Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

21. Segment Reporting

The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), as such term is determined under U.S. GAAP. The CODM, along with other members of management, assess segment performance based on segment revenues and gross margins. Selling, general and administrative expenses, research and development costs, the amortization of intangible assets, provision for (reversal of) current expected credit losses, certain write-downs, interest income, interest expense, and income tax (expense) benefit are not allocated to the Company’s segments.

In the first quarter of 2023, the Company revised its internal segment reporting, including the information provided to the CODM to assess segment performance and allocate resources. Accordingly, the Company has two reportable segments:

(1)Content Solutions – principally includes the digital remastering of films and other content into IMAX formats for distribution across the IMAX network. To a lesser extent, the Content Solutions segment also earns revenue from the distribution of large-format documentary films and IMAX events and experiences including music, gaming, and sports, as well as the provision of film post-production services.

(2)Technology Products and Services – principally includes the sale, lease, and maintenance of IMAX Systems. To a lesser extent, the Technology Product and Services segment also earns revenue from certain ancillary theater business activities, including after-market sales of IMAX System parts and 3D glasses.

The Company’s activities that do not meet the criteria to be considered a reportable segment are reported within All Other. Prior period comparatives have been revised to conform with the current period presentation.

(a)Segment Financial Information

The following table presents the Company’s revenue and gross margin by reportable segment for the years ended December 31, 2023, 2022, and 2021:

	Years Ended December 31,
	Revenue(1)						Gross Margin
(In thousands of U.S. Dollars)	2023		2022		2021		2023		2022		2021
Content Solutions	$	126,698	$	101,820	$	76,989	$	74,106	$	51,240	$	45,269
Technology Products and Services		234,303		192,368		172,952		129,946		101,055		86,041
Sub-total for reportable segments		361,001		294,188		249,941		204,052		152,295		131,310
All Other		13,838		6,617		4,942		10,289		4,060		3,096
Total	$	374,839	$	300,805	$	254,883	$	214,341	$	156,355	$	134,406

The following table presents the Company’s assets by reportable segment, reconciled to consolidated assets, as of December 31, 2023 and 2022:

	As of December 31,
(In thousands of U.S. Dollars)	2023		2022
Content Solutions	$	97,123	$	92,706
Technology Products and Services		529,057		524,309
Sub-total for reportable segments		626,180		617,015
All Other		43,994		29,686
Corporate and other non-segment specific assets		144,495		174,453
Total	$	814,669	$	821,154

The following table presents the Company’s amortization by reportable segment, and on a consolidated basis, for the years ended December 31, 2023, 2022, and 2021:

	Years Ended December 31,
(In thousands of U.S. Dollars)	2023		2022		2021
Content Solutions	$	24,032	$	18,790	$	17,441
Technology Products and Services		28,497		24,089		26,284
Sub-total for reportable segments		52,529		42,879		43,725
All Other		1,395		309		—
Corporate and other non-segment specific assets		6,098		13,473		12,357
Total	$	60,022	$	56,661	$	56,082

The following table presents the Company’s write-downs, including asset impairments and credit loss expense (reversal) by reportable segment, and on a consolidated basis, for the years ended December 31, 2023, 2022, and 2021:

	Years Ended December 31,(2)
(In thousands of U.S. Dollars)	2023		2022		2021
Content Solutions	$	411	$	848	$	151
Technology Products and Services		1,233		1,714		1,254
Sub-total for reportable segments		1,644		2,562		1,405
All Other		151		—		—
Corporate and other non-segment specific assets(2)		1,848		13,161		(3,592	)
Total	$	3,643	$	15,723	$	(2,187	)

The following table presents the Company’s purchases of Property, Plant and Equipment within the Consolidated Statements of Cash Flows by reportable segment for the years ended December 31, 2023, 2022, and 2021:

	Years Ended December 31,
(In thousands of U.S. Dollars)	2023		2022		2021
Content Solutions	$	722	$	5,321	$	2,208
Technology Products and Services		17,883		22,381		10,740
Sub-total for reportable segments		18,605		27,702		12,948
All Other		566		9		—
Corporate and other non-segment specific assets		5,320		516		736
Total	$	24,491	$	28,227	$	13,684

(1)The Company’s largest customer represents 10% of total Revenues as of December 31, 2023 (2022 ― 12%; 2021 ― 10%). No single customer comprises more than 10% of the Company’s total Accounts Receivable as of December 31, 2023 and 2022.

(2)Includes a provision for current expected credit losses of $1.8 million (2022 ― provision of $8.5 million; 2021 ― net reversal of $4.0 million). (Refer to Note 5.) 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).)

(b)Geographic Information

Revenue by geographic area is based on the location of the customer. Revenue related to the IMAX Film Remastering process is presented based upon the geographic location of the IMAX System that exhibit the remastered films. IMAX Film Remastering revenue is generated through contractual relationships with studios and other third parties and these may not be in the same geographical location as the IMAX System.

The following table summarizes the Company’s revenues by geographic area for the years ended December 31, 2023, 2022, and 2021:

	Years Ended December 31,
(In thousands of U.S. Dollars)	2023		2022		2021
United States	$	117,925	$	107,734	$	73,499
Greater China		91,901		73,330		112,801
Asia (excluding Greater China)		59,690		47,145		23,682
Western Europe		54,908		40,245		20,942
Latin America		13,788		9,418		3,601
Canada		18,746		7,550		3,266
Rest of the World		17,881		15,383		17,092
Total	$	374,839	$	300,805	$	254,883

No single country in the Rest of the World, Western Europe, Latin America, and Asia (excluding Greater China) classifications comprises more than 10% of total revenue.

The following table presents the breakdown of Property, Plant and Equipment by geography as of December 31, 2023 and 2022:

	As of December 31,
(In thousands of U.S. Dollars)		2023		2022
United States		$	98,831	$	94,505
Greater China			72,492		86,665
Canada			37,877		36,385
Western Europe			12,763		20,132
Asia (excluding Greater China)			16,538		10,471
Rest of the World			4,798		4,738
Total		$	243,299	$	252,896