Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | IMAX Corporation |
Entity Central Index Key | 921,582 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2016 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Entity Well Known Seasoned Issuer | Yes |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock Shares Outstanding | 68,276,139 |
Trading Symbol | IMAX |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 259,752 | $ 317,449 |
Accounts receivable, net of allowance for doubtful accounts of $1,061 (December 31, 2015 - $1,146) | 91,933 | 97,981 |
Financing receivables | 119,649 | 117,231 |
Inventories | 44,564 | 38,753 |
Prepaid expenses | 8,844 | 6,498 |
Film assets | 14,703 | 14,571 |
Property, plant and equipment | 220,211 | 218,267 |
Other assets | 26,278 | 26,136 |
Deferred income taxes | 25,197 | 25,766 |
Other intangible assets | 29,137 | 28,950 |
Goodwill | 39,027 | 39,027 |
Total assets | 879,295 | 930,629 |
Liabilities | ||
Bank indebtedness | 28,786 | 29,276 |
Accounts payable | 20,952 | 23,455 |
Accrued and other liabilities | 76,234 | 95,748 |
Deferred revenue | 102,049 | 104,993 |
Total liabilities | $ 228,021 | $ 253,472 |
Commitments and contingencies | ||
Non-controlling interests | ||
Non-controlling interests | $ 3,263 | $ 3,307 |
Shareholders' equity | ||
Capital stock common shares - no par value. Authorized - unlimited number. Issued and outstanding - 68,276,139 (December 31, 2015 - 69,673,244) | 440,248 | 448,310 |
Other equity | 165,395 | 163,094 |
Accumulated (deficit) earnings | (5,854) | 19,930 |
Accumulated other comprehensive loss | (3,732) | (7,443) |
Total shareholders' equity attributable to common shareholders | 596,057 | 623,891 |
Non-controlling interests | 51,954 | 49,959 |
Total shareholders' equity | 648,011 | 673,850 |
Total liabilities and shareholders' equity | $ 879,295 | $ 930,629 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Allowance for doubtful accounts | $ 1,061 | $ 1,146 |
Shareholders' equity | ||
Common stock, share issued | 68,276,139 | 69,673,244 |
Common stock, share outstanding | 68,276,139 | 69,673,244 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Equipment and product sales | $ 23,740 | $ 14,436 |
Services | 44,273 | 31,716 |
Rentals | 21,779 | 13,814 |
Finance income | 2,336 | 2,245 |
Revenues, total | 92,128 | 62,211 |
Costs and expenses applicable to revenues | ||
Equipment and product sales | 17,791 | 7,540 |
Services | 17,596 | 14,807 |
Rentals | 4,565 | 3,883 |
Cost and expenses applicable to revenues, total | 39,952 | 26,230 |
Gross margin | 52,176 | 35,981 |
Selling, general and administrative expenses (including share-based compensation expense of $8.5 million for the three months ended March 31, 2016 (2015 - expense of $5.6 million)) | 31,584 | 28,352 |
Research and development | 3,708 | 4,542 |
Amortization of intangibles | 491 | 430 |
Receivable provisions, net of recoveries | 126 | 5 |
Income from operations | 16,267 | 2,652 |
Interest income | 467 | 246 |
Interest expense | (398) | (304) |
Income from operations before income taxes | 16,336 | 2,594 |
Provision for income taxes | (3,718) | (675) |
Loss from equity-accounted investments, net of tax | (441) | (434) |
Net income | 12,177 | 1,485 |
Less: Net income attributable to non-controlling interests | (2,650) | (1,094) |
Net income attributable to common shareholders | $ 9,527 | $ 391 |
Net income per share attributable to common shareholders - basic and diluted: | ||
Net income per share - basic | $ 0.14 | $ 0 |
Net income per share - diluted | $ 0.14 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements of Operations [Abstract] | ||
Share-based compensation costs | $ 8.5 | $ 5.6 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 12,177 | $ 1,485 |
Unrealized net gain (loss) from cash flow hedging instruments | 2,207 | (3,026) |
Realization of cash flow hedging net loss upon settlement | 1,277 | 635 |
Foreign currency translation adjustments | 422 | (70) |
Amortization of post retirement benefit plan actuarial loss | 17 | 0 |
Other comprehensive income (loss), before tax | 3,923 | (2,461) |
Income tax (expense) benefit related to other comprehensive income (loss) | (911) | 644 |
Other comprehensive income (loss), net of tax | 3,012 | (1,817) |
Comprehensive income (loss) | 15,189 | (332) |
Less: Comprehensive income attributable to non-controlling interests | (1,951) | (1,089) |
Comprehensive income (loss) attributable to common shareholders | $ 13,238 | $ (1,421) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net income | $ 12,177 | $ 1,485 |
Adjustments to reconcile net income to cash from operations: | ||
Depreciation and amortization | 10,438 | 9,633 |
Write-downs, net of recoveries | 648 | 128 |
Change in deferred income taxes | (185) | 191 |
Stock and other non-cash compensation | 8,667 | 5,666 |
Unrealized foreign currency exchange (gain) loss | (557) | 1,351 |
Loss from equity-accounted investments | 818 | 785 |
Gain on non-cash contribution to equity-accounted investees | (377) | (352) |
Investment in film assets | (3,919) | (3,013) |
Changes in other non-cash operating assets and liabilities | (22,746) | (9,805) |
Net cash provided by operating activities | 4,964 | 6,069 |
Investing Activities | ||
Purchase of property, plant and equipment | (4,585) | (22,582) |
Investment in joint revenue sharing equipment | (3,988) | (4,815) |
Acquisition of other intangible assets | (770) | (665) |
Net cash used in investing activities | (9,343) | (28,062) |
Financing Activities | ||
Increase in bank indebtedness | 0 | 11,371 |
Repayment of bank indebtedness | (500) | 0 |
Repurchase of common shares | (44,618) | 0 |
Settlement of restricted share units | (5,849) | (3,905) |
Taxes paid on secondary sale and repatriation dividend | (2,991) | 0 |
Common shares issued - stock options exercised | 740 | 11,407 |
Credit facility amendment fees paid | 0 | (1,003) |
Issuance of subsidiary shares to non-controlling interests - private offering | 0 | 40,000 |
Share issuance costs from the issuance of subsidiary shares to non-controlling interests - private offering | 0 | (2,000) |
Net cash (used in) provided by financing activities | (53,218) | 55,870 |
Effects of exchange rate changes on cash | (100) | (38) |
(Decrease) increase in cash and cash equivalents during the period | (57,697) | 33,839 |
Cash and cash equivalents, beginning of period | 317,449 | 106,503 |
Cash and cash equivalents, end of period | $ 259,752 | $ 140,342 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | |
Basis of Presentation | 1. Basis of Presentation 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”). The condensed consolidated financial statements inclu de the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which the Company has identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. The nature of the Company’s busine ss is such that the results of operations for the interim periods presented are not necessarily indicative of results to be expected for the fiscal year. In the opinion of management, the information contained herein reflects all normal and recurring adjus tments necessary to make the results of operations for the interim periods a fair statement of such operations. The Company has evaluated its various variable interests to determine whether they are VIEs as required by the Consolidation Topic of the Finan cial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”). The Company has 11 film production companies that are VIEs. For five of the Company’s film production companies, the Company has determined that it is th e primary beneficiary of these entities as the Company has the power to direct the activities of the respective VIE that most significantly impact the respective VIE’s economic performance and has the obligation to absorb losses of the VIE that could poten tially be significant to the respective VIE or the right to receive benefits from the respective VIE that could potentially be significant to the respective VIE. These consolidated production companies have total assets of $ 7.1 million (December 31, 2015 — $ 7.2 million) and total liabilities of $ 3.2 million as at March 31, 2016 (December 31, 2015 — $ 4.1 million). The majority of these consolidated assets are held by the IMAX Original Film Fund (the “Film Fund”) as described in note 16(b). For the other six film production companies which are VIEs, the Company did not consolidate these film entities since it does not have the power to direct activities and does not absorb the majority of the expected losses or expected residual returns. The Company equity ac counts for these entities. As at March 31, 2016 , these six VIEs have total assets of $ 0.4 million (December 31, 2015 — $ 0.4 million) and total liabilities of $ 0.4 million (December 31, 2015 — $ 0.4 million). Earnings of the investees included in the Company’s condense d consolidated statement of operations amounted to $nil for the three months ended March 31, 2016 ( 2015 — $nil). The carrying value of these investments in VIEs that are not consolidated is $nil at March 31, 2016 (December 31, 2015 — $nil). A loss in value of an investment other than a t emporary decline is recognized as a charge to the condensed consolidated statement of operations. The Company’s exposure, which is determined based on the level of funding contributed by the Company and the development stage of the respective film, is $nil at March 31, 2016 (December 31, 2015 — $nil). The Company accounts for investments in new business ventures using t he guidance of the FASB ASC 323 “Investments – Equity Method and Joint Ventures” (“ASC 323”) or ASC 320 “Investments in Debt and Equity Securities” (“ASC 320”), as appropriate. All intercompany accounts and transactions, including all unrealized intercompany profits on transactions with equity-acco unted investees, have been eliminated. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the consolidated financial statements included in the Company’s 2015 Annual Report on Form 10-K for the year ended December 31, 2015 (“the 2015 Form 10-K”) which should b e consulted for a summary of the significant accounting policies utilized by the Company. These interim financial statements are prepared following accounting policies consistent with the Company’s financial statements for the year ended December 31, 2015 , except as noted below. |
New Accounting Standards and Ac
New Accounting Standards and Accounting Changes | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Standards and Accounting Changes [Abstract] | |
New Accounting Standards and Accounting Changes | 2. New Accounting Standards and Accounting Changes Adoption of New Accounting Policies In January 2015, the FASB issued ASU No. 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). Prior to the changes under ASU 2015-01, an entity was required to separately classify, present and disclose extraordinary events and transactions under the disclosure requirements of Subtopic 225-20, “Income Statement – Extraordinary and Unusual Items” (“Subtopic 225-20”). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items therefore such separate disclosure is no longer require d in the Income Statement of an entity. For public companies, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments can be applied prospectively or retrospectively. T he Company prospectively adopted the amendments under ASU 2015-01 on January 1, 2016. The adoption of the standard did not have an impact on the disclosures presented in the condensed consolidated statement of operations for the period ended March 31, 2016 and 2015. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (“ASU 2015-02”). ASU 2015-02, changes the analysis that a reporting entity must perform to determine whether it should con solidate certain types of legal entities such as limited partnerships and similar entities, and variable interest entities that have free arrangements and related party relationships. Furthermore, all legal entities are subject to re-evaluation under the revised consolidation model. The amendments also provide a scope exception from consolidation guidance for reporting entities with interest in legal entities that are required to comply with or operate in accordance with requirements that are similar to th ose in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. For public companies, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments can be applied retrospectively or using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Company adopted the amendments under ASU 2015-02 retrospectively on Janu ary 1, 2016. The adoption of the standard did not have an impact on the Company’s condensed consolidated financial statements as there was no change to the entities currently consolidated by the Company . In April 2015, the FASB issued ASU No. 2015-03, “In terest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), and in August 2015 issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measuremen t of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). Under ASU 2015-03, debt issuance costs reported on the balance sheet will be reflected as a direct deduction from the related debt liability rather than as an asset. Whi le ASU 2015-03 addresses costs related to term debt, ASU 2015-15 provides clarification regarding costs to secure revolving lines of credit, which are, at the outset, not associated with an outstanding borrowing. ASU 2015-15 provides commentary that the U. S Securities and Exchange Commission staff would not object to an entity deferring and presenting costs associated with line-of-credit arrangements as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. For pu blic companies, the amendments apply to annual periods beginning on or after December 15, 2015, and interim periods within those years and are to be applied retrospectively. The Company adopted these standards on January 1, 2016. As at December 31, 2015, $ 0.4 million of unamortized debt issuance costs related to the Company’s loan to finance the construction of its Playa Vista facility were reclassified in the condensed consolidated balance sheet from Other assets to Bank indebtedness. The Company will con tinue to defer and present the debt issuance cost related to its senior secured revolving credit facility in Other assets and amortize it ratably over the term of the agreement . Recently Issued FASB Accounting Standard Codification Updates In January 20 16, the FASB issued ASU No. 2016-01, “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The purpose of the amendment is intended to provide users of financial statements wit h more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. For public entities, the amendments in ASU 2016-01 are effective for interim and annual reporting periods beginning after December 15, 2017. T he Company is currently assessing the impact of ASU 2016-01 on its condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The purpose of the amendment is to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. New disclosures will include qualitative and quantitative requirements to provide additional information about the amounts recorded in the financial statements. Lessor accounting will remain largely unchanged from current guidance, however ASU 2016-02 will provide improvements that are intended to align lessor accounting with the lessee model and with updated revenue recognition guidance . For public entities, the amendments in ASU 2016-02 are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is currently assessing the impact of ASU 2016-02 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). The amendments in ASU 2016-05 apply to all reporting entities for wh ich there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815. The amendments clarify that a change in the counterparty to a derivative instrument that has been designated as the hedgi ng instrument under Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. For public entiti es, the amendments in ASU 2016-05 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-05 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting” (“ASU 2016-07”). The purpose of the amendment eliminates the requirement that when an investment quali fies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by step basis as if the equ ity method had been in effect during all previous periods that the investment had been held. For public entities, the amendments in ASU 2016-07 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is current ly assessing the impact of ASU 2016-07 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” (“ASU 2016-08”). The purp ose of ASU 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Compa ny is currently assessing the impact of ASU 2016-08 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (“ASU 2016-09”). The amendment is to simplify several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of c ash flows. For public entities, the amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-09 on its condensed consolidated financial sta tements . Recently issued FASB accounting standard codification updates, except for the above noted standards, were not material to the Company’s condensed consolidated financial statements for the period ended March 31, 2016 . |
Financing Receivables
Financing Receivables | 3 Months Ended |
Mar. 31, 2016 | |
Financing Receivables [Abstract] | |
Financing Receivables | 3. Financing Receivables Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of theater systems are as follows: March 31, December 31, 2016 2015 Gross minimum lease payments receivable $ 12,738 $ 13,998 Unearned finance income (2,161) (2,381) Minimum lease payments receivable 10,577 11,617 Accumulated allowance for uncollectible amounts (672) (672) Net investment in leases 9,905 10,945 Gross financed sales receivables 148,889 146,232 Unearned finance income (38,502) (39,378) Financed sales receivables 110,387 106,854 Accumulated allowance for uncollectible amounts (643) (568) Net financed sales receivables 109,744 106,286 Total financing receivables $ 119,649 $ 117,231 Net financed sales receivables due within one year $ 20,292 $ 19,068 Net financed sales receivables due after one year $ 89,452 $ 87,218 As at March 31, 2016 , the financed sale receivables had a weighted average effective interest rate of 9.2 % (December 31, 2015 — 9.4 %) . |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventories [Abstract] | |
Inventories | 4. Inventories March 31, December 31, 2016 2015 Raw materials $ 28,123 $ 25,750 Work-in-process 2,559 2,628 Finished goods 13,882 10,375 $ 44,564 $ 38,753 At March 31, 2016 , finished goods inventory for which title had passed to the customer and revenue was deferred amounted to $ 8.1 million (December 31, 2015 — $ 5.4 million). During the three months ended March 31, 2016 , the Company had write-downs for excess and obsolete inventory based upon current estimates of net realizable value considering future events and conditions of $0.2 million ( 2015 — less than $0.1 million). |
Property Plant and Equipment
Property Plant and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property Plant and Equipment As at March 31, 2016 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components $ 199,738 $ 78,341 $ 121,397 Camera equipment 5,413 3,486 1,927 205,151 81,827 123,324 Assets under construction 11,720 - 11,720 Other property, plant and equipment Land 8,203 - 8,203 Buildings 67,963 13,210 54,753 Office and production equipment 37,422 18,441 18,981 Leasehold improvements 5,644 2,414 3,230 119,232 34,065 85,167 $ 336,103 $ 115,892 $ 220,211 As at December 31, 2015 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components $ 199,974 $ 74,568 $ 125,406 Camera equipment 5,393 3,368 2,025 205,367 77,936 127,431 Assets under construction 9,616 - 9,616 Other property, plant and equipment Land 8,203 - 8,203 Buildings 67,150 12,679 54,471 Office and production equipment 34,396 17,035 17,361 Leasehold improvements 3,512 2,327 1,185 113,261 32,041 81,220 $ 328,244 $ 109,977 $ 218,267 |
Other Intangible Assets
Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Other Intangible Assets [Abstract] | |
Other Intangible Assets | 6. Other Intangible Assets As at March 31, 2016 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 10,683 $ 6,623 $ 4,060 Licenses and intellectual property 22,490 6,645 15,845 Other 12,378 3,146 9,232 $ 45,551 $ 16,414 $ 29,137 As at December 31, 2015 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 10,399 $ 6,502 $ 3,897 Licenses and intellectual property 22,390 6,464 15,926 Other 11,878 2,751 9,127 $ 44,667 $ 15,717 $ 28,950 Other intangible assets of $ 12.4 million are comprised mainly of the Company’s investment in an enterprise resource planning system. Fully amortized other intangible assets are still in use by t he Company. During the three months ended March 31, 2016 , the Company acquired $ 1.0 million in other intangible assets. The weighted average amortization period for these additions was 10 years. During the three months ended March 31, 2016 , the Company incurred costs of $ 0.1 million to renew or ext end the term of acquired other intangible assets which were recorded in selling, general and administrative expenses ( 2015 – less than $0.1 million). As at March 31, 2016 , estimated amortization expense for each of the years ended December 31, are as follows: 2016 (nine months remaining) $ 2,632 2017 3,509 2018 3,509 2019 3,509 2020 3,509 |
Credit Facility and Playa Vista
Credit Facility and Playa Vista Construction Loan | 3 Months Ended |
Mar. 31, 2016 | |
Credit Facility and Playa Vista Construction Loan [Abstract] | |
Credit Facility and Playa Vista Construction Loan [Text Block] | 7. Credit Facility and Playa Vista Loan On March 3, 2015, the Company amended and restated the terms of its existing senior secured credit facility (the “Prior Credit Facility”) in order to, among other things, eliminate the fixed charge coverage ratio under the Prior Credit Facility and reset certain financial maintenance covenants. The amended and restated facility (the “Credit Facility”), with a scheduled maturity of March 3, 2020, has a maximum borrowing capacity of $ 200.0 million, the same maximum borrowing capacity as under the Prior Credit Facility. Certain of the Company’s subsidiaries serve as guarantors (the “Guarantors”) of the Company’s obl igations under the Credit Facility. The Credit Facility is collateralized by a first priority security interest in substantially all of the present and future assets of the Company and the Guarantors. The terms of the Credit Facility are set forth in the Fourth Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), dated March 3, 2015, among the Company, the Guarantors, the lenders named therein, Wells Fargo Bank, National Association (“Wells Fargo”), as agent and issuing lender (Well s Fargo, together with the lenders named therein, the “Lenders”) and Wells Fargo Securities, LLC, as Sole Lead Arranger and Sole Bookrunner and in various collateral and security documents entered into by the Company and the Guarantors. Each of the Guarant ors has also entered into a guarantee in respect of the Company’s obligations under the Credit Facility . On February 22, 2016, the Company amended the terms of the Credit Agreement to increase the general restricted payment basket thereunder (which covers, among other things, the repurchase of shares) from $150.0 million to $350.0 million in the aggregate after the amendment date . The Company was in compliance with all of its requirements at March 31, 2016 . Total amounts drawn and available under the Credit Facility at March 31, 2016 were $nil and $ 200.0 million, respectively (December 31, 2015 — $ni l and $ 200.0 million, respectively). As at March 31, 2016 , the Company did not have any letters of credit and advance payment guarantees outstanding (December 31 , 2015 — $nil), under the Credit Facility. Playa Vista Financing On October 6, 2014, IMAX PV Development Inc., a Delaware corporation (“PV Borrower”) and wholly-owned subsidiary of the Company, entered into a construction loan agre ement with Wells Fargo. The construction loan (the “Playa Vista Construction Loan”) was used to fund $22.3 million of the costs of development and construction of the West Coast headquarters of the Company, located in the Playa Vista neighborhood of Los An geles, California (the “Playa Vista Project”). The total cost of development of the Playa Vista Project was approximately $54.0 million, with all costs in excess of the Playa Vista Construction Loan provided through funding by the Company. The Company be gan occupying the Playa Vista facility in March of 2015. On October 19, 2015, PV Borrower converted the Playa Vista Construction Loan from a construction loan into a permanent loan (“Playa Vista Loan”) pursuant to the terms of the loan documents. Pursuan t to the conversion, PV Borrower increased the principal balance of the loan by an additional $7.7 million, to $30.0 million. Prior to the conversion, the Playa Vista Construction Loan bore interest at a variable interest rate per annum equal to 2.25% abov e the 30-day LIBOR rate, and PV Borrower was required to make monthly payments of interest only. However, as a result of the conversion, the interest rate decreased from 2.25% to 2.0% above the 30-day LIBOR rate, and PV Borrower will be required to make mo nthly payments of combined principal and interest over a 10-year term with a lump sum payment at the end of year 10. The Playa Vista Loan is being amortized over 15 years. The Playa Vista Loan will be fully due and payable on October 19, 2025 (the “Maturit y Date”), and may be prepaid at any time without premium, but with all accrued interest and other applicable payments. The Playa Vista Loan is secured by a deed of trust from PV Borrower in favor of Wells Fargo, granting a first lien on and security inter est in the Playa Vista property and the Playa Vista Project, including all improvements to be constructed thereon, and other documents evidencing and securing the loan (the “Loan Documents”). The Loan Documents include absolute and unconditional payment an d completion guarantees provided by the Company to Wells Fargo for the performance by PV Borrower of all the terms and provisions of the Playa Vista Loan and an environmental indemnity also provided by the Company. The Loan Documents contain affirmative, negative and financial covenants (including compliance with the financial covenants of the Company’s outstanding revolving senior secured facility with Wells Fargo), agreements, representations, warranties, borrowing conditions, and events of default custo mary for development projects such as the Playa Vista Project. Bank indebtedness includes the following: March 31, December 31, 2016 2015 Playa Vista Loan $ 29,167 $ 29,667 Deferred charges on debt financing (381) (391) $ 28,786 $ 29,276 Total amounts drawn under the loan at March 31, 2016 was $ 29.2 million (December 31, 2015 — $ 29.7 million) at an effective interest rate for the quarter of 2.43 % ( 2015 — 2.42 %). In accordance with the loan agreement , the Company is obligated to make payments on the principal of the loan as follows: 2016 (nine months remaining) $ 1,500 2017 2,000 2018 2,000 2019 2,000 2020 2,000 Thereafter 19,667 $ 29,167 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 settlement risk on its foreign currency forward contracts was $ 0.9 million at March 31, 2016 as the notional value exceeded the fair value of the forward contracts. As at March 31, 2016 , the Company has $ 34.0 million in notional value of such arrangements outstanding. Bank of Montreal Facility As at March 31, 2016 , the Company has available a $ 10.0 million facility (December 31, 2015 — $ 10.0 million) with the Bank of Montreal for use solely in conjunction with the issuance of performance guarantees and letters of credit fully insured by Export Development Canada (the “Bank of Montreal Facility”). As at March 31, 2016 , the Company has letters of credit and advance payment guarantees out standing of $ 0.1 million (December 31, 2015 — $ 0.3 million) under the Bank of Montreal Facility. |
Contingencies and Guarantees
Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2016 | |
Commitments, Contingencies and Guarantees [Abstract] | |
Contingencies and Guarantees | 8. Contingencies and Guarantees The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. In accordance with the Contingencies Topic of the FASB ASC, the Company will make a provision for a liability when it is both probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has adequate provisions for any su ch matters. The Company reviews these provisions in conjunction with any related provisions on assets related to the claims at least quarterly and adjusts these provisions to reflect the impacts of negotiations, settlements, rulings, advice of legal counse l and other pertinent information related to the case. Should developments in any of these matters outlined below cause a change in the Company’s determination as to an unfavorable outcome and result in the need to recognize a material provision, or, shoul d any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on the Company’s results of operations, cash flows, and financial position in the period or periods in which such a c hange in determination, settlement or judgment occurs. The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred. On May 15, 2006, the Company initiated arbitration against Three-Dimensional Media Group, Ltd. (“3DMG”) before the International Centre for Dispute Resolution in New York (the “ICDR”), alleging breaches of the license and consulting agreements between the Company and 3DMG. On June 15, 2006, 3DMG filed an answer denying any breaches and asserting counterclaim s that the Company breached the parties’ license agreement. On June 21, 2007, the ICDR unanimously denied 3DMG’s Motion for Summary Judgment filed on April 11, 2007 concerning the Company’s claims and 3DMG’s counterclaims. The proceeding was suspended on M ay 4, 2009 due to failure of 3DMG to pay fees associated with the proceeding. The proceeding was further suspended on October 11, 2010 pending resolution of re-examination proceedings currently pending involving one of 3DMG’s patents. The proceeding remain s suspended pending 3DMG obtaining new counsel to represent it. A status hearing has been scheduled for April 27, 2016 before the ICDR. If the proceeding resumes, the Company will continue to pursue its claims vigorously and believes that all allegations m ade by 3DMG are without merit. The Company further believes that the amount of loss, if any, suffered in connection with the counterclaims would not have a material impact on the financial position or results of operations of the Company, although no assur ance can be given with respect to the ultimate outcome of the arbitration. 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 affili ate, 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. The Company has oppos ed that application on a number of grounds and seeks to have the ICC award recognized in India. On June 13, 2013, the Bombay High Court ruled that it has jurisdiction over the proceeding but on November 19, 2013, the Supreme Court of India stayed proceedin gs in the High Court pending Supreme Court review of the High Court’s ruling. On June 24, 2011, the Company commenced a proceeding in the Ontario Superior Court of Justice for recognition of the ICC final award. On December 2, 2011, the Ontario Court issue d an order recognizing the final award and requiring E-City to pay the Company $30,000 to cover the costs of the application. In January 2013, the Company filed an action in the New York Supreme Court seeking to collect the amount owed to the Company by ce rtain entities and individuals affiliated with E-City. On October 16, 2015, the New York Supreme Court denied the Company’s petition, and on November 12, 2015, the Company filed a notice of appeal. On July 29, 2014, the Company commenced a separate proceed ing to have the Canadian judgment against E-City recognized in New York, and on October 2, 2015, the New York Supreme Court granted IMAX’s request, recognizing the Canadian judgment and entering it as a New York judgment. On November 26, 2014, E-City filed a motion in the Bombay High Court seeking to enjoin IMAX from continuing the New York legal proceedings. On February 2, 2015, the Bombay High Court denied E-City’s request for an ad interim injunction. On March 16, 2015, E-City filed an appeal of this Bom bay High Court decision. A class action lawsuit was filed on September 20, 2006 in the Canadian Court against the Company and certain of its officers and directors, alleging violations of Canadian securities laws. This lawsuit was brought on behalf of sha reholders who acquired the Company’s securities between February 17, 2006 and August 9, 2006. The lawsuit sought $210.0 million in compensatory and punitive damages, as well as costs. For reasons released December 14, 2009, the Canadian Court granted leave to the plaintiffs to amend their statement of claim to plead certain claims pursuant to the Securities Act (Ontario) against the Company and certain individuals (“the Defendants”) and granted certification of the action as a class proceeding. In March 201 3, the Defendants obtained an Order enforcing the settlement Order in a parallel class action in the United States in this Canadian class action lawsuit, with the result that the class in this case was reduced in size by approximately 85%. The United State s class action was conclusively settled in May 2014 for $12.0 million. A motion by the Plaintiffs for leave to appeal that Order was dismissed. On October 15, 2015, the parties to the Canadian class action lawsuit executed a formal Settlement Agreement. O n December 15, 2015, the Canadian Court issued an Order approving that Settlement Agreement, with the effect that the Canadian class action lawsuit was deemed to be dismissed on January 14, 2016. Under the terms of the Settlement Agreement, members of the Canadian class who did not opt out of the settlement released Defendants from liability for all claims that were alleged in this action or could have been alleged in this action or any other proceeding relating to the purchase of the Company’s securities b etween February 17, 2006 to and including August 9, 2006. As part of the settlement and in exchange for the release, the Defendants agreed to pay CAD$3.75 million to a settlement fund, which amount will be funded by the carriers of the Company’s directors and officers insurance policy. The settlement will be distributed to the Canadian class after May 31, 2016, the closing date for claims to be submitted to the Court-appointed administrator . On November 4, 2013, a purported class action complaint was filed in the United States District Court for the Northern District of Illinois (the “Court”) against IMAX Chicago Theatre LLC (“IMAX Chicago Theatre”), a subsidiary of the Company. The plaintiff, Scott Redman, alleged that IMAX Chicago Theatre provided certain credit card and debit card receipts to customers that were purportedly not in compliance with the applicable truncation requirements of the Fair and Accurate Credit Transactions Act, which IMAX Chicago Theatre denies. The plaintiff did not allege actual d amages but sought statutory damages individually and on behalf of a putative class. On October 26, 2015, the parties filed with the Court a class action settlement agreement (the “Settlement Agreement”) and proposed form of class notice, and on March 4, 20 16, the Court issued an order finally approving the Settlement Agreement and dismissing the action. Under the terms of the Settlement Agreement, members of the class who did not opt out of the settlement released IMAX Chicago Theatre and its affiliates fro m liability for all claims that were alleged or could have been alleged in this action or any other proceeding relating to the subject matter of this action. As part of the settlement and in exchange for the release, IMAX Chicago Theatre paid a total of $0 .4 million to a settlement fund, which has been distributed to the class (after deducting certain fees and other expenses). In March 2013, IMAX (Shanghai) Multimedia Technology Co., Ltd., the Company’s majority-owned subsidiary in China, received notice from the Shanghai office of the General Administration of Customs that it had been selected for a customs audit. The Company is unable to assess the potential impact, if any, of the audit at this time. On November 11, 2013, Giencourt Investments, S.A. (“G iencourt”) 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. Giencourt submitted its statement of claim in January 2015, the Company submitted its statement of defense and counterclaim in April 2015 and Giencourt submitted its arbitration reply paper in September 2015. 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 seeks to recover from the Company. The Company has asserted a counterclaim against Giencourt for breach of contract and seeks to re cover lost profits in excess of $24.0 million under the agreements. A final hearing with closing statements is scheduled for October 2016. In addition, on December 10, 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 Company strongly disputes that discussions about a potential resolution of this matter amounted to an enforceable settlement. The panel has asked the parties to brief this issue, and o ral arguments will be held during the upcoming October hearings. Although no assurances can be given with respect to the ultimate outcome of the proceedings, the Company believes that it has meritorious defenses and claims, and will continue to vigorously pursue them . 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. In the normal course of business, the Company enters into agreements that may contain features that meet the definition of a guar antee. The Guarantees Topic of the FASB ASC defines a guarantee to be a contract (including an indemnity) that contingently requires the Company to make payments (either in cash, financial instruments, other assets, shares of its stock or provision of serv ices) 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 a nother party to perform under an obligating agreement or (c) failure of another third party to pay its indebtedness when due. Financial Guarantees The Company has provided no significant financial guarantees to third parties. Product Warranties The Company’s accrual for product warranties, that would be recorded as part of accrued liabilities in the condensed consolidated balance sheets is $nil at March 31, 2016 and December 31, 2015 , respectively. Director/Officer Indemnifications The Company’s General By-law contains an indemnification of its directors/officers, former directors/officers and persons who have acted at its request to be a director/officer of an e ntity in which the Company is a shareholder or creditor, to indemnify them, to the extent permitted by the Canada Business Corporations Act , against expenses (including legal fees), judgments, fines and any amounts actually and reasonably incurred by them in connection with any action, suit or proceeding in which the directors and/or officers are sued as a result of their service, if they acted honestly and in good faith with a view to the best interests of the Company. The nature of the indemnification pre vents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. The Company has purchased directors’ and officers’ liability insurance. No amount has been accrued in the condensed consolida ted balance sheet as at March 31, 2016 and December 31, 2015 with respect to this indemnity. Other Indemnification Agreements In the normal course of the Company’s op erations, the Company provides indemnifications to counterparties in transactions such as: theater system lease and sale agreements and the supervision of installation or servicing of the theater systems; film production, exhibition and distribution agreem ents; 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 consequ ence 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 d o not provide for any limit on the maximum potential amount of indemnification; however, virtually all of the Company’s system lease and sale agreements limit such maximum potential liability to the purchase price of the system. The fact that the maximum p otential amount of indemnification required by the Company is not specified in some cases prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. Historically, the Company has no t made any significant payments under such indemnifications and no a mounts have been accrued in the condensed consolidated financial statements with respect to the contingent aspect of these indemnities. |
Condensed Consolidated Statem16
Condensed Consolidated Statements of Operations Supplemental Information | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | |
Condensed Consolidated Statements of Operations Supplemental Information | 9. Condensed Consolidated Statements of Operations Supplemental Information Selling Expenses The Company defers direct selling costs such as sales commissions and other amounts related to its sale and sales-type lease arrangements until the related revenue is recognized. These costs and direct advertising and marketing, included in costs and expenses applicable to revenues-equipment and product sales, totaled $ 0.7 million fo r the three months ended March 31, 2016 ( 2015 — $0.5 million). Film exploitation costs, including advertising and marketing, totaled $ 3.0 million for the three months ended March 31, 2016 ( 2015 — $ 1.2 million) and are recorded in costs and expenses applicable to revenues-services as incurred. Commissions are recognized as costs and expenses applicable to revenues-rentals in the month they ar e earned. These costs totaled a recovery of less than $ 0.1 million for the three months ended March 31, 2016 ( 2015 — recovery of $ 0.1 million). Direct advertising and ma rketing costs for each theater are charged to costs and expenses applicable to revenues-rentals as incurred. These costs totaled an expense of less than $ 0.1 million for the three months ended March 31, 2016 ( 2015 — recovery of less than $0.1 million). Foreign Exchange Included in selling, general and administrative expenses for the three months ended March 31, 2016 is a gain of $ 0.5 million ( 2015 — loss of $ 1.6 million), for net foreign exchange gains/losses related to the translation of foreign c urrency denominated monetary assets and liabilities. See note 15(d) for additional information. Collaborative Arrangements Joint Revenue Sharing Arrangements In a joint revenue sharing arrangement, the Company receives a portion of a theater’s box-offic e and concession revenues, and in some cases a small upfront or initial payment, in exchange for placing a theater system at the theater operator’s venue. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the h ardware 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 revenu e sharing arrangements generally does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping term s and ending on the date the theater systems are delivered back to the Company. The Company has signed joint revenue sharing agreements with 47 exhibitors for a total of 748 theater systems, of which 534 theaters were operating as at March 31, 2016 , the terms of which are similar in nature, rights and obligations. The accounting policy for the Company’s joint revenue sharing arrangements is disclosed in note 2(m) of the Company’s 2015 Form 10-K. Amounts attributable to transactions arising between the Company and its customers under joint revenue sharing arrangements are included in Equipment and Produ ct Sales and Rentals revenue and for the three months ended March 31, 2016 amounted to $ 23.4 million ( 2015 — $ 15.9 million). IMAX DMR In an IMAX DMR arrangement, the Company transforms conventional motion pictures into the Company’s large screen format, allowing the release of Hollywood content to the global IMAX theater network. In a typical IMAX DMR film arrangement, the Company will absorb its costs for the digital re-mastering and then recoup this cos t from a percentage of the net box-office receipts of the film, which in recent years has ranged from 10-15%. The Company does not typically hold distributi on rights or the copyright to these films. For the three months ended March 31, 2016 , the majority of IMAX DMR revenue was earned from the exhibition of 17 IMAX DMR fi lms ( 2015 – 22 ) throughout the IMAX theater network. The accounting policy for the Company’s IMAX DMR arrangements is disclosed in note 2(m) of the Company’s 2015 Form 10-K. Amounts attri butable to transactions arising between the Company and its customers under IMAX DMR arrangements are included in Services revenue and for the three months ended March 31, 2016 amounted to $ 29.8 million ( 2015 — $ 17.7 million). Co-Produced Film Arrangements In certain film arrangements, the Company co-produces a film with a third party whereby the third party ret ains the copyright and rights to the film except that the Company obtains exclusive theatrical distribution rights to the film. Under these arrangements, both parties contribute funding to the Company’s wholly-owned production company for the production of the film and for associated exploitation costs. Clauses in the film arrangements generally provide for the third party to take over the production of the film if the cost of the production exceeds its approved budget or if it appears as though the film wi ll not be delivered on a timely basis. The accounting policies relating to co-produced film arrangements are disclosed in notes 2(a) and 2(m) of the Company’s 2015 Form 10-K. As at March 31, 2016 , the Company has one significant co-produced film arrangement which represents the VIE total assets balance of $ 0.4 million and total liabilities balance of $ 0.4 million and five other co-produced film arrangements, the terms of which are similar. For the three months ended March 31, 2016 , amounts totaling $ 0.2 million ( 2015 — $ 0.6 million) attributable to transactions between the Company and other parties involved in the production of the films have been included in cost and expenses applicable to revenues- services. |
Condensed Consolidated Statem17
Condensed Consolidated Statements of Cash Flows Supplemental Information | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Consolidated Statements of Cash Flows Supplemental Information [Abstract] | |
Condensed Consolidated Statements of Cash Flows Supplemental Information | 10. Condensed Consolidated Statements of Cash Flows Supplemental Information Changes in other non-cash operating assets and liabilities are comprised of the following: Three Months Ended March 31, 2016 2015 Decrease (increase) in: Accounts receivable $ 6,070 $ 9,456 Financing receivables (1,748) (674) Inventories (5,994) (8,601) Prepaid expenses (2,345) (2,080) Commissions and other deferred selling expenses 34 (357) Insurance recoveries 132 (22) Other assets (441) (873) Increase (decrease) in: Accounts payable (2,470) 8,628 Accrued and other liabilities (12,986) (22,407) Deferred revenue (2,998) 7,125 $ (22,746) $ (9,805) Cash payments made on account of: Three Months Ended March 31, 2016 2015 Income taxes $ 12,051 $ 14,039 Interest $ 180 $ 61 Depreciation and amortization are comprised of the following: Three Months Ended March 31, 2016 2015 Film assets $ 3,356 $ 3,542 Property, plant and equipment Joint revenue sharing arrangements 3,738 3,251 Other property, plant and equipment 2,326 1,721 Other intangible assets 672 765 Other assets 205 188 Deferred financing costs 141 166 $ 10,438 $ 9,633 Write-downs, net of recoveries, are comprised of the following: Three Months Ended March 31, 2016 2015 Accounts receivable $ 126 $ 5 Inventories 184 33 Property, plant and equipment 329 90 Other intangible assets 9 - $ 648 $ 128 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes Income Taxes The Company’s effective tax rate differs from the statutory tax rate and varies from year to year primarily as a result of permanent differences, investment and other tax credits, the provision for income taxes at different rates in foreign and other provincial jurisdictions, enacted statutory tax rate increases or reductions in the year, changes due to foreign exchange, changes in the Company’s valuation allowance based on the Comp any’s recoverability assessments of deferred tax assets, and favorable or unfavorable resolution of various tax examinations. During the quarter ended March 31, 2016 , there was no change in t he Company’s estimates of the recoverability of its deferred tax assets based on an analysis of both positive and negative evidence including projected future earnings. As at March 31, 2016 , the Company had net deferred income tax assets after valuation allowance of $ 25.2 million (December 31, 2015 — $ 25.8 million), which consists of a gross deferred income tax a sset of $ 25.5 million (December 31, 2015 — $ 26.1 million), against which the Company is carrying a $ 0.3 million valuation allowance (December 31, 2015 — $ 0.3 million). Income Tax Effect on Other Comprehensive Income (Loss) The income tax (expense) benefit included in the Company’s other comprehensive income (loss) are related to the following it ems: Three Months Ended March 31, 2016 2015 Unrealized change in cash flow hedging instruments $ (332) $ (167) Realized change in cash flow hedging instruments upon settlement (574) 795 Amortization of actuarial loss on postretirement benefit plan (5) - Foreign currency translation adjustments - 16 $ (911) $ 644 |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2016 | |
Capital Stock [Abstract] | |
Capital Stock | 12. Capital Stock Stock-Based Compensation The compensation costs recorded in the condensed consolidated statement of operations for the Company’s stock-based compensation plans were $ 8.5 million for the three months ended March 31, 2016 ( 2015 —$ 5.6 million). As at March 31, 2016 , the Company has reserved a total of 6,789,210 (December 31, 2015 — 7,023,258 ) common shares for future iss uance under the Company’s Stock Option Plan (“SOP”) and the IMAX 2013 Long-Term Incentive Plan (“IMAX LTIP”). Of the common shares reserved for issuance, there are options in respect of 5,083,377 common shares and restricted share units (“RSUs”) in respect of 1,131,831 common shares outstanding at March 31, 2016 . At March 31, 2016 , options in respect of 3,507,573 common shares were vested and exercisable. Stock Option Plan The Company recorded an expense of $ 4.9 million for the three months ended March 31, 2016 ( 2015 — $ 3.9 million) related to stock option grants issued to employe es and directors in the IMAX LTIP and SOP plans. An income tax benefit is recorded in the condensed consolidated statements of operations of $ 1.3 million for these costs. The weighted average fair value of all stock options gr anted to employees and directors for the three months ended March 31, 2016 at the grant date was $ 8.55 per share ( 2015 — $ 8.07 per share). The following assumptions were used to estimate the average fair value of the stock options: Three Months Ended March 31, 2016 2015 Average risk-free interest rate 1.72% 1.97% Expected option life (in years) 4.79 - 4.88 3.55 - 5.76 Expected volatility 30% 30% Annual termination probability 0% - 8.08% 0% - 9.50% Dividend yield 0% 0% Stock options to Non-Employees There were no common share options issued to non-employees during the three months ended March 31, 2016 and 2015 . As at March 31, 2016 , non-employee stock options outstanding amounted to 38,750 stock options ( 2015 — 22,500 ) with a weighted average exercis e price of $ 26.79 per share ( 2015 — $ 24.61 per share ). 26,325 stock options ( 2015 — 7,100 ) were exercisable with an average weighted exercise price of $ 26.99 per share ( 2015 — $ 22.62 per share ) and the vested stock options have an aggregate intrinsic value of $ 0.1 million ( 2015 — $ 0.1 million). For the three months ended March 31, 2016 , the Company recorded a recovery of less than $0.1 million ( 2015 — expense of less than $0.1 million) to cost and expenses related to revenues – services and selling, general and administrative expenses related to the non-employee stock options. Included in accrued liabilities is an accrual of less than $0.1 million for non-employee stock options (December 31, 2015 — less than $0.1 million). China Long Term Incentive Plan (“China LTIP”) The China LTIP was a dopted by IMAX China in October 2012. Each stock option or cash settled share-based payment (“CSSBP”) issued under the China LTIP represents an opportunity to participate economically in the future growth and value creation of IMAX China Holding, Inc. (“I MAX China”), a subsidiary of the Company. The China LTIP options (“China Options”) and CSSBPs issued by IMAX China operate in tandem with options granted to certain employees of IMAX China under the Company’s SOP and IMAX LTIP (“Tandem Options”). During 2 015, no Tandem Options were granted in conjunction with China Options or CSSBPs. Immediately prior to the initial public offering of IMAX China on October 8, 2015, there were 186,446 outstanding and unvested Tandem Options issued under the China LTIP with a weighted average exercise price of $23.70 per share. The Tandem Options had a maximum contractual life of 7 years. The total fair value of the Tandem Options granted with respect to the China LTIP was $1.9 million. The Company was recognizing this expens e over a 5 year period. Pursuant to their terms, upon the occurrence of a qualified initial public offering or upon a change in control on or prior to the fifth anniversary of the grant date, the 186,446 Tandem Options issued would forfeit immediately and the related charge would be reversed. IMAX China completed an initial public offering on October 8, 2015. As a result, the 186,446 Tandem Options with an average price of $23.70 per share were forfeited immediately. The Company recorded a recovery of $0.6 million in 2015 related to the forfeiture of Tandem Options issued under the China LTIP. During the three months ended March 31, 2015, the Company recorded an expense of $0.1 million related to the Tandem Options. The Company subsequently recognized an i mmediate charge related to the vesting of China Options and certain CSSBPs for China employees. The total fair value of the China Options and CSSBP awards granted with respect to the China LTIP was $3.9 million and $2.1 million, respectively. During the fo urth quarter of 2015, a charge of $2.1 million and $1.4 million was recorded relating to the China Options and CSSBPs, respectively. The remaining charge will be recognized over the related requisite period. The CSSBPs represent the right to receive cash p ayments in an amount equal to a certain percentage of the excess of the total equity value of IMAX China based on the per share price in the initial public offering over the strike price of the CSSBPs. The CSSBPs were issued in conjunction with the China L TIP, with similar terms and conditions as the China Options. The CSSBP awards are accounted as liability awards, however the fair value of the liability is fixed at the time of the initial public offering. During the fourth quarter of 2015, a portion of th e CSSBPs vested and were settled in cash for $1.0 million. During the three months ended March 31, 2016, the Company recorded an expense of $0.2 million and $0.1 million related to the China Options and CSSBPs, respectively. The liability recognized wit h respect to the CSSBPs at March 31, 2016 is $0.5 million (December 31, 2015 — $0.4 million) . Stock Option Summary The following table summarizes certain information in respect of option activity under the SOP and IMAX LTIP for the three month periods end ed March 31 : Weighted Average Exercise Number of Shares Price Per Share 2016 2015 2016 2015 Options outstanding, beginning of period 4,805,244 5,925,660 $ 27.03 $ 24.24 Granted 323,925 871,431 31.85 31.56 Exercised (43,750) (591,558) 16.91 19.28 Forfeited (2,042) - 31.85 - Options outstanding, end of period 5,083,377 6,205,533 27.42 25.74 Op tions exercisable, end of period 3,507,573 3,496,050 26.52 23.88 T he Company did not cancel any stock options from its SOP or IMAX LTIP surrendered by Company employees during the three months ended March 31, 2016 and 2015 . As at March 31, 2016 , 4,952,508 options were fully vested or are expected to vest with a weighted average exerc ise price of $ 27.35 , aggregate intrinsic value of $ 20.6 million and weighted average remaining contractual life of 4.2 years. As at March 31, 2016 , options that are exercisable have an intrinsic value of $ 17.1 million and a weighted average remaini ng contractual life of 3.6 years. The intrinsic value of options exercised in the three months ended March 31, 2016 wa s $ 0.6 million ( 2015 — $ 9.1 million). Restricted Share Units RSUs have been granted to employees, consultants and directors under the IMAX LTIP. Each RSU represents a contingent right to receive one common share and is the economic equivalent of one common share. The grant date fair value of each RSU is equal to the share price of the Company’s stock at the grant date. The Company recorded an expense of $ 3.3 million for the three month period ended March 31, 2016 ( 2015 — $ 1.5 million), related to R SU grants issued to employees and directors in the plan. The annual termination probability assumed for the three months ended March 31, 2016 , ranged from 0% to 8.75%. In addition, the Compan y recorded an expense of $nil for the three months ended March 31, 2016 ( 2015 — less than $0.1 million), related to RSU grants issued to certain advisors and strategic partners of the Company. During the three months ended March 31, 2016 , in connection with the vesting of RSUs, t he Company settled 190,298 ( 2015 — 117,793) common shares to IMAX LTIP participants, of which 5,563 ( 2015 — 6,433) common shares, net of shares withheld for tax withholdings of 3,508 (2015 — nil) were issued f rom treasury and 181,227 ( 2015 — 111,360) common shares were purchased in the open market by the IMAX LTIP trustee. Total stock-based compensation expense related to non-vested RSUs not yet recognized at March 31, 2016 and the weighted average period over which the awards are expected to be recognized is $ 29.4 million and 3.0 years, respectively ( 2015 — $ 19.3 million and 3.3 years, respectively). The Company’s actual tax benefits realized for the tax deductions rel ated to the vesting of RSUs was $ 1.9 million for the three months ended March 31, 2016 ( 2015 — $ 1.2 m illion). RSUs granted under the IMAX LTIP vest between immediately and four years from the grant date. Vesting of the RSUs is subject to continued employment or service with the Company. The following table summarizes certain information in respect of RSU activity under the IMAX LTIP for the three months ended March 31, 2016 : Number of Awards Weighted Average Grant Date Fair Value Per Share 2016 2015 2016 2015 RSUs outstanding, beginning of period 973,637 595,834 $ 32.27 $ 27.13 Granted 351,584 307,213 31.85 33.86 Vested and settled (190,298) (117,793) 29.47 27.03 Forfeited (3,092) - 32.43 - RSUs outstanding, end of period 1,131,831 785,254 32.61 29.77 Issuer Purchases of Equity Securities On June 16, 2014, the Company’s board of directors approved a new $150.0 million share repurchase program for shares of the Company’s common stock. Purchases under the program commenced during the third quarter of 2014. The share repurchase program expires on June 30, 2017. 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. On April 20,2016, the Company’s board of directors approved an incremental $50.0 million increase to the share rep urchase allowance, for an aggregate allowance of $200.0 million under the program. All other terms remain unchanged. During the three months ended March 31, 2016 , the Company repurchased 1,446,418 common shares at an average price of $ 30.82 per share. The retired shares were purchased for $ 44.6 m illion. The average carrying value of the stock retired was deducted from common stock and the remaining excess over the average carrying value of stock was charged to accumulated deficit. There were no shares repurchased during the three months ended March 31, 2015 . The total number of shares purchased during the three months ended March 31, 2016 does not include any shares purchased in the administration of employee share-based compensation plans (which amounted to 181,227 common shares at an average price of $32.28 per share) . Canadian Securities Law Matters The Company has received an exemption deci sion issued by the Ontario Securities Commission, dated April 1, 2016, for relief from the formal issuer bid requirements under Canadian securities laws. The exemption decision permits the Company to repurchase up to 10% of its outstanding common shares in any twelve-month period through the facilities of the New York Stock Exchange under repurchase programs that the Company may implement from time to time. The Canadian securities laws regulate an issuer’s ability to make repurchases of its own securities. The Company sought the exemption so that it can make repurchases under its repurchase programs in excess of the maximum allowable in reliance on the existing “other published markets” exemption from the formal issuer bid requirements available under Cana dian securities laws. The “other published markets” exemption caps the Company’s ability to repurchase its securities through the facilities of the NYSE at 5% of the issuer’s outstanding securities during any 12-month period. The conditions of the exempt ion decision are as follows: (i) any repurchases made in reliance on the exemption decision must be permitted under, and part of repurchase programs established and conducted in accordance with, U.S. securities laws and NYSE rules, (ii) the aggregate numbe r of common shares acquired in reliance on the exemption decision by the Company and any person or company acting jointly or in concert with the Company within any 12 months does not exceed 10% of the outstanding common shares at the beginning of the 12-mo nth period, (iii) the common shares are not listed and posted for trading on an exchange in Canada, (iv) the exemption decision applies only to the acquisition of common shares by the Company within 36 months of the date of the decision, and (v) prior to p urchasing common shares in reliance on the exemption decision, the Company discloses the terms of the exemption decision and the conditions applicable thereto in a press release that is issued on SEDAR and includes such language as part of the news release required to be issued in accordance with the “other published markets exemption” in respect of any repurchase program that may be implemented by the Company. Income Per Share Reconciliations of the numerator and denominator of the basic and diluted per -share computations are comprised of the following: Three Months Ended March 31, 2016 2015 Net income attributable to common shareholders $ 9,527 $ 391 Less: Accretion charges associated with redeemable common stock - (222) Net income applicable to common shareholders $ 9,527 $ 169 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 69,673 68,988 Weighted average number of shares (repurchased) issued during the period (294) 222 Weighted average number of shares used in computing basic income per share 69,379 69,210 Assumed exercise of stock options and RSUs, net of shares assumed repurchased 741 1,466 Weighted average number of shares used in computing diluted income per share 70,120 70,676 The calculation of diluted earnings per share excludes 3,245,033 shares that are issuable upon the vesting of 615,028 RSUs and the exercise of 2,630,005 stock options for the three months ended March 31, 2016 , as the impact would be antidilutive. The calculation of diluted earnings per share excludes 2,317,669 shares that are issuable upon the vesting of 296,218 RSUs and 2,021,451 the exercise of stock options for the three months ended March 31, 2015 , as the impact would be antidilutive. Shareholder’s Equity Attributable to Common Shareholders The following summarizes the movement of Shareholders’ Equity attributable to common shareholders for the three months ended March 31, 2016 : Balance as at December 31, 2015 $ 623,891 Net income attributable to common shareholders 9,527 Adjustments to capital stock: Cash received from the issuance of common shares 740 Issuance of common shares for vested RSUs 164 Fair value of stock options exercised at the grant date 341 Average carrying value of repurchased and retired common shares (9,307) Adjustments to other equity: Employee stock options granted 5,179 Non-employee stock options granted and vested 30 Fair value of stock options exercised at the grant date (341) RSUs granted 3,427 RSUs vested (6,118) Utilization of excess tax benefits from vested RSUs 124 Adjustments to accumulated deficit: Common shares repurchased and retired (35,311) Adjustments to accumulated other comprehensive income: Unrealized net gain from cash flow hedging instruments 2,207 Realization of cash flow hedging net loss upon settlement 1,277 Foreign currency translation adjustments 1,121 Amortization of actuarial loss on postretirement benefit plan 17 Tax effect of movement in other comprehensive income (911) Balance as at March 31, 2016 $ 596,057 |
Segmented Information
Segmented Information | 3 Months Ended |
Mar. 31, 2016 | |
Segmented Information [Abstract] | |
Segmented Information | 13. Segmented Information The Company has seven reportable segments identified by category of product sold or service provided: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; and other. The IMAX systems segment includes the design, manufacture, sale or lease of IMAX theater projection system equipment. The theater system maintenance segment includes the maintenan ce of IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment includes the provision of IMAX theater projection system equipment to an exhibitor in exchange for a share of the box-office and conc ession revenues. The film production and IMAX DMR segment includes the production of films and the performance of film re-mastering services. The film distribution segment includes the distribution of films for which the Company has distribution rights. Th e film post-production segment provides film post-production and film print services. The Company refers to all theaters using the IMAX theater system as “IMAX theaters”. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. The accounting policies of the segments are the same as those described in note 2 to the audited consolidated financial statements included in the Company’s 2015 Form 10-K. Management, i ncluding the Company’s Chief Executive Officer (“CEO”) who is the Company’s Chief Operating Decision Maker (as defined in the Segment Reporting Topic of the FASB ASC), assesses segment performance based on segment revenues, gross margins and film performan ce. Selling, general and administrative expenses, research and development costs, amortization of intangibles, receivables provisions (recoveries), write-downs net of recoveries, interest income, interest expense and tax (provision) recovery are not alloca ted to the segments. Transactions between the film production and IMAX DMR segment and the film post-production segment are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. Transac tions among the other segments are not significant. Three Months Ended March 31, 2016 2015 Revenue (1) IMAX theater systems IMAX systems $ 21,860 $ 12,114 Theater system maintenance 9,826 8,850 Joint revenue sharing arrangements 23,386 15,868 55,072 36,832 Films Production and IMAX DMR 29,805 17,676 Distribution 363 1,388 Post-production 2,407 2,890 32,575 21,954 Other 4,481 3,425 Total $ 92,128 $ 62,211 Gross margin IMAX theater systems IMAX systems (2) $ 7,834 $ 8,185 Theater system maintenance 3,439 3,281 Joint revenue sharing arrangements (2) 17,992 10,617 29,265 22,083 Films Production and IMAX DMR (2) 22,823 13,225 Distribution (2) (679) 135 Post-production 1,249 578 23,393 13,938 Other (482) (40) Total $ 52,176 $ 35,981 ___________ (1) The Company’s largest customer represent ed 16.0 % of total revenues for the three months ended March 31, 2016 ( 2015 — 17.1 %). (2) IMAX systems include marketing and commis sion costs of $ 0.5 million for the three months ended March 31, 2016 ( 2015 — $ 0.3 million). Joint revenue shar ing arrangements segment margins include advertising, marketing and commission costs of $ 0.1 million for the three months ended March 31, 2016 ( 2015 — $ 0.1 million). Production and DMR segment margins include marketing costs of $ 2.3 million for the three months ended March 31, 2016 ( 2015 — $ 1.3 million). Distribution segment margins include marketing expense of $ 0.7 million for the three months ended March 31, 2016 ( 2015 — recovery of $ 0.1 million). Geographic Information Revenue by geographic area is based on the location of the customer. Revenue related to IMAX DMR is pres ented based upon the geographic location of the theaters that exhibit the re-mastered films. IMAX DMR revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the theater. Three Months Ended March 31, 2016 2015 Revenue United States $ 35,544 $ 25,491 Canada 7,077 1,883 Greater China 24,939 17,796 Western Europe 11,486 5,166 Asia (excluding Greater China) 5,559 5,776 Latin America 3,527 2,435 Russia & the CIS 1,692 1,941 Rest of the World 2,304 1,723 Total $ 92,128 $ 62,211 No single country in the Rest of the World, Western Europe, Latin America and Asia (excluding Greater China) classifications comprise s more than 10% of the total revenue. |
Employees Pension and Postretir
Employees Pension and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Employees Pension and Postretirement Benefits [Abstract] | |
Employees Pension and Postretirement Benefits | 14. Employee's Pension and Postretirement Benefits Defined Benefit Plan The Company has an unfunded U.S. defined benefit pension plan (the “SERP”) covering Richard L. Gelfond, CEO of the Company. The following table provides disclosure of the pension obligation for the SERP: As at As at March 31, December 31, 2016 2015 Projected benefit obligation: Obligation, beginning of year $ 19,478 $ 19,405 Interest cost 65 253 Actuarial gain - (180) Obligation, end of year and unfunded status $ 19,543 $ 19,478 The following table provides disclosure of pension expense for the SERP: Three Months Ended March 31, 2016 2015 Interest cost $ 65 $ 63 Pension expense $ 65 $ 63 No contributions are expected to be made for the SERP during the remainder of 2016 . The Company expects interest costs of $ 0.2 million to be recognized as a component of net periodic benefit cost during t he remainder of 2016 . The accumulated benefit obligation for the SERP was $ 19.5 million at March 31, 2016 (December 31, 2015 — $ 19.5 million). The following benefit payments are expected to be made as per the current SERP assumptions and the terms of the SERP in each of the next 5 years, and in the aggregate : 2016 (nine months remaining) $ - 2017 19,871 2018 - 2019 - 2020 - Thereafter - $ 19,871 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 months ended March 31, 2016 , the Company contributed and expensed an aggregate of $ 0.4 million ( 2015 — $ 0.3 million ) to its Canadian defined contribution plan and an aggregate of $ 0.2 million ( 2015 — $ 0.1 million ) to its defined contribution employee plan und er Section 401(k) of the U.S. Internal Revenue Code. 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 supplement coverage as selected by Messrs. Gelfond and Wechsler. The postretirement benefits o bligation as at March 31, 2016 is $ 0.8 million (December 31, 2015 — $ 0.8 million). Th e Company has expensed less than $ 0.1 million for the three months ended March 31, 2016 ( 2015 — less than $0.1 million). The following benefit payments are expected to be made as per the current plan assumptions in each of the next 5 years: 2016 (nine months remaining) $ 34 2017 54 2018 60 2019 66 2020 33 Thereafter 524 Total $ 771 Postretirement Benefits – Canadian Employees The Company has an unfunded postretirement plan for its Canadian employees upon meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfa re benefits. The postretirement benefits obligation as at March 31, 2016 is $ 1.9 million (December 31, 2015 — $ 1.8 million). The Company has expensed less than $ 0.1 million for the three months ended March 31, 2016 ( 2015 — less than $ 0.1 million). The following benefit payments are expected to be made as per the current plan assumptions in each of the next 5 years: 2016 (nine months remaining) $ 97 2017 101 2018 109 2019 116 2020 118 Thereafter 1,350 Total $ 1,891 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments | 15. Financial Instruments Financial Instruments The Company maintains cash with various major financial institutions. The Company’s cash is invested with highly rated financial institutions. The Company’s accounts receivables and financing receivables are subject to credit risk. The Company’s accounts receivable and financing receivables are concentrated with the theater exhibition industry and film entertainment industry. To minimize the Company’s credit r isk, the Company retains title to underlying theater systems leased, performs initial and ongoing credit evaluations of its customers and makes ongoing provisions for its estimate of potentially uncollectible amounts. The Company believes it has adequately provided for related exposures surrounding receivables and contractual commitments. Fair Value Measurements The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities due within one yea r approximate fair values due to the short-term maturity of these instruments. The Company’s other financial instruments are comprised of the following: As at March 31, 2016 As at December 31, 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Cash and cash equivalents $ 259,752 $ 259,752 $ 317,449 $ 317,449 Net financed sales receivable $ 109,744 $ 112,892 $ 106,286 $ 108,184 Net investment in sales-type leases $ 9,905 $ 10,264 $ 10,945 $ 11,154 Available-for-sale investment $ 1,000 $ 1,003 $ 1,000 $ 997 Foreign exchange contracts — designated forwards $ (939) $ (939) $ (4,423) $ (4,423) Borrowings under the Playa Vista Loan $ (29,167) $ (29,167) $ (29,667) $ (29,667) Cash and cash equivalents are comprised of cash and interest-bearing investments with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value (Level 1 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 and December 31, 2015 , respe ctively. The estimated fair values of the net financed sales receivable and net investment in sales-type leases are estimated based on discounting future cash flows at currently available interest rates with comparable terms (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 and December 31, 2015 , respectively. The fair value of the Company’s available-f or-sale investment is determined using quoted prices in active markets (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 and December 31, 2015 , respectively. The fair value of foreign currency derivatives is determined using quoted prices in active markets (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as a t March 31, 2016 and December 31, 2015 , respectively. These identical instruments are traded on a closed exchange. The carrying value of borrowings under the Playa Vis ta Loan approximates fair value as the interest rates offered under the Playa Vista Loan are close to March 31, 2016 market rates for the Company for debt of the same remaining maturities (Le vel 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 . There were no significant transfers between Level 1 and Level 2 during the t hree months ended March 31, 2016 or 2015 . When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significanc e of the unobservable inputs to the overall fair value measurement. There were no transfers in or out of the Company’s level 3 assets during the three months ended March 31, 2016 . Finan cing Receivables The Company’s net investment in leases and its net financed sale receivables are subject to the disclosure requirements of ASC 310 “Receivables”. Due to differing risk profiles of its net investment in leases and its net financed sales r eceivables, the Company views its net investment in leases and its net financed sale receivables as separate classes of financing receivables. The Company does not aggregate financing receivables to assess impairment. The Company monitors the credit quali ty of each customer on a frequent basis through collections and aging analyses. The Company also holds meetings monthly in order to identify credit concerns and whether a change in credit quality classification is required for the customer. A customer may improve in their credit quality classification once a substantial payment is made on overdue balances or the customer has agreed to a payment plan with the Company and payments have commenced in accordance to the payment plan. The change in credit quality indicator is dependent upon management approval. The Company classifies its customers into four categories to indicate the credit quality worthiness of its financing receivables for internal purposes only: Good standing — Theater continues to be in good standing with the Company as the client’s payments and reporting are up-to-date. Credit Watch — Theater operator has begun to demonstrate a delay in payments, and has been placed on the Company's credit watch list for continued monitoring, but active comm unication continues with the Company. Depending on the size of outstanding balance, length of time in arrears and other factors, transactions may need to be approved by management. These financing receivables are considered to be in better condition than t hose receivables related to theaters in the "Pre-approved transactions" category, but not in as good of condition as those receivables in "Good standing." Pre-approved transactions only — Theater operator is demonstrating a delay in payments with little or no communication with the Company. All service or shipments to the theater must be reviewed and approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "All transact ions suspended" category, but not in as good of condition as those receivables in "Credit Watch." Depending on the individual facts and circumstances of each customer, finance income recognition may be suspended if management believes the receivable to be impaired. All transactions suspended — Theater is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater is classified as “All transactions suspended” the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. The following table discloses the recorded investment in financing receivables by credit quality indicator: As at March 31, 2016 As at December 31, 2015 Minimum Financed Minimum Financed Lease Sales Lease Sales Payments Receivables Total Payments Receivables Total In good standing $ 9,208 $ 108,784 $ 117,992 $ 10,252 $ 105,352 $ 115,604 Pre-approved transactions - 858 858 - 757 757 Transactions suspended 1,369 745 2,114 1,365 745 2,110 $ 10,577 $ 110,387 $ 120,964 $ 11,617 $ 106,854 $ 118,471 While recognition of finance income is suspended, payments received by a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a recovery of provision taken on the billed amount, if applicable, is recorded to the ex tent 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. The Company’s investment in financing receivables on nonaccrua l status is as follows: As at March 31, 2016 As at December 31, 2015 Recorded Related Recorded Related Investment Allowance Investment Allowance Net investment in leases $ 1,369 $ (672) $ 1,365 $ (672) Net financed sales receivables 745 (643) 745 (568) Total $ 2,114 $ (1,315) $ 2,110 $ (1,240) The Company considers financing receivables with aging between 60-89 days as indications of theaters with potential collection concerns. The Company will begin to focus its review on these financing receivables and increase its discussions internally and with the theater regarding payment status. Once a theater’s aging exceeds 90 days, the Company’s policy is to review and assess collectibility on the theat er’s past due accounts. Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of furthe r information or supporting documentation to the customer. The Company’s aged financing receivables are as follows: As at March 31, 2016 Related Recorded Accrued Billed Unbilled Total Investment and Financing Recorded Recorded Related Net of Current 30-89 Days 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 166 $ 62 $ 748 $ 976 $ 9,601 $ 10,577 $ (672) $ 9,905 Net financed sales receivables 1,858 633 2,650 5,141 105,246 110,387 (643) 109,744 Total $ 2,024 $ 695 $ 3,398 $ 6,117 $ 114,847 $ 120,964 $ (1,315) $ 119,649 As at December 31, 2015 Related Recorded Accrued Billed Unbilled Total Investment and Financing Recorded Recorded Related Net of Current 30-89 Days 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 840 $ 177 $ 446 $ 1,463 $ 10,154 $ 11,617 $ (672) $ 10,945 Net financed sales receivables 908 1,013 1,177 3,098 103,756 106,854 (568) 106,286 Total $ 1,748 $ 1,190 $ 1,623 $ 4,561 $ 113,910 $ 118,471 $ (1,240) $ 117,231 The Company’s recorded investment in past due financing receivables for which the Company continues to accrue finance income is as foll ows: As at March 31, 2016 Related Recorded Accrued Billed Unbilled Investment and Financing Recorded Related Past Due Current 30-89 Days 90+ Days Receivables Investment Allowance and Accruing Net investment in leases $ 56 $ 148 $ 773 $ 977 $ 1,110 $ - $ 2,087 Net financed sales receivables 71 165 2,093 2,329 10,130 - 12,459 Total $ 127 $ 313 $ 2,866 $ 3,306 $ 11,240 $ - $ 14,546 As at December 31, 2015 Related Recorded Accrued Billed Unbilled Investment and Financing Recorded Related Past Due Current 30-89 Days 90+ Days Receivables Investment Allowance and Accruing Net investment in leases $ 41 $ 47 $ 205 $ 293 $ 1,076 $ - $ 1,369 Net financed sales receivables 129 224 839 1,192 10,795 - 11,987 Total $ 170 $ 271 $ 1,044 $ 1,485 $ 11,871 $ - $ 13,356 The Company considers financing receivables to be impaired when it believes it to be probable that it will not recover the full amount of principal or interest owing under the arrangement. The Company uses its knowledge of the industry and economic trends, as well as its prior experiences to determine the amount recoverable for impaired financing receivables. The following table discloses information regarding the Company’s impaired financing receivables: Impaired Financing Receivable s For the Three Months Ended March 31, 2016 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allowance: Net f inanced sales receivables $ 748 $ 414 $ (643) $ 748 $ - Recorded investment for which there is no related allowance: Net f inanced sales receivables - - - - - Total recorded investment in impaired loans: Net financed sales receivables $ 748 $ 414 $ (643) $ 748 $ - Impaired Financing Receivables For the Three Months Ended March 31, 2015 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allow ance: Net f inanced sales receivables $ 525 $ 36 $ (494) $ 525 $ - Recorded investment for which there is no related allowance: Net f inanced sales receivables - - - - - Total recorded investment in impaired loans: Net financed sales receivables $ 525 $ 36 $ (494) $ 525 $ - The Company’s activity in the allowance for credit losses for the period and the Company’s record ed investment in financing receivables are as follows: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net Investment Net Financed Net Investment Net Financed in Leases Sales Receivables in Leases Sales Receivables Allowance for credit losses: Beginning balance $ 672 $ 568 $ 972 $ 494 Charge-offs - - - - Recoveries - - - - Provision - 75 - - Ending balance $ 672 $ 643 $ 972 $ 494 Ending balance: individually evaluated for impairment $ 672 $ 643 $ 972 $ 494 Financing receivables: Ending balance: individually evaluated for impairment $ 10,577 $ 110,387 $ 10,744 $ 95,950 Foreign Exchange Risk Management The Company is exposed to market risk from changes in foreign currency rates. A majority portion of the Company’s revenues is denominated in U.S. dollars while a substantial portion of its costs and expenses is denominated in Canadian dollars. A portion of the net U.S. dollar cash flows of the Company is periodically converted to Canadian dollars to fund Canadian dollar expenses through the spot market. In China and Japan the Company has ongoing operating expenses related to its operations in Chinese Renminbi and Japanese yen, respectively. Net cash flows are converted to and from U.S. dollars through the spot market. The Company also has cash receipts under leases denominated in Chinese Renminbi, Japanese yen, Canadian dollars and Euros which are converted to U.S. dollars through the spot market. The Company’s policy is to not use any financial instruments for trading or other spe culative 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 f or hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continue to meet hedge effectiveness tests at March 31, 2016 (the “Foreign Currency Hedges”), wit h settlement dates throughout 2016 and 2017 . Foreign currency derivatives are recognized and measured in the balance sheet at fair value. Changes in the fair value (gains or losses) are recognized in the condensed consolidated statem ent of operations except for derivatives designated and qualifying as foreign currency hedging instruments. For foreign currency hedging instruments, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comp rehensive income and reclassified to the condensed consolidated statement of operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the condensed consolidated statement of operations. The Company currently d oes not hold any derivatives which are not designated as hedging instruments and therefore no gain or loss pertaining to an ineffective portion has been recognized. The following tabular disclosures reflect the impact that derivative instruments and hedgi ng activities have on the Company’s condensed consolidated financial statements: Notional value of foreign exchange contracts: March 31, December 31, 2016 2015 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 34,016 $ 30,710 Fair value of derivatives in foreign exchange contracts: March 31, December 31, Balance Sheet Location 2016 2015 Derivatives designated as hedging instruments: Other assets $ 843 $ - Foreign exchange contracts — Forwards Accrued and other liabilities (1,782) (4,423) $ (939) $ (4,423) Derivatives in Foreign Currency Hedging relationships for the three months ended March 31: 2016 2015 Foreign exchange contracts — Forwards Derivative Gain (Loss) Recognized in OCI (Effective Portion) $ 2,207 $ (3,026) Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) 2016 2015 Forei gn exchange contracts — Forwards Selling, general and administrative expenses $ (1,277) $ (635) The Company's estimated net amount of the existing gains as at March 31, 2016 is $1.8 million, which is expected to be reclassified to earnings within the next twelve months Investments in New Business Ventures The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323 or FASB ASC 320, as appropriate. As at March 31, 2016 , the equity method of accounting is being utilized for an investment with a total carrying value of $ 0.5 million (December 31, 2015 — $ 1.0 million) . For the three months ended March 31, 2016 , gross revenues, cost of revenue and net loss for the Company’s investments were $ 0.4 million , $ 2.2 million and $ 1.8 million, respectively ( 2015 — $ nil , $ 1.7 million and $ 1.7 m illion, respectively). The Company has determined it is not the primary beneficiary of this VIE, and therefore this entity has not been consolidated. In addition, the Company has an investment in preferred stock of another business venture of $ 1.5 million which meets the criteria for classification as a debt security under the FASB ASC 320 and is recorded at a fair value of $ nil at March 31, 2016 (December 31, 2015 — $ nil ). This investment was classified as an available-for-sale investment. Furthermore, the Company has an investment of $ 1.0 million (December 31, 2015 — $ 1.0 million) in the shares of an exchange traded fund. This investment is also classified as an available-for-sale investment. The Company has a n investment of $ 2.5 million in the preferred shares of an enterprise which meet the criteria for classification as an equity security under FASB ASC 325. As at March 31, 2016 , the carrying value of the Company’s investment in preferred shares is $ 0.2 million (December 31, 2015 — $ 0.2 million). The total carryi ng value of investments in new business ventures at March 31, 2016 is $ 1.7 million (December 31, 2015 — $ 2.2 m illion) and is recorded in Other assets. |
Non-Controlling Interests
Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2016 | |
Temporary Equity Disclosure [Abstract] | |
Non-Controlling Interests [Text Block] | 16. Non-Controlling Interests IMAX China Non-Controlling Interest On April 8, 2014, the Company announced sale and issuance of 20% of the shares of IMAX China to entities owned and controlled by CMC Capital Partners (“CMC”), an investment fund that is focused on media and entertainment, and FountainVest Partners (“FountainVest”), a China-focused private equity firm. The sale price for the interest was $80.0 million, and was paid by the investors in two equal installments on April 8, 2014 and February 10, 2015. On October 8, 2015, IMAX China completed an initial public offering of its ordinary shares on the Main Board of the Hong Kong Stock Exchange Limited (the “IMAX China IPO”). Following the IMAX China IPO, the Company continues to indirectly own approximately 68.5% of IMAX China, which remains a consolidated subsidiary of the Company. The following summarizes the movement of the non-controlling interest in shareholders’ equity, in the Company’s subsidiary for the three months ended March 31, 2016 : Balance as at December 31, 2015 $ 49,959 Net income 2,694 Other comprehensive loss (699) Balance as at March 31, 2016 $ 51,954 Other Non-Controlling Interest In 2014, the Company announced the creation of the Film Fund to co-finance a portfolio of 10 original large-format films. The Film Fund, which is intended to be capitalized with up to $ 50.0 million, will finance an ongoing supply of original films that the Company believes will be more exciting and compelling than traditional documentaries. The initial investment in the Film Fund was committed to by a third party in the amount of $ 25.0 million, with the possibility of contributing additional funds. The Company, which will contribute $ 9.0 million to the Film Fund over five years starting in 2014, anticipates the Film Fund will be self-perpetuating, with a portion of box office proceeds reinvested into the Film Fund to generate a continuous, steady flow of high-quality documentary content. To date, the Film Fund invested $7.7 million toward th e 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. Balance as at December 31, 2015 $ 3,307 Net loss (44) Balance as at March 31, 2016 $ 3,263 |
Prior Periods' Figures
Prior Periods' Figures | 3 Months Ended |
Mar. 31, 2016 | |
Prior Period Adjustment [Abstract] | |
Prior Periods' Figures | 17. Prior Period's Figures Certain of the prior period’s figures have been reclassified to conform to the current period’s presentation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | |
Basis of Accounting | All intercompany accounts and transactions, including all unrealized intercompany profits on transactions with equity-acco unted investees, have been eliminated. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the consolidated financial statements included in the Company’s 2015 Annual Report on Form 10-K for the year ended December 31, 2015 (“the 2015 Form 10-K”) which should b e consulted for a summary of the significant accounting policies utilized by the Company. These interim financial statements are prepared following accounting policies consistent with the Company’s financial statements for the year ended December 31, 2015 , except as noted below. |
Variable interest entities | The condensed consolidated financial statements inclu de the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which the Company has identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. The nature of the Company’s busine ss is such that the results of operations for the interim periods presented are not necessarily indicative of results to be expected for the fiscal year. In the opinion of management, the information contained herein reflects all normal and recurring adjus tments necessary to make the results of operations for the interim periods a fair statement of such operations. The Company has evaluated its various variable interests to determine whether they are VIEs as required by the Consolidation Topic of the Finan cial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”). The Company has 11 film production companies that are VIEs. For five of the Company’s film production companies, the Company has determined that it is th e primary beneficiary of these entities as the Company has the power to direct the activities of the respective VIE that most significantly impact the respective VIE’s economic performance and has the obligation to absorb losses of the VIE that could poten tially be significant to the respective VIE or the right to receive benefits from the respective VIE that could potentially be significant to the respective VIE. These consolidated production companies have total assets of $ 7.1 million (December 31, 2015 — $ 7.2 million) and total liabilities of $ 3.2 million as at March 31, 2016 (December 31, 2015 — $ 4.1 million). The majority of these consolidated assets are held by the IMAX Original Film Fund (the “Film Fund”) as described in note 16(b). For the other six film production companies which are VIEs, the Company did not consolidate these film entities since it does not have the power to direct activities and does not absorb the majority of the expected losses or expected residual returns. The Company equity ac counts for these entities. As at March 31, 2016 , these six VIEs have total assets of $ 0.4 million (December 31, 2015 — $ 0.4 million) and total liabilities of $ 0.4 million (December 31, 2015 — $ 0.4 million). Earnings of the investees included in the Company’s condense d consolidated statement of operations amounted to $nil for the three months ended March 31, 2016 ( 2015 — $nil). The carrying value of these investments in VIEs that are not consolidated is $nil at March 31, 2016 (December 31, 2015 — $nil). A loss in value of an investment other than a t emporary decline is recognized as a charge to the condensed consolidated statement of operations. The Company’s exposure, which is determined based on the level of funding contributed by the Company and the development stage of the respective film, is $nil at March 31, 2016 (December 31, 2015 — $nil). |
Equity and Cost Method Investments Policy | The Company accounts for investments in new business ventures using t he guidance of the FASB ASC 323 “Investments – Equity Method and Joint Ventures” (“ASC 323”) or ASC 320 “Investments in Debt and Equity Securities” (“ASC 320”), as appropriate. |
New Accounting Pronouncements | In January 2015, the FASB issued ASU No. 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). Prior to the changes under ASU 2015-01, an entity was required to separately classify, present and disclose extraordinary events and transactions under the disclosure requirements of Subtopic 225-20, “Income Statement – Extraordinary and Unusual Items” (“Subtopic 225-20”). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items therefore such separate disclosure is no longer require d in the Income Statement of an entity. For public companies, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments can be applied prospectively or retrospectively. T he Company prospectively adopted the amendments under ASU 2015-01 on January 1, 2016. The adoption of the standard did not have an impact on the disclosures presented in the condensed consolidated statement of operations for the period ended March 31, 2016 and 2015. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (“ASU 2015-02”). ASU 2015-02, changes the analysis that a reporting entity must perform to determine whether it should con solidate certain types of legal entities such as limited partnerships and similar entities, and variable interest entities that have free arrangements and related party relationships. Furthermore, all legal entities are subject to re-evaluation under the revised consolidation model. The amendments also provide a scope exception from consolidation guidance for reporting entities with interest in legal entities that are required to comply with or operate in accordance with requirements that are similar to th ose in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. For public companies, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments can be applied retrospectively or using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. The Company adopted the amendments under ASU 2015-02 retrospectively on Janu ary 1, 2016. The adoption of the standard did not have an impact on the Company’s condensed consolidated financial statements as there was no change to the entities currently consolidated by the Company |
Debt policy | In April 2015, the FASB issued ASU No. 2015-03, “In terest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), and in August 2015 issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measuremen t of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). Under ASU 2015-03, debt issuance costs reported on the balance sheet will be reflected as a direct deduction from the related debt liability rather than as an asset. Whi le ASU 2015-03 addresses costs related to term debt, ASU 2015-15 provides clarification regarding costs to secure revolving lines of credit, which are, at the outset, not associated with an outstanding borrowing. ASU 2015-15 provides commentary that the U. S Securities and Exchange Commission staff would not object to an entity deferring and presenting costs associated with line-of-credit arrangements as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. For pu blic companies, the amendments apply to annual periods beginning on or after December 15, 2015, and interim periods within those years and are to be applied retrospectively. The Company adopted these standards on January 1, 2016. As at December 31, 2015, $ 0.4 million of unamortized debt issuance costs related to the Company’s loan to finance the construction of its Playa Vista facility were reclassified in the condensed consolidated balance sheet from Other assets to Bank indebtedness. The Company will con tinue to defer and present the debt issuance cost related to its senior secured revolving credit facility in Other assets and amortize it ratably over the term of the agreement |
Accounting Pronouncements Not Yet Adopted | In January 20 16, the FASB issued ASU No. 2016-01, “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The purpose of the amendment is intended to provide users of financial statements wit h more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. For public entities, the amendments in ASU 2016-01 are effective for interim and annual reporting periods beginning after December 15, 2017. T he Company is currently assessing the impact of ASU 2016-01 on its condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The purpose of the amendment is to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. New disclosures will include qualitative and quantitative requirements to provide additional information about the amounts recorded in the financial statements. Lessor accounting will remain largely unchanged from current guidance, however ASU 2016-02 will provide improvements that are intended to align lessor accounting with the lessee model and with updated revenue recognition guidance . For public entities, the amendments in ASU 2016-02 are effective for interim and annual reporting periods beginning after December 15, 2018. The Company is currently assessing the impact of ASU 2016-02 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”). The amendments in ASU 2016-05 apply to all reporting entities for wh ich there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815. The amendments clarify that a change in the counterparty to a derivative instrument that has been designated as the hedgi ng instrument under Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. For public entiti es, the amendments in ASU 2016-05 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-05 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting” (“ASU 2016-07”). The purpose of the amendment eliminates the requirement that when an investment quali fies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by step basis as if the equ ity method had been in effect during all previous periods that the investment had been held. For public entities, the amendments in ASU 2016-07 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is current ly assessing the impact of ASU 2016-07 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations” (“ASU 2016-08”). The purp ose of ASU 2016-08 is to clarify the implementation of guidance on principal versus agent considerations. For public entities, the amendments in ASU 2016-08 are effective for interim and annual reporting periods beginning after December 15, 2017. The Compa ny is currently assessing the impact of ASU 2016-08 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ” (“ASU 2016-09”). The amendment is to simplify several aspects of the accounting for share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of c ash flows. For public entities, the amendments in ASU 2016-09 are effective for interim and annual reporting periods beginning after December 15, 2016. The Company is currently assessing the impact of ASU 2016-09 on its condensed consolidated financial sta tements |
Commitments and Contingencies Policy | The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. In accordance with the Contingencies Topic of the FASB ASC, the Company will make a provision for a liability when it is both probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has adequate provisions for any su ch matters. The Company reviews these provisions in conjunction with any related provisions on assets related to the claims at least quarterly and adjusts these provisions to reflect the impacts of negotiations, settlements, rulings, advice of legal counse l and other pertinent information related to the case. Should developments in any of these matters outlined below cause a change in the Company’s determination as to an unfavorable outcome and result in the need to recognize a material provision, or, shoul d any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on the Company’s results of operations, cash flows, and financial position in the period or periods in which such a c hange in determination, settlement or judgment occurs. |
Legal Costs Policy | The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred. |
Commissions Expense Policy | The Company defers direct selling costs such as sales commissions and other amounts related to its sale and sales-type lease arrangements until the related revenue is recognized. |
Collaborative Arrangements Policy | In a joint revenue sharing arrangement, the Company receives a portion of a theater’s box-offic e and concession revenues, and in some cases a small upfront or initial payment, in exchange for placing a theater system at the theater operator’s venue. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the h ardware 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 revenu e sharing arrangements generally does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping term s and ending on the date the theater systems are delivered back to the Company. |
Film Costs Policy | In a typical IMAX DMR film arrangement, the Company will absorb its costs for the digital re-mastering and then recoup this cos t from a percentage of the net box-office receipts of the film, which in recent years has ranged from 10-15%. The Company does not typically hold distributi on rights or the copyright to these films. |
Films Revenue Recognition Policy | The accounting policy for the Company’s IMAX DMR arrangements is disclosed in note 2(m) of the Company’s 2015 Form 10-K. |
Segment Reporting Policy | The accounting policies of the segments are the same as those described in note 2 to the audited consolidated financial statements included in the Company’s 2015 Form 10-K. |
Fair Value of Financial Instruments Policy | Cash and cash equivalents are comprised of cash and interest-bearing investments with original maturity dates of 90 days or less. Cash and cash equivalents are recorded at cost, which approximates fair value (Level 1 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 and December 31, 2015 , respe ctively. The estimated fair values of the net financed sales receivable and net investment in sales-type leases are estimated based on discounting future cash flows at currently available interest rates with comparable terms (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 and December 31, 2015 , respectively. The fair value of the Company’s available-f or-sale investment is determined using quoted prices in active markets (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 and December 31, 2015 , respectively. The fair value of foreign currency derivatives is determined using quoted prices in active markets (Level 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as a t March 31, 2016 and December 31, 2015 , respectively. These identical instruments are traded on a closed exchange. The carrying value of borrowings under the Playa Vis ta Loan approximates fair value as the interest rates offered under the Playa Vista Loan are close to March 31, 2016 market rates for the Company for debt of the same remaining maturities (Le vel 2 input in accordance with the Fair Value Measurements Topic of the FASB ASC hierarchy) as at March 31, 2016 . |
Fair Value Transfer Policy | There were no significant transfers between Level 1 and Level 2 during the t hree months ended March 31, 2016 or 2015 . When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significanc e of the unobservable inputs to the overall fair value measurement. |
Credit Risk Policy | The Company classifies its customers into four categories to indicate the credit quality worthiness of its financing receivables for internal purposes only: Good standing — Theater continues to be in good standing with the Company as the client’s payments and reporting are up-to-date. Credit Watch — Theater operator has begun to demonstrate a delay in payments, and has been placed on the Company's credit watch list for continued monitoring, but active comm unication continues with the Company. Depending on the size of outstanding balance, length of time in arrears and other factors, transactions may need to be approved by management. These financing receivables are considered to be in better condition than t hose receivables related to theaters in the "Pre-approved transactions" category, but not in as good of condition as those receivables in "Good standing." Pre-approved transactions only — Theater operator is demonstrating a delay in payments with little or no communication with the Company. All service or shipments to the theater must be reviewed and approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "All transact ions suspended" category, but not in as good of condition as those receivables in "Credit Watch." Depending on the individual facts and circumstances of each customer, finance income recognition may be suspended if management believes the receivable to be impaired. All transactions suspended — Theater is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater is classified as “All transactions suspended” the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. |
Condition for Company's policy to review and assess collectability on theater's past due accounts | The Company considers financing receivables to be impaired when it believes it to be probable that it will not recover the full amount of principal or interest owing under the arrangement. The Company uses its knowledge of the industry and economic trends, as well as its prior experiences to determine the amount recoverable for impaired financing receivables. |
Derivatives policy | The Company is exposed to market risk from changes in foreign currency rates. A majority portion of the Company’s revenues is denominated in U.S. dollars while a substantial portion of its costs and expenses is denominated in Canadian dollars. A portion of the net U.S. dollar cash flows of the Company is periodically converted to Canadian dollars to fund Canadian dollar expenses through the spot market. In China and Japan the Company has ongoing operating expenses related to its operations in Chinese Renminbi and Japanese yen, respectively. Net cash flows are converted to and from U.S. dollars through the spot market. The Company also has cash receipts under leases denominated in Chinese Renminbi, Japanese yen, Canadian dollars and Euros which are converted to U.S. dollars through the spot market. The Company’s policy is to not use any financial instruments for trading or other spe culative 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 f or hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continue to meet hedge effectiveness tests at March 31, 2016 (the “Foreign Currency Hedges”), wit h settlement dates throughout 2016 and 2017 . Foreign currency derivatives are recognized and measured in the balance sheet at fair value. Changes in the fair value (gains or losses) are recognized in the condensed consolidated statem ent of operations except for derivatives designated and qualifying as foreign currency hedging instruments. For foreign currency hedging instruments, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comp rehensive income and reclassified to the condensed consolidated statement of operations when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the condensed consolidated statement of operations. The Company currently d oes not hold any derivatives which are not designated as hedging instruments and therefore no gain or loss pertaining to an ineffective portion has been recognized. |
ASU 2010-20 | The Company considers financing receivables with aging between 60-89 days as indications of theaters with potential collection concerns. The Company will begin to focus its review on these financing receivables and increase its discussions internally and with the theater regarding payment status. Once a theater’s aging exceeds 90 days, the Company’s policy is to review and assess collectibility on the theat er’s past due accounts. Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of furthe r information or supporting documentation to the customer. |
Financing Receivables (Tables)
Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financing Receivables [Abstract] | |
Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales | Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of theater systems are as follows: March 31, December 31, 2016 2015 Gross minimum lease payments receivable $ 12,738 $ 13,998 Unearned finance income (2,161) (2,381) Minimum lease payments receivable 10,577 11,617 Accumulated allowance for uncollectible amounts (672) (672) Net investment in leases 9,905 10,945 Gross financed sales receivables 148,889 146,232 Unearned finance income (38,502) (39,378) Financed sales receivables 110,387 106,854 Accumulated allowance for uncollectible amounts (643) (568) Net financed sales receivables 109,744 106,286 Total financing receivables $ 119,649 $ 117,231 Net financed sales receivables due within one year $ 20,292 $ 19,068 Net financed sales receivables due after one year $ 89,452 $ 87,218 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories [Abstract] | |
Inventories | March 31, December 31, 2016 2015 Raw materials $ 28,123 $ 25,750 Work-in-process 2,559 2,628 Finished goods 13,882 10,375 $ 44,564 $ 38,753 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As at March 31, 2016 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components $ 199,738 $ 78,341 $ 121,397 Camera equipment 5,413 3,486 1,927 205,151 81,827 123,324 Assets under construction 11,720 - 11,720 Other property, plant and equipment Land 8,203 - 8,203 Buildings 67,963 13,210 54,753 Office and production equipment 37,422 18,441 18,981 Leasehold improvements 5,644 2,414 3,230 119,232 34,065 85,167 $ 336,103 $ 115,892 $ 220,211 As at December 31, 2015 Accumulated Net Book Cost Depreciation Value Equipment leased or held for use Theater system components $ 199,974 $ 74,568 $ 125,406 Camera equipment 5,393 3,368 2,025 205,367 77,936 127,431 Assets under construction 9,616 - 9,616 Other property, plant and equipment Land 8,203 - 8,203 Buildings 67,150 12,679 54,471 Office and production equipment 34,396 17,035 17,361 Leasehold improvements 3,512 2,327 1,185 113,261 32,041 81,220 $ 328,244 $ 109,977 $ 218,267 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Intangible Assets [Abstract] | |
Other Intangible Assets | As at March 31, 2016 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 10,683 $ 6,623 $ 4,060 Licenses and intellectual property 22,490 6,645 15,845 Other 12,378 3,146 9,232 $ 45,551 $ 16,414 $ 29,137 As at December 31, 2015 Accumulated Net Book Cost Amortization Value Patents and trademarks $ 10,399 $ 6,502 $ 3,897 Licenses and intellectual property 22,390 6,464 15,926 Other 11,878 2,751 9,127 $ 44,667 $ 15,717 $ 28,950 |
Other Intangible Assets - Future Amortization | As at March 31, 2016 , estimated amortization expense for each of the years ended December 31, are as follows: 2016 (nine months remaining) $ 2,632 2017 3,509 2018 3,509 2019 3,509 2020 3,509 |
Credit Facility and Playa Vis30
Credit Facility and Playa Vista Construction Loan (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Credit Facility and Playa Vista Construction Loan [Abstract] | |
Bank indebtedness | Bank indebtedness includes the following: March 31, December 31, 2016 2015 Playa Vista Loan $ 29,167 $ 29,667 Deferred charges on debt financing (381) (391) $ 28,786 $ 29,276 |
Construction loan principal payments | In accordance with the loan agreement , the Company is obligated to make payments on the principal of the loan as follows: 2016 (nine months remaining) $ 1,500 2017 2,000 2018 2,000 2019 2,000 2020 2,000 Thereafter 19,667 $ 29,167 |
Condensed Consolidated Statem31
Condensed Consolidated Statements of Cash Flows Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Consolidated Statements of Cash Flows Supplemental Information [Abstract] | |
Changes in other non-cash operating assets and liabilities | Three Months Ended March 31, 2016 2015 Decrease (increase) in: Accounts receivable $ 6,070 $ 9,456 Financing receivables (1,748) (674) Inventories (5,994) (8,601) Prepaid expenses (2,345) (2,080) Commissions and other deferred selling expenses 34 (357) Insurance recoveries 132 (22) Other assets (441) (873) Increase (decrease) in: Accounts payable (2,470) 8,628 Accrued and other liabilities (12,986) (22,407) Deferred revenue (2,998) 7,125 $ (22,746) $ (9,805) |
Cash payments | Three Months Ended March 31, 2016 2015 Income taxes $ 12,051 $ 14,039 Interest $ 180 $ 61 |
Summary of depreciation and amortization | Three Months Ended March 31, 2016 2015 Film assets $ 3,356 $ 3,542 Property, plant and equipment Joint revenue sharing arrangements 3,738 3,251 Other property, plant and equipment 2,326 1,721 Other intangible assets 672 765 Other assets 205 188 Deferred financing costs 141 166 $ 10,438 $ 9,633 |
Write downs, net of recoveries | Three Months Ended March 31, 2016 2015 Accounts receivable $ 126 $ 5 Inventories 184 33 Property, plant and equipment 329 90 Other intangible assets 9 - $ 648 $ 128 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income tax effect related to other comprehensive loss | The income tax (expense) benefit included in the Company’s other comprehensive income (loss) are related to the following it ems: Three Months Ended March 31, 2016 2015 Unrealized change in cash flow hedging instruments $ (332) $ (167) Realized change in cash flow hedging instruments upon settlement (574) 795 Amortization of actuarial loss on postretirement benefit plan (5) - Foreign currency translation adjustments - 16 $ (911) $ 644 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Capital Stock [Abstract] | |
Weighted average fair value of common share granted to employees and directors | The following assumptions were used to estimate the average fair value of the stock options: Three Months Ended March 31, 2016 2015 Average risk-free interest rate 1.72% 1.97% Expected option life (in years) 4.79 - 4.88 3.55 - 5.76 Expected volatility 30% 30% Annual termination probability 0% - 8.08% 0% - 9.50% Dividend yield 0% 0% |
Option activity under the Stock Option Plan and the IMAX LTIP | The following table summarizes certain information in respect of option activity under the SOP and IMAX LTIP for the three month periods end ed March 31 : Weighted Average Exercise Number of Shares Price Per Share 2016 2015 2016 2015 Options outstanding, beginning of period 4,805,244 5,925,660 $ 27.03 $ 24.24 Granted 323,925 871,431 31.85 31.56 Exercised (43,750) (591,558) 16.91 19.28 Forfeited (2,042) - 31.85 - Options outstanding, end of period 5,083,377 6,205,533 27.42 25.74 Op tions exercisable, end of period 3,507,573 3,496,050 26.52 23.88 |
Restricted Stock Units activity under the IMAX LTIP | The following table summarizes certain information in respect of RSU activity under the IMAX LTIP for the three months ended March 31, 2016 : Number of Awards Weighted Average Grant Date Fair Value Per Share 2016 2015 2016 2015 RSUs outstanding, beginning of period 973,637 595,834 $ 32.27 $ 27.13 Granted 351,584 307,213 31.85 33.86 Vested and settled (190,298) (117,793) 29.47 27.03 Forfeited (3,092) - 32.43 - RSUs outstanding, end of period 1,131,831 785,254 32.61 29.77 |
Basic and diluted per-share computations | Reconciliations of the numerator and denominator of the basic and diluted per -share computations are comprised of the following: Three Months Ended March 31, 2016 2015 Net income attributable to common shareholders $ 9,527 $ 391 Less: Accretion charges associated with redeemable common stock - (222) Net income applicable to common shareholders $ 9,527 $ 169 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 69,673 68,988 Weighted average number of shares (repurchased) issued during the period (294) 222 Weighted average number of shares used in computing basic income per share 69,379 69,210 Assumed exercise of stock options and RSUs, net of shares assumed repurchased 741 1,466 Weighted average number of shares used in computing diluted income per share 70,120 70,676 |
Movement of Shareholders' Equity | The following summarizes the movement of Shareholders’ Equity attributable to common shareholders for the three months ended March 31, 2016 : Balance as at December 31, 2015 $ 623,891 Net income attributable to common shareholders 9,527 Adjustments to capital stock: Cash received from the issuance of common shares 740 Issuance of common shares for vested RSUs 164 Fair value of stock options exercised at the grant date 341 Average carrying value of repurchased and retired common shares (9,307) Adjustments to other equity: Employee stock options granted 5,179 Non-employee stock options granted and vested 30 Fair value of stock options exercised at the grant date (341) RSUs granted 3,427 RSUs vested (6,118) Utilization of excess tax benefits from vested RSUs 124 Adjustments to accumulated deficit: Common shares repurchased and retired (35,311) Adjustments to accumulated other comprehensive income: Unrealized net gain from cash flow hedging instruments 2,207 Realization of cash flow hedging net loss upon settlement 1,277 Foreign currency translation adjustments 1,121 Amortization of actuarial loss on postretirement benefit plan 17 Tax effect of movement in other comprehensive income (911) Balance as at March 31, 2016 $ 596,057 |
Segmented Information (Tables)
Segmented Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segmented Information [Abstract] | |
Inter-segment revenue | Three Months Ended March 31, 2016 2015 Revenue (1) IMAX theater systems IMAX systems $ 21,860 $ 12,114 Theater system maintenance 9,826 8,850 Joint revenue sharing arrangements 23,386 15,868 55,072 36,832 Films Production and IMAX DMR 29,805 17,676 Distribution 363 1,388 Post-production 2,407 2,890 32,575 21,954 Other 4,481 3,425 Total $ 92,128 $ 62,211 Gross margin IMAX theater systems IMAX systems (2) $ 7,834 $ 8,185 Theater system maintenance 3,439 3,281 Joint revenue sharing arrangements (2) 17,992 10,617 29,265 22,083 Films Production and IMAX DMR (2) 22,823 13,225 Distribution (2) (679) 135 Post-production 1,249 578 23,393 13,938 Other (482) (40) Total $ 52,176 $ 35,981 |
Geographic Information | Three Months Ended March 31, 2016 2015 Revenue United States $ 35,544 $ 25,491 Canada 7,077 1,883 Greater China 24,939 17,796 Western Europe 11,486 5,166 Asia (excluding Greater China) 5,559 5,776 Latin America 3,527 2,435 Russia & the CIS 1,692 1,941 Rest of the World 2,304 1,723 Total $ 92,128 $ 62,211 |
Employees Pension and Postret35
Employees Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Amounts accrued | The following table provides disclosure of the pension obligation for the SERP: As at As at March 31, December 31, 2016 2015 Projected benefit obligation: Obligation, beginning of year $ 19,478 $ 19,405 Interest cost 65 253 Actuarial gain - (180) Obligation, end of year and unfunded status $ 19,543 $ 19,478 |
SERP Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension Expense | The following table provides disclosure of pension expense for the SERP: Three Months Ended March 31, 2016 2015 Interest cost $ 65 $ 63 Pension expense $ 65 $ 63 |
Schedule of expected benefit payments | The following benefit payments are expected to be made as per the current SERP assumptions and the terms of the SERP in each of the next 5 years, and in the aggregate : 2016 (nine months remaining) $ - 2017 19,871 2018 - 2019 - 2020 - Thereafter - $ 19,871 |
Postretirement Benefits Executive [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of expected benefit payments | The following benefit payments are expected to be made as per the current plan assumptions in each of the next 5 years: 2016 (nine months remaining) $ 34 2017 54 2018 60 2019 66 2020 33 Thereafter 524 Total $ 771 |
Postretirement Benefits Canadian Employees [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of expected benefit payments | The following benefit payments are expected to be made as per the current plan assumptions in each of the next 5 years: 2016 (nine months remaining) $ 97 2017 101 2018 109 2019 116 2020 118 Thereafter 1,350 Total $ 1,891 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities due within one yea r approximate fair values due to the short-term maturity of these instruments. The Company’s other financial instruments are comprised of the following: As at March 31, 2016 As at December 31, 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Cash and cash equivalents $ 259,752 $ 259,752 $ 317,449 $ 317,449 Net financed sales receivable $ 109,744 $ 112,892 $ 106,286 $ 108,184 Net investment in sales-type leases $ 9,905 $ 10,264 $ 10,945 $ 11,154 Available-for-sale investment $ 1,000 $ 1,003 $ 1,000 $ 997 Foreign exchange contracts — designated forwards $ (939) $ (939) $ (4,423) $ (4,423) Borrowings under the Playa Vista Loan $ (29,167) $ (29,167) $ (29,667) $ (29,667) |
Recorded Investment in Financing Receivables | The following table discloses the recorded investment in financing receivables by credit quality indicator: As at March 31, 2016 As at December 31, 2015 Minimum Financed Minimum Financed Lease Sales Lease Sales Payments Receivables Total Payments Receivables Total In good standing $ 9,208 $ 108,784 $ 117,992 $ 10,252 $ 105,352 $ 115,604 Pre-approved transactions - 858 858 - 757 757 Transactions suspended 1,369 745 2,114 1,365 745 2,110 $ 10,577 $ 110,387 $ 120,964 $ 11,617 $ 106,854 $ 118,471 |
Investment In Financing Receivables On Nonaccrual Status | The Company’s investment in financing receivables on nonaccrua l status is as follows: As at March 31, 2016 As at December 31, 2015 Recorded Related Recorded Related Investment Allowance Investment Allowance Net investment in leases $ 1,369 $ (672) $ 1,365 $ (672) Net financed sales receivables 745 (643) 745 (568) Total $ 2,114 $ (1,315) $ 2,110 $ (1,240) |
Aging of Financing Receivables | The Company’s aged financing receivables are as follows: As at March 31, 2016 Related Recorded Accrued Billed Unbilled Total Investment and Financing Recorded Recorded Related Net of Current 30-89 Days 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 166 $ 62 $ 748 $ 976 $ 9,601 $ 10,577 $ (672) $ 9,905 Net financed sales receivables 1,858 633 2,650 5,141 105,246 110,387 (643) 109,744 Total $ 2,024 $ 695 $ 3,398 $ 6,117 $ 114,847 $ 120,964 $ (1,315) $ 119,649 As at December 31, 2015 Related Recorded Accrued Billed Unbilled Total Investment and Financing Recorded Recorded Related Net of Current 30-89 Days 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 840 $ 177 $ 446 $ 1,463 $ 10,154 $ 11,617 $ (672) $ 10,945 Net financed sales receivables 908 1,013 1,177 3,098 103,756 106,854 (568) 106,286 Total $ 1,748 $ 1,190 $ 1,623 $ 4,561 $ 113,910 $ 118,471 $ (1,240) $ 117,231 |
Financing receivables continues to accrue finance income | The Company’s recorded investment in past due financing receivables for which the Company continues to accrue finance income is as foll ows: As at March 31, 2016 Related Recorded Accrued Billed Unbilled Investment and Financing Recorded Related Past Due Current 30-89 Days 90+ Days Receivables Investment Allowance and Accruing Net investment in leases $ 56 $ 148 $ 773 $ 977 $ 1,110 $ - $ 2,087 Net financed sales receivables 71 165 2,093 2,329 10,130 - 12,459 Total $ 127 $ 313 $ 2,866 $ 3,306 $ 11,240 $ - $ 14,546 As at December 31, 2015 Related Recorded Accrued Billed Unbilled Investment and Financing Recorded Related Past Due Current 30-89 Days 90+ Days Receivables Investment Allowance and Accruing Net investment in leases $ 41 $ 47 $ 205 $ 293 $ 1,076 $ - $ 1,369 Net financed sales receivables 129 224 839 1,192 10,795 - 11,987 Total $ 170 $ 271 $ 1,044 $ 1,485 $ 11,871 $ - $ 13,356 |
Impaired financing receivables | The following table discloses information regarding the Company’s impaired financing receivables: Impaired Financing Receivable s For the Three Months Ended March 31, 2016 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allowance: Net f inanced sales receivables $ 748 $ 414 $ (643) $ 748 $ - Recorded investment for which there is no related allowance: Net f inanced sales receivables - - - - - Total recorded investment in impaired loans: Net financed sales receivables $ 748 $ 414 $ (643) $ 748 $ - Impaired Financing Receivables For the Three Months Ended March 31, 2015 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allow ance: Net f inanced sales receivables $ 525 $ 36 $ (494) $ 525 $ - Recorded investment for which there is no related allowance: Net f inanced sales receivables - - - - - Total recorded investment in impaired loans: Net financed sales receivables $ 525 $ 36 $ (494) $ 525 $ - |
Allowance for credit losses and investment in financing receivables | The Company’s activity in the allowance for credit losses for the period and the Company’s record ed investment in financing receivables are as follows: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net Investment Net Financed Net Investment Net Financed in Leases Sales Receivables in Leases Sales Receivables Allowance for credit losses: Beginning balance $ 672 $ 568 $ 972 $ 494 Charge-offs - - - - Recoveries - - - - Provision - 75 - - Ending balance $ 672 $ 643 $ 972 $ 494 Ending balance: individually evaluated for impairment $ 672 $ 643 $ 972 $ 494 Financing receivables: Ending balance: individually evaluated for impairment $ 10,577 $ 110,387 $ 10,744 $ 95,950 |
Notional amount of derivative | Notional value of foreign exchange contracts: March 31, December 31, 2016 2015 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 34,016 $ 30,710 |
Fair value of foreign exchange contracts | Fair value of derivatives in foreign exchange contracts: March 31, December 31, Balance Sheet Location 2016 2015 Derivatives designated as hedging instruments: Other assets $ 843 $ - Foreign exchange contracts — Forwards Accrued and other liabilities (1,782) (4,423) $ (939) $ (4,423) |
Derivatives in Foreign Currency Hedging relationships | Derivatives in Foreign Currency Hedging relationships for the three months ended March 31: 2016 2015 Foreign exchange contracts — Forwards Derivative Gain (Loss) Recognized in OCI (Effective Portion) $ 2,207 $ (3,026) Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) 2016 2015 Forei gn exchange contracts — Forwards Selling, general and administrative expenses $ (1,277) $ (635) |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
IMAX China Noncontrolling Interest | |
Non-controlling Interests | |
Non-controlling Interests | The following summarizes the movement of the non-controlling interest in shareholders’ equity, in the Company’s subsidiary for the three months ended March 31, 2016 : Balance as at December 31, 2015 $ 49,959 Net income 2,694 Other comprehensive loss (699) Balance as at March 31, 2016 $ 51,954 |
Other Noncontrolling Interest [Member] | |
Non-controlling Interests | |
Non-controlling Interests | Balance as at December 31, 2015 $ 3,307 Net loss (44) Balance as at March 31, 2016 $ 3,263 |
New Accounting Standards And 38
New Accounting Standards And Accounting Changes (Details) $ in Thousands | Dec. 31, 2015USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles | |
Deferred charges on debt financing | $ 391 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Basis of Presentation (Textuals) [Abstract] | |||
Number Of Variable Interest Entities | 11 | ||
Number Of Variable Interest Entities Primary Beneficiary | 5 | ||
Number Of Variable Interest Entities Not A Primary Beneficiary | 6 | ||
Variable interest entity, non-consolidated, Assets | $ 0.4 | ||
Variable interest entity, non-consolidated, Liabilities | 0.4 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Basis of Presentation (Textuals) [Abstract] | |||
Variable interest entity, consolidated, Assets | 7.1 | $ 7.2 | |
Variable interest entity, consolidated, Liabilities | 3.2 | 4.1 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Basis of Presentation (Textuals) [Abstract] | |||
Variable interest entity, non-consolidated, Assets | 0.4 | 0.4 | |
Variable interest entity, non-consolidated, Liabilities | 0.4 | 0.4 | |
Earnings of the investees | 0 | $ 0 | |
Carrying value of film production company VIEs | 0 | 0 | |
Loss exposure | $ 0 | $ 0 |
Financing Receivables (Details)
Financing Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales | ||
Gross minimum lease payments receivable | $ 12,738 | $ 13,998 |
Unearned finance income | (2,161) | (2,381) |
Minimum lease payments receivable | 10,577 | 11,617 |
Accumulated allowance for uncollectible amounts | (672) | (672) |
Net investment in leases | 9,905 | 10,945 |
Gross financed sales receivables | 148,889 | 146,232 |
Unearned finance income | (38,502) | (39,378) |
Financed sales receivables | 110,387 | 106,854 |
Accumulated allowance for uncollectible amounts | (643) | (568) |
Net financed sales receivables | 109,744 | 106,286 |
Total financing receivables | 119,649 | 117,231 |
Net financed sales receivables due within one year | 20,292 | 19,068 |
Net financed sales receivables due after one year | $ 89,452 | $ 87,218 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventories | ||
Raw materials | $ 28,123 | $ 25,750 |
Work-in-process | 2,559 | 2,628 |
Finished goods | 13,882 | 10,375 |
Total | $ 44,564 | $ 38,753 |
Property Plant and Equipment (D
Property Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment | ||
Cost | $ 336,103 | $ 328,244 |
Accumulated Depreciation | 115,892 | 109,977 |
Net Book Value | 220,211 | 218,267 |
Equipment leased or held for use [Member] | ||
Property, plant and equipment | ||
Cost | 205,151 | 205,367 |
Accumulated Depreciation | 81,827 | 77,936 |
Net Book Value | 123,324 | 127,431 |
Theater System Components [Member] | ||
Property, plant and equipment | ||
Cost | 199,738 | 199,974 |
Accumulated Depreciation | 78,341 | 74,568 |
Net Book Value | 121,397 | 125,406 |
Camera Equipment [Member] | ||
Property, plant and equipment | ||
Cost | 5,413 | 5,393 |
Accumulated Depreciation | 3,486 | 3,368 |
Net Book Value | 1,927 | 2,025 |
Assets Under Construction [Member] | ||
Property, plant and equipment | ||
Cost | 11,720 | 9,616 |
Accumulated Depreciation | 0 | 0 |
Net Book Value | 11,720 | 9,616 |
Other property, plant and equipment [Member] | ||
Property, plant and equipment | ||
Cost | 119,232 | 113,261 |
Accumulated Depreciation | 34,065 | 32,041 |
Net Book Value | 85,167 | 81,220 |
Land [Member] | ||
Property, plant and equipment | ||
Cost | 8,203 | 8,203 |
Accumulated Depreciation | 0 | 0 |
Net Book Value | 8,203 | 8,203 |
Buildings [Member] | ||
Property, plant and equipment | ||
Cost | 67,963 | 67,150 |
Accumulated Depreciation | 13,210 | 12,679 |
Net Book Value | 54,753 | 54,471 |
Office and Production Equipment [Member] | ||
Property, plant and equipment | ||
Cost | 37,422 | 34,396 |
Accumulated Depreciation | 18,441 | 17,035 |
Net Book Value | 18,981 | 17,361 |
Leasehold Improvements [Member] | ||
Property, plant and equipment | ||
Cost | 5,644 | 3,512 |
Accumulated Depreciation | 2,414 | 2,327 |
Net Book Value | $ 3,230 | $ 1,185 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Intangible Assets | ||
Other Intangible Assets, Cost | $ 45,551 | $ 44,667 |
Other Intangible Assets, Accumulated Amortization | 16,414 | 15,717 |
Other Intangible Assets, Net Book Value | 29,137 | 28,950 |
Patents and Trademarks [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 10,683 | 10,399 |
Other Intangible Assets, Accumulated Amortization | 6,623 | 6,502 |
Other Intangible Assets, Net Book Value | 4,060 | 3,897 |
Licenses and Intellectual Property [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 22,490 | 22,390 |
Other Intangible Assets, Accumulated Amortization | 6,645 | 6,464 |
Other Intangible Assets, Net Book Value | 15,845 | 15,926 |
Other [Member] | ||
Other Intangible Assets | ||
Other Intangible Assets, Cost | 12,378 | 11,878 |
Other Intangible Assets, Accumulated Amortization | 3,146 | 2,751 |
Other Intangible Assets, Net Book Value | $ 9,232 | $ 9,127 |
Credit Facility and Playa Vis44
Credit Facility and Playa Vista Construction Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Bank indebtedness [Line Items] | ||
Deferred charges on debt financing | $ (391) | |
Total bank indebtedness | $ 28,786 | 29,276 |
Playa Vista Loan [Member] | ||
Bank indebtedness [Line Items] | ||
Playa Vista Loan | 29,167 | 29,667 |
Deferred charges on debt financing | (381) | (391) |
Total bank indebtedness | 28,786 | 29,276 |
Playa Vista loan principal payments | ||
2016 (nine months remaining) | 1,500 | |
2,017 | 2,000 | |
2,018 | 2,000 | |
2,019 | 2,000 | |
2,020 | 2,000 | |
Thereafter | 19,667 | |
Playa Vista Loan | $ 29,167 | $ 29,667 |
Condensed Consolidated Statem45
Condensed Consolidated Statement of Operations Supplemental Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)yrFilmexhibitorTheaters | Mar. 31, 2015USD ($)Film | |
Selling Expenses | ||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-equipment and product sales | $ 700 | $ 500 |
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services | $ 3,000 | 1,200 |
Commissions recognized as cost and expenses included in costs and expenses applicable to revenues-rentals | less than | |
Commissions recognized as cost and expenses included in costs and expenses applicable to revenues-rentals | $ (100) | $ (100) |
Direct advertising and marketing costs included in costs and expenses applicable to revenues-rentals | less than | less than |
Direct advertising and marketing costs included in costs and expenses applicable to revenues-rentals | $ 100 | $ (100) |
Foreign Exchange | ||
Foreign exchange translation gain (loss) related to monetary assets and liabilities | $ 500 | (1,600) |
Collaborative Arrangements | ||
Total number of exhibitors under joint revenue sharing agreements | exhibitor | 47 | |
Total number of theater systems under joint revenue sharing agreements | Theaters | 748 | |
Total number of operating theaters under joint revenue sharing agreement | Theaters | 534 | |
Amounts attributable to transactions arising between the company and its customers under joint revenue sharing arrangements | $ 23,400 | $ 15,900 |
IMAX DMR films exhibited in the period | Film | 17 | 22 |
Amounts attributable to transactions arising between the company and its customers under IMAX DMR arrangements | $ 29,805 | $ 17,676 |
Number of significant co-produced film arrangement | Film | 1 | |
Number of other co-produced film arrangements | Film | 5 | |
Variable interest entity, non-consolidated, Assets | $ 400 | |
Variable interest entity, non-consolidated, Liabilities | 400 | |
Amounts attributable to transactions between the company and other parties involved in the production of films included in cost and expense | $ 200 | $ 600 |
Minimum [Member] | ||
Collaborative Arrangements | ||
Non-cancellable term of joint revenue sharing arrangements | yr | 10 | |
Percentage of the gross box-office receipts of the film, minimum for recovering digital re-mastering cost | 10.00% | |
Maximum [Member] | ||
Collaborative Arrangements | ||
Non-cancellable term of joint revenue sharing arrangements | longer | |
Percentage of the gross box-office receipts of the film, maximum for recovering digital re-mastering cost | 15.00% |
Condensed Consolidated Statem46
Condensed Consolidated Statements of Cash Flows Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Decrease (increase) in: | ||
Accounts receivable | $ 6,070 | $ 9,456 |
Financing receivables | (1,748) | (674) |
Inventories | (5,994) | (8,601) |
Prepaid expenses | (2,345) | (2,080) |
Commissions and other deferred selling expenses | 34 | (357) |
Insurance recoveries | 132 | (22) |
Other assets | (441) | (873) |
Increase (decrease) in: | ||
Accounts payable | (2,470) | 8,628 |
Accrued and other Liabilities | (12,986) | (22,407) |
Deferred revenue | (2,998) | 7,125 |
Changes in other non-cash operating assets and liabilities | (22,746) | (9,805) |
Cash payments | ||
Income taxes | 12,051 | 14,039 |
Interest | $ 180 | $ 61 |
Receivable Provisions Net of Re
Receivable Provisions Net of Recoveries (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Receivable Provisions, Net of Recoveries [Abstract] | ||
Receivable provisions, net of recoveries | $ 126 | $ 5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Unrealized change in cash flow hedging instruments | $ (332) | $ (167) |
Realized change in cash flow hedging instruments upon settlement | (574) | 795 |
Amortization of actuarial loss on postretirement benefit plan | (5) | 0 |
Foreign currency translation adjustments | 0 | 16 |
Income tax effect on other comprehensive income (loss) | $ (911) | $ 644 |
Capital Stock (Details)
Capital Stock (Details) - Employee Stock Option [Member] | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Weighted average fair value of common share granted to employees and directors | ||
Average risk-free interest rate | 1.72% | 1.97% |
Expected volatility | 30.00% | 30.00% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Weighted average fair value of common share granted to employees and directors | ||
Expected option life (in years) | 4 years 9 months 14 days | 3 years 6 months 18 days |
Annual termination probability | 0.00% | 0.00% |
Maximum [Member] | ||
Weighted average fair value of common share granted to employees and directors | ||
Expected option life (in years) | 4 years 10 months 17 days | 5 years 9 months 4 days |
Annual termination probability | 8.08% | 9.50% |
Segmented Information (Details)
Segmented Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Revenues | |||
Revenues | $ 92,128 | $ 62,211 | |
Gross margins | |||
Gross margins | 52,176 | 35,981 | |
IMAX Theater Systems Total [Member] | |||
Revenues | |||
Revenues | [1] | 55,072 | 36,832 |
Gross margins | |||
Gross margins | 29,265 | 22,083 | |
IMAX systems [Member] | |||
Revenues | |||
Revenues | [1] | 21,860 | 12,114 |
Gross margins | |||
Gross margins | [2] | 7,834 | 8,185 |
Theater system maintenance [Member] | |||
Revenues | |||
Revenues | [1] | 9,826 | 8,850 |
Gross margins | |||
Gross margins | 3,439 | 3,281 | |
Joint revenue sharing arrangements [Member] | |||
Revenues | |||
Revenues | [1] | 23,386 | 15,868 |
Gross margins | |||
Gross margins | [2] | 17,992 | 10,617 |
Films Total [Member] | |||
Revenues | |||
Revenues | [1] | 32,575 | 21,954 |
Gross margins | |||
Gross margins | 23,393 | 13,938 | |
Production and IMAX DMR [Member] | |||
Revenues | |||
Revenues | [1] | 29,805 | 17,676 |
Gross margins | |||
Gross margins | [2] | 22,823 | 13,225 |
Distribution [Member] | |||
Revenues | |||
Revenues | [1] | 363 | 1,388 |
Gross margins | |||
Gross margins | [2] | (679) | 135 |
Post-production [Member] | |||
Revenues | |||
Revenues | [1] | 2,407 | 2,890 |
Gross margins | |||
Gross margins | 1,249 | 578 | |
Others [Member] | |||
Revenues | |||
Revenues | [1] | 4,481 | 3,425 |
Gross margins | |||
Gross margins | $ (482) | $ (40) | |
[1] | The Company’s largest customer represents 16.0% of total revenues for the three months ended March 31, 2016 (2015 — 17.1%). | ||
[2] | IMAX systems include marketing and commission costs of $0.5 million for the three months ended March 31, 2016 (2015 — $0.3 million). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $0.1 million for the three months ended March 31, 2016 (2015 — $0.1 million). Production and DMR segment margins include marketing costs of $2.3 million for the three months ended March 31, 2016 (2015 — $1.3 million). Distribution segment margins include marketing expense of $0.7 million for the three months ended March 31, 2016 (2015 — recovery of $0.1 million). |
Employees Pension and Postret51
Employees Pension and Postretirement Benefits (Details) - Pension Plans, Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Amounts Accrued | |||
Obligation, beginning of period | $ 19,478 | $ 19,405 | $ 19,405 |
Interest cost | 65 | 63 | 253 |
Actuarial gain | 0 | (180) | |
Obligation, end of period and unfunded status | 19,543 | 19,478 | |
Pension Expense | |||
Interest cost | 65 | 63 | $ 253 |
Pension expense | $ 65 | $ 63 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Other Financial Instrument | ||||
Cash and cash equivalents | $ 259,752 | $ 317,449 | $ 140,342 | $ 106,503 |
Net financed sales receivable | 109,744 | 106,286 | ||
Net investment in sales-type leases | 9,905 | 10,945 | ||
Foreign exchange contracts - Forwards | (939) | (4,423) | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Other Financial Instrument | ||||
Cash and cash equivalents | 259,752 | 317,449 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Other Financial Instrument | ||||
Net financed sales receivable | 109,744 | 106,286 | ||
Net investment in sales-type leases | 9,905 | 10,945 | ||
Available-for-sale investment | 1,000 | 1,000 | ||
Borrowings under the Playa Vista loan | (29,167) | (29,667) | ||
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 | (939) | (4,423) | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Other Financial Instrument | ||||
Cash and cash equivalents | 259,752 | 317,449 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Other Financial Instrument | ||||
Net financed sales receivable | 112,892 | 108,184 | ||
Net investment in sales-type leases | 10,264 | 11,154 | ||
Available-for-sale investment | 1,003 | 997 | ||
Borrowings under the Playa Vista loan | (29,167) | (29,667) | ||
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 | $ (939) | $ (4,423) |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Non-controlling Interests | ||
Issuance of subsidiary shares to non-controlling interests - private offering | $ 0 | $ 40,000 |
Share issuance costs from the issuance of subsidiary shares to a non-controlling interest | 0 | (2,000) |
Net income (loss) | 2,650 | $ 1,094 |
IMAX China Noncontrolling Interest | ||
Non-controlling Interests | ||
Beginning Balance | 49,959 | |
Net income (loss) | 2,694 | |
Other comprehensive loss | (699) | |
Ending Balance | 51,954 | |
Other Noncontrolling Interest [Member] | ||
Non-controlling Interests | ||
Beginning Balance | 3,307 | |
Net income (loss) | (44) | |
Ending Balance | $ 3,263 |
Financing Receivables (Details
Financing Receivables (Details Textuals) | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivables (Textuals) [Abstract] | ||
Financed sale receivables, Weighted average effective interest rate | 9.20% | 9.40% |
Inventories (Details Textuals)
Inventories (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Inventories (Textuals) [Abstract] | |||
Finished goods inventory with title passed to customer | $ 8,100 | $ 5,400 | |
Write-downs for excess and obsolete inventory | $ 184 | $ 33 |
Other Intangible Assets (Deta56
Other Intangible Assets (Details 1) $ in Thousands | Mar. 31, 2016USD ($) |
Other Intangible Assets [Abstract] | |
2016 (nine months remaining) | $ 2,632 |
2,017 | 3,509 |
2,018 | 3,509 |
2,019 | 3,509 |
2,020 | $ 3,509 |
Other Intangible Assets (Deta57
Other Intangible Assets (Details Textuals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Intangible Assets (Textuals) [Abstract] | ||
Other Intangible Asset, comprised mainly of ERP System | $ 12.4 | |
Acquisition of other intangible assets, cost | $ 1 | |
Weighted average amortization period for additions to other intangible assets | P10Y | |
Costs incurred to renew or extend the term of acquired other intangible assets | less than | |
Costs incurred to renew or extend the term of acquired other intangible assets | $ 0.1 | $ 0.1 |
Credit Facility and Playa Vis58
Credit Facility and Playa Vista Construction Loan (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 03, 2015 | Oct. 06, 2014 | |
Playa Vista Construction Loan [Member] | |||||
Credit Facility and Playa Vista Construction Loan (Textuals) [Abstract] | |||||
Playa Vista construction loan funding | $ 22,300 | ||||
Interest rate description | Prior to the conversion, the Playa Vista Construction Loan bore interest at a variable interest rate per annum equal to 2.25% above the 30-day LIBOR rate, and PV Borrower was required to make monthly payments of interest only. | ||||
Playa Vista Loan [Member] | |||||
Credit Facility and Playa Vista Construction Loan (Textuals) [Abstract] | |||||
Maximum borrowing capacity | $ 30,000 | ||||
Amounts Drawn | $ 29,167 | $ 29,667 | |||
Playa Vista Construction Loan conversion date | Oct. 19, 2015 | ||||
Additional borrowing under revolving term loan | $ 7,700 | ||||
Interest rate description | As a result of the conversion, the interest rate decreased from 2.25% to 2.0% above the 30-day LIBOR rate | ||||
Total cost of development of the Playa Vista Project | 54,000 | ||||
Effective interest rate | 2.43% | 2.42% | |||
Maturity date | Oct. 19, 2025 | ||||
Term of loan | 120 months | ||||
Playa Vista Loan - Payment Terms | PV Borrower will be required to make monthly payments of combined principal and interest over a 10-year term with a lump sum payment at the end of year 10. The Playa Vista Loan is being amortized over 15 years. The Playa Vista Loan will be fully due and payable on October 19, 2025. | ||||
Wells Fargo Foreign Exchange Facility [Member] | |||||
Credit Facility and Playa Vista Construction Loan (Textuals) [Abstract] | |||||
Settlement risk on its foreign currency forward contracts | $ 900 | ||||
Notional Amount of arrangements entered into | 34,016 | ||||
Bank of Montreal Facilities [Member] | |||||
Credit Facility and Playa Vista Construction Loan (Textuals) [Abstract] | |||||
Remaining Borrowing Capacity | 10,000 | 10,000 | |||
Letters of credit and advance payment guarantees | $ 100 | 300 | |||
Credit Facility [Member] | |||||
Credit Facility and Playa Vista Construction Loan (Textuals) [Abstract] | |||||
Credit Facility Maturity Date | Mar. 3, 2020 | ||||
Maximum borrowing capacity | $ 200,000 | ||||
Remaining Borrowing Capacity | $ 200,000 | 200,000 | |||
Letters of credit and advance payment guarantees | $ 0 | $ 0 | |||
Line of credit facility covenant terms | On February 22, 2016, the Company amended the terms of the Credit Agreement to increase the general restricted payment basket thereunder (which covers, among other things, the repurchase of shares) from $150 million to $350 million in the aggregate after the amendment date. | ||||
Compliance with covenants | The Company was in compliance with all of its requirements at March 31, 2016. |
Contingencies and Guarantees (D
Contingencies and Guarantees (Details Textuals) CAD in Thousands, $ in Thousands | 3 Months Ended | 25 Months Ended | 28 Months Ended | 51 Months Ended | 95 Months Ended | 111 Months Ended | |||
Mar. 31, 2016USD ($) | Dec. 14, 2015USD ($) | Mar. 04, 2016USD ($) | Mar. 27, 2008 | Dec. 02, 2011 | Dec. 15, 2015USD ($) | Dec. 15, 2015CAD | Dec. 31, 2015USD ($) | Mar. 02, 2013 | |
Final Award in favor of company | Amount of $11.3 million plus 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 | |||||||
Distribution of Settlement | $ 400 | $ 12,000 | CAD 3,750 | ||||||
Damages sought | $ 10,400 | $ 210,000 | |||||||
Counterclaim sought | $ 24,000 | ||||||||
Reduction In Canadian Class Action Lawsuit Size | 85.00% | ||||||||
Financial Guarantees | $ 0 | ||||||||
Product Warranty Accrual | 0 | $ 0 | |||||||
Indemnification of its directors/officers | $ 0 | $ 0 | |||||||
Other Indemnification | 0 |
Condensed Consolidated Statem60
Condensed Consolidated Statements of Cash Flows Supplemental Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary of Depreciation and amortization | ||
Film assets | $ 3,356 | $ 3,542 |
Property, plant and equipment | ||
Joint revenue sharing arrangements | 3,738 | 3,251 |
Other property, plant and equipment | 2,326 | 1,721 |
Other intangible assets | 672 | 765 |
Other assets | 205 | 188 |
Deferred financing costs | 141 | 166 |
Depreciation and amortization | $ 10,438 | $ 9,633 |
Condensed Consolidated Statem61
Condensed Consolidated Statements of Cash Flows Supplemental Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Write-downs, net of recoveries | ||
Accounts receivable | $ 126 | $ 5 |
Inventories | 184 | 33 |
Property, plant and equipment | 329 | 90 |
Other intangible assets | 9 | 0 |
Write-downs, net of recoveries | $ 648 | $ 128 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
Deferred income tax asset after valuation allowance | $ 25.2 | $ 25.8 |
Deferred income tax asset before valuation allowance | 25.5 | 26.1 |
Valuation allowance | $ 0.3 | $ 0.3 |
Capital Stock (Details 2)
Capital Stock (Details 2) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Option activity under the Stock Option Plan and the IMAX LTIP | ||
Options outstanding, end of period | 5,083,377 | |
Employee Stock Option [Member] | ||
Option activity under the Stock Option Plan and the IMAX LTIP | ||
Granted | 323,925 | 871,431 |
Granted, weighted average exercise price per share | $ 31.85 | $ 31.56 |
Exercised | (43,750) | (591,558) |
Exercised, weighted average exercise price per share | $ 16.91 | $ 19.28 |
Forfeited | (2,042) | 0 |
Forfeited, weighted average exercise price per share | $ 31.85 | $ 0 |
Cancelled | 0 | 0 |
Options outstanding, end of period | 5,083,377 | 6,205,533 |
Options outstanding, weighted average exercise price per share, end of period | $ 27.42 | $ 25.74 |
Options exercisable, end of period | 3,507,573 | 3,496,050 |
Options exercisable, weighted average exercise price per share, end of period | $ 26.52 | $ 23.88 |
Capital Stock (Details 3)
Capital Stock (Details 3) - Restricted Share Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Resticted Share Units activity under the IMAX LTIP | ||
Granted | 351,584 | 307,213 |
Granted, weighted average grant date fair value per share | $ 31.85 | $ 33.86 |
Vested and settled | (190,298) | (117,793) |
Vested and settled, weighted average grant date fair value per share | $ 29.47 | $ 27.03 |
Forfeited | (3,092) | 0 |
Forfeited, weighted average grant date fair value per share | $ 32.43 | $ 0 |
RSUs outstanding, end of period | 1,131,831 | 785,254 |
RSUs outstanding, weighted average grant date fair value per share, end of period | $ 32.61 | $ 29.77 |
Capital Stock (Details 4)
Capital Stock (Details 4) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Jan. 01, 2016 | Dec. 31, 2015 | Jan. 01, 2015 | |
Net income attributable to common shareholders | $ 9,527 | $ 391 | |||
Less: Accretion charges associated with redeemable common stock | 0 | (222) | |||
Net income applicable to common shareholders | $ 9,527 | $ 169 | |||
Weighted average number of common shares: | |||||
Issued and outstanding, beginning of period | 68,276,139 | 69,673,244 | 69,673,244 | 68,988,050 | |
Weighted average number of shares (repurchased) issued during the period | (294,269) | 221,790 | |||
Weighted average number of shares used in computing basic income per share | 69,378,975 | 69,209,840 | |||
Assumed exercise of stock options and RSUs, net of shares assumed repurchased | 740,951 | 1,466,169 | |||
Weighted average number of shares used in computing diluted income per share | 70,119,926 | 70,676,009 |
Capital Stock (Details 5)
Capital Stock (Details 5) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Movement of Shareholders Equity | ||
Balance as at December 31, 2015 | $ 623,891 | |
Net income attributable to common shareholders | 9,527 | $ 391 |
Adjustment to capital stock for cash received from issuance of common shares | 740 | |
Adjustment to capital stock for issuance of common shares for vested RSUs | 164 | |
Adjustment to capital stock for fair value of stock options exercised at the grant date | 341 | |
Adjustment to capital stock for average carrying value of repurchased and retired common shares | (9,307) | |
Adjustment to other equity for employee stock options granted | 5,179 | |
Adjustment to other equity for non-employee stock options granted and vested | 30 | |
Adjustment to other equity for fair value of stock options exercised at the grant date | (341) | |
Adjustment to other equity for RSUs granted | 3,427 | |
Adjustment to other equity for RSUs vested | (6,118) | |
Adjustment to other equity for utilization of excess tax benefits from vested RSUs | 124 | |
Adjustment to accumulated deficit for common shares repurchased and retired | (35,311) | |
Adjustment to accumulated other comprehensive income for unrealized net gain from cash flow hedging instruments | 2,207 | |
Adjustment to accumulated other comprehensive income for the realization of cash flow hedging net loss upon settlement | 1,277 | |
Adjustment to accumulated other comprehensive income for foreign currency translation adjustments | 1,121 | |
Adjustment to accumulated other comprehensive income for the amortization of actuarial loss on post retirement benefit plan | 17 | $ 0 |
Adjustment to accumulated other comprehensive income for tax effect of movement in other comprehensive income | (911) | |
Balance as at March 31, 2016 | $ 596,057 |
Capital Stock (Details Textual)
Capital Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 20, 2016 | Jan. 01, 2016 | Oct. 08, 2015 | Jan. 01, 2015 | Jun. 16, 2014 | |
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | $ 8,539 | $ 5,600 | |||||||||
Reserved common shares for future issuance | 6,789,210 | 7,023,258 | 7,023,258 | 7,023,258 | |||||||
Options outstanding | 5,083,377 | ||||||||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 3,245,033 | 2,317,669 | |||||||||
Details of the share repurchase program | On April 20, 2016, the Company’s board of directors approved an incremental $50 million increase to the share repurchase allowance, for an aggregate allowance of $200 million under the program. All other terms remain unchanged. | On June 16, 2014, the Company’s board of directors approved a new $150.0 million share repurchase program for shares of the Company’s common stock. Purchases under the program commenced during the third quarter of 2014. The share repurchase program expires on June 30, 2017. 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 | $ 150,000 | |||||||||
Stock repurchase program incremental amount approved | $ 50,000 | ||||||||||
Stock Repurchase Program Expiration Date | Jun. 30, 2017 | ||||||||||
Stock Repurchased And Retired During Period, Shares | 1,446,418 | 0 | |||||||||
Stock Acquired, Average Cost per Share | $ 30.82 | ||||||||||
Payments For Repurchase Of Common Stock | $ 44,618 | $ 0 | |||||||||
Employee Stock Option [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | 4,948 | $ 3,905 | |||||||||
Tax benefits realized stock options | $ 1,300 | ||||||||||
Options exercisable | 3,507,573 | 3,496,050 | |||||||||
Options outstanding | 5,083,377 | 6,205,533 | 4,805,244 | 5,925,660 | |||||||
Options outstanding, weighted average exercise price | $ 27.42 | $ 25.74 | $ 27.03 | $ 24.24 | |||||||
Granted | 323,925 | 871,431 | |||||||||
Weighted average fair value of options granted | $ 8.55 | $ 8.07 | |||||||||
Options exercisable intrinsic value | $ 17,106 | ||||||||||
Cancelled | 0 | 0 | |||||||||
Options fully vested or expected to vest | 4,952,508 | ||||||||||
Options fully vested or expected to vest, weighted average exercise price | $ 27.35 | ||||||||||
Options fully vested or expected to vest, aggregate intrinsic value | $ 20,581 | ||||||||||
Options fully vested or expected to vest, weighted average remaining contractual life | 4 years 2 months 12 days | ||||||||||
Weighted average remaining contractual life of exercisable option | 3 years 7 months 6 days | ||||||||||
Intrinsic value of options exercised | $ 647 | $ 9,100 | |||||||||
Options common shares were vested and exercisable | 3,507,573 | ||||||||||
Options exercisable, weighted average exercise price per share, end of period | $ 26.52 | $ 23.88 | |||||||||
Weighted average exercise price of options forfieted | $ 31.85 | $ 0 | |||||||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 2,630,005 | 2,021,451 | |||||||||
Options Non Employees [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | less than | less than | |||||||||
Share-based compensation costs recorded for the period | $ (100) | $ 100 | |||||||||
Options exercisable | 26,325 | 7,100 | |||||||||
Options outstanding | 38,750 | 22,500 | |||||||||
Options outstanding, weighted average exercise price | $ 26.79 | $ 24.61 | |||||||||
Granted | 0 | 0 | |||||||||
Amount for stock options or rights included in accrued liabilities | less than | less than | |||||||||
Amount for stock options or rights included in accrued liabilities | $ 100 | $ 100 | $ 100 | $ 100 | |||||||
Intrinsic value of options exercised | $ 100 | $ 100 | |||||||||
Options exercisable, weighted average exercise price per share, end of period | $ 26.99 | $ 22.62 | |||||||||
Employee Stock Option China Incentive Plan [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | $ 200 | 2,100 | $ 100 | $ (600) | |||||||
Options outstanding | 186,446 | ||||||||||
Options outstanding, weighted average exercise price | $ 23.7 | ||||||||||
Granted | 0 | ||||||||||
Options fully vested or expected to vest, weighted average remaining contractual life | 7 years | ||||||||||
Common share options subject to vesting based on performance commitment | 186,446 | ||||||||||
Options forfeited | 186,446 | ||||||||||
Weighted average exercise price of options forfieted | $ 23.7 | ||||||||||
Fair value of options outstanding | $ 1,900 | ||||||||||
Share-based compensation costs, not yet recognized, period for recognition | 5 years | ||||||||||
Total fair value of awards granted | $ 3,900 | ||||||||||
CSSBP [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | 100 | 1,400 | |||||||||
Granted | 0 | ||||||||||
Amount for stock options or rights included in accrued liabilities | $ 500 | 400 | 400 | $ 400 | |||||||
Options vested and settled during period | $ 1,000 | ||||||||||
Total fair value of awards granted | $ 2,100 | ||||||||||
Restricted Share Units (RSUs) [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Number of RSUs outstanding | 1,131,831 | 785,254 | 973,637 | 595,834 | |||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 351,584 | 307,213 | |||||||||
RSUs outstanding, Weighted Average Grant Date Fair Value per Share | $ 32.61 | $ 29.77 | $ 32.27 | $ 27.13 | |||||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 615,028 | 296,218 | |||||||||
Share-based compensation costs, not yet recognized, period for recognition | 3 years | 3 years 3 months 18 days | |||||||||
Share-based compensation costs, not yet recognized | $ 29,370 | $ 19,300 | |||||||||
Tax benefits realized | $ 1,900 | $ 1,200 | |||||||||
Restricted Stock Unit Contingent Right | 1 | ||||||||||
Restricted Stock Unit Economic Equivalent | 1 | ||||||||||
Common shares issued in connection with vested RSUs | 190,298 | 117,793 | |||||||||
Common shares issued from treasury in connection with vested RSUs | 5,563 | 6,433 | |||||||||
Common shares purchased in open market by trustee in connection with RSUs | 181,227 | 111,360 | |||||||||
Shares withheld for tax withholding | 3,508 | 0 | |||||||||
Restricted Share Units (RSUs) [Member] | Non Employee [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | less than | ||||||||||
Share-based compensation costs recorded for the period | $ 0 | $ 100 | |||||||||
Restricted Share Units (RSUs) [Member] | Employee [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Share-based compensation costs recorded for the period | $ 3,300 | $ 1,500 | |||||||||
Common shares purchased in open market by trustee in connection with RSUs | 181,277 | ||||||||||
Weighted average price of common shares purchased in open market by trustee in connection with RSUs | $ 32.28 | ||||||||||
Maximum [Member] | Employee Stock Option [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Annual termination probability | 8.08% | 9.50% | |||||||||
Maximum [Member] | Restricted Share Units (RSUs) [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Stock based awards vesting period | 4 years | ||||||||||
Annual termination probability | 8.75% | ||||||||||
Minimum [Member] | Employee Stock Option [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Annual termination probability | 0.00% | 0.00% | |||||||||
Minimum [Member] | Restricted Share Units (RSUs) [Member] | |||||||||||
Capital Stock (Textuals) [Abstract] | |||||||||||
Stock based awards vesting period | 0 years | ||||||||||
Annual termination probability | 0.00% |
Segmented Information (Details
Segmented Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Geographical Information | ||
Revenues, total | $ 92,128 | $ 62,211 |
United States [Member] | ||
Geographical Information | ||
Revenues, total | 35,544 | 25,491 |
Canada [Member] | ||
Geographical Information | ||
Revenues, total | 7,077 | 1,883 |
Greater China [Member] | ||
Geographical Information | ||
Revenues, total | 24,939 | 17,796 |
Western Europe [Member] | ||
Geographical Information | ||
Revenues, total | 11,486 | 5,166 |
Asia (excluding Greater China) [Member] | ||
Geographical Information | ||
Revenues, total | 5,559 | 5,776 |
Russia and the CIS [Member] | ||
Geographical Information | ||
Revenues, total | 1,692 | 1,941 |
Latin America [Member] | ||
Geographical Information | ||
Revenues, total | 3,527 | 2,435 |
Rest of the World [Member] | ||
Geographical Information | ||
Revenues, total | $ 2,304 | $ 1,723 |
Segmented Information (Detail69
Segmented Information (Details Textual) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Segments | Mar. 31, 2015USD ($) | |
Segment Reporting (Textuals) [Abstract] | ||
Number of Reportable Segments | Segments | 7 | |
Marketing and commission costs | $ 0.7 | $ 0.5 |
Disclosure on Geographic Areas, Description of Revenue from External Customers | No single country in the Rest of the World, Western Europe, Latin America and Asia (excluding Greater China) classifications comprise more than 10% of total revenue. | |
Description of products and services from which each reportable segment derives its revenues | The Company has seven reportable segments identified by category of product sold or service provided: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to an exhibitor in exchange for a share of the box-office and concession revenues. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films for which the Company has distribution rights. The film post-production segment provides film post-production and film print services. The other segment includes certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. | |
Description of the basis of accounting for transactions between reportable segments | The accounting policies of the segments are the same as those described in note 2 to the audited consolidated financial statements included in the Company's 2015 Form 10-K. Transactions between the film production and IMAX DMR segment and the film post-production segment are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. | |
IMAX systems [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Advertising, marketing and commission costs | $ 0.5 | 0.3 |
Joint revenue sharing arrangements [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Advertising, marketing and commission costs | 0.1 | 0.1 |
Production and IMAX DMR [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Marketing costs | 2.3 | 1.3 |
Distribution [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Marketing costs | $ 0.7 | $ (0.1) |
Significant Customer 1 [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Percentage of total revenues represented by largest customer | 16.00% | 17.10% |
Employees Pension and Postret70
Employees Pension and Postretirement Benefits (Details 1) $ in Thousands | Mar. 31, 2016USD ($) |
SERP Benefits [Member] | |
Schedule of expected benefit payments | |
2016 (nine months remaining) | $ 0 |
2,017 | 19,871 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Thereafter | 0 |
Total expected future benefit payment | 19,871 |
Postretirement Benefits Executive [Member] | |
Schedule of expected benefit payments | |
2016 (nine months remaining) | 34 |
2,017 | 54 |
2,018 | 60 |
2,019 | 66 |
2,020 | 33 |
Thereafter | 524 |
Total expected future benefit payment | 771 |
Postretirement Benefits Canadian Employees [Member] | |
Schedule of expected benefit payments | |
2016 (nine months remaining) | 97 |
2,017 | 101 |
2,018 | 109 |
2,019 | 116 |
2,020 | 118 |
Thereafter | 1,350 |
Total expected future benefit payment | $ 1,891 |
Employees Pension and Postret71
Employees Pension and Postretirement Benefits (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employees Pension and Postretirement Benefits (Additional Textuals) [Abstract] | ||||
Description Of Defined Contribution Pension And Other Postretirement Plans | The Company also maintains defined contribution pension plans for its employees, including its executive officers. The Company makes contributions to these plans on behalf of employees in an amount up to 5% of their base salary subject to certain prescribed maximums. | |||
Maximum percentage of base salary contributed to Defined Contribution Pension Plan by Company | 5.00% | |||
SERP Benefits [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Accumulated benefit obligation for the SERP | $ 19,500 | $ 19,500 | ||
Benefit Obligation | 19,543 | 19,478 | $ 19,405 | |
Companies contribution and expenses | 0 | |||
Expected interest costs in the remainder of the year | 200 | |||
Postretirement Benefits Executive [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Benefit Obligation | $ 771 | 763 | ||
Maximum amount of Postretirement benefit expensed | less than | less than | ||
Maximum amount of Postretirement benefit expensed | $ 100 | $ 100 | ||
Postretirement Benefits Canadian Employees [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Benefit Obligation | $ 1,891 | $ 1,778 | ||
Maximum amount of Postretirement benefit expensed | less than | less than | ||
Maximum amount of Postretirement benefit expensed | $ 100 | $ 100 | ||
Canadian Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Companies contribution and expenses | 401 | 265 | ||
Us Internal Revenue Code [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Companies contribution and expenses | $ 220 | $ 130 |
Financial Instruments (Details
Financial Instruments (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | $ 10,577 | $ 11,617 |
Financed Sales Receivables | 110,387 | 106,854 |
Total | 120,964 | 118,471 |
In Good Standing [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 9,208 | 10,252 |
Financed Sales Receivables | 108,784 | 105,352 |
Total | 117,992 | 115,604 |
Pre-Approved Transactions [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 0 | 0 |
Financed Sales Receivables | 858 | 757 |
Total | 858 | 757 |
Transactions Suspended [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 1,369 | 1,365 |
Financed Sales Receivables | 745 | 745 |
Total | $ 2,114 | $ 2,110 |
Financial Instruments (Detail73
Financial Instruments (Details 3) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investment In Financing Receivables On Nonaccrual Status | ||
Net investment in leases recorded investment | $ 1,369 | $ 1,365 |
Net investment in leases related allowance | (672) | (672) |
Net financed sales receivables recorded investment | 745 | 745 |
Net financed sales receivables related allowance | (643) | (568) |
Total recorded investment | 2,114 | 2,110 |
Total related allowance | $ (1,315) | $ (1,240) |
Financial Instruments (Detail74
Financial Instruments (Details 4) - USD ($) $ in Thousands | Mar. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Jan. 01, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | $ 6,117 | $ 4,561 | |||
Related Unbilled Recorded Investment | 114,847 | 113,910 | |||
Total Recorded Investment | 120,964 | 118,471 | |||
Related Allowances | (1,315) | (1,240) | |||
Recorded Investment Net of Allowances | 119,649 | 117,231 | |||
Financing Receivables 1 To 29 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 2,024 | 1,748 | |||
Financing Receivables 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 695 | 1,190 | |||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 3,398 | 1,623 | |||
Net Investment in Leases [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 976 | 1,463 | |||
Related Unbilled Recorded Investment | 9,601 | 10,154 | |||
Total Recorded Investment | 10,577 | 11,617 | |||
Related Allowances | (672) | $ (672) | (672) | $ (972) | $ (972) |
Recorded Investment Net of Allowances | 9,905 | 10,945 | |||
Net Investment in Leases [Member] | Financing Receivables 1 To 29 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 166 | 840 | |||
Net Investment in Leases [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 62 | 177 | |||
Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 748 | 446 | |||
Net Financed Sales Receivables [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 5,141 | 3,098 | |||
Related Unbilled Recorded Investment | 105,246 | 103,756 | |||
Total Recorded Investment | 110,387 | 106,854 | |||
Related Allowances | (643) | $ (568) | (568) | $ (494) | $ (494) |
Recorded Investment Net of Allowances | 109,744 | 106,286 | |||
Net Financed Sales Receivables [Member] | Financing Receivables 1 To 29 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 1,858 | 908 | |||
Net Financed Sales Receivables [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 633 | 1,013 | |||
Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 2,650 | 1,177 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 3,306 | 1,485 | |||
Related Unbilled Recorded Investment | 11,240 | 11,871 | |||
Related Allowances | 0 | 0 | |||
Recorded Investment Net of Allowances | 14,546 | 13,356 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables 1 To 29 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 127 | 170 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 313 | 271 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 2,866 | 1,044 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 977 | 293 | |||
Related Unbilled Recorded Investment | 1,110 | 1,076 | |||
Related Allowances | 0 | 0 | |||
Recorded Investment Net of Allowances | 2,087 | 1,369 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables 1 To 29 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 56 | 41 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 148 | 47 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 773 | 205 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 2,329 | 1,192 | |||
Related Unbilled Recorded Investment | 10,130 | 10,795 | |||
Related Allowances | 0 | 0 | |||
Recorded Investment Net of Allowances | 12,459 | 11,987 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables 1 To 29 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 71 | 129 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables 30 To 89 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | 165 | 224 | |||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Billed Financing Receivables | $ 2,093 | $ 839 |
Financial Instruments (Detail75
Financial Instruments (Details 5) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 748 | $ 525 |
Unpaid Principal | 414 | 36 |
Related Allowance | (643) | (494) |
Average Recorded Investment | 748 | 525 |
Interest Income Recognized | 0 | 0 |
Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Financing Receivable with Related Allowance, Recorded Investment | 748 | 525 |
Impaired Financing Receivable With Related Allowance, Unpaid Principal | 414 | 36 |
Impaired Financing Receivable With Related Allowance, Average Recorded Investment | 748 | 525 |
Impaired Financing Receivable With Related Allowance, Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable With No Related Allowance, Recorded Investment | 0 | 0 |
Impaired Financing Receivable With No Related Allowance, Unpaid Principal | 0 | 0 |
Impaired Financing Receivable With No Related Allowance, Average Recorded Investment | 0 | 0 |
Impaired Financing Receivable With No Related Allowance, Interest Income Recognized | 0 | 0 |
Related Allowance | $ (643) | $ (494) |
Financial Instruments (Detail 6
Financial Instruments (Detail 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for credit losses: | ||
Beginning balance | $ 1,240 | |
Ending balance | 1,315 | |
Net Investment in Leases [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 672 | |
Charge-offs | 0 | $ 0 |
Recoveries | 0 | 0 |
Provision | 0 | 0 |
Ending balance | 672 | 972 |
Ending balance: individually evaluated for impairment | 672 | 972 |
Financing receivables: | ||
Ending balance: individually evaluated for impairment | 10,577 | 10,744 |
Net Financed Sales Receivables [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 568 | |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 75 | 0 |
Ending balance | 643 | 494 |
Ending balance: individually evaluated for impairment | 643 | 494 |
Financing receivables: | ||
Ending balance: individually evaluated for impairment | $ 110,387 | $ 95,950 |
Financial Instruments (Detail77
Financial Instruments (Details 7) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts - Forwards | $ 34,016 | $ 30,710 |
Financial Instruments (Detail78
Financial Instruments (Details 8) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair value of foreign exchange contracts | ||
Foreign exchange contracts - Forwards | $ (939) | $ (4,423) |
Other Assets [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of foreign exchange contracts | ||
Derivative Asset, Fair Value | 843 | 0 |
Accrued and other liabilities [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of foreign exchange contracts | ||
Derivative Liability, Fair Value | $ (1,782) | $ (4,423) |
Financial Instruments (Detail79
Financial Instruments (Details 9) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivatives in Foreign Currency Hedging relationships | ||
Derivative Gain (Loss) Recognized in OCI (Effective Portion) | $ 2,207 | $ (3,026) |
Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) | (1,277) | (635) |
Selling, general and administrative expenses [Member] | ||
Derivatives in Foreign Currency Hedging relationships | ||
Location of Derivative Loss Reclassified from AOCI into Income (Effective Portion) | (1,277) | (635) |
Fair Value Hedging [Member] | ||
Derivatives in Foreign Currency Hedging relationships | ||
Derivative Gain (Loss) Recognized in OCI (Effective Portion) | $ 2,207 | $ (3,026) |
Financial Instruments (Detail80
Financial Instruments (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financial Instruments (Textuals) [Abstract] | |||
Transfers into/out of Level 3 | $ 0 | $ 0 | |
Financing receivables indications of theaters with potential collection concerns | 60-89 days | ||
Financing receivables indications of theaters to review and assess | Once a theater’s aging exceeds 90 days, the Company’s policy is to review and assess collectibility on the theat | ||
Financing receivables indications of theaters with potential impairment | Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of further information or supporting documentation to the customer | ||
Estimated gain to be reclassified to earnings within the next twelve months | $ 1,800 | ||
Financial Instruments Additional (Textuals) [Abstract] | |||
Carrying value of investments accounted for under the equity method of accounting | 1,700 | $ 2,200 | |
Schedule of Available For Sale Securities [Line Items] | |||
Investment classified as available-for-sale - cost | 1,500 | ||
Investment classified as available-for-sale - fair value | 0 | 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Financial Instruments Additional (Textuals) [Abstract] | |||
Carrying value of investments accounted for under the equity method of accounting | 500 | 1,000 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Equity Accounted Investment [Member] | |||
Financial Instruments Additional (Textuals) [Abstract] | |||
Gross revenues of investment new business ventures | 400 | 0 | |
Cost of revenue of investment new business ventures | 2,200 | 1,700 | |
Net loss on equity-accounted investments | 1,800 | $ 1,700 | |
Other Debt Securities [Member] | |||
Schedule of Available For Sale Securities [Line Items] | |||
Investment classified as available-for-sale - cost | 2,500 | ||
Investment classified as available-for-sale - fair value | 200 | 200 | |
Fixed Income Securities [Member] | |||
Schedule of Available For Sale Securities [Line Items] | |||
Investment classified as available-for-sale - cost | $ 1,000 | $ 1,000 |
Non-Controlling Interests (De81
Non-Controlling Interests (Details Textuals) $ in Thousands | Feb. 10, 2015USD ($) | Apr. 08, 2014USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)yrFilm |
Redeemable Noncontrolling Interest [Line Items] | |||||
Aggregate subscription price | $ 0 | $ 40,000 | |||
Increase (Decrease) in Film Costs | $ (3,919) | $ (3,013) | |||
IMAX China Noncontrolling Interest | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Non-controlling interest description | On April 8, 2014, the Company announced the sale and issuance of 20.0% of the shares in IMAX China to entities owned and controlled by CMC Capital Partners ("CMC"), an investment fund focused on media and entertainment, and FountainVest Partners ("FountainVest"), a China-focused private equity firm. | ||||
Minority Interest Ownership Percentage By Company | 68.50% | ||||
Minority Interest Ownership Percentage By Noncontrolling Owners | 20.00% | ||||
IMAX China Noncontrolling Interest | Class C Shares [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Aggregate subscription price | $ 40,000 | $ 40,000 | |||
Other Noncontrolling Interest [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Non-controlling interest description | In 2014, the Company announced the creation of the Film Fund to co-finance a portfolio of 10 original large-format films. The Film Fund, which is intended to be capitalized with up to $50.0 million, will finance an ongoing supply of original films that the Company believes will be more exciting and compelling than traditional documentaries. The initial investment in the Film Fund was committed to by a third party in the amount of $25.0 million, with the possibility of contributing additional funds. The Company, which will contribute $9.0 million to the Film Fund over five years starting in 2014, anticipates the Film Fund will be self-perpetuating, with a portion of box office proceeds reinvested into the Film Fund to generate a continuous, steady flow of high-quality documentary content. 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. | ||||
Number Of Expected Original Films | Film | 10 | ||||
Film Fund Expected Capital Contribution | $ 50,000 | ||||
Increase (Decrease) in Film Costs | $ 7,700 | ||||
Other Noncontrolling Interest [Member] | Third Party [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Film Fund commitment amount | 25,000 | ||||
Other Noncontrolling Interest [Member] | IMAX [Member] | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Film Fund commitment amount | $ 9,000 | ||||
Contribution Period | yr | 5 |