Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

13. Revenue from Contracts with Customers

(a)Disaggregated Information About Revenue

The following tables summarize the Company’s revenues by type and reportable segment for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30, 2022
	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)	$	4,925	$	1,016	$	34	$	—	$	5,975
Joint Revenue Sharing Arrangements, fixed fees		—		—		498		—		498
Other Theater Business		920		—		—		—		920
All Other		836		—		—		—		836
Sub-total		6,681		1,016		532		—		8,229
Image enhancement and maintenance services
IMAX DMR		—		27,581		—		—		27,581
IMAX Maintenance		14,683		—		—		—		14,683
Film Distribution		23		818		—		—		841
Film Post-Production		1,122		—		—		—		1,122
All Other		—		731		—		—		731
Sub-total		15,828		29,130		—		—		44,958
Technology rentals
Joint Revenue Sharing Arrangements, contingent rent		—		—		18,525		—		18,525
Sub-total		—		—		18,525		—		18,525
Finance income
IMAX Systems		—		—		—		2,256		2,256
Total	$	22,509	$	30,146	$	19,057	$	2,256	$	73,968

	Six Months Ended June 30, 2022
	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)	$	10,870	$	1,384	$	34	$	—	$	12,288
Joint Revenue Sharing Arrangements, fixed fees		—		—		1,488		—		1,488
Other Theater Business		1,590		—		—		—		1,590
All Other		1,758		81		—		—		1,839
Sub-total		14,218		1,465		1,522		—		17,205
Image enhancement and maintenance services
IMAX DMR		—		47,145		—		—		47,145
IMAX Maintenance		29,625		—		—		—		29,625
Film Distribution		167		1,255		—		—		1,422
Film Post-Production		1,947		—		—		—		1,947
All Other		—		913		—		—		913
Sub-total		31,739		49,313		—		—		81,052
Technology rentals
Joint Revenue Sharing Arrangements, contingent rent		—		—		31,168		—		31,168
All Other		—		—		18		—		18
Sub-total		—		—		31,186		—		31,186
Finance income
IMAX Systems		—		—		—		4,561		4,561
Total	$	45,957	$	50,778	$	32,708	$	4,561	$	134,004

	Three Months Ended June 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)	$	9,604	$	691	$	2,746	$	—	$	13,041
Joint Revenue Sharing Arrangements, fixed fees		—		—		1,002		—		1,002
Other Theater Business		475		—		—		—		475
All Other		652		3		—		—		655
Sub-total		10,731		694		3,748		—		15,173
Image enhancement and maintenance services
IMAX DMR		—		11,793		—		—		11,793
IMAX Maintenance		11,235		—		—		—		11,235
Film Distribution		1		193		—		—		194
Film Post-Production		1,396		—		—		—		1,396
All Other		—		93		—		—		93
Sub-total		12,632		12,079		—		—		24,711
Technology rentals
Joint Revenue Sharing Arrangements, contingent rent		—		—		7,862		—		7,862
All Other		—		—		268		—		268
Sub-total		—		—		8,130		—		8,130
Finance income
IMAX Systems		—		—		—		2,941		2,941
Total	$	23,363	$	12,773	$	11,878	$	2,941	$	50,955

	Six Months Ended June 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)	$	10,442	$	1,771	$	4,122	$	—	$	16,335
Joint Revenue Sharing Arrangements, fixed fees		—		—		2,740		—		2,740
Other Theater Business		912		—		—		—		912
All Other		1,320		41		—		—		1,361
Sub-total		12,674		1,812		6,862		—		21,348
Image enhancement and maintenance services
IMAX DMR		—		23,737		—		—		23,737
IMAX Maintenance		20,141		—		—		—		20,141
Film Distribution		1		415		—		—		416
Film Post-Production		1,987		—		—		—		1,987
All Other		—		45		—		—		45
Sub-total		22,129		24,197		—		—		46,326
Technology rentals
Joint Revenue Sharing Arrangements, contingent rent		—		—		16,221		—		16,221
All Other		—		—		268		—		268
Sub-total		—		—		16,489		—		16,489
Finance income
IMAX Systems		—		—		—		5,546		5,546
Total	$	34,803	$	26,009	$	23,351	$	5,546	$	89,709

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

(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. As of June 30, 2022, $17.3 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2021 — $20.2 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.