Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

20. Revenue from Contracts with Customers

(a)Disaggregated Information About Revenue

In the first quarter of 2023, the Company updated its reportable segments (refer to Note 21). Prior year comparatives have been revised to conform with the current year presentation. The following tables summarize the Company’s revenues by type and reportable segment for the years ended December 31, 2023, 2022, and 2021:

	Year Ended December 31, 2023
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment
Film Remastering and Distribution	$	—	$	118,637	$	—	$	—	$	118,637
Other Content Solutions		—		8,061		—		—		8,061
		—		126,698		—		—		126,698
Technology Products and Services Segment
System Sales		93,271		—		—		—		93,271
System Rentals		—		—		75,566		—		75,566
Maintenance		—		56,737		—		—		56,737
Finance Income		—		—		—		8,729		8,729
		93,271		56,737		75,566		8,729		234,303
Sub-total for reportable segments		93,271		183,435		75,566		8,729		361,001
All Other		7,521		6,317		—		—		13,838
Total	$	100,792	$	189,752	$	75,566	$	8,729	$	374,839

	Year Ended December 31, 2022
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment
Film Remastering and Distribution	$	—	$	94,867	$	—	$	—	$	94,867
Other Content Solutions		—		6,935		18		—		6,953
		—		101,802		18		—		101,820
Technology Products and Services Segment
System Sales		65,510		—		—		—		65,510
System Rentals		—		—		61,768		—		61,768
Maintenance		—		56,608		—		—		56,608
Finance Income		—		—		—		8,482		8,482
		65,510		56,608		61,768		8,482		192,368
Sub-total for reportable segments		65,510		158,410		61,786		8,482		294,188
All Other		3,648		2,969		—		—		6,617
Total	$	69,158	$	161,379	$	61,786	$	8,482	$	300,805

	Year Ended December 31, 2021
(In thousands of U.S. Dollars)	Technology Sales		Image Enhancement and Maintenance Services		Technology Rentals		Finance Income		Total
Content Solutions Segment
Film Remastering and Distribution	$	—	$	70,659	$	—	$	—	$	70,659
Other Content Solutions		—		5,724		606		—		6,330
		—		76,383		606		—		76,989
Technology Products and Services Segment
System Sales		62,637		—		—		—		62,637
System Rentals		—		—		46,184		—		46,184
Maintenance		—		53,339		—		—		53,339
Finance Income		—		—		—		10,792		10,792
		62,637		53,339		46,184		10,792		172,952
Sub-total for reportable segments		62,637		129,722		46,790		10,792		249,941
All Other		3,516		1,426		—		—		4,942
Total	$	66,153	$	131,148	$	46,790	$	10,792	$	254,883

(b)Deferred Revenue

IMAX 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 December 31, 2023, $22.8 million of consideration has been deferred in relation to outstanding maintenance services to be provided on existing maintenance contracts (December 31, 2022 — $21.0 million and 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 Systems where control of the system has not transferred to the customer. The deferred revenue balance related to an individual system 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.

For the year ended December 31, 2023, $43.1 million of revenue was recognized that was included in the $70.9 million balance of deferred revenue as of December 31, 2022. For the year ended December 31, 2022, $26.5 million of revenue was recognized that was included in the $81.2 million balance of deferred revenue as of December 31, 2021.