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v3.23.2

Capital Stock and Reserves (Tables) | 6 Months Ended
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Jun. 30, 2023
Equity [Abstract] |
Stock Compensation | For the three and six months ended June 30, 2023, share-based compensation expense totaled $6.8 million and $11.9 million, respectively, (2022 — $7.6 million and $13.7 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:
| Three Months Ended |  |  | Six Months Ended |
| June 30, |  |  | June 30, |
(In thousands of U.S. Dollars) | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Costs and expenses applicable to revenues | $ |  | 249 |  |  | $ |  | 269 |  |  | $ |  | 512 |  |  | $ |  | 508 |
Selling, general and administrative expenses |  |  | 6,469 |  |  |  |  | 7,263 |  |  |  |  | 11,665 |  |  |  |  | 12,989 |
Research and development |  |  | 105 |  |  |  |  | 105 |  |  |  |  | 204 |  |  |  |  | 192 |
Executive transition costs |  |  | — |  |  |  |  | — |  |  |  |  | (499 | ) |  |  |  | — |
| $ |  | 6,823 |  |  | $ |  | 7,637 |  |  | $ |  | 11,882 |  |  | $ |  | 13,689 |
Stock-based Compensation by Plan Type | The following table summarizes the Company’s share-based compensation expense by each award type:
| Three Months Ended |  |  | Six Months Ended |
| June 30, |  |  | June 30, |
(In thousands of U.S. Dollars) | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Stock Options | $ |  | — |  |  | $ |  | 122 |  |  | $ |  | 84 |  |  | $ |  | 329 |
Restricted Share Units |  |  | 3,829 |  |  |  |  | 4,478 |  |  |  |  | 7,194 |  |  |  |  | 7,889 |
Performance Stock Units |  |  | 2,001 |  |  |  |  | 1,724 |  |  |  |  | 2,925 |  |  |  |  | 3,453 |
IMAX China Stock Options |  |  | 1 |  |  |  |  | 24 |  |  |  |  | 11 |  |  |  |  | 58 |
IMAX China Long Term Incentive Plan Restricted Share Units |  |  | 848 |  |  |  |  | 1,093 |  |  |  |  | 1,389 |  |  |  |  | 1,590 |
IMAX China Long Term Incentive Plan Performance Stock Units |  |  | 144 |  |  |  |  | 196 |  |  |  |  | 279 |  |  |  |  | 370 |
| $ |  | 6,823 |  |  | $ |  | 7,637 |  |  | $ |  | 11,882 |  |  | $ |  | 13,689 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the activity under the Company’s Stock Option Plan (“SOP”) and the IMAX Corporation Second Amended and Restated Long-Term Incentive Plan (as may be amended, “IMAX LTIP”) for the six months ended June 30, 2023 and 2022:
|  | Number of Shares |  |  |  | Weighted Average Exercise Price Per Share |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Stock options outstanding, beginning of period |  |  | 3,604,739 |  |  |  | 3,736,157 |  |  | $ |  | 26.36 |  |  | $ |  | 26.61 |
Expired |  |  | (268,939 | ) |  |  | (126,569 | ) |  |  |  | 27.92 |  |  |  |  | 33.61 |
Cancelled |  |  | — |  |  |  | (2,197 | ) |  |  |  | — |  |  |  |  | 32.50 |
Stock options outstanding, end of period |  |  | 3,335,800 |  |  |  | 3,607,391 |  |  |  |  | 26.24 |  |  |  |  | 26.36 |
Stock options exercisable, end of period |  |  | 3,335,800 |  |  |  | 3,524,888 |  |  |  |  | 26.24 |  |  |  |  | 26.45 |
Restricted Stock Units Activity under the IMAX LTIP | The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the six months ended June 30, 2023 and 2022:
|  | Number of Awards |  |  | Weighted Average Grant Date Fair Value Per Share |
|  | 2023 |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |
RSUs outstanding, beginning of period |  |  | 1,252,044 |  |  |  | 1,457,883 |  |  | $ |  | 19.16 |  |  | $ |  | 19.16 |
Granted |  |  | 882,997 |  |  |  | 690,509 |  |  |  |  | 17.79 |  |  |  |  | 19.43 |
Vested and settled |  |  | (741,054 | ) |  |  | (711,376 | ) |  |  |  | 18.68 |  |  |  |  | 18.68 |
Forfeited |  |  | (86,208 | ) |  |  | (28,060 | ) |  |  |  | 19.28 |  |  |  |  | 20.16 |
RSUs outstanding, end of period |  |  | 1,307,779 |  |  |  | 1,408,956 |  |  |  |  | 18.51 |  |  |  |  | 19.51 |
Performance Stock Units Activity under the IMAX LTIP | The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the six months ended June 30, 2023 and 2022:
|  | Number of Awards |  |  | Weighted Average Grant Date Fair Value Per Share |
|  | 2023 |  |  | 2022 |  |  |  | 2023 |  |  |  | 2022 |
PSUs outstanding, beginning of period |  |  | 931,716 |  |  |  | 613,405 |  |  | $ |  | 18.96 |  |  | $ |  | 18.21 |
Granted(1) |  |  | 581,081 |  |  |  | 359,138 |  |  |  |  | 17.68 |  |  |  |  | 20.34 |
Forfeited |  |  | (213,366 | ) |  |  | (8,073 | ) |  |  |  | 18.13 |  |  |  |  | 20.90 |
Vested and settled(1) |  |  | (368,602 | ) |  |  | — |  |  |  |  | 16.92 |  |  |  |  | — |
PSUs outstanding, end of period |  |  | 930,829 |  |  |  | 964,470 |  |  |  |  | 19.16 |  |  |  |  | 18.98 |
(1) For the six months ended June 30, 2023, the balance of shares granted includes 157,963 additional shares, at a weighted average grant date fair value per share of $16.92, as PSUs granted in 2020 with EBITDA-based targets vested at 175% on account of full achievement of the targets.
Basic and Diluted Per-share Computations | The following table reconciles the denominator of the basic and diluted weighted average share computations:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issued and outstanding, beginning of period |  |  |  | 54,590 |  |  |  |  | 58,751 |  |  |  |  | 54,149 |  |  |  |  | 58,654 |
Weighted average number of shares issued (repurchased), net |  |  |  | 1 |  |  |  |  | (1,431 | ) |  |  |  | 179 |  |  |  |  | (711 | )
Weighted average number of shares outstanding - basic |  |  |  | 54,591 |  |  |  |  | 57,320 |  |  |  |  | 54,328 |  |  |  |  | 57,943 |
Weighted average effect of potential common shares, if dilutive |  |  |  | 729 |  |  |  |  | — |  |  |  |  | 817 |  |  |  |  | — |
Weighted average number of shares outstanding - diluted |  |  |  | 55,320 |  |  |  |  | 57,320 |  |  |  |  | 55,145 |  |  |  |  | 57,943 |

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