Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | IMAX Corporation |
Entity Central Index Key | 0000921582 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock Shares Outstanding | 61,290,683 |
Trading Symbol | IMAX |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 123,084 | $ 141,590 |
Accounts receivable, net of allowance for doubtful accounts of $3,788 (December 31, 2018 - $3,174) | 93,913 | 93,309 |
Financing receivables, net of allowance for uncollectible amounts | 125,915 | 127,432 |
Variable consideration receivable from contracts | 36,657 | 35,985 |
Inventories | 44,814 | 44,560 |
Prepaid expenses | 10,757 | 10,294 |
Film assets | 16,552 | 16,367 |
Property, plant and equipment | 302,214 | 280,658 |
Other assets | 36,596 | 19,019 |
Deferred income taxes | 30,503 | 31,264 |
Other intangible assets | 33,187 | 34,095 |
Goodwill | 39,027 | 39,027 |
Total assets | 893,219 | 873,600 |
Liabilities | ||
Bank indebtedness | 57,850 | 37,753 |
Accounts payable | 22,106 | 32,057 |
Accrued and other liabilities | 99,360 | 97,724 |
Deferred revenue | 106,328 | 106,709 |
Total liabilities | 285,644 | 274,243 |
Commitments and contingencies | 0 | 0 |
Non-controlling interests | ||
Non-controlling interests | 6,329 | 6,439 |
Shareholders' equity | ||
Capital stock common shares - no par value. Authorized - unlimited number. 61,481,716 issued and 61,290,683 outstanding (December 31, 2018 - 61,478,168 issued and 61,433,589 outstanding) | 423,114 | 422,455 |
Less: Treasury stock, 191,033 shares at cost (December 31, 2018 - 44,579) | (4,207) | (916) |
Other equity | 176,587 | 179,595 |
Accumulated deficit | (77,120) | (85,385) |
Accumulated other comprehensive loss | (2,562) | (3,588) |
Total shareholders' equity attributable to common shareholders | 515,812 | 512,161 |
Non-controlling interests | 85,434 | 80,757 |
Total shareholders' equity | 601,246 | 592,918 |
Total liabilities and shareholders' equity | $ 893,219 | $ 873,600 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Assets | ||
Allowance for doubtful accounts | $ 3,788 | $ 3,174 |
Shareholders' equity | ||
Common stock, shares issued | 61,481,716 | 61,478,168 |
Common stock, shares outstanding | 61,290,683 | 61,433,589 |
Number of treasury shares held in trust for future settlement of share based awards | 191,033 | 44,579 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Equipment and product sales | $ 15,200 | $ 19,513 |
Services | 44,147 | 44,746 |
Rentals | 18,170 | 18,202 |
Finance income | 2,681 | 2,523 |
Revenues, total | 80,198 | 84,984 |
Costs and expenses applicable to revenues | ||
Equipment and product sales | 9,435 | 7,972 |
Services | 19,243 | 20,351 |
Rentals | 6,380 | 5,969 |
Cost and expenses applicable to revenues, total | 35,058 | 34,292 |
Gross margin | 45,140 | 50,692 |
Selling, general and administrative expenses | 27,649 | 27,959 |
Research and development | 1,136 | 3,592 |
Amortization of intangibles | 1,075 | 892 |
Receivable provisions, net of recoveries | 431 | 451 |
Exit costs, restructuring charges and associated impairments | 850 | 702 |
Income from operations | 13,999 | 17,096 |
Retirement benefits non-service expense | (160) | (124) |
Interest income | 570 | 247 |
Interest expense | (681) | (494) |
Income from operations before income taxes | 13,728 | 16,725 |
Movements in fair value of financial instruments | 2,491 | 0 |
Provision for income taxes | (3,648) | (4,453) |
Loss from equity-accounted investments, net of tax | (84) | (205) |
Net income | 12,487 | 12,067 |
Less: net income attributable to non-controlling interests | (4,222) | (3,562) |
Net income attributable to common shareholders | $ 8,265 | $ 8,505 |
Net income per share attributable to common shareholder's - basic and diluted: | ||
Net income per share attributable to common shareholder - basic | $ 0.13 | $ 0.13 |
Net income per share attributable to common shareholders - diluted | $ 0.13 | $ 0.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 12,487 | $ 12,067 |
Unrealized net gain (loss) from cash flow hedging instruments | 68 | (1,007) |
Realization of cash flow hedging net loss (gain) upon settlement | 319 | (220) |
Foreign currency translation adjustments | 1,085 | 2,052 |
Other comprehensive income, before tax | 1,472 | 825 |
Income tax (expense) benefit related to other comprehensive income | (101) | 321 |
Other comprehensive income, net of tax | 1,371 | 1,146 |
Comprehensive income | 13,858 | 13,213 |
Less: Comprehensive income attributable to non-controlling interests | (4,567) | (4,220) |
Comprehensive income attributable to common shareholders | $ 9,291 | $ 8,993 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 12,487 | $ 12,067 |
Adjustments to reconcile net income to cash from operations: | ||
Depreciation and amortization | 14,211 | 13,521 |
Write-downs, net of recoveries | 697 | 1,036 |
Change in deferred income taxes | 688 | (465) |
Stock and other non-cash compensation | 4,524 | 5,141 |
Unrealized foreign currency exchange (gain) loss | (24) | 35 |
Movements in fair value of financial instruments | (2,491) | 0 |
Loss from equity-accounted investments | 183 | 106 |
(Gain) loss on non-cash contribution to equity-accounted investees | (99) | 99 |
Investment in film assets | (3,740) | (6,259) |
Changes in other non-cash operating assets and liabilities | (27,105) | (9,818) |
Net cash (used in) provided by operating activities | (669) | 15,463 |
Investing Activities | ||
Purchase of property, plant and equipment | (2,237) | (6,588) |
Investment in joint revenue sharing equipment | (9,716) | (4,810) |
Acquisition of other intangible assets | (540) | (555) |
Investment in equity securities | (15,153) | 0 |
Net cash used in investing activities | (27,646) | (11,953) |
Financing Activities | ||
Increase in bank indebtedness | 35,000 | 0 |
Repayment of bank indebtedness | (15,000) | (500) |
Settlement of restricted share units and options | (4,987) | (173) |
Treasury stock purchased for future settlement of restricted share units | (4,207) | (5,992) |
Repurchase of subsidiary shares from a non-controlling interest | (1,767) | 0 |
Taxes withheld and paid on employee stock awards vested | (219) | (1,028) |
Common shares issued - stock options exercised | 803 | 0 |
Repurchase of common shares | 0 | (13,396) |
Issuance of subsidiary shares to a non-controlling interest | 0 | 4,449 |
Net cash provided by (used in) financing activities | 9,623 | (16,640) |
Effects of exchange rate changes on cash | 186 | (16) |
Decrease in cash and cash equivalents during period | (18,506) | (13,146) |
Cash and cash equivalents, beginning of period | 141,590 | 158,725 |
Cash and cash equivalents, end of period | $ 123,084 | $ 145,579 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Capital Stock [Member] | Other Equity [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] |
Balance, beginning of period at Dec. 31, 2017 | $ 440,664 | $ 175,300 | $ (87,592) | $ (626) | ||
Movement of Shareholders' Equity | ||||||
Change in shares held in treasury | (859) | |||||
Employee stock options exercised | 0 | |||||
Fair value of stock options exercised at the grant date | 0 | |||||
Common shares repurchased and retired | (4,494) | |||||
Employee stock options granted | 1,429 | |||||
Paid-in-capital for restricted share units granted | 3,398 | |||||
Paid-in-capital for restricted share units vested | (6,261) | |||||
Cash received from the issuance of common shares in excess of par value | 0 | |||||
Fair value of stock options exercised at the grant date | 0 | |||||
Repurchase of subsidiary shares from a non-controlling interest | $ 0 | 0 | ||||
Retrospective adjustment for adoption of new accounting pronouncements | Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | 27,571 | |||||
Net income attributable to common shareholders | 8,505 | 8,505 | ||||
Common shares repurchased and retired | (8,902) | |||||
Other Comprehensive income, net of tax | 8,993 | 488 | ||||
Balance, end of period at Mar. 31, 2018 | 435,311 | 173,866 | (60,418) | (138) | ||
Balance, beginning of period at Dec. 31, 2017 | $ 74,511 | |||||
Movement of Shareholders' Equity | ||||||
Retrospective adjustment for adoption of new accounting pronouncements (NCI) | Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | 377 | |||||
Net income attributable to non-controlling interests | 3,562 | 3,893 | ||||
Other comprehensive income, net of tax | (4,220) | 658 | ||||
Balance, end of period at Mar. 31, 2018 | 79,439 | |||||
Movement of Shareholders' Equity | ||||||
Total shareholders' equity | 628,060 | |||||
Total shareholders' equity | 592,918 | |||||
Balance, beginning of period at Dec. 31, 2018 | 512,161 | 421,539 | 179,595 | (85,385) | (3,588) | |
Movement of Shareholders' Equity | ||||||
Change in shares held in treasury | (3,291) | |||||
Employee stock options exercised | 636 | |||||
Fair value of stock options exercised at the grant date | 23 | |||||
Common shares repurchased and retired | 0 | |||||
Employee stock options granted | 2,106 | |||||
Paid-in-capital for restricted share units granted | 2,411 | |||||
Paid-in-capital for restricted share units vested | (5,902) | |||||
Cash received from the issuance of common shares in excess of par value | 167 | |||||
Fair value of stock options exercised at the grant date | (23) | |||||
Repurchase of subsidiary shares from a non-controlling interest | 1,767 | (1,767) | ||||
Retrospective adjustment for adoption of new accounting pronouncements | Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | 0 | |||||
Net income attributable to common shareholders | 8,265 | 8,265 | ||||
Common shares repurchased and retired | 0 | |||||
Other Comprehensive income, net of tax | 9,291 | 1,026 | ||||
Balance, end of period at Mar. 31, 2019 | 515,812 | $ 418,907 | $ 176,587 | $ (77,120) | $ (2,562) | |
Balance, beginning of period at Dec. 31, 2018 | 80,757 | 80,757 | ||||
Movement of Shareholders' Equity | ||||||
Retrospective adjustment for adoption of new accounting pronouncements (NCI) | Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member] | 0 | |||||
Net income attributable to non-controlling interests | 4,222 | 4,332 | ||||
Other comprehensive income, net of tax | (4,567) | 345 | ||||
Balance, end of period at Mar. 31, 2019 | 85,434 | $ 85,434 | ||||
Movement of Shareholders' Equity | ||||||
Total shareholders' equity | $ 601,246 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | |
Basis of Presentation | IMAX CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tabular amounts in thousands of U.S. dollars, unless otherwise stated) (Unaudited) 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”). These condensed consolidated financial statements include the accounts of the Company, 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 business 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 adjustments 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”). The Company has ten film production companies that are VIEs. For five of the Company’s film production companies, the Company has determined that it is the primary beneficiary of these entities as the Company has the power to direct the activities of the respective VIE that most significantly impact the respective VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be significant to the respective VIE or the right to receive benefits from the respective VIE that could potentially be significant to the respective VIE. The majority of these consolidated assets are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in note 16 (b). For the other five film production companies which are VIEs, the Company does 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 used the equity method of accounting for these entities. A loss in value of an investment other than a temporary decline is recognized as a charge to the condensed consolidated statements of operations . Total assets and liabilities of the Company’s consolidated VIEs are as follows: March 31, December 31, 2019 2018 Total assets $ 11,783 $ 12,203 Total liabilities $ 14,493 $ 11,573 Total assets and liabilities of the VIE entities which the Company does not consolidate are as follows: March 31, December 31, 2019 2018 Total assets $ 447 $ 447 Total liabilities $ 368 $ 362 The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323 “Investments – Equity Method and Joint Ventures” (“ASC 323”) 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-accounted 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 2018 Annual Report on Form 10-K for the year ended December 31, 2018 (“the 2018 Form 10-K”) which should be 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, 2018 , except as noted below. |
New Accounting Standards and Ac
New Accounting Standards and Accounting Changes | 3 Months Ended |
Mar. 31, 2019 | |
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 The Company adopted several standards including the following material standards on January 1, 2019, which are effective for annual periods ending after December 31, 2018, and for annual and interim periods thereafter. In 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASC Topic 842”). The Company adopted 2016-02 and several associated ASUs on January 1, 2019. See note 3 for a further discussion of the Company’s adoption of ASC Topic 842. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The adoption of this standard will be applied prospectively and did not have a material impact on the Company’s condensed consolidated financial statements. In December 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The adoption of this standard will be applied prospectively and did not have an impact on the Company, see note 15(d) for additional disclosure regarding the Company’s hedging arrangements. Recently Issued FASB Accounting Standard Codification Updates In March 2019, the FASB issued ASU No. 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350)” (“ASU 2019-02”). The purpose of ASU 2019-02 is to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization, as well as requiring an entity to reassess estimates of the use of a film in a film group. In addition, ASU 2019-02 will require an entity to test for impairment at a film group level if it is predominantly monetized with other films. Amendments in this update would be applied prospectively, and for public entities, the amendments in ASU 2019-02 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2019-02, on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The purpose of ASU 2016-13 is to require a financial asset measured on the amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. For public entities, the amendments in ASU 2016-13 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2016-13 on its condensed consolidated financial statements. The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. Accounting standards updates that are not noted above were assessed and determined to be not applicable or not significant to the Company’s condensed consolidated financial statements for the period ended March 31, 2019. |
Adoption of ASC Topic 842, Leas
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Standards and Accounting Changes [Abstract] | |
Adoption of ASC Topic 842, Leases | 3. Adoption of ASC Topic 842, Leases, effective January 1, 2019 On January 1, 2019, the Company adopted ASC Topic 842 “Leases”. The standard was issued to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. As a lessee, the adoption of the standard resulted in the Company recording a net increase to net lease assets and lease liabilities of approximately $17.5 million as at January 1, 2019. The gross right-of-use assets and lease liabilities amounted to $20.0 million, while prepaid expenses of less than $0.1 million and unamortized lease inducements and other accruals of $2.5 million were reclassed from accrued liabilities to offset the applicable right-of-use asset. The Company mainly leases office and warehouse storage space. Office equipment is generally purchased outright. Adoption of ASC Topic 842 did not change the lease classification of its leases. The leases continue to be classified as operating leases similar to the guidance under ASC Topic 840. The adoption of ASC Topic 842 did not materially impact the Company’s net earnings and had no impact on cash flows. As a lessor, a number of the Company’s leases of IMAX theater systems are classified as sales-type leases. The accounting treatment of its lease arrangements for IMAX theater systems has not changed under Topic ASC 842 as compared to guidance under ASC Topic 840, as the Company has very few sales-type leases with variable consideration tied to an index. The Company adopted ASC Topic 842, utilizing the modified retrospective transition method, which allowed the Company to adopt the standard as of the date of initial application. Prior year comparative amounts are not required to be restated and are presented in accordance with ASC Topic 840, “Leases” or other applicable standards effective prior to January 1, 2019. The Company has elected the ‘package of practical expedients’ permitted under the transition guidance within ASC Topic 842, which permits the Company to carry forward the historical lease classification and not reassess whether any expired or existing contracts are or contain leases. In addition, the Company is not required to reassess initial direct costs for any existing leases. The Company did not elect the land easements and the use of hindsight practical expedients in determining the lease term for existing leases. ASC Topic 842 also provides practical expedients for an entity’s ongoing accounting. The Company has elected the short-term lease recognition exemption for all leases that qualify. As a result, for those leases with a term of less than 12 months, it will not recognize right-of-use assets or lease liabilities. The Company also elected the practical expedient to not separate lease and non-lease components for all of its leases regardless of whether the Company is the lessee or a lessor to the lease. The following table presents the impact from the adoption of ASC Topic 842 on the Company’s assets and liabilities in the condensed consolidated balance sheet: Balance at Balance at December 31, ASC Topic 842 January 1, 2018 Adjustments 2019 Assets Property, plant and equipment $ 280,658 $ 17,462 $ 298,120 Prepaid expenses 10,294 (36) 10,258 Liabilities Accrued and other liabilities 97,724 17,426 115,150 |
Lease Arrangements And Financin
Lease Arrangements And Financing Receivables | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
IMAX Corporation as a Lessor | 4. Lease Arrangements and Financing Receivables IMAX Corporation as a Lessor: A number of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s lease arrangements are described in note 2(m) in the Company’s 2018 Form 10-K. The Company classifies its lease arrangements at inception of the arrangement and, if required, after a modification of the lease arrangement, to determine whether they are sales-type leases or operating leases. Under the Company’s lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s lease portfolio terms are typically non-cancellable for 10 to 20 years with renewal provisions from inception. Except for those sales arrangements that are classified as sales-type leases, the Company’s leases generally do not contain an automatic transfer of title at the end of the lease term. The Company’s lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company has assessed the nature of its joint revenue sharing arrangements and concluded that, based on the guidance in the Revenue Recognition Topic of the ASC, the arrangements contain a lease. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s joint revenue sharing arrangements are typically non-cancellable for 10 years or longer with renewal provisions. Title to equipment under joint revenue sharing arrangements does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. See additional details regarding the Company’s traditional and hybrid joint revenue sharing arrangements as described in note 2(m) in the Company’s 2018 Form 10-K. 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, 2019 2018 Gross minimum lease payments receivable $ 9,776 $ 10,499 Unearned finance income (793) (902) Minimum lease payments receivable 8,983 9,597 Accumulated allowance for uncollectible amounts (155) (155) Net investment in leases 8,828 9,442 Gross financed sales receivables 153,139 155,044 Unearned finance income (35,213) (36,215) Financed sales receivables 117,926 118,829 Accumulated allowance for uncollectible amounts (839) (839) Net financed sales receivables 117,087 117,990 Total financing receivables $ 125,915 $ 127,432 Net financed sales receivables due within one year $ 27,836 $ 26,911 Net financed sales receivables due after one year $ 89,251 $ 91,079 As at March 31, 2019 , the financed sale receivables had a weighted average effective interest rate of 9.0 % (December 31, 2018 — 9.1 %). As at March 31, 2019 , sales-type lease arrangements had a weighted average effective interest rate of 7.9% and weighted average remaining lease term of 7.2 years (December 31, 2018 — 8.0% and 7.3 years, respectively). |
IMAX Corporation as a Lessee | IMAX Corporation as a Lessee : The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The Company assumed that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. The incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. The components of lease expense are as follows: Three Months Ended March 31, 2019 2018 Operating lease cost (1) SG&A Expenses $ 243 $ 1,155 Amortization of lease assets SG&A Expenses 531 - Interest on lease liabilities SG&A Expenses 268 - Total lease cost $ 1,042 $ 1,155 _____ _____ (1) Includes short-term leases and variable lease costs, which are not significant for the three months ended, March 31, 2019. Supplemental balance sheet information related to leases are as follows: March 31, January 1, 2019 2019 Assets Operating Leases Property, plant and equipment $ 16,991 $ 17,462 Liabilities Operating Leases (1) Accrued and other liabilities $ 19,460 $ 19,960 __________ (1) The Company recorded lease liabilities of approximately $20.0 million as at January 1, 2019 upon initial adoption of ASC Topic 842. In addition, unamortized lease inducements and other accruals of $2.5 million were reclassed from accrued liabilities to offset against the applicable right-of-use asset. March 31, January 1, 2019 2019 Weighted-average remaining lease term (years) Operating Leases 8.1 8.3 Weighted-average discount rate Operating Leases 5.80 % 5.80 % Maturities of lease liabilities are as follows: Operating Leases 2019 (nine months remaining) $ 2,739 2020 3,451 2021 3,047 2022 2,283 2023 2,175 Thereafter 11,310 Total lease payments $ 25,005 Less: interest expense (5,545) Present value of lease liabilities $ 19,460 As of December 31, 2018 , under ASC Topic 840, minimum lease payments under non-cancelable operating leases by period were expected to be as follows: Operating Leases 2019 $ 3,847 2020 2,790 2021 2,491 2022 1,843 2023 1,759 Thereafter 9,657 Total lease payments $ 22,387 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Inventories | 5. Inventories March 31, December 31, 2019 2018 Raw materials $ 29,074 $ 29,705 Work-in-process 4,082 4,733 Finished goods 11,658 10,122 $ 44,814 $ 44,560 At March 31, 2019 , finished goods inventory for which title had passed to the customer and revenue was deferred amounted to $ 2.7 million (December 31, 2018 — $ 1.9 million). There were no write-downs for excess and obsolete inventory based on current estimates of net realizable value considering future events and conditions, during the three months ended March 31, 2019 and 2018 . |
Credit Facility and Other Finan
Credit Facility and Other Financing Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Credit Facility and Other Financing Arrangements [Abstract] | |
Credit Facility and Other Financing Arrangements [Text Block] | 6. Credit Facility and Other Financing Arrangements Credit Facility On June 28, 2018, the Company entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto. The Credit Agreement expands the Company’s revolving borrowing capacity from $200.0 million to $300.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, depending on the mix of revolving and term loans comprising the incremental facility. The new facility (the “Credit Facility”) matures on June 28, 2023. Loans under the Credit Facility will bear interest, at the Company’s option, at (i) LIBOR plus a margin ranging from 1.00% to 1.75% per annum; or (ii) the U.S. base rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company’s Total Leverage Ratio (as defined in the Credit Agreement). The Credit Agreement provides that the Company is required to maintain a Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) as of the last day of any Fiscal Quarter (as defined in the Credit Agreement) of no greater than 3.25:1.00. In addition, the Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, capital expenditures, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets. The Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. The Company’s obligations under the Credit Agreement are guaranteed by certain of the Company’s subsidiaries (the “Guarantors”), and are secured by first-priority security interests in substantially all the assets of the Company and the Guarantors. The Company was in compliance with all of its requirements at March 31, 2019 . Total amounts drawn and available under the Credit Facility at March 31, 2019 were $ 60.0 million and $ 240.0 million, respectively (December 31, 2018 — $ 40.0 million and $ 260.0 million, respectively). The effective interest rate for the three months ended March 31, 2019 was 3.57 % ( 2018 — n/a). As at March 31, 2019 , the Company did not have any letters of credit and advance payment guarantees outstanding (December 31, 2018 — $nil), under the Credit Facility. Working Capital Loan On July 5, 2018, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, entered into an unsecured revolving facility for up to 200.0 million Renminbi (approximately $30.0 million U.S. Dollars) to fund ongoing working capital requirements. The total amounts drawn and available under the working capital loan at March 31, 2019 and December 31, 2018 were nil and 200.0 million Renminbi, respectively ($nil and approximately $30.0 million U.S. Dollars, respectively). Bank indebtedness includes the following: March 31, December 31, 2019 2018 Credit Facility $ 60,000 $ 40,000 Deferred charges on debt financing (2,150) (2,247) $ 57,850 $ 37,753 Wells Fargo Foreign Exchange Facility Within the Credit Facility, the Company is able to purchase foreign currency forward contracts and/or other swap arrangements. The net settlement risk on its foreign currency forward contracts was $ 0.8 million at March 31, 2019 , as the notional value exceeded the fair value of the forward contracts. As at March 31, 2019 , the Company has $ 43.9 million in notional value of such arrangements outstanding. Bank of Montreal Facility As at March 31, 2019 , the Company had available a $ 10.0 million facility (December 31, 2018 — $ 10.0 million) with the Bank of Montreal for use solely in conjunction with the issuance of performance guarantees and letters of credit fully insured by Export Development Canada (the “Bank of Montreal Facility”). As at March 31, 2019 , the Company did not have any letters of credit and advance payment guarantees outstanding (December 31, 2018 — $nil) under the Bank of Montreal Facility. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2019 | |
Commitments, Contingencies and Guarantees [Abstract] | |
Commitments, Contingencies and Guarantees | 7. Commitments, Contingencies and Guarantees Commitments In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancellable payment obligations, for which it is liable in future periods. These arrangements can include terms binding the Company to minimum payments and/or penalties if it terminates the agreement for any reason other than an event of default as described by the agreement. Contingencies and guarantees The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. In accordance with the Contingencies Topic of the FASB ASC, the Company will make a provision for a liability when it is both probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company believes it has adequate provisions for any such matters. The Company reviews these provisions in conjunction with any related provisions on assets related to the claims at least quarterly and adjusts these provisions to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other pertinent information related to the case. Should developments in any of these matters outlined below cause a change in the Company’s determination as to an unfavorable outcome and result in the need to recognize a material provision, or, should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on the Company’s results of operations, cash flows, and financial position in the period or periods in which such a change in determination, settlement or judgment occurs. The Company expenses legal costs relating to its lawsuits, claim and proceedings as incurred. In January 2004, the Company and IMAX Theatre Services Ltd., a subsidiary of the Company, commenced an arbitration seeking damages before the International Court of Arbitration of the International Chamber of Commerce (the “ICC”) with respect to the breach by Electronic Media Limited (“EML”) of its December 2000 agreement with the Company. In June 2004, the Company commenced a related arbitration before the ICC against EML’s affiliate, E-City Entertainment (I) PVT Limited (“E-City”). On March 27, 2008, the arbitration panel issued a final award in favor of the Company in the amount of $11.3 million, consisting of past and future rents owed to the Company, plus interest and costs, as well as an additional $2,512 each day in interest from October 1, 2007 until the date the award is paid. In July 2008, E-City commenced a proceeding in Mumbai, India seeking an order that the ICC award may not be recognized in India and on June 10, 2013, the Bombay High Court ruled that it had jurisdiction over the proceeding filed by E-City. The Company appealed that ruling to the Supreme Court of India, and on March 10, 2017, the Supreme Court set aside the Bombay High Court’s judgement and dismissed E-City’s petition. On March 29, 2017, the Company filed an Execution Application in the Bombay High Court seeking to enforce the ICC award against E-City and several related parties. That matter is currently pending. The Company has also taken steps to enforce the ICC final award outside of India. In December 2011, the Ontario Superior Court of Justice issued an order recognizing the final award and requiring E-City to pay the Company $30,000 to cover the costs of the application, and in October 2015, the New York Supreme Court recognized the Canadian judgment and entered it as a New York judgment. The Company intends to continue pursuing its rights and seeking to enforce the award, although no assurances can be given with respect to the ultimate outcome. In March 2013, IMAX Shanghai received notice from the Shanghai office of the General Administration of Customs (“Customs Authority”) that it had been selected for a customs audit (the “Audit”). In the course of the Audit, the Customs Authority discovered the underpayment by IMAX Shanghai of the freight and insurance portion of the customs duties and taxes applicable to the importation of certain IMAX theater systems during the period from October 2011 through March 2013. Though IMAX Shanghai’s importation agent accepted responsibility for the error giving rise to the underpayment, the matter was transferred first to the Anti-Smuggling Bureau (the “ASB”) of the Customs Authority and then to the Third Division of Shanghai People’s Procuratorate for further review. During the year ended December 31, 2017, at the request of the ASB, IMAX Shanghai paid approximately $0.15 million to the ASB to satisfy the amount owing as a result of the underpayment and accrued approximately $0.3 million in respect of the fines that it believed to be likely to result from the matter. Given that the amount of the underpayment exceeded RMB 200,000, the applicable threshold for treatment as a criminal matter, on August 8, 2018, IMAX Shanghai was informed that its logistics function, but not IMAX Shanghai itself, would face criminal charges. A preliminary court conference was held on September 5, 2018, and hearings took place on October 24, 2018 and January 22, 2019. On March 6, 2019, the Shanghai No. 3 Intermediate People’s Court imposed a fine of RMB 570,000, approximately $85,000 or 75% of the underpayment, on IMAX Shanghai’s logistics function. As of March 31, 2019, this fine has been paid and the legal proceedings were concluded. On November 11, 2013, Giencourt Investments, S.A. (“Giencourt”) initiated arbitration before the International Centre for Dispute Resolution in Miami, Florida, based on alleged breaches by the Company of its theater agreement and related license agreement with Giencourt. An arbitration hearing for witness testimony was held during the week of December 14, 2015. At the hearing, Giencourt’s expert identified monetary damages of up to approximately $10.4 million, which Giencourt sought to recover from the Company. The Company asserted a counterclaim against Giencourt for breach of contract and sought to recover lost profits in excess of $24.0 million under the agreements. Subsequently, in December 2015, Giencourt made a motion to the panel seeking to enforce a purported settlement of the matter based on negotiations between Giencourt and the Company. The panel held a final hearing with closing arguments in October 2016. On February 7, 2017, the panel issued a Partial Final Award and on July 21, 2017, the panel issued a Final Award (collectively, the “Award”), which held that the parties had reached a binding settlement, and therefore the panel did not reach the merits of the dispute. The Company strongly disputes that discussions about a potential resolution of this matter amounted to an enforceable settlement. In October 2017, the Company filed a petition to vacate the arbitration award in the United States Court for the Southern District of Florida on various grounds, including that the panel exceeded its jurisdiction. The petition is still pending. At this time, the Company is unable to determine the amounts that it may owe pursuant to the Award, or the timing of any such payments, and therefore no assurances can be given with respect to the ultimate outcome of the matter . 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 guarantee. The Guarantees Topic of the FASB ASC defines a guarantee to be a contract (including an indemnity) that contingently requires the Company to make payments (either in cash, financial instruments, other assets, shares of its stock or provision of services) to a third party based on (a) changes in an underlying interest rate, foreign exchange rate, equity or commodity instrument, index or other variable, that is related to an asset, a liability or an equity security of the counterparty, (b) failure of another party to perform under an obligating agreement or (c) failure of another third party to pay its indebtedness when due. Financial Guarantees The Company has provided no significant financial guarantees to third parties. Product Warranties The Company’s accrual for product warranties, which was recorded as part of accrued and other liabilities in the condensed consolidated balance sheets, was $0.2 million and $0.2 million at March 31, 2019 and December 31, 2018 , respectively. Director/Officer Indemnifications The Company’s General By-law contains an indemnification of its directors/officers, former directors/officers and persons who have acted at its request to be a director/officer of an entity in which the Company is a shareholder or creditor, to indemnify them, to the extent permitted by the Canada Business Corporations Act , against expenses (including legal fees), judgments, fines and any amounts actually and reasonably incurred by them in connection with any action, suit or proceeding in which the directors and/or officers are sued as a result of their service, if they acted honestly and in good faith with a view to the best interests of the Company. In addition, the Company has entered into indemnification agreements with each of its directors in order to effectuate the foregoing. The nature of the indemnification prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. The Company has purchased directors’ and officers’ liability insurance. No amount has been accrued in the condensed consolidated balance sheets as at March 31, 2019 and December 31, 2018 , with respect to this indemnity. Other Indemnification Agreements In the normal course of the Company’s operations, the Company provides indemnifications to counterparties in transactions such as: theater system lease and sale agreements and the supervision of installation or servicing of the theater systems; film production, exhibition and distribution agreements; real property lease agreements; and employment agreements. These indemnification agreements require the Company to compensate the counterparties for costs incurred as a result of litigation claims that may be suffered by the counterparty as a consequence of the transaction or the Company’s breach or non-performance under these agreements. While the terms of these indemnification agreements vary based upon the contract, they normally extend for the life of the agreements. A small number of agreements do not provide for any limit on the maximum potential amount of indemnification; however, virtually all of the Company’s system lease and sale agreements limit such maximum potential liability to the purchase price of the system. The fact that the maximum potential amount of indemnification required by the Company is not specified in some cases prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. Historically, the Company has not made any significant payments under such indemnifications and no amounts have been accrued in the condensed consolidated financial statements with respect to the contingent aspect of these indemnities. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Operations Supplemental Information | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | |
Condensed Consolidated Statements of Operations Supplemental Information | 8. 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 $ 0.5 million for the three months ended March 31, 2019 ( 2018 — $ 0.7 million). Film exploitation costs, including advertising and marketing, totaled $ 4.5 million for the three months ended March 31, 2019 ( 2018 — $ 5.3 million), and are recorded in costs and expenses applicable to revenues-services as incurred. Commissions are recognized as costs and expenses applicable to Revenues – Rentals in the month they are earned. These costs totaled a recovery of $ 0.2 million for the three months ended March 31, 2019 ( 2018 — expense of less than $ 0.1 million). Direct advertising and marketing costs for each theater are charged to costs and expenses applicable to Revenues – Rentals as incurred. These costs totaled an expense of $ 0.2 million for the three months ended March 31, 2019 ( 2018 — $ 0.1 million). Foreign Exchange Included in selling, general and administrative expenses for the three months ended March 31, 2019 is a loss of $ 0.2 million ( 2018 — loss of $ 0.1 million) for net foreign exchange gains/losses related to the translation of foreign currency 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 office and concession revenues, and in some cases a small upfront or initial payment, in exchange for placing a theater system at the theater operator’s venue. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s joint revenue sharing arrangements are typically non-cancellable for 10 years or longer with renewal provisions. Title to equipment under joint revenue sharing arrangements generally does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company has signed joint revenue sharing agreements with 35 exhibitors for a total of 1,198 theater systems, of which 809 theaters were operating as at March 31, 2019 , 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 2018 Form 10-K. Amounts attributable to transactions arising between the Company and its customers under joint revenue sharing arrangements are included in Revenue — Equipment and product sales and Revenue — Rentals and for the three months ended March 31, 2019 amounted to $ 20.4 million ( 2018 — $ 17.9 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 cost from a percentage of the box-office receipts of the film, which in recent years has averaged approximately 12.5% outside of Greater China and a lower percentage for certain films within Greater China. The Company does not typically hold distribution rights or the copyright to these films. For the three months ended March 31, 2019 , the majority of IMAX DMR revenue was earned from the exhibition of 24 IMAX DMR films ( 2018 – 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 2018 Form 10-K. Amounts attributable to transactions arising between the Company and its customers under IMAX DMR arrangements are included in Revenues – Services and for the three months ended March 31, 2019 amounted to $ 28.0 million ( 2018 — $ 27.1 million). Co-Produced Film Arrangements In certain film arrangements, the Company co-produces a film with a third party whereby the third party retains the copyright and rights to the film. In some cases, the Company obtains exclusive theatrical distribution rights to the film. Under these arrangements, both parties contribute funding to the Company’s partly-owned subsidiary for the production and distribution of the film and for associated exploitation costs. As at March 31, 2019 , the Company has two significant co-produced film arrangements which represent the VIE total assets balance of $ 11.8 million and liabilities balance of $ 14.5 million and three other co-produced film arrangements, the terms of which are similar. The accounting policies relating to co-produced film arrangements are disclosed in notes 2(a) and 2(m) of the Company’s 2018 Form 10-K. For the three months ended March 31, 2019 , expenses totaling $ 0.2 million ( 2018 —$ 0.2 million) attributable to transactions between the Company and other parties involved in the production of the films have been included in cost and expenses applicable to Revenues – Services. As at March 31, 2019 , the Company is participating in one significant co-produced television arrangement. This arrangement is not a VIE. For the three months ended March 31, 2019 , revenues of $nil ( 2018 —$ 0.4 million) and costs and expenses applicable to revenues of $nil ( 2018 — $ 0.4 million) attributable to this collaborative arrangement have been recorded in Revenue – Services and Costs and expenses applicable to Revenues – Services, respectively. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows Supplemental Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Condensed Consolidated Statements of Cash Flows Supplemental Information | 9. Condensed Consolidated Statements of Cash Flows Supplemental Information Depreciation and amortization are comprised of the following: Three Months Ended March 31, 2019 2018 Film assets $ 3,695 $ 3,571 Property, plant and equipment Joint revenue sharing arrangements 5,605 4,840 Other property, plant and equipment 2,936 3,442 Other intangible assets 1,425 1,217 Other assets 433 310 Deferred financing costs 117 141 $ 14,211 $ 13,521 Write-downs, net of recoveries, are comprised of the following: Three Months Ended March 31, 2019 2018 Accounts receivable $ 431 $ 451 Property, plant and equipment (1) 86 421 Joint revenue sharing arrangements (1) 180 126 Other intangible assets - 38 $ 697 $ 1,036 __________ (1) The Company recognized asset impairment charges of $0.1 million (2018 — $0.5 million) reflecting property, plant and equipment that were no longer in use. In the three months ended March 31, 2019, the Company recorded a charge of $0.1 million in cost of sales applicable to Equipment and product sales and less than $0.1 million in revenue applicable to Equipment and product sales upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. No such charge was recorded in the three months ended March 31, 2018. Significant non-cash investing and financing activities are comprised of the following: Three Months Ended March 31, 2019 2018 Net accruals related to: Purchases of property, plant and equipment $ (401) $ 364 Investment in joint revenue sharing arrangements 200 (20) Acquisition of other intangible assets 12 5 $ (189) $ 349 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 10. 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 decreases in the year, changes due to foreign exchange, changes in the Company’s valuation allowance based on the Company’s recoverability assessments of deferred tax assets, and favorable or unfavorable resolution of various tax examinations. During the quarter ended March 31, 2019 , there was no change in the 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 necessary. As at March 31, 2019 , the Company had net deferred income tax assets after valuation allowance of $ 30.5 million (December 31, 2018 — $ 31.3 million), which consists of a gross deferred income tax asset of $ 30.7 million (December 31, 2018 — $ 31.5 million), against which the Company is carrying a $ 0.2 million valuation allowance (December 31, 2018 — $ 0.2 million). For the quarter ended March 31, 2019 , the Company recorded a provision for income taxes of $ 3.6 million. Included in the provision for income taxes was an expense of $0.4 million related to its provision for uncertain tax positions and an expense of $0.3 million related to its provision for tax shortfalls related to stock-based compensation costs recognized in the period. In 2018, the Company finalised its accounting related to changes in the U.S. Tax Act. Among other things, the Company has finalised provisional estimates and tax calculations, which included an evaluation of recent interpretations and new guidance issued. No adjustments were recognised during the year ended December 31, 2018, and the provisional re-measurement effect on deferred taxes recorded in the 2017 year reflects the total effect of the changes in the U.S. Tax Act. The Company has not provided for taxes on cumulative earnings of non-Canadian affiliates and associated companies that have been reinvested indefinitely. Taxes are provided for earnings of non-Canadian affiliates and associated companies when the Company determines that such earnings are no longer indefinitely reinvested. Cash held outside of North America as at March 31, 2019 was $102.7 million (December 31, 2018 — $121.9 million), of which $53.5 million was held in the People’s Republic of China (“PRC”) (December 31, 2018 — $54.7 million). The Company's intent is to permanently reinvest these amounts outside of Canada and the Company does not currently anticipate that it will need funds generated from foreign operations to fund North American operations. In the event funds from foreign operations are needed to fund operations in North America and if withholding taxes have not already been previously provided, the Company would be required to accrue and pay these additional withholding tax amounts on repatriation of funds from China to Canada. The Company currently estimates this amount to be $9.2 million (December 31, 2018 — $8.4 million). Income Tax Effect on Other Comprehensive Income The income tax (expense) benefit included in the Company’s other comprehensive income are related to the following items: Three Months Ended March 31, 2019 2018 Unrealized change in cash flow hedging instruments $ (83) $ 263 Realized change in cash flow hedging instruments upon settlement (18) 58 $ (101) $ 321 |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2019 | |
Capital Stock [Abstract] | |
Capital Stock | 11. Capital Stock Stock-Based Compensation Compensation costs recorded in the condensed consolidated statements of operations for the Company’s stock-based compensation plans were $ 4.4 million for the three months ended March 31, 2019 ( 2018 — $ 4.8 million). The following reflects the stock-based compensation expense recorded to the respective financial statement line items: Three Months Ended March 31, 2019 2018 Cost and expenses applicable to revenues $ 374 $ 96 Selling, general and administrative expenses 3,903 4,417 Research and development 85 334 Exit costs, restructuring charges and associated impairments - (19) $ 4,362 $ 4,828 The following reflects a breakdown of the Company’s stock-based compensation expense by each plan type: Three Months Ended March 31, 2019 2018 Stock options $ 1,907 $ 1,389 Restricted Share Units 2,110 3,215 China Long Term Incentive Plan Restricted Share Units 279 183 China Options 66 41 $ 4,362 $ 4,828 Stock Option Summary The following table summarizes certain information in respect of option activity under the Company’s Stock Option Plan (“SOP”) and IMAX Amended and Restated Long Term Incentive Plan (“IMAX LTIP”) for the three months ended March 31 : Weighted Average Exercise Price Per Share Number of Shares 2019 2018 2019 2018 Options outstanding, beginning of period 5,465,046 5,082,100 $ 27.63 $ 29.31 Granted 1,006,931 878,629 20.66 22.06 Exercised (31,235) - 20.36 - Forfeited (79,055) (45,164) 23.71 31.13 Expired (304,472) (10,000) 25.94 27.09 Options outstanding, end of period 6,057,215 5,905,565 26.64 28.22 Options exercisable, end of period 3,886,592 4,133,351 28.74 29.14 Restricted Share Units (“RSU”) Summary The following table summarizes certain information in respect of RSU activity under the IMAX LTIP for the three months ended March 31 : Number of Awards Weighted Average Grant Date Fair Value Per Share 2019 2018 2019 2018 RSUs outstanding, beginning of period 1,033,871 995,329 $ 25.70 $ 32.80 Granted 540,535 535,362 22.61 20.85 Vested and settled (228,445) (257,888) 27.46 32.76 Forfeited (90,900) (30,024) 23.77 31.93 RSUs outstanding, end of period 1,255,061 1,242,779 24.18 27.58 Issuer Purchases of Equity Securities In 2017, the Company’s Board of Directors approved a new $200.0 million share repurchase program for shares of the Company’s common stock. The share repurchase program expires on June 30, 2020. The repurchases may be made either in the open market or through private transactions, subject to market conditions, applicable legal requirements and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time. During the three months ended March 31, 2019 , the Company did not repurchase any common shares ( 2018 – 654,224 at an average price of $ 20.46 per share). In 2018, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China in an amount not to exceed 10% of the total number of issued shares of IMAX China as at May 3, 2018 (35,818,112 shares). The share purchase program expires on the date of the 2019 annual general meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time. During the three months ended March 31, 2019 , IMAX China repurchased 709,800 common shares at an average price of HKD 19.47 per share (U.S. $2.48). The total number of shares purchased during the three months ended March 31, 2019 does not include any shares purchased in the administration of employee share-based compensation plans (which amounted to 400,000 common shares ( 2018 — 300,000 common shares), at an average price of $ 22.98 per share ( 2018 — $ 20.55 per share)). As at March 31 , 2019, the IMAX LTIP trustee held 191,033 shares purchased for $ 4.2 million in the open market to be issued upon the settlement of RSUs and certain stock options. The shares held with the trustee are recorded at cost and are reported as a reduction against capital stock on the condensed consolidated balance sheet. Net 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, 2019 2018 Net income applicable to common shareholders $ 8,265 $ 8,505 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 61,434 64,696 Weighted average number of shares repurchased, net of shares issued, during the period (57) (141) Weighted average number of shares used in computing basic income per share 61,377 64,555 Assumed exercise of stock options and RSUs, net of shares assumed repurchased 182 64 Weighted average number of shares used in computing diluted income per share 61,559 64,619 The calculation of diluted earnings per share for the three months ended March 31, 2019 excludes 6,647,056 shares ( 2018 — 6,409,364 shares) that are issuable upon the vesting of 639,739 RSUs ( 2018 — 589,412 RSUs, respectively) and the exercise of 6,007,317 stock options ( 2018 — 5,819,952 stock options), as the impact would be antidilutive. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contracts with Customers | 12. Revenue from Contracts with Customers The Company’s revenue arrangements with certain customers may involve performance obligations consisting of the delivery of a theater system (projector, sound system, screen system and, if applicable, 3D glasses cleaning machine); services associated with the theater system including theater design support, supervision of installation, and projectionist training; a license to use the IMAX brand; 3D glasses; maintenance and extended warranty services; and licensing of films. The Company evaluates all of the performance obligations in an arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate units of accounting based on the applicable accounting guidance in the Leases Topic of the FASB ASC; the Guarantees Topic of the FASB ASC; and the Revenue Recognition Topic of the FASB ASC. If separate units of accounting are either required under the relevant accounting standards or determined to be applicable under the Revenue Recognition Topic, the total transaction price received or receivable in the arrangement is allocated based on the applicable guidance in the above noted standards. The Company’s revenue recognition policies are described in note 2(m) in the Company’s 2018 Form 10-K. The Company’s arrangements include a requirement for the provision of maintenance services over the life of the arrangement, subject to a consumer price index increase on renewal each year. In circumstances where customers prepay the entire term’s maintenance arrangement, payments are due to the Company for the years after the extended warranty and maintenance services offered as part of the System Obligation expire. Payments upon renewal each year can be either in arrears or in advance, and can vary in frequency from monthly to annually. At March 31, 2019, $14.7 million of consideration has been deferred in relation to outstanding stand ready performance obligations related to these maintenance services (December 31, 2018 — $21.9 million). As the maintenance services are a stand ready obligation, revenue, subject to appropriate constraint, is recognized evenly over the contract term. In instances where consideration is received prior to performance obligations being satisfied, it is deferred. The majority of the Company’s deferred revenue balance relates to payments for theater systems that have not yet been recognized. The deferred revenue related to an individual theater increases as progress payments are made, and is recognized at the time the system obligation is satisfied. Recognition dates are variable and depend on numerous factors, including some outside of the Company’s control. The recognition of variable consideration involves a significant amount of judgment. Variable consideration is to be recognized subject to appropriate constraints to avoid a significant reversal of revenue in future periods. The Company will review the variable interest assets on an ongoing basis. In the three months ended March 31, 2019, the Company recorded a true-up of variable consideration of $1.4 million due to the modification of existing arrangements. The following tables present a breakdown of the Company’s revenues between fixed and variable consideration and lease arrangements: Three Months Ended March 31, 2019 Subject to the New Revenue Recognition Standard Subject to the Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ - $ 27,950 $ - $ 27,950 Joint revenue sharing arrangements – contingent rent - - 17,857 17,857 IMAX systems – contingent rent - - 26 26 - 27,950 17,883 45,833 Theater business IMAX systems Sales and sales-type leases 8,164 2,155 - 10,319 Ongoing fees and finance income 2,869 - - 2,869 Joint revenue sharing arrangements – fixed fees - - 2,539 2,539 Theater system maintenance 12,951 - - 12,951 Other theater 1,626 - - 1,626 25,610 2,155 2,539 30,304 New business 112 722 - 834 Other Film post-production 1,947 - - 1,947 Film distribution - 715 - 715 Other - 463 102 565 1,947 1,178 102 3,227 Total $ 27,669 $ 32,005 $ 20,524 $ 80,198 Three Months Ended March 31, 2018 Subject to the New Revenue Recognition Standard Subject to the Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ - $ 27,051 $ - $ 27,051 Joint revenue sharing arrangements – contingent rent - - 17,861 17,861 - 27,051 17,861 44,912 Theater business IMAX systems Sales and sales-type leases 15,949 2,189 - 18,138 Ongoing fees and finance income 2,730 - - 2,730 Theater system maintenance 12,712 - - 12,712 Other theater 1,377 - - 1,377 32,768 2,189 - 34,957 New business - 608 - 608 Other Film post-production 3,163 - - 3,163 Film distribution - 571 - 571 Other 50 723 - 773 3,213 1,294 - 4,507 Total $ 35,981 $ 31,142 $ 17,861 $ 84,984 |
Segmented Information
Segmented Information | 3 Months Ended |
Mar. 31, 2019 | |
Segmented Information [Abstract] | |
Segmented Information | 13. Segmented Information Management, including the Company’s Chief Executive Officer (“CEO”) who is the Company’s Chief Operating Decision Maker (as defined in the Segment Reporting Topic of the FASB ASC), assesses segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, amortization of intangibles, receivables provisions (recoveries), write-downs net of recoveries, interest income, interest expense and tax (provision) recovery are not allocated to the segments. The Company’s reportable segments are organized under four primary groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box office results and which includes the reportable segment of IMAX DMR and contingent rent from the joint revenue sharing arrangements and IMAX systems segments ( hybrid joint revenue sharing arrangements, which take the form of a sale are reflected under the IMAX systems segment of Theater Business) ; (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes hybrid (fixed and contingent) revenues and upfront installation costs from sales arrangements previously reported in the joint revenue sharing arrangements segment and after-market sales of projection system parts and 3D glasses from the other segment; (3) New Business, which includes home entertainment, and other new business initiatives that are in the development, start-up and/or wind-up phases, and (4) Other; which includes the film post-production and distribution segments, certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. The Company is presenting information at a disaggregated level to provide more relevant information to readers, as permitted by the standard. Refer to Item 2 of the Company’s Form 10-Q for additional information regarding the four primary groups mentioned above. Transactions between the film production 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. Three Months Ended March 31, 2019 2018 Revenue (1) Network business IMAX DMR $ 27,950 $ 27,051 Joint revenue sharing arrangements – contingent rent 17,857 17,861 IMAX systems – contingent rent 26 - 45,833 44,912 Theater business IMAX systems 13,188 20,868 Joint revenue sharing arrangements – fixed fees 2,539 - Theater system maintenance 12,951 12,712 Other theater 1,626 1,377 30,304 34,957 New business 834 608 Other Film post-production 1,947 3,163 Film distribution 715 571 Other 565 773 3,227 4,507 Total revenues $ 80,198 $ 84,984 Gross Margin Network business IMAX DMR (2) $ 19,775 $ 18,782 Joint revenue sharing arrangements – contingent rent (2) 11,795 12,740 IMAX systems – contingent rent 26 - 31,596 31,522 Theater business IMAX systems (2) 7,166 14,292 Joint revenue sharing arrangements – fixed fees (2) 295 - Theater system maintenance 5,281 6,205 Other theater 475 (45) 13,217 20,452 New business 619 (1,469) Other Film post-production 685 1,685 Film distribution (2) (710) (1,239) Other (267) (259) (292) 187 Total segment margin $ 45,140 $ 50,692 ___________ (1) The Company’s largest customer represented 18.9 % of total revenues for the three months ended March 31, 2019 ( 2018 — 17.2 %). (2) IMAX DMR segment margins include marketing costs of $ 3.9 million for the three months ended March 31, 2019 ( 2018 — $ 4.1 million). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $ 0.1 million for the three months ended March 31, 2019 ( 2018 — $ 0.2 million). IMAX systems segment margins include marketing and commission costs of $ 0.5 million for the three months ended March 31, 2019 ( 2018 — $ 0.7 million). Film distribution segment margins include marketing expense of $ 0.6 million for the three months ended March 31, 2019 ( 2018 — an expense of $ 1.2 million). Geographic Information Revenue by geographic area is based on the location of the customer. Revenue related to IMAX DMR is presented based upon the geographic location of the theaters that exhibit the 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, 2019 2018 Revenue Greater China $ 26,681 $ 28,146 United States 24,293 27,632 Asia (excluding Greater China) 8,790 9,230 Western Europe 8,443 10,262 Latin America 2,653 1,479 Canada 1,872 2,566 Russia & the CIS 1,688 1,990 Rest of the World 5,778 3,679 Total $ 80,198 $ 84,984 No single country in the Rest of the World, Western Europe, Latin America and Asia (excluding Greater China) classifications comprises more than 10% of the total revenue. |
Employees Pension and Postretir
Employees Pension and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, December 31, 2019 2018 Projected benefit obligation: Obligation, beginning of period $ 17,977 $ 19,003 Interest cost 141 422 Actuarial gain - (1,448) Obligation, end of period and unfunded status $ 18,118 $ 17,977 The following table provides disclosure of pension expense for the SERP: Three Months Ended March 31, 2019 2018 Interest cost $ 141 $ 105 No contributions are expected to be made for the SERP during the remainder of 2019 . The Company expects interest costs of $ 0.4 million to be recognized as a component of net periodic benefit cost during the remainder of 2019 . The accumulated benefit obligation for the SERP was $ 18.1 million at March 31, 2019 (December 31, 2018 — $ 18.0 million). The SERP assumptions are that Mr. Gelfond will receive a lump sum payment six months after retirement at the end of the current term of his employment agreement (December 31, 2019), although Mr. Gelfond has not informed the Company that he intends to retire at that time. 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, 2019 , the Company contributed and expensed an aggregate of $ 0.4 million ( 2018 — $ 0.3 million ) to its Canadian defined contribution plan and an aggregate of $ 0.2 million ( 2018 — $ 0.2 million ) to its defined contribution employee plan under 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 obligation as at March 31, 2019 is $ 0.6 million (December 31, 2018 — $ 0.6 million). The Company has expensed less than $ 0.1 million for the three months ended March 31, 2019 ( 2018 — less than $0.1 million). Postretirement Benefits – Canadian Employees The Company has an unfunded postretirement plan for its Canadian employees upon meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. The postretirement benefits obligation as at March 31, 2019 is $ 1.5 million (December 31, 2018 — $ 1.5 million). The Company has expensed less than $ 0.1 million for the three months ended March 31, 2019 ( 2018 — less than $ 0.1 million). Deferred Compensation Benefit Plan The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering Greg Foster, former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of his Retirement Plan with the Company, the Retirement Plan will vest in full if Mr. Foster incurs a separation of service (as defined therein). In the fourth quarter of 2018, Mr. Foster incurred a separation from service, and as such, his Retirement Plan benefits became fully vested as at December 31, 2018 and the accelerated costs were recognized and reflected in the executive transition costs line on the consolidated statement of operations. As at March 31, 2019, the Company had a funded benefit obligation recorded of $3.6 million (December 31, 2018 — $3.6 million). The Company did not recognize any additional expenses in the three months ended March 31, 2019 ( 2018 – $ 0.2 million). |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 receivables and financing receivables are concentrated with the theater exhibition industry and film entertainment industry. To minimize the Company’s credit risk, the Company retains title to underlying theater systems leased, performs initial and ongoing credit evaluations of its customers and makes ongoing provisions for its estimate of potentially uncollectible amounts. The Company believes it has adequately provided for related exposures surrounding receivables and contractual commitments. Fair Value Measurements The carrying values of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities due within one year approximate fair values due to the short-term maturity of these instruments. The Company’s other financial instruments are comprised of the following: As at March 31, 2019 As at December 31, 2018 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Level 1 Cash and cash equivalents (1) $ 123,084 $ 123,084 $ 141,590 $ 141,590 Equity securities (3) 17,644 17,644 - - Level 2 Net financed sales receivables (2) $ 117,087 $ 116,283 $ 117,990 $ 117,428 Net investment in sales-type leases (2) 8,828 8,903 9,442 9,529 Convertible loan receivable (2) 1,500 1,500 1,500 1,500 Equity securities (3) 2,035 2,035 2,022 2,022 Foreign exchange contracts — designated forwards (3) (815) (815) (1,202) (1,202) Borrowings under the Credit Facility (1) (60,000) (60,000) (40,000) (40,000) ______________ (1) Recorded at cost, which approximates fair value. (2) Estimated based on discounting future cash flows at currently available interest rates with comparable terms. (3) Value determined using quoted prices in active markets. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. There were no transfers in or out of the Company’s Level 3 assets during the three months ended March 31, 2019 and 2018 . Financing Receivables The Company’s net investment in leases and its net financed sales receivables are subject to the disclosure requirements of ASC 310 “Receivables”. Due to differing risk profiles of its net investment in leases and its net financed sales receivables, the Company views its net investment in leases and its net financed sale receivables as separate classes of financing receivables. The Company does not aggregate financing receivables to assess impairment. The Company monitors the credit quality of each customer on a frequent basis through collections and aging analyses. The Company also holds meetings monthly in order to identify credit concerns and whether a change in credit quality classification is required for the customer. A customer may improve in their credit quality classification once a substantial payment is made on overdue balances or the customer has agreed to a payment plan with the Company and payments have commenced in accordance to the payment plan. The change in credit quality indicator is dependent upon management approval. The Company classifies its customers into four categories to indicate the credit quality worthiness of its financing receivables for internal purposes only: Good standing — Theater continues to be in good standing with the Company as the client’s payments and reporting are up-to-date. Credit Watch — Theater operator has begun to demonstrate a delay in payments, and has been placed on the Company's credit watch list for continued monitoring, but active communication continues with the Company. Depending on the size of outstanding balance, length of time in arrears and other factors, transactions may need to be approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "Pre-approved transactions" category, but not in as good of condition as those receivables in "Good standing". Pre-approved transactions only — Theater operator is demonstrating a delay in payments with little or no communication with the Company. All service or shipments to the theater must be reviewed and approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "All transactions suspended" category, but not in as good of condition as those receivables in "Credit Watch". Depending on the individual facts and circumstances of each customer, finance income recognition may be suspended if management believes the receivable to be impaired. All transactions suspended — Theater is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater is classified as “All transactions suspended” the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. The following table discloses the recorded investment in financing receivables by credit quality indicator: As at March 31, 2019 As at December 31, 2018 Minimum Financed Minimum Financed Lease Sales Lease Sales Payments Receivables Total Payments Receivables Total In good standing $ 8,409 $ 106,719 $ 115,128 $ 8,701 $ 108,574 $ 117,275 Credit Watch 574 9,652 10,226 574 8,723 9,297 Pre-approved transactions - 573 573 322 565 887 Transactions suspended - 982 982 - 967 967 $ 8,983 $ 117,926 $ 126,909 $ 9,597 $ 118,829 $ 128,426 While recognition of finance income is suspended, payments received by a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a recovery of provision taken on the billed amount, if applicable, is recorded to the extent of the residual cash received. Once the 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 nonaccrual status is as follows: As at March 31, 2019 As at December 31, 2018 Recorded Related Recorded Related Investment Allowance Investment Allowance Net investment in leases $ - $ - $ - $ - Net financed sales receivables 982 (739) 967 (739) Total $ 982 $ (739) $ 967 $ (739) The Company considers financing receivables with aging between 60-89 days as indications of theaters with potential collection concerns. The Company will begin to focus its review on these financing receivables and increase its discussions internally and with the theater regarding payment status. Once a theater’s aging exceeds 90 days, the Company’s policy is to review and assess collectibility on the theater’s past due accounts. Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of further information or supporting documentation to the customer. The Company’s aged financing receivables are as follows: As at March 31, 2019 Related Recorded Accrued Billed Unbilled Total Investment and 30-89 Days Financing Recorded Recorded Related Net of Current 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 32 $ 103 $ 166 $ 301 $ 8,682 $ 8,983 $ (155) $ 8,828 Net financed sales receivables 862 2,804 5,901 9,567 108,359 117,926 (839) 117,087 Total $ 894 $ 2,907 $ 6,067 $ 9,868 $ 117,041 $ 126,909 $ (994) $ 125,915 As at December 31, 2018 Related Recorded Accrued Billed Unbilled Total Investment and 30-89 Days Financing Recorded Recorded Related Net of Current 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 52 $ 18 $ 253 $ 323 $ 9,274 $ 9,597 $ (155) $ 9,442 Net financed sales receivables 1,442 2,066 5,241 8,749 110,080 118,829 (839) 117,990 Total $ 1,494 $ 2,084 $ 5,494 $ 9,072 $ 119,354 $ 128,426 $ (994) $ 127,432 The Company’s recorded investment in past due financing receivables for which the Company continues to accrue finance income is as follows: As at March 31, 2019 Related Recorded Accrued Billed Unbilled Investment and 30-89 Days Financing Recorded Related Past Due and Current 90+ Days Receivables Investment Allowance Accruing Net investment in leases $ - $ 28 $ 159 $ 187 $ 648 $ - $ 835 Net financed sales receivables 330 1,265 5,812 7,407 32,371 - 39,778 Total $ 330 $ 1,293 $ 5,971 $ 7,594 $ 33,019 $ - $ 40,613 As at December 31, 2018 Related Recorded Accrued Billed Unbilled Investment and 30-89 Days Financing Recorded Related Past Due and Current 90+ Days Receivables Investment Allowance Accruing Net investment in leases $ 28 $ 9 $ 246 $ 283 $ 1,523 $ - $ 1,806 Net financed sales receivables 558 1,472 5,860 7,890 31,507 - 39,397 Total $ 586 $ 1,481 $ 6,106 $ 8,173 $ 33,030 $ - $ 41,203 The Company considers financing receivables to be impaired when it believes it to be probable that it will not recover the full amount of principal or interest owing under the arrangement. The Company uses its knowledge of the industry and economic trends, as well as its prior experiences to determine the amount recoverable for impaired financing receivables. The following table discloses information regarding the Company’s impaired financing receivables: For the Three Months Ended March 31, 2019 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allowance: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables 869 113 (739) 869 - Recorded investment for which there is no related allowance: Net investment in leases - - - - - Net financed sales receivables - - - - - Total recorded investment in impaired loans: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables $ 869 $ 113 $ (739) $ 869 $ - For the Three Months Ended March 31, 2018 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allowance: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables 1,050 5 (922) 1,050 - Recorded investment for which there is no related allowance: Net investment in leases - - - - - Net financed sales receivables - - - - - Total recorded investment in impaired loans: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables $ 1,050 $ 5 $ (922) $ 1,050 $ - The Company’s activity in the allowance for credit losses for the period and the Company’s recorded investment in financing receivables are as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Net Investment Net Financed Net Investment Net Financed in Leases Sales Receivables in Leases Sales Receivables Allowance for credit losses: Beginning balance $ 155 $ 839 $ 155 $ 922 Charge-offs - - - - Recoveries - - - - Provision - - - - Ending balance $ 155 $ 839 $ 155 $ 922 Ending balance: individually evaluated for impairment $ 155 $ 839 $ 155 $ 922 Financing receivables: Ending balance: individually evaluated for impairment $ 8,983 $ 117,926 $ 7,337 $ 123,514 Foreign Exchange Risk Management The Company is exposed to market risk from changes in foreign currency rates. A majority of the Company’s revenues is denominated in U.S. dollars while a substantial portion of its costs and expenses is denominated in Canadian dollars. A portion of the net U.S. dollar cash flows of the Company is periodically converted to Canadian dollars to fund Canadian dollar expenses through the spot market. In China and Japan, the Company has ongoing operating expenses related to its operations in Chinese Renminbi and Japanese yen, respectively. Net cash flows are converted to and from U.S. dollars through the spot market. The Company also has cash receipts under leases denominated in Chinese Renminbi, Japanese yen, Canadian dollars and Euros which are converted to U.S. dollars through the spot market. In addition, because IMAX films generate box office in 81 different countries, unfavourable exchange rates between applicable local currencies and the U.S. dollar affect the Company’s reported gross box-office and revenues, further impacting the Company’s results of operations. The Company’s policy is to not use any financial instruments for trading or other speculative purposes. The Company entered into a series of foreign currency forward contracts to manage the Company’s risks associated with the volatility of foreign currencies. Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continue to meet hedge effectiveness tests at March 31, 2019 (the “Foreign Currency Hedges”), with settlement dates throughout 2019 and 2020. 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 statements of operations except for derivatives designated and qualifying as foreign currency cash flow hedging instruments. The Company currently has cash flow hedging instruments associated with selling, general and administrative expenses and capital expenditures. For foreign currency cash flow hedging instruments related to selling, general and administrative expenses, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comprehensive income and reclassified to the condensed consolidated statements of operations when the forecasted transaction occurs. For foreign currency cash flow hedging instruments related to capital expenditures, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comprehensive income and reclassified to property, plant and equipment on the balance sheet when the forecasted transaction occurs. The Company currently does not hold any derivatives which are not designated as hedging instruments . The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s condensed consolidated financial statements: Notional value of foreign exchange contracts: March 31, December 31, 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 43,885 $ 50,828 Fair value of derivatives in foreign exchange contracts: March 31, December 31, Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 235 $ 649 Accrued and other liabilities (1,050) (1,851) $ (815) $ (1,202) Derivatives in Foreign Currency Hedging relationships are as follows: Three Months Ended March 31, 2019 2018 Foreign exchange contracts — Forwards Derivative Gain (Loss) Recognized in OCI $ 68 $ (1,007) Three Months Ended March 31, Location of Derivative (Loss) Gain Reclassified from AOCI 2019 2018 Foreign exchange contracts — Forwards Selling, general and administrative expenses $ (306) $ 220 Property, plant and equipment (13) - $ (319) $ 220 Three Months Ended March 31, 2019 2018 Foreign exchange contracts — Forwards Derivative Gain Recognized In and Out of OCI $ - $ 46 The Company's estimated net amount of the existing losses as at March 31, 2019 is $ 0.9 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, FASB ASC 320 and FASB ASC 321, as appropriate. As at March 31, 2019 , the equity method of accounting is being utilized for an investment with a carrying value of $nil (December 31, 2018 — $nil). The Company’s accumulated losses in excess of its equity investment were $ 1.7 million as at March 31, 2019 , and are classified in Accrued and other liabilities. For the three months ended March 31, 2019 , gross revenues, cost of revenue and net loss for the Company’s investment was $ 0.2 million, $ 0.5 million and $ 0.4 million, respectively ( 2018 — $ 0.5 million , $ 0.9 million and $ 0.6 million, respectively). The Company has determined it is not the primary beneficiary of this VIE, and therefore this entity has not been consolidated. In a prior year, the Company issued a convertible loan of $1.5 million to this entity with a term of three years with an annual effective interest rate of 5.0%. The instrument is classified as an available-for-sale investment due to certain features that allow for conversion to common stock in the entity in the event of certain triggers occurring. In addition, the Company has an investment in preferred stock of another business venture of $ 1.5 million which meet 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, 2019 (December 31, 2018 — $ nil ). Furthermore, the Company has an investment of $ 1.0 million (December 31, 2018 — $ 1.0 million) in the shares of an exchange traded fund. This investment is classified as an equity investment. As at March 31, 2019 , the Company held investments with a total value of $ 3.5 million in the preferred shares of enterprises which meet the criteria for classification as an equity security under FASB ASC 325, carried at historical cost, net of impairment charges. The carrying value of these equity security investments was $ 1.0 million at March 31, 2019 (December 31, 2018 — $1.0 million). On January 17, 2019, IMAX China (Hong Kong), Limited, a wholly-owned subsidiary of IMAX China, as an investor entered into a cornerstone investment agreement with Maoyan Entertainment (“Maoyan”) (as the issuer) and Morgan Stanley Asia Limited (as a sponsor, underwriter and the underwriters’ representative). Pursuant to this agreement, IMAX China (Hong Kong), Limited agreed to invest $15.2 million to subscribe for a certain number of shares of Maoyan at the final offer price pursuant to the global offering of the share capital of Maoyan, and this investment would be subject to a lock-up period of six months following the date of the global offering. On February 4, 2019, Maoyan completed its global offering, upon which, IMAX China (Hong Kong), Limited became a less than 1% shareholder in Maoyan. This investment is classified as an equity security under the FASB ASC 321, with a readily determinable market value through the Hong Kong Stock Exchange. Changes in fair value are recorded in the Movements in fair value of financial instruments line item in the Company’s condensed consolidated statement of operations. For the three months ended March 31, 2019, the Company has recorded a net unrealized gain of $2.5 million. The total carrying value of investments in new business ventures, including the equity investment, as at March 31, 2019 is $ 21.2 million (December 31, 2018 — $3.5 million) and is recorded in Other assets. |
Non-Controlling Interests
Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Non-Controlling Interests [Text Block] | 16. Non-Controlling Interests IMAX China Non-Controlling Interest The Company indirectly owns approximately 68.24% of IMAX China Holding, Inc. (“IMAX China”), whose shares trade on the Hong Kong Stock Exchange. IMAX China remains a consolidated subsidiary of the Company. Other Non-Controlling Interest The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed to by a third party in the amount of $ 25.0 million, with the possibility of contributing additional funds. The Company has contributed $ 9.0 million to the Original Film Fund since 2014, and has reached its maximum contribution. The Company sees the Original Film Fund as a vehicle designed to generate a continuous, steady flow of high-quality documentary content. As at March 31, 2019 , the Original Film Fund has invested $20.9 million toward the development of original films. The related production, financing and distribution agreement includes put and call rights relating to change of control of the rights, title and interest in the co-financed pictures. The Company also established its VR Fund among the Company, its subsidiary IMAX China and other strategic investors to help finance the creation of interactive VR content experiences for use across all VR platforms, including in the pilot IMAX VR Centers. The VR Fund helped finance the production of one interactive VR experience, which debuted exclusively in the pilot IMAX VR Centers in November 2017 before being made available to other VR platforms. As at March 31, 2019 , the Company invested $4.0 million toward the development of VR content. In December 2018, the Company announced, in connection with its strategic review of its VR pilot initiative, that it had decided to close its remaining VR locations and write-off certain VR content investments. The Company has also decided to dissolve the VR Fund and not actively pursue any additional VR opportunities The following summarizes the movement of the non-controlling interest in temporary equity, in the Company’s subsidiary for the three months ended March 31, 2019 : Balance as at December 31, 2018 $ 6,439 Net loss (110) Balance as at March 31, 2019 $ 6,329 |
Exit Costs, Restructuring Charg
Exit Costs, Restructuring Charges and Associated Impairments | 3 Months Ended |
Mar. 31, 2019 | |
Exit costs restructuring and associated impairments [Abstract] | |
Restructuring And Related Activities Disclosure [Text Block] | 17. Exit costs, restructuring charges and associated impairments In the prior year, the Company performed a strategic review of its business and decided to exit from certain non-core businesses or initiatives, which included closing its VR locations. In addition, as part of the Company’s ongoing efforts to decrease costs, the Company has reduced certain functions and realigned resources. In the current period, certain costs that did not meet the recognition criteria in 2018 were recognized, including finalization of certain estimated costs. The Company recognized the following charges in its condensed consolidated statements of operations: Three Months Ended March 31, 2019 2018 Restructuring charges $ 628 $ 702 Costs to exit lease and restore facilities 222 - $ 850 $ 702 Restructuring charges are comprised of employee severance costs including benefits and stock-based compensation, costs of consolidating facilities and contract termination costs. Restructuring charges are based upon plans that have been committed to by the Company, but may be refined in subsequent periods. These charges are recognized pursuant to FASB ASC 420. A liability for a cost associated with an exit or disposal activity is recognized and measured at its fair value in the condensed consolidated statement of operations in the period in which the liability is incurred. When estimating the value of facility restructuring activities, assumptions are applied regarding estimated sub-lease payments to be received, which can differ from actual results. In the current year, the Company incurred $0.6 million in restructuring charges for the three months ended March 31, 2019 ( 2018 — $ 0.7 million). A summary of the restructuring costs by reporting groups identified by nature of product sold, or service provided as disclosed in note 13 recognized are as follows: Three Months Ended March 31, 2019 2018 Corporate $ 628 $ 200 IMAX DMR - 380 Theater system maintenance - 122 $ 628 $ 702 At this time, the Company does not expect to recognize any additional restructuring charges during the remainder of 2019 . The following table sets forth a summary of restructuring accrual activities for the three months ended March 31, 2019 : Employee Severance and Benefits Balance as at December 31, 2018 $ 1,936 Restructuring charges 628 Cash payments (1,459) Balance as at March 31, 2019 $ 1,105 In the three months ended March 31, 2019 and 2018 , the Company did not recognize any associated impairments. |
Prior Period's Figures
Prior Period's Figures | 3 Months Ended |
Mar. 31, 2019 | |
Prior Period Adjustment [Abstract] | |
Prior Period's Figures | 18. Prior Period's Figures In the current year, variable consideration receivable from contracts is a separate line on the condensed consolidated balance sheet and removed from Other Assets. In addition, due to the adoption of ASU 2017-07, non-service pension costs are now recorded in the Retirement benefits non-service expense line item in the condensed consolidated statement of operations. Prior year comparatives have been reclassified to reflect both of these changes. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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-accounted 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 2018 Annual Report on Form 10-K for the year ended December 31, 2018 (“the 2018 Form 10-K”) which should be 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, 2018 , except as noted below. |
Variable interest entities | These condensed consolidated financial statements include the accounts of the Company, 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 business 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 adjustments 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC” or “Codification”). The Company has ten film production companies that are VIEs. For five of the Company’s film production companies, the Company has determined that it is the primary beneficiary of these entities as the Company has the power to direct the activities of the respective VIE that most significantly impact the respective VIE’s economic performance and has the obligation to absorb losses of the VIE that could potentially be significant to the respective VIE or the right to receive benefits from the respective VIE that could potentially be significant to the respective VIE. The majority of these consolidated assets are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in note 16 (b). For the other five film production companies which are VIEs, the Company does 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 used the equity method of accounting for these entities. A loss in value of an investment other than a temporary decline is recognized as a charge to the condensed consolidated statements of operations |
Equity and Cost Method Investments Policy | The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323, FASB ASC 320 and FASB ASC 321, as appropriate. |
New Accounting Pronouncements Adopted | Adoption of New Accounting Policies The Company adopted several standards including the following material standards on January 1, 2019, which are effective for annual periods ending after December 31, 2018, and for annual and interim periods thereafter. In 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASC Topic 842”). The Company adopted 2016-02 and several associated ASUs on January 1, 2019. See note 3 for a further discussion of the Company’s adoption of ASC Topic 842. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). The adoption of this standard will be applied prospectively and did not have a material impact on the Company’s condensed consolidated financial statements. In December 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The adoption of this standard will be applied prospectively and did not have an impact on the Company, see note 15 (d) for additional disclosure regarding the Company’s hedging arrangements. |
Accounting Pronouncements Not Yet Adopted | Recently Issued FASB Accounting Standard Codification Updates In March 2019, the FASB issued ASU No. 2019-02, “Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350)” (“ASU 2019-02”). The purpose of ASU 2019-02 is to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization, as well as requiring an entity to reassess estimates of the use of a film in a film group. In addition, ASU 2019-02 will require an entity to test for impairment at a film group level if it is predominantly monetized with other films. Amendments in this update would be applied prospectively, and for public entities, the amendments in ASU 2019-02 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2019-02 on its condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). The purpose of ASU 2016-13 is to require a financial asset measured on the amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. For public entities, the amendments in ASU 2016-13 are effective for interim and annual reporting periods beginning after December 15, 2019. The Company is currently assessing the impact of ASU 2016-13 on its condensed consolidated financial statements. The Company considers the applicability and impact of all recently issued FASB accounting standard codification updates. Accounting standards updates that are not noted above were assessed and determined to be not applicable or not significant to the Company’s condensed consolidated financial statements for the period ended March 31, 2019 . |
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 such matters. The Company reviews these provisions in conjunction with any related provisions on assets related to the claims at least quarterly and adjusts these provisions to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other pertinent information related to the case. Should developments in any of these matters outlined below cause a change in the Company’s determination as to an unfavorable outcome and result in the need to recognize a material provision, or, should any of these matters result in a final adverse judgment or be settled for significant amounts, they could have a material adverse effect on the Company’s results of operations, cash flows, and financial position in the period or periods in which such a change in determination, settlement or judgment occurs. The Company expenses legal costs relating to its lawsuits, claim 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 office and concession revenues, and in some cases a small upfront or initial payment, in exchange for placing a theater system at the theater operator’s venue. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s joint revenue sharing arrangements are typically non-cancellable for 10 years or longer with renewal provisions. Title to equipment under joint revenue sharing arrangements generally does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. In an IMAX DMR arrangement, the Company transforms conventional motion pictures into the Company’s large screen format, allowing the release of Hollywood content to the global IMAX theater network . In a typical IMAX DMR film arrangement, the Company will absorb its costs for the digital re-mastering and then recoup this cost from a percentage of box-office receipts of the film, which in recent years has averaged approximately 12.5% outside of Greater China and a lower percentage for certain films within Greater China. The Company does not typically hold distribution rights or the copyright to these films. In certain film arrangements, the Company co-produces a film with a third party whereby the third party retains the copyright and rights to the film and 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 will not be delivered on a timely basis. |
Income tax policy | 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 decreases in the year, changes due to foreign exchange, changes in the Company’s valuation allowance based on the Company’s recoverability assessments of deferred tax assets, and favorable or unfavorable resolution of various tax examinations. During the quarter ended March 31, 2019, there was no change in the 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 necessary. |
Segment Reporting Policy | The Company’s reportable segments are organized under four primary groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box office results and which includes the reportable segment of IMAX DMR and contingent rent from the joint revenue sharing arrangements and IMAX systems segments ( hybrid joint revenue sharing arrangements, which take the form of a sale are reflected under the IMAX systems segment of Theater Business) ; (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes hybrid (fixed and contingent) revenues and upfront installation costs from sales arrangements previously reported in the joint revenue sharing arrangements segment and after-market sales of projection system parts and 3D glasses from the other segment; (3) New Business, which includes home entertainment, and other new business initiatives that are in the development, start-up and/or wind-up phases, and (4) Other; which includes the film post-production and distribution segments, certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. The Company is presenting information at a disaggregated level to provide more relevant information to readers, as permitted by the standard. Refer to Item 2 of the Company’s Form 10-Q for additional information regarding the four primary groups mentioned above. Transactions between the film production IMAX DMR segment and the film post-production segment are valued at exchange value. Inter-segment profits are eliminated upon consolidation, as well as for the disclosures below. |
Fair Value of Financial Instruments Policy | ______________ (1) Recorded at cost, which approximates fair value. (2) Estimated based on discounting future cash flows at currently available interest rates with comparable terms. (3) Value determined using quoted prices in active markets. |
Fair Value Transfer Policy | When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. |
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 communication continues with the Company. Depending on the size of outstanding balance, length of time in arrears and other factors, transactions may need to be approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "Pre-approved transactions" category, but not in as good of condition as those receivables in "Good standing". Pre-approved transactions only — Theater operator is demonstrating a delay in payments with little or no communication with the Company. All service or shipments to the theater must be reviewed and approved by management. These financing receivables are considered to be in better condition than those receivables related to theaters in the "All transactions suspended" category, but not in as good of condition as those receivables in "Credit Watch". Depending on the individual facts and circumstances of each customer, finance income recognition may be suspended if management believes the receivable to be impaired. All transactions suspended — Theater is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater is classified as “All transactions suspended” the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped While recognition of finance income is suspended, payments received by a customer are applied against the outstanding balance owed. If payments are sufficient to cover any unreserved receivables, a recovery of provision taken on the billed amount, if applicable, is recorded to the extent of the residual cash received. Once the collectibility issues are resolved and the customer has returned to being in good standing, the Company will resume recognition of finance income. |
Financing Receivable, Allowance for Credit Losses, Policy | 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 theater’s past due accounts. Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of further information or supporting documentation to the customer. |
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 of the Company’s revenues is denominated in U.S. dollars while a substantial portion of its costs and expenses is denominated in Canadian dollars. A portion of the net U.S. dollar cash flows of the Company is periodically converted to Canadian dollars to fund Canadian dollar expenses through the spot market. In China and Japan, the Company has ongoing operating expenses related to its operations in Chinese Renminbi and Japanese yen, respectively. Net cash flows are converted to and from U.S. dollars through the spot market. The Company also has cash receipts under leases denominated in Chinese Renminbi, Japanese yen, Canadian dollars and Euros which are converted to U.S. dollars through the spot market. In addition, because IMAX films generate box office in 81 different countries, unfavourable exchange rates between applicable local currencies and the U.S. dollar affect the Company’s reported gross box-office and revenues, further impacting the Company’s results of operations. The Company’s policy is to not use any financial instruments for trading or other speculative purposes. The Company entered into a series of foreign currency forward contracts to manage the Company’s risks associated with the volatility of foreign currencies. Certain of these foreign currency forward contracts met the criteria required for hedge accounting under the Derivatives and Hedging Topic of the FASB ASC at inception, and continue to meet hedge effectiveness tests at March 31, 2019 (the “Foreign Currency Hedges”), with settlement dates throughout 2019 and 2020. 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 statements of operations except for derivatives designated and qualifying as foreign currency cash flow hedging instruments. The Company currently has cash flow hedging instruments associated with selling, general and administrative expenses and capital expenditures. For foreign currency cash flow hedging instruments related to selling, general and administrative expenses, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comprehensive income and reclassified to the condensed consolidated statements of operations when the forecasted transaction occurs. For foreign currency cash flow hedging instruments related to capital expenditures, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in other comprehensive income and reclassified to property, plant and equipment on the balance sheet when the forecasted transaction occurs. The Company currently does not hold any derivatives which are not designated as hedging instruments |
Costs Associated With Exit Or Disposal Activities Or Restructurings Policy | Restructuring charges are comprised of employee severance costs including benefits and stock-based compensation, costs of consolidating facilities and contract termination costs. Restructuring charges are based upon plans that have been committed to by the Company, but may be refined in subsequent periods. These charges are recognized pursuant to FASB ASC 420. A liability for a cost associated with an exit or disposal activity is recognized and measured at its fair value in the condensed consolidated statement of operations in the period in which the liability is incurred. When estimating the value of facility restructuring activities, assumptions are applied regarding estimated sub-lease payments to be received, which can differ from actual results. |
Revenue from Contracts with Customers Policy | The Company’s revenue arrangements with certain customers may involve performance obligations consisting of the delivery of a theater system (projector, sound system, screen system and, if applicable, 3D glasses cleaning machine); services associated with the theater system including theater design support, supervision of installation, and projectionist training; a license to use the IMAX brand; 3D glasses; maintenance and extended warranty services; and licensing of films. The Company evaluates all of the performance obligations in an arrangement to determine which are considered distinct, either individually or in a group, for accounting purposes and which of the deliverables represent separate units of accounting based on the applicable accounting guidance in the Leases Topic of the FASB ASC; the Guarantees Topic of the FASB ASC; and the Revenue Recognition Topic of the FASB ASC. If separate units of accounting are either required under the relevant accounting standards or determined to be applicable under the Revenue Recognition Topic, the total transaction price received or receivable in the arrangement is allocated based on the applicable guidance in the above noted standards. The Company’s revenue recognition policies are described in note 2(m) in the Company’s 2018 Form 10-K. The recognition of variable consideration involves a significant amount of judgment. Variable consideration is to be recognized subject to appropriate constraints to avoid a significant reversal of revenue in future periods. The Company will review the variable interest assets on an ongoing basis. The Company’s arrangements include a requirement for the provision of maintenance services over the life of the arrangement, subject to a consumer price index increase on renewal each year. In circumstances where customers prepay the entire term’s maintenance arrangement, payments are due to the Company for the years after the extended warranty and maintenance services offered as part of the System Obligation expire. Payments upon renewal each year can be either in arrears or in advance, and can vary in frequency from monthly to annually. In instances where consideration is received prior to performance obligations being satisfied, it is deferred. The majority of the Company’s deferred revenue balance relates to payments for theater systems that have not yet been recognized. The deferred revenue related to an individual theater increases as progress payments are made, and is recognized at the time the system obligation is satisfied. Recognition dates are variable and depend on numerous factors, including some outside of the Company’s control. |
Lessor Leases Policy | IMAX Corporation as a Lessor: A number of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s lease arrangements are described in note 2(m) in the Company’s 2018 Form 10-K. The Company classifies its lease arrangements at inception of the arrangement and, if required, after a modification of the lease arrangement, to determine whether they are sales-type leases or operating leases. Under the Company’s lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s lease portfolio terms are typically non-cancellable for 10 to 20 years with renewal provisions from inception. Except for those sales arrangements that are classified as sales-type leases, the Company’s leases generally do not contain an automatic transfer of title at the end of the lease term. The Company’s lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. The Company has assessed the nature of its joint revenue sharing arrangements and concluded that, based on the guidance in the Revenue Recognition Topic of the ASC, the arrangements contain a lease. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s joint revenue sharing arrangements are typically non-cancellable for 10 years or longer with renewal provisions. Title to equipment under joint revenue sharing arrangements does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. See additional details regarding the Company’s traditional and hybrid joint revenue sharing arrangements as described in note 2(m) in the Company’s 2018 Form 10-K. |
Lessee Leases Policy | IMAX Corporation as a Lessee : The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The Company assumed that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. The incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. |
Investments Policy | The Company accounts for investments in new business ventures using the guidance of the FASB ASC 323, FASB ASC 320 and FASB ASC 321, as appropriate. The equity method of accounting is being utilized for an investment with a carrying value of $nil. The Company’s accumulated losses in excess of its equity investment are classified in Accrued and other liabilities. The Company has determined it is not the primary beneficiary of this VIE, and therefore this entity has not been consolidated. In a prior year, the Company issued a convertible loan to this entity, the instrument is classified as an available-for-sale investment due to certain features that allow for conversion to common stock in the entity in the event of certain triggers occurring. The Company held investments in the preferred shares of enterprises which meet the criteria for classification as an equity security under FASB ASC 325, carried at historical cost, net of impairment charges The Company has an investment in the shares of an exchange traded fund. This investment is classified as an equity investment. The Company holds an investment classified as an equity security under the FASB ASC 321, with a readily determinable market value through the Hong Kong Stock Exchange. Changes in fair value are recorded in the Movements in fair value of financial instruments line item in the Company’s condensed consolidated statement of operations. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | |
VIEs Total assets and liabilities | Total assets and liabilities of the Company’s consolidated VIEs are as follows: March 31, December 31, 2019 2018 Total assets $ 11,783 $ 12,203 Total liabilities $ 14,493 $ 11,573 Total assets and liabilities of the VIE entities which the Company does not consolidate are as follows: March 31, December 31, 2019 2018 Total assets $ 447 $ 447 Total liabilities $ 368 $ 362 |
Adoption of ASC Topic 842, Le_2
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Impacts of Adoption of Standard Related to Leases | Balance at Balance at December 31, ASC Topic 842 January 1, 2018 Adjustments 2019 Assets Property, plant and equipment $ 280,658 $ 17,462 $ 298,120 Prepaid expenses 10,294 (36) 10,258 Liabilities Accrued and other liabilities 97,724 17,426 115,150 |
Lease Arrangements And Financ_2
Lease Arrangements And Financing Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales | March 31, December 31, 2019 2018 Gross minimum lease payments receivable $ 9,776 $ 10,499 Unearned finance income (793) (902) Minimum lease payments receivable 8,983 9,597 Accumulated allowance for uncollectible amounts (155) (155) Net investment in leases 8,828 9,442 Gross financed sales receivables 153,139 155,044 Unearned finance income (35,213) (36,215) Financed sales receivables 117,926 118,829 Accumulated allowance for uncollectible amounts (839) (839) Net financed sales receivables 117,087 117,990 Total financing receivables $ 125,915 $ 127,432 Net financed sales receivables due within one year $ 27,836 $ 26,911 Net financed sales receivables due after one year $ 89,251 $ 91,079 |
Components of lease expense | The components of lease expense are as follows: Three Months Ended March 31, 2019 2018 Operating lease cost (1) SG&A Expenses $ 243 $ 1,155 Amortization of lease assets SG&A Expenses 531 - Interest on lease liabilities SG&A Expenses 268 - Total lease cost $ 1,042 $ 1,155 _____ |
Lessee Operating Lease balance sheet amounts and lines [Table Text Block] | Supplemental balance sheet information related to leases are as follows: March 31, January 1, 2019 2019 Assets Operating Leases Property, plant and equipment $ 16,991 $ 17,462 Liabilities Operating Leases (1) Accrued and other liabilities $ 19,460 $ 19,960 __________ |
Lessee Operating Lease weighted averages table [Table Text Block] | March 31, January 1, 2019 2019 Weighted-average remaining lease term (years) Operating Leases 8.1 8.3 Weighted-average discount rate Operating Leases 5.80 % 5.80 % |
Lessee Operating Lease, Maturity [Table Text Block] | Maturities of lease liabilities are as follows: Operating Leases 2019 (nine months remaining) $ 2,739 2020 3,451 2021 3,047 2022 2,283 2023 2,175 Thereafter 11,310 Total lease payments $ 25,005 Less: interest expense (5,545) Present value of lease liabilities $ 19,460 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Operating Leases 2019 $ 3,847 2020 2,790 2021 2,491 2022 1,843 2023 1,759 Thereafter 9,657 Total lease payments $ 22,387 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventories [Abstract] | |
Inventories | March 31, December 31, 2019 2018 Raw materials $ 29,074 $ 29,705 Work-in-process 4,082 4,733 Finished goods 11,658 10,122 $ 44,814 $ 44,560 |
Credit Facility and Other Fin_2
Credit Facility and Other Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Credit Facility and Other Financing Arrangements [Abstract] | |
Bank indebtedness | Bank indebtedness includes the following: March 31, December 31, 2019 2018 Credit Facility $ 60,000 $ 40,000 Deferred charges on debt financing (2,150) (2,247) $ 57,850 $ 37,753 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of depreciation and amortization | Three Months Ended March 31, 2019 2018 Film assets $ 3,695 $ 3,571 Property, plant and equipment Joint revenue sharing arrangements 5,605 4,840 Other property, plant and equipment 2,936 3,442 Other intangible assets 1,425 1,217 Other assets 433 310 Deferred financing costs 117 141 $ 14,211 $ 13,521 |
Write downs, net of recoveries | Three Months Ended March 31, 2019 2018 Accounts receivable $ 431 $ 451 Property, plant and equipment (1) 86 421 Joint revenue sharing arrangements (1) 180 126 Other intangible assets - 38 $ 697 $ 1,036 __________ |
Other Significant Non cash Transactions | Three Months Ended March 31, 2019 2018 Net accruals related to: Purchases of property, plant and equipment $ (401) $ 364 Investment in joint revenue sharing arrangements 200 (20) Acquisition of other intangible assets 12 5 $ (189) $ 349 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income tax effect related to other comprehensive loss | The income tax (expense) benefit included in the Company’s other comprehensive income are related to the following items: Three Months Ended March 31, 2019 2018 Unrealized change in cash flow hedging instruments $ (83) $ 263 Realized change in cash flow hedging instruments upon settlement (18) 58 $ (101) $ 321 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Capital Stock [Abstract] | |
Stock compensation | Three Months Ended March 31, 2019 2018 Cost and expenses applicable to revenues $ 374 $ 96 Selling, general and administrative expenses 3,903 4,417 Research and development 85 334 Exit costs, restructuring charges and associated impairments - (19) $ 4,362 $ 4,828 |
Stock-based compensation by plan type | The following reflects a breakdown of the Company’s stock-based compensation expense by each plan type: Three Months Ended March 31, 2019 2018 Stock options $ 1,907 $ 1,389 Restricted Share Units 2,110 3,215 China Long Term Incentive Plan Restricted Share Units 279 183 China Options 66 41 $ 4,362 $ 4,828 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes certain information in respect of option activity under the Company’s Stock Option Plan (“SOP”) and IMAX Amended and Restated Long Term Incentive Plan (“IMAX LTIP”) for the three months ended March 31 : Weighted Average Exercise Price Per Share Number of Shares 2019 2018 2019 2018 Options outstanding, beginning of period 5,465,046 5,082,100 $ 27.63 $ 29.31 Granted 1,006,931 878,629 20.66 22.06 Exercised (31,235) - 20.36 - Forfeited (79,055) (45,164) 23.71 31.13 Expired (304,472) (10,000) 25.94 27.09 Options outstanding, end of period 6,057,215 5,905,565 26.64 28.22 Options exercisable, end of period 3,886,592 4,133,351 28.74 29.14 |
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 : Number of Awards Weighted Average Grant Date Fair Value Per Share 2019 2018 2019 2018 RSUs outstanding, beginning of period 1,033,871 995,329 $ 25.70 $ 32.80 Granted 540,535 535,362 22.61 20.85 Vested and settled (228,445) (257,888) 27.46 32.76 Forfeited (90,900) (30,024) 23.77 31.93 RSUs outstanding, end of period 1,255,061 1,242,779 24.18 27.58 |
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, 2019 2018 Net income applicable to common shareholders $ 8,265 $ 8,505 Weighted average number of common shares (000's): Issued and outstanding, beginning of period 61,434 64,696 Weighted average number of shares repurchased, net of shares issued, during the period (57) (141) Weighted average number of shares used in computing basic income per share 61,377 64,555 Assumed exercise of stock options and RSUs, net of shares assumed repurchased 182 64 Weighted average number of shares used in computing diluted income per share 61,559 64,619 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Disaggregation of Revenue by Segment | The following tables present a breakdown of the Company’s revenues between fixed and variable consideration and lease arrangements: Three Months Ended March 31, 2019 Subject to the New Revenue Recognition Standard Subject to the Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ - $ 27,950 $ - $ 27,950 Joint revenue sharing arrangements – contingent rent - - 17,857 17,857 IMAX systems – contingent rent - - 26 26 - 27,950 17,883 45,833 Theater business IMAX systems Sales and sales-type leases 8,164 2,155 - 10,319 Ongoing fees and finance income 2,869 - - 2,869 Joint revenue sharing arrangements – fixed fees - - 2,539 2,539 Theater system maintenance 12,951 - - 12,951 Other theater 1,626 - - 1,626 25,610 2,155 2,539 30,304 New business 112 722 - 834 Other Film post-production 1,947 - - 1,947 Film distribution - 715 - 715 Other - 463 102 565 1,947 1,178 102 3,227 Total $ 27,669 $ 32,005 $ 20,524 $ 80,198 Three Months Ended March 31, 2018 Subject to the New Revenue Recognition Standard Subject to the Lease Standard Fixed consideration Variable consideration Lease arrangements Total Network business IMAX DMR $ - $ 27,051 $ - $ 27,051 Joint revenue sharing arrangements – contingent rent - - 17,861 17,861 - 27,051 17,861 44,912 Theater business IMAX systems Sales and sales-type leases 15,949 2,189 - 18,138 Ongoing fees and finance income 2,730 - - 2,730 Theater system maintenance 12,712 - - 12,712 Other theater 1,377 - - 1,377 32,768 2,189 - 34,957 New business - 608 - 608 Other Film post-production 3,163 - - 3,163 Film distribution - 571 - 571 Other 50 723 - 773 3,213 1,294 - 4,507 Total $ 35,981 $ 31,142 $ 17,861 $ 84,984 |
Segmented Information (Tables)
Segmented Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segmented Information [Abstract] | |
Inter-segment revenue | Three Months Ended March 31, 2019 2018 Revenue (1) Network business IMAX DMR $ 27,950 $ 27,051 Joint revenue sharing arrangements – contingent rent 17,857 17,861 IMAX systems – contingent rent 26 - 45,833 44,912 Theater business IMAX systems 13,188 20,868 Joint revenue sharing arrangements – fixed fees 2,539 - Theater system maintenance 12,951 12,712 Other theater 1,626 1,377 30,304 34,957 New business 834 608 Other Film post-production 1,947 3,163 Film distribution 715 571 Other 565 773 3,227 4,507 Total revenues $ 80,198 $ 84,984 Gross Margin Network business IMAX DMR (2) $ 19,775 $ 18,782 Joint revenue sharing arrangements – contingent rent (2) 11,795 12,740 IMAX systems – contingent rent 26 - 31,596 31,522 Theater business IMAX systems (2) 7,166 14,292 Joint revenue sharing arrangements – fixed fees (2) 295 - Theater system maintenance 5,281 6,205 Other theater 475 (45) 13,217 20,452 New business 619 (1,469) Other Film post-production 685 1,685 Film distribution (2) (710) (1,239) Other (267) (259) (292) 187 Total segment margin $ 45,140 $ 50,692 |
Geographic Information | Three Months Ended March 31, 2019 2018 Revenue Greater China $ 26,681 $ 28,146 United States 24,293 27,632 Asia (excluding Greater China) 8,790 9,230 Western Europe 8,443 10,262 Latin America 2,653 1,479 Canada 1,872 2,566 Russia & the CIS 1,688 1,990 Rest of the World 5,778 3,679 Total $ 80,198 $ 84,984 |
Employees Pension and Postret_2
Employees Pension and Postretirement Benefits (Tables) - SERP Benefits [Member] | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Amounts accrued | March 31, December 31, 2019 2018 Projected benefit obligation: Obligation, beginning of period $ 17,977 $ 19,003 Interest cost 141 422 Actuarial gain - (1,448) Obligation, end of period and unfunded status $ 18,118 $ 17,977 |
Pension Expense | Three Months Ended March 31, 2019 2018 Interest cost $ 141 $ 105 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 year 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, 2019 As at December 31, 2018 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Level 1 Cash and cash equivalents (1) $ 123,084 $ 123,084 $ 141,590 $ 141,590 Equity securities (3) 17,644 17,644 - - Level 2 Net financed sales receivables (2) $ 117,087 $ 116,283 $ 117,990 $ 117,428 Net investment in sales-type leases (2) 8,828 8,903 9,442 9,529 Convertible loan receivable (2) 1,500 1,500 1,500 1,500 Equity securities (3) 2,035 2,035 2,022 2,022 Foreign exchange contracts — designated forwards (3) (815) (815) (1,202) (1,202) Borrowings under the Credit Facility (1) (60,000) (60,000) (40,000) (40,000) |
Recorded Investment in Financing Receivables | The following table discloses the recorded investment in financing receivables by credit quality indicator: As at March 31, 2019 As at December 31, 2018 Minimum Financed Minimum Financed Lease Sales Lease Sales Payments Receivables Total Payments Receivables Total In good standing $ 8,409 $ 106,719 $ 115,128 $ 8,701 $ 108,574 $ 117,275 Credit Watch 574 9,652 10,226 574 8,723 9,297 Pre-approved transactions - 573 573 322 565 887 Transactions suspended - 982 982 - 967 967 $ 8,983 $ 117,926 $ 126,909 $ 9,597 $ 118,829 $ 128,426 |
Investment In Financing Receivables On Nonaccrual Status | The Company’s investment in financing receivables on nonaccrual status is as follows: As at March 31, 2019 As at December 31, 2018 Recorded Related Recorded Related Investment Allowance Investment Allowance Net investment in leases $ - $ - $ - $ - Net financed sales receivables 982 (739) 967 (739) Total $ 982 $ (739) $ 967 $ (739) |
Aging of Financing Receivables | The Company’s aged financing receivables are as follows: As at March 31, 2019 Related Recorded Accrued Billed Unbilled Total Investment and 30-89 Days Financing Recorded Recorded Related Net of Current 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 32 $ 103 $ 166 $ 301 $ 8,682 $ 8,983 $ (155) $ 8,828 Net financed sales receivables 862 2,804 5,901 9,567 108,359 117,926 (839) 117,087 Total $ 894 $ 2,907 $ 6,067 $ 9,868 $ 117,041 $ 126,909 $ (994) $ 125,915 As at December 31, 2018 Related Recorded Accrued Billed Unbilled Total Investment and 30-89 Days Financing Recorded Recorded Related Net of Current 90+ Days Receivables Investment Investment Allowances Allowances Net investment in leases $ 52 $ 18 $ 253 $ 323 $ 9,274 $ 9,597 $ (155) $ 9,442 Net financed sales receivables 1,442 2,066 5,241 8,749 110,080 118,829 (839) 117,990 Total $ 1,494 $ 2,084 $ 5,494 $ 9,072 $ 119,354 $ 128,426 $ (994) $ 127,432 |
Financing receivables continues to accrue finance income | The Company’s recorded investment in past due financing receivables for which the Company continues to accrue finance income is as follows: As at March 31, 2019 Related Recorded Accrued Billed Unbilled Investment and 30-89 Days Financing Recorded Related Past Due and Current 90+ Days Receivables Investment Allowance Accruing Net investment in leases $ - $ 28 $ 159 $ 187 $ 648 $ - $ 835 Net financed sales receivables 330 1,265 5,812 7,407 32,371 - 39,778 Total $ 330 $ 1,293 $ 5,971 $ 7,594 $ 33,019 $ - $ 40,613 As at December 31, 2018 Related Recorded Accrued Billed Unbilled Investment and 30-89 Days Financing Recorded Related Past Due and Current 90+ Days Receivables Investment Allowance Accruing Net investment in leases $ 28 $ 9 $ 246 $ 283 $ 1,523 $ - $ 1,806 Net financed sales receivables 558 1,472 5,860 7,890 31,507 - 39,397 Total $ 586 $ 1,481 $ 6,106 $ 8,173 $ 33,030 $ - $ 41,203 |
Impaired financing receivables | The following table discloses information regarding the Company’s impaired financing receivables: For the Three Months Ended March 31, 2019 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allowance: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables 869 113 (739) 869 - Recorded investment for which there is no related allowance: Net investment in leases - - - - - Net financed sales receivables - - - - - Total recorded investment in impaired loans: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables $ 869 $ 113 $ (739) $ 869 $ - For the Three Months Ended March 31, 2018 Average Interest Recorded Unpaid Related Recorded Income Investment Principal Allowance Investment Recognized Recorded investment for which there is a related allowance: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables 1,050 5 (922) 1,050 - Recorded investment for which there is no related allowance: Net investment in leases - - - - - Net financed sales receivables - - - - - Total recorded investment in impaired loans: Net investment in leases $ - $ - $ - $ - $ - Net financed sales receivables $ 1,050 $ 5 $ (922) $ 1,050 $ - |
Allowance for credit losses and investment in financing receivables | The Company’s activity in the allowance for credit losses for the period and the Company’s recorded investment in financing receivables are as follows: Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Net Investment Net Financed Net Investment Net Financed in Leases Sales Receivables in Leases Sales Receivables Allowance for credit losses: Beginning balance $ 155 $ 839 $ 155 $ 922 Charge-offs - - - - Recoveries - - - - Provision - - - - Ending balance $ 155 $ 839 $ 155 $ 922 Ending balance: individually evaluated for impairment $ 155 $ 839 $ 155 $ 922 Financing receivables: Ending balance: individually evaluated for impairment $ 8,983 $ 117,926 $ 7,337 $ 123,514 |
Notional amount of derivative | Notional value of foreign exchange contracts: March 31, December 31, 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards $ 43,885 $ 50,828 |
Fair value of foreign exchange contracts | Fair value of derivatives in foreign exchange contracts: March 31, December 31, Balance Sheet Location 2019 2018 Derivatives designated as hedging instruments: Foreign exchange contracts — Forwards Other assets $ 235 $ 649 Accrued and other liabilities (1,050) (1,851) $ (815) $ (1,202) |
Derivatives in Foreign Currency Hedging relationships | Three Months Ended March 31, 2019 2018 Foreign exchange contracts — Forwards Derivative Gain (Loss) Recognized in OCI $ 68 $ (1,007) Three Months Ended March 31, Location of Derivative (Loss) Gain Reclassified from AOCI 2019 2018 Foreign exchange contracts — Forwards Selling, general and administrative expenses $ (306) $ 220 Property, plant and equipment (13) - $ (319) $ 220 Three Months Ended March 31, 2019 2018 Foreign exchange contracts — Forwards Derivative Gain Recognized In and Out of OCI $ - $ 46 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Noncontrolling Interest [Member] | |
Non-controlling Interests | |
Non-controlling Interests | Balance as at December 31, 2018 $ 6,439 Net loss (110) Balance as at March 31, 2019 $ 6,329 |
Exit Costs, Restructuring Cha_2
Exit Costs, Restructuring Charges and Associated Impairments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Exit costs restructuring and associated impairments [Abstract] | |
Exit costs restructuring charges and associated impairment [Table Text Block] | Three Months Ended March 31, 2019 2018 Restructuring charges $ 628 $ 702 Costs to exit lease and restore facilities 222 - $ 850 $ 702 |
Restructuring and related costs [Table Text Block] | Three Months Ended March 31, 2019 2018 Corporate $ 628 $ 200 IMAX DMR - 380 Theater system maintenance - 122 $ 628 $ 702 |
Restructuring and accrual activities [Table Text Block] | The following table sets forth a summary of restructuring accrual activities for the three months ended March 31, 2019 : Employee Severance and Benefits Balance as at December 31, 2018 $ 1,936 Restructuring charges 628 Cash payments (1,459) Balance as at March 31, 2019 $ 1,105 |
Basis of Presentation (Narrativ
Basis of Presentation (Narratives) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation (Textuals) [Abstract] | |
Number Of Variable Interest Entities | ten |
Variable Interest Entity, Primary Beneficiary [Member] | |
Basis of Presentation (Textuals) [Abstract] | |
Number Of Variable Interest Entities Not A Primary Beneficiary | five |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Basis of Presentation (Textuals) [Abstract] | |
Number Of Variable Interest Entities Primary Beneficiary | five |
Basis of presentation (Table 1)
Basis of presentation (Table 1) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Basis of Presentation and Condensed Consolidated Statements of Operations Supplemental Information [Abstract] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 11,783 | $ 12,203 |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 14,493 | 11,573 |
Variable Interest Entity, Non-consolidated, Carrying Amount, Total Assets | 447 | 447 |
Variable Interest Entity, Non-consolidated, Carrying Amount, Total Liabilities | $ 368 | $ 362 |
Adoption of ASC Topic 842, Le_3
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | $ 302,214 | $ 280,658 | |
Accrued and other liabilities | 99,360 | 97,724 | |
Operating Lease liability | 19,460 | $ 19,960 | |
Prepaid expenses | $ 10,757 | $ 10,294 | |
Unamortized lease inducements and other accruals | (2,534) | ||
Lease, Practical Expedients, Package [true false] | true | ||
Lease, Practical Expedient, Land Easement [true false] | false | ||
Lease, Practical Expedient, Use of Hindsight [true false] | false | ||
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true | ||
ASC Topic 842 Leases [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | 298,120 | ||
Accrued and other liabilities | 115,150 | ||
Prepaid expenses | 10,258 | ||
ASC Topic 842 Leases [Member] | As Adjusted [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | 17,462 | ||
Accrued and other liabilities | 17,426 | ||
Opererating lease asset | 19,960 | ||
Operating Lease liability | 19,960 | ||
Prepaid expenses | (36) | ||
Unamortized lease inducements and other accruals | $ (2,534) |
Adoption of ASC Topic 842, Le_4
Adoption of ASC Topic 842, Leases, Effective January 1, 2019 (Table 1) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | $ 302,214 | $ 280,658 | |
Prepaid expenses | 10,757 | 10,294 | |
Accrued and other liabilities | $ 99,360 | 97,724 | |
ASC Topic 842 Leases [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | $ 298,120 | ||
Prepaid expenses | 10,258 | ||
Accrued and other liabilities | 115,150 | ||
ASC Topic 842 Leases [Member] | Previously Reported [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | 280,658 | ||
Prepaid expenses | 10,294 | ||
Accrued and other liabilities | $ 97,724 | ||
ASC Topic 842 Leases [Member] | As Adjusted [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Property, plant and equipment | 17,462 | ||
Prepaid expenses | (36) | ||
Accrued and other liabilities | $ 17,426 |
Lease Arrangements And Financ_3
Lease Arrangements And Financing Receivables (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Leases [Line Items] | |||
Lessor, sales-type lease description | A number of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. | ||
Sales-type lease, option to purchase asset description | The Company’s leases generally do not contain an automatic transfer of title at the end of the lease term | ||
Financed sale receivables, Weighted average effective interest rate | 9.00% | 9.10% | |
Sales-type lease, weigted average remaining lease term | 7 years 2 months 12 days | 7 years 3 months 18 days | |
Sales-type lease, weigted average effective interest rate | 7.90% | 8.00% | |
Lessee, operating lease description | The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. | ||
Lessee, operating lease, existance of option to extend term | true | ||
Lessee, operating lease, existance of option to extend description | The Company assumed that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. | ||
Lessee, operating lease, assumptions for discount rate | The incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. | ||
Lessee, operating lease, existance of residual value | false | ||
Lessee, operating lease, sublease options | The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed. | ||
Operating Lease liability | $ 19,460 | $ 19,960 | |
Unamortized lease inducements and other accruals | $ (2,534) | ||
Minimum [Member] | |||
Leases [Line Items] | |||
Sales-type lease, lease term | 10 years | ||
Non-cancellable term of joint revenue sharing arrangements | 10 years | ||
Lessee, operating lease, renewal term | 1 year | ||
Maximum [Member] | |||
Leases [Line Items] | |||
Sales-type lease, lease term | 20 years | ||
Non-cancellable term of joint revenue sharing arrangements | or longer | ||
Lessee, operating lease, renewal term | 5 years |
Lease Arrangements And Financ_4
Lease Arrangements And Financing Receivables (Table 1) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales | ||
Gross minimum lease payments receivable | $ 9,776 | $ 10,499 |
Unearned finance income | (793) | (902) |
Minimum lease payments receivable | 8,983 | 9,597 |
Accumulated allowance for uncollectible amounts | (155) | (155) |
Net investment in leases | 8,828 | 9,442 |
Gross financed sales receivables | 153,139 | 155,044 |
Unearned finance income | (35,213) | (36,215) |
Financed sales receivables | 117,926 | 118,829 |
Accumulated allowance for uncollectible amounts | (839) | (839) |
Net financed sales receivables | 117,087 | 117,990 |
Total financing receivables | 125,915 | 127,432 |
Net financed sales receivables due within one year | 27,836 | 26,911 |
Net financed sales receivables due after one year | $ 89,251 | $ 91,079 |
Lease Arrangements And Financ_5
Lease Arrangements And Financing Receivables (Table 2) (Details) - Selling, general and administrative expenses [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Leases [Line Items] | |||
Operating lease cost | $ 243 | [1] | $ 1,155 |
Amortization of lease assets | 531 | 0 | |
Interest of lease liabilities | 268 | 0 | |
Total lease cost | $ 1,042 | $ 1,155 | |
[1] | Includes short-term leases and variable lease costs, which are not significant for the three months ended, March 31, 2019. |
Lease Arrangements And Financ_6
Lease Arrangements And Financing Receivables (Table 3) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Line Items] | |||
Operating Lease liability | $ 19,460 | $ 19,960 | |
Property, plant and equipment [Member] | |||
Leases [Line Items] | |||
Opererating lease asset | 16,991 | 17,462 | |
Accrued and other liabilities [Member] | |||
Leases [Line Items] | |||
Operating Lease liability | $ 19,460 | $ 19,960 | [1] |
[1] | The Company recorded lease liabilities of approximately $20.0 million as at January 1, 2019 upon initial adoption of ASC Topic 842. In addition, unamortized lease inducements of $2.8 million were reclassed from accrued liabilities to offset against the applicable right-of-use asset. |
Lease Arrangements And Financ_7
Lease Arrangements And Financing Receivables (Table 4) (Details) | Mar. 31, 2019 | Jan. 01, 2019 |
Lease Cost [Abstract] | ||
Weighted-average remaining lease term (years) | 8 years 1 month 6 days | 8 years 3 months 18 days |
Weighted-average discount rate | 5.80% | 5.80% |
Lease Arrangements And Financ_8
Lease Arrangements And Financing Receivables (Table 5) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating lease maturities of lease liabilities [Abtract] | |||
2019 (nine months remaining) | $ 2,739 | ||
2020 | 3,451 | ||
2021 | 3,047 | ||
2022 | 2,283 | ||
2023 | 2,175 | ||
Thereafter | 11,310 | ||
Total Lease Payments | 25,005 | ||
Less: interest expense | (5,545) | ||
Present value of lease liabilities | $ 19,460 | $ 19,960 | |
2019 | $ 3,847 | ||
2020 | 2,790 | ||
2021 | 2,491 | ||
2022 | 1,843 | ||
2023 | 1,759 | ||
Thereafter | 9,657 | ||
Total lease payments | $ 22,387 |
Inventories (Narratives) (Detai
Inventories (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Inventories (Textuals) [Abstract] | |||
Finished goods inventory with title passed to customer | $ 2,700 | $ 1,900 | |
Write-downs for excess and obsolete inventory | $ 0 | $ 0 |
Inventories (Table 1) (Details)
Inventories (Table 1) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw materials | $ 29,074 | $ 29,705 |
Work-in-process | 4,082 | 4,733 |
Finished goods | 11,658 | 10,122 |
Total | $ 44,814 | $ 44,560 |
Credit Facility and Other Fin_3
Credit Facility and Other Financing Arrangements (Narratives) (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | |||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018 | Mar. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jul. 05, 2018USD ($) | Jul. 05, 2018CNY (¥) | Mar. 03, 2015USD ($) | |
Working Capital Loan [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Credit Facility Description | On July 5, 2018, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), the Company’s majority-owned subsidiary in China, entered into an unsecured revolving facility for up to 200.0 million Renminbi (approximately $30.0 million U.S. Dollars) to fund ongoing working capital requirements. | |||||||
Current borrowing capacity | $ 30,000 | ¥ 200 | ||||||
Amounts Drawn | $ 0 | ¥ 0 | $ 0 | ¥ 0 | ||||
Remaining Borrowing Capacity | $ 30,000 | ¥ 200 | 30,000 | ¥ 200 | ||||
Credit Facility [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Credit Facility Description | On June 28, 2018, the Company entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as agent, and a syndicate of lenders party thereto. The Credit Agreement expands the Company’s revolving borrowing capacity from $200.0 million to $300.0 million, and also contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, depending on the mix of revolving and term loans comprising the incremental facility. The new facility (the new “Credit Facility”) matures on June 28, 2023. | |||||||
Credit Facility Maturity Date | Jun. 28, 2023 | |||||||
Interest rate description | Loans under the new Credit Facility will bear interest, at the Company’s option, at (i) LIBOR plus a margin ranging from 1.00% to 1.75% per annum; or (ii) the U.S. base rate plus a margin ranging from 0.25% to 1.00% per annum, in each case depending on the Company’s Total Leverage Ratio (as defined in the Credit Agreement). | |||||||
Line of credit facility covenant terms | The Credit Agreement requires that the Company maintain a Senior Secured Net Leverage Ratio (as defined in the Credit Agreement) of no greater than 3.25:1. In addition, the Credit Agreement contains customary affirmative and negative covenants for a transaction of this type, including covenants that limit indebtedness, liens, capital expenditures, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets. The Credit Agreement also contains representations, warranties and event of default provisions customary for a transaction of this type. | |||||||
Compliance with covenants | The Company was in compliance with all of its requirements at March 31, 2019. | |||||||
Amounts Drawn | $ 60,000 | 40,000 | ||||||
Remaining Borrowing Capacity | 240,000 | 260,000 | ||||||
Letters of credit and advance payment guarantees | $ 0 | 0 | ||||||
Effective interest rate | 3.57% | 0.00% | ||||||
Credit Facility [Member] | Minimum [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Current borrowing capacity | $ 300,000 | |||||||
Credit Facility [Member] | Maximum [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Maximum borrowing capacity | $ 440,000 | |||||||
Maximum borrowing capacity | or greater | |||||||
Wells Fargo Foreign Exchange Facility [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Settlement risk on its foreign currency forward contracts | $ 800 | |||||||
Notional Amount of arrangements entered into | 43,885 | |||||||
Bank of Montreal Facility [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Remaining Borrowing Capacity | 10,000 | 10,000 | ||||||
Letters of credit and advance payment guarantees | $ 0 | $ 0 | ||||||
Prior Credit Facility [Member] | ||||||||
Credit Facility and Other Financing Arrangements (Textuals) [Abstract] | ||||||||
Current borrowing capacity | $ 200,000 |
Credit Facility and Other Fin_4
Credit Facility and Other Financing Arrangements (Table 1) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Bank indebtedness [Line Items] | ||
Credit Facility | $ 60,000 | $ 40,000 |
Deferred charges on debt financing | (2,150) | (2,247) |
Total bank indebtedness | $ 57,850 | $ 37,753 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Narratives) (Details) ¥ in Thousands, $ in Thousands | 3 Months Ended | 25 Months Ended | 51 Months Ended | 95 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019CNY (¥) | Dec. 14, 2015USD ($) | Mar. 27, 2008 | Dec. 02, 2011 | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | |
Contingencies And Guarantees Disclosure (Textuals) [Abstract] | ||||||||
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 | ||||||
Underpayment of the freight and insurance portion of the customs duties and taxes related to the customs audit | $ 150 | |||||||
Importation Fee Underpayment threshold for criminal matter | ¥ | ¥ 200 | |||||||
Estimated penalties accrued | $ 300 | |||||||
Fine paid relating to Customs Audit | $ 85 | ¥ 570 | ||||||
Damages sought | $ 10,400 | |||||||
Counterclaim sought | $ 24,000 | |||||||
Percentage of underpayment fined | 75.00% | 75.00% | ||||||
Financial Guarantees | $ 0 | |||||||
Product Warranty Accrual | 200 | $ 200 | ||||||
Indemnification of its directors/officers | $ 0 | $ 0 | ||||||
Other Indemnification | 0 | 0 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Operations Supplemental Information (Narratives) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)FilmexhibitorTheaters | Mar. 31, 2018USD ($)Film | Dec. 31, 2018USD ($) | |
Selling Expenses | |||
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues-equipment and product sales | $ 500 | $ 700 | |
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services | 4,500 | $ 5,300 | |
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 | (200) | $ 100 | |
Direct advertising and marketing costs included in costs and expenses applicable to revenues-rentals | 200 | 100 | |
Foreign Exchange | |||
Foreign exchange translation (gain) loss | $ 200 | 100 | |
Collaborative Arrangements | |||
Total number of exhibitors under joint revenue sharing agreements | exhibitor | 35 | ||
Total number of theater systems under joint revenue sharing agreements | Theaters | 1,198 | ||
Total number of operating theaters under joint revenue sharing agreement | Theaters | 809 | ||
Amounts attributable to transactions arising between the company and its customers under joint revenue sharing arrangements | $ 20,400 | $ 17,900 | |
Average percentage of the box-office receipts of the film for recovering digital re-mastering cost | 12.50% | ||
IMAX DMR films exhibited in the period | Film | 24 | 22 | |
Amounts attributable to transactions arising between the company and its customers under IMAX DMR arrangements | $ 27,950 | $ 27,051 | |
Number of significant co-produced film arrangement | Film | 2 | ||
Number of other co-produced film arrangements | Film | 3 | ||
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets | $ 11,783 | $ 12,203 | |
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities | 14,493 | $ 11,573 | |
Amounts attributable to transactions between the company and other parties involved in the production of films included in cost and expense | $ 200 | 200 | |
Number of Co-produced television collaborative arrangements | one | ||
Co-produced television collaborative arrangement revenue | $ 0 | 400 | |
Co-produced television collaborative arrangement costs and expenses | $ 0 | $ 400 | |
Minimum [Member] | |||
Collaborative Arrangements | |||
Non-cancellable term of joint revenue sharing arrangements | 10 years | ||
Maximum [Member] | |||
Collaborative Arrangements | |||
Non-cancellable term of joint revenue sharing arrangements | or longer |
Condensed Consolidated Statem_9
Condensed Consolidated Statements of Cash Flows Supplemental Information (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Asset Impairment Charges [Abstract] | ||
Property Plant And Equipment Write Downs No Longer in Use | $ 100 | $ 500 |
Theater system components written off in Cost of Sales | $ 100 | 0 |
Theater system components written off in revenue | less than | |
Theater system components written off in Revenue | $ 100 | $ 0 |
Condensed Consolidated State_10
Condensed Consolidated Statements of Cash Flows Supplemental Information (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of Depreciation and amortization | ||
Film assets | $ 3,695 | $ 3,571 |
Property, plant and equipment | ||
Joint revenue sharing arrangements | 5,605 | 4,840 |
Other property, plant and equipment | 2,936 | 3,442 |
Other intangible assets | 1,425 | 1,217 |
Other assets | 433 | 310 |
Deferred financing costs | 117 | 141 |
Depreciation and amortization | $ 14,211 | $ 13,521 |
Condensed Consolidated State_11
Condensed Consolidated Statements of Cash Flows Supplemental Information (Table 2) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Write-downs, net of recoveries | |||
Accounts receivable | $ 431 | $ 451 | |
Property, plant and equipment | [1] | 86 | 421 |
Joint revenue sharing arrangements | [1] | 180 | 126 |
Other intangible assets | 0 | 38 | |
Write-downs, net of recoveries | $ 697 | $ 1,036 | |
[1] | The Company recognized asset impairment charges of $0.1 million (2018 — $0.5 million) reflecting property, plant and equipment that were no longer in use. In the three months ended March 31, 2019, the Company recorded a charge of $0.1 million in cost of sales applicable to Equipment and product sales and less than $0.1 million in revenue applicable to Equipment and product sales upon the upgrade of xenon-based digital systems under joint revenue sharing arrangements to laser-based digital systems. No such charge was recorded in the three months ended March 31, 2018. |
Condensed Consolidated State_12
Condensed Consolidated Statements of Cash Flows Supplemental Information (Table 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net accruals related to: | ||
Purchases of property, plant and equipment | $ (401) | $ 364 |
Investment in joint revenue sharing arrangements | 200 | (20) |
Acquisition of other intangible assets | 12 | 5 |
Net accruals related to | $ (189) | $ 349 |
Income Taxes (Narratives) (Deta
Income Taxes (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Deferred Tax Assets | |||
Change in Company's estimates of the recoverability of its deferred tax assets | $ 0 | ||
Deferred income tax asset after valuation allowance | 30,500 | $ 31,300 | |
Deferred income tax asset before valuation allowance | 30,700 | 31,500 | |
Valuation allowance | 200 | 200 | |
Provision for income taxes | (3,648) | $ (4,453) | |
Tax provision related to uncertain tax positions | 400 | ||
Tax provision related to employee stock compensation plans | 300 | ||
Impact of changes due to U.S. Tax Act | 0 | ||
Cash held outside of North America | 102,700 | 121,900 | |
Cash held in the PRC | 53,500 | 54,700 | |
Withholding tax estimate on repatriation of funds | $ 9,200 | $ 8,400 |
Income Taxes (Table 1) (Details
Income Taxes (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Unrealized change in cash flow hedging instruments | $ (83) | $ 263 |
Realized change in cash flow hedging instruments upon settlement | (18) | 58 |
Income tax effect on other comprehensive income | $ (101) | $ 321 |
Capital Stock (Narratives) (Det
Capital Stock (Narratives) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017 | May 03, 2018shares | Jun. 12, 2017USD ($) | |
Capital Stock (Textuals) [Abstract] | |||||||
Share-based compensation costs recorded for the period | $ | $ 4,362 | $ 4,828 | |||||
Common shares purchased in open market by trustee in connection with RSUs | 400,000 | 300,000 | |||||
Treasury Stock Shares Acquired | 191,033 | 44,579 | |||||
Value of treasury shares held in trust for future settlement of share based awards | $ | $ 4,207 | $ 4,207 | $ 916 | ||||
Weighted average price of common shares purchased in open market by trustee in connection with RSUs | $ / shares | $ 22.98 | $ 20.55 | |||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 6,647,056 | 6,409,364 | |||||
Parent [Member] | |||||||
Capital Stock (Textuals) [Abstract] | |||||||
Details of the share repurchase program | In 2017, the Company‘s Board of Directors approved a new $200.0 million share repurchase program for shares of the Company’s common stock. The share repurchase program expires on June 30, 2020. The repurchases may be made either in the open market or through private transactions, subject to market conditions, applicable legal requirements and other relevant factors. The Company has no obligation to repurchase shares and the share repurchase program may be suspended or discontinued by the Company at any time. | ||||||
Stock Repurchase Program, Authorized Amount | $ | $ 200,000 | ||||||
Stock Repurchase Program Expiration Date | Jun. 30, 2020 | ||||||
Stock Repurchased And Retired During Period, Shares | 0 | 654,224 | |||||
Stock Acquired, Average Cost per Share | $ / shares | $ 0 | $ 20.46 | |||||
Non-controlling Interests [Member] | |||||||
Capital Stock (Textuals) [Abstract] | |||||||
Details of the share repurchase program | In 2018, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase shares of IMAX China in an amount not to exceed 10% of the total number of issued shares of IMAX China as at May 3, 2018 (35,818,112 shares). The share purchase program expires on the date of the 2019 annual general meeting of IMAX China. The repurchases may be made in the open market or through other means permitted by applicable laws. IMAX China has no obligation to repurchase its shares and the share repurchase program may be suspended or discontinued by IMAX China at any time. | ||||||
Stock Repurchase Program, maximum percentage of shares to be repurchased | 10.00% | ||||||
Stock Repurchase Program, Authorized number of shares | 35,818,112 | ||||||
Stock Repurchased And Retired During Period, Shares | 709,800 | ||||||
Stock Acquired, Average Cost per Share | (per share) | $ 2.48 | $ 19.47 | |||||
Employee Stock Option [Member] | |||||||
Capital Stock (Textuals) [Abstract] | |||||||
Share-based compensation costs recorded for the period | $ | $ 1,907 | $ 1,389 | |||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 6,007,317 | 5,819,952 | |||||
Restricted Share Units [Member] | |||||||
Capital Stock (Textuals) [Abstract] | |||||||
Share-based compensation costs recorded for the period | $ | $ 2,110 | $ 3,215 | |||||
Antidilutive shares issuable upon exercise of stock options and restricted share units | 639,739 | 589,412 |
Capital Stock (Table 1) (Detail
Capital Stock (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock-Based Compensation [Abstract] | ||
Cost and expenses applicable to revenues | $ 374 | $ 96 |
Selling, general and administrative expenses | 3,903 | 4,417 |
Research and development | 85 | 334 |
Exit costs, restructuring charges and associated impairments | 0 | (19) |
Stock-Based Compensation | $ 4,362 | $ 4,828 |
Capital Stock (Table 2) (Detail
Capital Stock (Table 2) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense by plan type | $ 4,362 | $ 4,828 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense by plan type | 1,907 | 1,389 |
Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense by plan type | 2,110 | 3,215 |
China Long Term Incentive Plan Restricted Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense by plan type | 279 | 183 |
China Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense by plan type | $ 66 | $ 41 |
Capital Stock (Table 3) (Detail
Capital Stock (Table 3) (Details) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Option activity under the Stock Option Plan and the IMAX LTIP | ||
Options outstanding, beginning of period | 5,465,046 | 5,082,100 |
Options outstanding, weighted average exercise price per share, beginning of period | $ 27.63 | $ 29.31 |
Granted | 1,006,931 | 878,629 |
Granted, weighted average exercise price per share | $ 20.66 | $ 22.06 |
Exercised | (31,235) | 0 |
Exercised, weighted average exercise price per share | $ 20.36 | $ 0 |
Forfeited | (79,055) | (45,164) |
Forfeited, weighted average exercise price per share | $ 23.71 | $ 31.13 |
Expired | (304,472) | (10,000) |
Expired, weighted average exercise price per share | $ 25.94 | $ 27.09 |
Options outstanding, end of period | 6,057,215 | 5,905,565 |
Options outstanding, weighted average exercise price per share, end of period | $ 26.64 | $ 28.22 |
Options exercisable, end of period | 3,886,592 | 4,133,351 |
Options exercisable, weighted average exercise price per share, end of period | $ 28.74 | $ 29.14 |
Capital Stock (Table 4) (Detail
Capital Stock (Table 4) (Details) - Restricted Share Units [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Resticted Share Units activity under the IMAX LTIP | ||
RSUs outstanding, beginning of period | 1,033,871 | 995,329 |
RSUs outstanding, weighted average grant date fair value per share, beginning of period | $ 25.70 | $ 32.80 |
Granted | 540,535 | 535,362 |
Granted, weighted average grant date fair value per share | $ 22.61 | $ 20.85 |
Vested and settled | (228,445) | (257,888) |
Vested and settled, weighted average grant date fair value per share | $ 27.46 | $ 32.76 |
Forfeited | (90,900) | (30,024) |
Forfeited, weighted average grant date fair value per share | $ 23.77 | $ 31.93 |
RSUs outstanding, end of period | 1,255,061 | 1,242,779 |
RSUs outstanding, weighted average grant date fair value per share, end of period | $ 24.18 | $ 27.58 |
Capital Stock (Table 5) (Detail
Capital Stock (Table 5) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income (loss) applicable to common shareholders | $ 8,265 | $ 8,505 | ||
Weighted average number of common shares: | ||||
Issued and outstanding, beginning of period | 61,290,683 | 61,433,589 | 64,695,550 | |
Weighted average number of shares repurchased, net of shares issued, during the period | (56,773) | (140,769) | ||
Weighted average number of shares used in computing basic income per share | 61,376,816 | 64,554,781 | ||
Assumed exercise of stock options and RSUs, net of shares assumed repurchased | 182,605 | 64,528 | ||
Weighted average number of shares used in computing diluted income per share | 61,559,421 | 64,619,309 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contracts with Customers [Abstract] | ||
Revenue Remaining Performance Obligation | $ 14.7 | $ 21.9 |
Variable consideration adjustment, modifcation of existing arrangement | $ 1.4 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | $ 80,198 | $ 84,984 | ||
Network Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 45,833 | 44,912 | |
IMAX DMR [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 27,950 | 27,051 | [1] | |
Joint revenue sharing arrangements - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 17,857 | 17,861 | |
IMAX systems - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 26 | 0 | |
Theater Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 30,304 | 34,957 | |
Sales and sales-type leases [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 10,319 | 18,138 | ||
Ongoing fees and finance income [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 2,869 | 2,730 | ||
Joint revenue sharing arrangements - fixed fees [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 2,539 | 0 | |
Theater system maintenance [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 12,951 | 12,712 | |
Other theater [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 1,626 | 1,377 | |
New business [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 834 | 608 | |
Other Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 3,227 | 4,507 | |
Film post-production [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 1,947 | 3,163 | |
Film distribution [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 715 | 571 | |
Other [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | [1] | 565 | 773 | |
Fixed Consideration [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 27,669 | 35,981 | ||
Fixed Consideration [Member] | Network Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Fixed Consideration [Member] | IMAX DMR [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Fixed Consideration [Member] | Joint revenue sharing arrangements - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Fixed Consideration [Member] | IMAX systems - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | |||
Fixed Consideration [Member] | Theater Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 25,610 | 32,768 | ||
Fixed Consideration [Member] | Sales and sales-type leases [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 8,164 | 15,949 | ||
Fixed Consideration [Member] | Ongoing fees and finance income [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 2,869 | 2,730 | ||
Fixed Consideration [Member] | Joint revenue sharing arrangements - fixed fees [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | |||
Fixed Consideration [Member] | Theater system maintenance [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 12,951 | 12,712 | ||
Fixed Consideration [Member] | Other theater [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 1,626 | 1,377 | ||
Fixed Consideration [Member] | New business [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 112 | 0 | ||
Fixed Consideration [Member] | Other Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 1,947 | 3,213 | ||
Fixed Consideration [Member] | Film post-production [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 1,947 | 3,163 | ||
Fixed Consideration [Member] | Film distribution [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Fixed Consideration [Member] | Other [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 50 | ||
Variable Consideration [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 32,005 | 31,142 | ||
Variable Consideration [Member] | Network Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 27,950 | 27,051 | ||
Variable Consideration [Member] | IMAX DMR [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 27,950 | 27,051 | ||
Variable Consideration [Member] | Joint revenue sharing arrangements - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Variable Consideration [Member] | IMAX systems - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | |||
Variable Consideration [Member] | Theater Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 2,155 | 2,189 | ||
Variable Consideration [Member] | Sales and sales-type leases [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 2,155 | 2,189 | ||
Variable Consideration [Member] | Ongoing fees and finance income [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Variable Consideration [Member] | Joint revenue sharing arrangements - fixed fees [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | |||
Variable Consideration [Member] | Theater system maintenance [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Variable Consideration [Member] | Other theater [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Variable Consideration [Member] | New business [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 722 | 608 | ||
Variable Consideration [Member] | Other Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 1,178 | 1,294 | ||
Variable Consideration [Member] | Film post-production [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Variable Consideration [Member] | Film distribution [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 715 | 571 | ||
Variable Consideration [Member] | Other [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 463 | 723 | ||
Lease Arrangements [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 20,524 | 17,861 | ||
Lease Arrangements [Member] | Network Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 17,883 | 17,861 | ||
Lease Arrangements [Member] | IMAX DMR [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Joint revenue sharing arrangements - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 17,857 | 17,861 | ||
Lease Arrangements [Member] | IMAX systems - contingent rent [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 26 | |||
Lease Arrangements [Member] | Theater Business Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 2,539 | 0 | ||
Lease Arrangements [Member] | Sales and sales-type leases [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Ongoing fees and finance income [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Joint revenue sharing arrangements - fixed fees [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 2,539 | |||
Lease Arrangements [Member] | Theater system maintenance [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Other theater [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | New business [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Other Total [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 102 | 0 | ||
Lease Arrangements [Member] | Film post-production [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Film distribution [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | 0 | 0 | ||
Lease Arrangements [Member] | Other [Member] | ||||
Revenue from Contracts with Customers [Line Items] | ||||
Revenues | $ 102 | $ 0 | ||
[1] | The Company’s largest customer represented 18.9% of total revenues for the three months ended March 31, 2019 (2018 —17.2%). |
Segmented Information (Narrativ
Segmented Information (Narratives) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)Segments | Mar. 31, 2018USD ($) | |
Segment Reporting (Textuals) [Abstract] | ||
Number of Primary Groups | Segments | 4 | |
Description of products and services from which each reportable segment derives its revenues | The Company’s reportable segments are organized under four primary groups identified by nature of product sold or service provided: (1) Network Business, representing variable revenue generated by box office results and which includes the reportable segment of IMAX DMR and contingent rent from the joint revenue sharing arrangements and IMAX systems segments. Effective January 1, 2018, the Company no longer includes hybrid joint revenue sharing arrangements, which take the form of a sale, in the joint revenue sharing arrangement reportable segment. These arrangements are now reflected under the IMAX systems segment of Theater Business; (2) Theater Business, representing revenue generated by the sale and installation of theater systems and maintenance services, primarily related to the IMAX Systems and Theater System Maintenance reportable segments, and also includes hybrid (fixed and contingent) revenues and upfront installation costs from sales arrangements previously reported in the joint revenue sharing arrangements segment and after-market sales of projection system parts and 3D glasses from the other segment; (3) New Business, which includes content licensing and distribution fees associated with the Company’s original content investments, virtual reality initiatives, and other business initiatives that are in the development and/or start-up phase, and (4) Other; which includes the film post-production and distribution segments, certain IMAX theaters that the Company owns and operates, camera rentals and other miscellaneous items. | |
Description of the basis of accounting for transactions between reportable segments | Refer to Item 2 of the Company’s Form 10-Q for additional information regarding the four primary groups mentioned above. | |
Percentage of total revenues represented by largest customer | 18.90% | 17.20% |
Marketing and commission costs | $ 0.5 | $ 0.7 |
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 comprises more than 10% of the total revenue. | |
IMAX DMR [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Marketing costs (recovery) | $ 3.9 | 4.1 |
Joint revenue sharing arrangements [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Advertising, marketing and commission costs (recovery) | 0.1 | 0.2 |
IMAX systems [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Advertising, marketing and commission costs (recovery) | 0.5 | 0.7 |
Film distribution [Member] | ||
Segment Reporting (Textuals) [Abstract] | ||
Marketing costs (recovery) | $ 0.6 | $ 1.2 |
Segmented Information (Table 1)
Segmented Information (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | |||
Revenues | ||||
Revenues | $ 80,198 | $ 84,984 | ||
Gross margins | ||||
Gross margins | 45,140 | 50,692 | ||
Network Business Total [Member] | ||||
Revenues | ||||
Revenues | [1] | 45,833 | 44,912 | |
Gross margins | ||||
Gross margins | 31,596 | 31,522 | ||
IMAX DMR [Member] | ||||
Revenues | ||||
Revenues | 27,950 | 27,051 | [1] | |
Gross margins | ||||
Gross margins | [2] | 19,775 | 18,782 | |
Joint revenue sharing arrangements - contingent rent [Member] | ||||
Revenues | ||||
Revenues | [1] | 17,857 | 17,861 | |
Gross margins | ||||
Gross margins | [2] | 11,795 | 12,740 | |
IMAX systems - contingent rent [Member] | ||||
Revenues | ||||
Revenues | [1] | 26 | 0 | |
Gross margins | ||||
Gross margins | 26 | 0 | ||
Theater Business Total [Member] | ||||
Revenues | ||||
Revenues | [1] | 30,304 | 34,957 | |
Gross margins | ||||
Gross margins | 13,217 | 20,452 | ||
IMAX Systems [Member] | ||||
Revenues | ||||
Revenues | [1] | 13,188 | 20,868 | |
Gross margins | ||||
Gross margins | [2] | 7,166 | 14,292 | |
Joint revenue sharing arrangements - fixed fees [Member] | ||||
Revenues | ||||
Revenues | [1] | 2,539 | 0 | |
Gross margins | ||||
Gross margins | [2] | 295 | 0 | |
Theater system maintenance [Member] | ||||
Revenues | ||||
Revenues | [1] | 12,951 | 12,712 | |
Gross margins | ||||
Gross margins | 5,281 | 6,205 | ||
Other theater [Member] | ||||
Revenues | ||||
Revenues | [1] | 1,626 | 1,377 | |
Gross margins | ||||
Gross margins | 475 | (45) | ||
New business [Member] | ||||
Revenues | ||||
Revenues | [1] | 834 | 608 | |
Gross margins | ||||
Gross margins | 619 | (1,469) | ||
Other Total [Member] | ||||
Revenues | ||||
Revenues | [1] | 3,227 | 4,507 | |
Gross margins | ||||
Gross margins | (292) | 187 | ||
Film post-production [Member] | ||||
Revenues | ||||
Revenues | [1] | 1,947 | 3,163 | |
Gross margins | ||||
Gross margins | 685 | 1,685 | ||
Film distribution [Member] | ||||
Revenues | ||||
Revenues | [1] | 715 | 571 | |
Gross margins | ||||
Gross margins | [2] | (710) | (1,239) | |
Other [Member] | ||||
Revenues | ||||
Revenues | [1] | 565 | 773 | |
Gross margins | ||||
Gross margins | $ (267) | $ (259) | ||
[1] | The Company’s largest customer represented 18.9% of total revenues for the three months ended March 31, 2019 (2018 —17.2%). | |||
[2] | IMAX DMR segment margins include marketing costs of $3.9 million for the three months ended March 31, 2019 (2018 — $4.1 million). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $0.1 million for the three months ended March 31, 2019 (2018 — $0.2 million). IMAX systems segment margins include marketing and commission costs of $0.5 million for the three months ended March 31, 2019 (2018 — $0.7 million). Film distribution segment margins include marketing expense of $0.6 million for the three months ended March 31, 2019 (2018 — an expense of $1.2 million). |
Segmented Information (Table 2)
Segmented Information (Table 2) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Geographical Information | ||
Revenues, total | $ 80,198 | $ 84,984 |
Greater China [Member] | ||
Geographical Information | ||
Revenues, total | 26,681 | 28,146 |
United States [Member] | ||
Geographical Information | ||
Revenues, total | 24,293 | 27,632 |
Asia (excluding Greater China) [Member] | ||
Geographical Information | ||
Revenues, total | 8,790 | 9,230 |
Western Europe [Member] | ||
Geographical Information | ||
Revenues, total | 8,443 | 10,262 |
Latin America [Member] | ||
Geographical Information | ||
Revenues, total | 2,653 | 1,479 |
Canada [Member] | ||
Geographical Information | ||
Revenues, total | 1,872 | 2,566 |
Russia & the CIS [Member] | ||
Geographical Information | ||
Revenues, total | 1,688 | 1,990 |
Rest of the World [Member] | ||
Geographical Information | ||
Revenues, total | $ 5,778 | $ 3,679 |
Employees Pension and Postret_3
Employees Pension and Postretirement Benefits (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
SERP Benefits [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Benefit Obligation | $ 18,118 | $ 17,977 | $ 19,003 | |
Companies contribution and expenses during the remainder of 2019 | 0 | |||
Expected interest costs in the remainder of the year | $ 400 | |||
SERP assumptions | The SERP assumptions are that Mr. Gelfond will receive a lump sum payment six months after retirement at the end of the current term of his employment agreement (December 31, 2019), although Mr. Gelfond has not informed the Company that he intends to retire at that time. | |||
Defined Contribution Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (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% | |||
Postretirement Benefits Executives [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Benefit Obligation | $ 646 | 639 | ||
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 | $ 1,477 | 1,487 | ||
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 during the remainder of 2019 | 369 | 332 | ||
Us Internal Revenue Code [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Companies contribution and expenses during the remainder of 2019 | $ 214 | 193 | ||
Deferred Compensation Plan [Member] | ||||
Pension and Other Postretirement Benefit Expense (Textuals) [Abstract] | ||||
Deferred compensation plan description | The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering Greg Foster, former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of his Retirement Plan with the Company, the Retirement Plan will vest in full if Mr. Foster incurs a separation of service (as defined therein). | |||
Benefit obligation recorded | $ 3,600 | $ 3,600 | ||
Compensation expense recognized | $ 0 | $ 200 |
Employees Pension and Postret_4
Employees Pension and Postretirement Benefits (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Pension Expense | |||
Interest cost | $ 141 | $ 105 | |
Amounts Accrued | |||
Interest cost | 141 | 105 | |
Pension Plans, Defined Benefit [Member] | |||
Pension Expense | |||
Interest cost | 141 | $ 422 | |
Amounts Accrued | |||
Obligation, beginning of period | 17,977 | $ 19,003 | 19,003 |
Interest cost | 141 | 422 | |
Actuarial gain | 0 | (1,448) | |
Obligation, end of period and unfunded status | $ 18,118 | $ 17,977 |
Financial Instruments (Narrativ
Financial Instruments (Narratives) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)Countries | Mar. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | |
Financial Instruments (Textuals) [Abstract] | ||||
Transfers into/out of Level 3 | $ 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 theater's past due accounts. | |||
Financing receivables indications of theaters with potential impairment | Over 90 days past due is used by the Company as an indicator of potential impairment as invoices up to 90 days outstanding could be considered reasonable due to the time required for dispute resolution or for the provision of further information or supporting documentation to the customer | |||
Number of countries that generate box office | Countries | 81 | |||
Foreign Exchange contract settlement date range | Settlement dates throughout 2019 and 2020 | |||
Estimated losses to be reclassified to earnings within the next twelve months | $ (900) | |||
Financial Instruments Additional (Textuals) [Abstract] | ||||
Convertible loan receivable | $ 1,500 | |||
Convertible loan receivable due date | Sep. 26, 2019 | |||
Convertible loan effective interest rate | 5.00% | |||
Total carrying value of investments in new business ventures | 21,200 | $ 3,500 | ||
Schedule of Equity Investment [Line Items] | ||||
Equity Investment, Debt Securities | 1,500 | |||
Investment classified as equity security - fair value | 0 | 0 | ||
Investment in equity securities - cost | $ 15,200 | |||
Equity securites restrictions | 6 month lock up period | |||
Equity securities percentage ownership | less than 1% | |||
Movements in fair value of financial instruments | $ 2,491 | $ 0 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Equity Accounted Investment [Member] | ||||
Financial Instruments Additional (Textuals) [Abstract] | ||||
Carrying value of investments accounted for under the equity method of accounting | 0 | 0 | ||
Equity method investment, difference between carrying amount and underlying equity | 1,700 | |||
Gross revenues of investment new business ventures | 200 | 500 | ||
Cost of revenue of investment new business ventures | 500 | 900 | ||
Net loss on equity-accounted investments | 400 | $ 600 | ||
Other Debt Securities [Member] | ||||
Schedule of Equity Investment [Line Items] | ||||
Investment classified as equity security - cost | 3,500 | |||
Investment classified as equity security - fair value | 1,000 | 1,000 | ||
Fixed Income Securities [Member] | ||||
Schedule of Equity Investment [Line Items] | ||||
Investment classified as equity security - cost | $ 1,000 | $ 1,000 |
Financial Instruments (Table 1)
Financial Instruments (Table 1) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Financial Instrument | ||||||
Cash and cash equivalents | $ 123,084 | $ 141,590 | $ 145,579 | $ 158,725 | ||
Net financed sales receivable | 117,087 | 117,990 | ||||
Net investment in sales-type leases | 8,828 | 9,442 | ||||
Convertible loan receivable | $ 1,500 | |||||
Equity investment preferred shares | 1,500 | |||||
Foreign exchange contracts - designated forwards | (815) | (1,202) | ||||
Borrowings under the Credit Facility | (60,000) | (40,000) | ||||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Other Financial Instrument | ||||||
Cash and cash equivalents | [1] | 123,084 | 141,590 | |||
Equity Securities | [2] | 17,644 | 0 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Other Financial Instrument | ||||||
Net financed sales receivable | [3] | 117,087 | 117,990 | |||
Net investment in sales-type leases | [3] | 8,828 | 9,442 | |||
Convertible loan receivable | [3] | 1,500 | 1,500 | |||
Equity Securities | [2] | 2,035 | 2,022 | |||
Borrowings under the Credit Facility | [1] | (60,000) | (40,000) | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Other Financial Instrument | ||||||
Foreign exchange contracts - designated forwards | [2] | (815) | (1,202) | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Other Financial Instrument | ||||||
Cash and cash equivalents | [1] | 123,084 | 141,590 | |||
Equity Securities | [2] | 17,644 | 0 | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Other Financial Instrument | ||||||
Net financed sales receivable | [3] | 116,283 | 117,428 | |||
Net investment in sales-type leases | [3] | 8,903 | 9,529 | |||
Convertible loan receivable | [3] | 1,500 | 1,500 | |||
Equity Securities | [2] | 2,035 | 2,022 | |||
Borrowings under the Credit Facility | [1] | (60,000) | (40,000) | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | Designated as Hedging Instrument [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Other Financial Instrument | ||||||
Foreign exchange contracts - designated forwards | [2] | $ (815) | $ (1,202) | |||
[1] | Recorded at cost, which approximates fair value. | |||||
[2] | Value determined using quoted prices in active markets. | |||||
[3] | Estimated based on discounting future cash flows at currently available interest rates with comparable terms. |
Financial Instruments (Table 2)
Financial Instruments (Table 2) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | $ 8,983 | $ 9,597 |
Financed Sales Receivables | 117,926 | 118,829 |
Total | 126,909 | 128,426 |
In Good Standing [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 8,409 | 8,701 |
Financed Sales Receivables | 106,719 | 108,574 |
Total | 115,128 | 117,275 |
Credit Watch [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 574 | 574 |
Financed Sales Receivables | 9,652 | 8,723 |
Total | 10,226 | 9,297 |
Pre-Approved Transactions [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 0 | 322 |
Financed Sales Receivables | 573 | 565 |
Total | 573 | 887 |
Transactions Suspended [Member] | ||
Recorded investment in financing receivables by credit quality indicator | ||
Minimum Lease Payments | 0 | 0 |
Financed Sales Receivables | 982 | 967 |
Total | $ 982 | $ 967 |
Financial Instruments (Table 3)
Financial Instruments (Table 3) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment In Financing Receivables On Nonaccrual Status | ||
Net investment in leases recorded investment | $ 0 | $ 0 |
Net investment in leases related allowance | 0 | 0 |
Net financed sales receivables recorded investment | 982 | 967 |
Net financed sales receivables related allowance | (739) | (739) |
Total recorded investment | 982 | 967 |
Total related allowance | $ (739) | $ (739) |
Financial Instruments (Table 4)
Financial Instruments (Table 4) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | $ 9,868 | $ 9,072 | ||||
Related Unbilled Recorded Investment | 117,041 | 119,354 | ||||
Total Recorded Investment | 126,909 | 128,426 | ||||
Related Allowances | (994) | (994) | ||||
Recorded Investment Net of Allowances | 125,915 | 127,432 | ||||
Financing Receivables Accrued and Current | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 894 | 1,494 | ||||
Financing Receivables 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 2,907 | 2,084 | ||||
Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 6,067 | 5,494 | ||||
Net Investment in Leases [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 301 | 323 | ||||
Related Unbilled Recorded Investment | 8,682 | 9,274 | ||||
Total Recorded Investment | 8,983 | 9,597 | ||||
Related Allowances | (155) | $ (155) | (155) | $ (155) | $ (155) | $ (155) |
Recorded Investment Net of Allowances | 8,828 | 9,442 | ||||
Net Investment in Leases [Member] | Financing Receivables Accrued and Current | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 32 | 52 | ||||
Net Investment in Leases [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 103 | 18 | ||||
Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 166 | 253 | ||||
Net Financed Sales Receivables [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 9,567 | 8,749 | ||||
Related Unbilled Recorded Investment | 108,359 | 110,080 | ||||
Total Recorded Investment | 117,926 | 118,829 | ||||
Related Allowances | (839) | $ (839) | (839) | $ (922) | $ (922) | $ (922) |
Recorded Investment Net of Allowances | 117,087 | 117,990 | ||||
Net Financed Sales Receivables [Member] | Financing Receivables Accrued and Current | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 862 | 1,442 | ||||
Net Financed Sales Receivables [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 2,804 | 2,066 | ||||
Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 5,901 | 5,241 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 7,594 | 8,173 | ||||
Related Unbilled Recorded Investment | 33,019 | 33,030 | ||||
Related Allowances | 0 | 0 | ||||
Recorded Investment Net of Allowances | 40,613 | 41,203 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables Accrued and Current | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 330 | 586 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 1,293 | 1,481 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 5,971 | 6,106 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 187 | 283 | ||||
Related Unbilled Recorded Investment | 648 | 1,523 | ||||
Related Allowances | 0 | 0 | ||||
Recorded Investment Net of Allowances | 835 | 1,806 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables Accrued and Current | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 0 | 28 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 28 | 9 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Investment in Leases [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 159 | 246 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 7,407 | 7,890 | ||||
Related Unbilled Recorded Investment | 32,371 | 31,507 | ||||
Related Allowances | 0 | 0 | ||||
Recorded Investment Net of Allowances | 39,778 | 39,397 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables Accrued and Current | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 330 | 558 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables 30 to 89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | 1,265 | 1,472 | ||||
Financing Receivables Continue To Accrue Finance Income [Member] | Net Financed Sales Receivables [Member] | Financing Receivables Equal To Greater Than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Billed Financing Receivables | $ 5,812 | $ 5,860 |
Financial Instruments (Table 5)
Financial Instruments (Table 5) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Investment in Leases [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | $ 0 | $ 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 869 | 1,050 |
Unpaid Principal | 113 | 5 |
Related Allowance | (739) | (922) |
Average Recorded Investment | 869 | 1,050 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded [Member] | Net Investment in Leases [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With an allowance recorded [Member] | Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 869 | 1,050 |
Unpaid Principal | 113 | 5 |
Related Allowance | (739) | (922) |
Average Recorded Investment | 869 | 1,050 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded [Member] | Net Investment in Leases [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | 0 | 0 |
With no related allowance recorded [Member] | Net Financed Sales Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment | 0 | 0 |
Unpaid Principal | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Financial Instruments (Table 6)
Financial Instruments (Table 6) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for credit losses: | ||
Beginning balance | $ 994 | |
Ending balance | 994 | |
Net Investment in Leases [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 155 | $ 155 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 0 | 0 |
Ending balance | 155 | 155 |
Ending balance: individually evaluated for impairment | 155 | 155 |
Financing receivables: | ||
Ending balance: individually evaluated for impairment | 8,983 | 7,337 |
Net Financed Sales Receivables [Member] | ||
Allowance for credit losses: | ||
Beginning balance | 839 | 922 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 0 | 0 |
Ending balance | 839 | 922 |
Ending balance: individually evaluated for impairment | 839 | 922 |
Financing receivables: | ||
Ending balance: individually evaluated for impairment | $ 117,926 | $ 123,514 |
Financial Instruments (Table 7)
Financial Instruments (Table 7) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Foreign exchange contracts - Forwards | $ 43,885 | $ 50,828 |
Financial Instruments (Table 8)
Financial Instruments (Table 8) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair value of foreign exchange contracts | ||
Foreign exchange contracts - designated forwards | $ (815) | $ (1,202) |
Other Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of foreign exchange contracts | ||
Derivative Asset, Fair Value | 235 | 649 |
Accrued and other liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of foreign exchange contracts | ||
Derivative Liability, Fair Value | $ (1,050) | $ (1,851) |
Financial Instruments (Table 9)
Financial Instruments (Table 9) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivatives in Foreign Currency Hedging relationships | ||
Derivative Gain (Loss) Recognied in OCI (Effective Portion) | $ 68 | $ (1,007) |
Location of Derivative Gain Reclassified from AOCI into Income (Effective Portion) | (319) | 220 |
Derivative Loss (Gain) Recognized In and Out of OCI (Effective Portion) | 0 | 46 |
Property, plant and equipment [Member] | ||
Derivatives in Foreign Currency Hedging relationships | ||
Location of Derivative Gain Reclassified from AOCI into Income (Effective Portion) | (13) | 0 |
Selling, general and administrative expenses [Member] | ||
Derivatives in Foreign Currency Hedging relationships | ||
Location of Derivative Gain Reclassified from AOCI into Income (Effective Portion) | (306) | 220 |
Fair Value Hedging [Member] | ||
Derivatives in Foreign Currency Hedging relationships | ||
Derivative Gain (Loss) Recognied in OCI (Effective Portion) | $ 68 | $ (1,007) |
Non-Controlling Interests (Narr
Non-Controlling Interests (Narratives) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2014USD ($)Film | |
Redeemable Noncontrolling Interest [Line Items] | |||
Investment in film assets | $ (3,740) | $ (6,259) | |
IMAX China Noncontrolling Interest | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Minority Interest Ownership Percentage By Company | 68.24% | ||
Other Noncontrolling Interest [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Non-controlling interest description | The Company’s Original Film Fund was established in 2014 to co-finance a portfolio of 10 original large-format films. The initial investment in the Original Film Fund was committed to by a third party in the amount of $25.0 million, with the possibility of contributing additional funds. The Company has contributed $9.0 million to the Original Film Fund since 2014, and has reached its maximum contribution. The Company sees the Original Film Fund as a vehicle designed to generate a continuous, steady flow of high-quality documentary content. The Company also established its VR Fund among the Company, its subsidiary IMAX China and other strategic investors. The VR Fund will help finance the creation of interactive VR content experiences over the next three years for use across all VR platforms, including in the pilot IMAX VR Centers. In December 2018, the Company announced, in connection with its strategic review of its VR pilot initiative, that it had decided to close its remaining VR locations and write-off certain VR content investments. The Company has also decided to dissolve the VR Fund and not actively pursue any additional VR opportunities | ||
Number Of Expected Original Films | Film | 10 | ||
Investment in film assets | $ 20,900 | ||
Investment in content | 4,000 | ||
Other Noncontrolling Interest [Member] | Third Party [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Film Fund Expected Capital Contribution | $ 25,000 | ||
Other Noncontrolling Interest [Member] | IMAX [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Film fund contributions paid | $ 9,000 |
Non-Controlling Interests (Ta_2
Non-Controlling Interests (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Non-controlling Interests | ||
Issuance of subsidiary shares to non-controlling interests | $ 0 | $ 4,449 |
Net loss | 4,222 | $ 3,562 |
Other Noncontrolling Interest [Member] | ||
Non-controlling Interests | ||
Balance as at December 31, 2018 | 6,439 | |
Net loss | (110) | |
Balance as at March 31, 2019 | $ 6,329 |
Exit Costs, Restructuring Cha_3
Exit Costs, Restructuring Charges and Associated Impairments (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Exit costs restructuring and associated impairments [Abstract] | ||
Restructuring charges incurred | $ 600 | $ 700 |
Future expected restructuring charges | 0 | |
Associated Impairments | $ 0 | $ 0 |
Exit Costs, Restructuring Cha_4
Exit Costs, Restructuring Charges and Associated Impairments (Table 1) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Exit costs restructuring and associated impairments [Abstract] | ||
Restructuring charges | $ 628 | $ 702 |
Costs to exit lease and restore facilities | 222 | 0 |
Total exit costs, restructuring charges and associated impairments | $ 850 | $ 702 |
Exit Costs, Restructuring Cha_5
Exit Costs, Restructuring Charges and Associated Impairments (Table 2) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring costs and reserves [Line Items] | ||
Restructuring charges | $ 628 | $ 702 |
Corporate [Member] | ||
Restructuring costs and reserves [Line Items] | ||
Restructuring charges | 628 | 200 |
IMAX DMR [Member] | ||
Restructuring costs and reserves [Line Items] | ||
Restructuring charges | 0 | 380 |
Theater system maintenance [Member] | ||
Restructuring costs and reserves [Line Items] | ||
Restructuring charges | $ 0 | $ 122 |
Exit Costs, Restructuring Cha_6
Exit Costs, Restructuring Charges and Associated Impairments (Table 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring costs and reserves [Line Items] | ||
Restructuring charges | $ 628 | $ 702 |
Employee Severance and Benefits [Member] | ||
Restructuring costs and reserves [Line Items] | ||
Balance as at December 31, 2018 | 1,936 | |
Restructuring charges | 628 | |
Cash payments | (1,459) | |
Balance as at March 31, 2019 | $ 1,105 |