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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

12. Revenue from Contracts with Customers

(a)
Disaggregated Information About Revenue

In the first quarter of 2023, the Company updated its reportable segments (see Note 13). Prior period comparatives have been revised to conform with the current period presentation. The following tables summarize the Company’s Revenues by reportable segment and revenue stream type for the three and six months ended June 30, 2023 and 2022:

 

Three Months Ended June 30, 2023

 

(In thousands of U.S. Dollars)

Technology Sales

 

 

Image Enhancement
and Maintenance Services

 

 

Technology Rentals

 

 

Finance Income

 

 

 

Total

 

Content Solutions Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film Remastering and Distribution

$

 

—

 

 

$

 

29,219

 

 

$

 

—

 

 

$

 

—

 

 

$

 

29,219

 

Other Content Solutions

 

 

—

 

 

 

 

2,071

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,071

 

 

 

 

—

 

 

 

 

31,290

 

 

 

 

—

 

 

 

 

—

 

 

 

 

31,290

 

Technology Products and Services Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System Sales

 

 

27,734

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

27,734

 

System Rentals

 

 

—

 

 

 

 

—

 

 

 

 

19,546

 

 

 

 

—

 

 

 

 

19,546

 

Maintenance

 

 

—

 

 

 

 

14,490

 

 

 

 

—

 

 

 

 

—

 

 

 

 

14,490

 

Finance Income

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,206

 

 

 

 

2,206

 

 

 

 

27,734

 

 

 

 

14,490

 

 

 

 

19,546

 

 

 

 

2,206

 

 

 

 

63,976

 

Sub-total for reportable segments

 

 

27,734

 

 

 

 

45,780

 

 

 

 

19,546

 

 

 

 

2,206

 

 

 

 

95,266

 

All Other

 

 

1,626

 

 

 

 

1,087

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,713

 

Total

$

 

29,360

 

 

$

 

46,867

 

 

$

 

19,546

 

 

$

 

2,206

 

 

$

 

97,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2023

 

(In thousands of U.S. Dollars)

Technology Sales

 

 

Image Enhancement
and Maintenance Services

 

 

Technology Rentals

 

 

Finance Income

 

 

 

Total

 

Content Solutions Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film Remastering and Distribution

$

 

—

 

 

$

 

59,292

 

 

$

 

—

 

 

$

 

—

 

 

$

 

59,292

 

Other Content Solutions

 

 

—

 

 

 

 

4,099

 

 

 

 

—

 

 

 

 

—

 

 

 

 

4,099

 

 

 

 

—

 

 

 

 

63,391

 

 

 

 

—

 

 

 

 

—

 

 

 

 

63,391

 

Technology Products and Services Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System Sales

 

 

43,853

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

43,853

 

System Rentals

 

 

—

 

 

 

 

—

 

 

 

 

39,604

 

 

 

 

—

 

 

 

 

39,604

 

Maintenance

 

 

—

 

 

 

 

28,041

 

 

 

 

—

 

 

 

 

—

 

 

 

 

28,041

 

Finance Income

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

4,145

 

 

 

 

4,145

 

 

 

 

43,853

 

 

 

 

28,041

 

 

 

 

39,604

 

 

 

 

4,145

 

 

 

 

115,643

 

Sub-total for reportable segments

 

 

43,853

 

 

 

 

91,432

 

 

 

 

39,604

 

 

 

 

4,145

 

 

 

 

179,034

 

All Other

 

 

3,329

 

 

 

 

2,562

 

 

 

 

—

 

 

 

 

—

 

 

 

 

5,891

 

Total

$

 

47,182

 

 

$

 

93,994

 

 

$

 

39,604

 

 

$

 

4,145

 

 

$

 

184,925

 

 

 

Three Months Ended June 30, 2022

 

(In thousands of U.S. Dollars)

Technology Sales

 

 

Image Enhancement and Maintenance Services

 

 

Technology Rentals

 

 

Finance Income

 

 

 

Total

 

Content Solutions Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film Remastering and Distribution

$

 

—

 

 

$

 

27,581

 

 

$

 

—

 

 

$

 

—

 

 

$

 

27,581

 

Other Content Solutions

 

 

—

 

 

 

 

1,963

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,963

 

 

 

 

—

 

 

 

 

29,544

 

 

 

 

—

 

 

 

 

—

 

 

 

 

29,544

 

Technology Products and Services Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System Sales

 

 

7,393

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

7,393

 

System Rentals

 

 

—

 

 

 

 

—

 

 

 

 

18,525

 

 

 

 

—

 

 

 

 

18,525

 

Maintenance

 

 

—

 

 

 

 

14,683

 

 

 

 

—

 

 

 

 

—

 

 

 

 

14,683

 

Finance Income

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,256

 

 

 

 

2,256

 

 

 

 

7,393

 

 

 

 

14,683

 

 

 

 

18,525

 

 

 

 

2,256

 

 

 

 

42,857

 

Sub-total for reportable segments

 

 

7,393

 

 

 

 

44,227

 

 

 

 

18,525

 

 

 

 

2,256

 

 

 

 

72,401

 

All Other

 

 

836

 

 

 

 

731

 

 

 

 

—

 

 

 

 

—

 

 

 

 

1,567

 

Total

$

 

8,229

 

 

$

 

44,958

 

 

$

 

18,525

 

 

$

 

2,256

 

 

$

 

73,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022

 

(In thousands of U.S. Dollars)

Technology Sales

 

 

Image Enhancement and Maintenance Services

 

 

Technology Rentals

 

 

Finance Income

 

 

 

Total

 

Content Solutions Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Film Remastering and Distribution

$

 

—

 

 

$

 

47,145

 

 

$

 

—

 

 

$

 

—

 

 

$

 

47,145

 

Other Content Solutions

 

 

—

 

 

 

 

3,369

 

 

 

 

18

 

 

 

 

—

 

 

 

 

3,387

 

 

 

 

—

 

 

 

 

50,514

 

 

 

 

18

 

 

 

 

—

 

 

 

 

50,532

 

Technology Products and Services Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System Sales

 

 

15,366

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

15,366

 

System Rentals

 

 

—

 

 

 

 

—

 

 

 

 

31,168

 

 

 

 

—

 

 

 

 

31,168

 

Maintenance

 

 

—

 

 

 

 

29,625

 

 

 

 

—

 

 

 

 

—

 

 

 

 

29,625

 

Finance Income

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

4,561

 

 

 

 

4,561

 

 

 

 

15,366

 

 

 

 

29,625

 

 

 

 

31,168

 

 

 

 

4,561

 

 

 

 

80,720

 

Sub-total for reportable segments

 

 

15,366

 

 

 

 

80,139

 

 

 

 

31,186

 

 

 

 

4,561

 

 

 

 

131,252

 

All Other

 

 

1,839

 

 

 

 

913

 

 

 

 

—

 

 

 

 

—

 

 

 

 

2,752

 

Total

$

 

17,205

 

 

$

 

81,052

 

 

$

 

31,186

 

 

$

 

4,561

 

 

$

 

134,004

 

For the three and six months ended June 30, 2023, revenues earned from Technology Sales include variable consideration of $11.8 million and $17.3 million, respectively (2022 — $0.9 million and $1.3 million, respectively). Variable consideration revenues represent an estimate of the contingent fees that may become due if certain annual minimum box office receipt thresholds are exceeded and are recorded as revenue in the period when the sale is recognized and may be adjusted in future periods based on actual results and changes in estimates over the term of the system agreement.

For the three and six months ended June 30, 2023, revenues earned from leasing arrangements total $20.4 million and $42.8 million (2022 — $19.1 million and $32.7 million, respectively), including $19.5 million and $39.6 million, respectively, in Revenues ― Technology Rentals (2022 — $18.5 million and $31.2 million, respectively), and $0.9 million and $3.2 million, respectively, in Revenues ― Technology Sales (2022 — $0.6 million and $1.6 million, respectively).

(b)
Deferred Revenue

IMAX System sale and lease arrangements include a requirement for the Company to provide maintenance services over the life of the arrangement, some of which are subject to a consumer price index adjustment each year. In circumstances where customers prepay the entire term’s maintenance fee based on the original arrangement, 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. As of June 30, 2023, $19.6 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2022 — $21.0 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 Systems where control of the system has not yet transferred to the customer. The deferred revenue balance related to an individual IMAX System 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.

During the three and six months ended June 30, 2023, $23.7 million and $41.0 million of revenue, respectively, was recognized that was included in the $70.9 million balance of deferred revenue as of December 31, 2022 . During the three and six months ended June 30, 2022, $14.4 million and $31.2 million of revenue, respectively, was recognized that was included in the $81.3 million balance of deferred revenue as of December 31, 2021.