0001564590-21-052480 | 10-Q | XBRL Viewer

$ 56,602

$ 37,256

$ 146,311

$ 81,013

Selling, general and administrative expenses

29,115

33,427

75,940

79,786

Gross margin

^[1]

27,487

3,829

70,371

1,227

28,377

24,815

82,393

83,247

Research and development

2,025

1,130

5,696

4,562

Amortization of intangibles

1,255

1,349

3,586

4,014

Credit loss (reversal) expense, net

(3,317)

3,925

(4,884)

15,582

Asset impairments

1,151

Legal judgment and arbitration awards (see Note 8)

(1,770)

Loss from operations

(853)

(27,390)

(14,650)

(107,329)

Realized and unrealized investment gains (losses)

1,575

5,311

(939)

Retirement benefits non-service expense

(117)

(186)

(347)

(432)

Interest income

538

586

1,680

1,842

Interest expense

(1,540)

(2,391)

(5,534)

(4,620)

Loss before taxes

(1,942)

(27,806)

(13,540)

(111,478)

Income tax expense

(4,402)

(19,349)

(9,416)

(24,606)

Equity in losses of investees, net of tax

(1,329)

(1,858)

Net loss

(6,344)

(48,484)

(22,956)

(137,942)

Less: Net (income) loss attributable to non-controlling interests

(2,034)

1,275

(9,473)

15,412

Net loss attributable to common shareholders

$ (8,378)

$ (47,209)

$ (32,429)

$ (122,530)

Net loss per share attributable to common shareholders - basic and diluted:

Net loss per share — basic and diluted

$ (0.14)

$ (0.80)

$ (0.55)

$ (2.06)

Technology Sales [Member]

Revenues

$ 13,160

$ 15,753

$ 34,508

$ 24,102

Image Enhancement and Maintenance Services [Member]

6,230

9,222

17,779

15,637

Revenues

30,588

14,589

76,914

39,109

Technology Rentals [Member]

16,461

16,989

38,582

42,049

Revenues

10,219

4,473

26,708

10,307

6,424

7,216

19,579

22,100

Finance Income [Member]

Revenues

Organization Consolidation And Presentation Of Financial Statements [Abstract]

$ 2,635

$ 2,441

$ 8,181

$ 7,495

[1]

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).

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (6,344)	$ (48,484)	$ (22,956)	$ (137,942)
Other comprehensive (loss) income, before tax
Unrealized net (loss) gain from cash flow hedging instruments	(759)	591	(159)	(935)
Realized net (gain) loss from cash flow hedging instruments	(312)	110	(1,367)	805
Reclassification of unrealized gain from ineffective cash flow hedging instruments	(25)		(318)
Foreign currency translation adjustments	(1,325)	2,387	(531)	1,772
Defined benefit and postretirement benefit plans	48	19	144	36
Total other comprehensive (loss) income, before tax	(2,373)	3,107	(2,231)	1,678
Income tax benefit (expense) related to other comprehensive (loss) income	276	(189)	446	64
Other comprehensive (loss) income, net of tax	(2,097)	2,918	(1,785)	1,742
Comprehensive loss	(8,441)	(45,566)	(24,741)	(136,200)
Comprehensive (income) loss attributable to non-controlling interests	(1,636)	553	(9,313)	14,876
Comprehensive loss attributable to common shareholders	$ (10,077)	$ (45,013)	$ (34,054)	$ (121,324)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating Activities
Net loss	$ (22,956)	$ (137,942)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	40,570	40,699
Amortization of deferred financing costs	1,749	595
Credit loss (reversal) expense, net	(4,884)	15,582
Write-downs	878	13,339
Deferred income tax (benefit) expense	(1,687)	23,142
Share-based and other non-cash compensation	18,558	16,345
Unrealized foreign currency exchange loss (gain)	555	(394)
Realized and unrealized investment (gains) losses	(5,311)	939
Equity in losses of investees	0	1,858
Changes in assets and liabilities:
Accounts receivable	(24,336)	30,350
Inventories	653	(10,278)
Film assets	(10,035)	(6,177)
Deferred revenue	(1,434)	5,233
Changes in other operating assets and liabilities	(11,902)	(24,109)
Net cash used in operating activities	(19,582)	(30,818)
Investing Activities
Purchase of property, plant and equipment	(2,353)	(658)
Investment in equipment for joint revenue sharing arrangements	(5,361)	(5,289)
Acquisition of other intangible assets	(3,399)	(1,661)
Proceeds from sale of equity investment	17,769
Net cash provided by (used in) investing activities	6,656	(7,608)
Financing Activities
Proceeds from issuance of convertible notes, net	223,675
Debt issuance costs related to convertible notes	(1,163)
Purchase of capped calls related to convertible notes	(19,067)
Revolving credit facility borrowings	3,600	280,244
Repayments of revolving credit facility borrowings	(300,243)
Credit facility amendment fees paid	(474)	(1,026)
Repurchase of common shares	(4,610)	(36,624)
Treasury stock purchased for future settlement of restricted share units		3,086
Taxes withheld and paid on employee stock awards vested	(3,045)	(251)
Common shares issued - stock options exercised	883
Dividends paid to non-controlling interests	(5,027)	(4,214)
Net cash (used in) provided by financing activities	(110,487)	233,509
Effects of exchange rate changes on cash	(958)	630
(Decrease) increase in cash and cash equivalents during period	(124,371)	195,713
Cash and cash equivalents, beginning of period	317,379	109,484
Cash and cash equivalents, end of period	193,008	305,197
IMAX China
Financing Activities
Repurchase of common shares	$ (5,016)	$ (1,534)

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Capital Stock [Member]	Other Equity [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Non-controlling Interests [Member]	Statutory Surplus Reserve [Member]
Balance, beginning of period at Dec. 31, 2019		$ 419,348	$ 171,789	$ (40,253)	$ (3,190)
Movement of Shareholders' Equity
Change in shares held in treasury		3,767
Amortization of share-based payment expense - stock options			2,137
Amortization of share-based payment expense - restricted share units			11,099
Amortization of share-based payment expense - performance stock units			1,307
Restricted share units vested			(7,688)
Common shares repurchased and retired		(17,803)		(18,821)
Common shares repurchased, IMAX China			(1,534)
Net loss attributable to common shareholders	$ (122,530)			(122,530)
Other comprehensive income (loss), net of tax	1,742				1,206
Balance, end of period at Sep. 30, 2020		405,312	177,110	(181,604)	(1,984)
Balance, beginning of period at Dec. 31, 2019						$ 89,493
Movement of Shareholders' Equity
Net income (loss) attributable to non-controlling interests	(15,412)					(10,280)
Other comprehensive (loss) income, net of tax						536
Dividends paid to non-controlling shareholders						(4,214)
Balance, end of period at Sep. 30, 2020						75,535
Balance, beginning of period at Jun. 30, 2020		405,254	172,690	(134,395)	(4,180)
Movement of Shareholders' Equity
Change in shares held in treasury		58
Amortization of share-based payment expense - stock options			1,034
Amortization of share-based payment expense - restricted share units			3,337
Amortization of share-based payment expense - performance stock units			514
Restricted share units vested			(463)
Common shares repurchased, IMAX China			(2)
Net loss attributable to common shareholders	(47,209)			(47,209)
Other comprehensive income (loss), net of tax	2,918				2,196
Balance, end of period at Sep. 30, 2020		405,312	177,110	(181,604)	(1,984)
Balance, beginning of period at Jun. 30, 2020						74,723
Movement of Shareholders' Equity
Net income (loss) attributable to non-controlling interests	(1,275)					2,186
Other comprehensive (loss) income, net of tax						722
Dividends paid to non-controlling shareholders						(2,096)
Balance, end of period at Sep. 30, 2020						75,535
Movement of Shareholders' Equity
Total shareholders' equity	474,369
Total shareholders' equity	464,008
Balance, beginning of period at Dec. 31, 2020	385,489	407,020	180,330	(202,849)	988
Movement of Shareholders' Equity
Change in shares held in treasury		7
Employee stock options exercised		883
Amortization of share-based payment expense - stock options			951
Amortization of share-based payment expense - restricted share units			13,327
Amortization of share-based payment expense - performance stock units			3,519
Restricted share units vested			(12,249)
Purchase of capped calls related to convertible notes			(19,067)
Grant date fair value of stock options exercised		272	(271)
Common shares repurchased and retired		(2,380)		(2,230)
Common shares repurchased, IMAX China			(5,016)
Net loss attributable to common shareholders	(32,429)			(32,429)
Other comprehensive income (loss), net of tax	(1,785)				(1,625)
Establishment of statutory surplus reserve, IMAX China							$ 3,932
Statutory surplus reserve deducted from retained earnings, IMAX China				(3,932)
Restricted share units vested, net of shares withheld for employee tax obligations		7,725
Balance, end of period at Sep. 30, 2021	336,906	413,527	161,524	(241,440)	(637)		3,932
Balance, beginning of period at Dec. 31, 2020	78,519					78,519
Movement of Shareholders' Equity
Net income (loss) attributable to non-controlling interests	9,473					9,472
Other comprehensive (loss) income, net of tax						(160)
Establishment of statutory surplus reserve						1,699
Statutory surplus reserve deducted from retained earnings						(1,699)
Dividends paid to non-controlling shareholders						(5,027)
Balance, end of period at Sep. 30, 2021	82,804					82,804
Balance, beginning of period at Jun. 30, 2021		415,849	160,658	(226,900)	1,062
Movement of Shareholders' Equity
Change in shares held in treasury		4
Amortization of share-based payment expense - stock options			294
Amortization of share-based payment expense - restricted share units			4,331
Amortization of share-based payment expense - performance stock units			1,315
Restricted share units vested			(58)
Common shares repurchased and retired		(2,380)		(2,230)
Common shares repurchased, IMAX China			(5,016)
Net loss attributable to common shareholders	(8,378)			(8,378)
Other comprehensive income (loss), net of tax	(2,097)				(1,699)
Establishment of statutory surplus reserve, IMAX China							3,932
Statutory surplus reserve deducted from retained earnings, IMAX China				(3,932)
Restricted share units vested, net of shares withheld for employee tax obligations		54
Balance, end of period at Sep. 30, 2021	336,906	$ 413,527	$ 161,524	$ (241,440)	$ (637)		$ 3,932
Balance, beginning of period at Jun. 30, 2021						84,090
Movement of Shareholders' Equity
Net income (loss) attributable to non-controlling interests	2,034					2,040
Other comprehensive (loss) income, net of tax						(398)
Establishment of statutory surplus reserve						1,699
Statutory surplus reserve deducted from retained earnings						(1,699)
Dividends paid to non-controlling shareholders						(2,928)
Balance, end of period at Sep. 30, 2021	82,804					$ 82,804
Movement of Shareholders' Equity
Total shareholders' equity	$ 419,710

Basis of Presentation

9 Months Ended

Sep. 30, 2021

Basis of Presentation

1. Basis of Presentation

Accounting Principles

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”) and pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. In the Company’s opinion, the unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are necessary for a fair statement of the results for the interim periods presented. The interim results presented in the Company’s Condensed Consolidated Statements of Operations are not necessarily indicative of results for a full year, particularly in this interim period due to the impacts of the COVID-19 global pandemic (see Note 2).

These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company’s 2020 Annual Report on Form 10-K (the “2020 Form 10-K”), which should be consulted for a summary of the significant accounting policies utilized by the Company. The Condensed Consolidated Financial Statements are prepared following the same accounting policies disclosed in the 2020 Form 10-K.

Principles of Consolidation

These Condensed Consolidated Financial Statements include the accounts of the Company together with its consolidated subsidiaries, except for subsidiaries which have been identified as variable interest entities (“VIEs”) where the Company is not the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company has evaluated its various variable interests to determine whether they are VIEs as required by U.S. GAAP.

The Company has interests in ten film production companies, which have been identified as VIEs. The Company is the primary beneficiary of and consolidates five of these entities as it has the power to direct the activities that most significantly impact the economic performance of the VIE, and it has the obligation to absorb losses or the right to receive benefits from the respective VIE that could potentially be significant. The majority of the assets relating to these production companies are held by the IMAX Original Film Fund (the “Original Film Fund”) as described in Note 17(b). The Company does not consolidate the other five film production companies because it does not have the power to direct their activities and it does not have the obligation to absorb the majority of the expected losses or the right to receive expected residual returns. The Company uses the equity method of accounting for these entities, which are not material to the Company’s Condensed Consolidated Financial Statements.

Total assets and liabilities of the Company’s consolidated VIEs are as follows:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Total assets	$	1,575	$	1,543
Total liabilities	$	259	$	230

In October 2021, the Company and Maximus Technologies Limited dissolved its previously announced joint venture, IMAX AI, and the intellectual property assets contributed to the joint venture were returned to each party.

Estimates and Assumptions

In preparing the Company’s Condensed Consolidated Financial Statements, management makes judgments in applying various accounting policies. The areas of policy judgment are consistent with those reported in Note 3(b) in the 2020 Form 10-K. In addition, management makes assumptions about the Company’s future operating results and cash flows in deriving critical accounting estimates used in preparing the Condensed Consolidated Financial Statements. The significant estimates made by management include, but are not limited to: (i) the allocation of the transaction price in an IMAX Theater System arrangement to distinct performance obligations; (ii) estimates of variable consideration related to future box office performance; (iii) expected credit losses on accounts receivable, financing receivables and variable consideration receivables; (iv) provisions for the write-down of excess and obsolete inventory; (v) the fair values of the reporting units used in assessing the recoverability of goodwill; (vi) the cash flow estimates used in testing the recoverability of long-lived assets such as the theater system equipment supporting joint revenue sharing arrangements; (vii) the economic lives of the theater system equipment supporting joint revenue sharing arrangements; (viii) the useful lives of intangible assets; (ix) the ultimate revenue forecasts used to test the recoverability of film assets; (x) the discount rates used to determine the present value of lease liabilities; (xi) pension plan assumptions; (xii) estimates related to the fair value and projected vesting of share-based payment awards; (xiii) the valuation of deferred income tax assets; and (xiv) reserves related to uncertain tax positions.

The Company’s operations have been significantly impacted by the COVID-19 global pandemic, as described in Note 2. The impact of the COVID-19 global pandemic on the Company’s business and financial results will continue to depend on numerous evolving factors that cannot be accurately predicted and that will vary by jurisdiction and market, including the duration and scope of the pandemic, the emergence of variants of the virus, the progress made on administering vaccines, the continuing impact of the pandemic on global economic conditions and ongoing government responses to the pandemic, which could lead to further theater closures, theater capacity restrictions and/or delays in the release of films. However, management is encouraged by the broad reopening of the IMAX theater network, the continued progress towards the resumption of normal theater operations, and recent box office results. Accordingly, during the three and nine months ended September 30, 2021, the Company reversed $3.3 million and $4.9 million, respectively, of its allowance for current expected credit losses, reflecting the improving outlook for theater operators as the theatrical exhibition industry continues to recover from the COVID-19 global pandemic. Despite the improving environment, there continues to be a degree of risk and uncertainty relating to future credit losses on receivables, inventory write downs, impairments of film assets, impairments of long-lived assets (including the theater system equipment supporting the Company’s joint revenue sharing arrangements), impairments of goodwill, a further valuation allowance against deferred tax assets, and the reversal of variable consideration receivables that are based on estimates of future box office performance. In the current environment, assumptions about box office results, IMAX Theater System installations, and customer creditworthiness have greater variability than normal, which could in the future significantly impact management’s estimates and judgments relating to the recoverability of the Company’s financial and non-financial assets.

Impact of COVID-19 Pandemic

9 Months Ended

Sep. 30, 2021

Impact Of Coronavirus Nineteen Pandemic [Abstract]

Impact of COVID-19 Pandemic

2. Impact of COVID-19 Pandemic

The impact of the COVID-19 pandemic is complex and continuously evolving, resulting in significant disruption to the Company’s business and the global economy. At various points during the pandemic, authorities around the world imposed measures intended to control the spread of COVID-19, including stay-at-home orders and restrictions on large public gatherings, which caused movie theaters in countries around the world to temporarily close, including the IMAX theaters in those countries. As a result of the theater closures, movie studios postponed the theatrical release of most films originally scheduled for release in 2020 and early 2021, including many scheduled to be shown in IMAX theaters, while several other films were released directly or concurrently to streaming platforms. More recently, stay-at-home orders and capacity restrictions have been lifted in almost all key markets and, beginning in the third quarter of 2020, movie theaters throughout the IMAX network gradually reopened. As of September 30, 2021, 93% of the theaters in the global IMAX commercial multiplex network were open at various capacities, spanning 70 countries. This included 100% of Domestic theaters (i.e., in the United States and Canada), 93% of the theaters in Greater China and 87% of the theaters in Rest of World markets.

The impact of the COVID-19 global pandemic has resulted in significantly lower levels of revenues, earnings and operating cash flows for the Company during 2020 and, to a lesser extent, during the nine months ended September 30, 2021, when compared to periods prior to the onset of the pandemic, as gross box office (“GBO”) results from the Company’s theater customers declined, the installation of certain theater systems was delayed, and maintenance services were generally suspended for theaters that were closed. In response to uncertainties associated with the pandemic, the Company took significant steps to preserve cash by eliminating non-essential costs, temporarily furloughing certain employees, reducing the working hours of other employees and reducing all non-essential capital expenditures to minimum levels. The Company also implemented an active cash management process, which, among other things, required senior management approval of all outgoing payments. In addition, as a result of the financial difficulties faced by certain of the Company’s exhibition customers arising out of pandemic-related closures, although improving, the Company has experienced and may continue to experience delays in collecting payments due under existing theater sale or lease arrangements. The Company has provided temporary relief to certain exhibitor customers by waiving or reducing maintenance fees during periods when theaters are closed or operating with reduced capacities and, in certain situations, by providing extended payment terms on annual minimum payment obligations in exchange for a corresponding or longer extension of the term of the underlying sale or lease arrangement.

For the three and nine months ended September 30, 2021, GBO receipts generated by IMAX DMR films totaled $141.9 million and $360.7 million, respectively, surpassing the totals for the same periods in 2020 by $71.7 million (102%) and $192.6 million (115%), respectively. Moreover, GBO receipts for September 2021 approximated the levels achieved prior to the onset of the COVID-19 global pandemic. Management is encouraged by these box office results, the return of the prevalence of exclusive theatrical windows beginning with the release of Shang-Chi and the Legend of the Ten Rings in September 2021, and the strong pipeline of Hollywood movies scheduled to be released for theatrical exhibition during the remainder of 2021 and in 2022. However, the impact of the COVID-19 global pandemic on the Company’s business and financial results will continue to depend on numerous evolving factors that cannot be accurately predicted and that will vary by jurisdiction and market, including the duration and scope of the pandemic, the emergence of variants of the virus, the progress made on administering vaccines, the continuing impact of the pandemic on global economic conditions and ongoing government responses to the pandemic, which could lead to further theater closures, theater capacity restrictions and/or delays in the release of films.

Recently Issued Accounting Standards

9 Months Ended

Sep. 30, 2021

Accounting Changes And Error Corrections [Abstract]

Recently Issued Accounting Standards

3. Recently Issued Accounting Standards

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The purpose of ASU 2020-04 is to provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The only contract held by the Company that references the London Interbank Offered Rate (LIBOR) is the Credit Agreement (as defined in Note 7), which utilizes USD LIBOR to determine the interest rate applicable to borrowings. The Credit Agreement matures on June 28, 2023, prior to the date that USD LIBOR rates will cease publication on June 30, 2023. Accordingly, the Company does not expect ASU 2020-04 to have a material effect on its Condensed Consolidated Financial Statements.

In July 2021, the FASB issued ASU No. 2021-05, “Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments” (“ASU 2021-05”), which requires sales-type or direct financing leases that have variable payments (that do not depend on a rate or an index) and result in a day-one loss to be classified as operating leases. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The amendments are effective for annual periods beginning after December 15, 2021 including interim periods within those periods. Early adoption is permitted. The Company has not yet adopted ASU 2021-05, but has determined that the impact of adopting this guidance will not have a material impact on its Condensed Consolidated Financial Statements.

The Company considers the applicability and impact of all recently issued FASB ASUs. ASUs 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 September 30, 2021.

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Current Expected Credit Losses

Current Expected Credit Losses

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

4. Current Expected Credit Losses

The Company’s accounts receivable, financing receivables and variable consideration receivables are measured on the amortized cost basis and presented at the net amount expected to be collected.

Accounts Receivable

Accounts receivable principally includes amounts currently due to the Company under theater sale and sales-type lease arrangements, contingent fees owed by theater operators as a result of box office performance and fees for theater maintenance services. Accounts receivable also includes amounts due to the Company from movie studios and other content creators for digitally remastering films into IMAX formats, as well as for film distribution and post-production services.

In order to mitigate the credit risk associated with accounts receivable, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The Company’s internal credit quality classifications for theater operators are as follows:

•

Good Standing — The theater operator continues to be in good standing as payments and reporting are up to date.

•

Credit Watch — The theater operator has demonstrated a delay in payments, but continues to be in active communication with the Company. Theater operators placed on Credit Watch are subject to enhanced monitoring. In addition, depending on the size of the outstanding balance, length of time in arrears and other factors, future transactions may need to be approved by management. These receivables are in better condition than those in the Pre-Approved Transactions Only category, but are not in as good condition as the receivables in the Good Standing category.

•

Pre-Approved Transactions Only — The theater operator has demonstrated a delay in payments with little or no communication with the Company. All services and shipments to the theater operator must be reviewed and approved by management. These receivables are in better condition than those in the All Transactions Suspended category, but are not in as good condition as the receivables in the Credit Watch category. In certain situations, depending on the individual facts and circumstances related to each customer, finance income recognition may be suspended for the net investment in lease and financed sale receivable balances for customers in the Pre-Approved Transactions Only category. See below for a discussion of the Company’s net investment in leases and financed sale receivables.

•

All Transactions Suspended — The theater operator is severely delinquent, non-responsive or not negotiating in good faith with the Company. Once a theater operator is classified within the All Transactions Suspended category, the theater is placed on nonaccrual status and all revenue recognitions related to the theater are stopped.

The ability of the Company to collect its accounts receivable balances is heavily dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators, or other customers, may experience financial difficulties, such as those caused by the COVID-19 global pandemic, that could result in their being unable to fulfill their payment obligations to the Company.

The Company develops its estimate of credit losses by class of receivable and customer type through a calculation that utilizes historical loss rates which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after taking into account management’s internal credit quality classifications, as well as macro-economic and industry risk factors. The write-off of any billed receivable balance requires the approval of management.

The following tables summarize the activity in the Allowance for Credit Losses related to Accounts Receivable for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30, 2021												Nine Months Ended September 30, 2021
(In thousands of U.S. Dollars)	Theater Operators			Studios			Other			Total			Theater Operators			Studios			Other			Total
Beginning balance	$	8,597		$	2,517		$	1,192		$	12,306		$	8,368		$	4,481		$	1,446		$	14,295
Current period reversal, net		(489	)		(251	)		(24	)		(764	)		(111	)		(1,928	)		(269	)		(2,308	)
Write-offs		(43	)		(270	)		—			(313	)		(278	)		(522	)		—			(800	)
Foreign exchange		(89	)		2			—			(87	)		(3	)		(33	)		(9	)		(45	)
Ending balance	$	7,976		$	1,998		$	1,168		$	11,142		$	7,976		$	1,998		$	1,168		$	11,142

	Three Months Ended September 30, 2020												Nine Months Ended September 30, 2020
(In thousands of U.S. Dollars)	Theater Operators			Studios			Other			Total			Theater Operators			Studios			Other			Total
Beginning balance	$	6,317		$	5,455		$	838		$	12,610		$	3,302		$	893		$	942		$	5,137
Current period provision (reversal), net		1,623			(262	)		468			1,829			4,718			4,424			364			9,506
Write-offs		(614	)		—			—			(614	)		(614	)		—			—			(614	)
Foreign exchange		133			184			(9	)		308			53			60			(9	)		104
Ending balance	$	7,459		$	5,377		$	1,297		$	14,133		$	7,459		$	5,377		$	1,297		$	14,133

For the three and nine months ended September 30, 2021, the Company’s allowance for current expected credit losses related to Accounts Receivable decreased by $1.2 million and $3.2 million, respectively. These decreases are principally due to the reversal of previously recorded credit loss expense as a result of an improving outlook for theater operators following the reopening of theaters and the resumption of normal film release schedules as the theatrical exhibition industry continues to recover from the COVID-19 global pandemic, as well as better than anticipated collection experience with respect to foreign studio receivable balances.

For the three and nine months ended September 30, 2020, the Company’s allowance for current expected credit losses related to Accounts Receivable increased by $1.5 million and $9.0 million, respectively, principally reflecting a reduction in the credit quality of and heightened collection risk associated with theater and foreign movie studio accounts receivable primarily due to the COVID-19 global pandemic.

Management believes that the September 30, 2021 allowance for current expected credit losses related to Accounts Receivable adequately addresses the risk of not collecting these receivables in full. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company’s customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Note 2).

Financing Receivables

Financing receivables are due from theater operators and consist of the Company’s net investment in sales-type leases and receivables associated with financed sales of IMAX Theater Systems. Similar to accounts receivable, management performs an initial credit evaluation prior to entering into an arrangement with a customer and then regularly monitors the credit quality of each customer through an analysis of collections history and aging. This monitoring process includes meetings on at least a monthly basis to identify credit concerns and potential changes in credit quality classification. A customer may improve their credit quality classification once a substantial payment is made on an overdue balance or when the customer has agreed to a payment plan and payments have commenced in accordance with that plan. Changes in credit quality classification are dependent upon management approval. The internal credit quality classifications utilized by the Company for accounts receivable, as described above, are also used for financing receivables.

The ability of the Company to collect its financing receivable balances is heavily dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators may experience financial difficulties, such as those caused by the COVID-19 global pandemic, that could result in their being unable to fulfill their payment obligations to the Company.

As of September 30, 2021 and December 31, 2020, financing receivables consist of the following:

	September 30,			December 31,
(In thousands of U.S. Dollars)	2021			2020
Net investment in leases
Gross minimum payments due under sales-type leases	$	23,284		$	20,830
Unearned finance income		(788	)		(859	)
Present value of minimum payments due under sales-type leases		22,496			19,971
Allowance for credit losses		(494	)		(557	)
Net investment in leases		22,002			19,414
Financed sales receivables
Gross minimum payments due under financed sales		150,964			150,917
Unearned finance income		(32,199	)		(31,247	)
Present value of minimum payments due under financed sales		118,765			119,670
Allowance for credit losses		(5,565	)		(7,274	)
Net financed sales receivables		113,200			112,396
Total financing receivables	$	135,202		$	131,810

Net financed sales receivables due within one year	$	32,154		$	34,937
Net financed sales receivables due after one year		81,046			77,459
Total financed sales receivables	$	113,200		$	112,396

As of September 30, 2021 and December 31, 2020, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s sales-type lease arrangements and financed sale receivables, as applicable, are as follows:

	September 30,			December 31,
	2021			2020
Weighted-average remaining lease term (in years)
Sales-type lease arrangements		9.0			8.3
Weighted-average interest rate
Sales-type lease arrangements		6.55	%		6.56	%
Financed sales receivables		8.75	%		8.92	%

The tables below provide information on the Company’s net investment in leases by credit quality indicator as of September 30, 2021 and December 31, 2020. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts.

(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2021	2021		2020		2019		2018		2017		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	959	$	2,747	$	2,245	$	—	$	—	$	1,150	$	7,101
Credit Watch		3,374		1,251		5,650		2,533		881		863		14,552
Pre-approved transactions		—		—		—		—		—		—		—
Transactions suspended		—		—		—		—		—		843		843
Total net investment in leases	$	4,333	$	3,998	$	7,895	$	2,533	$	881	$	2,856	$	22,496

(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2020	2020		2019		2018		2017		2016		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	2,143	$	1,190	$	2,730	$	—	$	—	$	1,826	$	7,889
Credit Watch		2,005		7,278		—		988		—		1,047		11,318
Pre-approved transactions		—		—		—		—		—		—		—
Transactions suspended		—		—		—		—		—		764		764
Total net investment in leases	$	4,148	$	8,468	$	2,730	$	988	$	—	$	3,637	$	19,971

The tables below provide information on the Company’s financed sale receivables by credit quality indicator as of September 30, 2021 and December 31, 2020. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts.

(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2021	2021		2020		2019		2018		2017		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,311	$	4,414	$	5,733	$	3,831	$	5,890	$	17,830	$	44,009
Credit Watch		1,911		4,108		6,046		9,847		7,733		35,739		65,384
Pre-approved transactions		—		—		—		309		1,420		2,285		4,014
Transactions suspended		—		—		—		—		1,315		4,043		5,358
Total financed sales receivables	$	8,222	$	8,522	$	11,779	$	13,987	$	16,358	$	59,897	$	118,765

(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2020	2020		2019		2018		2017		2016		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,830	$	5,480	$	3,547	$	3,740	$	5,072	$	12,660	$	37,329
Credit Watch		1,986		6,501		11,356		12,520		11,446		34,351		78,160
Pre-approved transactions		—		—		—		—		613		755		1,368
Transactions suspended		—		—		—		987		728		1,098		2,813
Total financed sales receivables	$	8,816	$	11,981	$	14,903	$	17,247	$	17,859	$	48,864	$	119,670

The following tables provide an aging analysis for the Company’s net investment in leases and financed sale receivables as of September 30, 2021 and December 31, 2020:

	As of September 30, 2021
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses			Net
Net investment in leases	$	221	$	149	$	876	$	1,246	$	21,250	$	22,496	$	(494	)	$	22,002
Financed sales receivables		1,989		1,748		10,207		13,944		104,821		118,765		(5,565	)		113,200
Total	$	2,210	$	1,897	$	11,083	$	15,190	$	126,071	$	141,261	$	(6,059	)	$	135,202

	As of December 31, 2020
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses			Net
Net investment in leases	$	298	$	180	$	689	$	1,167	$	18,804	$	19,971	$	(557	)	$	19,414
Financed sales receivables		3,307		1,943		10,699		15,949		103,721		119,670		(7,274	)		112,396
Total	$	3,605	$	2,123	$	11,388	$	17,116	$	122,525	$	139,641	$	(7,831	)	$	131,810

The Company considers Financing Receivables with an aging between 60-89 days as indications of theaters with potential collection concerns. At this point, 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 perform an enhanced review to assess collectibility of the theater’s past due accounts. The over 90 days past due category may be an indicator of potential impairment as up to 90 days outstanding is considered to be a reasonable time to resolve any issues. Given the potential impacts of the COVID-19 global pandemic on the Company’s customers, management has enhanced its monitoring procedures with respect to overdue receivables.

The following table provides information about the Company’s net investment in leases and financed sale receivables with billed amounts past due for which it continues to accrue finance income as of September 30, 2021 and December 31, 2020. The amounts disclosed for each credit quality classification are determined on a customer-by-customer basis and include both billed and unbilled amounts.

	As of September 30, 2021
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses			Net
Net investment in leases	$	180	$	144	$	458	$	782	$	13,770	$	(248	)	$	14,304
Financed sales receivables		1,152		1,083		8,286		10,521		51,756		(2,870	)		59,407
Total	$	1,332	$	1,227	$	8,744	$	11,303	$	65,526	$	(3,118	)	$	73,711

	As of December 31, 2020
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses			Net
Net investment in leases	$	231	$	162	$	359	$	752	$	13,912	$	(310	)	$	14,354
Financed sales receivables		2,026		1,551		10,249		13,826		62,602		(4,434	)		71,994
Total	$	2,257	$	1,713	$	10,608	$	14,578	$	76,514	$	(4,744	)	$	86,348

The following table provides information about the Company’s net investment in leases and financed sale receivables that are on nonaccrual status as of September 30, 2021 and December 31, 2020:

	As of September 30, 2021							As of December 31, 2020
(In thousands of U.S. Dollars)	Recorded Receivable		Allowance for Credit Losses			Net			Recorded Receivable		Allowance for Credit Losses			Net
Net investment in leases	$	843	$	(16	)	$	827		$	764	$	(18	)	$	746
Net financed sales receivables		6,158		(1,276	)		4,882			2,813		(1,482	)		1,331
Total	$	7,001	$	(1,292	)	$	5,709		$	3,577	$	(1,500	)	$	2,077

A theater operator that is classified within the “All Transactions Suspended” category is placed on nonaccrual status and all revenue recognitions related to the theater are stopped. In certain cases, a theater operator classified within the “Pre-Approved Transactions” category may also be placed on nonaccrual status. While the 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.

For the three and nine months ended September 30, 2021, the Company recognized less than $0.1 million and $0.1 million, respectively, (2020 — $nil and $0.1 million, respectively) in Finance Income related to the net investment in leases with billed amounts past due. For the three and nine months ended September 30, 2021, the Company recognized $1.3 million and $3.6 million, respectively, (2020 — $1.4 million and $4.2 million, respectively) in Finance Income related to the financed sale receivables with billed amounts past due.

The following tables summarize the activity in the allowance for credit losses related to the Company’s net investment in leases and financed sale receivables for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Net Investment			Financed			Net Investment			Financed
(In thousands of U.S. Dollars)	in Leases			Sales Receivables			in Leases			Sales Receivables
Beginning balance	$	579		$	7,113		$	557		$	7,274
Current period reversal, net		(84	)		(1,536	)		(64	)		(1,741	)
Foreign exchange		(1	)		(12	)		1			32
Ending balance	$	494		$	5,565		$	494		$	5,565

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	Net Investment			Net Financed			Net Investment			Net Financed
(In thousands of U.S. Dollars)	in Leases			Sales Receivables			in Leases			Sales Receivables
Beginning balance	$	459		$	3,709		$	155		$	915
Current period provision		105			1,201			409			4,014
Write-offs		(69	)		(330	)		(69	)		(330	)
Foreign exchange		9			63			9			44
Ending balance	$	504		$	4,643		$	504		$	4,643

For the three and nine months ended September 30, 2021, the Company’s allowance for current expected credit losses related to its net investment in leases and financed sale receivables decreased by $1.6 million and $1.8 million, respectively. These decreases are principally due to the reversal of previously recorded credit loss expense as a result of an improving outlook for theater operators following the reopening of theaters and the resumption of normal film release schedules as the theatrical exhibition industry continues to recover from the COVID-19 global pandemic.

For the three and nine months ended September 30, 2020, the Company’s allowance for current expected credit losses related to its investment in leases and financed sale receivables increased by $1.0 million and $4.1 million, respectively, principally reflecting a reduction in the credit quality of and heightened collection risk associated with these receivables primarily due to the COVID-19 global pandemic.

Management believes that the September 30, 2021 allowance for current expected credit losses related to Financing Receivables adequately addresses the risk of not collecting these receivables in full. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company’s customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Note 2).

Variable Consideration Receivables

In sale arrangements, variable consideration may become due to the Company from theater operators if certain annual minimum box office receipt thresholds are exceeded. Such variable consideration is recorded as revenue in the period when the sale is recognized and adjusted in future periods based on actual results and changes in estimates. Variable consideration is only recognized to the extent the Company believes there is not a risk of significant revenue reversal.

The ability of the Company to collect its variable consideration receivables is heavily dependent on the viability and solvency of individual theater operators which is significantly influenced by consumer behavior and general economic conditions. Theater operators may experience financial difficulties, such as those caused by the COVID-19 global pandemic, that could result in their being unable to fulfill their payment obligations to the Company.

The Company develops its estimate of credit losses by class of receivable and customer type through a calculation utilizing historical loss rates for financed sale receivables which are then adjusted for specific receivables that are judged to have a higher-than-normal risk profile after taking into account management’s internal credit quality classifications, as well as macro-economic and industry risk factors.

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
(In thousands of U.S. Dollars)	Theater Operators			Theater Operators		Theater Operators			Theater Operators
Beginning balance	$	2,028		$	863	$	1,887		$	—
Current period (reversal) provision, net		(933	)		790		(771	)		1,653
Foreign Exchange		(1	)		6		(22	)		6
Ending balance	$	1,094		$	1,659	$	1,094		$	1,659

For the three and nine months ended September 30, 2021, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables decreased by $0.9 million and $0.8 million, respectively. These decreases are principally due to the reversal of previously recorded credit loss expense as a result of an improving outlook for theater operators following the reopening of theaters and the resumption of normal film release schedules as the theatrical exhibition industry begins to recover from the COVID-19 global pandemic.

For the three and nine months ended September 30, 2020, the Company’s allowance for current expected credit losses related to Variable Consideration Receivables increased by $0.8 million and $1.7 million, respectively, principally reflecting a reduction in the credit quality of and heightened collection risk associated with Variable Consideration Receivables primarily due to the COVID-19 global pandemic.

Management believes that the September 30, 2021 allowance for current expected credit losses related to Variable Consideration Receivables adequately addresses the risk of not collecting these receivables in full. Management’s judgments regarding expected credit losses are based on the facts available to management and involve estimates about the future. Due to the unprecedented nature of the COVID-19 pandemic, its effect on the Company’s customers and their ability to meet their financial obligations to the Company is difficult to predict. As a result, the Company’s judgments and associated estimates of credit losses may ultimately prove, with the benefit of hindsight, to be incorrect (see Note 2).

The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security.

Lease Arrangements

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Lease Arrangements

5. Lease Arrangements

(a)

IMAX Corporation as a Lessee

The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. Most of the Company’s leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs and its level of investment in leasehold improvements, among other factors. The incremental borrowing rate used in the calculation of the Company’s 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 lives of right-of-use assets and related 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.

For the three and nine months ended September 30, 2021 and 2020, the components of lease expense recorded within Selling, General and Administrative expenses are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands of U.S. Dollars)	2021		2020		2021		2020
Operating lease cost ⁽¹⁾	$	163	$	133	$	546	$	392
Amortization of lease assets		684		706		2,098		2,155
Interest on lease liabilities		242		258		715		765
Total lease cost	$	1,089	$	1,097	$	3,359	$	3,312

(1)	Includes short-term leases and variable lease costs, which are not significant for the three and nine months ended September 30, 2021 and 2020.

For the nine months ended September 30, 2021 and 2020, supplemental cash and non-cash information related to leases is as follows:

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021			2020
Cash paid for amounts included in the measurement of lease liabilities	$		2,907	$		2,721
Right-of-use assets obtained in exchange for lease obligations	$		1,047	$		297

As of September 30, 2021 and December 31, 2020, supplemental balance sheet information related to leases is as follows:

		September 30,		December 31,
(In thousands of U.S. Dollars)		2021		2020
Assets	Balance Sheet Classification
Right-of-Use Assets	Property, plant and equipment	$	12,833	$	13,911
Liabilities	Balance Sheet Classification
Operating Leases	Accrued and other liabilities	$	15,388	$	16,634

As of September 30, 2021 and December 31, 2020, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s operating leases are as follows:

	September 30,			December 31,
	2021			2020
Weighted-average remaining lease term (years)		7.0			7.6
Weighted-average discount rate		5.96	%		5.91	%

As of September 30, 2021, the maturities of the Company’s operating lease liabilities are as follows:

(In thousands of U.S. Dollars)
2021 (three months remaining)	$	924
2022		3,360
2023		2,454
2024		2,230
2025		2,078
Thereafter		8,026
Total lease payments	$	19,072
Less: interest expense		(3,684	)
Present value of operating lease liabilities	$	15,388

(b)

IMAX Corporation as a Lessor

The Company provides IMAX Theater Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX Theater System, the Company earns fixed upfront and ongoing consideration. 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 sales-type lease arrangements are described in Note 3(n) in the Company’s 2020 Form 10-K. Under the Company’s sales-type 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. The Company’s sales-type 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 an 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 IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company.

The Company also provides IMAX Theater Systems to customers through joint revenue sharing arrangements. Under the traditional form of these arrangements, in exchange for providing the IMAX Theater System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than requiring the customer to pay a fixed upfront fee or annual minimum payments. Under certain other joint revenue sharing arrangements, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX Theater System. 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 the IMAX Theater System under a joint revenue sharing arrangement 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 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 an extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company.

(See Note 4 for information related to the net investment in leases related to the Company’s sales-type lease arrangements.)

Inventories

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

6. Inventories

As of September 30, 2021 and December 31, 2020, Inventories consist of the following:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Raw materials	$	27,172	$	30,096
Work-in-process		1,964		3,014
Finished goods		9,109		6,470
	$	38,245	$	39,580

At September 30, 2021, Inventories include finished goods of $2.2 million (December 31, 2020 — $2.1 million) for which title had passed to the customer, but the criteria for revenue recognition were not met as of the balance sheet date.

During the three and nine months ended September 30, 2021, the Company recognized write-downs of $0.3 million and $0.5 million, respectively, (2020 — $0.6 million and $0.7 million, respectively) for excess and damaged inventory.

Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

7. Debt

(a)

Revolving Credit Facility Borrowings

As of September 30, 2021 and December 31, 2020, Revolving Credit Facility Borrowings consist of the following:

	September 30,			December 31,
(In thousands of U.S. Dollars)	2021			2020
Credit Facility borrowings	$	—		$	300,000
Working Capital Facility borrowings		10,974			7,643
Unamortized debt issuance costs		(1,488	)		(1,967	)
Revolving Credit Facility Borrowings, net	$	9,486		$	305,676

Credit Agreement

The Company has a credit agreement, the Fifth Amended and Restated Credit Agreement, with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto (the “Credit Agreement”). The Company’s obligations under the Credit Agreement are guaranteed by certain of its subsidiaries (the “Guarantors”) and are secured by first-priority security interests in substantially all the assets of the Company and the Guarantors. The facility provided by the Credit Agreement (the “Credit Facility”) matures on June 28, 2023.

The Credit Agreement has a revolving borrowing capacity of $300.0 million, and contains an uncommitted accordion feature allowing the Company to further expand its borrowing capacity to $440.0 million or greater, subject to certain conditions, depending on the mix of revolving and term loans comprising the incremental facility.

In the first quarter of 2020, in response to uncertainties associated with the outbreak of the COVID-19 global pandemic and its impact on the Company’s business, the Company drew down $280.0 million in available borrowing capacity under the Credit Facility, resulting in total outstanding borrowings of $300.0 million, which remained outstanding as of December 31, 2020. During the first half of 2021, the Company completely repaid the $300.0 million of Credit Facility borrowings, using cash on hand following the issuance of the Convertible Notes (as discussed below). Accordingly, as of September 30, 2021, there were no outstanding borrowings under the Credit Facility. As of September 30, 2021 and December 31, 2020, the Company did not have any letters of credit or advance payment guarantees outstanding under the Credit Facility.

The Credit Agreement contains a covenant that requires the Company 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, 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 customary representations, warranties, and event of default provisions.

On March 15, 2021, the Company entered into the Second Amendment to the Credit Agreement (as previously amended by the First Amendment to the Credit Agreement, dated as of June 10, 2020) (collectively, the “First and Secondment Amendments”). On July 28, 2021, the Company entered into the Third Amendment to the Credit Agreement (as previously amended by the First and Second Amendments) (collectively, the “Amendments”). The Amendments, among other things, (i) suspend the Senior Secured Net Leverage Ratio covenant through the first quarter of 2022, (ii) re-establish the Senior Secured Net Leverage Ratio covenant thereafter, provided that for subsequent quarters that such covenant is tested, as applicable, the Company will be permitted to use its quarterly EBITDA (as defined in the Credit Agreement) from the third and fourth quarters of 2019 in lieu of EBITDA for the corresponding quarters of 2021, (iii) add a $75.0 million minimum liquidity covenant measured at the end of each calendar month, (iv) restrict the Company’s ability to make certain restricted payments, dispositions and investments, create or assume liens and incur debt that would otherwise have been permitted by the Credit Agreement, (v) permit the issuance of the Convertible Notes (as discussed below) and related transactions, including the capped call transactions, or other unsecured debt, in an amount not to exceed $290.0 million, (vi) allow $30.0 million in permitted repurchases of the Company’s common shares, subject to a $300.0 million pro forma minimum liquidity covenant and (vii) increase permitted repurchases of the common shares of IMAX China Holding, Inc. from $5.0 million to $20.0 million, subject to pro forma compliance with the existing financial covenants set forth in the Credit Agreement. The modifications to the negative covenants, the minimum liquidity covenant, permitted share repurchases and modifications to certain other provisions in the Credit Agreement pursuant to the Amendments are effective until the earlier of the delivery of the compliance certificate for the fourth quarter of 2022 or the date on which the Company, in its sole discretion, elects to calculate its compliance with the Senior Secured Net Leverage Ratio by using either its actual EBITDA or annualized EBITDA (the “Designated Period”). As of September 30, 2021, the Company was in compliance with all of its requirements under the Credit Agreement, as amended.

Borrowings under the Credit Facility 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); provided, however, that from the effective date of the First Amendment to the Credit Agreement until the Company delivers a compliance certificate under the Credit Facility following the end of the Designated Period, the applicable margin for LIBOR borrowings will be 2.50% per annum and the applicable margin for U.S. base rate borrowings will be 1.75% per annum. The effective interest rate for the three and nine months ended September 30, 2021 was nil and 2.64%, respectively (2020 — 2.70% and 2.24%, respectively).

In addition, the Credit Facility has standby fees ranging from 0.25% to 0.38% per annum, based on the Company’s Total Leverage Ratio with respect to the unused portion of the Credit Facility; provided, however, that from the effective date of the First Amendment to the Credit Agreement until the Company delivers a compliance certificate under the Credit Facility following the end of the Designated Period, the standby fee will be 0.50% per annum.

The Company incurred fees of approximately $1.6 million in connection with the Amendments, which are being amortized on a straight-line basis to Interest Expense over the relevant amendment periods.

Working Capital Facility

On July 1, 2021, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, renewed its unsecured revolving facility for up to 200.0 million Chinese Renminbi (“RMB”) (approximately $30.8 million) to fund ongoing working capital requirements (the “Working Capital Facility”). The Working Capital Facility expires in July 2022.

As of September 30, 2021, outstanding Working Capital Facility borrowings were RMB 71.2 million ($11.0 million) and outstanding letters of guarantee were RMB 0.3 million (less than $0.1 million). As of December 31, 2020, outstanding Working Capital Facility borrowings were RMB 49.9 million ($7.6 million) and no letters of guarantee were issued. As of September 30, 2021, the amount available for future borrowings under the Working Capital Facility was RMB 118.8 million ($18.3 million) and the amount available for letters of guarantee was RMB 9.7 million ($1.5 million). The amount available for future borrowings under the Working Capital Facility is not subject to a standby fee. The effective interest rate for borrowings under the Working Capital Facility for the three and nine months ended September 30, 2021 was 4.29% and 4.32%, respectively (2020 ― 4.35%, respectively).

Wells Fargo Foreign Exchange Facility

Within the Credit Facility, the Company is able to enter into foreign currency forward contracts and/or other swap arrangements. As of September 30, 2021, the net unrealized loss on the Company’s outstanding foreign currency forward contracts was $(0.3) million, representing the amount by which the notional value of these forward contracts exceeded their fair value (December 31, 2020 — $2.0 million). As of September 30, 2021, the notional value of the Company’s outstanding foreign currency forward contracts was $25.8 million (December 31, 2020 — $31.9 million).

NBC Facility

On October 28, 2019, the Company entered into a $5.0 million facility with the National Bank of Canada (the “NBC Facility”) fully insured by Export Development Canada for use solely in conjunction with the issuance of performance guarantees and letters of credit. The NBC Facility is renewed on an annual basis. It was renewed on October 15, 2021 for a one-year term on the same terms and conditions. The Company did not have any letters of credit or advance payment guarantees outstanding as of September 30, 2021 and December 31, 2020 under the NBC Facility.

(b)

Convertible Notes

As of September 30, 2021 and December 31, 2020, Convertible Notes (as defined below) consist of the following:

	September 30,			December 31,
(In thousands of U.S. Dollars)	2021			2020
Convertible Notes	$	230,000		$	—
Unamortized discounts and debt issuance costs		(6,735	)		—
	$	223,265		$	—

On March 19, 2021, the Company issued $230.0 million of 0.500% Convertible Senior Notes due 2026 (the “Convertible Notes”) in a private placement conducted pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from the issuance of the Convertible Notes were $223.7 million, after deducting the initial purchasers’ discounts and commissions. In addition, the Company paid $1.2 million of debt issuance costs associated with the Convertible Notes. The Company used a portion of the net proceeds from the issuance of the Convertible Notes to make a partial repayment of outstanding Credit Facility borrowings (as discussed above), and is using the remainder for working capital or other general corporate purposes.

The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum on the principal thereof, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. The Convertible Notes will mature on April 1, 2026, unless they are redeemed or repurchased by the Company or converted on an earlier date.

Holders of the Convertible Notes have the right to convert their Convertible Notes in certain circumstances and during specified periods. Before January 1, 2026, holders of the Convertible Notes have the right to convert their Convertible Notes only upon the occurrence of certain events. From and after January 1, 2026, holders of the Convertible Notes may convert their Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company will pay or deliver, as applicable, cash or a combination of cash (in an amount no less than the principal amount of the Convertible Notes being converted) and common shares, at its election, based on the applicable conversion rates. The initial conversion rate is 34.7766 common shares per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $28.75 per common share, and is subject to adjustment upon the occurrence of certain events.

The Convertible Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after April 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any Convertible Notes for redemption will constitute a “make-whole fundamental change” with respect to such notes, in which case the conversion rate applicable to the conversion of such notes will be increased in certain circumstances if such notes are converted after they are called for redemption.

In addition, upon the occurrence of a “fundamental change” (as defined below), holders may require the Company to repurchase their Convertible Notes at a cash repurchase price equal to the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, if any. Subject to the terms and conditions of the indenture governing the Convertible Notes, a “fundamental change” means, among other things, an event resulting in (i) a change of control, (ii) a transfer of all or substantially all of the assets of the Company, (iii) a merger, (iv) liquidation or dissolution of the Company, or (v) delisting of the Company’s common shares from a national securities exchange.

On January 1, 2021, the Company elected to early adopt ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for convertible debt that may be settled in cash. As a result, the Company recorded the Convertible Notes entirely as a liability in the Condensed Consolidated Balance Sheets, net of initial purchasers’ discounts and commissions and other debt issuance costs, with interest expense reflecting the cash coupon plus the amortization of the discounts and capitalized costs. Additionally, ASU 2020-06 modifies the treatment of convertible debt securities that may be settled in cash or shares by requiring the use of the “if-converted” method. Under the “if-converted” method, because the principal amount of the Convertible Notes is settled in cash and the conversion spread is settleable in the Company’s common shares, diluted earnings per share is calculated by including the net number of incremental shares that would be issued upon conversion of the Convertible Notes, using the average market price during the period. Accordingly, the application of the “if-converted” method may reduce the Company’s reported diluted earnings per share.

In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Capped Call Transactions are expected to reduce potential dilution resulting from the common shares the Company is required to issue and/or to offset any potential cash payments the Company is required to make in excess of the principal amount of the Convertible Notes in the event that the market price per share of the Company’s common shares is greater than the strike price of the Capped Call Transactions, with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial cap price of $37.2750 per share of the Company’s common shares, which represents a premium of 75% over the last reported sale price of the common shares on March 16, 2021, and is subject to certain adjustments under the terms of the Capped Call Transactions. Collectively, the Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes, the number of the Company’s common shares underlying the Convertible Notes. The cost of the Capped Call Transactions was approximately $19.1 million.

The Capped Call Transactions are separate transactions, and are not part of the terms of the Convertible Notes and will not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Capped Call Transactions.

The Capped Call Transactions meet all of the applicable criteria for equity classification in accordance with ASC 815-10-15-74(a), “Derivatives and Hedging—Embedded Derivatives—Certain Contracts Involving an Entity’s Own Equity,” and, as a result, the related $19.1 million cost was recorded as a reduction to Other Equity within Shareholders’ Equity on the Company’s Condensed Consolidated Statements of Shareholder’s Equity and Condensed Consolidated Balance Sheets.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Commitments And Contingencies Disclosure [Abstract]

Commitments, Contingencies and Guarantees

9 Months Ended

Sep. 30, 2021

Commitments, Contingencies and Guarantees

8. Commitments, Contingencies and Guarantees

(a)

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.

(b)

Contingencies and guarantees

The Company is involved in lawsuits, claims, and proceedings, including those identified below, which arise in the ordinary course of business. Management is required to assess the likelihood of any adverse judgments or outcomes related to these legal contingencies, as well as potential ranges of probable or reasonably possible losses. The Company records a provision for a liability when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The determination of the amount of any liability recorded or disclosed is reviewed at least quarterly based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel, taking into account the impact of negotiations, settlements, rulings, and other pertinent information related to the case. The amount of liabilities recorded or disclosed for these contingencies may change in the future due to changes in management’s judgments resulting from new developments or changes in settlement strategy. Any resulting adjustment to the liabilities recorded by the Company could have a material adverse effect on its results of operations, cash flows, and financial position in the period or periods in which such changes in judgment occur. The Company believes it has adequate provisions for any such matters. The Company expenses legal costs relating to its lawsuits, claims and proceedings as incurred.

(i)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 judgment 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, which award the Company calculates to be $24.2 million, inclusive of interest, as of September 30, 2021. 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 May 2012, 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.

(ii)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. 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 a decision regarding the merits of the dispute. On December 3, 2020, the District Judge entered a final judgment (the “Final Judgment”) against the Company in the total amount of $11.3 million as damages under the Award. As of December 31, 2020, the Company’s Consolidated Balance Sheets includes a liability within Accrued and Other Liabilities of $11.3 million related to the Final Judgment, consisting of $7.2 million related to amounts previously collected from or owed to Giencourt principally in respect of theater systems that were not delivered and $4.1 million recorded within Legal Judgment and Arbitration Awards in the Company’s Consolidated Statements of Operations during the year ended December 31, 2020 in respect of the remaining amounts owed under the Final Judgment. On June 23, 2021, the Company entered into a final settlement agreement with Giencourt to fully resolve all disputes between the parties in the United States and Ontario (the “Settlement Agreement”). In the second quarter of 2021, the Company paid Giencourt $9.5 million as required by the terms of the Settlement Agreement. As a result of the Settlement Agreement, the Final Judgment has been vacated, all litigation between the parties in all jurisdictions has been dismissed and full and final releases have been exchanged by the parties. Accordingly, upon entry in the Settlement Agreement on June 23, 2021, the remaining $1.8 million liability recorded within Accrued and Other Liabilities was reversed and a corresponding $1.8 million benefit was recorded in the Company’s Condensed Consolidated Statements of Operations within Legal Judgment and Arbitration Awards.

(iii)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.

(iv)In the normal course of business, the Company enters into agreements that may contain features that meet the definition of a guarantee. A guarantee is 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.

(c)

Financial Guarantees

Certain subsidiaries of the Company have provided significant financial guarantees to third parties under the Credit Agreement.

(d)

Product Warranties

The Company’s accrual for product warranties, which is recorded within Accrued and Other Liabilities in the Condensed Consolidated Balance Sheets, was $nil and less than $0.1 million as of September 30, 2021 and December 31, 2020, respectively.

(e)

Director/Officer Indemnifications

The Company’s by-laws contain 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 Company’s Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020, with respect to this indemnity.

(f)

Other Indemnification Agreements

In the normal course of the Company’s operations, the Company provides indemnifications to counterparties in transactions such as: IMAX Theater Systems lease and sale agreements and the supervision of installation or servicing of IMAX 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 IMAX Theater 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 Statements of Operations Supplemental Information

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Consolidated Statements of Operations Supplemental Information

9. Condensed Consolidated Statements of Operations Supplemental Information

(a)

Selling Expenses

Sales commissions and other selling expenses paid prior to the recognition of the related revenue are deferred and recognized in the Condensed Consolidated Statements of Operations upon the recognition of the related theater system revenue. For the three and nine months ended September 30, 2021, the sales commission costs recognized within Costs and Expenses Applicable to Revenues – Technology Sales are $0.2 million and $0.6 million, respectively (2020 — $0.3 million and $0.4 million, respectively). Direct advertising and marketing costs for each theater are expensed as incurred. For the three and nine months ended September 30, 2021, the total of all such costs recognized within Costs and Expenses Applicable to Revenues – Technology Sales was $0.1 million and $0.3 million, respectively (2020 — $0.3 million and $0.6 million, respectively).

Sales commissions related to joint revenue sharing arrangements accounted for operating leases are recognized as Costs and Expenses Applicable to Revenues – Technology Rentals in the month they are earned by the salesperson, which is typically the month in which the theater system is installed. For the three and nine months ended September 30, 2021, sales commissions related to such joint revenue sharing arrangements totaled $0.1 million and $0.4 million, respectively (2020 — $0.3 million and $0.5 million, respectively). Direct advertising and marketing costs for each theater are expensed as incurred. For the three and nine months ended September 30, 2021, the total of such costs recognized within Costs and Expenses Applicable to Revenues – Technology Rentals was $0.7 million and $1.5 million, respectively (2020 — $0.4 million and $0.8 million, respectively).

Film exploitation costs, including advertising and marketing expense, totaled $3.2 million and $5.9 million, respectively, for the three and nine months ended September 30, 2021 (2020 — $0.5 million and $3.1 million, respectively), and are expensed as incurred within Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services.

(b)

Foreign Exchange

Included in Selling, General and Administrative Expenses for the three and nine months ended September 30, 2021 is a net loss of $(0.6) million and a net gain of $1.1 million, respectively (2020 — net gain of $0.2 million and net loss of $(0.8) million, respectively) resulting from changes in exchange rates related to foreign currency denominated monetary assets and liabilities. See Note 16(c) for additional information.

(c)

Collaborative Arrangements

Joint Revenue Sharing Arrangements

The Company provides IMAX Theater Systems to customers through joint revenue sharing arrangements. Under the traditional form of these arrangements, in exchange for providing the IMAX Theater System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than requiring the customer to pay a fixed upfront fee or annual minimum payments. Under certain other joint revenue sharing arrangements, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX Theater System. 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 the IMAX Theater System under a joint revenue sharing arrangement 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 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 an extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the IMAX Theater System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX Theater System is returned to the Company.

As of September 30, 2021, the Company has signed traditional and hybrid joint revenue sharing agreements with 42 exhibitors (2020 — 41) for a total of 1,228 IMAX Theater Systems (2020 — 1,233), of which 904 theaters (2020 — 881) were operational and included in the network as of that date. The terms of these arrangements are similar in nature, rights and obligations. The accounting policy for the Company’s joint revenue sharing arrangements is disclosed in Note 3(n) of the Company’s 2020 Form 10-K.

Revenue attributable to transactions arising between the Company and its customers under joint revenue sharing arrangements are recorded within Revenues — Technology Sales and Revenues — Technology Rentals. For the three and nine months ended September 30, 2021, such revenues totaled $10.9 million and $29.9 million, respectively (2020 — $4.5 million and $11.5 million, respectively). (See Note 13(a) for a disaggregated presentation of the Company’s revenues.)

IMAX DMR

In an IMAX DMR arrangement, the Company receives a percentage of the box office receipts from a third party who owns the copyright to a film in exchange for converting the film into IMAX DMR format and distributing it through the IMAX network. The percentage of gross box office receipts earned in IMAX DMR arrangements has averaged approximately 12.5%, except for within Greater China, where the Company receives a lower percentage of net box office receipts for certain Hollywood films.

For the three and nine months ended September 30, 2021, the majority of IMAX DMR revenue was earned from the exhibition of 24 films (21 new and 3 carryovers) and 53 films (47 new and 6 carryovers), respectively, and the re-release of classic titles throughout the IMAX theater network, as compared to six new films and 20 films (16 new and 4 carryovers), respectively, and the re-release of classic titles in the three and nine months ended September 30, 2020. The accounting policy for the Company’s IMAX DMR arrangements is disclosed in Note 3(n) of the Company’s 2020 Form 10-K.

Revenue attributable to transactions arising between the Company and its customers under IMAX DMR arrangements are included in Revenues – Image Enhancement and Maintenance Services. For the three and nine months ended September 30, 2021, such revenues totaled $15.7 million and $39.4 million, respectively (2020 — $6.9 million and $18.1 million, respectively). (See Note 13(a) for a disaggregated presentation of the Company’s revenues.)

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 of September 30, 2021, the Company has one co-produced film arrangement, which represents the VIE total assets balance of $1.6 million and liabilities balance of $0.3 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 3(a) and 3(n) of the Company’s 2020 Form 10-K.

For the three and nine months ended September 30, 2021, an expense of $0.2 million and $0.3 million, respectively (2020 — $0.5 million and $1.9 million, respectively) attributable to transactions between the Company and other parties involved in the production of the films have been included in Costs and Expenses Applicable to Revenues – Image Enhancement and Maintenance Services.

Condensed Consolidated Statements of Cash Flows Supplemental Information

9 Months Ended

Sep. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Condensed Consolidated Statements of Cash Flows Supplemental Information

10. Condensed Consolidated Statements of Cash Flows – Supplemental Information

(a)

Changes in other operating assets and liabilities

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021				2020
(Increase) decrease in:
Financing receivables	$		(1,693	)	$		(3,212	)
Prepaid expenses			(2,767	)			(1,332	)
Variable consideration receivables			(1,243	)			(1,007	)
Other assets			664				(3,712	)
Decrease in:
Accounts payable			(5,135	)			(8,320	)
Accrued and other liabilities⁽¹⁾			(1,728	)			(6,526	)
	$		(11,902	)	$		(24,109	)

(1)	Includes a $9.5 million payment made in the second quarter of 2021 in connection with the settlement of the Giencourt matter, as discussed in Note 8(b)(ii).

(b)

Depreciation and amortization

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021			2020
Film assets	$		10,661	$		6,159
Property, plant and equipment:
Equipment supporting joint revenue sharing arrangements			16,784			19,247
Other property, plant and equipment			7,176			8,478
Other intangible assets⁽¹⁾			4,509			4,882
Other assets⁽²⁾			1,440			1,933
	$		40,570	$		40,699

(1)	Includes the amortization of licenses and intellectual property recorded in Research and Development on the Condensed Consolidated Statement of Operations of $1.0 million in the nine months ended September 30, 2021 (2020 — $1.0 million).

(2)	Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements.

(c)

Write-downs

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021			2020
Inventories⁽¹⁾	$		468	$		729
Property, plant and equipment:
Equipment supporting joint revenue sharing arrangements⁽²⁾			328			1,050
Other property, plant and equipment			—			66
Other intangible assets			63			132
Film assets⁽³⁾			19			10,211
Other assets⁽⁴⁾			—			1,151
	$		878	$		13,339

(1)	In the nine months ended September 30, 2021, the Company recorded write-downs of $0.5 million (2020 — $0.7 million) in Costs and Expenses Applicable to Technology Sales related to excess and damaged inventory.

(2)

In the nine months ended September 30, 2021, the Company recorded charges of $0.3 million (2020 — $1.1 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems.

(3)

In the nine months ended September 30, 2020, the Company recorded impairment losses of $10.2 million in Costs and Expenses Applicable to Image Enhancement and Maintenance Services principally to write-down the carrying value of certain documentary and alternative film content due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. To a much lesser extent, the impairment losses also relate to the write-down of DMR related film assets.

(4)	In the nine months ended September 30, 2020, the Company recorded a write-down of $1.2 million in Asset Impairments related to content-related assets which became impaired in the period.

(d)

Significant non-cash investing activities

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021				2020
Net (decrease) increase in accruals related to:
Investment in equipment supporting joint revenue sharing arrangements	$		217		$		(1,897	)
Acquisition of other intangible assets			(863	)			69
Purchases of property, plant and equipment			(8	)			158
	$		(654	)	$		(1,670	)

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

(a)

Income Tax Expense

For the three months ended September 30, 2021, the Company recorded income tax expense of $4.4 million (2020 — income tax expense of $19.3 million). For the three months ended September 30, 2021, the Company’s effective tax rate of (226.6)% varies from the Canadian statutory tax rate of 26.2% that was in effect during the period as follows:

	Three Months Ended					Three Months Ended
	September 30, 2021					September 30, 2020
(In thousands of U.S. Dollars, except rates)	Amount			Rate		Amount			Rate
Income tax benefit at combined statutory rates	$	509		26.2%		$	7,279		26.2%
Adjustments resulting from:
Unrealized investment gains not taxable		—			—		420		1.5%
Increase of valuation allowance		(4,270	)	(219.8%)			(23,707	)	(85.3%)
Changes to tax reserves		(215	)	(11.1%)			(181	)	(0.7%)
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries		—			—		(186	)	(0.7%)
Reduction in tax benefits resulting from the vesting of share-based compensation		(4	)	(0.2%)			(38	)	(0.1%)
Other non-deductible/non-taxable items		(422	)	(21.7%)			(2,936	)	(10.5%)
Income tax expense	$	(4,402	)	(226.6%)		$	(19,349	)	(69.6%)

For the three months ended September 30, 2021, the Company recorded an additional $4.3 million valuation allowance against deferred tax assets in jurisdictions where management could not reliably forecast that future tax liabilities would arise, principally due to the uncertainties around the long-term impact of the COVID-19 global pandemic. Accordingly, the tax benefit associated with the current period losses in these jurisdictions is not ultimately reflected in the Company’s Condensed Consolidated Statements of Operations.

For the nine months ended September 30, 2021, the Company recorded income tax expense of $9.4 million (2020 — $24.6 million). For the nine months ended September 30, 2021, the Company’s effective tax rate of (69.5)% varies from the Canadian statutory tax rate of 26.2% that was in effect during the period as follows:

	Nine Months Ended				Nine Months Ended
	September 30, 2021				September 30, 2020
(In thousands of U.S. Dollars, except rates)	Amount			Rate	Amount			Rate
Income tax benefit at combined statutory rates	$	3,548		26.2%	$	29,201		26.2%
Adjustments resulting from:
Realized and unrealized investment gains (losses) not taxable		1,367		10.1%		(239	)	(0.2%)
Increase of valuation allowance		(14,248	)	(105.2%)		(23,706	)	(21.3%)
Changes to tax reserves		1,234		9.1%		(4,978	)	(4.5%)
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries		(547	)	(4.0%)		(18,661	)	(16.7%)
Increase in tax benefits resulting from the vesting of share-based compensation		709		5.2%		33			—
Other non-deductible/non-taxable items		(1,479	)	(10.9%)		(6,256	)	(5.6%)
Income tax expense	$	(9,416	)	(69.5%)	$	(24,606	)	(22.1%)

As of September 30, 2021, the Company’s Condensed Consolidated Balance Sheets include net deferred income tax assets of $18.7 million, net of a valuation allowance of $45.5 million (December 31, 2020 — $18.0 million, net of a valuation allowance of $28.8 million). The $16.7 million valuation allowance change recorded during the nine months ended September 30, 2021 is reflected within Income Tax Expense in the Company’s Condensed Consolidated Statements of Operations ($14.2 million) and within Shareholder’s Equity on the Company’s Condensed Consolidated Balance Sheets ($2.5 million). The valuation allowance is expected to reverse at the point in time when management determines it is more likely than not that the Company will incur sufficient tax liabilities to allow it to utilize the deferred tax assets against which the valuation allowance is recorded. Despite the valuation allowance recorded against its deferred tax assets, the Company remains entitled to benefit from tax attributes which currently have a valuation allowance applied to them.

During the three and nine months ended September 30, 2021, $20.4 million of historical earnings from a subsidiary in China were repatriated and, as a result $2.0 million of foreign withholding taxes were paid in the period (2020 — $nil).

(b)

Income Tax Effect on Other Comprehensive (Loss) Income

For the three and nine months ended September 30, 2021 and 2020, the income tax expense related to the following items in Other Comprehensive (Loss) Income are:

	Three Months Ended							Nine Months Ended
		September 30,						September 30,
(In thousands of U.S. Dollars)		2021			2020			2021				2020
Unrealized change in cash flow hedging instruments		$	199		$	(160	)		$	42			$	235
Realized change in cash flow hedging instruments			82			(29	)			358				(211	)
Reclassification of unrealized change in ineffective cash flow hedging instruments			7			—				83				—
Defined benefit and postretirement benefit plans			(12	)		—				(37	)			40
		$	276		$	(189	)		$	446			$	64

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Capital Stock And Reserves

Capital Stock and Reserves

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

12. Capital Stock And Reserves

(a)

Share-Based Compensation

For the three and nine months ended September 30, 2021, share-based compensation expense totaled $6.1 million and $18.2 million, respectively (2020 — $5.3 million and $16.0 million, respectively) and is reflected in the following accounts in the Condensed Consolidated Statements of Operations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In Thousands of U.S. Dollars)	2021		2020		2021		2020
Cost and expenses applicable to revenues	$	314	$	130	$	920	$	530
Selling, general and administrative expenses		5,706		5,151		17,046		15,325
Research and development		89		29		245		114
	$	6,109	$	5,310	$	18,211	$	15,969

For the three and nine months ended September 30, 2020, there was a lower level of share-based compensation expenses allocated to Costs and Expense Applicable to Revenues or Research and Development due to the lower level of production during the COVID-19 global pandemic.

The following table summarizes the Company’s share-based compensation expense by each award type:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In Thousands of U.S. Dollars)	2021		2020		2021		2020
Stock Options	$	253	$	433	$	808	$	1,449
Restricted Share Units		3,900		3,430		11,524		10,866
Performance Stock Units		1,183		483		3,169		1,229
IMAX China Stock Options		41		600		143		701
IMAX China Long Term Incentive Plan Restricted Share Units		600		332		2,217		1,645
IMAX China Long Term Incentive Plan Performance Stock Units		132		32		350		79
	$	6,109	$	5,310	$	18,211	$	15,969

Included in the above table is an expense of $nil in the three and nine months ended September 30, 2021 (2020 — $nil and $0.1 million, respectively) related to restricted share units granted to a certain advisor of the Company.

Stock Option Summary

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 nine months ended September 30, 2021 and 2020:

	Number of Shares							Weighted Average Exercise Price Per Share
	2021			2020			2021			2020
Stock options outstanding, beginning of period		4,892,962			5,732,209		$		26.81	$	26.82
Granted		—			—				—		—
Exercised		(41,613	)		—				21.23		—
Forfeited		(86,587	)		(23,633	)			22.51		22.35
Expired		(903,038	)		(772,665	)			28.31		27.03
Cancelled		(123,220	)		(18,483	)			26.68		27.97
Stock options outstanding, end of period		3,738,504			4,917,428				26.61		26.80
Stock options exercisable, end of period		3,487,857			4,315,484				26.93		27.32

Stock options are no longer granted under the Company’s previously approved SOP.

Restricted Share Units (“RSU”) Summary

The following table summarizes the activity in respect of RSUs issued under the IMAX LTIP for the nine months ended September 30, 2021 and 2020:

	Number of Awards						Weighted Average Grant Date Fair Value Per Share
	2021			2020				2021			2020
RSUs outstanding, beginning of period		1,564,838			1,065,347		$		18.33	$		23.17
Granted		831,123			1,050,385				21.03			15.35
Vested and settled		(571,616	)		(386,451	)			19.11			21.59
Forfeited		(231,380	)		(54,933	)			19.50			19.70
RSUs outstanding, end of period		1,592,965			1,674,348				19.29			18.75

Performance Stock Units Summary

The Company grants awards for two types of performance stock units (“PSUs”), one which vests based on a combination of employee service and the achievement of certain EBITDA-based targets and one which vests based on a combination of employee service and the achievement of total shareholder return (“TSR”) targets. The achievement of the EBITDA and TSR targets in these PSUs is determined over a three-year performance period. The grant date fair value of PSUs with EBITDA-based targets is equal to the closing price of the Company’s common shares on the date of grant or the average closing price of the Company’s common shares for five days prior to the date of grant. The grant date fair value of PSUs with TSR targets is determined on the grant date using a Monte Carlo simulation, which is a valuation model that takes into account the likelihood of achieving the TSR targets embedded in the award (“Monte Carlo Model”). The compensation expense attributable to each type of PSU is recognized on a straight-line basis over the requisite service period.

The fair value determined by the Monte Carlo Model is affected by the Company’s share price, as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, market conditions as of the grant date, the Company’s expected share price volatility over the term of the awards, and other relevant data. The compensation expense is fixed on the date of grant based on the fair value of the PSUs granted.

The amount and timing of compensation expense recognized for PSUs with EBITDA-based targets is dependent upon management's assessment of the likelihood of achieving these targets. If, as a result of management’s assessment, it is projected that a greater number of PSUs will vest than previously anticipated, a life-to-date adjustment to increase compensation expense is recorded in the period that such determination is made. Conversely, if, as a result of management’s assessment, it is projected that a lower number of PSUs will vest than previously anticipated, a life-to-date adjustment to decrease compensation expense is recorded in the period that such determination is made. The expense recognized in the nine months ended September 30, 2021 includes adjustments reflecting management’s estimate of the number of PSUs with EBITDA-based targets expected to vest.

The following table summarizes the activity in respect of PSUs issued under the IMAX LTIP for the nine months ended September 30, 2021 and 2020:

	Number of Awards						Weighted Average Grant Date Fair Value Per Share
	2021			2020				2021			2020
PSUs outstanding, beginning of period		361,844			—		$		15.68	$		—
Granted		309,574			370,265				20.77			15.66
Forfeited		(54,634	)		(2,526	)			16.08			14.84
PSUs outstanding, end of period		616,784			367,739				18.20			15.67

As of September 30, 2021, the maximum number of shares of common stock that may be issued with respect to PSUs outstanding is 1,079,372, assuming full achievement of the EBITDA and TSR targets.

(b)

Issuer Purchases of Equity Securities

In April 2021, the Company’s Board of Directors approved a 12-month extension to its share repurchase program through June 30, 2022. The extension authorized the Company to repurchase up to approximately $89.4 million worth of common shares, the remaining amount available of the original $200.0 million initially authorized under the share repurchase program when it commenced on July 1, 2017. The repurchases may be made either in the open market or through private transactions, including repurchases made pursuant a plan intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, 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 and nine months ended September 30, 2021, the Company repurchased 316,812 common shares, respectively (2020 — nil and 2,484,123 common shares, respectively), at an average price of $14.53 per share, respectively (2020 — $nil and $14.72 per share, respectively), excluding commissions. During the three and nine months ended September 30, 2021, there were no common shares purchased in the administration of employee share-based compensation plans (2020 — nil and 200,000 common shares at an average price of $nil and $15.43 per share, respectively).

As of September 30, 2021, the IMAX LTIP trustee held 276 shares purchased for less than $0.1 million (December 31, 2020 — 723 shares for less than $0.1 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 Company’s Condensed Consolidated Balance Sheets.

In 2021, IMAX China announced that its shareholders granted its Board of Directors a general mandate authorizing the Board, subject to applicable laws, to repurchase of shares of IMAX China not to exceed 10% of the total number of issued shares as of May 6, 2021 (34,835,824 shares). This program will be valid until the 2022 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 and nine months ended September 30, 2021, IMAX China repurchased 3,569,000 common shares, respectively, at an average price of HKD 10.90 per share, respectively (U.S. $1.40 per share, respectively). During three and nine months ended September 30, 2020, IMAX China repurchased nil and 906,400 common shares, respectively, at an average price of HKD nil and HKD 13.13 per share, respectively (U.S. $nil and $1.69 per share, respectively).

(c)

Basic and Diluted Weighted Average Shares Outstanding

The following table reconciles the denominator of the basic and diluted weighted average share computations:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2021			2020		2021		2020
(In thousands)
Issued and outstanding, beginning of period		59,396			58,857		58,921		61,176
Weighted average number of shares (repurchased) issued, net		(152	)		2		286		(1,816	)
Weighted average number of shares outstanding - basic		59,244			58,859		59,207		59,360
Weighted average effect of potential common shares, if dilutive		—			—		—		—
Weighted average number of shares outstanding - diluted		59,244			58,859		59,207		59,360

For the three and nine months ended September 30, 2021, the calculation of diluted weighted average shares outstanding excludes 6,115,389 shares (2020 — 6,959,515 shares) that are issuable upon the vesting or exercise of share-based compensation including: (i) 1,592,965 RSUs (2020 — 1,674,348 RSUs), (ii) 783,920 PSUs (2020 — 367,739 PSUs) and (iii) 3,738,504 stock options (2020 — 4,917,428 stock options), as the effect would be anti-dilutive.

The calculation of diluted weighted average shares outstanding for the three and nine months ended September 30, 2021 also excludes any shares potentially issuable upon the conversion of the Convertible Notes as the average market price of the Company’s common shares during the period of time they were outstanding was less than the conversion price of the Convertible Notes. (See Note 7(b).)

(d)

Statutory Surplus Reserve

Pursuant to the corporate law of the People’s Republic of China (the “PRC”), entities registered in the PRC are required to maintain certain statutory reserves, which are appropriated from after-tax profits (after offsetting accumulated losses from prior years), as reported in their respective statutory financial statements, before the declaration or payment of dividends to equity holders. All statutory reserves are created for specific purposes.

The Company’s PRC subsidiaries are required to appropriate 10% of statutory net profits to statutory surplus reserves, upon distribution of their after-tax profits. The Company’s PRC subsidiaries may discontinue the contribution when the aggregate sum of the statutory surplus reserve is more than 50% of its registered capital. The statutory surplus reserve is non-distributable other than during liquidation and only be used to fund losses from prior years, to expand production operations, or to increase the capital of the subsidiaries. In addition, the subsidiaries may make further contribution to the discretional surplus reserve using post-tax profits in accordance with resolutions of the Board of Directors.

During the three months ended September 30, 2021, one of the Company’s PRC subsidiaries declared and paid dividends of RMB 131.6 million ($20.4 million). In the third quarter of 2021, upon passage of the requisite resolution of the Board of Directors, a statutory surplus reserve of RMB 36.4 million ($5.6 million) was recorded within Shareholders’ Equity as an appropriation of the retained earnings of the Company’s PRC subsidiaries, of which $3.9 million is attributable to the Company’s common shareholders and $1.7 million is attributable to non-controlling shareholders. The statutory surplus reserve of RMB 36.4 million ($5.6 million) has reached 50% of its PRC subsidiaries’ registered capital.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2021

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.)

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Segment Reporting

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

14. Segment Reporting

The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is defined under U.S. GAAP. The CODM, along with other members of management, assess segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense and income tax (expense) benefit are not allocated to the Company’s segments.

The Company has the following reportable segments: (i) IMAX DMR; (ii) Joint Revenue Sharing Arrangements; (iii) IMAX Systems, (iv) IMAX Maintenance; (v) Other Theater Business; (vi) New Business Initiatives; (vii) Film Distribution; and (viii) Film Post-Production. The Company organizes its reportable segments into the following four categories, identified by the nature of the product sold or service provided:

(i)

IMAX Technology Network, which earns revenue based on contingent box office receipts and includes the IMAX DMR segment and contingent rent from the Joint Revenue Sharing Arrangement (“JRSA”) segment;

(ii)

IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment;

(iii)

New Business Initiatives, which is a segment that includes activities related to the exploration of new lines of business and new initiatives outside of the Company’s core business; and

(iv)

Film Distribution and Post-Production, which includes activities related to the licensing of film content, and the distribution of films primarily for the Company’s institutional theater partners (through the Film Distribution segment) and the provision of film post-production and quality control services (through the Film Post-Production segment).

The Company is presenting information at a disaggregated level to provide more relevant information to readers.

Transactions between the 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.

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)

(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

No single country in the Rest of the World, Western Europe, Latin America and Asia (excluding Greater China) comprises more than 10% of the Company’s total revenue in the three and nine months ended September 30, 2021.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Compensation And Retirement Disclosure [Abstract]

Employees Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 2021

Employees Pension and Postretirement Benefits

15. Employee's Pension and Postretirement Benefits

(a)

Defined Benefit Plan

The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”), covering its CEO, Richard L. Gelfond. Under the terms of the SERP, if Mr. Gelfond’s employment is terminated other than for cause (as defined in his employment agreement), he is entitled to receive SERP benefits in the form of a lump sum payment. SERP benefit payments to Mr. Gelfond are subject to a deferral for six months after the termination of his employment, at which time Mr. Gelfond will be entitled to receive interest on the deferred amount credited at the applicable federal rate for short-term obligations. Pursuant to an amendment to his employment agreement dated November 1, 2019, the term of Mr. Gelfond’s employment was extended through December 31, 2022, although Mr. Gelfond has not informed the Company that he intends to retire at that time. Under the terms of this amendment to his employment agreement, the total benefit payable to Mr. Gelfond under the SERP was fixed at $20.3 million.

As of September 30, 2021 and December 31, 2020, the Company’s projected benefit obligation and unfunded status related to the SERP are as follows:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Projected benefit obligation:
Obligation, beginning of period	$	20,116	$	18,840
Interest cost		54		379
Actuarial gain		—		897
Obligation, end of period and unfunded status⁽¹⁾	$	20,170	$	20,116

(1)	The accumulated benefit obligation for the SERP was $20.2 million at September 30, 2021 (December 31, 2020 — $20.1 million).

For the three and nine months ended September 30, 2021, the Company recorded interest costs of less than $0.1 million and $0.1 million, respectively (2020 — $0.1 million and $0.3 million, respectively) related to the SERP. The Company expects to recognize additional interest costs of less than $0.1 million related to the SERP during the remainder of 2021. No contributions are expected to be made to the SERP in 2021.

(b)

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 and nine months ended September 30, 2021, the Company contributed and recorded expense of $0.3 million and $0.8 million, respectively (2020 — $0.3 million and $0.8 million, respectively) to its Canadian defined contribution plan and $0.1 million and $0.4 million, respectively (2020 — $0.1 million and $0.5 million, respectively) to its defined contribution employee plan under Section 401(k) of the U.S. Internal Revenue Code.

(c)

Postretirement Benefits – Executives

The Company has an unfunded postretirement plan for Mr. Gelfond and Bradley J. Wechsler, former 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 supplemental coverage as selected by Messrs. Gelfond and Wechsler. As of September 30, 2021, the Company’s postretirement benefits obligation under this plan is $0.7 million (December 31, 2020 — $0.7 million). For the three and nine months ended September 30, 2021, the Company has recorded an expense of less than $0.1 million (2020 — less than $0.1 million) related to this plan. Mr. Wechsler retired from the Company’s Board of Directors on June 9, 2021. The Company will maintain Mr. Wechsler’s current health benefits through December 31, 2021, and thereafter will provide him with Medicare supplemental coverage.

(d)

Postretirement Benefits – Canadian Employees

The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. As of September 30, 2021, the Company’s postretirement benefits obligation under this plan is $1.8 million (December 31, 2020 — $1.9 million). For the three and nine months ended September 30, 2021, the Company has recorded expense of less than $0.1 million (2020 — less than $0.1 million and $0.1 million, respectively) related to this plan.

(e)

Deferred Compensation Benefit Plan

The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein). In the fourth quarter of 2018, the executive incurred a separation from service from the Company, and as such, the Retirement Plan benefits became fully vested as of December 31, 2018 and the accelerated costs were recognized and reflected in Executive Transition Costs in the Consolidated Statements of Operations.

As of September 30, 2021, the benefit obligation related to the Retirement Plan was $3.8 million (December 31, 2020 — $3.7 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities. As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-service Expenses.

The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses. As of September 30, 2021, fair value of the COLI asset was $3.2 million (December 31, 2020 — $3.2 million). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains (Losses).

The entire disclosure for retirement benefits.

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Investments All Other Investments [Abstract]

Financial Instruments

9 Months Ended

Sep. 30, 2021

Financial Instruments

16. Financial Instruments

(a)

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 $193.0 million balance of cash and cash equivalents as of September 30, 2021 includes $101.0 million in cash held outside of Canada (December 31, 2020 — $89.9 million), of which $70.3 million was held in the PRC (December 31, 2020 — $77.2 million).

(b)

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 their fair values due to the short-term maturity of these instruments. Including these instruments, the Company’s financial instruments consist of the following:

	As of September 30, 2021						As of December 31, 2020
(In thousands of U.S. Dollars)	Carrying Amount			Estimated Fair Value			Carrying Amount			Estimated Fair Value
Level 1
Cash and cash equivalents⁽¹⁾	$	193,008		$	193,008		$	317,379		$	317,379
Equity securities⁽²⁾		1,089			1,089			13,633			13,633
Level 2
Net financed sales receivables⁽³⁾	$	113,200		$	113,210		$	112,396		$	112,603
Net investment in sales-type leases⁽³⁾		22,002			21,850			19,414			19,373
Equity securities⁽¹⁾		1,000			1,000			1,000			1,000
COLI⁽⁴⁾		3,244			3,244			3,155			3,155
Foreign exchange contracts — designated forwards⁽³⁾		(209	)		(209	)		1,635			1,635
Foreign exchange contracts — non-designated forwards⁽³⁾		(61	)		(61	)		344			344
Working Capital Facility borrowings⁽¹⁾		(10,974	)		(10,974	)		(7,643	)		(7,643	)
Credit Facility borrowings⁽¹⁾		—			—			(300,000	)		(300,000	)
Convertible Notes⁽⁵⁾		(230,000	)		(224,574	)		—			—

(1)	Recorded at cost, which approximates fair value.

(2)	Fair value is determined using quoted prices in active markets.

(3)	Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms.

(4)	Measured at cash surrender value, which approximates fair value.

(5)	Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.

The Company did not have any material amounts of Level 3 assets or liabilities as of September 30, 2021 and December 31, 2020.

(c)

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 RMB 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 RMB, 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 85 different countries, unfavourable exchange rates between applicable local currencies and the U.S. Dollar affect the Company’s reported gross box-office receipts 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 has entered into a series of foreign currency forward contracts to manage the 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 September 30, 2021 (the “Foreign Currency Hedges”), with settlement dates throughout 2022. Foreign currency derivatives are recognized and measured in the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value (i.e., 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. 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 (Loss) Income and reclassified to the Condensed Consolidated Statements of Operations when the forecasted transaction occurs. For foreign currency cash flow hedging instruments related to Inventories, the effective portion of the gain or loss in a hedge of a forecasted transaction is reported in Other Comprehensive (Loss) Income and reclassified to Inventories in the Condensed Consolidated Balance Sheets when the forecasted transaction occurs. Any ineffective portion is recognized immediately in the Condensed Consolidated Statements of Operations.

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:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	$	24,642	$	26,358
Derivatives not designated as hedging instruments:
Foreign exchange contracts — Forwards		1,123		5,552
	$	25,765	$	31,910

Fair value of derivatives in foreign exchange contracts:

		September 30,			December 31,
(In thousands of U.S. Dollars)	Balance Sheet Location	2021			2020
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	Other assets	$	128		$	1,635
	Accrued and other liabilities		(337	)		—
Derivatives not designated as hedging instruments:
Foreign exchange contracts — Forwards	Other assets		—			344
	Accrued and other liabilities		(61	)		—
		$	(270	)	$	1,979

Derivatives in foreign currency hedging relationships are as follows:

		Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands of U.S. Dollars)		2021			2020			2021			2020
Foreign exchange contracts	Derivative (Loss) Gain
— Forwards	Recognized in OCI
	(Effective Portion)	$	(759	)	$	591		$	(159	)	$	(935	)

	Location of Derivative Gain (Loss)
	Reclassified from AOCI	Three Months Ended September 30,						Nine months ended September 30,
(In thousands of U.S. Dollars)	(Effective Portion)	2021			2020			2021			2020
Foreign exchange contracts	Selling, general and
— Forwards	administrative expenses	$	312		$	(110	)	$	1,367			(779	)
	Inventory		—			—		$	—			(26	)
		$	312		$	(110	)	$	1,367		$	(805	)

		Three Months Ended September 30,				Nine months ended September 30,
(In thousands of U.S. Dollars)		2021		2020		2021		2020
Foreign exchange contracts	Derivative Loss Recognized In
— Forwards	and Out of OCI
	(Effective Portion)	$	—	$	—	$	—	$	(55	)

The Company's estimated net amount of the existing loss as of September 30, 2021 is $0.2 million, which is expected to be reclassified to earnings within the next twelve months.

Non-designated derivatives in foreign currency relationships are as follows:

		Three Months Ended September 30,					Nine months ended September 30,
(In thousands of U.S. Dollars)		2021			2020		2021			2020
Foreign exchange contracts	Derivative Gain Reclassified
— Forwards	From AOCI
	(Ineffective Portion)	$	(25	)	$	—	$	(318	)	$	—

		Three Months Ended September 30,					Nine months ended September 30,
(In thousands of U.S. Dollars)	Location of Derivative (Loss) Gain	2021			2020		2021		2020
Foreign exchange contracts	Selling, general and
— Forwards	administrative expenses	$	(122	)	$	75	$	269	$	102
		$	(122	)	$	75	$	269	$	102

(d)

Investments in Equity Securities

As of September 30, 2021, the Condensed Consolidated Balance Sheets includes $1.1 million (December 31, 2020 — $13.6 million) of investments in equity securities.

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. In February 2021, IMAX China (Hong Kong), Limited sold all of its 7,949,000 shares of Maoyan for gross proceeds of $17.8 million, which represents a $2.6 million gain relative to the Company’s acquisition cost and a $5.2 million gain compared to the fair value of the investment as of December 31, 2020. Prior to this sale, the Company accounted for its investment in Maoyan at fair value with any changes in fair value recorded to the Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2020, the fair value of the Company’s investment in Maoyan experienced an unrealized gain of $1.6 million and loss of $(0.9) million, respectively. As of December 31, 2020, the value of the Company’s investment in Maoyan was $12.6 million.

The Company has an investment of $1.1 million (December 31, 2020 — $1.1 million) in the shares of an exchange traded fund. This investment is classified as an equity investment.

As of September 30, 2021, the Company held investments in the preferred shares of enterprises which meet the criteria for classification as an equity security under FASB ASC 321, carried at historical cost, net of impairment charges. The carrying value of these equity security investments was $1.0 million at September 30, 2021 (December 31, 2020 — $1.0 million) and is recorded in Other Assets.

Non-Controlling Interests

9 Months Ended

Sep. 30, 2021

Temporary Equity Disclosure [Abstract]

Non-Controlling Interests

17. Non-Controlling Interests

(a)

IMAX China Non-Controlling Interest

The Company indirectly owns 69.83% 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. As of September 30, 2021, the balance of the Company’s non-controlling interest in IMAX China is $82.8 million. For the three and nine months ended September 30, 2021, the net income attributable to the non-controlling interest in IMAX China is $2.0 million and $9.5 million, respectively (2020 — net income of $2.2 million and net loss of $(10.3) million, respectively).

(b)

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 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. As of September 30, 2021, the Original Film Fund has invested $22.3 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.

(c)

Non-Controlling Interest in Temporary Equity

The following table summarizes the movement of the non-controlling interest in temporary equity related to the Original Film Fund for the nine months ended September 30, 2021:

Balance as of December 31, 2020	$	759
Net income		1
Balance as of September 30, 2021	$	760

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Accounting Principles

Principles of Consolidation

Estimates and Assumptions

Credit Risk

The Company’s internal credit quality classifications for theater operators are as follows:

•

Good Standing — The theater operator continues to be in good standing as payments and reporting are up to date.

•

Financing Receivable, Allowance for Credit Losses

Lessee Leases

IMAX Corporation as a Lessee

Lessor Leases

(b)

IMAX Corporation as a Lessor

(See Note 4 for information related to the net investment in leases related to the Company’s sales-type lease arrangements.)

Commitments and Contingencies

Segment Reporting

(i)

(ii)

IMAX Technology Sales and Maintenance, which includes results from the IMAX Systems, IMAX Maintenance and Other Theater Business segments, as well as fixed revenues from the JRSA segment;

(iii)

New Business Initiatives, which is a segment that includes activities related to the exploration of new lines of business and new initiatives outside of the Company’s core business; and

(iv)

Fair Value of Financial Instruments

	As of September 30, 2021						As of December 31, 2020
(In thousands of U.S. Dollars)	Carrying Amount			Estimated Fair Value			Carrying Amount			Estimated Fair Value
Level 1
Cash and cash equivalents⁽¹⁾	$	193,008		$	193,008		$	317,379		$	317,379
Equity securities⁽²⁾		1,089			1,089			13,633			13,633
Level 2
Net financed sales receivables⁽³⁾	$	113,200		$	113,210		$	112,396		$	112,603
Net investment in sales-type leases⁽³⁾		22,002			21,850			19,414			19,373
Equity securities⁽¹⁾		1,000			1,000			1,000			1,000
COLI⁽⁴⁾		3,244			3,244			3,155			3,155
Foreign exchange contracts — designated forwards⁽³⁾		(209	)		(209	)		1,635			1,635
Foreign exchange contracts — non-designated forwards⁽³⁾		(61	)		(61	)		344			344
Working Capital Facility borrowings⁽¹⁾		(10,974	)		(10,974	)		(7,643	)		(7,643	)
Credit Facility borrowings⁽¹⁾		—			—			(300,000	)		(300,000	)
Convertible Notes⁽⁵⁾		(230,000	)		(224,574	)		—			—

(1)	Recorded at cost, which approximates fair value.

(2)	Fair value is determined using quoted prices in active markets.

(3)	Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms.

(4)	Measured at cash surrender value, which approximates fair value.

(5)	Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.

The Company did not have any material amounts of Level 3 assets or liabilities as of September 30, 2021 and December 31, 2020.

Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

VIEs Total Assets and Liabilities

Total assets and liabilities of the Company’s consolidated VIEs are as follows:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Total assets	$	1,575	$	1,543
Total liabilities	$	259	$	230

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

Summary of Allowance For Credit Losses Related to Accounts Receivable

Current Expected Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

The following tables summarize the activity in the Allowance for Credit Losses related to Accounts Receivable for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30, 2021												Nine Months Ended September 30, 2021
(In thousands of U.S. Dollars)	Theater Operators			Studios			Other			Total			Theater Operators			Studios			Other			Total
Beginning balance	$	8,597		$	2,517		$	1,192		$	12,306		$	8,368		$	4,481		$	1,446		$	14,295
Current period reversal, net		(489	)		(251	)		(24	)		(764	)		(111	)		(1,928	)		(269	)		(2,308	)
Write-offs		(43	)		(270	)		—			(313	)		(278	)		(522	)		—			(800	)
Foreign exchange		(89	)		2			—			(87	)		(3	)		(33	)		(9	)		(45	)
Ending balance	$	7,976		$	1,998		$	1,168		$	11,142		$	7,976		$	1,998		$	1,168		$	11,142

	Three Months Ended September 30, 2020												Nine Months Ended September 30, 2020
(In thousands of U.S. Dollars)	Theater Operators			Studios			Other			Total			Theater Operators			Studios			Other			Total
Beginning balance	$	6,317		$	5,455		$	838		$	12,610		$	3,302		$	893		$	942		$	5,137
Current period provision (reversal), net		1,623			(262	)		468			1,829			4,718			4,424			364			9,506
Write-offs		(614	)		—			—			(614	)		(614	)		—			—			(614	)
Foreign exchange		133			184			(9	)		308			53			60			(9	)		104
Ending balance	$	7,459		$	5,377		$	1,297		$	14,133		$	7,459		$	5,377		$	1,297		$	14,133

Schedule of Financing Receivables

As of September 30, 2021 and December 31, 2020, financing receivables consist of the following:

	September 30,			December 31,
(In thousands of U.S. Dollars)	2021			2020
Net investment in leases
Gross minimum payments due under sales-type leases	$	23,284		$	20,830
Unearned finance income		(788	)		(859	)
Present value of minimum payments due under sales-type leases		22,496			19,971
Allowance for credit losses		(494	)		(557	)
Net investment in leases		22,002			19,414
Financed sales receivables
Gross minimum payments due under financed sales		150,964			150,917
Unearned finance income		(32,199	)		(31,247	)
Present value of minimum payments due under financed sales		118,765			119,670
Allowance for credit losses		(5,565	)		(7,274	)
Net financed sales receivables		113,200			112,396
Total financing receivables	$	135,202		$	131,810

Net financed sales receivables due within one year	$	32,154		$	34,937
Net financed sales receivables due after one year		81,046			77,459
Total financed sales receivables	$	113,200		$	112,396

Schedule of Weighted-average Remaining Lease Term and Weighted-average Interest Rate

	September 30,			December 31,
	2021			2020
Weighted-average remaining lease term (in years)
Sales-type lease arrangements		9.0			8.3
Weighted-average interest rate
Sales-type lease arrangements		6.55	%		6.56	%
Financed sales receivables		8.75	%		8.92	%

Schedule of Net Investment In Leases by Credit Quality Indicator

(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2021	2021		2020		2019		2018		2017		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	959	$	2,747	$	2,245	$	—	$	—	$	1,150	$	7,101
Credit Watch		3,374		1,251		5,650		2,533		881		863		14,552
Pre-approved transactions		—		—		—		—		—		—		—
Transactions suspended		—		—		—		—		—		843		843
Total net investment in leases	$	4,333	$	3,998	$	7,895	$	2,533	$	881	$	2,856	$	22,496

(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2020	2020		2019		2018		2017		2016		Prior		Total
Net investment in leases:
Credit quality classification:
In good standing	$	2,143	$	1,190	$	2,730	$	—	$	—	$	1,826	$	7,889
Credit Watch		2,005		7,278		—		988		—		1,047		11,318
Pre-approved transactions		—		—		—		—		—		—		—
Transactions suspended		—		—		—		—		—		764		764
Total net investment in leases	$	4,148	$	8,468	$	2,730	$	988	$	—	$	3,637	$	19,971

Schedule of Financed Sale Receivables by Credit Quality Indicator

(In thousands of U.S. Dollars)	By Origination Year
As of September 30, 2021	2021		2020		2019		2018		2017		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,311	$	4,414	$	5,733	$	3,831	$	5,890	$	17,830	$	44,009
Credit Watch		1,911		4,108		6,046		9,847		7,733		35,739		65,384
Pre-approved transactions		—		—		—		309		1,420		2,285		4,014
Transactions suspended		—		—		—		—		1,315		4,043		5,358
Total financed sales receivables	$	8,222	$	8,522	$	11,779	$	13,987	$	16,358	$	59,897	$	118,765

(In thousands of U.S. Dollars)	By Origination Year
As of December 31, 2020	2020		2019		2018		2017		2016		Prior		Total
Financed sales receivables:
Credit quality classification:
In good standing	$	6,830	$	5,480	$	3,547	$	3,740	$	5,072	$	12,660	$	37,329
Credit Watch		1,986		6,501		11,356		12,520		11,446		34,351		78,160
Pre-approved transactions		—		—		—		—		613		755		1,368
Transactions suspended		—		—		—		987		728		1,098		2,813
Total financed sales receivables	$	8,816	$	11,981	$	14,903	$	17,247	$	17,859	$	48,864	$	119,670

Schedule of Aging Analysis for Net Investment in Leases and Financed Sale Receivables

The following tables provide an aging analysis for the Company’s net investment in leases and financed sale receivables as of September 30, 2021 and December 31, 2020:

	As of September 30, 2021
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses			Net
Net investment in leases	$	221	$	149	$	876	$	1,246	$	21,250	$	22,496	$	(494	)	$	22,002
Financed sales receivables		1,989		1,748		10,207		13,944		104,821		118,765		(5,565	)		113,200
Total	$	2,210	$	1,897	$	11,083	$	15,190	$	126,071	$	141,261	$	(6,059	)	$	135,202

	As of December 31, 2020
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Recorded Receivable		Allowance for Credit Losses			Net
Net investment in leases	$	298	$	180	$	689	$	1,167	$	18,804	$	19,971	$	(557	)	$	19,414
Financed sales receivables		3,307		1,943		10,699		15,949		103,721		119,670		(7,274	)		112,396
Total	$	3,605	$	2,123	$	11,388	$	17,116	$	122,525	$	139,641	$	(7,831	)	$	131,810

Schedule of Net Investment in Leases and Financed Sale Receivables with Billed Amounts Past Due Continues to Accrue Finance Income

	As of September 30, 2021
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses			Net
Net investment in leases	$	180	$	144	$	458	$	782	$	13,770	$	(248	)	$	14,304
Financed sales receivables		1,152		1,083		8,286		10,521		51,756		(2,870	)		59,407
Total	$	1,332	$	1,227	$	8,744	$	11,303	$	65,526	$	(3,118	)	$	73,711

	As of December 31, 2020
(In thousands of U.S. Dollars)	Accrued and Current		30-89 Days		90+ Days		Billed		Unbilled		Allowance for Credit Losses			Net
Net investment in leases	$	231	$	162	$	359	$	752	$	13,912	$	(310	)	$	14,354
Financed sales receivables		2,026		1,551		10,249		13,826		62,602		(4,434	)		71,994
Total	$	2,257	$	1,713	$	10,608	$	14,578	$	76,514	$	(4,744	)	$	86,348

Schedule of Net Investment in Leases and Financed Sale Receivables on Nonaccrual Status

The following table provides information about the Company’s net investment in leases and financed sale receivables that are on nonaccrual status as of September 30, 2021 and December 31, 2020:

	As of September 30, 2021							As of December 31, 2020
(In thousands of U.S. Dollars)	Recorded Receivable		Allowance for Credit Losses			Net			Recorded Receivable		Allowance for Credit Losses			Net
Net investment in leases	$	843	$	(16	)	$	827		$	764	$	(18	)	$	746
Net financed sales receivables		6,158		(1,276	)		4,882			2,813		(1,482	)		1,331
Total	$	7,001	$	(1,292	)	$	5,709		$	3,577	$	(1,500	)	$	2,077

Summary of Allowance for Credit Losses Related to Net Investment in Leases and Financed Sale Receivables

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Net Investment			Financed			Net Investment			Financed
(In thousands of U.S. Dollars)	in Leases			Sales Receivables			in Leases			Sales Receivables
Beginning balance	$	579		$	7,113		$	557		$	7,274
Current period reversal, net		(84	)		(1,536	)		(64	)		(1,741	)
Foreign exchange		(1	)		(12	)		1			32
Ending balance	$	494		$	5,565		$	494		$	5,565

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	Net Investment			Net Financed			Net Investment			Net Financed
(In thousands of U.S. Dollars)	in Leases			Sales Receivables			in Leases			Sales Receivables
Beginning balance	$	459		$	3,709		$	155		$	915
Current period provision		105			1,201			409			4,014
Write-offs		(69	)		(330	)		(69	)		(330	)
Foreign exchange		9			63			9			44
Ending balance	$	504		$	4,643		$	504		$	4,643

Summary of Allowance For Credit Losses Related to Variable Consideration Receivables

The following table summarizes the activity in the Allowance for Credit Losses related to Variable Consideration Receivables for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2021			2020		2021			2020
(In thousands of U.S. Dollars)	Theater Operators			Theater Operators		Theater Operators			Theater Operators
Beginning balance	$	2,028		$	863	$	1,887		$	—
Current period (reversal) provision, net		(933	)		790		(771	)		1,653
Foreign Exchange		(1	)		6		(22	)		6
Ending balance	$	1,094		$	1,659	$	1,094		$	1,659

Lease Arrangements (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Components of Lease Expense

For the three and nine months ended September 30, 2021 and 2020, the components of lease expense recorded within Selling, General and Administrative expenses are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands of U.S. Dollars)	2021		2020		2021		2020
Operating lease cost ⁽¹⁾	$	163	$	133	$	546	$	392
Amortization of lease assets		684		706		2,098		2,155
Interest on lease liabilities		242		258		715		765
Total lease cost	$	1,089	$	1,097	$	3,359	$	3,312

(1)	Includes short-term leases and variable lease costs, which are not significant for the three and nine months ended September 30, 2021 and 2020.

Supplemental Cash and Non-Cash Flow Information Related to Leases

For the nine months ended September 30, 2021 and 2020, supplemental cash and non-cash information related to leases is as follows:

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021			2020
Cash paid for amounts included in the measurement of lease liabilities	$		2,907	$		2,721
Right-of-use assets obtained in exchange for lease obligations	$		1,047	$		297

Lessee Operating Lease Balance Sheet Amounts and Lines

As of September 30, 2021 and December 31, 2020, supplemental balance sheet information related to leases is as follows:

		September 30,		December 31,
(In thousands of U.S. Dollars)		2021		2020
Assets	Balance Sheet Classification
Right-of-Use Assets	Property, plant and equipment	$	12,833	$	13,911
Liabilities	Balance Sheet Classification
Operating Leases	Accrued and other liabilities	$	15,388	$	16,634

Lessee Operating Leases Weighted Average Remaining Lease Term and Weighted Average Interest Rate

As of September 30, 2021 and December 31, 2020, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s operating leases are as follows:

	September 30,			December 31,
	2021			2020
Weighted-average remaining lease term (years)		7.0			7.6
Weighted-average discount rate		5.96	%		5.91	%

Lessee Operating Lease, Maturity

As of September 30, 2021, the maturities of the Company’s operating lease liabilities are as follows:

(In thousands of U.S. Dollars)
2021 (three months remaining)	$	924
2022		3,360
2023		2,454
2024		2,230
2025		2,078
Thereafter		8,026
Total lease payments	$	19,072
Less: interest expense		(3,684	)
Present value of operating lease liabilities	$	15,388

Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

As of September 30, 2021 and December 31, 2020, Inventories consist of the following:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Raw materials	$	27,172	$	30,096
Work-in-process		1,964		3,014
Finished goods		9,109		6,470
	$	38,245	$	39,580

Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Revolving Credit Facility Borrowings

As of September 30, 2021 and December 31, 2020, Revolving Credit Facility Borrowings consist of the following:

	September 30,			December 31,
(In thousands of U.S. Dollars)	2021			2020
Credit Facility borrowings	$	—		$	300,000
Working Capital Facility borrowings		10,974			7,643
Unamortized debt issuance costs		(1,488	)		(1,967	)
Revolving Credit Facility Borrowings, net	$	9,486		$	305,676

Summary of Convertible Notes

As of September 30, 2021 and December 31, 2020, Convertible Notes (as defined below) consist of the following:

	September 30,			December 31,
(In thousands of U.S. Dollars)	2021			2020
Convertible Notes	$	230,000		$	—
Unamortized discounts and debt issuance costs		(6,735	)		—
	$	223,265		$	—

Condensed Consolidated Statements of Cash Flows Supplemental Information (Tables)

9 Months Ended

Sep. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Summary of Changes in Other Operating Assets and Liabilities

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021				2020
(Increase) decrease in:
Financing receivables	$		(1,693	)	$		(3,212	)
Prepaid expenses			(2,767	)			(1,332	)
Variable consideration receivables			(1,243	)			(1,007	)
Other assets			664				(3,712	)
Decrease in:
Accounts payable			(5,135	)			(8,320	)
Accrued and other liabilities⁽¹⁾			(1,728	)			(6,526	)
	$		(11,902	)	$		(24,109	)

(1)	Includes a $9.5 million payment made in the second quarter of 2021 in connection with the settlement of the Giencourt matter, as discussed in Note 8(b)(ii).

Summary of Depreciation and Amortization

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021			2020
Film assets	$		10,661	$		6,159
Property, plant and equipment:
Equipment supporting joint revenue sharing arrangements			16,784			19,247
Other property, plant and equipment			7,176			8,478
Other intangible assets⁽¹⁾			4,509			4,882
Other assets⁽²⁾			1,440			1,933
	$		40,570	$		40,699

(1)	Includes the amortization of licenses and intellectual property recorded in Research and Development on the Condensed Consolidated Statement of Operations of $1.0 million in the nine months ended September 30, 2021 (2020 — $1.0 million).

(2)	Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements.

Write-downs

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021			2020
Inventories⁽¹⁾	$		468	$		729
Property, plant and equipment:
Equipment supporting joint revenue sharing arrangements⁽²⁾			328			1,050
Other property, plant and equipment			—			66
Other intangible assets			63			132
Film assets⁽³⁾			19			10,211
Other assets⁽⁴⁾			—			1,151
	$		878	$		13,339

(1)	In the nine months ended September 30, 2021, the Company recorded write-downs of $0.5 million (2020 — $0.7 million) in Costs and Expenses Applicable to Technology Sales related to excess and damaged inventory.

(2)

(3)

(4)	In the nine months ended September 30, 2020, the Company recorded a write-down of $1.2 million in Asset Impairments related to content-related assets which became impaired in the period.

Significant Non-cash Investing Activities

	Nine Months Ended
	September 30,
(In thousands of U.S. Dollars)		2021				2020
Net (decrease) increase in accruals related to:
Investment in equipment supporting joint revenue sharing arrangements	$		217		$		(1,897	)
Acquisition of other intangible assets			(863	)			69
Purchases of property, plant and equipment			(8	)			158
	$		(654	)	$		(1,670	)

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rates

	Three Months Ended					Three Months Ended
	September 30, 2021					September 30, 2020
(In thousands of U.S. Dollars, except rates)	Amount			Rate		Amount			Rate
Income tax benefit at combined statutory rates	$	509		26.2%		$	7,279		26.2%
Adjustments resulting from:
Unrealized investment gains not taxable		—			—		420		1.5%
Increase of valuation allowance		(4,270	)	(219.8%)			(23,707	)	(85.3%)
Changes to tax reserves		(215	)	(11.1%)			(181	)	(0.7%)
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries		—			—		(186	)	(0.7%)
Reduction in tax benefits resulting from the vesting of share-based compensation		(4	)	(0.2%)			(38	)	(0.1%)
Other non-deductible/non-taxable items		(422	)	(21.7%)			(2,936	)	(10.5%)
Income tax expense	$	(4,402	)	(226.6%)		$	(19,349	)	(69.6%)

	Nine Months Ended				Nine Months Ended
	September 30, 2021				September 30, 2020
(In thousands of U.S. Dollars, except rates)	Amount			Rate	Amount			Rate
Income tax benefit at combined statutory rates	$	3,548		26.2%	$	29,201		26.2%
Adjustments resulting from:
Realized and unrealized investment gains (losses) not taxable		1,367		10.1%		(239	)	(0.2%)
Increase of valuation allowance		(14,248	)	(105.2%)		(23,706	)	(21.3%)
Changes to tax reserves		1,234		9.1%		(4,978	)	(4.5%)
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries		(547	)	(4.0%)		(18,661	)	(16.7%)
Increase in tax benefits resulting from the vesting of share-based compensation		709		5.2%		33			—
Other non-deductible/non-taxable items		(1,479	)	(10.9%)		(6,256	)	(5.6%)
Income tax expense	$	(9,416	)	(69.5%)	$	(24,606	)	(22.1%)

Income Tax Expense in Other Comprehensive (Loss) Income

For the three and nine months ended September 30, 2021 and 2020, the income tax expense related to the following items in Other Comprehensive (Loss) Income are:

	Three Months Ended							Nine Months Ended
		September 30,						September 30,
(In thousands of U.S. Dollars)		2021			2020			2021				2020
Unrealized change in cash flow hedging instruments		$	199		$	(160	)		$	42			$	235
Realized change in cash flow hedging instruments			82			(29	)			358				(211	)
Reclassification of unrealized change in ineffective cash flow hedging instruments			7			—				83				—
Defined benefit and postretirement benefit plans			(12	)		—				(37	)			40
		$	276		$	(189	)		$	446			$	64

Capital Stock and Reserves (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stock Compensation

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In Thousands of U.S. Dollars)	2021		2020		2021		2020
Cost and expenses applicable to revenues	$	314	$	130	$	920	$	530
Selling, general and administrative expenses		5,706		5,151		17,046		15,325
Research and development		89		29		245		114
	$	6,109	$	5,310	$	18,211	$	15,969

Stock-based Compensation by Plan Type

The following table summarizes the Company’s share-based compensation expense by each award type:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In Thousands of U.S. Dollars)	2021		2020		2021		2020
Stock Options	$	253	$	433	$	808	$	1,449
Restricted Share Units		3,900		3,430		11,524		10,866
Performance Stock Units		1,183		483		3,169		1,229
IMAX China Stock Options		41		600		143		701
IMAX China Long Term Incentive Plan Restricted Share Units		600		332		2,217		1,645
IMAX China Long Term Incentive Plan Performance Stock Units		132		32		350		79
	$	6,109	$	5,310	$	18,211	$	15,969

Schedule of Share-based Compensation, Stock Options, Activity

	Number of Shares							Weighted Average Exercise Price Per Share
	2021			2020			2021			2020
Stock options outstanding, beginning of period		4,892,962			5,732,209		$		26.81	$	26.82
Granted		—			—				—		—
Exercised		(41,613	)		—				21.23		—
Forfeited		(86,587	)		(23,633	)			22.51		22.35
Expired		(903,038	)		(772,665	)			28.31		27.03
Cancelled		(123,220	)		(18,483	)			26.68		27.97
Stock options outstanding, end of period		3,738,504			4,917,428				26.61		26.80
Stock options exercisable, end of period		3,487,857			4,315,484				26.93		27.32

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 nine months ended September 30, 2021 and 2020:

	Number of Awards						Weighted Average Grant Date Fair Value Per Share
	2021			2020				2021			2020
RSUs outstanding, beginning of period		1,564,838			1,065,347		$		18.33	$		23.17
Granted		831,123			1,050,385				21.03			15.35
Vested and settled		(571,616	)		(386,451	)			19.11			21.59
Forfeited		(231,380	)		(54,933	)			19.50			19.70
RSUs outstanding, end of period		1,592,965			1,674,348				19.29			18.75

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 nine months ended September 30, 2021 and 2020:

	Number of Awards						Weighted Average Grant Date Fair Value Per Share
	2021			2020				2021			2020
PSUs outstanding, beginning of period		361,844			—		$		15.68	$		—
Granted		309,574			370,265				20.77			15.66
Forfeited		(54,634	)		(2,526	)			16.08			14.84
PSUs outstanding, end of period		616,784			367,739				18.20			15.67

As of September 30, 2021, the maximum number of shares of common stock that may be issued with respect to PSUs outstanding is 1,079,372, assuming full achievement of the EBITDA and TSR 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					Nine Months Ended
	September 30,					September 30,
	2021			2020		2021		2020
(In thousands)
Issued and outstanding, beginning of period		59,396			58,857		58,921		61,176
Weighted average number of shares (repurchased) issued, net		(152	)		2		286		(1,816	)
Weighted average number of shares outstanding - basic		59,244			58,859		59,207		59,360
Weighted average effect of potential common shares, if dilutive		—			—		—		—
Weighted average number of shares outstanding - diluted		59,244			58,859		59,207		59,360

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2021

Revenue From Contract With Customer [Abstract]

Disaggregation of Revenue by Segment

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.

Segment Reporting (Tables)

9 Months Ended

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)

(2)

(3)	The revenue from this segment principally includes after-market sales of IMAX projection system parts and 3D glasses.

(4)

(5)

Geographic Information

	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

Employees Pension and Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2021

SERP Benefits [Member]

Defined Benefit Plan Disclosure [Line Items]

Amounts Accrued

As of September 30, 2021 and December 31, 2020, the Company’s projected benefit obligation and unfunded status related to the SERP are as follows:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Projected benefit obligation:
Obligation, beginning of period	$	20,116	$	18,840
Interest cost		54		379
Actuarial gain		—		897
Obligation, end of period and unfunded status⁽¹⁾	$	20,170	$	20,116

(1)	The accumulated benefit obligation for the SERP was $20.2 million at September 30, 2021 (December 31, 2020 — $20.1 million).

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments Gain Loss [Line Items]

Fair Value of Financial Instruments

	As of September 30, 2021						As of December 31, 2020
(In thousands of U.S. Dollars)	Carrying Amount			Estimated Fair Value			Carrying Amount			Estimated Fair Value
Level 1
Cash and cash equivalents⁽¹⁾	$	193,008		$	193,008		$	317,379		$	317,379
Equity securities⁽²⁾		1,089			1,089			13,633			13,633
Level 2
Net financed sales receivables⁽³⁾	$	113,200		$	113,210		$	112,396		$	112,603
Net investment in sales-type leases⁽³⁾		22,002			21,850			19,414			19,373
Equity securities⁽¹⁾		1,000			1,000			1,000			1,000
COLI⁽⁴⁾		3,244			3,244			3,155			3,155
Foreign exchange contracts — designated forwards⁽³⁾		(209	)		(209	)		1,635			1,635
Foreign exchange contracts — non-designated forwards⁽³⁾		(61	)		(61	)		344			344
Working Capital Facility borrowings⁽¹⁾		(10,974	)		(10,974	)		(7,643	)		(7,643	)
Credit Facility borrowings⁽¹⁾		—			—			(300,000	)		(300,000	)
Convertible Notes⁽⁵⁾		(230,000	)		(224,574	)		—			—

(1)	Recorded at cost, which approximates fair value.

(2)	Fair value is determined using quoted prices in active markets.

(3)	Fair value is estimated based on discounting future cash flows at currently available interest rates with comparable terms.

(4)	Measured at cash surrender value, which approximates fair value.

(5)	Fair value is determined using quoted market prices that are observable in the market or that could be derived from observable market data.

Notional Amount of Derivative

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:

	September 30,		December 31,
(In thousands of U.S. Dollars)	2021		2020
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	$	24,642	$	26,358
Derivatives not designated as hedging instruments:
Foreign exchange contracts — Forwards		1,123		5,552
	$	25,765	$	31,910

Fair Value of Foreign Exchange Contracts

Fair value of derivatives in foreign exchange contracts:

		September 30,			December 31,
(In thousands of U.S. Dollars)	Balance Sheet Location	2021			2020
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	Other assets	$	128		$	1,635
	Accrued and other liabilities		(337	)		—
Derivatives not designated as hedging instruments:
Foreign exchange contracts — Forwards	Other assets		—			344
	Accrued and other liabilities		(61	)		—
		$	(270	)	$	1,979

Derivatives in Foreign Currency Hedging Relationships

Derivatives in foreign currency hedging relationships are as follows:

		Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands of U.S. Dollars)		2021			2020			2021			2020
Foreign exchange contracts	Derivative (Loss) Gain
— Forwards	Recognized in OCI
	(Effective Portion)	$	(759	)	$	591		$	(159	)	$	(935	)

	Location of Derivative Gain (Loss)
	Reclassified from AOCI	Three Months Ended September 30,						Nine months ended September 30,
(In thousands of U.S. Dollars)	(Effective Portion)	2021			2020			2021			2020
Foreign exchange contracts	Selling, general and
— Forwards	administrative expenses	$	312		$	(110	)	$	1,367			(779	)
	Inventory		—			—		$	—			(26	)
		$	312		$	(110	)	$	1,367		$	(805	)

		Three Months Ended September 30,				Nine months ended September 30,
(In thousands of U.S. Dollars)		2021		2020		2021		2020
Foreign exchange contracts	Derivative Loss Recognized In
— Forwards	and Out of OCI
	(Effective Portion)	$	—	$	—	$	—	$	(55	)

Not Designated as Hedging Instrument [Member]

Derivative Instruments Gain Loss [Line Items]

Derivatives in Foreign Currency Hedging Relationships

Non-designated derivatives in foreign currency relationships are as follows:

		Three Months Ended September 30,					Nine months ended September 30,
(In thousands of U.S. Dollars)		2021			2020		2021			2020
Foreign exchange contracts	Derivative Gain Reclassified
— Forwards	From AOCI
	(Ineffective Portion)	$	(25	)	$	—	$	(318	)	$	—

		Three Months Ended September 30,					Nine months ended September 30,
(In thousands of U.S. Dollars)	Location of Derivative (Loss) Gain	2021			2020		2021		2020
Foreign exchange contracts	Selling, general and
— Forwards	administrative expenses	$	(122	)	$	75	$	269	$	102
		$	(122	)	$	75	$	269	$	102

Non-Controlling Interests (Tables)

9 Months Ended

Sep. 30, 2021

Other Noncontrolling Interest [Member]

Redeemable Noncontrolling Interest [Line Items]

Summary of Movement of the Non-controlling Interest in Temporary Equity Related to Original Film Fund

The following table summarizes the movement of the non-controlling interest in temporary equity related to the Original Film Fund for the nine months ended September 30, 2021:

Balance as of December 31, 2020	$	759
Net income		1
Balance as of September 30, 2021	$	760

Basis of Presentation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Variable Interest Entity [Line Items]
Number of variable interest entities		ten
COVID 19 [Member]
Variable Interest Entity [Line Items]
Allowance for current expected credit losses	$ 3.3	$ 4.9
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Number of variable interest entities primary beneficiary		five
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Number of variable interest entities not a primary beneficiary		five

Basis of Presentation - VIEs Total Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets	$ 871,161	$ 997,750
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities	450,691	532,983
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets	1,575	1,543
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities	$ 259	$ 230

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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Impact of COVID-19 Pandemic - Additional Information (Details) - Impact of COVID-19 Pandemic [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($) Country
IMAX [Member]
Impact Of Coronavirus Nineteen Pandemic [Line Items]
Percentage of global theater network open	93.00%	93.00%
Number of countries in which global theater network open \| Country		70
IMAX [Member] \| United States and Canada [Member]
Impact Of Coronavirus Nineteen Pandemic [Line Items]
Percentage of global theater network open	100.00%	100.00%
IMAX [Member] \| Greater China [Member]
Impact Of Coronavirus Nineteen Pandemic [Line Items]
Percentage of global theater network open	93.00%	93.00%
IMAX [Member] \| Rest of the World [Member]
Impact Of Coronavirus Nineteen Pandemic [Line Items]
Percentage of global theater network open	87.00%	87.00%
IMAX DMR Films [Member]
Impact Of Coronavirus Nineteen Pandemic [Line Items]
Revenue generated from GBO receipts	$ 141.9	$ 360.7
Increase in revenue generated from GBO receipts	$ 71.7	$ 192.6
Percentage of increase in revenue generated from GBO receipts	102.00%	115.00%

Recently Issued Accounting Standards - Additional Information (Details)	9 Months Ended
	Sep. 30, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Credit facility maturity date	Jun. 28, 2023
ASU 2020-04
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Credit facility maturity date	Jun. 28, 2023

Current Expected Credit Losses - Summary of Allowance For Credit Losses Related to Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable Allowance For Credit Loss [Line Items]
Beginning balance	$ 12,306	$ 12,610	$ 14,295	$ 5,137
Current period provision (reversal), net	(764)	1,829	(2,308)	9,506
Write-offs	(313)	(614)	(800)	(614)
Foreign exchange	(87)	308	(45)	104
Ending balance	11,142	14,133	11,142	14,133
Theatre Operators [Member]
Accounts Receivable Allowance For Credit Loss [Line Items]
Beginning balance	8,597	6,317	8,368	3,302
Current period provision (reversal), net	(489)	1,623	(111)	4,718
Write-offs	(43)	(614)	(278)	(614)
Foreign exchange	(89)	133	(3)	53
Ending balance	7,976	7,459	7,976	7,459
Studios [Member]
Accounts Receivable Allowance For Credit Loss [Line Items]
Beginning balance	2,517	5,455	4,481	893
Current period provision (reversal), net	(251)	(262)	(1,928)	4,424
Write-offs	(270)		(522)
Foreign exchange	2	184	(33)	60
Ending balance	1,998	5,377	1,998	5,377
Other [Member]
Accounts Receivable Allowance For Credit Loss [Line Items]
Beginning balance	1,192	838	1,446	942
Current period provision (reversal), net	(24)	468	(269)	364
Foreign exchange		(9)	(9)	(9)
Ending balance	$ 1,168	$ 1,297	$ 1,168	$ 1,297

Current Expected Credit Losses - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Current Expected Credit Losses [Line Items]
Finance income related to net investment in leases with billed amounts past due			$ 0.1	$ 0.1
Finance income related to financed sale receivables with billed amounts past due	$ 1.3	$ 1.4	3.6	4.2
Maximum [Member]
Current Expected Credit Losses [Line Items]
Finance income related to net investment in leases with billed amounts past due	0.1
Theatre And Foreign Movie Studio [Member]
Current Expected Credit Losses [Line Items]
Increase (decrease) in allowance for current expected credit losses, accounts receivables	(1.2)	1.5	(3.2)	9.0
Theatre Operators [Member]
Current Expected Credit Losses [Line Items]
Increase (decrease) in allowance for current expected credit losses, variable consideration receivables	(0.9)	0.8	(0.8)	1.7
Theatre Operators [Member] \| Variable Consideration Receivables [Member]
Current Expected Credit Losses [Line Items]
Increase (decrease) investment in leases and financed sale receivables provision for current expected credit losses	$ (1.6)	$ 1.0	$ (1.8)	$ 4.1

Current Expected Credit Losses - Schedule of Financing Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Net investment in leases
Gross minimum payments due under sales-type leases	$ 23,284	$ 20,830
Unearned finance income	(788)	(859)
Present value of minimum payments due under sales-type leases	22,496	19,971
Allowance for credit losses	(494)	(557)
Net investment in leases	22,002	19,414
Financed sales receivables
Gross minimum payments due under financed sales	150,964	150,917
Unearned finance income	(32,199)	(31,247)
Present value of minimum payments due under financed sales	118,765	119,670
Allowance for credit losses	(5,565)	(7,274)
Net financed sales receivables	113,200	112,396
Total financing receivables	135,202	131,810
Net financed sales receivables due within one year	32,154	34,937
Net financed sales receivables due after one year	81,046	77,459
Net financed sales receivables	$ 113,200	$ 112,396

Current Expected Credit Losses - Schedule of Weighted-average Remaining Lease Term and Weighted-average Interest Rate (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Weighted-average remaining lease term (in years)
Sales-type lease arrangements	9 years	8 years 3 months 18 days
Weighted-average interest rate
Sales-type lease arrangements	6.55%	6.56%
Financed sales receivables	8.75%	8.92%

Current Expected Credit Losses - Schedule of Net Investment In Leases by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Net Investment In Lease Credit Quality Indicator [Line Items]
Net investment leases, By Origination Year, Current fiscal year	$ 4,333	$ 4,148
Net investment leases, By Origination Year, Before latest fiscal year	3,998	8,468
Net investment leases, By Origination Year, Two years before latest fiscal year	7,895	2,730
Net investment leases, By Origination Year, Three years before latest fiscal year	2,533	988
Net investment leases, By Origination Year, Four years before latest fiscal year	881
Net investment leases, By Origination Year, Prior	2,856	3,637
Net Investment in Lease, Total	22,496	19,971
In Good Standing [Member]
Net Investment In Lease Credit Quality Indicator [Line Items]
Net investment leases, By Origination Year, Current fiscal year	959	2,143
Net investment leases, By Origination Year, Before latest fiscal year	2,747	1,190
Net investment leases, By Origination Year, Two years before latest fiscal year	2,245	2,730
Net investment leases, By Origination Year, Prior	1,150	1,826
Net Investment in Lease, Total	7,101	7,889
Credit Watch [Member]
Net Investment In Lease Credit Quality Indicator [Line Items]
Net investment leases, By Origination Year, Current fiscal year	3,374	2,005
Net investment leases, By Origination Year, Before latest fiscal year	1,251	7,278
Net investment leases, By Origination Year, Two years before latest fiscal year	5,650
Net investment leases, By Origination Year, Three years before latest fiscal year	2,533	988
Net investment leases, By Origination Year, Four years before latest fiscal year	881
Net investment leases, By Origination Year, Prior	863	1,047
Net Investment in Lease, Total	14,552	11,318
Transactions Suspended [Member]
Net Investment In Lease Credit Quality Indicator [Line Items]
Net investment leases, By Origination Year, Prior	843	764
Net Investment in Lease, Total	$ 843	$ 764

Current Expected Credit Losses - Schedule of Financed Sale Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, By Origination Year, Current fiscal year	$ 8,222	$ 8,816
Financed sales receivables, By Origination Year, Before lastest fiscal year	8,522	11,981
Financed sales receivables, By Origination Year, Two year before latest fiscal year	11,779	14,903
Financed sales receivables, By Origination Year, Three year before latest fiscal year	13,987	17,247
Financed sales receivables, By Origination Year, Four year before latest fiscal year	16,358	17,859
Financed sales receivables, By Origination Year, Prior	59,897	48,864
Financed sales receivables, Total	141,261	139,641
Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, Total	118,765	119,670
In Good Standing [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, By Origination Year, Current fiscal year	6,311	6,830
Financed sales receivables, By Origination Year, Before lastest fiscal year	4,414	5,480
Financed sales receivables, By Origination Year, Two year before latest fiscal year	5,733	3,547
Financed sales receivables, By Origination Year, Three year before latest fiscal year	3,831	3,740
Financed sales receivables, By Origination Year, Four year before latest fiscal year	5,890	5,072
Financed sales receivables, By Origination Year, Prior	17,830	12,660
In Good Standing [Member] \| Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, Total	44,009	37,329
Credit Watch [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, By Origination Year, Current fiscal year	1,911	1,986
Financed sales receivables, By Origination Year, Before lastest fiscal year	4,108	6,501
Financed sales receivables, By Origination Year, Two year before latest fiscal year	6,046	11,356
Financed sales receivables, By Origination Year, Three year before latest fiscal year	9,847	12,520
Financed sales receivables, By Origination Year, Four year before latest fiscal year	7,733	11,446
Financed sales receivables, By Origination Year, Prior	35,739	34,351
Credit Watch [Member] \| Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, Total	65,384	78,160
Pre-Approved Transactions [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, By Origination Year, Three year before latest fiscal year	309
Financed sales receivables, By Origination Year, Four year before latest fiscal year	1,420	613
Financed sales receivables, By Origination Year, Prior	2,285	755
Pre-Approved Transactions [Member] \| Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, Total	4,014	1,368
Transactions Suspended [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, By Origination Year, Three year before latest fiscal year		987
Financed sales receivables, By Origination Year, Four year before latest fiscal year	1,315	728
Financed sales receivables, By Origination Year, Prior	4,043	1,098
Transactions Suspended [Member] \| Financing Receivable [Member]
Financing Receivable Recorded Investment [Line Items]
Financed sales receivables, Total	$ 5,358	$ 2,813

Current Expected Credit Losses - Schedule of Aging Analysis for Net Investment in Leases and Financed Sale Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	$ 15,190		$ 17,116
Unbilled	126,071		122,525
Financed sales receivables, Total	141,261		139,641
Allowance for Credit Losses	(6,059)		(7,831)
Total financing receivables	135,202		131,810
Net Investment in Leases [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	1,246		1,167
Unbilled	21,250		18,804
Financed sales receivables, Total	22,496		19,971
Allowance for Credit Losses	(494)	$ (579)	(557)	$ (504)	$ (459)	$ (155)
Total financing receivables	22,002		19,414
Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	13,944		15,949
Unbilled	104,821		103,721
Financed sales receivables, Total	118,765		119,670
Allowance for Credit Losses	(5,565)	$ (7,113)	(7,274)	$ (4,643)	$ (3,709)	$ (915)
Total financing receivables	113,200		112,396
Accrued and Current [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	2,210		3,605
Accrued and Current [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	221		298
Accrued and Current [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	1,989		3,307
30 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	1,897		2,123
30 to 89 Days Past Due [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	149		180
30 to 89 Days Past Due [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	1,748		1,943
Equal To Greater Than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	11,083		11,388
Equal To Greater Than 90 Days Past Due [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	876		689
Equal To Greater Than 90 Days Past Due [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Current And Past Due [Line Items]
Billed	$ 10,207		$ 10,699

Current Expected Credit Losses - Schedule of Net Investment in Leases and Financed Sale Receivables with Billed Amounts Past Due Continues to Accrue Finance Income (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	$ 15,190		$ 17,116
Unbilled	126,071		122,525
Allowance for Credit Losses	(6,059)		(7,831)
Total financing receivables	135,202		131,810
Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,246		1,167
Unbilled	21,250		18,804
Allowance for Credit Losses	(494)	$ (579)	(557)	$ (504)	$ (459)	$ (155)
Total financing receivables	22,002		19,414
Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	13,944		15,949
Unbilled	104,821		103,721
Allowance for Credit Losses	(5,565)	$ (7,113)	(7,274)	$ (4,643)	$ (3,709)	$ (915)
Total financing receivables	113,200		112,396
Accrued and Current [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	2,210		3,605
Accrued and Current [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	221		298
Accrued and Current [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,989		3,307
30 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,897		2,123
30 to 89 Days Past Due [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	149		180
30 to 89 Days Past Due [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,748		1,943
Equal To Greater Than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	11,083		11,388
Equal To Greater Than 90 Days Past Due [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	876		689
Equal To Greater Than 90 Days Past Due [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	10,207		10,699
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	11,303		14,578
Unbilled	65,526		76,514
Allowance for Credit Losses	(3,118)		(4,744)
Total financing receivables	73,711		86,348
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	782		752
Unbilled	13,770		13,912
Allowance for Credit Losses	(248)		(310)
Total financing receivables	14,304		14,354
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	10,521		13,826
Unbilled	51,756		62,602
Allowance for Credit Losses	(2,870)		(4,434)
Total financing receivables	59,407		71,994
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Accrued and Current [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,332		2,257
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Accrued and Current [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	180		231
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Accrued and Current [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,152		2,026
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| 30 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,227		1,713
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| 30 to 89 Days Past Due [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	144		162
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| 30 to 89 Days Past Due [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	1,083		1,551
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Equal To Greater Than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	8,744		10,608
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Equal To Greater Than 90 Days Past Due [Member] \| Net Investment in Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	458		359
Net Investment in Leases and Financed Sale Receivables Continue to Accrue Finance Income [Member] \| Equal To Greater Than 90 Days Past Due [Member] \| Net Financed Sales Receivables [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Billed	$ 8,286		$ 10,249

Current Expected Credit Losses - Schedule of Net Investment in Leases and Financed Sale Receivables on Nonaccrual Status (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable Nonaccrual Status [Line Items]
Recorded Receivable	$ 7,001	$ 3,577
Allowance for Credit Losses	(1,292)	(1,500)
Net	5,709	2,077
Net Investment in Leases [Member]
Financing Receivable Nonaccrual Status [Line Items]
Recorded Receivable	843	764
Allowance for Credit Losses	(16)	(18)
Net	827	746
Net Financed Sales Receivables [Member]
Financing Receivable Nonaccrual Status [Line Items]
Recorded Receivable	6,158	2,813
Allowance for Credit Losses	(1,276)	(1,482)
Net	$ 4,882	$ 1,331

Current Expected Credit Losses - Summary of Allowance for Credit Losses Related to Net Investment in Leases and Financed Sale Receivables (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance			$ 7,831
Ending balance	$ 6,059		6,059
Net Investment in Leases [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	579	$ 459	557	$ 155
Current period (reversal) provision, net	(84)	105	(64)	409
Write-offs		(69)		(69)
Foreign exchange	(1)	9	1	9
Ending balance	494	504	494	504
Net Financed Sales Receivables [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	7,113	3,709	7,274	915
Current period (reversal) provision, net	(1,536)	1,201	(1,741)	4,014
Write-offs		(330)		(330)
Foreign exchange	(12)	63	32	44
Ending balance	$ 5,565	$ 4,643	$ 5,565	$ 4,643

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

Amortization of lease assets

Current Expected Credit Losses - Summary of Allowance For Credit Losses Related to Variable Consideration Receivables (Details) - Theatre Operators [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable Allowance For Credit Loss [Line Items]
Beginning balance	$ 2,028	$ 863	$ 1,887
Current period (reversal) provision, net	(933)	790	(771)	$ 1,653
Foreign Exchange	(1)	6	(22)	6
Ending balance	$ 1,094	$ 1,659	$ 1,094	$ 1,659

Lease Arrangements - Additional Information (Details)	9 Months Ended
Lease Arrangements - Additional Information (Details)	Sep. 30, 2021 Lease
Leases [Line Items]
Lessee, operating lease description	The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Condensed Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term.
Lessee, operating lease, existence of option to extend term	true
Lessee, operating lease, existence of option to extend description	The Company has determined that it is reasonably certain that the renewal options on its warehouse leases will be exercised based on previous history, its current understanding of future business needs and its level of investment in leasehold improvements, among other factors.
Lessee, operating lease, assumptions for discount rate	The incremental borrowing rate used in the calculation of the Company’s lease liability is based on the location of each leased property.
Leases include options to purchase leased property	0
Lessee, operating lease, existence 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.
Lessor, sales-type lease description	The Company provides IMAX Theater Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX Theater System, the Company earns fixed upfront and ongoing consideration. 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.
Minimum [Member]
Leases [Line Items]
Lessee, operating lease, renewal term	1 year
Sales-type lease, lease term	10 years
Non-cancellable term of joint revenue sharing arrangements	10 years
Maximum [Member]
Leases [Line Items]
Lessee, operating lease, renewal term	5 years
Sales-type lease, lease term	20 years
Non-cancellable term of joint revenue sharing arrangements	or longer

Lease Arrangements - Components of Lease Expense (Details) - Selling, General and Administrative Expenses [Member] - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2021

Sep. 30, 2020

Leases [Line Items]

Operating lease cost

^[1]

$ 163

$ 133

$ 546

$ 392

684

706

2,098

2,155

Interest on lease liabilities

242

258

715

765

Total lease cost

$ 1,089

$ 1,097

$ 3,359

$ 3,312

[1]	Includes short-term leases and variable lease costs, which are not significant for the three and nine months ended September 30, 2021 and 2020.

Lease Arrangements - Supplemental Cash and Non-Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 2,907	$ 2,721
Right-of-use assets obtained in exchange for lease obligations	$ 1,047	$ 297

Lease Arrangements - Lessee Operating Lease Balance Sheet Amounts and Lines (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Leases [Line Items]
Operating Leases	$ 15,388
Property, plant and equipment [Member]
Leases [Line Items]
Right-of-Use Assets	12,833	$ 13,911
Accrued and other liabilities [Member]
Leases [Line Items]
Operating Leases	$ 15,388	$ 16,634

Lease Arrangements - Lessee Operating Leases Weighted Average Remaining Lease Term and Weighted Average Interest Rate (Details)	Sep. 30, 2021	Dec. 31, 2020
Lease Cost [Abstract]
Weighted-average remaining lease term (years)	7 years	7 years 7 months 6 days
Weighted-average discount rate	5.96%	5.91%

Lease Arrangements - Lessee Operating Lease, Maturity (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Operating Lease Liabilities Payments Due [Abstract]
2021 (three months remaining)	$ 924
2022	3,360
2023	2,454
2024	2,230
2025	2,078
Thereafter	8,026
Total lease payments	19,072
Less: interest expense	(3,684)
Present value of operating lease liabilities	$ 15,388

Inventories - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Inventories
Raw materials	$ 27,172	$ 30,096
Work-in-process	1,964	3,014
Finished goods	9,109	6,470
Total	$ 38,245	$ 39,580

Inventories - Additional Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2021

Sep. 30, 2020

^[1]

Dec. 31, 2020

Inventories (Textuals) [Abstract]

Finished goods inventory with title passed to customer

$ 2,200

$ 2,100

Write-downs for excess and obsolete inventory

$ 300

$ 600

$ 468

^[1]

$ 729

[1]	In the nine months ended September 30, 2021, the Company recorded write-downs of $0.5 million (2020 — $0.7 million) in Costs and Expenses Applicable to Technology Sales related to excess and damaged inventory.

Debt - Revolving Credit Facility Borrowings (Details) $ in Thousands, ¥ in Millions	Sep. 30, 2021 USD ($)	Sep. 30, 2021 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)
Bank indebtedness [Line Items]
Unamortized debt issuance costs	$ (1,488)		$ (1,967)
Revolving Credit Facility Borrowings, net	9,486		305,676
Credit Facility [Member]
Bank indebtedness [Line Items]
Borrowings			300,000
Working Capital Facility [Member]
Bank indebtedness [Line Items]
Borrowings	$ 11,000	¥ 71.2	$ 7,600	¥ 49.9

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

Variable consideration receivables

Debt - Additional Information (Details) $ / shares in Units, ¥ in Millions					3 Months Ended			6 Months Ended	9 Months Ended		195 Months Ended
	Jul. 28, 2021 USD ($)	Jul. 27, 2021 USD ($)	Mar. 19, 2021 USD ($)	Mar. 15, 2021 USD ($)	Sep. 30, 2021 USD ($) $ / shares	Sep. 30, 2020	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2021 USD ($) $ / shares	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) $ / shares	Sep. 30, 2021 CNY (¥)	Jul. 01, 2021 USD ($)	Jul. 01, 2021 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 CNY (¥)	Oct. 28, 2019 USD ($)
Borrowings (Textual) [Abstract]
Credit facility description									The Company has a credit agreement, the Fifth Amended and Restated Credit Agreement, with Wells Fargo Bank, National Association (“Wells Fargo”), as agent, and a syndicate of lenders party thereto (the “Credit Agreement”). The Company’s obligations under the Credit Agreement are guaranteed by certain of its subsidiaries (the “Guarantors”) and are secured by first-priority security interests in substantially all the assets of the Company and the Guarantors. The facility provided by the Credit Agreement (the “Credit Facility”) matures on June 28, 2023.
Credit facility maturity date									Jun. 28, 2023
Current borrowing capacity					$ 300,000,000.0				$ 300,000,000.0		$ 300,000,000.0
Repayment of outstanding indebtedness									$ 300,243,000
Line of credit facility covenant terms									The Credit Agreement contains a covenant that requires the Company 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.
Effective interest rate						2.70%			2.64%	2.24%
Letters of guarantee outstanding \| ¥												¥ 0.3				¥ 0.0
Proceeds from issuance of convertible notes, net									$ 223,675,000
Debt issuance costs paid									$ 474,000	$ 1,026,000
Working Capital Facility [Member]
Borrowings (Textual) [Abstract]
Credit facility description									On July 1, 2021, IMAX (Shanghai) Multimedia Technology Co., Ltd. (“IMAX Shanghai”), one of the Company’s majority-owned subsidiaries in China, renewed its unsecured revolving facility for up to 200.0 million Chinese Renminbi (“RMB”) (approximately $30.8 million) to fund ongoing working capital requirements (the “Working Capital Facility”).
Current borrowing capacity													$ 30,800,000	¥ 200.0
Borrowings					$ 11,000,000.0				$ 11,000,000.0		11,000,000.0	71.2			$ 7,600,000	¥ 49.9
Effective interest rate					4.29%	4.35%			4.32%	4.35%
Line of credit facility expiration period									2022-07
Remaining borrowing capacity					$ 18,300,000				$ 18,300,000		18,300,000	¥ 118.8
Convertible Notes [Member]
Borrowings (Textual) [Abstract]
Borrowings					$ 230,000,000				$ 230,000,000		$ 230,000,000
Debt instrument, principal amount			$ 230,000,000.0
Debt instrument, annual interest rate			0.50%		0.50%				0.50%		0.50%	0.50%
Proceeds from issuance of convertible notes, net			$ 223,700,000
Debt issuance costs paid			$ 1,200,000
Debt instrument, frequency of periodic interest payment									semi-annually
Debt instrument, payment terms									The Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum on the principal thereof, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021.
Debt instrument, date of first required payment									Oct. 01, 2021
Debt instrument, maturity date									Apr. 01, 2026
Debt instrument, convertible, terms of conversion feature									Holders of the Convertible Notes have the right to convert their Convertible Notes in certain circumstances and during specified periods. Before January 1, 2026, holders of the Convertible Notes have the right to convert their Convertible Notes only upon the occurrence of certain events. From and after January 1, 2026, holders of the Convertible Notes may convert their Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Company will pay or deliver, as applicable, cash or a combination of cash (in an amount no less than the principal amount of the Convertible Notes being converted) and common shares, at its election, based on the applicable conversion rates. The initial conversion rate is 34.7766 common shares per $1,000 principal amount of Convertible Notes, which represents an initial conversion price of approximately $28.75 per common share, and is subject to adjustment upon the occurrence of certain events.
Debt instrument, initial conversion rate per $1,000 principal amount									34.7766
Convertible notes principal amount					$ 1,000				$ 1,000		$ 1,000
Debt instrument, initial conversion price \| $ / shares					$ 28.75				$ 28.75		$ 28.75
Debt instrument, redemption, description									The Convertible Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after April 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any Convertible Notes for redemption will constitute a “make-whole fundamental change” with respect to such notes, in which case the conversion rate applicable to the conversion of such notes will be increased in certain circumstances if such notes are converted after they are called for redemption.
Debt instrument, redemption start date									Apr. 06, 2024
Convertible Notes [Member] \| Call Option [Member]
Borrowings (Textual) [Abstract]
Cap price of capped call transactions \| $ / shares					37.2750				37.2750		37.2750
Percentage of premium of cap price over last reported sale price per common share on March 16, 2021									75.00%
Cost of capped call transactions									$ 19,100,000
Reduction to other equity									19,100,000
Credit Facility [Member]
Borrowings (Textual) [Abstract]
Current borrowing capacity															300,000,000.0
Borrowings					$ 0				0		$ 0
Amount drew down in available borrowing capacity							$ 280,000,000.0
Repayment of outstanding indebtedness								$ 300,000,000.0
Letters of credit or advance payment guarantees					0				$ 0		0				0
Line of credit facility covenant terms									On March 15, 2021, the Company entered into the Second Amendment to the Credit Agreement (as previously amended by the First Amendment to the Credit Agreement, dated as of June 10, 2020) (collectively, the “First and Secondment Amendments”). On July 28, 2021, the Company entered into the Third Amendment to the Credit Agreement (as previously amended by the First and Second Amendments) (collectively, the “Amendments”). The Amendments, among other things, (i) suspend the Senior Secured Net Leverage Ratio covenant through the first quarter of 2022, (ii) re-establish the Senior Secured Net Leverage Ratio covenant thereafter, provided that for subsequent quarters that such covenant is tested, as applicable, the Company will be permitted to use its quarterly EBITDA (as defined in the Credit Agreement) from the third and fourth quarters of 2019 in lieu of EBITDA for the corresponding quarters of 2021, (iii) add a $75.0 million minimum liquidity covenant measured at the end of each calendar month, (iv) restrict the Company’s ability to make certain restricted payments, dispositions and investments, create or assume liens and incur debt that would otherwise have been permitted by the Credit Agreement, (v) permit the issuance of the Convertible Notes (as discussed below) and related transactions, including the capped call transactions, or other unsecured debt, in an amount not to exceed $290.0 million, (vi) allow $30.0 million in permitted repurchases of the Company’s common shares, subject to a $300.0 million pro forma minimum liquidity covenant and (vii) increase permitted repurchases of the common shares of IMAX China Holding, Inc. from $5.0 million to $20.0 million, subject to pro forma compliance with the existing financial covenants set forth in the Credit Agreement. The modifications to the negative covenants, the minimum liquidity covenant, permitted share repurchases and modifications to certain other provisions in the Credit Agreement pursuant to the Amendments are effective until the earlier of the delivery of the compliance certificate for the fourth quarter of 2022 or the date on which the Company, in its sole discretion, elects to calculate its compliance with the Senior Secured Net Leverage Ratio by using either its actual EBITDA or annualized EBITDA (the “Designated Period”).
Compliance with covenants									As of September 30, 2021, the Company was in compliance with all of its requirements under the Credit Agreement, as amended.
Liquidity covenant minimum									$ 75,000,000.0
Debt instrument, permitted repurchase amount					30,000,000.0				30,000,000.0		30,000,000.0
Line of credit facility pro forma minimum liquidity covenant									$ 300,000,000.0
Line of credit facility Increase in permitted repurchases of pro forma compliance	$ 20,000,000.0	$ 5,000,000.0
Interest rate description									Borrowings under the Credit Facility 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); provided, however, that from the effective date of the First Amendment to the Credit Agreement until the Company delivers a compliance certificate under the Credit Facility following the end of the Designated Period, the applicable margin for LIBOR borrowings will be 2.50% per annum and the applicable margin for U.S. base rate borrowings will be 1.75% per annum. The effective interest rate for the three and nine months ended September 30, 2021 was nil and 2.64%, respectively (2020 — 2.70% and 2.24%, respectively).
Standby fees percentage				0.50%
Fees incurred in connection with the amendments											1,600,000
Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Borrowings (Textual) [Abstract]
Interest rate margin percentage				2.50%
Credit Facility [Member] \| Base Rate [Member]
Borrowings (Textual) [Abstract]
Interest rate margin percentage				1.75%
Letters of Guarantees [Member] \| Working Capital Facility [Member]
Borrowings (Textual) [Abstract]
Remaining borrowing capacity					1,500,000				$ 1,500,000		1,500,000	¥ 9.7
Wells Fargo Foreign Exchange Facility [Member]
Borrowings (Textual) [Abstract]
Unrealized gain (loss) on outstanding foreign currency forward contracts					(300,000)				(300,000)		(300,000)				2,000,000.0
Notional Amount of arrangements entered into					25,800,000				25,800,000		25,800,000				31,900,000
NBC Facility [Member]
Borrowings (Textual) [Abstract]
Current borrowing capacity																	$ 5,000,000.0
Remaining borrowing capacity					0				$ 0		0				$ 0
Line of credit facility renewed date									Oct. 15, 2021
Minimum [Member]
Borrowings (Textual) [Abstract]
Borrowing capacity under uncommitted accordion feature					440,000,000.0				$ 440,000,000.0		440,000,000.0
Minimum [Member] \| Convertible Notes [Member]
Borrowings (Textual) [Abstract]
Percentage of last reported sale price per common share against conversion price for specific period of time									130.00%
Minimum [Member] \| Credit Facility [Member]
Borrowings (Textual) [Abstract]
Standby fees percentage									0.25%
Minimum [Member] \| Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Borrowings (Textual) [Abstract]
Interest rate margin percentage									1.00%
Minimum [Member] \| Credit Facility [Member] \| Base Rate [Member]
Borrowings (Textual) [Abstract]
Interest rate margin percentage									0.25%
Maximum [Member]
Borrowings (Textual) [Abstract]
Letters of guarantee outstanding					$ 100,000				$ 100,000		$ 100,000
Maximum [Member] \| Credit Facility [Member]
Borrowings (Textual) [Abstract]
Debt instrument net leverage ratio									3.25
Line of credit facility covenant capacity				$ 290,000,000.0
Standby fees percentage									0.38%
Maximum [Member] \| Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Borrowings (Textual) [Abstract]
Interest rate margin percentage									1.75%
Maximum [Member] \| Credit Facility [Member] \| Base Rate [Member]
Borrowings (Textual) [Abstract]
Interest rate margin percentage									1.00%

Debt - Summary of Convertible Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Bank indebtedness [Line Items]
Unamortized discounts and debt issuance costs	$ (1,488)	$ (1,967)
Total	223,265
Convertible Notes [Member]
Bank indebtedness [Line Items]
Convertible Notes	230,000
Unamortized discounts and debt issuance costs	(6,735)
Total	$ 223,265

Commitments, Contingencies and Guarantees - Additional Information (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended	51 Months Ended	95 Months Ended
	Dec. 03, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Mar. 27, 2008	Dec. 02, 2011	Jun. 30, 2021	Jun. 23, 2021
Loss Contingencies [Line Items]
Final Award in favor of company							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	$30,000 to cover the costs of the application
Final Award amount issued							$ 11,300,000
Final Award additional interest							$ 2,512
Final Award settlement cost								$ 30,000
Award inclusive of interest				$ 24,200,000
Damages awarded	$ 11,300,000
Litigation liability related to Final Judgment						$ 11,300,000
Amounts collected in respect of theater systems not delivered						7,200,000
Legal judgement and arbitration awards		$ 0	$ 0	(1,770,000)	$ 0	4,100,000
Litigation liability paid									$ 9,500
Litigation settlement expense reversed										$ 1,800
Benefit of legal judgement and arbitration awards										$ 1,800
Product warranty accrual		0		0
Indemnification of its directors/officers		$ 0		0		0
Other Indemnification				$ 0		0
Maximum [Member]
Loss Contingencies [Line Items]
Product warranty accrual						$ 100,000

Condensed Consolidated Statements of Operations Supplemental Information - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) exhibitor Theater Film	Sep. 30, 2020 USD ($) exhibitor Theater Film	Sep. 30, 2021 USD ($) exhibitor Theater Film	Sep. 30, 2020 USD ($) exhibitor Theater Film	Dec. 31, 2020 USD ($)
Selling Expenses
Film exploitation costs, including advertising and marketing included in costs and expenses applicable to revenues-services	$ 3,200	$ 500	$ 5,900	$ 3,100
Foreign Exchange
Foreign exchange translation gain (loss)	$ (600)	$ 200	$ 1,100	$ (800)
Collaborative Arrangements
Total number of exhibitors under traditional and hybrid joint revenue sharing agreements \| exhibitor	42	41	42	41
Total number of theater systems under traditional and hybrid joint revenue sharing agreements \| Theater	1,228	1,233	1,228	1,233
Total number of operating theaters under traditional and hybrid joint revenue sharing agreement \| Theater	904	881	904	881
Average percentage of the box-office receipts of the film for recovering digital re-mastering cost	12.50%		12.50%
Number of films exhibited in the period \| Film	24		53	20
Number of new films exhibited \| Film	21	6	47	16
Number of carryover films exhibited \| Film	3		6	4
Revenue attributable to transactions arising between the company and its customers under IMAX DMR arrangements	$ 15,700	$ 6,900	$ 39,400	$ 18,100
Number of significant co-produced film arrangements \| Film	1		1
Number of other co-produced film arrangements \| Film	3		3
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets	$ 871,161		$ 871,161		$ 997,750
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities	450,691		450,691		532,983
Variable Interest Entity, Primary Beneficiary [Member]
Collaborative Arrangements
Variable Interest Entity, Consolidated, Carrying Amount, Total Assets	1,575		1,575		1,543
Variable Interest Entity, Consolidated, Carrying Amount, Total Liabilities	259		259		$ 230
Retrospective adoption of ASC Topic 606, Revenue from Contracts with Customers [Member]
Collaborative Arrangements
Revenue attributable to transactions arising between the company and its customers under joint revenue sharing arrangements	10,900	4,500	$ 29,900	11,500
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
Amounts attributable to transactions between the company and other parties involved in the production of films included in cost and expense	200	500	$ 300	1,900
Technology Sales [Member]
Selling Expenses
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues	200	300	600	400
Direct advertising and marketing costs included in costs and expenses applicable to revenues	100	300	300	600
Technology Rentals [Member]
Selling Expenses
Deferred direct selling costs and direct advertising and marketing included in costs and expenses applicable to revenues	100	300	400	500
Direct advertising and marketing costs included in costs and expenses applicable to revenues	$ 700	$ 400	$ 1,500	$ 800

Condensed Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Operating Assets and Liabilities (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

(Increase) decrease in:

Financing receivables

$ (1,693)

$ (3,212)

Prepaid expenses

(2,767)

(1,332)

(1,243)

(1,007)

Other assets

664

(3,712)

Decrease in:

Accounts payable

(5,135)

(8,320)

Accrued and other liabilities

^[1]

(1,728)

(6,526)

Changes in other operating assets and liabilities

$ (11,902)

$ (24,109)

[1]	Includes a $9.5 million payment made in the second quarter of 2021 in connection with the settlement of the Giencourt matter, as discussed in Note 8(b)(ii)

Condensed Consolidated Statements of Cash Flows Supplemental Information - Summary of Changes in Other Operating Assets and Liabilities (Parenthetical) (Details) $ in Millions	3 Months Ended
	Jun. 30, 2021 USD ($)
Supplemental Cash Flow Elements [Abstract]
Payment for legal settlement	$ 9.5

Condensed Consolidated Statements of Cash Flows Supplemental Information - Summary of Depreciation and Amortization (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Summary of Depreciation and amortization

Film assets

$ 10,661

$ 6,159

Property, plant and equipment:

Equipment supporting joint revenue sharing arrangements

16,784

19,247

Other property, plant and equipment

7,176

8,478

Other intangible assets

^[1]

4,509

4,882

Other assets

^[2]

1,440

1,933

Depreciation and amortization

$ 40,570

$ 40,699

[1]	Includes the amortization of licenses and intellectual property recorded in Research and Development on the Condensed Consolidated Statement of Operations of $1.0 million in the nine months ended September 30, 2021 (2020 — $1.0 million).
[2]	Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements.

Condensed Consolidated Statements of Cash Flows Supplemental Information - Summary of Depreciation and Amortization (Parenthetical) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Supplemental Cash Flow Elements [Abstract]
Amortization of intangible assets net in research and development	$ 1.0	$ 1.0

Condensed Consolidated Statements of Cash Flows Supplemental Information - Write-downs (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2021

Sep. 30, 2020

Write-downs

Inventories

$ 300

$ 600

$ 468

^[1]

$ 729

^[1]

Equipment supporting joint revenue sharing arrangements

^[2]

328

1,050

Other property, plant and equipment

Other intangible assets

132

Film assets

^[3]

10,211

Other assets

^[4]

1,151

Write-downs

$ 878

$ 13,339

[1]	In the nine months ended September 30, 2021, the Company recorded write-downs of $0.5 million (2020 — $0.7 million) in Costs and Expenses Applicable to Technology Sales related to excess and damaged inventory.
[2]	In the nine months ended September 30, 2021, the Company recorded charges of $0.3 million (2020 — $1.1 million) in Costs and Expenses Applicable to Technology Rentals mostly related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems.
[3]	In the nine months ended September 30, 2020, the Company recorded impairment losses of $10.2 million in Costs and Expenses Applicable to Image Enhancement and Maintenance Services principally to write-down the carrying value of certain documentary and alternative film content due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. To a much lesser extent, the impairment losses also relate to the write-down of DMR related film assets.
[4]	In the nine months ended September 30, 2020, the Company recorded a write-down of $1.2 million in Asset Impairments related to content-related assets which became impaired in the period.

Condensed Consolidated Statements of Cash Flows Supplemental Information - Write-downs (Parenthetical) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2021

Sep. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Theater system components written off in Costs and expenses

$ 300

$ 1,100

Write-downs for excess and obsolete inventory

$ 300

$ 600

$ 468

^[1]

729

^[1]

Film assets write downs on impairment loss

10,200

Other assets write down on impairment

$ 1,200

[1]	In the nine months ended September 30, 2021, the Company recorded write-downs of $0.5 million (2020 — $0.7 million) in Costs and Expenses Applicable to Technology Sales related to excess and damaged inventory.

Condensed Consolidated Statements of Cash Flows Supplemental Information - Significant Non-cash Investing Activities - (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Net (decrease) increase in accruals related to:
Investment in equipment supporting joint revenue sharing arrangements	$ 217	$ (1,897)
Acquisition of other intangible assets	(863)	69
Purchases of property, plant and equipment	(8)	158
Net accruals	$ (654)	$ (1,670)

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Contingency [Line Items]
Income tax expense (benefit)	$ 4,402	$ 19,349	$ 9,416	$ 24,606
Effective income tax rate	(226.60%)	(69.60%)	(69.50%)	(22.10%)
Canadian statutory tax rate	26.20%		26.20%
Deferred tax asset, valuation allowance	$ 45,500		$ 45,500		$ 28,800
Deferred income tax asset after valuation allowance	18,700		18,700		$ 18,000
Deferred income tax asset, valuation allowance change			16,700
Deferred income tax (benefit) expense			(1,687)	$ 23,142
Payment of foreign withholding taxes			2,000
Foreign Country [Member] \| China [Member]
Income Tax Contingency [Line Items]
Deferred income tax (benefit) expense	20,400		20,400
Shareholder's Equity [Member]
Income Tax Contingency [Line Items]
Deferred income tax asset, valuation allowance change			2,500
Income Tax Expense [Member]
Income Tax Contingency [Line Items]
Deferred income tax asset, valuation allowance change			14,200
Impact of COVID-19 Pandemic [Member]
Income Tax Contingency [Line Items]
Deferred tax asset, valuation allowance	$ 4,300		$ 4,300

Income Taxes - Schedule of Effective Tax Rates (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax benefit at combined statutory rates, Amount	$ 509	$ 7,279	$ 3,548	$ 29,201
Unrealized investment gains not taxable, Amount		420
Realized and unrealized investment gains (losses) not taxable, Amount			1,367	(239)
Increase of valuation allowance, Amount	(4,270)	(23,707)	(14,248)	(23,706)
Changes to tax reserves, Amount	(215)	(181)	1,234	(4,978)
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries, Amount		(186)	(547)	(18,661)
Reduction in tax benefits resulting from the vesting of share-based compensation	(4)	(38)	709	33
Other non-deductible/non-taxable items, Amount	(422)	(2,936)	(1,479)	(6,256)
Income tax expense	$ (4,402)	$ (19,349)	$ (9,416)	$ (24,606)
Income tax benefit at combined statutory rates, Rate	26.20%	26.20%	26.20%	26.20%
Unrealized investment gains not taxable, Rate		1.50%
Realized and unrealized investment gains (losses) not taxable, Rate			10.10%	(0.20%)
Increase of valuation allowance, Rate	(219.80%)	(85.30%)	(105.20%)	(21.30%)
Changes to tax reserves, Rate	(11.10%)	(0.70%)	9.10%	(4.50%)
Withholding taxes resulting from management's decision to no longer indefinitely reinvest the historical earnings of certain foreign subsidiaries, Rate		(0.70%)	(4.00%)	(16.70%)
Reduction in tax benefits resulting from the vesting of share-based compensation	(0.20%)	(0.10%)	5.20%
Other non-deductible/non-taxable items, Rate	(21.70%)	(10.50%)	(10.90%)	(5.60%)
Income tax expense	(226.60%)	(69.60%)	(69.50%)	(22.10%)

Income Taxes - Income Tax Expense in Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Unrealized change in cash flow hedging instruments	$ 199	$ (160)	$ 42	$ 235
Realized change in cash flow hedging instruments	82	(29)	358	(211)
Reclassification of unrealized change in ineffective cash flow hedging instruments	7		83
Defined benefit and postretirement benefit plans	(12)		(37)	40
Income tax effect on other comprehensive income (loss)	$ 276	$ (189)	$ 446	$ 64

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

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