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Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments Gain Loss [Line Items]

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 March 31, 2023						As of December 31, 2022
(In thousands of U.S. Dollars)	Carrying Amount			Estimated Fair Value			Carrying Amount			Estimated Fair Value
Level 1
Cash and cash equivalents(1)	$	99,246		$	99,246		$	97,401		$	97,401
Equity securities(2)		1,050			1,050			1,035			1,035
Level 2
Net financed sales receivables(3)	$	100,425		$	96,801		$	101,052		$	100,059
Net investment in sales-type leases(3)		30,762			30,716			28,332			27,972
Equity securities(1)		1,000			1,000			1,000			1,000
COLI(4)		3,428			3,428			3,398			3,398
Foreign exchange contracts — designated forwards(2)		(176	)		(176	)		(649	)		(649	)
Wells Fargo Credit Facility borrowings(1)		(20,000	)		(20,000	)		(25,000	)		(25,000	)
HSBC China Facility borrowings(1)		(12,165	)		(12,165	)		(12,496	)		(12,496	)
Bank of China Facility borrowings(1)		(379	)		(379	)		(374	)		(374	)
Federal Economic Development Loan(3)		(2,043	)		(2,043	)		(1,782	)		(1,782	)
Convertible Notes(5)		(230,000	)		(218,210	)		(230,000	)		(196,717	)
Level 3
Interest in film classified as a financial instrument(6)	$	—		$	—		$	—		$	—

(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.

(6)

Recorded at amortized cost less impairment losses. Inputs used in the calculation of estimated fair value include management’s projection of future box office and ancillary receipts for the film net of distribution costs and other costs in accordance with the investment agreement. See 15(e) below.

Fair Value of Foreign Exchange Contracts

The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Condensed Consolidated Financial Statements:

Fair value of derivatives in foreign exchange contracts:


		March 31,			December 31,
(In thousands of U.S. Dollars)	Balance Sheet Location	2023			2022
Derivatives designated as hedging instruments:
Foreign exchange contracts — Forwards	Other assets	$	193		$	50
	Accrued and other liabilities		(369	)		(699	)
		$	(176	)	$	(649	)

Derivatives in Foreign Currency Hedging Relationships

The following tabular disclosures reflect the impact that derivative instruments and hedging activities have on the Company’s Condensed Consolidated Financial Statements:

Derivatives in foreign currency hedging relationships are as follows:


		Three Months Ended March 31,
(In thousands of U.S. Dollars)		2023			2022
Foreign exchange contracts	Derivative Gain
— Forwards	Recognized in OCI
	(Effective Portion)	$	134		$	315

	Location of Derivative Loss
	Reclassified from AOCI	Three Months Ended March 31,
(In thousands of U.S. Dollars)	(Effective Portion)	2023			2022
Foreign exchange contracts	Selling, general and
— Forwards	administrative expenses	$	(339	)	$	(29	)