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Consolidated Statements of Cash Flows Supplemental Information
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
Consolidated Statements of Cash Flows Supplemental Information 19. Consolidated Statements of Cash Flows Supplemental Information
(a)
Changes in other operating assets and liabilities

 

 

Years Ended December 31,

 

(In thousands of U.S. Dollars)

 

2023

 

 

 

2022

 

 

 

2021

 

Decrease (Increase) in:

 

 

 

 

 

 

 

 

 

 

 

Financing receivables

$

 

2,642

 

 

$

 

5,411

 

 

$

 

(7,637

)

Prepaid expenses

 

 

(1,273

)

 

 

 

(1,892

)

 

 

 

(3,230

)

Variable consideration receivables

 

 

(20,337

)

 

 

 

667

 

 

 

 

(2,905

)

Other assets

 

 

(10,473

)

 

 

 

968

 

 

 

 

1,003

 

Increase (Decrease) in:

 

 

 

 

 

 

 

 

Accounts payable

 

 

(535

)

 

 

 

8,496

 

 

 

 

(4,752

)

Accrued and other liabilities

 

 

(6,013

)

 

 

 

(12,849

)

 

 

 

15,167

 

 

$

 

(35,989

)

 

$

 

801

 

 

$

 

(2,354

)

(b)
Cash payments made on account

 

 

Years Ended December 31,

 

(In thousands of U.S. Dollars)

 

2023

 

 

 

2022

 

 

 

2021

 

Income taxes(1)

$

 

17,812

 

 

$

 

13,963

 

 

$

 

18,475

 

Interest

$

 

3,930

 

 

$

 

715

 

 

$

 

3,251

 

 

(1)
In 2021, the Canadian tax authorities denied the Company’s deduction of certain foreign taxes accrued in 2015, but not yet paid as discussions with the local authorities are ongoing. This resulted in the payment of $8.9 million in income taxes and $1.6 million in associated interest to the Canadian tax authorities in the fourth quarter of 2021. The Company has filed a waiver with the Canadian tax authorities in respect of 2015 so that when the foreign taxes are paid, the Company would be entitled to receive a refund of the $8.9 million in tax, which is recorded on the Company’s Consolidated Balance Sheets within Accounts Receivable, and the $1.6 million in associated interest.

 

(c)
Depreciation and amortization

 

 

Years Ended December 31,

 

(In thousands of U.S. Dollars)

 

 

2023

 

 

 

2022

 

 

 

2021

 

Film assets

 

$

 

20,281

 

 

$

 

16,881

 

 

$

 

16,316

 

Property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

Equipment supporting joint revenue sharing arrangements

 

 

 

22,857

 

 

 

 

22,165

 

 

 

 

22,320

 

Other property, plant and equipment(1)

 

 

 

9,125

 

 

 

 

9,757

 

 

 

 

9,479

 

Other intangible assets(2)

 

 

 

5,952

 

 

 

 

6,103

 

 

 

 

6,079

 

Other assets(3)

 

 

 

1,807

 

 

 

 

1,755

 

 

 

 

1,888

 

Total

 

$

 

60,022

 

 

$

 

56,661

 

 

$

 

56,082

 

 

(1)
Includes the amortization of laser projection systems, camera, and lens upgrades recorded in Research and Development on the Statements of Operations of $0.5 million in the year ended December 31, 2023 (2022 — $0.6 million; 2021 — $0.8 million).
(2)
Includes the amortization of licenses and intellectual property recorded in Research and Development on the Consolidated Statements of Operations of $1.3 million in the year ended December 31, 2023 (2022 — $1.3 million; 2021 — $1.3 million).
(3)
Includes the amortization of lessee incentives provided by the Company to its customers under joint revenue sharing arrangements.
(d)
Write-downs, including asset impairments

 

Years Ended December 31,

 

(In thousands of U.S. Dollars)

 

2023

 

 

 

2022

 

 

 

2021

 

Other assets(1)

$

 

144

 

 

$

 

4,470

 

 

$

 

—

 

Inventories(2)

 

 

542

 

 

 

 

741

 

 

 

 

890

 

Property, plant and equipment:

 

 

 

 

 

 

 

 

 

 

 

Equipment supporting joint revenue sharing arrangements(3)

 

 

756

 

 

 

 

973

 

 

 

 

364

 

Other property, plant and equipment

 

 

31

 

 

 

 

57

 

 

 

 

217

 

Other intangible assets

 

 

—

 

 

 

 

87

 

 

 

 

142

 

Film assets(4)

 

 

411

 

 

 

 

848

 

 

 

 

151

 

 

$

 

1,884

 

 

$

 

7,176

 

 

$

 

1,764

 

 

(1)
In 2022, the Company recognized a full impairment of its RMB 30.0 million ($4.5 million) investment in the film Mozart from Space based on projected box office results and distribution costs. (Refer to Note 22(e).)
(2)
In 2023, the Company recorded write-downs of $0.5 million, net of a recovery of $0.4 million in Costs and Expenses Applicable to Technology Sales. The write-downs recorded during the year ended December 31, 2023 include $0.5 million related to damaged system pending insurance claim. For the years ended December 31, 2022 and 2021, the Company recorded write-downs of $0.7 million and $0.9 million, respectively, in Costs and Expenses Applicable to Technology Sales to reduce the carrying value of inventory.
(3)
In 2023, the Company recorded charges of $0.8 million (2022 — $1.0 million; 2021 — $0.4 million) in Costs and Expenses Applicable to Revenues - Technology Rentals mostly related to the write-downs of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems, as well as two IMAX Systems that were removed from their existing locations.
(4)
In 2023, the Company recorded impairment losses of $0.4 million (2022 — $0.8 million; 2021 — $0.2 million) related to the write-down of content-related film assets.
(e)
Significant non-cash investing activities

 

Years Ended December 31,

 

(In thousands of U.S. Dollars)

 

2023

 

 

 

2022

 

 

 

2021

 

Net increase (decrease) in accruals related to:

 

 

 

 

 

 

 

 

 

 

 

Investment in equipment supporting joint revenue sharing arrangements

$

 

(600

)

 

$

 

790

 

 

$

 

1,009

 

Acquisition of other intangible assets

 

 

(942

)

 

 

 

30

 

 

 

 

(891

)

Purchases of property, plant and equipment(1)

 

 

(541

)

 

 

 

311

 

 

 

 

(188

)

$

 

(2,083

)

 

$

 

1,131

 

 

$

 

(70

)

 

(1)
Refer to Note 6 for supplemental disclosure of non-cash leasing activities.
(f)
Significant non-cash financing activities

In the fourth quarter of 2023, the Company recognized a $1.6 million liability on the Consolidated Balance Sheets within Accounts Payable related to repurchase of its common shares, which settled subsequent to December 31, 2023 (2022 — $2.0 million liability within Accrued and Other Liabilities).