Leases Leases

12 Months Ended

Dec. 31, 2021

LEASES

We have operating leases for office space, facilities, equipment, employee housing and certain rig berthing facilities. For all asset classes, except office space, we account for the lease component and the non-lease component as a single lease component. Our leases have remaining lease terms of less than one year to nine years, some of which include options to extend.

We evaluate the carrying value of our right-of-use assets on a periodic basis to identify events or changes in circumstances, such as lease abandonment, that indicate that the carrying value of such right-of-use assets may be impaired.

The components of lease expense are as follows (in millions):


	Successor		Predecessor
	Eight Months Ended December 31, 2021		Four Months Ended April 30, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Long-term operating lease cost	$	12.9	$	9.1	$	23.3	$	29.5
Short-term operating lease cost	15.3		7.0		19.2		12.2
Sublease income	(0.3)		(0.1)		(2.3)		(2.4)
Total operating lease cost	$	27.9	$	16.0	$	40.2	$	39.3

Supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):


	Successor			Predecessor
	December 31, 2021			December 31, 2020
Operating lease right-of-use assets	$	20.5		$	35.8

Current lease liability	$	10.0		$	15.7
Long-term lease liability	12.5			21.6
Total operating lease liabilities	$	22.5		$	37.3

Weighted-average remaining lease term (in years)	4.8			4.3

Weighted-average discount rate (1)	7.27		%	8.24		%

(1)Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying leases.

During the eight months ended December 31, 2021 (Successor) and during the four months ended April 30, 2021 (Predecessor), cash paid for amounts included in the measurement of our operating lease liabilities were $11.7 million and $7.1 million, respectively. For the years ended December 31, 2020 and 2019 (Predecessor), cash paid for amounts included in the measurement of our operating lease liabilities were $23.5 million and $29.9 million, respectively.

Maturities of lease liabilities as of December 31, 2021 (Successor) were as follows (in millions):



2022	$	11.3
2023	3.1
2024	2.2
2025	2.0
2026	2.0
Thereafter	6.8
Total lease payments	$	27.4
Less imputed interest	(4.9)
Total	$	22.5

Predecessor

On October 28, 2020, the Bankruptcy Court approved the rejection of certain unexpired office leases and related subleases. The various lease rejections were effective as of September 30, 2020 and October 31, 2020. We recorded an estimated allowed claim of $4.4 million and recognized an expense in Reorganization items, net on our Consolidated Statements of Operations for the year ended December 31, 2020 (Predecessor). Also, during the year ended December 31, 2020 (Predecessor), in connection with the office lease rejections, we reduced our right-of-use asset by a total of $10.5 million and lease liability by a total of $20.4 million and recognized a net gain in Reorganization items of $9.8 million which includes the write off of associated leasehold improvements. Additionally, in connection with the lease rejections, during the year ended December 31, 2020 (Predecessor), we amended the terms of the lease for our corporate headquarters in Houston, Texas. The amendment reduced the associated right-of-use asset by $6.4 million and lease liability by $10.4 million and we recognized a net gain in Reorganization items of $1.7 million which includes the write-off of associated leasehold improvements during the year ended December 31, 2020 (Predecessor).

During the year ended December 31, 2019 (Predecessor), we recorded lease impairments of $5.6 million related to the impairment of the right-of-use assets associated with an office space and a leased yard facility that were abandoned due to the consolidation of certain corporate offices and leased facilities.