Condensed Consolidated Statements of Cash Flows Supplemental Information

9 Months Ended

Sep. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Condensed Consolidated Statements of Cash Flows Supplemental Information

10.  Condensed Consolidated Statements of Cash Flows Supplemental Information

(a) Changes in other operating assets and liabilities as reported in the Condensed Consolidated Statements of Cash Flows are comprised of the following:

	Nine Months Ended
	September 30,
		2020				2019
Decrease (increase) in:
Financing receivables	$		(3,212	)	$		6,184
Prepaid expenses			(1,332	)			(1,163	)
Variable consideration receivable			(1,007	)			(1,096	)
Other assets			(3,712	)			(4,298	)
Increase (decrease) in:
Accounts payable			(8,320	)			(8,001	)
Accrued and other liabilities			(6,526	)			(9,504	)
	$		(24,109	)	$		(17,878	)

(b) Depreciation and amortization are comprised of the following:

	Nine Months Ended
	September 30,
		2020			2019
Film assets	$		6,159	$		13,015
Property, plant and equipment:
Joint revenue sharing arrangements			19,247			17,179
Other property, plant and equipment			8,478			9,100
Other intangible assets			4,882			4,568
Other assets			1,933			1,262
Deferred financing costs			595			376
	$		41,294	$		45,500

(c) Write-downs are comprised of the following:

	Nine Months Ended
	September 30,
		2020			2019
Film assets(1)	$		10,211	$		179
Other assets(2)			1,151			—
Property, plant and equipment
Joint revenue sharing arrangements(3)			1,050			748
Other property, plant and equipment			66			78
Inventories(4)			729			—
Other intangible assets			132			22
	$		13,339	$		1,027

(1) In the nine months ended September 30, 2020, the Company recorded impairment losses of $10.2 million (2019 — $0.2 million) principally to write-down the carrying value of certain documentary and alternative content film assets due to a decrease in projected box office totals and related revenues based on management’s regular quarterly recoverability assessments. To a much lesser extent, the impairment losses also relate to the write-down of DMR related film assets. As of September 30, 2020, following the recording of these write-downs, the Company’s film assets totaled $7.5 million, which principally consists of DMR and documentary content. There can be no assurances that there will not be additional write-downs to the carrying values of these assets as the Company continues to assess the ongoing impact of the COVID-19 pandemic (see Notes 1 and 2).

(2) In the nine months ended September 30, 2020, the Company recorded a $1.2 million (2019 — $nil) write-down of other assets, of which $1.0 million relates to the write-down of certain content-related assets which became impaired in the period.

(3) In the nine months ended September 30, 2020, the Company recorded charges of $1.1 million in Costs and Expenses Applicable to Technology Rentals principally related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems. In the nine months ended September 30, 2019, the Company recorded a charge of $0.1 million in Costs and Expenses Applicable to Technology Rentals and  $0.1 million in Revenues -Technology Rentals related to the write-down of leased xenon-based digital systems which were taken out of service in connection with customer upgrades to laser-based digital systems.

(4) In the nine months ended September 30, 2020, the Company recorded write-downs of $0.7 million (2019 — $nil) related to excess inventory.

(d) Significant non-cash investing activities are comprised of the following:

	Nine Months Ended
	September 30,
		2020				2019
Net (decrease) increase in accruals related to:
Investment in joint revenue sharing arrangements	$		(1,897	)	$		2,040
Acquisition of other intangible assets			69				6
Purchases of property, plant and equipment			158				(432	)
	$		(1,670	)	$		1,614