Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Breakdown of Revenue and Gross Margin (Margin Loss) by Category

The following table sets forth the breakdown of revenue and gross margin (margin loss) by category for the three months ended September 30, 2020:

	Revenue					Gross Margin (Margin Loss) ⁽³⁾
	2020			2019		2020			2019
IMAX Technology Network
IMAX DMR	$	6,886		$	26,665	$	3,079		$	17,866
Joint revenue sharing arrangements, contingent rent		4,473			16,605		(2,491	)		9,524
		11,359			43,270		588			27,390
IMAX Technology Sales and Maintenance
IMAX Systems ⁽¹⁾		17,437			20,977		8,671			11,652
Joint revenue sharing arrangements, fixed fees		57			1,438		(117	)		136
IMAX Maintenance		5,855			13,657		794			6,125
Other Theater Business ⁽²⁾		307			1,560		31			505
		23,656			37,632		9,379			18,418
New Business Initiatives		378			596		372			541
Film Distribution and Post-production
Film Distribution⁽⁴⁾		1,126			1,343		(5,597	)		(760	)
Post-production		739			2,185		(464	)		810
		1,865			3,528		(6,061	)		50
Sub-total		37,258			85,026		4,278			46,399
Other		(2	)		1,364		(449	)		721
Total	$	37,256		$	86,390	$	3,829		$	47,120

The following table sets forth the breakdown of revenue and gross margin (margin loss) by category for nine months ended September 30, 2020:

	Revenue				Gross Margin (Margin Loss) ⁽³⁾
	2020		2019		2020			2019
IMAX Technology Network
IMAX DMR	$	18,061	$	93,908	$	7,492		$	61,602
Joint revenue sharing arrangements, contingent rent		10,307		60,189		(10,610	)		40,777
		28,368		154,097		(3,118	)		102,379
IMAX Technology Sales and Maintenance
IMAX Systems ⁽¹⁾		27,674		50,504		14,497			26,723
Joint revenue sharing arrangements, fixed fees		1,196		6,525		110			1,301
IMAX Maintenance		13,225		39,815		(355	)		17,046
Other Theater Business ⁽²⁾		1,261		5,766		77			1,821
		43,356		102,610		14,329			46,891
New Business Initiatives		1,488		1,908		1,245			1,441
Film Distribution and Post-production
Film Distribution⁽⁴⁾		4,453		3,333		(9,296	)		(1,093	)
Post-production		3,088		6,458		(96	)		1,576
		7,541		9,791		(9,392	)		483
Sub-total		80,753		268,406		3,064			151,194
Other		260		2,979		(1,837	)		619
Total	$	81,013	$	271,385	$	1,227		$	151,813

(1)

Includes initial upfront payments and the present value of fixed minimum payments from sales and sales-type lease arrangements of IMAX Theater Systems, and the present value of estimated variable consideration from sales of IMAX Theater Systems. To a lesser extent, also includes finance income associated with these revenue streams.

(2)	Principally includes after-market sales of IMAX projection system parts and 3D glasses.

(3)

IMAX DMR gross margin includes marketing costs of $0.4 million and $2.8 million for the three and nine months ended September 30, 2020, respectively (2019 — $4.3 million and $17.7 million, respectively). JRSA gross margin includes advertising, marketing and commission expense of $0.7 million and $1.3 million for the three and nine months ended September 30, 2020, respectively (2019 —$0.8 million and $1.1 million, respectively). IMAX Systems gross margin includes marketing and commission costs of $0.6 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, (2019 — $0.6 million and $1.5 million, respectively). Film Distribution segment gross margin includes marketing expense of $0.2 million and $0.4 million for the three and nine months ended September 30, 2020, respectively (2019 — $0.1 million and $0.7 million, respectively).

(4)

During the three and nine months ended September 30, 2020, Film Distribution segment results were significantly influenced by impairment losses of $5.4 million and $9.9 million, respectively, 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 (2019 – $0.2 million and $0.2 million).

Geographic Information

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

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2020		2019		2020			2019
Revenue
Greater China	$	19,346	$	26,557		$	26,008		$	85,813
Western Europe		5,085		8,433			10,273			28,809
Asia (excluding China)		4,935		13,534			12,663			32,287
United States		4,335		24,316			21,112			84,553
Latin America		1,616		2,912			3,251			7,725
Russia & the CIS		738		2,909			2,962			10,216
Canada		384		1,993			1,327			6,485
Rest of the World		817		5,736			3,417			15,497
Total	$	37,256	$	86,390		$	81,013		$	271,385