IMAX CORPIMAX
IMAX CORP Leases Disclosure
5. Lease Arrangements
IMAX Corporation as a Lessee
The Company’s operating lease arrangements principally involve office and warehouse space. Office equipment is generally purchased outright. Leases with an initial term of less than 12 months are not recorded on the Consolidated Balance Sheets and the related lease expense is recognized on a straight-line basis over the lease term. The Company has the ability to renew its leases through either extension options or mutual agreement. The incremental borrowing rate used in the calculation of the Company’s lease liabilities is based on the location of each leased property. None of the Company’s leases include options to purchase the leased
property. The depreciable lives of right-of-use assets and related 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 has a finance lease arrangement involving equipment used to facilitate the delivery of live events to certain IMAX locations. The lease arrangement includes an option for the Company to purchase the equipment at the end of the lease term that is reasonably certain to be exercised. The resulting right-of-use assets are being depreciated from the lease commencement dates over the useful life of the underlying equipment. The incremental borrowing rate used in the calculation of the lease liabilities is based on the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term.
For the years ended December 31, 2025, 2024, and 2023 the components of lease expense, which are primarily recorded within Selling, General and Administrative Expenses, were as follows:
| Years Ended December 31, | |||||||||||||||||
(In thousands of U.S. Dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating lease cost: | |||||||||||||||||
| Amortization of operating lease assets | $ | 2,499 | $ | 2,120 | $ | 2,677 | |||||||||||
| Interest on operating lease liabilities | 709 | 661 | 768 | ||||||||||||||
| Short-term and variable lease costs | 412 | 289 | 507 | ||||||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of finance lease assets | 398 | 398 | 398 | ||||||||||||||
| Interest on finance lease liabilities | — | 17 | 45 | ||||||||||||||
| Total lease cost | $ | 4,018 | $ | 3,485 | $ | 4,395 | |||||||||||
For the years ended December 31, 2025, 2024, and 2023, supplemental cash and non-cash information related to leases was as follows:
| Years Ended December 31, | |||||||||||||||||
(In thousands of U.S. Dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating leases | $ | 3,241 | $ | 3,068 | $ | 3,675 | |||||||||||
| Finance leases | — | 509 | 480 | ||||||||||||||
| Supplemental disclosure of noncash leasing activities: | |||||||||||||||||
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 1,787 | $ | 1,596 | $ | 972 | |||||||||||
| Right-of-use assets obtained in exchange for finance lease obligations | — | — | — | ||||||||||||||
As of December 31, 2025 and 2024, supplemental balance sheet information related to leases was as follows:
| December 31, | ||||||||||||||
(In thousands of U.S. Dollars) | 2025 | 2024 | ||||||||||||
| Assets: | Balance Sheet Location | |||||||||||||
Operating lease right-of-use assets | $ | 9,300 | $ | 10,019 | ||||||||||
Finance lease right-of-use assets | 624 | 1,022 | ||||||||||||
| Liabilities: | Balance Sheet Location | |||||||||||||
Operating lease liabilities | $ | 11,065 | $ | 11,861 | ||||||||||
Finance lease liabilities | — | — | ||||||||||||
As of December 31, 2025 and 2024, the weighted-average remaining lease term and weighted-average interest rate associated with the Company’s leases were as follows:
| December 31, | |||||||||||
(In thousands of U.S. Dollars) | 2025 | 2024 | |||||||||
Operating leases: | |||||||||||
Weighted-average remaining lease term (years) | 3.8 | 4.8 | |||||||||
Weighted-average discount rate | 5.87 | % | 5.87 | % | |||||||
Finance leases: | |||||||||||
Weighted-average remaining lease term (years) | 1.6 | 2.6 | |||||||||
Weighted-average discount rate | 6.00 | % | 6.00 | % | |||||||
As of December 31, 2025, the maturities of the Company’s operating lease liabilities were as follows:
(In thousands of U.S. Dollars) | |||||
| 2026 | $ | 3,327 | |||
| 2027 | 3,268 | ||||
| 2028 | 3,075 | ||||
| 2029 | 2,556 | ||||
| 2030 | 172 | ||||
| Thereafter | 6 | ||||
Total lease payments | $ | 12,404 | |||
Less: interest expense | (1,339) | ||||
Present value of lease liabilities | $ | 11,065 | |||
IMAX Corporation as a Lessor
The Company provides IMAX Systems to customers through long-term lease arrangements that for accounting purposes are classified as sales-type leases. Under these arrangements, in exchange for providing the IMAX System, the Company earns fixed upfront and ongoing consideration. 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 sales-type lease arrangements are described in “Summary of Significant Accounting Policies — Revenue Recognition” in Note 2. Under the Company’s sales-type 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. The Company’s sales-type 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 an 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 IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.
The Company also provides IMAX Systems to customers through JRSAs. Under the traditional form of these arrangements, in exchange for providing the IMAX System under a long-term lease, the Company earns rent based on a percentage of contingent box office receipts and, in some cases, concession revenues, rather than a fixed upfront fee or annual minimum payments.
Under certain other JRSAs, known as hybrid arrangements, the customer is responsible for making fixed upfront payments prior to the delivery and installation of the IMAX System.
Under JRSAs, 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 JRSAs are typically non-cancellable for 10 years or longer with renewal provisions. Title to the IMAX System under a JRSA generally does not transfer to the customer. The Company’s JRSAs 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 an extended warranty throughout the term. The customer is responsible for obtaining insurance coverage for the IMAX System commencing on the date specified in the arrangement’s shipping terms and ending on the date the IMAX System is returned to the Company.
The following lease payments are expected to be received by the Company for its sales-type leases and joint revenue sharing arrangements in each of the next five years and thereafter following the December 31, 2025 balance sheet date:
(In thousands of U.S. Dollars) | Sales-Type Leases | ||||
| 2026 | $ | 3,955 | |||
| 2027 | 3,533 | ||||
| 2028 | 3,418 | ||||
| 2029 | 3,418 | ||||
| 2030 | 3,405 | ||||
| Thereafter | 14,899 | ||||
Total | $ | 32,628 | |||
(Refer to Note 4 for additional information related to the net investment in leases related to the Company’s sales-type lease arrangements.)
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 24, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.