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Segment Reporting (Tables) | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Segment Reporting Information by Category and Reportable Segment | The following table presents the Company’s revenue and gross margin (margin loss) by category and reportable segment for the three months ended September 30, 2021 and 2020:
|  | Revenue(1) |  |  | Gross Margin (Margin Loss)(4) |
(In thousands of U.S. Dollars) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
IMAX Technology Network |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IMAX DMR |  | $ | 15,701 |  |  | $ | 6,886 |  |  | $ | 7,293 |  |  | $ | 3,079 |
Joint Revenue Sharing Arrangements, contingent rent |  |  | 9,887 |  |  |  | 4,473 |  |  |  | 3,626 |  |  |  | (2,491 | )
|  |  | 25,588 |  |  |  | 11,359 |  |  |  | 10,919 |  |  |  | 588 |
IMAX Technology Sales and Maintenance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IMAX Systems(2) |  |  | 13,236 |  |  |  | 17,437 |  |  |  | 8,086 |  |  |  | 8,671 |
Joint Revenue Sharing Arrangements, fixed fees |  |  | 1,036 |  |  |  | 57 |  |  |  | 280 |  |  |  | (117 | )
IMAX Maintenance |  |  | 13,055 |  |  |  | 5,855 |  |  |  | 6,462 |  |  |  | 794 |
Other Theater Business(3) |  |  | 363 |  |  |  | 307 |  |  |  | 64 |  |  |  | 31 |
|  |  | 27,690 |  |  |  | 23,656 |  |  |  | 14,892 |  |  |  | 9,379 |
New Business Initiatives |  |  | 1,238 |  |  |  | 378 |  |  |  | 1,189 |  |  |  | 372 |
Film Distribution and Post-Production |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Film Distribution(5) |  |  | 699 |  |  |  | 1,126 |  |  |  | (4 | ) |  |  | (5,597 | )
Post-Production |  |  | 899 |  |  |  | 739 |  |  |  | 420 |  |  |  | (464 | )
|  |  | 1,598 |  |  |  | 1,865 |  |  |  | 416 |  |  |  | (6,061 | )
Sub-total |  |  | 56,114 |  |  |  | 37,258 |  |  |  | 27,416 |  |  |  | 4,278 |
Other |  |  | 488 |  |  |  | (2 | ) |  |  | 71 |  |  |  | (449 | )
Total |  | $ | 56,602 |  |  | $ | 37,256 |  |  | $ | 27,487 |  |  | $ | 3,829 |
The following table presents the Company’s revenue and gross margin (margin loss) by category and reportable segment for the nine months ended September 30, 2021 and 2020:
|  | Revenue(1) |  |  | Gross Margin (Margin Loss)(4) |
(In thousands of U.S. Dollars) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
IMAX Technology Network |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IMAX DMR |  | $ | 39,438 |  |  | $ | 18,061 |  |  | $ | 22,405 |  |  | $ | 7,492 |
Joint Revenue Sharing Arrangements, contingent rent |  |  | 26,108 |  |  |  | 10,307 |  |  |  | 7,299 |  |  |  | (10,610 | )
|  |  | 65,546 |  |  |  | 28,368 |  |  |  | 29,704 |  |  |  | (3,118 | )
IMAX Technology Sales and Maintenance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IMAX Systems(2) |  |  | 35,117 |  |  |  | 27,674 |  |  |  | 21,646 |  |  |  | 14,497 |
Joint Revenue Sharing Arrangements, fixed fees |  |  | 3,776 |  |  |  | 1,196 |  |  |  | 783 |  |  |  | 110 |
IMAX Maintenance |  |  | 33,196 |  |  |  | 13,225 |  |  |  | 15,360 |  |  |  | (355 | )
Other Theater Business(3) |  |  | 1,283 |  |  |  | 1,261 |  |  |  | 269 |  |  |  | 77 |
|  |  | 73,372 |  |  |  | 43,356 |  |  |  | 38,058 |  |  |  | 14,329 |
New Business Initiatives |  |  | 2,554 |  |  |  | 1,488 |  |  |  | 2,281 |  |  |  | 1,245 |
Film Distribution and Post-Production |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Film Distribution(5) |  |  | 1,115 |  |  |  | 4,453 |  |  |  | (319 | ) |  |  | (9,296 | )
Post-Production |  |  | 2,886 |  |  |  | 3,088 |  |  |  | 1,316 |  |  |  | (96 | )
|  |  | 4,001 |  |  |  | 7,541 |  |  |  | 997 |  |  |  | (9,392 | )
Sub-total |  |  | 145,473 |  |  |  | 80,753 |  |  |  | 71,040 |  |  |  | 3,064 |
Other |  |  | 838 |  |  |  | 260 |  |  |  | (669 | ) |  |  | (1,837 | )
Total |  | $ | 146,311 |  |  | $ | 81,013 |  |  | $ | 70,371 |  |  | $ | 1,227 |
(1) | The Company’s largest customer represents 18.2% and 22.2%, respectively, of total Revenues for the three and nine months ended September 30, 2021 (2020 — 11.0% and 11.3%, respectively). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of September 30, 2021 and December 31, 2020.
(2) | The revenue from this segment includes the initial upfront payments and the present value of fixed minimum payments from sales and sales-type lease arrangements of IMAX Theater Systems, as well as the present value of estimated variable consideration from sales of IMAX Theater Systems. To a lesser extent, the revenue from this segment also includes finance income associated with these revenue streams.
(3) | The revenue from this segment principally includes after-market sales of IMAX projection system parts and 3D glasses.
(4) | IMAX DMR gross margin includes marketing costs of $3.2 million and $5.8 million, respectively, for the three and nine months ended September 30, 2021 (2020 — $0.4 million and $2.8 million, respectively). JRSA gross margin includes advertising, marketing and commission expense of $0.8 million and $1.9 million, respectively, for the three and nine months ended September 30, 2021 (2020 — $0.7 million and $1.3 million, respectively). IMAX Systems gross margin includes marketing and commission costs of $0.3 million and $0.9 million, respectively, for the three and nine months ended September 30, 2021 (2020 — $0.6 million and $1.0 million, respectively). Film Distribution segment gross margin includes marketing expense of $nil and less than $0.1 million, respectively, for the three and nine months ended September 30, 2021 (2020 — $0.2 million and $0.4 million, respectively).
(5) | During the three and nine months ended September 30, 2020, Film Distribution segment results include impairment losses of $5.4 million and $9.9 million, respectively, to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. No such charges were incurred in the three and nine months ended September 30, 2021.
Geographic Information | Revenue by geographic area is based on the location of the customer. Revenue related to IMAX DMR is presented based upon the geographic location of the theaters that exhibit the remastered films. IMAX DMR revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the theater.
|  | Three Months Ended |  |  |  | Nine Months Ended |
|  | September 30, |  |  |  | September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater China |  | $ | 22,203 |  |  | $ | 19,346 |  |  |  | $ | 75,634 |  |  |  | $ | 26,008 |
United States |  |  | 16,469 |  |  |  | 4,335 |  |  |  |  | 34,275 |  |  |  |  | 21,112 |
Western Europe |  |  | 7,634 |  |  |  | 5,085 |  |  |  |  | 11,160 |  |  |  |  | 10,273 |
Asia (excluding Greater China) |  |  | 4,925 |  |  |  | 4,935 |  |  |  |  | 12,837 |  |  |  |  | 12,663 |
Russia & the CIS |  |  | 1,353 |  |  |  | 738 |  |  |  |  | 4,577 |  |  |  |  | 2,962 |
Latin America |  |  | 1,181 |  |  |  | 1,616 |  |  |  |  | 1,579 |  |  |  |  | 3,251 |
Canada |  |  | 1,083 |  |  |  | 384 |  |  |  |  | 620 |  |  |  |  | 1,327 |
Rest of the World |  |  | 1,754 |  |  |  | 817 |  |  |  |  | 5,629 |  |  |  |  | 3,417 |
Total |  | $ | 56,602 |  |  | $ | 37,256 |  |  |  | $ | 146,311 |  |  |  | $ | 81,013 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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