Condensed Consolidated Statements of Operations Supplemental Information (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Selling Expenses, Including Sales Commissions and Other Selling Expenses

The following table summarizes the Company's selling expenses, including sales commissions and other selling expenses such as direct advertising and marketing expenses, which are recognized within Costs and Expenses Applicable to Revenues in the Condensed Consolidated Statements of Operations, for three and six months ended June 30, 2022 and 2021:

	Three Months Ended June 30,
	2022					2021
(In thousands of U.S. Dollars)	Sales Commissions			Other Selling Expenses		Sales Commissions		Other Selling Expenses
Technology sales(1)	$	47		$	38	$	310	$	196
Image enhancement and maintenance services(2)		—			4,850		—		1,507
Technology rentals(3)		(334	)		265		69		117
Total	$	(287	)	$	5,153	$	379	$	1,820

	Six Months Ended June 30,
	2022					2021
(In thousands of U.S. Dollars)	Sales Commissions			Other Selling Expenses		Sales Commissions		Other Selling Expenses
Technology sales(1)	$	47		$	200	$	442	$	337
Image enhancement and maintenance services(2)		—			7,765		—		2,714
Technology rentals(3)		(289	)		730		163		681
Total	$	(242	)	$	8,695	$	605	$	3,732

(1)Sales commissions paid prior to the recognition of the related revenue are deferred and recognized upon the client acceptance of the IMAX Theater System. Direct advertising and marketing costs for each theater are expensed as incurred.

(2)Film exploitation costs, including advertising and marketing costs, are expensed as incurred.

(3)Sales commissions related to joint revenue sharing arrangements accounted for as operating leases are recognized in the month they are earned by the salesperson, which is typically the month in which the theater system is installed, and are subject to subsequent performance-based adjustments. In the second quarter of 2022, a $0.3 million reversal of accrued commissions was recorded due to such performance-based adjustments. Direct advertising and marketing costs for each theater are expensed as incurred.