Segmented Information

6 Months Ended

Jun. 30, 2011

Segmented Information [Abstract]

Segmented Information

15. Segmented Information

     The Company has 8 reportable segments identified by category of product sold or service provided: IMAX systems; theater system maintenance; joint revenue sharing arrangements; film production and IMAX DMR; film distribution; film post-production; theater operations; and other. The IMAX systems segment designs, manufactures, sells or leases IMAX theater projection system equipment. The theater system maintenance segment maintains IMAX theater projection system equipment in the IMAX theater network. The joint revenue sharing arrangements segment provides IMAX theater projection system equipment to an exhibitor in exchange for a share of the box-office and concession revenues. The film production and IMAX DMR segment produces films and performs film re-mastering services. The film distribution segment distributes films for which the Company has distribution rights. The film post-production segment provides film post-production and film print services. The theater operations segment operates certain IMAX theaters. The Company refers to all theaters using the IMAX theater system as “IMAX theaters.” The other segment includes camera rentals and other miscellaneous items. The accounting policies of the segments are the same as those described in note 2 to the audited consolidated financial statements included in the Company’s 2010 Form 10-K.

     The Company’s Chief Operating Decision Maker (“CODM”), as defined in the Segment Reporting Topic of the FASB ASC, assesses segment performance based on segment revenues, gross margins and film performance. Selling, general and administrative expenses, research and development costs, amortization of intangibles, receivables provisions (recoveries), writedowns net of recoveries, interest income, interest expense and tax provision (recovery) are not allocated to the segments.

     Transactions between the film production and 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.

     Transactions between the other segments are not significant.

	Three Months					Six Months
	Ended June 30,					Ended June 30,
	2011			2010		2011			2010
Revenue(1)
IMAX systems	$	20,470		$	17,329	$	42,729		$	28,282
Theater system maintenance		6,127			5,102		11,922			10,068
Joint revenue sharing arrangements		8,347			8,494		12,387			27,430
Films
Production and IMAX DMR		12,422			14,540		19,680			37,992
Distribution		5,275			3,870		7,892			7,142
Post-production		1,039			2,326		2,663			4,918
Theater operations		1,918			2,954		2,899			8,903
Other		1,634			983		2,220			3,646
Total	$	57,232		$	55,598	$	102,392		$	128,381
Gross margins
IMAX systems(2)	$	11,440		$	9,918	$	23,175		$	14,418
Theater system maintenance		2,381			2,051		4,968			4,360
Joint revenue sharing arrangements(2)		4,881			6,501		7,059			23,313
Films
Production and IMAX DMR(2)		6,461			6,823		9,220			26,324
Distribution(2)		487			719		1,113			1,461
Post-production		307			837		1,996			2,891
Theater operations		(242	)		152		(1,005	)		1,810
Other		587			39		422			762
Total	$	26,302		$	27,040	$	46,948		$	75,339

(1)

For the three and six months ended June 30, 2011, the Company’s two largest customers collectively represent 13.1% and 11.5%, respectively, of total revenues (2010 — 15.4% and 20.4%, respectively).

(2)

IMAX systems include commission costs of $0.1 million and $0.8 million for the three and six months ended June 30, 2011, respectively (2010 — $0.4 million and $0.6 million, respectively). Joint revenue sharing arrangements segment margins include advertising, marketing and commission costs of $1.8 million and $2.3 million for the three and six months ended June 30, 2011, respectively (2010 — $0.6 million and $1.2 million, respectively). Production and DMR segment margins include marketing costs of $0.7 million and $1.2 million for the three and six months ended June 30, 2011, respectively (2010 — $0.6 million and $0.8 million, respectively). Distribution segment margins include marketing costs of $1.4 million and $1.6 million for the three and six months ended June 30, 2011, respectively (2010 — recovery of $0.2 million and an expense of $0.3 million, respectively).

	June 30,		December 31,
	2011		2010
Assets
IMAX systems	$	126,571	$	119,708
Theater system maintenance		14,800		13,548
Joint revenue sharing arrangements		99,523		81,376
Films
Production and IMAX DMR		18,166		17,229
Distribution		7,776		5,313
Post-production		3,652		2,877
Theater operations		552		582
Other		2,525		1,785
Corporate and other non-segment specific assets		98,567		106,670
Total	$	372,132	$	349,088

Geographic Information

	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Revenue
Canada	$	4,626	$	874	$	5,627	$	2,771
United States		36,240		38,087		61,720		93,882
Russia and the CIS		5,086		1,987		9,003		3,626
Western Europe		4,193		3,245		6,475		7,937
Rest of Europe		317		230		2,641		562
Asia (excluding Greater China)		3,554		6,142		5,873		8,655
Greater China		1,890		1,112		8,662		4,434
Mexico		302		475		658		1,735
Rest of the World		1,024		3,446		1,733		4,779
Total	$	57,232	$	55,598	$	102,392	$	128,381

     No single country in the Rest of the World, Western Europe, Rest of Europe or Asia (excluding Greater China) classifications comprises more than 5% of the total revenue.