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Inventories
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Text Block [Abstract]    
Inventories
NOTE 3. INVENTORIES
Inventories consisted of the following:
 
    
June 30, 2022
      December 31, 2021  
Direct materials
   
$
71,620
 
    $ 83,943  
Repair and distribution parts
   
 
66,209
 
      54,156  
Work-in-progress
   
 
52,770
 
      31,298  
Equipment
   
 
3,186
 
      3,290  
    
 
 
     
 
 
  
Total inventories
   
$
193,785
 
    $ 172,687  
    
 
 
     
 
 
  
 
    
June 30, 2022
      December 31, 2021  
Work-in-progress
related to finance leases
   
$
44,234
 
    $ 36,169  
The amount of inventory and overhead costs recognized as an expense and included in COGS for the three and six months ended June 30, 2022 was $308.5 million and $577.9 million (June 30, 2021 – $153.4 million and $311.1 million). COGS is made up of direct materials, direct labour, depreciation on manufacturing assets, post-manufacturing expenses, and overhead. COGS also includes inventory write-downs pertaining to obsolescence and aging, together with recoveries of past write-downs upon disposition. The net change in inventory reserves charged to the interim condensed consolidated statements of earnings and included in COGS for the three and six months ended June 30, 2022 was $(0.1) million and $1.0 million (June 30, 2021 – $1.0 million and $2.6 million).
The costs related to the construction of rental assets determined to be finance leases are accounted for as
work-in-progress
related to finance leases. Once the project is completed and enters service it will be reclassified to COGS. During the three and six months ended June 30, 2022 the Company spent $11.7 million and $40.9 million (June 30, 2021 – $14.3 million and $14.3 million) related to finance leases.
NOTE 8. INVENTORIES
Inventories consists of the following:
 
December 31,
   
2021
      2020  
Direct materials
   
$
83,943
 
    $ 119,342  
Repair and distribution parts
   
 
54,156
 
      52,125  
Work-in-progress
   
 
31,298
 
      25,185  
Equipment
   
 
3,290
 
      15,599  
    
 
 
     
 
 
  
Total inventories
   
$
172,687
 
    $ 212,251  
    
 
 
     
 
 
  
     
December 31,
   
2021
      2020  
Work-in-progress
related to finance leases
   
$
36,169
 
    $ —    
The amount of inventory and overhead costs recognized as an expense and included in cost of goods
sold
during 2021 was $757.9 million (December 31, 2020 – $937.7 million; December 31, 2019 – $1,631.2 million). Cost of goods sold is made up of direct materials, direct labour, depreciation on manufacturing assets, post-manufacturing expenses, and overhead. Cost of goods sold also includes inventory write-downs pertaining to obsolesce
nce

and aging
 
together with recoveries of past write-downs upon disposition. The net amount of inventory write-downs charged to the consolidated statements of earnings and included in cost of goods sold for the year ended December 
31
,
2021
was $
6.1
 million (
December 31, 2020
–
$
5.4
 million; December 
31
,
2019
–
$
5.9
million).
The costs related to the construction of rental assets determined to be finance leases are accounted for as
work-in-progress
related to finance leases. Once the project is completed and enters service it will be reclassified to cost of goods sold. During the year ended December 31, 2021 the Company spent $36.2 million (December 31, 2020 – nil) related to finance
leases.