit quality classifications, as well as macro-economic and industry risk factors. The following table summarizes the activity in the allowance for credit losses related to variable consideration receivables for the three and nine months ended September 30, 2020: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Theater Operators Theater Operators Beginning balance $ 863 $ — Current period provision 790 1,653 Write-offs — — Recoveries — — Foreign Exchange 6 6 Ending balance $ 1,659 $ 1,659 For the nine months ended September 30, 2020, the Company recorded a provision of $1.7 million for current expected credit losses, reflecting a reduction in the credit quality of its theater related variable consideration receivables, which management believes is primarily related to the COVID-19 global pandemic. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company’s customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Notes 1 and 2). |
Lease Arrangements
Lease Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Arrangements | 5. Lease Arrangements IMAX Corporation as a Lessee The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs and its level of investment in leasehold improvements, among other factors. The incremental borrowing rate used in the calculation of the Company’s lease 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 lives of right-of-use assets and related leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. For three and nine months ended September 30, 2020 and 2019, the components of lease expense recorded within Selling, General and Administrative expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost (1) $ 133 $ 102 $ 392 $ 565 Amortization of lease assets 706 667 2,155 1,863 Interest on lease liabilities 258 265 765 807 Total lease cost $ 1,097 $ 1,034 $ 3,312 $ 3,235 (1) Includes short-term leases and variable lease costs, which are not significant for the three and nine months ended September 30, 2020 and 2019. For three and nine months ended September 30, 2020 and 2019, supplemental cash and non-cash information related to leases is as follows: Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 2,721 $ 2,732 Right-of-use assets obtained in exchange for lease obligations $ 297 $ 17,879 As at September 30, 2020 and December 31, 2019, supplemental balance sheet information related to leases is as follows: September 30, December 31, 2020 2019 Assets Right-of-Use Assets Property, plant and equipment $ 14,480 $ 16,262 Liabilities Operating Leases Accrued and other liabilities $ 17,156 $ 18,677 As at September 30, 2020 and December 31, 2019, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s operating leases are as follows: September 30, December 31, 2020 2019 Weighted-average remaining lease term (years) 7.7 8.1 Weighted-average discount rate 5.90 % 5.90 % As at September 30, 2020, the maturities of the Company’s operating lease liabilities are as follows: Operating Leases 2020 (three months remaining) $ 865 2021 3,372 2022 2,847 2023 2,260 2024 2,212 Thereafter 10,137 Total lease payments $ 21,693 Less: interest expense (4,537 ) Present value of operating lease liabilities $ 17,156 IMAX Corporation as a Lessor The Company provides IMAX Theater Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX Theater System, the Company earns fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s sales-type lease arrangements are described in Note 2(n) in the Company’s 2019 Form 10-K. Under the Company’s sales-type lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s sales-type leases 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 sales-type lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company. The Company also provides IMAX Theater Systems to customers through joint revenue sharing arrangements. Under the traditional form of these arrangements, in exchange for providing the IMAX Theater System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than requiring the customer to pay a fixed upfront fee or annual minimum payments. The Company has assessed the nature of its joint revenue sharing arrangements and concluded that the arrangements contain an operating 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 IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company. 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. On April 10, 2020, the FASB staff issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. The guidance allows concessions related to the timing of payments, where the total consideration has not changed, to not be accounted for as lease modifications. Instead, any such concessions can be accounted for as if no change was made to the contract or as variable lease payments. In the second quarter of 2020, the Company adopted the FASB relief guidance and elected to account for any such lease concessions as if no change was made to the underlying contracts. The adoption of this guidance did not have a material effect on the Company’s Condensed Consolidated Financial Statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories As at September 30, 2020 and December 31, 2019, inventories consist of the following: September 30, December 31, 2020 2019 Raw materials $ 34,181 $ 26,538 Work-in-process 4,044 4,608 Finished goods 14,796 11,843 $ 53,021 $ 42,989 When compared to December 31, 2019, inventories increased by $10.0 million due to delays in manufacturing, shipments and installation of IMAX Theater Systems at customer sites due to the COVID-19 global pandemic. At September 30, 2020, inventories include finished goods of $4.8 million (December 31, 2019 — $0.7 million) for which title had passed to the customer, but the criteria for revenue recognition were not met as of the balance sheet date. During the three and nine months ended September 30, 2020, the Company recognized write-downs of $0.6 million and $0.7 million, respectively, for excess and obsolete inventory based on current estimates of net realizable value. There were no write-downs recorded during the three and nine months ended September 30, 2019. |
Credit Facility and Other Finan
Credit Facility and Other Financing Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility and Other Financing Arrangements | 7. Credit Facility and Other Financing Arrangements As at September 30, 2020 and December 31, 2019, bank indebtedness includes the following: September 30, December 31, 2020 2019 Credit Facility $ 300,000 $ 20,000 Working Capital Facility 253 — Unamortized debt issuance costs (2,268 ) (1,771 ) $ 297,985 $ 18,229 Credit Agreement The Company has a credit agreement, the Fifth Amended and Restated Credit Agreement, with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto (the “Credit Agreement”). The Company’s obligations under the Credit Agreement are guaranteed by certain of its subsidiaries (the “Guarantors”) and are secured by first-priority security interests in substantially all the assets of the Company and the Guarantors. The facility provided by the Credit Agreement (the “Credit Facility”) matures on June 28, 2023. The Credit Agreement has a revolving borrowing capacity of $300.0 million, and contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, subject to certain conditions, depending on the mix of revolving and term loans comprising the incremental facility. In the first quarter of 2020, in response to uncertainties associated with the outbreak of the COVID-19 global pandemic and its impact on the Company’s business, the Company drew down the $280.0 million in available borrowing capacity under the Credit Facility, resulting in total outstanding borrowings of $300.0 million. The Credit Agreement contains a covenant that requires the Company to maintain a Senior Secured Net Leverage Ratio (as defined in the Credit Agreement), as at 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, 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 customary representations, warranties and event of default provisions. On June 10, 2020, the Company entered into the First Amendment to the Credit Agreement (the “Amendment”), which, among other things, (i) suspends the Senior Secured Net Leverage Ratio covenant through the first quarter of 2021, (ii) re-establishes the Senior Secured Net Leverage Ratio covenant thereafter, provided that for subsequent quarters that such covenant is tested, as applicable, the Company will be permitted to use its quarterly EBITDA (as defined in the Credit Agreement) from the third and fourth quarters of 2019 in lieu of the EBITDA for the corresponding quarters of 2020, (iii) adds a $75.0 million minimum liquidity covenant measured at the end of each calendar month and (iv) restricts the Company’s ability to make certain restricted payments, dispositions and investments, create or assume liens and incur debt that would otherwise have been permitted by the Credit Agreement. The modifications to the negative covenants, the minimum liquidity covenant and modifications to certain other provisions in the Credit Agreement pursuant to the Amendment were effective from the date of the Amendment until the earlier of the delivery of the compliance certificate for the fourth quarter of 2021 and the date on which the Company, in its sole discretion, elects to calculate its compliance with the Senior Secured Net Leverage Ratio by using either its actual EBITDA or annualized EBITDA (the “Designated Period”). The Company was in compliance with all of its requirements under the Credit Agreement, as amended, as at September 30, 2020, and based on current projections expects to be in compliance through the next twelve months. Borrowings under the Credit Facility 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); provided, however, that from the effective date of the Amendment until the Company delivers a compliance certificate under the Credit Facility following the end of the Designated Period, the applicable margin for LIBOR borrowings will be 2.50% per annum and the applicable margin for U.S. base rate borrowings will be 1.75% per annum. The effective interest rate for the three and nine months ended September 30, 2020 was 2.70% and 2.24%, respectively (2019 — 3.34% and 3.50%, respectively). In addition, the Credit Facility has standby fees ranging from 0.25% to 0.38% per annum, based on the Company’s Total Leverage Ratio with respect to the unused portion of the Credit Facility; provided, however, that from the effective date of the Amendment until the Company delivers a compliance certificate under the Credit Facility following the end of the Designated Period, the standby fee will be 0.50% per annum. The Company incurred fees of approximately $1.1 million in connection with the Amendment, which are being amortized on a straight-line basis through December 31, 2021. As at September 30, 2020 and December 31, 2019, the Company did not have any letters of credit or advance payment guarantees outstanding under the Credit Facility. Working Capital Facility On July 24, 2020, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, renewed its unsecured revolving facility for up to 200.0 million Renminbi (approximately $30.0 million) to fund ongoing working capital requirements (the “Working Capital Facility”). As at September 30, 2020, there was 1.7 million Renminbi ($0.3 million) in borrowings outstanding under the Working Capital Facility and 198.3 million Renminbi ($29.7 million) was available for future borrowings. There were no amounts drawn under the Working Capital facility at December 31, 2019. The amounts available for borrowing under the Working Capital Facility are not subject to a standby fee. The effective interest rate for the three and nine months ended September 30, 2020 was 4.35%, respectively. 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 September 30, 2020, as the fair value of the forward contracts exceeded the notional value (December 31, 2019 — $0.5 million net settlement gain). As at September 30, 2020, the Company has $40.2 million in notional value of such arrangements outstanding (December 31, 2019 — $36.1 million). NBC Facility On October 28, 2019, the Company entered into a $5.0 million facility with the National Bank of Canada (the “NBC Facility”) fully insured by Export Development Canada for use solely in conjunction with the issuance of performance guarantees and letters of credit. The Company did not have any letters of credit or advance payment guarantees outstanding as at September 30, 2020 and December 31, 2019 under the NBC Facility. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | 8. Commitments, Contingencies and Guarantees Commitments In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancellable 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. Contingencies and guarantees The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. Management is required to assess the likelihood of any adverse judgments or outcomes related to these legal contingencies, as well as potential ranges of probable or reasonably possible losses. The Company will record a provision for a liability when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The determination of the amount of any liability recorded or disclosed is reviewed at least quarterly based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel, taking into account the impact of negotiations, settlements, rulings, and other pertinent information related to the case. The amount of liabilities recorded or disclosed for these contingencies may change in the future due to changes in management’s judgments resulting from new developments or changes in settlement strategy. Any resulting adjustment to the liabilities recorded by the Company could have a material adverse effect on its results of operations, cash flows, and financial position in the period or periods in which such changes in judgment occur. The Company believes it has adequate provisions for any such matters. (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 filed an appeal of this decision on February 7, 2020 with the Eleventh Circuit Court of Appeals, but such appeal was dismissed on May 29, 2020. At this time, the Company is unable to determine the amounts that it may ultimately owe pursuant to the Award, or the timing of any such payments, but believes it has adequate provisions recorded in its Condensed Consolidated Balance Sheets related to the Award. In addition to the above, the Company has initiated a claim against Giencourt in the Ontario Superior Court seeking damages from Giencourt with respect to contractual claims under various terminated agreements between the parties. These proceedings are in preliminary stages, and no assurances can be given with respect to the ultimate outcome of the matter, but any amounts, if awarded to the Company under these proceedings, may reduce the Company’s overall financial obligations to Giencourt. (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. A guarantee is a contract (including an indemnity) that contingently requires the Company to make payments (either in cash, financial instruments, other assets, shares of its stock or provision of services) to a third party based on (a) changes in an underlying interest rate, foreign exchange rate, equity or commodity instrument, index or other variable, that is related to an asset, a liability or an equity security of the counterparty, (b) failure of another party to perform under an obligating agreement or (c) failure of another third party to pay its indebtedness when due. Financial Guarantees Certain subsidiaries of the Company have provided significant financial guarantees to third parties under the Credit Agreement. Product Warranties The Company’s accrual for product warranties, which was recorded as part of accrued and other liabilities in the Condensed Consolidated Balance Sheets, was less than $0.1 million and $0.2 million at September 30, 2020 and December 31, 2019 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 Other Indemnification Agreements In the normal course of the Company’s operations, the Company provides indemnifications to counterparties in transactions such as: IMAX Theater Systems lease and sale agreements and the supervision of installation or servicing of IMAX 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 IMAX Theater 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 Condensed Consolidated Financial Statements with respect to the contingent aspect of these indemnities. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Operations Supplemental Information | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Condensed Consolidated Statements of Operations Supplemental Information | 9. Condensed 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, which are included in Costs and Expenses Applicable to Revenues – Technology Sales, totaled $0.6 million and $1.0 million for the three and nine months ended September 30, 2020, respectively (2019 — $0.6 million and $1.5 million, respectively). Film exploitation costs, including advertising and marketing expense, totaled $0.5 million and $3.1 million for the three and nine months ended September 30, 2020, respectively (2019 — expense of $4.3 million and $18.4 million, respectively), and are expensed as incurred in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. Sales commissions related to joint revenue sharing arrangements accounted for operating leases (b) Foreign Exchange Included in Selling, General and Administrative Expenses for the three and nine months ended September 30, 2020 loss (c) Collaborative Arrangements Joint Revenue Sharing Arrangements In a joint revenue sharing arrangement, the Company receives a portion of a theater’s box office receipts and in certain arrangements a portion of concession revenues and a small upfront or initial payment, in exchange for placing an IMAX 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 IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company. The Company has signed traditional and hybrid joint revenue sharing agreements with 41 Amounts attributable to transactions arising between the Company and its customers under joint revenue sharing arrangements are included in Revenues — Technology Sales and Revenues — Technology Rentals and for the three and nine months ended September 30, 2020 amounted to $4.5 million and $11.5 million, respectively (2019 — $17.9 million and $66.1 million, respectively). 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 receives a percentage of the box office receipts from a movie studio in exchange for converting a commercial film into IMAX DMR format and distributing it through the IMAX network. In recent years, the percentage of gross box office receipts earned in IMAX DMR arrangements has averaged approximately 12.5%, except for within Greater China, where the Company receives a lower percentage of net box office receipts for certain Hollywood films. For the three and nine months ended September 30, 2020, the majority of IMAX DMR revenue was earned from the exhibition of six and 20 IMAX DMR films, respectively (2019 – 26 and 59, respectively) and the re-release of classic titles throughout the IMAX theater network. The accounting policy for the Company’s IMAX DMR arrangements is disclosed in Note 2(n) of the Company’s 2019 Form 10-K. Amounts attributable to transactions arising between the Company and its customers under IMAX DMR arrangements are included in Revenues – Image Enhancement and Maintenance Services and for the three and nine months ended September 30, 2020 amounted to $6.9 million and $18.1 million, respectively (2019 — $26.7 million and $93.9 million, respectively). 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. In some cases, the Company obtains exclusive theatrical distribution rights to the film. Under these arrangements, both parties contribute funding to the Company’s partly-owned subsidiary for the production and distribution of the film and for associated exploitation costs. As at September 30, 2020, the Company has two co-produced film arrangements which represent the VIE total assets balance of $1.6 million and liabilities balance of $0.2 million and three other co-produced film arrangements, the terms of which are similar. The accounting policies relating to co-produced film arrangements are disclosed in Notes 2(a) and 2(n) of the Company’s 2019 Form 10-K. For the three and nine months ended September 30, 2020, expenses totaling $0.5 million and $1.9 million, respectively (2019 —$0.1 million and $0.3 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows Supplemental Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Condensed Consolidated Statements of Cash Flows Supplemental Information | 10. Condensed Consolidated Statements of Cash Flows Supplemental Information (a) Changes in other operating assets and liabilities as reported in the Condensed Consolidated Statements of Cash Flows are comprised of the following: Nine Months Ended September 30, 2020 2019 Decrease (increase) in: Financing receivables $ (3,212 ) $ 6,184 Prepaid expenses (1,332 ) (1,163 ) Variable consideration receivable (1,007 ) (1,096 ) Other assets (3,712 ) (4,298 ) Increase (decrease) in: Accounts payable (8,320 ) (8,001 ) Accrued and other liabilities (6,526 ) (9,504 ) $ (24,109 ) $ (17,878 ) (b) Depreciation and amortization are comprised of the following: Nine Months Ended September 30, 2020 2019 Film assets $ 6,159 $ 13,015 Property, plant and equipment: Joint revenue sharing arrangements 19,247 17,179 Other property, plant and equipment 8,478 9,100 Other intangible assets 4,882 4,568 Other assets 1,933 1,262 Deferred financing costs 595 376 $ 41,294 $ 45,500 (c) Write-downs are comprised of the following: Nine Months Ended September 30, 2020 2019 Film assets (1) $ 10,211 $ 179 Other assets (2) 1,151 — Property, plant and equipment Joint revenue sharing arrangements (3) 1,050 748 Other property, plant and equipment 66 78 Inventories (4) 729 — Other intangible assets 132 22 $ 13,339 $ 1,027 (1) In the nine months ended September 30, 2020, the Company recorded impairment losses of $10.2 million (2019 — $0.2 million) principally to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. To a much lesser extent, the impairment losses also relate to the write-down of DMR related film assets. As of , following the recording of these write-downs, the Company’s film assets totaled $7.5 million, which principally consists of DMR and documentary content. (2) In the nine months ended September 30, 2020, the Company recorded a $1.2 million (2019 — $ nil (3) In the nine months ended September 30, 2020, the Company recorded charges of $1.1 million in Costs and Expenses Applicable to Technology Rentals principally related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. In the nine months ended September 30, 2019, the Company recorded a charge of $0.1 million in Costs and Expenses Applicable to Technology Rentals and $0.1 million in Revenues -Technology Rentals related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. (4) In the nine months ended September 30, 2020, the Company recorded write-downs of $0.7 million (2019 — $nil) related to excess inventory. (d) Significant non-cash investing activities are comprised of the following: Nine Months Ended September 30, 2020 2019 Net (decrease) increase in accruals related to: Investment in joint revenue sharing arrangements $ (1,897 ) $ 2,040 Acquisition of other intangible assets 69 6 Purchases of property, plant and equipment 158 (432 ) $ (1,670 ) $ 1,614 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes (a) Income Tax Expense For the three months ended September 30, 2020, the Company recorded income tax expense of $19.3 million (2019 — tax expense of $3.0 million), which includes a $23.7 million valuation allowance to reduce the value of deferred tax assets in certain jurisdictions where the Company incurs corporate leadership and administrative costs and where management could not reliably estimate future taxable income in those jurisdictions due to uncertainties associated with the COVID-19 global pandemic. For the nine months ended September 30, 2020, the Company recorded income tax expense of $24.6 million (2019 — tax expense of $12.0 million), which includes the $23.7 million valuation allowance recorded in the third quarter of 2020, as discussed above. The At the point in time when the uncertainties of COVID-19 resolve and the Company is able to reliably forecast sufficient future taxable income in the impacted jurisdictions, the $23.7 million valuation allowance recorded in the third quarter of 2020 may be reversed. Despite this valuation allowance, the Company remains entitled to benefit from tax attributes which currently have a valuation allowance applied As at September 30, 2020, the Company’s Condensed Consolidated Balance Sheets include net deferred income tax assets of $17.7 million, net of a valuation allowance of $23.9 million (December 31, 2019 — $23.9 million, net of a valuation allowance of $0.2 million). The utilization of the Company’s deferred tax assets is dependent on having a sufficient level of future tax benefits, such as taxable income in each of the jurisdictions to which the deferred tax assets relate. Accordingly, the net amount recorded on the Condensed Consolidated Balance Sheets relies on management’s estimates of future taxable income and is therefore subject to the uncertainties associated with accounting estimates, as discussed in Note 1. Should actual results differ from management’s estimates of future taxable income, an increased valuation allowance may be required. $18.7 million In the first quarter of 2020, management completed a reassessment of its strategy with respect to the most efficient means of deploying the Company’s capital resources globally. Based on the results of this reassessment, management concluded that the historical earnings of certain foreign subsidiaries in excess of amounts required to sustain business operations would no longer be indefinitely reinvested. As a result, the Company recognized a deferred tax liability of $19.7 million $18.7 million (b) Income Tax Effect on Other Comprehensive (Loss) Income The income tax (expense) benefit included in the Company’s other comprehensive (loss) income are related to the following items: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Unrealized change in cash flow hedging instruments $ (160 ) $ (84 ) $ 235 $ (266 ) Realized change in cash flow hedging instruments upon settlement (29 ) 138 (211 ) 42 Unrecognized actuarial gain on defined benefit plan — — 40 — $ (189 ) $ 54 $ 64 $ (224 ) |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Capital Stock | 12. Capital Stock (a) Share-Based Compensation For the three and nine months ended September 30, 2020, share-based compensation expense totaled $5.3 million and $16.0 million, respectively (2019 — $5.5 million and $16.9 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost and expenses applicable to revenues $ 130 $ 448 $ 530 $ 1,268 Selling, general and administrative expenses 5,151 4,983 15,325 15,371 Research and development 29 96 114 277 $ 5,310 $ 5,527 $ 15,969 $ 16,916 For the three and nine months ended September 30, 2020, there was a decrease in share-based compensation expenses allocated to Costs and Expenses Applicable to Revenues and Research and Development, when compared to same period in 2019, due to the lower level of production during the COVID-19 global pandemic. The following table summarizes the Company’s share-based compensation expense by each award type: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock Options $ 433 $ 2,145 $ 1,449 $ 6,228 Restricted Share Units 3,430 2,933 10,866 9,175 Performance Stock Units 483 — 1,229 — IMAX China Stock Options 600 86 701 230 IMAX China Long Term Incentive Plan Restricted Share Units 332 363 1,645 1,283 IMAX China Long Term Incentive Plan Performance Stock Units 32 — 79 — $ 5,310 $ 5,527 $ 15,969 $ 16,916 Included in the above table is an expense of $nil and $0.1 million in the three and nine months ended September 30, 2020, respectively (2019 — less than $0.1 million and less than $0.1 million, respectively) related to restricted share units granted to a certain advisor of the Company. In the third quarter of 2020, IMAX China modified the terms of certain fully vested stock options to extend their contractual life by two years and recorded an associated expense of $0.6 million. Stock Option Summary The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) and IMAX Amended and Restated Long Term Incentive Plan (as amended, “IMAX LTIP”) for the nine months ended September 30, 2020 and 2019: Number of Shares Weighted Average Exercise Price Per Share 2020 2019 2020 2019 Stock options outstanding, beginning of period 5,732,209 5,465,046 $ 26.82 $ 27.63 Granted — 1,016,882 — 20.66 Exercised — (86,337 ) — 20.15 Forfeited (23,633 ) (329,346 ) 22.35 23.60 Expired (772,665 ) (299,134 ) 27.03 25.82 Cancelled (18,483 ) (26,281 ) 27.97 31.08 Stock options outstanding, end of period 4,917,428 5,740,830 26.80 26.82 Stock options exercisable, end of period 4,315,484 4,511,208 27.32 27.76 Stock options are no longer granted under the Company’s previously approved SOP. Restricted Share Units (“RSU”) Summary The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the nine months ended September 30, 2020 and 2019: Number of Awards Weighted Average Grant Date Fair Value Per Share 2020 2019 2020 2019 RSUs outstanding, beginning of period 1,065,347 1,033,871 $ 23.17 $ 25.70 Granted 1,050,385 649,389 15.35 22.33 Vested and settled (386,451 ) (367,020 ) 21.59 26.66 Forfeited (54,933 ) (206,593 ) 19.70 23.77 RSUs outstanding, end of period 1,674,348 1,109,647 18.75 23.77 Performance S tock Units Summary In the first quarter of 2020, the Company expanded its share-based compensation program to include performance stock units (“PSUs”). 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. These awards vest over a three-year performance period. The grant date fair value of PSUs with EBITDA-based targets is equal to the closing price on date of grant or the average closing price of the Company’s common stock for five days prior to the date of grant. The grant date fair value of PSUs with stock-price targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model that 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, market conditions as of the grant date, the Company’s expected stock price volatility over the term of the awards, and other relevant data. The compensation expense is fixed on the date of grant based on the dollar value granted. The amount and timing of compensation expense recognized for PSUs with EBITDA-based targets is dependent upon management's assessment of the likelihood and timing of achieving these targets. If, as a result of management’s assessment, it is projected that a greater number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase compensation expense is recorded in the period such determination is made. Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period such determination is made. The Company will complete an assessment of the likelihood of achieving these targets in the fourth quarter of 2020 in connection with its annual budget process for 2021. As a result, no adjustment to compensation expense has been recognized in the three and nine months ended September 30, 2020, respectively, related to the PSUs granted in 2020. Compensation expense is not adjusted for estimated forfeitures, but is instead adjusted based upon the actual forfeiture of the award. The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the nine months ended September 30: Number of Awards Weighted Average Grant Date Fair Value Per Share 2020 2019 2020 2019 Granted 370,265 — $ 15.66 $ — Forfeited (2,526 ) — 14.84 — PSUs outstanding, end of period 367,739 — 15.67 — Issuer Purchases of Equity Securities In 2017, the Company’s Board of Directors approved a new $200.0 million common stock share repurchase program which would have expired on June 30, 2020. In June 2020, the Board of Directors approved a 12-month extension of this program which will now expire on June 30, 2021. 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. There were no common stock repurchases during the three months ended September 30, 2020. During the nine months ended September 30, 2020, the Company repurchased 2,484,123 shares of its common stock at an average price of $14.72 per share, excluding commissions. During the three and nine months ended September 30, 2019, the Company repurchased 46,615 and 134,384 common shares, respectively at an average price of $20.35 and $19.76 per share, respectively excluding commissions. The total number of shares purchased during the three and nine months ended September 30, 2020 does not include nil and 200,000 common shares (2019 — 45,000 and 445,000 common shares, respectively) purchased in the administration of employee share-based compensation plans, at an average price of $nil and $15.43 per share (2019 — $21.52 and $22.83 per share, respectively). As at September 30, 2020, the IMAX LTIP trustee held 17,578 shares (December 31, 2019 — 187,020 shares) purchased for $0.3 million (December 31, 2019 — $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 Condensed Consolidated Balance Sheets. 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 as at June 6, 2019 (35,605,560 shares). The share repurchase program expired on the date of the 2020 Annual General Meeting of IMAX China on June 11, 2020. During the 2020 Annual General Meeting, shareholders approved the repurchase of shares of IMAX China not to exceed 10% of the total number of issued shares as of June 11, 2020 (34,848,398 shares). This program will be valid until the 2021 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. During the three and nine months ended September 30, 2020, IMAX China repurchased nil and 906,400 shares of its common stock, respectively, at an average price of HKD nil and HKD 13.13 per share, respectively (U.S. $nil and U.S. $1.69, respectively). During the three and nine months ended September 30, 2019, IMAX China repurchased 1,025,800 and 8,051,500 of its common shares, respectively, at an average price of HKD 17.90 and HKD 18.63 per share, respectively (U.S. $2.29 and U.S. $2.38, respectively). (b) Basic and Diluted Weighted Average Shares Outstanding The following table reconciles the denominator of the basic and diluted weighted average share computations: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 58,857 61,331 61,176 61,434 Weighted average number of shares repurchased, net of shares issued during the period 2 (27 ) (1,816 ) (97 ) Weighted average number of shares used in computing basic income per share 58,859 61,304 59,360 61,337 Assumed exercise of stock options, RSUs and PSUs, net of shares assumed repurchased, if dilutive — 175 — 172 Weighted average number of shares used in computing diluted income per share 58,859 61,479 59,360 61,509 For the three and nine months ended September 30, 2020, the calculation of diluted weighted average shares outstanding excludes 6,959,515 and 6,959,515 shares, respectively (2019 — 5,289,172 and 5,902,208 shares, respectively) of common shares issuable upon the vesting of RSUs and PSUs and the exercise of stock options as the effect would be anti-dilutive. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 13. Revenue from Contracts with Customers (a) Disaggregated Information About Revenue The following tables summarize the Company’s revenues by type and reportable segment for the three and nine months ended September 30, 2020: Three Months Ended September 30, 2020 Revenue from Contracts with Customers Revenue from Fixed Consideration Variable Consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 13,515 $ 1,481 $ — $ — $ 14,996 Joint Revenue Sharing Arrangements, fixed fees — — 57 — 57 Other Theater Business 307 — — — 307 Other sales (1) 378 15 — — 393 Sub-total 14,200 1,496 57 — 15,753 Image enhancement and maintenance services IMAX DMR — 6,886 — — 6,886 IMAX Maintenance 5,855 — — — 5,855 Film Post-Production 739 — — — 739 Film Distribution 750 376 — — 1,126 Other — (17 ) — — (17 ) Sub-total 7,344 7,245 — — 14,589 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 4,473 — 4,473 Sub-total — — 4,473 — 4,473 Finance income IMAX Systems — — — 2,441 2,441 Total $ 21,544 $ 8,741 $ 4,530 $ 2,441 $ 37,256 Nine Months Ended September 30, 2020 Revenue from Contracts with Customers Revenue from Fixed consideration Variable consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 17,036 $ 3,143 $ — $ — $ 20,179 Joint Revenue Sharing Arrangements, fixed fees — — 1,196 — 1,196 Other Theater Business 1,261 — — — 1,261 Other sales (1) 1,361 105 — — 1,466 Sub-total 19,658 3,248 1,196 — 24,102 Image enhancement and maintenance services IMAX DMR — 18,061 — — 18,061 IMAX Maintenance 13,225 — — — 13,225 Film Post-Production 3,088 — — — 3,088 Film Distribution 3,000 1,453 — — 4,453 Other — 282 — — 282 Sub-total 19,313 19,796 — — 39,109 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 10,307 — 10,307 Sub-total — — 10,307 — 10,307 Finance income IMAX Systems — — — 7,495 7,495 Total $ 38,971 $ 23,044 $ 11,503 $ 7,495 $ 81,013 (1) Other sales include revenues associated with New Business Initiatives such as IMAX Enhanced. The following tables summarize the Company’s revenues by type and reportable segment for the three and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Revenue from Contracts with Customers Revenue from Fixed Consideration Variable Consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 15,552 $ 2,580 $ — $ — $ 18,132 Joint Revenue Sharing Arrangements, fixed fees — — 1,438 — 1,438 Other Theater Business 1,560 — — — 1,560 Other sales (1) 575 30 — — 605 Sub-total 17,687 2,610 1,438 — 21,735 Image enhancement and maintenance services IMAX DMR — 26,665 — — 26,665 IMAX Maintenance 13,657 — — — 13,657 Film Post-production 2,185 — — — 2,185 Film Distribution — 1,343 — — 1,343 Other 318 — — 318 Sub-total 15,842 28,326 — — 44,168 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 16,605 — 16,605 Other — — 1,037 — 1,037 Sub-total — — 17,642 — 17,642 Finance income IMAX Systems — — — 2,845 2,845 Total $ 33,529 $ 30,936 $ 19,080 $ 2,845 $ 86,390 Nine Months Ended September 30, 2019 Revenue from Contracts with Customers Revenue from Fixed consideration Variable consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 36,790 $ 5,610 $ — $ — $ 42,400 Joint Revenue Sharing Arrangements, fixed fees — — 6,525 — 6,525 Other Theater Business 5,766 — — — 5,766 Other sales (1) 1,763 175 — — 1,938 Sub-total 44,319 5,785 6,525 — 56,629 Image enhancement and maintenance services IMAX DMR — 93,908 — — 93,908 IMAX Maintenance 39,815 — — — 39,815 Film Post-production 6,458 — — — 6,458 Film Distribution — 3,333 — — 3,333 Other 1,463 — — 1,463 Sub-total 46,273 98,704 — — 144,977 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 60,189 — 60,189 Other — 26 1,460 — 1,486 Sub-total — 26 61,649 — 61,675 Finance income IMAX Systems — — — 8,104 8,104 Total $ 90,592 $ 104,515 $ 68,174 $ 8,104 $ 271,385 (1) Other sales include revenues associated with New Business Initiatives, such as IMAX Enhanced. (See Note 2 for information on the current impacts and uncertainties relating to the COVID-19 global pandemic, which are impacting the Company’s revenues.) (b) Deferred Revenue IMAX Theater System sale and lease arrangements include a requirement for the Company to provide maintenance services over the life of the arrangement, subject to a consumer price index adjustment each year. In circumstances where customers prepay the entire term’s maintenance fee, additional payments are due to the Company for the years after its extended warranty and maintenance obligations expire. Payments upon renewal each year are either prepaid or made in arrears and can vary in frequency from monthly to annually. At September 30, 2020, $16.7 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2019 — $17.7 million). Maintenance revenue is recognized evenly over the contract term which coincides with the period over which maintenance services are provided. In the event of customer default, any payments made by the customer may be retained by the Company. In instances where the Company receives consideration prior to satisfying its performance obligations, the recognition of revenue is deferred. The majority of the deferred revenue balance relates to payments received by the Company for IMAX Theater Systems where control of the system has not transferred to the customer. The deferred revenue balance related to an individual theater increases as progress payments are made and is then derecognized when control of the system is transferred to the customer. Recognition dates are variable and depend on numerous factors, including some outside of the Company’s control. (See Note 2 for information on the current impacts of and uncertainties relating to the COVID-19 global pandemic which are impacting Company’s revenues |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. Segment Reporting The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM, along with other members of management, assess segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangibles, provisions for (recoveries of) current expected credit losses, certain write-downs, interest income, interest expense and tax (expense) benefit are not allocated to the segments. The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements; (iii) IMAX Systems, (iv) IMAX Maintenance; (v) Other Theater Business; (vi) New Business Initiatives; (vii) Film Distribution; and (viii) Film Post-production. The Company organizes its reportable segments into the following four categories, identified by the nature of the product sold or service provided: (i) IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR segment and contingent rent from the Joint Revenue Sharing Arrangement (“JRSA”) segment; (ii) IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment; (iii) New Business Initiatives, which is a segment that includes activities related to the exploration of new lines of business and new initiatives outside of the Company’s core business; and (iv) Film Distribution and Post-production, which includes activities related to the licensing of film content, and the distribution of films primarily for the Company’s institutional theater partners (through the Film Distribution segment) and the provision of film post-production and quality control services (through the Film Post-production segment). The Company is presenting information at a disaggregated level to provide more relevant information to readers. Transactions between the IMAX DMR segment and the Film Post-production segment are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. The following table sets forth the breakdown of revenue and gross margin (margin loss) by category for the three months ended September 30, 2020: Revenue Gross Margin (Margin Loss) (3) 2020 2019 2020 2019 IMAX Technology Network IMAX DMR $ 6,886 $ 26,665 $ 3,079 $ 17,866 Joint revenue sharing arrangements, contingent rent 4,473 16,605 (2,491 ) 9,524 11,359 43,270 588 27,390 IMAX Technology Sales and Maintenance IMAX Systems (1) 17,437 20,977 8,671 11,652 Joint revenue sharing arrangements, fixed fees 57 1,438 (117 ) 136 IMAX Maintenance 5,855 13,657 794 6,125 Other Theater Business (2) 307 1,560 31 505 23,656 37,632 9,379 18,418 New Business Initiatives 378 596 372 541 Film Distribution and Post-production Film Distribution (4) 1,126 1,343 (5,597 ) (760 ) Post-production 739 2,185 (464 ) 810 1,865 3,528 (6,061 ) 50 Sub-total 37,258 85,026 4,278 46,399 Other (2 ) 1,364 (449 ) 721 Total $ 37,256 $ 86,390 $ 3,829 $ 47,120 The following table sets forth the breakdown of revenue and gross margin (margin loss) by category for nine months ended September 30, 2020: Revenue Gross Margin (Margin Loss) (3) 2020 2019 2020 2019 IMAX Technology Network IMAX DMR $ 18,061 $ 93,908 $ 7,492 $ 61,602 Joint revenue sharing arrangements, contingent rent 10,307 60,189 (10,610 ) 40,777 28,368 154,097 (3,118 ) 102,379 IMAX Technology Sales and Maintenance IMAX Systems (1) 27,674 50,504 14,497 26,723 Joint revenue sharing arrangements, fixed fees 1,196 6,525 110 1,301 IMAX Maintenance 13,225 39,815 (355 ) 17,046 Other Theater Business (2) 1,261 5,766 77 1,821 43,356 102,610 14,329 46,891 New Business Initiatives 1,488 1,908 1,245 1,441 Film Distribution and Post-production Film Distribution (4) 4,453 3,333 (9,296 ) (1,093 ) Post-production 3,088 6,458 (96 ) 1,576 7,541 9,791 (9,392 ) 483 Sub-total 80,753 268,406 3,064 151,194 Other 260 2,979 (1,837 ) 619 Total $ 81,013 $ 271,385 $ 1,227 $ 151,813 ( 1 ) Includes initial upfront payments and the present value of fixed minimum payments from sales and sales-type lease arrangements of IMAX Theater Systems, and the present value of estimated variable consideration from sales of IMAX Theater Systems. To a lesser extent, also includes finance income associated with these revenue streams. ( 2 ) Principally includes after-market sales of IMAX projection system parts and 3D glasses . ( 3 ) IMAX DMR gross margin includes marketing costs of $0.4 million and $2.8 million for the three and nine months ended September 30, 2020, respectively (2019 — $4.3 million and $17.7 million, respectively). JRSA gross margin includes advertising, marketing and commission expense of $0.7 million and $1.3 million for the three and nine months ended September 30, 2020, respectively (2019 —$0.8 million and $1.1 million, respectively). IMAX Systems gross margin includes marketing and commission costs of $0.6 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, (2019 — $0.6 million and $1.5 million, respectively). Film Distribution segment gross margin includes marketing expense of $0.2 million and $0.4 million for the three and nine months ended September 30, 2020, respectively (2019 — $0.1 million and $0.7 million, respectively). (4) During the three and nine months ended September 30, 2020, Film Distribution segment results were significantly influenced by impairment losses of $ 5.4 million (2019 – $ 0.2 million 0.2 million 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 remastered films. IMAX DMR revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the theater. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenue Greater China $ 19,346 $ 26,557 $ 26,008 $ 85,813 Western Europe 5,085 8,433 10,273 28,809 Asia (excluding China) 4,935 13,534 12,663 32,287 United States 4,335 24,316 21,112 84,553 Latin America 1,616 2,912 3,251 7,725 Russia & the CIS 738 2,909 2,962 10,216 Canada 384 1,993 1,327 6,485 Rest of the World 817 5,736 3,417 15,497 Total $ 37,256 $ 86,390 $ 81,013 $ 271,385 No single country in the Rest of the World, Western Europe, Latin America and Asia (excluding Greater China) comprises more than 10% of the Company’s total revenue in the three months ended September 30, 2020. |
Employees Pension and Postretir
Employees Pension and Postretirement Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employees Pension and Postretirement Benefits | 1 5 . Employee's Pension and Postretirement Benefits (a) Defined Benefit Plan The Company has an unfunded defined benefit supplemental executive retirement plan (the “SERP”) covering Richard L. Gelfond, its CEO. The accounting for the SERP assumes that Mr. Gelfond will receive a lump sum payment of $20.3 million six months after retirement at the end of the current term of his employment agreement (December 31, 2022), although Mr. Gelfond has not informed the Company that he intends to retire at that time. As at September 30, 2020 and December 31, 2019, the Company’s projected benefit obligation and unfunded status related to the SERP are as follows: September 30, December 31, 2020 2019 Projected benefit obligation: Obligation, beginning of period $ 18,840 $ 17,977 Prior Service cost — 456 Interest cost 284 564 Actuarial gain — (157 ) Obligation, end of period and unfunded status $ 19,124 $ 18,840 The accumulated benefit obligation for the SERP was $19.1 million at September 30, 2020 (December 31, 2019 —$18.8 million). For the three and nine months ended September 30, 2020, the Company recorded interest costs of $0.1 million and $0.3 million, respectively, (2019 — $0.1 million and $0.4 million, respectively) related to the SERP. The Company expects to recognize additional interest costs of $0.1 million related to the SERP during the remainder of 2020. No contributions are expected to be made for the SERP during the remainder of 2020. (b) Defined Contribution Pension Plan The Company also maintains defined contribution plans for its employees, including its executive officers. The Company makes contributions to these plans on behalf of employees in an amount up to 5% of their base salary subject to certain prescribed maximums. During the three and nine months ended September 30, 2020, the Company contributed and recorded expense of $0.3 million and $0.8 million, respectively, and $0.5 million, respectively, (c) Postretirement Benefits – Executives The Company has an unfunded postretirement plan for Mr. 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. As at September 30, 2020, the Company’s postretirement benefits obligation under this plan is $0.6 million (December 31, 2019 — $0.7 million). For the three and nine months ended September 30, 2020, the Company has recorded expense of less than $0.1 million and less than $0.1 million, respectively (2019 — less than $0.1 million and less than $0.1 million, respectively) related to this plan. (d) Postretirement Benefits – Canadian Employees The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. As at September 30, 2020, the Company’s postretirement benefits obligation under this plan is $1.5 million (December 31, 2019 — $1.6 million). For the three and nine months ended September 30, 2020, the Company has recorded expense of less than $0.1 million and $0.1 million, respectively (2019 — less than $0.1 million and less than $0.1 million, respectively) related to this plan. (e) Deferred Compensation Benefit Plan The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein). In the fourth quarter of 2018, the executive incurred a separation from service from the Company, and as such, the Retirement Plan benefits became fully vested as at December 31, 2018 and the accelerated costs were recognized and reflected in Executive Transition Costs on the Consolidated Statement of Operations. As at September 30, 2020, the benefit obligation related to the Retirement Plan was $3.6 million (December 31, 2019 — $3.6 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities. As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-service Expenses. The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses. As at September 30, 2020, fair value of the COLI asset was $3.1 million (December 31, 2019 — $3.2 million). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statement of Operations within Gain (Loss) In Fair Value of Investments. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 16. Financial Instruments (a) Cash and Cash Equivalents The Company maintains cash with various major financial institutions. The Company’s cash is invested with highly rated financial institutions. (b) Fair Value Measurements The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As at September 30, 2020 As at December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Level 1 Cash and cash equivalents (1) $ 305,197 $ 305,197 $ 109,484 $ 109,484 Equity securities (3) 14,803 14,803 15,685 15,685 Level 2 Net financed sales receivables (2) $ 109,645 $ 110,443 $ 112,432 $ 111,441 Net investment in sales-type leases (2) 17,095 16,829 15,606 15,309 Convertible loan receivable (2) — — 1,500 1,500 Equity securities (1) 1,000 1,000 1,000 1,000 COLI (4) 3,125 3,125 3,150 3,150 Foreign exchange contracts — (3) 380 380 530 530 Foreign exchange contracts — (3) 102 102 — — Bank indebtedness - under the Working Capital Facility (1) (253 ) (253 ) — — Bank indebtedness - under the Credit Facility (1) (300,000 ) (300,000 ) (20,000 ) (20,000 ) (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. (4) Measured at cash surrender value, which approximates fair value. 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 significant transfers in or out of the Company’s Level 3 assets during the three and nine months ended September 30, 2020 and 2019. (c) Foreign Exchange Risk Management The Company is exposed to market risk from changes in foreign currency rates. A majority of the Company’s revenues is denominated in U.S. dollars while a 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 82 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 September 30, 2020 (the “Foreign Currency Hedges”), with settlement dates throughout 2020 and 2021. Foreign currency derivatives are recognized and measured in the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value (gains or losses) are recognized in the Condensed Consolidated Statements of Operations except for derivatives designated and qualifying as foreign currency cash flow hedging instruments. The Company currently has cash flow hedging instruments associated with selling, general and administrative expenses and inventories. For foreign currency cash flow hedging instruments related to selling, general and administrative expenses, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in Other Comprehensive Income and reclassified to the Condensed Consolidated Statements of Operations when the forecasted transaction occurs. For foreign currency cash flow hedging instruments related to inventories, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in Other Comprehensive Income and reclassified to Inventories in the Condensed Consolidated Balance Sheets when the forecasted transaction occurs. On April 28, 2020, the FASB staff issued a question-and-answer document (Q&A) to respond to frequently asked questions about the disruptive effects of COVID-19 on cash flow hedge accounting. FASB Accounting Standards Codification Topic 815, Derivative and Hedging, provides guidance on when to discontinue cash flow hedge accounting and when and how to reclassify amounts deferred in accumulated other comprehensive income (AOCI) to earnings. The Q&A document addresses how the postponement or cancellation of forecasted transactions related to the effects of the COVID-19 pandemic should be considered when applying cash flow hedge accounting under Topic 815. The Company has considered the Q&A document when applying cash hedge flow accounting under Topic 815. The guidance did not have a material impact to the Company’s Condensed Consolidated Financial Statements. The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Condensed Consolidated Financial Statements: Notional value of foreign exchange contracts: September 30, December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 36,659 36,052 Derivatives not designated as hedging instruments: Foreign exchange contracts — Forwards 3,579 — $ 40,238 $ 36,052 Fair value of derivatives in foreign exchange contracts: September 30, December 31, Balance Sheet Location 2020 2019 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 465 $ 602 Accrued and other liabilities (85 ) (72 ) Derivatives not designated as hedging instruments: Foreign exchange contracts — Forwards Other assets 107 — Accrued and other liabilities (5 ) — $ 482 $ 530 Derivatives in Foreign Currency Hedging relationships are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign exchange contracts Derivative Gain (Loss) — Forwards Recognized in OCI (Effective Portion) $ 591 $ (527 ) $ (935 ) $ (162 ) Location of Derivative Loss Reclassified from AOCI Three Months Ended September 30, Nine months ended September 30, (Effective Portion) 2020 2019 2020 2019 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ (110 ) $ (322 ) $ (779 ) (983 ) Property, plant and equipment — — — (32 ) Inventory — — $ (26 ) — $ (110 ) $ (322 ) $ (805 ) $ (1,015 ) Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Foreign exchange contracts Derivative Gain (Loss) Recognized In — Forwards and Out of OCI $ — $ 2 $ (55 ) $ 2 Non Designated Derivatives in Foreign Currency relationships are as follows: Three Months Ended September 30, Nine months ended September 30, Location of Derivative Gain 2020 2019 2020 2019 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ 75 $ — $ 102 — $ 75 $ — $ 102 $ — The Company's estimated net amount of the existing gains as at September 30, 2020 is $0.5 million, which is expected to be reclassified to earnings within the next twelve months. (d) Investments in Equity Securities As at September 30, 2020, the Condensed Consolidated Balance Sheets includes $14.8 million (December 31, 2019 — $15.7 million) of investments in equity securities. On January 17, 2019, IMAX China (Hong Kong), Limited, a wholly-owned subsidiary of IMAX China, as an investor entered into a cornerstone investment agreement with Maoyan Entertainment (“Maoyan”) (as the issuer) and Morgan Stanley Asia Limited (as a sponsor, underwriter and the underwriters’ representative). Pursuant to this agreement, IMAX China (Hong Kong), Limited agreed to invest $15.2 million to subscribe for a certain number of shares of Maoyan at the final offer price pursuant to the global offering of the share capital of Maoyan, and this investment would be subject to a lock-up period of six months following the date of the global offering. On February 4, 2019, Maoyan completed its global offering, upon which, IMAX China (Hong Kong), Limited became a less than 1% shareholder in Maoyan. This investment is classified as an equity security, with a readily determinable market value through the Hong Kong Stock Exchange. The changes in fair value are recorded in Gain (Loss) in Fair Value of Investment in the Company’s Condensed Consolidated Statement of Operations. As at September 30, 2020, the value of the Company’s investment in Maoyan was $13.7 million (December 31, 2019 — $14.6 million). For the three and nine months ended September 30, 2020, the Company has recorded a net unrealized gain of $1.6 million and a net unrealized loss of $0.9 million, respectively (2019— unrealized losses of $0.5 million and $2.5 million, respectively). The Company has an investment of $1.1 million (December 31, 2019 — $1.0 million) in the shares of an exchange traded fund. This investment is classified as an equity investment. As at September 30, 2020, the Company held investments 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 September 30, 2020 (December 31, 2019 — $1.0 million) and is recorded in Other Assets. |
Non-Controlling Interests
Non-Controlling Interests | 9 Months Ended |
Sep. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Non-Controlling Interests | 17. Non-Controlling Interests (a) IMAX China Non-Controlling Interest The Company indirectly owns approximately 69.89% of IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China is a consolidated subsidiary of the Company. The balance of the non-controlling interest in IMAX China as at September 30, 2020 is $75.5 million. For the three months ended September 30, 2020, the net income attributable to the non-controlling interest in IMAX China is $2.2 million (2019 — $2.3 million). For the nine months ended September 30, 2020, the net loss attributable to the non-controlling interest in IMAX China is $10.3 million (2019 — net income of $9.3 million). (b) Other Non-Controlling Interest The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed by a third party in the amount of $25.0 million, with the possibility of contributing additional funds. The Company has contributed $9.0 million to the Original Film Fund since 2014 and has reached its maximum contribution. As at September 30, 2020, the Original Film Fund has invested $22.3 million toward the development of original films. The related production, financing and distribution agreement includes put and call rights relating to change of control of the rights, title and interest in the co-financed pictures. The following table summarizes the movement of the non-controlling interest in temporary equity, in the Company’s subsidiary for the nine months ended September 30, 2020: Balance as at December 31, 2019 $ 5,908 Net loss (5,132 ) Balance as at September 30, 2020 $ 776 |
Exit Costs, Restructuring Charg
Exit Costs, Restructuring Charges and Associated Impairments | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Exit Costs, Restructuring Charges and Associated Impairments | 18. Exit costs, restructuring charges and associated impairments In 2018, the Company performed a strategic review of its business and decided to exit from certain non-core businesses or initiatives, which included closing its VR locations. In addition, as part of management’s efforts to decrease costs, the Company reduced certain functions and realigned resources. During the nine months ended September 30, 2019, the Company recognized charges of $0.9 million associated with these actions in its Condensed Consolidated Statements of Operations, consisting of restructuring charges and costs to exit leases. Restructuring charges relate to the Company’s corporate unit and are comprised of employee severance costs including benefits and share-based compensation, costs of consolidating facilities and contract termination costs. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 19. Subsequent Event In October 2020, the Company furloughed approximately 150 employees for at least two months beginning on October 26, 2020. This action will enable the Company to temporarily reduce expenses, conserve resources and adjust its operations during the continuing business slowdown associated with the COVID-19 global pandemic. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Accounting Principles | Accounting Principles IMAX Corporation, together with its consolidated subsidiaries (the “Company”), prepares its financial statements in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. In the Company’s opinion, the unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. The interim results presented in the Company’s Condensed Consolidated Statements of Operations are not necessarily indicative of results for a full year, particularly in this interim period due to the impacts of the COVID-19 global pandemic (see Note 2). These Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements In the first quarter of 2020, the Company updated certain account names within Revenues and Costs and Expenses Applicable to Revenues in its Condensed Consolidated Statements of Operations to better describe the nature of its revenue-generating activities and related costs. |
Principles of Consolidation | Principles of Consolidation These Condensed Consolidated Financial Statements include the accounts of the Company, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in Note 17(b). The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which are not material to the Company’s Condensed Consolidated Financial Statements. A loss in value of an investment that is other than temporary is recognized as a charge in the Condensed Consolidated Statements of Operations. |
Estimates and Assumptions | Estimates and Assumptions In preparing the Company’s Condensed Consolidated Financial Statements, management makes judgments in applying various accounting policies. The areas of policy judgment are consistent with those reported in Note 2(b) in the 2019 Form 10-K, with the exception of the estimates used by the Company in applying ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which was adopted To date, the Company’s operations have been significantly impacted by the COVID-19 global pandemic, as described in Note 2. There continues to be significant ongoing uncertainty surrounding the extent and duration of the impacts that the pandemic will continue to have on box office results and the installation of IMAX Theater Systems, as well as the Company’s customers, suppliers, and employees. There is heightened potential for future credit losses on receivables, inventory write downs, impairments of film assets, impairments of long-lived assets (including the theater system equipment supporting the Company’s joint revenue sharing arrangements), impairments of goodwill, valuation allowances against deferred tax assets, and the reversal of variable consideration receivables that are based on estimates of future box office performance. In the current environment, assumptions about box office results, IMAX Theater System installations, and customer creditworthiness have greater variability than normal, which could in the future significantly affect the valuation of the Company’s assets, both financial and non-financial. The cash flow estimates used to test the recoverability of certain of the Company’s long-lived assets are based on a longer time horizon due to the long-term nature of the underlying contracts, allowing time for a recovery of the cash flows associated with the underlying assets groups, which management has factored into its estimates. The accuracy of management’s estimates is dependent, in part, on the timing and extent of the reopening of theaters in the IMAX network, and on the release of new films by movie studios. These theater reopening and film release scenarios are highly uncertain and have been factored into management’s cash flow estimates. As an understanding of the longer-term impacts of COVID-19 on the Company’s customers and business develops, there is a heightened potential for changes in management’s estimates over the remainder of 2020 and into 2021. |
Credit Risk | The Company’s internal credit quality classifications for theater operators are as follows: • Good Standing — The theater operator continues to be in good standing as payments and reporting are up to date. • Credit Watch — The theater operator has demonstrated a delay in payments but continues to be in active communication with the Company. Theater operators placed on Credit Watch are subject to enhanced monitoring. In addition, depending on the size of the outstanding balance, length of time in arrears and other factors, future transactions may need to be approved by management. These receivables are in better condition than those in the Pre-Approved Transactions Only category but are not in as good condition as the receivables in the Good Standing category. • Pre-Approved Transactions Only — The theater operator has demonstrated a delay in payments with little or no communication with the Company. All services and shipments to the theater operator must be reviewed and approved by management. These receivables are in better condition than those in the All Transactions Suspended category but are not in as good condition as the receivables in the Credit Watch category. In certain situation, depending on the individual facts and circumstances related to each customer, finance income recognition may be suspended for the net investment in lease and financed sale receivable balances for customers in the Pre-Approved Transactions Only category. See below for a discussion of the Company’s net investment in leases and financed sale receivables. • All Transactions Suspended — The theater operator is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater operator is classified within the All Transactions Suspended category, the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. |
Financing Receivable, Allowance for Credit Losses | The Company considers financing receivables with an aging between 60-89 days as indications of theaters with potential collection concerns. At this point, 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 perform an enhanced review to assess collectibility of the theater’s past due accounts. The over 90 days past due category may be an indicator of potential impairment as up to 90 days outstanding is considered to be a reasonable time to resolve any issues. Given the potential impacts of the COVID-19 global pandemic on the Company’s customers, management is enhancing its monitoring procedures with respect to overdue receivables. |
Lessee Leases | IMAX Corporation as a Lessee The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs and its level of investment in leasehold improvements, among other factors. The incremental borrowing rate used in the calculation of the Company’s lease 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 lives of right-of-use assets and related leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. |
Lessor Leases | IMAX Corporation as a Lessor The Company provides IMAX Theater Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX Theater System, the Company earns fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s sales-type lease arrangements are described in Note 2(n) in the Company’s 2019 Form 10-K. Under the Company’s sales-type lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s sales-type leases 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 sales-type lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company. The Company also provides IMAX Theater Systems to customers through joint revenue sharing arrangements. Under the traditional form of these arrangements, in exchange for providing the IMAX Theater System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than requiring the customer to pay a fixed upfront fee or annual minimum payments. The Company has assessed the nature of its joint revenue sharing arrangements and concluded that the arrangements contain an operating 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 IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company. 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. On April 10, 2020, the FASB staff issued a question-and-answer document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. The guidance allows concessions related to the timing of payments, where the total consideration has not changed, to not be accounted for as lease modifications. Instead, any such concessions can be accounted for as if no change was made to the contract or as variable lease payments. In the second quarter of 2020, the Company adopted the FASB relief guidance and elected to account for any such lease concessions as if no change was made to the underlying contracts. The adoption of this guidance did not have a material effect on the Company’s Condensed Consolidated Financial Statements. |
Commitments and Contingencies | The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. Management is required to assess the likelihood of any adverse judgments or outcomes related to these legal contingencies, as well as potential ranges of probable or reasonably possible losses. The Company will record a provision for a liability when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The determination of the amount of any liability recorded or disclosed is reviewed at least quarterly based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel, taking into account the impact of negotiations, settlements, rulings, and other pertinent information related to the case. The amount of liabilities recorded or disclosed for these contingencies may change in the future due to changes in management’s judgments resulting from new developments or changes in settlement strategy. Any resulting adjustment to the liabilities recorded by the Company could have a material adverse effect on its results of operations, cash flows, and financial position in the period or periods in which such changes in judgment occur. The Company believes it has adequate provisions for any such matters. |
Segment Reporting | The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements; (iii) IMAX Systems, (iv) IMAX Maintenance; (v) Other Theater Business; (vi) New Business Initiatives; (vii) Film Distribution; and (viii) Film Post-production. The Company organizes its reportable segments into the following four categories, identified by the nature of the product sold or service provided: (i) IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR segment and contingent rent from the Joint Revenue Sharing Arrangement (“JRSA”) segment; (ii) IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment; (iii) New Business Initiatives, which is a segment that includes activities related to the exploration of new lines of business and new initiatives outside of the Company’s core business; and (iv) Film Distribution and Post-production, which includes activities related to the licensing of film content, and the distribution of films primarily for the Company’s institutional theater partners (through the Film Distribution segment) and the provision of film post-production and quality control services (through the Film Post-production segment). The Company is presenting information at a disaggregated level to provide more relevant information to readers. Transactions between the IMAX DMR segment and the Film Post-production segment are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. |
Fair Value of Financial Instruments | The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As at September 30, 2020 As at December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Level 1 Cash and cash equivalents (1) $ 305,197 $ 305,197 $ 109,484 $ 109,484 Equity securities (3) 14,803 14,803 15,685 15,685 Level 2 Net financed sales receivables (2) $ 109,645 $ 110,443 $ 112,432 $ 111,441 Net investment in sales-type leases (2) 17,095 16,829 15,606 15,309 Convertible loan receivable (2) — — 1,500 1,500 Equity securities (1) 1,000 1,000 1,000 1,000 COLI (4) 3,125 3,125 3,150 3,150 Foreign exchange contracts — (3) 380 380 530 530 Foreign exchange contracts — (3) 102 102 — — Bank indebtedness - under the Working Capital Facility (1) (253 ) (253 ) — — Bank indebtedness - under the Credit Facility (1) (300,000 ) (300,000 ) (20,000 ) (20,000 ) (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. (4) Measured at cash surrender value, which approximates fair value. 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 significant transfers in or out of the Company’s Level 3 assets during the three and nine months ended September 30, 2020 and 2019. |
Fair Value Transfer | 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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: September 30, December 31, 2020 2019 Total assets $ 1,571 $ 9,677 Total liabilities (1) $ 245 $ 308 (1) Prior year comparative has been reclassified to conform with current period presentation. |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Summary of Allowance For Credit Losses Related to Accounts Receivable | The following table summarizes the activity in the allowance for credit losses related to accounts receivable for the three and nine months ended September 30, 2020: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Theater Operators Studios Other Total Theater Operators Studios Other Total Beginning balance $ 6,317 $ 5,455 $ 838 $ 12,610 $ 3,302 $ 893 $ 942 $ 5,137 Current period provision 1,623 (262 ) 468 1,829 4,718 4,424 364 9,506 Write-offs (614 ) — — (614 ) (614 ) — — (614 ) Recoveries — — — — — — — — Foreign exchange 133 184 (9 ) 308 53 60 (9 ) 104 Ending balance $ 7,459 $ 5,377 $ 1,297 $ 14,133 $ 7,459 $ 5,377 $ 1,297 $ 14,133 |
Schedule of Financing Receivables | As at September 30, 2020 and December 31, 2019, financing receivables consist of the following: September 30, December 31, 2020 2019 Net investment in leases Gross minimum payments due under sales-type leases $ 18,476 $ 16,766 Unearned finance income (877 ) (1,005 ) Present value of minimum payments due under sales-type leases 17,599 15,761 Allowance for credit losses (504 ) (155 ) Net investment in leases 17,095 15,606 Financed sales receivables Gross minimum payments due under financed sales 144,394 146,660 Unearned finance income (30,106 ) (33,313 ) Present value of minimum payments due under financed sales 114,288 113,347 Allowance for credit losses (4,643 ) (915 ) Net financed sales receivables 109,645 112,432 Total financing receivables $ 126,740 $ 128,038 Net financed sales receivables due within one year $ 34,197 $ 27,595 Net financed sales receivables due after one year $ 75,448 $ 84,837 Total financed sales receivables $ 109,645 $ 112,432 |
Schedule of Weighted-average Remaining Lease Term and Weighted-average Interest Rate | As at September 30, 2020 and December 31, 2019, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sale receivables, as applicable, are as follows: September 30, December 31, 2020 2019 Weighted-average remaining lease term (in years) Sales-type lease arrangements 7.9 8.1 Weighted-average interest rate Sales-type lease arrangements 5.38 % 6.68 % Financed sales receivables 9.04 % 9.00 % |
Schedule of Net Investment In Leases by Credit Quality Indicator | The following tables provide information on the Company’s net investment in leases by credit quality indicator as at September 30, 2020 and December 31, 2019: By Origination Year As at September 30, 2020 2020 2019 2018 2017 2016 Prior Total Net investment in leases: Credit quality classification: In good standing $ 1,861 $ — $ — $ 958 $ — $ 2,141 $ 4,960 Credit Watch — 8,106 3,087 — — 707 11,900 Pre-approved transactions — — — — — 9 9 Transactions suspended — — — — — 730 730 Total net investment in leases $ 1,861 $ 8,106 $ 3,087 $ 958 $ — $ 3,587 $ 17,599 By Origination Year As at December 31, 2019 2019 2018 2017 2016 2015 Prior Total Net investment in leases: Credit quality classification: In good standing $ 7,874 $ 3,045 $ 989 $ — $ — $ 3,186 $ 15,094 Credit Watch — — — — — 667 667 Pre-approved transactions — — — — — — — Transactions suspended — — — — — — — Total net investment in leases $ 7,874 $ 3,045 $ 989 $ — $ — $ 3,853 $ 15,761 |
Schedule of Financed Sale Receivables by Credit Quality Indicator | The following tables provide information on the Company’s financed sale receivables by credit quality indicator as at September 30, 2020 and December 31, 2019: By Origination Year As at September 30, 2020 2020 2019 2018 2017 2016 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 3,009 $ 3,509 $ 1,171 $ 262 $ 1,876 $ 6,397 $ 16,224 Credit Watch 701 8,242 13,545 15,584 14,388 41,424 93,884 Pre-approved transactions — — — — 599 668 1,267 Transactions suspended — — — 924 905 1,084 2,913 Total financed sales receivables $ 3,710 $ 11,751 $ 14,716 $ 16,770 $ 17,768 $ 49,573 $ 114,288 By Origination Year As at December 31, 2019 2019 2018 2017 2016 2015 Prior Total Financed sales receivables: Credit quality classification: In good standing $ 11,981 $ 14,414 $ 16,556 $ 15,208 $ — $ 44,291 $ 102,450 Credit Watch — — 637 1,687 — 6,955 9,279 Pre-approved transactions — — 250 295 — 285 830 Transactions suspended — — — 165 — 623 788 Total financed sales receivables $ 11,981 $ 14,414 $ 17,443 $ 17,355 $ — $ 52,154 $ 113,347 |
Schedule of Aging Analysis for Net Investment in Leases and Financed Sale Receivables | The following tables provide an aging analysis for the Company’s net investment in leases and financed sale receivables as at September 30, 2020 and December 31, 2019: As at September 30, 2020 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 132 $ 161 $ 1,053 $ 1,346 $ 16,253 $ 17,599 $ (504 ) $ 17,095 Financed sales receivables 1,686 2,359 13,312 17,357 96,931 114,288 (4,643 ) 109,645 Total $ 1,818 $ 2,520 $ 14,365 $ 18,703 $ 113,184 $ 131,887 $ (5,147 ) $ 126,740 As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 30 $ 68 $ 251 $ 349 $ 15,412 $ 15,761 $ (155 ) $ 15,606 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 |
Schedule of Net Investment in Leases and Financed Sale Receivables with Billed Amounts Past Due Continues to Accrue Finance Income | The following table provides information about the Company’s net investment in leases and financed sale receivables with billed amounts past due for which it continues to accrue finance income as at September 30, 2020 and December 31, 2019: As at September 30, 2020 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Allowance for Credit Losses Net Net investment in leases $ 123 $ 142 $ 746 $ 1,011 $ 12,181 $ (290 ) $ 12,902 Financed sales receivables 1,384 1,908 12,991 16,283 69,963 (2,211 ) 84,035 Total $ 1,507 $ 2,050 $ 13,737 $ 17,294 $ 82,144 $ (2,501 ) $ 96,937 As at December 31, 2019 Accrued and Current 30-89 Days 90+ Days Billed Unbilled Allowance for Credit Losses Net Net investment in leases $ 9 $ 19 $ 251 $ 279 $ 578 $ — $ 857 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 |
Schedule of Net Investment in Leases and Financed Sale Receivables on Nonaccrual Status | The following table provides information about the Company’s net investment in leases and financed sale receivables that are on nonaccrual status as at September 30, 2020 and December 31, 2019: As at September 30, 2020 As at December 31, 2019 Recorded Receivable Allowance for Credit Losses Net Recorded Receivable Allowance for Credit Losses Net Net investment in leases $ 730 $ (18 ) $ 712 $ — $ — $ — Net financed sales receivables 2,913 (1,187 ) 1,726 788 (732 ) 56 Total $ 3,643 $ (1,205 ) $ 2,438 $ 788 $ (732 ) $ 56 |
Summary of Allowance for Credit Losses Related to Net Investment in Leases and Financed Sale Receivables | The following table summarizes the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Net Investment Financed Net Investment Financed in Leases Sales Receivables in Leases Sales Receivables Beginning balance $ 459 $ 3,709 $ 155 $ 915 Current period provision 105 1,201 409 4,014 Write-offs (69 ) (330 ) (69 ) (330 ) Recoveries — — — — Foreign exchange 9 63 9 44 Ending balance $ 504 $ 4,643 $ 504 $ 4,643 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Net Investment Net Financed Net Investment Net Financed in Leases Sales Receivables in Leases Sales Receivables Beginning balance $ 155 $ 839 $ 155 $ 839 Charge-offs — — — — Recoveries — — — — Provision — 76 — 76 Ending balance $ 155 $ 915 $ 155 $ 915 |
Summary of Allowance For Credit Losses Related to Variable Consideration Receivables | The following table summarizes the activity in the allowance for credit losses related to variable consideration receivables for the three and nine months ended September 30, 2020: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Theater Operators Theater Operators Beginning balance $ 863 $ — Current period provision 790 1,653 Write-offs — — Recoveries — — Foreign Exchange 6 6 Ending balance $ 1,659 $ 1,659 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | For three and nine months ended September 30, 2020 and 2019, the components of lease expense recorded within Selling, General and Administrative expenses are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost (1) $ 133 $ 102 $ 392 $ 565 Amortization of lease assets 706 667 2,155 1,863 Interest on lease liabilities 258 265 765 807 Total lease cost $ 1,097 $ 1,034 $ 3,312 $ 3,235 (1) Includes short-term leases and variable lease costs, which are not significant for the three and nine months ended September 30, 2020 and 2019. |
Supplemental Cash and Non-Cash Flow Information Related to Leases | For three and nine months ended September 30, 2020 and 2019, supplemental cash and non-cash information related to leases is as follows: Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities $ 2,721 $ 2,732 Right-of-use assets obtained in exchange for lease obligations $ 297 $ 17,879 |
Lessee Operating Lease Balance Sheet Amounts and Lines | As at September 30, 2020 and December 31, 2019, supplemental balance sheet information related to leases is as follows: September 30, December 31, 2020 2019 Assets Right-of-Use Assets Property, plant and equipment $ 14,480 $ 16,262 Liabilities Operating Leases Accrued and other liabilities $ 17,156 $ 18,677 |
Lessee Operating Leases Weighted Average Remaining Lease Term and Weighted Average Interest Rate | As at September 30, 2020 and December 31, 2019, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s operating leases are as follows: September 30, December 31, 2020 2019 Weighted-average remaining lease term (years) 7.7 8.1 Weighted-average discount rate 5.90 % 5.90 % |
Lessee Operating Lease, Maturity | As at September 30, 2020, the maturities of the Company’s operating lease liabilities are as follows: Operating Leases 2020 (three months remaining) $ 865 2021 3,372 2022 2,847 2023 2,260 2024 2,212 Thereafter 10,137 Total lease payments $ 21,693 Less: interest expense (4,537 ) Present value of operating lease liabilities $ 17,156 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | As at September 30, 2020 and December 31, 2019, inventories consist of the following: September 30, December 31, 2020 2019 Raw materials $ 34,181 $ 26,538 Work-in-process 4,044 4,608 Finished goods 14,796 11,843 $ 53,021 $ 42,989 |
Credit Facility and Other Fin_2
Credit Facility and Other Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Bank Indebtedness | As at September 30, 2020 and December 31, 2019, bank indebtedness includes the following: September 30, December 31, 2020 2019 Credit Facility $ 300,000 $ 20,000 Working Capital Facility 253 — Unamortized debt issuance costs (2,268 ) (1,771 ) $ 297,985 $ 18,229 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows Supplemental Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Changes in Other Operating Assets and Liabilities | Nine Months Ended September 30, 2020 2019 Decrease (increase) in: Financing receivables $ (3,212 ) $ 6,184 Prepaid expenses (1,332 ) (1,163 ) Variable consideration receivable (1,007 ) (1,096 ) Other assets (3,712 ) (4,298 ) Increase (decrease) in: Accounts payable (8,320 ) (8,001 ) Accrued and other liabilities (6,526 ) (9,504 ) $ (24,109 ) $ (17,878 ) |
Summary of Depreciation and Amortization | Nine Months Ended September 30, 2020 2019 Film assets $ 6,159 $ 13,015 Property, plant and equipment: Joint revenue sharing arrangements 19,247 17,179 Other property, plant and equipment 8,478 9,100 Other intangible assets 4,882 4,568 Other assets 1,933 1,262 Deferred financing costs 595 376 $ 41,294 $ 45,500 |
Write-downs | Nine Months Ended September 30, 2020 2019 Film assets (1) $ 10,211 $ 179 Other assets (2) 1,151 — Property, plant and equipment Joint revenue sharing arrangements (3) 1,050 748 Other property, plant and equipment 66 78 Inventories (4) 729 — Other intangible assets 132 22 $ 13,339 $ 1,027 (1) In the nine months ended September 30, 2020, the Company recorded impairment losses of $10.2 million (2019 — $0.2 million) principally to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. To a much lesser extent, the impairment losses also relate to the write-down of DMR related film assets. As of , following the recording of these write-downs, the Company’s film assets totaled $7.5 million, which principally consists of DMR and documentary content. (2) In the nine months ended September 30, 2020, the Company recorded a $1.2 million (2019 — $ nil (3) In the nine months ended September 30, 2020, the Company recorded charges of $1.1 million in Costs and Expenses Applicable to Technology Rentals principally related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. In the nine months ended September 30, 2019, the Company recorded a charge of $0.1 million in Costs and Expenses Applicable to Technology Rentals and $0.1 million in Revenues -Technology Rentals related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. (4) In the nine months ended September 30, 2020, the Company recorded write-downs of $0.7 million (2019 — $nil) related to excess inventory. |
Significant Non-cash Investing Activities | Nine Months Ended September 30, 2020 2019 Net (decrease) increase in accruals related to: Investment in joint revenue sharing arrangements $ (1,897 ) $ 2,040 Acquisition of other intangible assets 69 6 Purchases of property, plant and equipment 158 (432 ) $ (1,670 ) $ 1,614 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax (Expense) Benefit Included in the Company's Other Comprehensive (Loss) Income | The income tax (expense) benefit included in the Company’s other comprehensive (loss) income are related to the following items: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Unrealized change in cash flow hedging instruments $ (160 ) $ (84 ) $ 235 $ (266 ) Realized change in cash flow hedging instruments upon settlement (29 ) 138 (211 ) 42 Unrecognized actuarial gain on defined benefit plan — — 40 — $ (189 ) $ 54 $ 64 $ (224 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stock Compensation | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Cost and expenses applicable to revenues $ 130 $ 448 $ 530 $ 1,268 Selling, general and administrative expenses 5,151 4,983 15,325 15,371 Research and development 29 96 114 277 $ 5,310 $ 5,527 $ 15,969 $ 16,916 |
Stock-based Compensation by Plan Type | The following table summarizes the Company’s share-based compensation expense by each award type: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Stock Options $ 433 $ 2,145 $ 1,449 $ 6,228 Restricted Share Units 3,430 2,933 10,866 9,175 Performance Stock Units 483 — 1,229 — IMAX China Stock Options 600 86 701 230 IMAX China Long Term Incentive Plan Restricted Share Units 332 363 1,645 1,283 IMAX China Long Term Incentive Plan Performance Stock Units 32 — 79 — $ 5,310 $ 5,527 $ 15,969 $ 16,916 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) and IMAX Amended and Restated Long Term Incentive Plan (as amended, “IMAX LTIP”) for the nine months ended September 30, 2020 and 2019: Number of Shares Weighted Average Exercise Price Per Share 2020 2019 2020 2019 Stock options outstanding, beginning of period 5,732,209 5,465,046 $ 26.82 $ 27.63 Granted — 1,016,882 — 20.66 Exercised — (86,337 ) — 20.15 Forfeited (23,633 ) (329,346 ) 22.35 23.60 Expired (772,665 ) (299,134 ) 27.03 25.82 Cancelled (18,483 ) (26,281 ) 27.97 31.08 Stock options outstanding, end of period 4,917,428 5,740,830 26.80 26.82 Stock options exercisable, end of period 4,315,484 4,511,208 27.32 27.76 |
Restricted Stock Units Activity under the IMAX LTIP | The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the nine months ended September 30, 2020 and 2019: Number of Awards Weighted Average Grant Date Fair Value Per Share 2020 2019 2020 2019 RSUs outstanding, beginning of period 1,065,347 1,033,871 $ 23.17 $ 25.70 Granted 1,050,385 649,389 15.35 22.33 Vested and settled (386,451 ) (367,020 ) 21.59 26.66 Forfeited (54,933 ) (206,593 ) 19.70 23.77 RSUs outstanding, end of period 1,674,348 1,109,647 18.75 23.77 |
Performance Stock Units Activity under the IMAX LTIP | The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the nine months ended September 30: Number of Awards Weighted Average Grant Date Fair Value Per Share 2020 2019 2020 2019 Granted 370,265 — $ 15.66 $ — Forfeited (2,526 ) — 14.84 — PSUs outstanding, end of period 367,739 — 15.67 — |
Basic and Diluted Per-share Computations | The following table reconciles the denominator of the basic and diluted weighted average share computations: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 58,857 61,331 61,176 61,434 Weighted average number of shares repurchased, net of shares issued during the period 2 (27 ) (1,816 ) (97 ) Weighted average number of shares used in computing basic income per share 58,859 61,304 59,360 61,337 Assumed exercise of stock options, RSUs and PSUs, net of shares assumed repurchased, if dilutive — 175 — 172 Weighted average number of shares used in computing diluted income per share 58,859 61,479 59,360 61,509 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue by Segment | The following tables summarize the Company’s revenues by type and reportable segment for the three and nine months ended September 30, 2020: Three Months Ended September 30, 2020 Revenue from Contracts with Customers Revenue from Fixed Consideration Variable Consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 13,515 $ 1,481 $ — $ — $ 14,996 Joint Revenue Sharing Arrangements, fixed fees — — 57 — 57 Other Theater Business 307 — — — 307 Other sales (1) 378 15 — — 393 Sub-total 14,200 1,496 57 — 15,753 Image enhancement and maintenance services IMAX DMR — 6,886 — — 6,886 IMAX Maintenance 5,855 — — — 5,855 Film Post-Production 739 — — — 739 Film Distribution 750 376 — — 1,126 Other — (17 ) — — (17 ) Sub-total 7,344 7,245 — — 14,589 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 4,473 — 4,473 Sub-total — — 4,473 — 4,473 Finance income IMAX Systems — — — 2,441 2,441 Total $ 21,544 $ 8,741 $ 4,530 $ 2,441 $ 37,256 Nine Months Ended September 30, 2020 Revenue from Contracts with Customers Revenue from Fixed consideration Variable consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 17,036 $ 3,143 $ — $ — $ 20,179 Joint Revenue Sharing Arrangements, fixed fees — — 1,196 — 1,196 Other Theater Business 1,261 — — — 1,261 Other sales (1) 1,361 105 — — 1,466 Sub-total 19,658 3,248 1,196 — 24,102 Image enhancement and maintenance services IMAX DMR — 18,061 — — 18,061 IMAX Maintenance 13,225 — — — 13,225 Film Post-Production 3,088 — — — 3,088 Film Distribution 3,000 1,453 — — 4,453 Other — 282 — — 282 Sub-total 19,313 19,796 — — 39,109 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 10,307 — 10,307 Sub-total — — 10,307 — 10,307 Finance income IMAX Systems — — — 7,495 7,495 Total $ 38,971 $ 23,044 $ 11,503 $ 7,495 $ 81,013 (1) Other sales include revenues associated with New Business Initiatives such as IMAX Enhanced. The following tables summarize the Company’s revenues by type and reportable segment for the three and nine months ended September 30, 2019 : Three Months Ended September 30, 2019 Revenue from Contracts with Customers Revenue from Fixed Consideration Variable Consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 15,552 $ 2,580 $ — $ — $ 18,132 Joint Revenue Sharing Arrangements, fixed fees — — 1,438 — 1,438 Other Theater Business 1,560 — — — 1,560 Other sales (1) 575 30 — — 605 Sub-total 17,687 2,610 1,438 — 21,735 Image enhancement and maintenance services IMAX DMR — 26,665 — — 26,665 IMAX Maintenance 13,657 — — — 13,657 Film Post-production 2,185 — — — 2,185 Film Distribution — 1,343 — — 1,343 Other 318 — — 318 Sub-total 15,842 28,326 — — 44,168 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 16,605 — 16,605 Other — — 1,037 — 1,037 Sub-total — — 17,642 — 17,642 Finance income IMAX Systems — — — 2,845 2,845 Total $ 33,529 $ 30,936 $ 19,080 $ 2,845 $ 86,390 Nine Months Ended September 30, 2019 Revenue from Contracts with Customers Revenue from Fixed consideration Variable consideration Lease Arrangements Finance Income Total Technology sales IMAX Systems $ 36,790 $ 5,610 $ — $ — $ 42,400 Joint Revenue Sharing Arrangements, fixed fees — — 6,525 — 6,525 Other Theater Business 5,766 — — — 5,766 Other sales (1) 1,763 175 — — 1,938 Sub-total 44,319 5,785 6,525 — 56,629 Image enhancement and maintenance services IMAX DMR — 93,908 — — 93,908 IMAX Maintenance 39,815 — — — 39,815 Film Post-production 6,458 — — — 6,458 Film Distribution — 3,333 — — 3,333 Other 1,463 — — 1,463 Sub-total 46,273 98,704 — — 144,977 Technology rentals Joint Revenue Sharing Arrangements, contingent rent — — 60,189 — 60,189 Other — 26 1,460 — 1,486 Sub-total — 26 61,649 — 61,675 Finance income IMAX Systems — — — 8,104 8,104 Total $ 90,592 $ 104,515 $ 68,174 $ 8,104 $ 271,385 (1) Other sales include revenues associated with New Business Initiatives, such as IMAX Enhanced. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Breakdown of Revenue and Gross Margin (Margin Loss) by Category | The following table sets forth the breakdown of revenue and gross margin (margin loss) by category for the three months ended September 30, 2020: Revenue Gross Margin (Margin Loss) (3) 2020 2019 2020 2019 IMAX Technology Network IMAX DMR $ 6,886 $ 26,665 $ 3,079 $ 17,866 Joint revenue sharing arrangements, contingent rent 4,473 16,605 (2,491 ) 9,524 11,359 43,270 588 27,390 IMAX Technology Sales and Maintenance IMAX Systems (1) 17,437 20,977 8,671 11,652 Joint revenue sharing arrangements, fixed fees 57 1,438 (117 ) 136 IMAX Maintenance 5,855 13,657 794 6,125 Other Theater Business (2) 307 1,560 31 505 23,656 37,632 9,379 18,418 New Business Initiatives 378 596 372 541 Film Distribution and Post-production Film Distribution (4) 1,126 1,343 (5,597 ) (760 ) Post-production 739 2,185 (464 ) 810 1,865 3,528 (6,061 ) 50 Sub-total 37,258 85,026 4,278 46,399 Other (2 ) 1,364 (449 ) 721 Total $ 37,256 $ 86,390 $ 3,829 $ 47,120 The following table sets forth the breakdown of revenue and gross margin (margin loss) by category for nine months ended September 30, 2020: Revenue Gross Margin (Margin Loss) (3) 2020 2019 2020 2019 IMAX Technology Network IMAX DMR $ 18,061 $ 93,908 $ 7,492 $ 61,602 Joint revenue sharing arrangements, contingent rent 10,307 60,189 (10,610 ) 40,777 28,368 154,097 (3,118 ) 102,379 IMAX Technology Sales and Maintenance IMAX Systems (1) 27,674 50,504 14,497 26,723 Joint revenue sharing arrangements, fixed fees 1,196 6,525 110 1,301 IMAX Maintenance 13,225 39,815 (355 ) 17,046 Other Theater Business (2) 1,261 5,766 77 1,821 43,356 102,610 14,329 46,891 New Business Initiatives 1,488 1,908 1,245 1,441 Film Distribution and Post-production Film Distribution (4) 4,453 3,333 (9,296 ) (1,093 ) Post-production 3,088 6,458 (96 ) 1,576 7,541 9,791 (9,392 ) 483 Sub-total 80,753 268,406 3,064 151,194 Other 260 2,979 (1,837 ) 619 Total $ 81,013 $ 271,385 $ 1,227 $ 151,813 ( 1 ) Includes initial upfront payments and the present value of fixed minimum payments from sales and sales-type lease arrangements of IMAX Theater Systems, and the present value of estimated variable consideration from sales of IMAX Theater Systems. To a lesser extent, also includes finance income associated with these revenue streams. ( 2 ) Principally includes after-market sales of IMAX projection system parts and 3D glasses . ( 3 ) IMAX DMR gross margin includes marketing costs of $0.4 million and $2.8 million for the three and nine months ended September 30, 2020, respectively (2019 — $4.3 million and $17.7 million, respectively). JRSA gross margin includes advertising, marketing and commission expense of $0.7 million and $1.3 million for the three and nine months ended September 30, 2020, respectively (2019 —$0.8 million and $1.1 million, respectively). IMAX Systems gross margin includes marketing and commission costs of $0.6 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, (2019 — $0.6 million and $1.5 million, respectively). Film Distribution segment gross margin includes marketing expense of $0.2 million and $0.4 million for the three and nine months ended September 30, 2020, respectively (2019 — $0.1 million and $0.7 million, respectively). (4) During the three and nine months ended September 30, 2020, Film Distribution segment results were significantly influenced by impairment losses of $ 5.4 million (2019 – $ 0.2 million 0.2 million |
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 remastered films. IMAX DMR revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the theater. Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenue Greater China $ 19,346 $ 26,557 $ 26,008 $ 85,813 Western Europe 5,085 8,433 10,273 28,809 Asia (excluding China) 4,935 13,534 12,663 32,287 United States 4,335 24,316 21,112 84,553 Latin America 1,616 2,912 3,251 7,725 Russia & the CIS 738 2,909 2,962 10,216 Canada 384 1,993 1,327 6,485 Rest of the World 817 5,736 3,417 15,497 Total $ 37,256 $ 86,390 $ 81,013 $ 271,385 |
Employees Pension and Postret_2
Employees Pension and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SERP Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amounts Accrued | As at September 30, 2020 and December 31, 2019, the Company’s projected benefit obligation and unfunded status related to the SERP are as follows: September 30, December 31, 2020 2019 Projected benefit obligation: Obligation, beginning of period $ 18,840 $ 17,977 Prior Service cost — 456 Interest cost 284 564 Actuarial gain — (157 ) Obligation, end of period and unfunded status $ 19,124 $ 18,840 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | |
Fair Value of Financial Instruments | The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities due within one year approximate their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following: As at September 30, 2020 As at December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Level 1 Cash and cash equivalents (1) $ 305,197 $ 305,197 $ 109,484 $ 109,484 Equity securities (3) 14,803 14,803 15,685 15,685 Level 2 Net financed sales receivables (2) $ 109,645 $ 110,443 $ 112,432 $ 111,441 Net investment in sales-type leases (2) 17,095 16,829 15,606 15,309 Convertible loan receivable (2) — — 1,500 1,500 Equity securities (1) 1,000 1,000 1,000 1,000 COLI (4) 3,125 3,125 3,150 3,150 Foreign exchange contracts — (3) 380 380 530 530 Foreign exchange contracts — (3) 102 102 — — Bank indebtedness - under the Working Capital Facility (1) (253 ) (253 ) — — Bank indebtedness - under the Credit Facility (1) (300,000 ) (300,000 ) (20,000 ) (20,000 ) (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. (4) Measured at cash surrender value, which approximates fair value. |
Notional Amount of Derivative | The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Condensed Consolidated Financial Statements: Notional value of foreign exchange contracts: September 30, December 31, 2020 2019 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 36,659 36,052 Derivatives not designated as hedging instruments: Foreign exchange contracts — Forwards 3,579 — $ 40,238 $ 36,052 |
Fair Value of Foreign Exchange Contracts | Fair value of derivatives in foreign exchange contracts: September 30, December 31, Balance Sheet Location 2020 2019 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 465 $ 602 Accrued and other liabilities (85 ) (72 ) Derivatives not designated as hedging instruments: Foreign exchange contracts — Forwards Other assets 107 — Accrued and other liabilities (5 ) — $ 482 $ 530 |
Derivatives in Foreign Currency Hedging Relationships | Derivatives in Foreign Currency Hedging relationships are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Foreign exchange contracts Derivative Gain (Loss) — Forwards Recognized in OCI (Effective Portion) $ 591 $ (527 ) $ (935 ) $ (162 ) Location of Derivative Loss Reclassified from AOCI Three Months Ended September 30, Nine months ended September 30, (Effective Portion) 2020 2019 2020 2019 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ (110 ) $ (322 ) $ (779 ) (983 ) Property, plant and equipment — — — (32 ) Inventory — — $ (26 ) — $ (110 ) $ (322 ) $ (805 ) $ (1,015 ) Three Months Ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Foreign exchange contracts Derivative Gain (Loss) Recognized In — Forwards and Out of OCI $ — $ 2 $ (55 ) $ 2 |
Not Designated as Hedging Instrument [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Derivatives in Foreign Currency Hedging Relationships | Non Designated Derivatives in Foreign Currency relationships are as follows: Three Months Ended September 30, Nine months ended September 30, Location of Derivative Gain 2020 2019 2020 2019 Foreign exchange contracts Selling, general and — Forwards administrative expenses $ 75 $ — $ 102 — $ 75 $ — $ 102 $ — |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Noncontrolling Interest [Member] | |
Non-controlling Interests | |
Summary of Movement of the Non-controlling Interest in Temporary Equity in Company's Subsidiary | The following table summarizes the movement of the non-controlling interest in temporary equity, in the Company’s subsidiary for the nine months ended September 30, 2020: Balance as at December 31, 2019 $ 5,908 Net loss (5,132 ) Balance as at September 30, 2020 $ 776 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Entity | |
Variable Interest Entity [Line Items] | |
Number of variable interest entities | 10 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Number of variable interest entities primary beneficiary | 5 |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Number of variable interest entities not a primary beneficiary | 5 |
Basis of Presentation - VIEs To
Basis of Presentation - VIEs Total Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 1,007,542 | $ 889,069 | |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 532,397 | 245,974 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | 1,571 | 9,677 | |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | [1] | $ 245 | $ 308 |
[1] | Prior year comparative has been reclassified to conform with current period presentation. |
Impact of COVID-19 Pandemic - A
Impact of COVID-19 Pandemic - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)Theater | Dec. 31, 2019USD ($) | |
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Provision for current expected credit losses | $ 3,900 | $ 15,600 | ||
Goodwill | 39,027 | 39,027 | $ 39,027 | |
Deferred tax asset, valuation allowance | 23,900 | 23,900 | $ 200 | |
IMAX Systems Reporting Unit [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Goodwill | 19,000 | 19,000 | ||
Joint Revenue Sharing Arrangements Reporting Unit [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Goodwill | 13,600 | 13,600 | ||
IMAX Maintenance Reporting Unit [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Goodwill | 6,400 | 6,400 | ||
Credit Facility [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Amount drew down in available borrowing capacity | 280,000 | |||
Impact of COVID-19 Pandemic [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Deferred tax asset, valuation allowance | $ 23,700 | 23,700 | ||
Impact of COVID-19 Pandemic [Member] | Credit Facility [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Amount drew down in available borrowing capacity | $ 280,000 | |||
Impact of COVID-19 Pandemic [Member] | Selling, General and Administrative Expenses [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Proceeds from government subsidies | 4,500 | |||
Impact of COVID-19 Pandemic [Member] | Costs and Expenses Applicable to Revenues [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Proceeds from government subsidies | 600 | |||
Impact of COVID-19 Pandemic [Member] | Research and Development [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Proceeds from government subsidies | $ 100 | |||
Impact of COVID-19 Pandemic [Member] | China [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Number of temporarily closed movie theatres | Theater | 70,000 | |||
Impact of COVID-19 Pandemic [Member] | Canada [Member] | Emergency Wage Subsidy Program [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Proceeds from government subsidies | $ 4,500 | |||
Impact of COVID-19 Pandemic [Member] | United States [Member] | CARES Act [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Proceeds from government subsidies | $ 700 | |||
Imax | Impact of COVID-19 Pandemic [Member] | Greater China [Member] | ||||
Impact Of Coronavirus Nineteen Pandemic [Line Items] | ||||
Number of temporarily closed movie theatres | Theater | 700 |
Current Expected Credit Losse_2
Current Expected Credit Losses - Summary of Allowance For Credit Losses Related to Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | $ 12,610 | $ 5,137 |
Current period provision | 1,829 | 9,506 |
Write-offs | (614) | (614) |
Foreign exchange | 308 | 104 |
Ending balance | 14,133 | 14,133 |
Theatre Operators [Member] | ||
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | 6,317 | 3,302 |
Current period provision | 1,623 | 4,718 |
Write-offs | (614) | (614) |
Foreign exchange | 133 | 53 |
Ending balance | 7,459 | 7,459 |
Studios [Member] | ||
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | 5,455 | 893 |
Current period provision | (262) | 4,424 |
Foreign exchange | 184 | 60 |
Ending balance | 5,377 | 5,377 |
Other [Member] | ||
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | 838 | 942 |
Current period provision | 468 | 364 |
Foreign exchange | (9) | (9) |
Ending balance | $ 1,297 | $ 1,297 |
Current Expected Credit Losse_3
Current Expected Credit Losses - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Current Expected Credit Losses [Line Items] | ||||
Provisions for current expected credit losses | $ 1,829,000 | $ 9,506,000 | ||
Finance income related to net investment in leases with billed amounts past due | 0 | $ 0 | 100,000 | $ 100,000 |
Finance income related to financed sale receivables with billed amounts past due | 1,400,000 | $ 1,500,000 | 4,200,000 | $ 5,100,000 |
Theatre And Studio [Member] | ||||
Current Expected Credit Losses [Line Items] | ||||
Provisions for current expected credit losses | 1,800,000 | 9,500,000 | ||
Theatre Operators [Member] | ||||
Current Expected Credit Losses [Line Items] | ||||
Provisions for current expected credit losses | 1,623,000 | 4,718,000 | ||
Provision for current expected credit losses | 1,300,000 | 4,400,000 | ||
Provision for current expected credit losses | $ 790,000 | $ 1,653,000 |
Current Expected Credit Losse_4
Current Expected Credit Losses - Schedule of Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Net investment in leases | ||
Gross minimum payments due under sales-type leases | $ 18,476 | $ 16,766 |
Unearned finance income | (877) | (1,005) |
Present value of minimum payments due under sales-type leases | 17,599 | 15,761 |
Allowance for credit losses | (504) | (155) |
Net investment in leases | 17,095 | 15,606 |
Financed sales receivables | ||
Gross minimum payments due under financed sales | 144,394 | 146,660 |
Unearned finance income | (30,106) | (33,313) |
Present value of minimum payments due under financed sales | 114,288 | 113,347 |
Allowance for credit losses | (4,643) | (915) |
Net financed sales receivables | 109,645 | 112,432 |
Total financing receivables | 126,740 | 128,038 |
Net financed sales receivables due within one year | 34,197 | 27,595 |
Net financed sales receivables due after one year | 75,448 | 84,837 |
Net financed sales receivables | $ 109,645 | $ 112,432 |
Current Expected Credit Losse_5
Current Expected Credit Losses - Schedule of Weighted-average Remaining Lease Term and Weighted-average Interest Rate (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Weighted-average remaining lease term (in years) | ||
Sales-type lease arrangements | 7 years 10 months 24 days | 8 years 1 month 6 days |
Weighted-average interest rate | ||
Sales-type lease arrangements | 5.38% | 6.68% |
Financed sales receivables | 9.04% | 9.00% |
Current Expected Credit Losse_6
Current Expected Credit Losses - Schedule of Net Investment In Leases by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Current fiscal year | $ 1,861 | $ 7,874 |
Net investment leases, By Origination Year, Before latest fiscal year | 8,106 | 3,045 |
Net investment leases, By Origination Year, Two years before latest fiscal year | 3,087 | 989 |
Net investment leases, By Origination Year, Three years before latest fiscal year | 958 | |
Net investment leases, By Origination Year, Prior | 3,587 | 3,853 |
Net Investment in Lease, Total | 17,599 | 15,761 |
In Good Standing [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Current fiscal year | 1,861 | 7,874 |
Net investment leases, By Origination Year, Before latest fiscal year | 3,045 | |
Net investment leases, By Origination Year, Two years before latest fiscal year | 989 | |
Net investment leases, By Origination Year, Three years before latest fiscal year | 958 | |
Net investment leases, By Origination Year, Prior | 2,141 | 3,186 |
Net Investment in Lease, Total | 4,960 | 15,094 |
Credit Watch [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Before latest fiscal year | 8,106 | |
Net investment leases, By Origination Year, Two years before latest fiscal year | 3,087 | |
Net investment leases, By Origination Year, Prior | 707 | 667 |
Net Investment in Lease, Total | 11,900 | $ 667 |
Pre-Approved Transactions [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Prior | 9 | |
Net Investment in Lease, Total | 9 | |
Transactions Suspended [Member] | ||
Net Investment In Lease Credit Quality Indicator [Line Items] | ||
Net investment leases, By Origination Year, Prior | 730 | |
Net Investment in Lease, Total | $ 730 |
Current Expected Credit Losse_7
Current Expected Credit Losses - Schedule of Financed Sale Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Current fiscal year | $ 3,710 | $ 11,981 |
Financed sales receivables, By Origination Year, Before lastest fiscal year | 11,751 | 14,414 |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 14,716 | 17,443 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 16,770 | 17,355 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 17,768 | |
Financed sales receivables, By Origination Year, Prior | 49,573 | 52,154 |
Financed sales receivables, Total | 131,887 | 129,108 |
Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 114,288 | 113,347 |
In Good Standing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Current fiscal year | 3,009 | 11,981 |
Financed sales receivables, By Origination Year, Before lastest fiscal year | 3,509 | 14,414 |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 1,171 | 16,556 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 262 | 15,208 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 1,876 | |
Financed sales receivables, By Origination Year, Prior | 6,397 | 44,291 |
In Good Standing [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 16,224 | 102,450 |
Credit Watch [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Current fiscal year | 701 | |
Financed sales receivables, By Origination Year, Before lastest fiscal year | 8,242 | |
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 13,545 | 637 |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 15,584 | 1,687 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 14,388 | |
Financed sales receivables, By Origination Year, Prior | 41,424 | 6,955 |
Credit Watch [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 93,884 | 9,279 |
Pre-Approved Transactions [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Two year before latest fiscal year | 250 | |
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 295 | |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 599 | |
Financed sales receivables, By Origination Year, Prior | 668 | 285 |
Pre-Approved Transactions [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | 1,267 | 830 |
Transactions Suspended [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, By Origination Year, Three year before latest fiscal year | 924 | 165 |
Financed sales receivables, By Origination Year, Four year before latest fiscal year | 905 | |
Financed sales receivables, By Origination Year, Prior | 1,084 | 623 |
Transactions Suspended [Member] | Financing Receivable [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financed sales receivables, Total | $ 2,913 | $ 788 |
Current Expected Credit Losse_8
Current Expected Credit Losses - Schedule of Aging Analysis for Net Investment in Leases and Financed Sale Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | $ 18,703 | $ 10,245 | ||||
Unbilled | 113,184 | 118,863 | ||||
Financed sales receivables, Total | 131,887 | 129,108 | ||||
Allowance for Credit Losses | (5,147) | (1,070) | ||||
Total financing receivables | 126,740 | 128,038 | ||||
Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 1,346 | 349 | ||||
Unbilled | 16,253 | 15,412 | ||||
Financed sales receivables, Total | 17,599 | 15,761 | ||||
Allowance for Credit Losses | (504) | $ (459) | (155) | $ (155) | $ (155) | $ (155) |
Total financing receivables | 17,095 | 15,606 | ||||
Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 17,357 | 9,896 | ||||
Unbilled | 96,931 | 103,451 | ||||
Financed sales receivables, Total | 114,288 | 113,347 | ||||
Allowance for Credit Losses | (4,643) | $ (3,709) | (915) | $ (915) | $ (839) | $ (839) |
Total financing receivables | 109,645 | 112,432 | ||||
Accrued and Current [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 1,818 | 1,708 | ||||
Accrued and Current [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 132 | 30 | ||||
Accrued and Current [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 1,686 | 1,678 | ||||
30 to 89 Days Past Due [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 2,520 | 2,840 | ||||
30 to 89 Days Past Due [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 161 | 68 | ||||
30 to 89 Days Past Due [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 2,359 | 2,772 | ||||
Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 14,365 | 5,697 | ||||
Equal To Greater Than 90 Days Past Due [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | 1,053 | 251 | ||||
Equal To Greater Than 90 Days Past Due [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Current And Past Due [Line Items] | ||||||
Billed | $ 13,312 | $ 5,446 |
Current Expected Credit Losse_9
Current Expected Credit Losses - Schedule of Net Investment in Leases and Financed Sale Receivables with Billed Amounts Past Due Continues to Accrue Finance Income (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | $ 18,703 | $ 10,245 | ||||
Unbilled | 113,184 | 118,863 | ||||
Allowance for Credit Losses | (5,147) | (1,070) | ||||
Total financing receivables | 126,740 | 128,038 | ||||
Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,346 | 349 | ||||
Unbilled | 16,253 | 15,412 | ||||
Allowance for Credit Losses | (504) | $ (459) | (155) | $ (155) | $ (155) | $ (155) |
Total financing receivables | 17,095 | 15,606 | ||||
Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 17,357 | 9,896 | ||||
Unbilled | 96,931 | 103,451 | ||||
Allowance for Credit Losses | (4,643) | $ (3,709) | (915) | $ (915) | $ (839) | $ (839) |
Total financing receivables | 109,645 | 112,432 | ||||
Accrued and Current [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,818 | 1,708 | ||||
Accrued and Current [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 132 | 30 | ||||
Accrued and Current [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,686 | 1,678 | ||||
30 to 89 Days Past Due [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 2,520 | 2,840 | ||||
30 to 89 Days Past Due [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 161 | 68 | ||||
30 to 89 Days Past Due [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 2,359 | 2,772 | ||||
Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 14,365 | 5,697 | ||||
Equal To Greater Than 90 Days Past Due [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,053 | 251 | ||||
Equal To Greater Than 90 Days Past Due [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 13,312 | 5,446 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 17,294 | 8,238 | ||||
Unbilled | 82,144 | 29,751 | ||||
Allowance for Credit Losses | (2,501) | |||||
Total financing receivables | 96,937 | 37,989 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,011 | 279 | ||||
Unbilled | 12,181 | 578 | ||||
Allowance for Credit Losses | (290) | |||||
Total financing receivables | 12,902 | 857 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 16,283 | 7,959 | ||||
Unbilled | 69,963 | 29,173 | ||||
Allowance for Credit Losses | (2,211) | |||||
Total financing receivables | 84,035 | 37,132 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Accrued and Current [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,507 | 1,155 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Accrued and Current [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 123 | 9 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Accrued and Current [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,384 | 1,146 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 2,050 | 1,309 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | 30 to 89 Days Past Due [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 142 | 19 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | 30 to 89 Days Past Due [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 1,908 | 1,290 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 13,737 | 5,774 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Equal To Greater Than 90 Days Past Due [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | 746 | 251 | ||||
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] | Equal To Greater Than 90 Days Past Due [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Billed | $ 12,991 | $ 5,523 |
Current Expected Credit Loss_10
Current Expected Credit Losses - Schedule of Net Investment in Leases and Financed Sale Receivables on Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Recorded Receivable | $ 3,643 | $ 788 |
Allowance for Credit Losses | (1,205) | (732) |
Net | 2,438 | 56 |
Net Investment in Leases [Member] | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Recorded Receivable | 730 | |
Allowance for Credit Losses | (18) | |
Net | 712 | |
Net Financed Sales Receivables [Member] | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Recorded Receivable | 2,913 | 788 |
Allowance for Credit Losses | (1,187) | (732) |
Net | $ 1,726 | $ 56 |
Current Expected Credit Loss_11
Current Expected Credit Losses - Summary of Allowance for Credit Losses Related to Net Investment in Leases and Financed Sale Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | $ 1,070 | |||
Ending balance | $ 5,147 | 5,147 | ||
Net Investment in Leases [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 459 | $ 155 | 155 | $ 155 |
Current period provision | 105 | 409 | ||
Write-offs | (69) | (69) | ||
Foreign exchange | 9 | 9 | ||
Ending balance | 504 | 155 | 504 | 155 |
Net Financed Sales Receivables [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Beginning balance | 3,709 | 839 | 915 | 839 |
Current period provision | 1,201 | 76 | 4,014 | 76 |
Write-offs | (330) | (330) | ||
Foreign exchange | 63 | 44 | ||
Ending balance | $ 4,643 | $ 915 | $ 4,643 | $ 915 |
Current Expected Credit Loss_12
Current Expected Credit Losses - Summary of Allowance For Credit Losses Related to Variable Consideration Receivables (Details) - Theatre Operators [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Accounts Receivable Allowance For Credit Loss [Line Items] | ||
Beginning balance | $ 863 | |
Current period provision | 790 | $ 1,653 |
Foreign Exchange | 6 | 6 |
Ending balance | $ 1,659 | $ 1,659 |
Lease Arrangements - Additional
Lease Arrangements - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Lease | |
Leases [Line Items] | |
Lessee, operating lease description | The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. |
Lessee, operating lease, existence of option to extend term | true |
Lessee, operating lease, existence of option to extend description | The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs and its level of investment in leasehold improvements, among other factors. |
Lessee, operating lease, assumptions for discount rate | The incremental borrowing rate used in the calculation of the Company’s lease liability is based on the location of each leased property. |
Leases include options to purchase leased property | 0 |
Lessee, operating lease, existence of residual value | false |
Lessee, operating lease, sublease options | The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. |
Lessor, sales-type lease description | The Company provides IMAX Theater Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX Theater System, the Company earns fixed upfront and ongoing consideration. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. |
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 |
Minimum [Member] | |
Leases [Line Items] | |
Lessee, operating lease, renewal term | 1 year |
Sales-type lease, lease term | 10 years |
Non-cancellable term of joint revenue sharing arrangements | 10 years |
Maximum [Member] | |
Leases [Line Items] | |
Lessee, operating lease, renewal term | 5 years |
Sales-type lease, lease term | 20 years |
Non-cancellable term of joint revenue sharing arrangements | or longer |
Lease Arrangements - Components
Lease Arrangements - Components of Lease Expense (Details) - Selling, General and Administrative Expenses [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Leases [Line Items] | |||||
Operating lease cost | [1] | $ 133 | $ 102 | $ 392 | $ 565 |
Amortization of lease assets | 706 | 667 | 2,155 | 1,863 | |
Interest on lease liabilities | 258 | 265 | 765 | 807 | |
Total lease cost | $ 1,097 | $ 1,034 | $ 3,312 | $ 3,235 | |
[1] | Includes short-term leases and variable lease costs, which are not significant for the three and nine months ended September 30, 2020 and 2019. |
Lease Arrangements - Supplement
Lease Arrangements - Supplemental Cash and Non-Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 2,721 | $ 2,732 |
Right-of-use assets obtained in exchange for lease obligations | $ 297 | $ 17,879 |
Lease Arrangements - Lessee Ope
Lease Arrangements - Lessee Operating Lease Balance Sheet Amounts and Lines (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Line Items] | ||
Operating Leases | $ 17,156 | |
Property, plant and equipment [Member] | ||
Leases [Line Items] | ||
Right-of-Use Assets | 14,480 | $ 16,262 |
Accrued and other liabilities [Member] | ||
Leases [Line Items] | ||
Operating Leases | $ 17,156 | $ 18,677 |
Lease Arrangements - Lessee O_2
Lease Arrangements - Lessee Operating Leases Weighted Average Remaining Lease Term and Weighted Average Interest Rate (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Lease Cost [Abstract] | ||
Weighted-average remaining lease term (years) | 7 years 8 months 12 days | 8 years 1 month 6 days |
Weighted-average discount rate | 5.90% | 5.90% |
Lease Arrangements - Lessee O_3
Lease Arrangements - Lessee Operating Lease, Maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 (three months remaining) | $ 865 |
2021 | 3,372 |
2022 | 2,847 |
2023 | 2,260 |
2024 | 2,212 |
Thereafter | 10,137 |
Total lease payments | 21,693 |
Less: interest expense | (4,537) |
Present value of operating lease liabilities | $ 17,156 |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Raw materials | $ 34,181 | $ 26,538 |
Work-in-process | 4,044 | 4,608 |
Finished goods | 14,796 | 11,843 |
Total | $ 53,021 | $ 42,989 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | [1] | Dec. 31, 2019 | ||
Inventories (Textuals) [Abstract] | |||||||
Inventories increased | $ 10,000,000 | ||||||
Finished goods inventory with title passed to customer | $ 4,800,000 | 4,800,000 | $ 700,000 | ||||
Write-downs for excess and obsolete inventory | $ 600,000 | $ 0 | $ 729,000 | [1] | $ 0 | ||
[1] | In the nine months ended September 30, 2020, the Company recorded write-downs of $0.7 million (2019 — $nil) related to excess inventory |
Credit Facility and Other Fin_3
Credit Facility and Other Financing Arrangements - Bank Indebtedness (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Credit Facility | $ 300,000 | $ 20,000 |
Working Capital Facility | 253 | |
Unamortized debt issuance costs | (2,268) | (1,771) |
Total bank indebtedness | $ 297,985 | $ 18,229 |
Credit Facility and Other Fin_4
Credit Facility and Other Financing Arrangements - Additional Information (Details) | Jun. 10, 2020 | Sep. 30, 2020USD ($) | Sep. 30, 2019 | Sep. 30, 2020USD ($) | Sep. 30, 2019 | Sep. 30, 2020CNY (¥) | Jul. 24, 2020USD ($) | Jul. 24, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Oct. 28, 2019USD ($) |
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Current borrowing capacity | $ 300,000,000 | $ 300,000,000 | |||||||||
Credit Facility Description | The Company has a credit agreement, the Fifth Amended and Restated Credit Agreement, with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto (the “Credit Agreement”). The Company’s obligations under the Credit Agreement are guaranteed by certain of its subsidiaries (the “Guarantors”) and are secured by first-priority security interests in substantially all the assets of the Company and the Guarantors. The facility provided by the Credit Agreement (the “Credit Facility”) matures on June 28, 2023. The Credit Agreement has a revolving borrowing capacity of $300.0 million, and contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, subject to certain conditions, depending on the mix of revolving and term loans comprising the incremental facility. In the first quarter of 2020, in response to uncertainties associated with the outbreak of the COVID-19 global pandemic and its impact on the Company’s business, the Company drew down the $280.0 million in available borrowing capacity under the Credit Facility, resulting in total outstanding borrowings of $300.0 million. | ||||||||||
Credit Facility Maturity Date | Jun. 28, 2023 | ||||||||||
Line of credit facility covenant terms | The Credit Agreement contains a covenant that requires the Company to maintain a Senior Secured Net Leverage Ratio (as defined in the Credit Agreement), as at the last day of any Fiscal Quarter (as defined in the Credit Agreement) of no greater than 3.25:1.00. | ||||||||||
Effective interest rate | 2.70% | 3.34% | 2.24% | 3.50% | |||||||
Amounts Drawn | $ 253,000 | $ 253,000 | |||||||||
Working Capital Facility [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Current borrowing capacity | $ 30,000,000 | ¥ 200,000,000 | |||||||||
Credit Facility Description | On July 24, 2020, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, renewed its unsecured revolving facility for up to 200.0 million Renminbi (approximately $30.0 million) to fund ongoing working capital requirements (the “Working Capital Facility”). | ||||||||||
Effective interest rate | 4.35% | 4.35% | |||||||||
Amounts Drawn | $ 300,000 | $ 300,000 | ¥ 1,700,000 | $ 0 | |||||||
Remaining borrowing capacity | 29,700,000 | 29,700,000 | ¥ 198,300,000 | 29,700,000 | ¥ 198,300,000 | ||||||
Credit Facility [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Amount drew down in available borrowing capacity | $ 280,000,000 | ||||||||||
Line of credit facility covenant terms | On June 10, 2020, the Company entered into the First Amendment to the Credit Agreement (the “Amendment”), which, among other things, (i) suspends the Senior Secured Net Leverage Ratio covenant through the first quarter of 2021, (ii) re-establishes the Senior Secured Net Leverage Ratio covenant thereafter, provided that for subsequent quarters that such covenant is tested, as applicable, the Company will be permitted to use its quarterly EBITDA (as defined in the Credit Agreement) from the third and fourth quarters of 2019 in lieu of the EBITDA for the corresponding quarters of 2020, (iii) adds a $75.0 million minimum liquidity covenant measured at the end of each calendar month and (iv) restricts the Company’s ability to make certain restricted payments, dispositions and investments, create or assume liens and incur debt that would otherwise have been permitted by the Credit Agreement. The modifications to the negative covenants, the minimum liquidity covenant and modifications to certain other provisions in the Credit Agreement pursuant to the Amendment were effective from the date of the Amendment until the earlier of the delivery of the compliance certificate for the fourth quarter of 2021 and the date on which the Company, in its sole discretion, elects to calculate its compliance with the Senior Secured Net Leverage Ratio by using either its actual EBITDA or annualized EBITDA (the “Designated Period”). | ||||||||||
Compliance with covenants | The Company was in compliance with all of its requirements under the Credit Agreement, as amended, as at September 30, 2020, and based on current projections expects to be in compliance through the next twelve months. | ||||||||||
Liquidity covenant minimum | $ 75,000,000 | ||||||||||
Interest rate description | Borrowings under the Credit Facility 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); provided, however, that from the effective date of the Amendment until the Company delivers a compliance certificate under the Credit Facility following the end of the Designated Period, the applicable margin for LIBOR borrowings will be 2.50% per annum and the applicable margin for U.S. base rate borrowings will be 1.75% per annum. The effective interest rate for the three and nine months ended September 30, 2020 was 2.70% and 2.24%, respectively (2019 — 3.34% and 3.50%, respectively). | ||||||||||
Standby fees percentage | 0.50% | ||||||||||
Fees incurred with amendment | $ 1,100,000 | ||||||||||
Letters of credit or advance payment guarantees | 0 | 0 | 0 | ||||||||
Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Interest rate margin percentage | 2.50% | ||||||||||
Credit Facility [Member] | Base Rate [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Interest rate margin percentage | 1.75% | ||||||||||
Wells Fargo Foreign Exchange Facility [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Settlement gain (loss) on its foreign currency forward contracts | 500,000 | 500,000 | 500,000 | ||||||||
Notional Amount of arrangements entered into | 40,200,000 | 40,200,000 | 36,100,000 | ||||||||
NBC Facility [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Current borrowing capacity | $ 5,000,000 | ||||||||||
Remaining borrowing capacity | 0 | 0 | $ 0 | ||||||||
Minimum [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Borrowing capacity under uncommitted accordion feature | $ 440,000,000 | $ 440,000,000 | |||||||||
Minimum [Member] | Credit Facility [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Standby fees percentage | 0.25% | ||||||||||
Minimum [Member] | Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Interest rate margin percentage | 1.00% | ||||||||||
Minimum [Member] | Credit Facility [Member] | Base Rate [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Interest rate margin percentage | 0.25% | ||||||||||
Maximum [Member] | Credit Facility [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Debt instrument net leverage ratio | 3.25 | ||||||||||
Standby fees percentage | 0.38% | ||||||||||
Maximum [Member] | Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Interest rate margin percentage | 1.75% | ||||||||||
Maximum [Member] | Credit Facility [Member] | Base Rate [Member] | |||||||||||
Credit Facility and Other Financing Arrangements (Textual) [Abstract] | |||||||||||
Interest rate margin percentage | 1.00% |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees - Additional Information (Details) - USD ($) | 9 Months Ended | 25 Months Ended | 51 Months Ended | 95 Months Ended | |
Sep. 30, 2020 | Dec. 14, 2015 | Mar. 27, 2008 | Dec. 02, 2011 | Dec. 31, 2019 | |
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 | ||||
Product Warranty Accrual | $ 200,000 | ||||
Indemnification of its directors/officers | $ 0 | $ 0 | |||
Other Indemnification | 0 | ||||
Minimum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Counterclaim sought | $ 24,000,000 | ||||
Maximum [Member] | |||||
Loss Contingencies [Line Items] | |||||
Product Warranty Accrual | $ 100,000 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Operations Supplemental Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($)TheaterexhibitorFilm | Sep. 30, 2019USD ($)Film | Sep. 30, 2020USD ($)TheaterexhibitorFilm | Sep. 30, 2019USD ($)Film | Dec. 31, 2019USD ($) | ||
Selling Expenses | ||||||
Direct advertising and marketing costs included in costs and expenses applicable to revenues-technology rentals | $ 400 | $ 500 | $ 800 | $ 1,400 | ||
Film exploitation costs, including advertising and marketing expense included in costs and expenses applicable to revenues-image enhancement and maintenance services | 500 | 4,300 | 3,100 | 18,400 | ||
Foreign Exchange | ||||||
Foreign exchange translation gain (loss) | $ 200 | $ (700) | $ (800) | $ (1,100) | ||
Collaborative Arrangements | ||||||
Total number of exhibitors under traditional and hybrid joint revenue sharing agreements | exhibitor | 41 | 41 | ||||
Total number of theater systems under traditional and hybrid joint revenue sharing agreements | Theater | 1,233 | 1,233 | ||||
Total number of operating theaters under traditional and hybrid joint revenue sharing agreement | Theater | 881 | 881 | ||||
Average percentage of the box-office receipts earned in exchange of converting commercial films | 12.50% | 12.50% | ||||
IMAX DMR films exhibited in the period | Film | 6 | 26 | 20 | 59 | ||
Amounts attributable to transactions arising between the company and its customers under IMAX DMR arrangements | $ 6,900 | $ 26,700 | $ 18,100 | $ 93,900 | ||
Number of co-produced film arrangement | Film | 2 | 2 | ||||
Number of other co-produced film arrangements | Film | 3 | 3 | ||||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 1,007,542 | $ 1,007,542 | $ 889,069 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 532,397 | 532,397 | 245,974 | |||
Amounts attributable to transactions between the company and other parties involved in the production of films included in cost and expenses applicable to revenues-image enhancement and maintenance services | 500 | 100 | 1,900 | 300 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Collaborative Arrangements | ||||||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | 1,571 | 1,571 | 9,677 | |||
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | [1] | 245 | 245 | $ 308 | ||
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 traditional and hybrid joint revenue sharing arrangements | 4,500 | 17,900 | $ 11,500 | 66,100 | ||
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 | |||||
Technology Sales [Member] | ||||||
Selling Expenses | ||||||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-technology sales | 600 | 600 | $ 1,000 | 1,500 | ||
Technology Rentals [Member] | ||||||
Selling Expenses | ||||||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-technology sales | $ 300 | $ 300 | $ 500 | $ 300 | ||
[1] | Prior year comparative has been reclassified to conform with current period presentation. |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Operating Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Decrease (increase) in: | ||
Financing receivables | $ (3,212) | $ 6,184 |
Prepaid expenses | (1,332) | (1,163) |
Variable consideration receivable | (1,007) | (1,096) |
Other assets | (3,712) | (4,298) |
Increase (decrease) in: | ||
Accounts payable | (8,320) | (8,001) |
Accrued and other liabilities | (6,526) | (9,504) |
Changes in other operating assets and liabilities | $ (24,109) | $ (17,878) |
Condensed Consolidated State_10
Condensed Consolidated Statements of Cash Flows Supplemental Information - Summary of Depreciation and Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Summary of Depreciation and amortization | ||
Film assets | $ 6,159 | $ 13,015 |
Property, plant and equipment: | ||
Joint revenue sharing arrangements | 19,247 | 17,179 |
Other property, plant and equipment | 8,478 | 9,100 |
Other intangible assets | 4,882 | 4,568 |
Other assets | 1,933 | 1,262 |
Deferred financing costs | 595 | 376 |
Depreciation and amortization | $ 41,294 | $ 45,500 |
Condensed Consolidated State_11
Condensed Consolidated Statements of Cash Flows Supplemental Information - Write-downs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Write-downs | |||||||
Film assets | [1] | $ 10,211,000 | $ 179,000 | ||||
Other assets | [2] | 1,151,000 | 0 | ||||
Property, plant and equipment | |||||||
Joint revenue sharing arrangements | [3] | 1,050,000 | 748,000 | ||||
Other property, plant and equipment | 66,000 | 78,000 | |||||
Inventories | $ 600,000 | $ 0 | 729,000 | [4] | 0 | [4] | |
Other intangible assets | 132,000 | 22,000 | |||||
Write-downs | $ 13,339,000 | $ 1,027,000 | |||||
[1] | In the nine months ended September 30, 2020, the Company recorded impairment losses of $10.2 million (2019 — $0.2 million) principally to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. To a much lesser extent, the impairment losses also relate to the write-down of DMR related film assets. As of , following the recording of these write-downs, the Company’s film assets totaled $7.5 million, which principally consists of DMR and documentary content. | ||||||
[2] | In the nine months ended September 30, 2020, the Company recorded a $1.2 million (2019 — $ nil | ||||||
[3] | In the nine months ended September 30, 2020, the Company recorded charges of $1.1 million in Costs and Expenses Applicable to Technology Rentals principally related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. In the nine months ended September 30, 2019, the Company recorded a charge of $0.1 million in Costs and Expenses Applicable to Technology Rentals and $0.1 million in Revenues -Technology Rentals related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. | ||||||
[4] | In the nine months ended September 30, 2020, the Company recorded write-downs of $0.7 million (2019 — $nil) related to excess inventory |
Condensed Consolidated State_12
Condensed Consolidated Statements of Cash Flows Supplemental Information - Write-downs (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Supplemental Cash Flow Elements [Abstract] | ||||||
Film assets write downs on impairment loss | $ 10,200,000 | $ 200,000 | ||||
Film assets | $ 7,500,000 | 7,500,000 | ||||
Film assets additional write downs | 0 | |||||
Other assets write down on impairment | 1,200,000 | |||||
Write-down of content-related assets | 1,000,000 | |||||
Theater system components written off in Costs and expenses | 1,100,000 | 100,000 | ||||
Theater system components written off in revenues | 100,000 | |||||
Write-downs for excess and obsolete inventory | $ 600,000 | $ 0 | $ 729,000 | [1] | $ 0 | [1] |
[1] | In the nine months ended September 30, 2020, the Company recorded write-downs of $0.7 million (2019 — $nil) related to excess inventory |
Condensed Consolidated State_13
Condensed Consolidated Statements of Cash Flows Supplemental Information - Significant Non-cash Investing Activities - (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net (decrease) increase in accruals related to: | ||
Investment in joint revenue sharing arrangements | $ (1,897) | $ 2,040 |
Acquisition of other intangible assets | 69 | 6 |
Purchases of property, plant and equipment | 158 | (432) |
Net accruals | $ (1,670) | $ 1,614 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||||||
Income tax expense (benefit) | $ 19,349 | $ 3,030 | $ 24,606 | $ 11,986 | |||
Deferred tax asset, valuation allowance | $ 23,900 | $ 23,900 | $ 200 | ||||
Effective income tax rate | (69.60%) | (22.10%) | |||||
Canadian statutory tax rate | 26.20% | 26.20% | |||||
Deferred income tax asset after valuation allowance | $ 17,700 | $ 17,700 | 23,900 | ||||
Deferred income tax liabilities | 18,700 | $ 18,700 | 18,700 | $ 19,700 | |||
Cash held outside of Canada | 76,400 | 76,400 | 90,100 | ||||
Reduction in foreign withholding taxes | $ 1,000 | ||||||
Republic of China [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Cash held/undistributed earnings intended to be permanently reinvested | 62,600 | 62,600 | $ 67,600 | ||||
Impact of COVID-19 Pandemic [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Deferred tax asset, valuation allowance | $ 23,700 | $ 23,700 |
Income Taxes - Income Tax (Expe
Income Taxes - Income Tax (Expense) Benefit Included in the Company's Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Unrealized change in cash flow hedging instruments | $ (160) | $ (84) | $ 235 | $ (266) |
Realized change in cash flow hedging instruments upon settlement | (29) | 138 | (211) | 42 |
Unrecognized actuarial gain on defined benefit plan | 40 | |||
Income tax effect on other comprehensive (loss) income | $ (189) | $ 54 | $ 64 | $ (224) |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019$ / shares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019$ / shares | Dec. 31, 2019USD ($)shares | Jun. 30, 2020USD ($) | Jun. 11, 2020shares | Jun. 06, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation costs recorded for the period | $ 5,300,000 | $ 5,500,000 | $ 16,000,000 | $ 16,900,000 | |||||||
Stock-based compensation expense | 5,310,000 | $ 5,527,000 | $ 15,969,000 | $ 16,916,000 | |||||||
Common shares purchased in open market by trustee in connection with RSUs | shares | 45,000 | 200,000 | 445,000 | ||||||||
Weighted average price of common shares purchased in open market by trustee in connection with RSUs | $ / shares | $ 21.52 | $ 15.43 | $ 22.83 | ||||||||
Number of treasury shares held in trust for future settlement of share based awards | shares | 17,578 | 187,020 | |||||||||
Value of treasury shares held in trust for future settlement of RSUs and stock options | $ 271,000 | $ 271,000 | $ 271,000 | $ 4,038,000 | |||||||
Antidilutive shares issuable upon exercise of stock options, restricted share units and performance stock units | shares | 6,959,515 | 5,289,172 | 6,959,515 | 5,902,208 | |||||||
IMAX China | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Details of the share repurchase program | 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 as at June 6, 2019 (35,605,560 shares). The share repurchase program expired on the date of the 2020 Annual General Meeting of IMAX China on June 11, 2020. During the 2020 Annual General Meeting, shareholders approved the repurchase of shares of IMAX China not to exceed 10% of the total number of issued shares as of June 11, 2020 (34,848,398 shares). This program will be valid until the 2021 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. 11, 2020 | ||||||||||
Repurchase of common shares | shares | 1,025,800 | 906,400 | 8,051,500 | ||||||||
Stock Acquired, Average Cost per Share | (per share) | $ 2.29 | $ 17.90 | $ 1.69 | $ 13.13 | $ 2.38 | $ 18.63 | |||||
Stock Repurchase Program, maximum percentage of shares to be repurchased | 10.00% | 10.00% | |||||||||
Stock Repurchase Program, Authorized number of shares | shares | 34,848,398 | 35,605,560 | |||||||||
Stock repurchase program expiration year | 2021 | ||||||||||
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 new $200.0 million common stock share repurchase program which would have expired on June 30, 2020. In June 2020, the Board of Directors approved a 12-month extension of this program which will now expire on June 30, 2021. 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 | ||||||||||
Stock Repurchase Program Expiration Date | Jun. 30, 2021 | ||||||||||
Repurchase of common shares | shares | 0 | 46,615 | 2,484,123 | 134,384 | |||||||
Stock Acquired, Average Cost per Share | $ / shares | $ 20.35 | $ 14.72 | $ 19.76 | ||||||||
Restricted Share Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 3,430,000 | $ 2,933,000 | $ 10,866,000 | $ 9,175,000 | |||||||
Antidilutive shares issuable upon exercise of stock options, restricted share units and performance stock units | shares | 6,959,515 | 5,289,172 | 6,959,515 | 5,902,208 | |||||||
Restricted Share Units [Member] | Certain Advisor [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 100,000 | ||||||||||
Restricted Share Units [Member] | Minimum [Member] | Certain Advisor [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 100,000 | $ 100,000 | |||||||||
IMAX China Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 600,000 | 86,000 | 701,000 | 230,000 | |||||||
Vested stock options contractual life | 2 years | ||||||||||
Employee Stock Option [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 433,000 | $ 2,145,000 | $ 1,449,000 | $ 6,228,000 | |||||||
Antidilutive shares issuable upon exercise of stock options, restricted share units and performance stock units | shares | 6,959,515 | 5,289,172 | 6,959,515 | 5,902,208 | |||||||
Performance Stock Units [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 483,000 | $ 1,229,000 | |||||||||
Antidilutive shares issuable upon exercise of stock options, restricted share units and performance stock units | shares | 6,959,515 | 5,289,172 | 6,959,515 | 5,902,208 |
Capital Stock - Stock Compensat
Capital Stock - Stock Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 5,310 | $ 5,527 | $ 15,969 | $ 16,916 |
Cost and Expenses Applicable to Revenues [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 130 | 448 | 530 | 1,268 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 5,151 | 4,983 | 15,325 | 15,371 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 29 | $ 96 | $ 114 | $ 277 |
Capital Stock - Stock-based Com
Capital Stock - Stock-based Compensation by Plan Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | $ 5,310 | $ 5,527 | $ 15,969 | $ 16,916 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | 433 | 2,145 | 1,449 | 6,228 |
Restricted Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | 3,430 | 2,933 | 10,866 | 9,175 |
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | 483 | 1,229 | ||
IMAX China Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | 600 | 86 | 701 | 230 |
IMAX China Long Term Incentive Plan Restricted Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | 332 | $ 363 | 1,645 | $ 1,283 |
IMAX China Long Term Incentive Plan Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense by plan type | $ 32 | $ 79 |
Capital Stock - Schedule of Sha
Capital Stock - Schedule of Share-based Compensation, Stock Options, Activity (Details) - Employee Stock Option [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding, beginning of period | 5,732,209 | 5,465,046 |
Granted | 1,016,882 | |
Exercised | (86,337) | |
Forfeited | (23,633) | (329,346) |
Expired | (772,665) | (299,134) |
Cancelled | (18,483) | (26,281) |
Stock options outstanding, end of period | 4,917,428 | 5,740,830 |
Stock options exercisable, end of period | 4,315,484 | 4,511,208 |
Stock options outstanding, weighted average exercise price per share | $ 26.82 | $ 27.63 |
Granted, weighted average exercise price per share | 20.66 | |
Exercised, weighted average exercise price per share | 20.15 | |
Forfeited, weighted average exercise price per share | 22.35 | 23.60 |
Expired, weighted average exercise price per share | 27.03 | 25.82 |
Cancelled, weighted average exercise price per share | 27.97 | 31.08 |
Stock options outstanding, weighted average exercise price per share | 26.80 | 26.82 |
Stock options exercisable, weighted average exercise price per share, end of period | $ 27.32 | $ 27.76 |
Capital Stock - Restricted Stoc
Capital Stock - Restricted Stock Units Activity under the IMAX LTIP (Details) - Restricted Share Units [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSUs outstanding, beginning of period | 1,065,347 | 1,033,871 |
Granted | 1,050,385 | 649,389 |
Vested and settled | (386,451) | (367,020) |
Forfeited | (54,933) | (206,593) |
RSUs outstanding, end of period | 1,674,348 | 1,109,647 |
RSUs outstanding, weighted average grant date fair value per share, beginning of period | $ 23.17 | $ 25.70 |
Granted, weighted average grant date fair value per share | 15.35 | 22.33 |
Vested and settled, weighted average grant date fair value per share | 21.59 | 26.66 |
Forfeited, weighted average grant date fair value per share | 19.70 | 23.77 |
RSUs outstanding, weighted average grant date fair value per share, end of period | $ 18.75 | $ 23.77 |
Capital Stock - Performance Sto
Capital Stock - Performance Stock Units Activity under the IMAX LTIP (Details) - Performance Stock Units [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 370,265 |
Forfeited | shares | (2,526) |
PSUs outstanding, end of period | shares | 367,739 |
Granted, weighted average grant date fair value per share | $ / shares | $ 15.66 |
Forfeited, weighted average grant date fair value per share | $ / shares | 14.84 |
PSUs outstanding, weighted average grant date fair value per share, end of period | $ / shares | $ 15.67 |
Capital Stock - Basic and Dilut
Capital Stock - Basic and Diluted Per-share Computations (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Issued and outstanding, beginning of period | 58,857 | 61,331 | 61,176 | 61,434 |
Weighted average number of shares repurchased, net of shares issued during the period | 2 | (27) | (1,816) | (97) |
Weighted average number of shares used in computing basic income per share | 58,859 | 61,304 | 59,360 | 61,337 |
Assumed exercise of stock options, RSUs and PSUs, net of shares assumed repurchased, if dilutive | 175 | 172 | ||
Weighted average number of shares used in computing diluted income per share | 58,859 | 61,479 | 59,360 | 61,509 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | $ 37,256 | $ 86,390 | $ 81,013 | $ 271,385 | |
Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 21,544 | 33,529 | 38,971 | 90,592 | |
Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 8,741 | 30,936 | 23,044 | 104,515 | |
Lease Arrangements [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 4,530 | 19,080 | 11,503 | 68,174 | |
Finance Income [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 2,441 | 2,845 | 7,495 | 8,104 | |
Technology Sales [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 15,753 | 21,735 | 24,102 | 56,629 | |
Technology Sales [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 14,200 | 17,687 | 19,658 | 44,319 | |
Technology Sales [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 1,496 | 2,610 | 3,248 | 5,785 | |
Technology Sales [Member] | IMAX Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 14,996 | 18,132 | 20,179 | 42,400 | |
Technology Sales [Member] | IMAX Systems [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 13,515 | 15,552 | 17,036 | 36,790 | |
Technology Sales [Member] | IMAX Systems [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 1,481 | 2,580 | 3,143 | 5,610 | |
Technology Sales [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 57 | 1,438 | 1,196 | 6,525 | |
Technology Sales [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Other Theater Business [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 307 | 1,560 | 1,261 | 5,766 | |
Technology Sales [Member] | Other Theater Business [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 307 | 1,560 | 1,261 | 5,766 | |
Technology Sales [Member] | Other Theater Business [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | [1] | 393 | 605 | 1,466 | 1,938 |
Technology Sales [Member] | Other [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | [1] | 378 | 575 | 1,361 | 1,763 |
Technology Sales [Member] | Other [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | [1] | 15 | 30 | 105 | 175 |
Technology Sales [Member] | Lease Arrangements [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 57 | 1,438 | 1,196 | 6,525 | |
Technology Sales [Member] | Lease Arrangements [Member] | IMAX Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Lease Arrangements [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 57 | 1,438 | 1,196 | 6,525 | |
Technology Sales [Member] | Lease Arrangements [Member] | Other Theater Business [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Lease Arrangements [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | [1] | 0 | 0 | 0 | 0 |
Technology Sales [Member] | Finance Income [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | IMAX Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | Joint Revenue Sharing Arrangements, Fixed Fees [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | Other Theater Business [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Sales [Member] | Finance Income [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | [1] | 0 | 0 | 0 | 0 |
Image Enhancement And Maintenance Services [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 14,589 | 44,168 | 39,109 | 144,977 | |
Image Enhancement And Maintenance Services [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 7,344 | 15,842 | 19,313 | 46,273 | |
Image Enhancement And Maintenance Services [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 7,245 | 28,326 | 19,796 | 98,704 | |
Image Enhancement And Maintenance Services [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | (17) | 318 | 282 | 1,463 | |
Image Enhancement And Maintenance Services [Member] | Other [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Other [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | (17) | 318 | 282 | 1,463 | |
Image Enhancement And Maintenance Services [Member] | IMAX DMR [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 6,886 | 26,665 | 18,061 | 93,908 | |
Image Enhancement And Maintenance Services [Member] | IMAX DMR [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | IMAX DMR [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 6,886 | 26,665 | 18,061 | 93,908 | |
Image Enhancement And Maintenance Services [Member] | IMAX Maintenance Segment [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 5,855 | 13,657 | 13,225 | 39,815 | |
Image Enhancement And Maintenance Services [Member] | IMAX Maintenance Segment [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 5,855 | 13,657 | 13,225 | 39,815 | |
Image Enhancement And Maintenance Services [Member] | IMAX Maintenance Segment [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Film Post-Production [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 739 | 2,185 | 3,088 | 6,458 | |
Image Enhancement And Maintenance Services [Member] | Film Post-Production [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 739 | 2,185 | 3,088 | 6,458 | |
Image Enhancement And Maintenance Services [Member] | Film Post-Production [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Film Distribution [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 1,126 | 1,343 | 4,453 | 3,333 | |
Image Enhancement And Maintenance Services [Member] | Film Distribution [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 750 | 0 | 3,000 | 0 | |
Image Enhancement And Maintenance Services [Member] | Film Distribution [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 376 | 1,343 | 1,453 | 3,333 | |
Image Enhancement And Maintenance Services [Member] | Lease Arrangements [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Lease Arrangements [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Lease Arrangements [Member] | IMAX DMR [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Lease Arrangements [Member] | IMAX Maintenance Segment [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Lease Arrangements [Member] | Film Post-Production [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Lease Arrangements [Member] | Film Distribution [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Finance Income [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Finance Income [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Finance Income [Member] | IMAX DMR [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Finance Income [Member] | IMAX Maintenance Segment [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Finance Income [Member] | Film Post-Production [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Image Enhancement And Maintenance Services [Member] | Finance Income [Member] | Film Distribution [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Rentals [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 4,473 | 17,642 | 10,307 | 61,675 | |
Technology Rentals [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Rentals [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 26 | |
Technology Rentals [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 1,037 | 1,486 | |||
Technology Rentals [Member] | Other [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | |||
Technology Rentals [Member] | Other [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 26 | |||
Technology Rentals [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 4,473 | 16,605 | 10,307 | 60,189 | |
Technology Rentals [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Rentals [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Rentals [Member] | Lease Arrangements [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 4,473 | 17,642 | 10,307 | 61,649 | |
Technology Rentals [Member] | Lease Arrangements [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 1,037 | 1,460 | |||
Technology Rentals [Member] | Lease Arrangements [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 4,473 | 16,605 | 10,307 | 60,189 | |
Technology Rentals [Member] | Finance Income [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Technology Rentals [Member] | Finance Income [Member] | Other [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | |||
Technology Rentals [Member] | Finance Income [Member] | Joint Revenue Sharing Arrangements, Contingent Rent [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Finance Income [Member] | IMAX Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 2,441 | 2,845 | 7,495 | 8,104 | |
Finance Income [Member] | IMAX Systems [Member] | Fixed Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Finance Income [Member] | IMAX Systems [Member] | Variable Consideration [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Finance Income [Member] | Lease Arrangements [Member] | IMAX Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Finance Income [Member] | Finance Income [Member] | IMAX Systems [Member] | |||||
Revenue from Contracts with Customers [Line Items] | |||||
Revenues | $ 2,441 | $ 2,845 | $ 7,495 | $ 8,104 | |
[1] | Other sales include revenues associated with New Business Initiatives, such as IMAX Enhanced. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Revenue Remaining Performance Obligation | $ 16.7 | $ 17.7 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting (Textual) [Abstract] | |
Description of products and services from which each reportable segment derives its revenues | The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements; (iii) IMAX Systems, (iv) IMAX Maintenance; (v) Other Theater Business; (vi) New Business Initiatives; (vii) Film Distribution; and (viii) Film Post-production. |
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) comprises more than 10% of the Company’s total revenue in the three months ended September 30, 2020 |
Segment Reporting - Breakdown o
Segment Reporting - Breakdown of Revenue and Gross Margin (Margin Loss) by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues | |||||
Revenue | $ 37,256 | $ 86,390 | $ 81,013 | $ 271,385 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 3,829 | 47,120 | 1,227 | 151,813 |
IMAX DMR [Member] | |||||
Revenues | |||||
Revenue | 6,886 | 26,665 | 18,061 | 93,908 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 3,079 | 17,866 | 7,492 | 61,602 |
Joint Revenue Sharing Arrangements, Contingent Rent [Member] | |||||
Revenues | |||||
Revenue | 4,473 | 16,605 | 10,307 | 60,189 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | (2,491) | 9,524 | (10,610) | 40,777 |
IMAX Technology Network [Member] | |||||
Revenues | |||||
Revenue | 11,359 | 43,270 | 28,368 | 154,097 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 588 | 27,390 | (3,118) | 102,379 |
Joint Revenue Sharing Arrangements, Fixed Fees [Member] | |||||
Revenues | |||||
Revenue | 57 | 1,438 | 1,196 | 6,525 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | (117) | 136 | 110 | 1,301 |
IMAX Systems [Member] | |||||
Revenues | |||||
Revenue | [2] | 17,437 | 20,977 | 27,674 | 50,504 |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1],[2] | 8,671 | 11,652 | 14,497 | 26,723 |
IMAX Maintenance Segment [Member] | |||||
Revenues | |||||
Revenue | 5,855 | 13,657 | 13,225 | 39,815 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 794 | 6,125 | (355) | 17,046 |
Other Theater Business [Member] | |||||
Revenues | |||||
Revenue | [3] | 307 | 1,560 | 1,261 | 5,766 |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1],[3] | 31 | 505 | 77 | 1,821 |
IMAX Technology Sales and Maintenance [Member] | |||||
Revenues | |||||
Revenue | 23,656 | 37,632 | 43,356 | 102,610 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 9,379 | 18,418 | 14,329 | 46,891 |
New Business Initiatives [Member] | |||||
Revenues | |||||
Revenue | 378 | 596 | 1,488 | 1,908 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 372 | 541 | 1,245 | 1,441 |
Film Distribution [Member] | |||||
Revenues | |||||
Revenue | [4] | 1,126 | 1,343 | 4,453 | 3,333 |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1],[4] | (5,597) | (760) | (9,296) | (1,093) |
Post-production [Member] | |||||
Revenues | |||||
Revenue | 739 | 2,185 | 3,088 | 6,458 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | (464) | 810 | (96) | 1,576 |
Reportable Segments [Member] | |||||
Revenues | |||||
Revenue | 1,865 | 3,528 | 7,541 | 9,791 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | (6,061) | 50 | (9,392) | 483 |
Reportable Segments | |||||
Revenues | |||||
Revenue | 37,258 | 85,026 | 80,753 | 268,406 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | 4,278 | 46,399 | 3,064 | 151,194 |
Other [Member] | |||||
Revenues | |||||
Revenue | (2) | 1,364 | 260 | 2,979 | |
Gross Margin (Margin Loss) | |||||
Gross Margin (Margin Loss) | [1] | $ (449) | $ 721 | $ (1,837) | $ 619 |
[1] | IMAX DMR gross margin includes marketing costs of $0.4 million and $2.8 million for the three and nine months ended September 30, 2020, respectively (2019 — $4.3 million and $17.7 million, respectively). JRSA gross margin includes advertising, marketing and commission expense of $0.7 million and $1.3 million for the three and nine months ended September 30, 2020, respectively (2019 —$0.8 million and $1.1 million, respectively). IMAX Systems gross margin includes marketing and commission costs of $0.6 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, (2019 — $0.6 million and $1.5 million, respectively). Film Distribution segment gross margin includes marketing expense of $0.2 million and $0.4 million for the three and nine months ended September 30, 2020, respectively (2019 — $0.1 million and $0.7 million, respectively). | ||||
[2] | Includes initial upfront payments and the present value of fixed minimum payments from sales and sales-type lease arrangements of IMAX Theater Systems, and the present value of estimated variable consideration from sales of IMAX Theater Systems. To a lesser extent, also includes finance income associated with these revenue streams. | ||||
[3] | Principally includes after-market sales of IMAX projection system parts and 3D glasses | ||||
[4] | During the three and nine months ended September 30, 2020, Film Distribution segment results were significantly influenced by impairment losses of $ 5.4 million (2019 – $ 0.2 million 0.2 million |
Segment Reporting - Breakdown_2
Segment Reporting - Breakdown of Revenue and Gross Margin (Margin Loss) by Category (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
IMAX DMR [Member] | ||||
Segment Reporting (Textual) [Abstract] | ||||
Marketing costs (recovery) | $ 0.4 | $ 4.3 | $ 2.8 | $ 17.7 |
Joint Revenue Sharing Arrangements, Contingent Rent [Member] | ||||
Segment Reporting (Textual) [Abstract] | ||||
Advertising, marketing and commission costs | 0.7 | 0.8 | 1.3 | 1.1 |
IMAX systems [Member] | ||||
Segment Reporting (Textual) [Abstract] | ||||
Advertising, marketing and commission costs | 0.6 | 0.6 | 1 | 1.5 |
Film Distribution [Member] | ||||
Segment Reporting (Textual) [Abstract] | ||||
Marketing costs (recovery) | 0.2 | 0.1 | 0.4 | 0.7 |
Impairment loss | $ 5.4 | $ 0.2 | $ 9.9 | $ 0.2 |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Geographical Information | ||||
Revenues, total | $ 37,256 | $ 86,390 | $ 81,013 | $ 271,385 |
Greater China [Member] | ||||
Geographical Information | ||||
Revenues, total | 19,346 | 26,557 | 26,008 | 85,813 |
Western Europe [Member] | ||||
Geographical Information | ||||
Revenues, total | 5,085 | 8,433 | 10,273 | 28,809 |
Asia (excluding China) [Member] | ||||
Geographical Information | ||||
Revenues, total | 4,935 | 13,534 | 12,663 | 32,287 |
United States [Member] | ||||
Geographical Information | ||||
Revenues, total | 4,335 | 24,316 | 21,112 | 84,553 |
Latin America [Member] | ||||
Geographical Information | ||||
Revenues, total | 1,616 | 2,912 | 3,251 | 7,725 |
Russia & the CIS [Member] | ||||
Geographical Information | ||||
Revenues, total | 738 | 2,909 | 2,962 | 10,216 |
Canada [Member] | ||||
Geographical Information | ||||
Revenues, total | 384 | 1,993 | 1,327 | 6,485 |
Rest of the World [Member] | ||||
Geographical Information | ||||
Revenues, total | $ 817 | $ 5,736 | $ 3,417 | $ 15,497 |
Employees Pension and Postret_3
Employees Pension and Postretirement Benefits - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Plan [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Deferred compensation plan description | The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein). | |||||
Deferred Compensation Plan [Member] | Accrued and Other Liabilities [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Benefit obligation recorded | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 | |||
Deferred Compensation Plan [Member] | Prepaid Expenses [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Company-owned life insurance | 3,100,000 | 3,100,000 | 3,200,000 | |||
Richard L. Gelfond [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Lump sump payment | $ 20,300,000 | |||||
SERP Benefits [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
SERP assumptions | The accounting for the SERP assumes that Mr. Gelfond will receive a lump sum payment of $20.3 million six months after retirement at the end of the current term of his employment agreement (December 31, 2022), although Mr. Gelfond has not informed the Company that he intends to retire at that time. | |||||
Benefit Obligation | 19,124,000 | $ 19,124,000 | 18,840,000 | $ 17,977,000 | ||
Interest costs | 100,000 | $ 100,000 | 284,000 | $ 400,000 | 564,000 | |
Expected interest costs in the remainder of the year | 100,000 | 100,000 | ||||
Companies contribution and expenses during the remainder of 2020 | 0 | $ 0 | ||||
Defined Contribution Plan [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Defined contribution pension plans for employees | The Company also maintains defined contribution plans for its employees, including its executive officers. The Company makes contributions to these plans on behalf of employees in an amount up to 5% of their base salary subject to certain prescribed maximums. | |||||
Maximum percentage of base salary contributed to Defined Contribution Pension Plan by Company | 5.00% | |||||
Canadian Plan [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Contribution and recorded expense | 300,000 | 300,000 | $ 800,000 | 900,000 | ||
Us Internal Revenue Code [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Contribution and recorded expense | 100,000 | 100,000 | 500,000 | 500,000 | ||
Postretirement Benefits Executives [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Benefit Obligation | 600,000 | 600,000 | 700,000 | |||
Postretirement Benefits Executives [Member] | Maximum [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Maximum amount of Postretirement benefit recorded expense | 100,000 | 100,000 | 100,000 | 100,000 | ||
Postretirement Benefits Canadian Employees [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Benefit Obligation | 1,500,000 | 1,500,000 | $ 1,600,000 | |||
Postretirement Benefits Canadian Employees [Member] | Maximum [Member] | ||||||
Pension and Other Postretirement Benefit Expense (Textual) [Abstract] | ||||||
Maximum amount of Postretirement benefit recorded expense | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Employee's Pension and Postreti
Employee's Pension and Postretirement Benefits - Amounts Accrued and Unfunded Status (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Amounts Accrued | |||||
Obligation, beginning of period | $ 18,840 | $ 17,977 | $ 17,977 | ||
Prior Service cost | 456 | ||||
Interest cost | $ 100 | $ 100 | 284 | $ 400 | 564 |
Actuarial gain | 0 | (157) | |||
Obligation, end of period and unfunded status | $ 19,124 | $ 19,124 | $ 18,840 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Other Financial Instrument | |||
Cash and cash equivalents | $ 305,197 | $ 109,484 | |
Investment in equity securities | 14,803 | 15,685 | |
Net financed sales receivables | 109,645 | 112,432 | |
Net investment in sales-type leases | 17,095 | 15,606 | |
Foreign exchange contracts — forwards | (482) | (530) | |
Bank indebtedness - under the Credit Facility | (300,000) | (20,000) | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Other Financial Instrument | |||
Cash and cash equivalents | [1] | 305,197 | 109,484 |
Investment in equity securities | [2] | 14,803 | 15,685 |
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] | 109,645 | 112,432 |
Net investment in sales-type leases | [3] | 17,095 | 15,606 |
Convertible loan receivable | [3] | 0 | 1,500 |
COLI | [4] | 3,125 | 3,150 |
Bank indebtedness - under the Working Capital Facility | [1] | (253) | 0 |
Bank indebtedness - under the Credit Facility | [1] | (300,000) | (20,000) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Foreign exchange contracts — forwards | [2] | 380 | 530 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Not Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Foreign exchange contracts — forwards | [2] | 102 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Other Financial Instrument | |||
Cash and cash equivalents | [1] | 305,197 | 109,484 |
Investment in equity securities | [2] | 14,803 | 15,685 |
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] | 110,443 | 111,441 |
Net investment in sales-type leases | [3] | 16,829 | 15,309 |
Convertible loan receivable | [3] | 0 | 1,500 |
COLI | [4] | 3,125 | 3,150 |
Bank indebtedness - under the Working Capital Facility | [1] | (253) | 0 |
Bank indebtedness - under the Credit Facility | [1] | (300,000) | (20,000) |
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 — forwards | [2] | 380 | 530 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Not Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Other Financial Instrument | |||
Foreign exchange contracts — forwards | [2] | $ 102 | $ 0 |
[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. | ||
[4] | Measured at cash surrender value, which approximates fair value. |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Country | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Country | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Financial Instruments (Textual) [Abstract] | |||||
Significant transfers into/out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of countries that generate box office | Country | 82 | 82 | |||
Foreign Exchange contract settlement date range | settlement dates throughout 2020 and 2021 | ||||
Estimated gains to be reclassified to earnings within the next twelve months | $ 500,000 | ||||
Investment in equity securities | $ 14,803,000 | 14,803,000 | $ 15,685,000 | ||
Investment in equity securities - cost | 15,200,000 | $ 15,200,000 | |||
Equity securities restrictions | lock-up period of six months | ||||
Gain (loss) in fair value of investments | 1,575,000 | $ (490,000) | $ (939,000) | $ (2,543,000) | |
Maoyan [Member] | |||||
Financial Instruments (Textual) [Abstract] | |||||
Investment in equity securities | 13,700,000 | 13,700,000 | 14,600,000 | ||
Fixed Income Securities [Member] | |||||
Financial Instruments (Textual) [Abstract] | |||||
Equity Investment, Debt Securities | 1,100,000 | 1,100,000 | 1,000,000 | ||
Preferred Stock [Member] | Other Assets [Member] | |||||
Financial Instruments (Textual) [Abstract] | |||||
Investment in equity securities | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Maximum [Member] | |||||
Financial Instruments (Textual) [Abstract] | |||||
Equity securities percentage ownership | 1.00% |
Financial Instruments - Notiona
Financial Instruments - Notional Amount of Derivative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts — Forwards | $ 40,238 | $ 36,052 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts — Forwards | 36,659 | $ 36,052 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts — Forwards | $ 3,579 |
Financial Instruments - Fair _2
Financial Instruments - Fair Value of Foreign Exchange Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts - designated forwards | $ 482 | $ 530 |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value | 465 | 602 |
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value | 107 | |
Accrued and Other Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value | (85) | $ (72) |
Accrued and Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ (5) |
Financial Instruments - Derivat
Financial Instruments - Derivatives in Foreign Currency Hedging Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Gain (Loss) Recognized in OCI (Effective Portion) | $ 591 | $ (527) | $ (935) | $ (162) |
Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) | (110) | (322) | (805) | (1,015) |
Derivative Gain (Loss) Recognized In and Out of OCI (Effective Portion) | 2 | (55) | 2 | |
Fair Value Hedging [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Gain (Loss) Recognized in OCI (Effective Portion) | 591 | (527) | (935) | (162) |
Selling, General and Administrative Expenses [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) | $ (110) | $ (322) | (779) | (983) |
Property, Plant and Equipment [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) | $ (32) | |||
Inventory [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) | $ (26) |
Financial Instruments - Non Des
Financial Instruments - Non Designated Derivatives in Foreign Currency Relationships (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||
Location of Derivative Gain | $ 75 | $ 102 |
Selling, General and Administrative Expenses [Member] | Foreign Exchange Contracts - Forwards [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Location of Derivative Gain | $ 75 | $ 102 |
Non-Controlling Interests - Add
Non-Controlling Interests - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2014USD ($)Film | Dec. 31, 2019USD ($) | |
Non-controlling Interests | ||||||
Non-controlling interest | $ 75,535 | $ 75,535 | $ 89,493 | |||
Net income (loss) attributable to non-controlling interests | $ (1,275) | $ 1,863 | (15,412) | $ 8,524 | ||
Investment in film assets | $ 6,177 | 15,405 | ||||
IMAX China Noncontrolling Interest | ||||||
Non-controlling Interests | ||||||
Minority Interest Ownership Percentage By Company | 69.89% | 69.89% | ||||
IMAX China | ||||||
Non-controlling Interests | ||||||
Non-controlling interest | $ 75,500 | $ 75,500 | ||||
Net income (loss) attributable to non-controlling interests | $ 2,200 | $ 2,300 | (10,300) | $ 9,300 | ||
Other Noncontrolling Interest [Member] | ||||||
Non-controlling Interests | ||||||
Net income (loss) attributable to non-controlling interests | $ (5,132) | |||||
Non-controlling interest description | The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed by a third party in the amount of $25.0 million, with the possibility of contributing additional funds. The Company has contributed $9.0 million to the Original Film Fund since 2014 and has reached its maximum contribution. | |||||
Number Of Expected Original Films | Film | 10 | |||||
Investment in film assets | $ 22,300 | |||||
Other Noncontrolling Interest [Member] | Third Party [Member] | ||||||
Non-controlling Interests | ||||||
Film Fund Expected Capital Contribution | $ 25,000 | |||||
Other Noncontrolling Interest [Member] | Imax | ||||||
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Non-controlling Interests | ||||
Net loss | $ (1,275) | $ 1,863 | $ (15,412) | $ 8,524 |
Other Noncontrolling Interest [Member] | ||||
Non-controlling Interests | ||||
Balance as at December 31, 2019 | 5,908 | |||
Net loss | (5,132) | |||
Balance as at September 30, 2020 | $ 776 | $ 776 |
Exit Costs, Restructuring Cha_2
Exit Costs, Restructuring Charges and Associated Impairments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Restructuring charges and costs to exit leases | $ 0 | $ 0 | $ 0 | $ 850 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Subsequent Event [Member] | Oct. 29, 2020Employee |
Subsequent Event [Line Items] | |
Number of employees furloughed | 150 |
Employees furloughed term | 2 months |
Employees furloughed date | Oct. 26, 2020 |