Employee's Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 2025

Retirement Benefits [Abstract]

Employee's Pension and Postretirement Benefits

14. Employee’s Pension and Postretirement Benefits

Defined Benefit Plan

The Company has an unfunded defined benefit pension plan, the Supplemental Executive Retirement Plan (the “SERP”), covering its CEO, Richard L. Gelfond. Under the terms of his employment agreement, as amended, the total benefit payable to Mr. Gelfond under the SERP is fixed at $20.3 million.

As of September 30, 2025, the Company’s projected benefit obligation under the SERP was $17.4 million (December 31, 2024 — $19.0 million). For the three and nine months ended September 30, 2025, the Company recorded interest costs of $0.1 million and $0.5 million, respectively, (2024 — $0.2 million and $0.6 million, respectively) related to the SERP. Pursuant to an amendment to his employment agreement dated July 17, 2025, the term of Mr. Gelfond’s employment was extended through December 31, 2028. As a result, during the three months ended September 30, 2025, the Company recorded an actuarial gain of $2.3 million as a component of Other Comprehensive (Loss) Income. The Company expects to recognize additional interest costs of $0.2 million related to the SERP during the remainder of 2025. No contributions are expected to be made to the SERP in 2025.

Postretirement Benefits – Executives

The Company has an unfunded postretirement plan for Mr. Gelfond and Bradley J. Wechsler, former Chairman of the Company’s Board of Directors (the “Executive Postretirement Benefit Plan”).

As of September 30, 2025, the Company’s postretirement benefits obligation under this plan was $0.5 million (December 31, 2024 — $0.5 million). For the three and nine months ended September 30, 2025, the Company has recorded an expense of less than $0.1 million, respectively (2024 — less than $0.1 million, respectively) related to this plan.

Postretirement Benefits – Canadian Employees

The Company has an unfunded postretirement plan for its Canadian employees meeting specific eligibility requirements. The Company will provide eligible participants, upon retirement, with health and welfare benefits. As of September 30, 2025, the Company’s postretirement benefits obligation under this plan was $0.8 million (December 31, 2024 — $0.8 million). For the three and nine months ended September 30, 2025, the Company has recorded expense of less than $0.1 million, respectively, (2024 — less than $0.1 million, respectively) related to this plan.

Deferred Compensation Benefit Plan

The Company maintained a nonqualified deferred compensation benefit plan (the “Retirement Plan”) covering the former CEO of IMAX Entertainment and Senior Executive Vice President of the Company. Under the terms of the Retirement Plan, the benefits were due to vest in full if the executive incurred a separation from service from the Company (as defined therein).

As of September 30, 2025, the benefit obligation related to the Retirement Plan was $4.4 million (December 31, 2024 — $4.2 million) and is recorded on the Company’s Condensed Consolidated Balance Sheets within Accrued and Other Liabilities. As the Retirement Plan is fully vested, the benefit obligation is measured at the present value of the benefits expected to be paid in the future

with the accretion of interest recognized in the Condensed Consolidated Statements of Operations within Retirement Benefits Non-Service Expense.

The Retirement Plan is funded by an investment in company-owned life insurance (“COLI”), which is recorded at its fair value on the Company’s Condensed Consolidated Balance Sheets within Prepaid Expenses. As of September 30, 2025, fair value of the COLI asset was $3.7 million (December 31, 2024 — $3.6 million). Gains and losses resulting from changes in the cash surrender value of the COLI asset are recognized in the Condensed Consolidated Statements of Operations within Realized and Unrealized Investment Gains.