Several of the Company’s leases are classified as sales-type leases for transactions related to the lease of IMAX theater systems. Certain arrangements that are legal sales are also classified as sales-type leases as certain clauses within the arrangements limit transfer of title or provide the Company with conditional rights to the system. The customer’s rights under the Company’s lease arrangements are described in note 2(m) in the Company’s 2018 Form 10-K. The Company classifies its lease arrangements at inception of the arrangement and, if required, after a modification of the lease arrangement, to determine whether they are sales-type

leases or operating leases. Under the Company’s lease arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s lease portfolio terms are typically non-cancellable for 10 to 20 years with renewal provisions from inception. Except for those sales arrangements that are classified as sales-type leases, the Company’s leases generally do not contain an automatic transfer of title at the end of the lease term. The Company’s lease arrangements do not contain a guarantee of residual value at the end of the lease term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty generally after the first year of the lease until the end of the lease term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company.

The Company has assessed the nature of its joint revenue sharing arrangements and concluded that, based on the guidance in the Revenue Recognition Topic of the ASC, the arrangements contain a lease. Under joint revenue sharing arrangements, the customer has the ability and the right to operate the hardware components or direct others to operate them in a manner determined by the customer. The Company’s joint revenue sharing arrangements are typically non-cancellable for 10 years or longer with renewal provisions. Title to equipment under joint revenue sharing arrangements does not transfer to the customer. The Company’s joint revenue sharing arrangements do not contain a guarantee of residual value at the end of the term. The customer is required to pay for executory costs such as insurance and taxes and is required to pay the Company for maintenance and extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the theater systems commencing on the date specified in the arrangement’s shipping terms and ending on the date the theater systems are delivered back to the Company. See additional details regarding the Company’s traditional and hybrid joint revenue sharing arrangements as described in note 2(m) in the Company’s 2018 Form 10-K.

Financing receivables, consisting of net investment in sales-type leases and receivables from financed sales of theater systems are as follows:

	September 30,			December 31,
	2019			2018
Gross minimum lease payments receivable	$	12,350		$	10,499
Unearned finance income		(699	)		(902	)
Minimum lease payments receivable		11,651			9,597
Accumulated allowance for uncollectible amounts		(155	)		(155	)
Net investment in leases		11,496			9,442
Gross financed sales receivables		143,251			155,044
Unearned finance income		(32,492	)		(36,215	)
Financed sales receivables		110,759			118,829
Accumulated allowance for uncollectible amounts		(915	)		(839	)
Net financed sales receivables		109,844			117,990
Total financing receivables	$	121,340		$	127,432

Net financed sales receivables due within one year	$	27,443		$	26,911
Net financed sales receivables due after one year	$	82,401		$	91,079

	September 30,			December 31,
	2019			2018

Weighted-average remaining lease term (years)
Sales-type lease arrangements		7.5			7.3

Weighted-average interest rate
Sales-type lease arrangements		3.60	%		8.00	%
Financed sales receivables		9.10	%		9.10	%

The Company mainly leases office and warehouse storage space and office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The Company assumed that it was reasonably certain that the renewal options on its warehouse leases would be exercised based on previous history and knowledge, current understanding of future business needs and level of investment in leasehold improvements, among other considerations. The incremental borrowing rate used in the calculation of the lease liability is based on the location of each leased property. None of the Company’s leases include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company rents or subleases certain office space to third parties, which have a remaining term of less than 12 months and are not expected to be renewed.

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2019		2018		2019		2018
Operating lease cost ⁽¹⁾	SG&A Expenses	$	102	$	1,240	$	565	$	3,677
Amortization of lease assets	SG&A Expenses		667		—		1,863		—
Interest on lease liabilities	SG&A Expenses		265		—		807		—
Total lease cost		$	1,034	$	1,240	$	3,235	$	3,677

		September 30,		January 1,
		2019		2019
Assets
Operating Leases	Property, plant and equipment	$	15,877	$	17,462

Liabilities
Operating Leases⁽¹⁾	Accrued and other liabilities	$	18,391	$	19,960

	September 30,			January 1,
	2019			2019
Weighted-average remaining lease term (years)
Operating Leases		7.8			8.3

Weighted-average discount rate
Operating Leases		5.90	%		5.80	%

	Operating Leases
2019 (three months remaining)	$	831
2020		3,451
2021		3,047
2022		2,283
2023		2,175
Thereafter		11,312
Total lease payments	$	23,099
Less: interest expense		(5,006	)
Present value of lease liabilities	$	18,093

As of December 31, 2018, under ASC Topic 840, minimum lease payments under non-cancelable operating leases by period were expected to be as follows:

	Operating Leases
2019	$	3,847
2020		2,790
2021		2,491
2022		1,843
2023		1,759
Thereafter		9,657
Total lease payments	$	22,387