XML 31 R20.htm IDEA: XBRL DOCUMENT v3.21.2
Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2021
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

13.  Revenue from Contracts with Customers

 

(a)

Disaggregated Information About Revenue

The following tables summarize the Company’s revenues by type and reportable segment for the three and nine months ended September 30, 2021:

 

 

Three Months Ended September 30, 2021

 

 

Revenue from

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts with Customers

 

 

Revenue from

 

 

 

 

 

 

 

 

 

(In thousands of U.S. Dollars)

Fixed

Consideration

 

 

Variable

Consideration

 

 

Lease

Arrangements

 

 

Finance Income

 

 

Total

 

Technology sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems(1)

$

 

9,701

 

 

$

 

802

 

 

$

 

 

98

 

 

$

 

—

 

 

$

 

10,601

 

Joint Revenue Sharing Arrangements, fixed fees

 

 

—

 

 

 

 

—

 

 

 

 

 

1,036

 

 

 

 

—

 

 

 

 

1,036

 

Other Theater Business

 

 

363

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

363

 

Other sales(2)

 

 

1,154

 

 

 

 

6

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,160

 

Sub-total

 

 

11,218

 

 

 

 

808

 

 

 

 

 

1,134

 

 

 

 

—

 

 

 

 

13,160

 

Image enhancement and maintenance services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX DMR

 

 

—

 

 

 

 

15,701

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

15,701

 

IMAX Maintenance

 

 

13,055

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

13,055

 

Film Post-Production

 

 

899

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

899

 

Film Distribution

 

 

203

 

 

 

 

496

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

699

 

Other

 

 

—

 

 

 

 

234

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

234

 

Sub-total

 

 

14,157

 

 

 

 

16,431

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

30,588

 

Technology rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Revenue Sharing Arrangements, contingent rent

 

 

—

 

 

 

 

—

 

 

 

 

 

9,887

 

 

 

 

—

 

 

 

 

9,887

 

Other

 

 

—

 

 

 

 

—

 

 

 

 

 

332

 

 

 

 

—

 

 

 

 

332

 

Sub-total

 

 

—

 

 

 

 

—

 

 

 

 

 

10,219

 

 

 

 

—

 

 

 

 

10,219

 

Finance income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems

 

 

—

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

2,635

 

 

 

 

2,635

 

Total

$

 

25,375

 

 

$

 

17,239

 

 

$

 

 

11,353

 

 

$

 

2,635

 

 

$

 

56,602

 

 

 

 

Nine Months Ended September 30, 2021

 

 

Revenue from

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts with Customers

 

 

Revenue from

 

 

 

 

 

 

 

 

 

(In thousands of U.S. Dollars)

Fixed

consideration

 

 

Variable

consideration

 

 

Lease

Arrangements

 

 

Finance Income

 

 

Total

 

Technology sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems(1)

$

 

20,143

 

 

$

 

2,573

 

 

$

 

 

4,220

 

 

$

 

—

 

 

$

 

26,936

 

Joint Revenue Sharing Arrangements, fixed fees

 

 

—

 

 

 

 

—

 

 

 

 

 

3,776

 

 

 

 

—

 

 

 

 

3,776

 

Other Theater Business

 

 

1,275

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,275

 

Other sales(2)

 

 

2,474

 

 

 

 

47

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,521

 

Sub-total

 

 

23,892

 

 

 

 

2,620

 

 

 

 

 

7,996

 

 

 

 

—

 

 

 

 

34,508

 

Image enhancement and maintenance services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX DMR

 

 

—

 

 

 

 

39,438

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

39,438

 

IMAX Maintenance

 

 

33,196

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

33,196

 

Film Post-Production

 

 

2,886

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,886

 

Film Distribution

 

 

204

 

 

 

 

911

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,115

 

Other

 

 

—

 

 

 

 

279

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

279

 

Sub-total

 

 

36,286

 

 

 

 

40,628

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

76,914

 

Technology rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Revenue Sharing Arrangements, contingent rent

 

 

—

 

 

 

 

—

 

 

 

 

 

26,108

 

 

 

 

—

 

 

 

 

26,108

 

Other

 

 

—

 

 

 

 

—

 

 

 

 

 

600

 

 

 

 

—

 

 

 

 

600

 

Sub-total

 

 

—

 

 

 

 

—

 

 

 

 

 

26,708

 

 

 

 

—

 

 

 

 

26,708

 

Finance income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems

 

 

—

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

8,181

 

 

 

 

8,181

 

Total

$

 

60,178

 

 

$

 

43,248

 

 

$

 

 

34,704

 

 

$

 

8,181

 

 

$

 

146,311

 

 

(1)

Includes revenues earned from sales or sales-type lease arrangements involving new and upgraded IMAX Theater Systems, as well as the impact on revenue of renewals and amendments to existing theater system arrangements.

(2)

Other sales include revenues associated with New Business Initiatives.

 

The following tables summarize the Company’s revenues by type and reportable segment for the three and nine months ended September 30, 2020:

 

Three Months Ended September 30, 2020

 

 

Revenue from

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts with Customers

 

 

Revenue from

 

 

 

 

 

 

 

 

 

(In thousands of U.S. Dollars)

Fixed

Consideration

 

 

Variable

Consideration

 

 

Lease

Arrangements

 

 

Finance Income

 

 

Total

 

Technology sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems(1)(2)

$

 

12,356

 

 

$

 

1,481

 

 

$

 

 

1,159

 

 

$

 

—

 

 

$

 

14,996

 

Joint Revenue Sharing Arrangements, fixed fees

 

 

—

 

 

 

 

—

 

 

 

 

 

57

 

 

 

 

—

 

 

 

 

57

 

Other Theater Business

 

 

307

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

307

 

Other sales(3)

 

 

378

 

 

 

 

15

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

393

 

Sub-total

 

 

13,041

 

 

 

 

1,496

 

 

 

 

 

1,216

 

 

 

 

—

 

 

 

 

15,753

 

Image enhancement and maintenance services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX DMR

 

 

—

 

 

 

 

6,886

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

6,886

 

IMAX Maintenance

 

 

5,855

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

5,855

 

Film Post-Production

 

 

739

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

739

 

Film Distribution

 

 

750

 

 

 

 

376

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,126

 

Other

 

 

—

 

 

 

 

(17

)

 

 

 

 

—

 

 

 

 

—

 

 

 

 

(17

)

Sub-total

 

 

7,344

 

 

 

 

7,245

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

14,589

 

Technology rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Revenue Sharing Arrangements, contingent rent

 

 

—

 

 

 

 

—

 

 

 

 

 

4,473

 

 

 

 

—

 

 

 

 

4,473

 

Sub-total

 

 

—

 

 

 

 

—

 

 

 

 

 

4,473

 

 

 

 

—

 

 

 

 

4,473

 

Finance income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems

 

 

—

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

2,441

 

 

 

 

2,441

 

Total

$

 

20,385

 

 

$

 

8,741

 

 

$

 

 

5,689

 

 

$

 

2,441

 

 

$

 

37,256

 

 

 

Nine Months Ended September 30, 2020

 

 

Revenue from

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts with Customers

 

 

Revenue from

 

 

 

 

 

 

 

 

 

(In thousands of U.S. Dollars)

Fixed

consideration

 

 

Variable

consideration

 

 

Lease

Arrangements

 

 

Finance Income

 

 

Total

 

Technology sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems(1)(2)

$

 

14,711

 

 

$

 

3,143

 

 

$

 

 

2,325

 

 

$

 

—

 

 

$

 

20,179

 

Joint Revenue Sharing Arrangements, fixed fees

 

 

—

 

 

 

 

—

 

 

 

 

 

1,196

 

 

 

 

—

 

 

 

 

1,196

 

Other Theater Business

 

 

1,261

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,261

 

Other sales(3)

 

 

1,361

 

 

 

 

105

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,466

 

Sub-total

 

 

17,333

 

 

 

 

3,248

 

 

 

 

 

3,521

 

 

 

 

—

 

 

 

 

24,102

 

Image enhancement and maintenance services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX DMR

 

 

—

 

 

 

 

18,061

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

18,061

 

IMAX Maintenance

 

 

13,225

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

13,225

 

Film Post-production

 

 

3,088

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

3,088

 

Film Distribution

 

 

3,000

 

 

 

 

1,453

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

4,453

 

Other

 

 

 

 

 

 

 

282

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

282

 

Sub-total

 

 

19,313

 

 

 

 

19,796

 

 

 

 

 

—

 

 

 

 

—

 

 

 

 

39,109

 

Technology rentals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Revenue Sharing Arrangements, contingent rent

 

 

—

 

 

 

 

—

 

 

 

 

 

10,307

 

 

 

 

—

 

 

 

 

10,307

 

Sub-total

 

 

—

 

 

 

 

—

 

 

 

 

 

10,307

 

 

 

 

—

 

 

 

 

10,307

 

Finance income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IMAX Systems

 

 

—

 

 

 

 

—

 

 

 

 

 

—

 

 

 

 

7,495

 

 

 

 

7,495

 

Total

$

 

36,646

 

 

$

 

23,044

 

 

$

 

 

13,828

 

 

$

 

7,495

 

 

$

 

81,013

 

 

 

(1)

Includes revenues earned from sales or sales-type lease arrangements involving new and upgraded IMAX Theater Systems, as well as the impact on revenue of renewals and amendments to existing theater system arrangements.

(2)

Prior period comparatives have been revised to appropriately classify $1.1 million and $2.3 million, respectively, of fixed consideration under revenue from contracts with customers to revenue from lease arrangements for the three and nine months ended September 30, 2020. 

(3)

Other sales include revenues associated with New Business Initiatives.

 

(b)

Deferred Revenue

IMAX Theater System sale and lease arrangements include a requirement for the Company to provide maintenance services over the life of the arrangement, subject to a consumer price index adjustment each year. In circumstances where customers prepay the entire term’s maintenance fee, additional payments are due to the Company for the years after its extended warranty and maintenance obligations expire. Payments upon renewal each year are either prepaid or made in arrears and can vary in frequency from monthly to annually. At September 30, 2021, $20.3 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2020 — $21.6 million). Maintenance revenue is recognized evenly over the contract term which coincides with the period over which maintenance services are provided. In the event of customer default, any payments made by the customer may be retained by the Company.

In instances where the Company receives consideration prior to satisfying its performance obligations, the recognition of revenue is deferred. The majority of the deferred revenue balance relates to payments received by the Company for IMAX Theater Systems where control of the system has not transferred to the customer. The deferred revenue balance related to an individual theater increases as progress payments are made and is then derecognized when control of the system is transferred to the customer. Recognition dates are variable and depend on numerous factors, including some outside of the Company’s control.

(See Note 2 for information on the current impacts of and uncertainties relating to the COVID-19 global pandemic which are impacting the Company’s revenues.)