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Property, Plant and Equipment | 12 Months Ended
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Dec. 31, 2019
Disclosure Of Property Plant And Equipment [Abstract] |
Property, Plant and Equipment | NOTE 7. PROPERTY, PLANT AND EQUIPMENT
|  | 2019 |  |  | 2018 |
Cost |  | $ | 6,670,979 |  |  | $ | 6,937,062 |
Accumulated depreciation |  |  | (3,921,516 | ) |  |  | (3,898,450 | )
|  | $ | 2,749,463 |  |  | $ | 3,038,612 |
Rig equipment |  |  | 2,510,505 |  |  |  | 2,745,172 |
Rental equipment |  |  | 34,437 |  |  |  | 43,992 |
Other equipment |  |  | 38,604 |  |  |  | 52,195 |
Vehicles |  |  | 7,796 |  |  |  | 12,702 |
Buildings |  |  | 56,834 |  |  |  | 65,561 |
Assets under construction |  |  | 67,740 |  |  |  | 84,561 |
Land |  |  | 33,547 |  |  |  | 34,429 |
|  | $ | 2,749,463 |  |  | $ | 3,038,612 |
Cost
|  | Rig Equipment |  |  | Rental Equipment |  |  | Other Equipment |  |  | Vehicles |  |  | Buildings |  |  | Assets Under Construction |  |  | Land |  |  | Total |
Balance, December 31, 2017 |  | $ | 6,034,166 |  |  | $ | 148,011 |  |  | $ | 244,950 |  |  | $ | 43,201 |  |  | $ | 127,385 |  |  | $ | 102,035 |  |  | $ | 33,886 |  |  | $ | 6,733,634 |
Additions |  |  | 7,013 |  |  |  | — |  |  |  | 347 |  |  |  | — |  |  |  | 569 |  |  |  | 106,647 |  |  |  | — |  |  |  | 114,576 |
Disposals |  |  | (32,153 | ) |  |  | (18,227 | ) |  |  | (59,865 | ) |  |  | (228 | ) |  |  | (3,663 | ) |  |  | — |  |  |  | (893 | ) |  |  | (115,029 | )
Reclassifications |  |  | 127,668 |  |  |  | — |  |  |  | 507 |  |  |  | — |  |  |  | — |  |  |  | (128,175 | ) |  |  | — |  |  |  | — |
Reclassification to assets held for sale |  |  | (135,398 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (135,398 | )
Effect of foreign currency exchange differences |  |  | 321,240 |  |  |  | 679 |  |  |  | 5,351 |  |  |  | 2,483 |  |  |  | 4,036 |  |  |  | 4,054 |  |  |  | 1,436 |  |  |  | 339,279 |
Balance, December 31, 2018 |  |  | 6,322,536 |  |  |  | 130,463 |  |  |  | 191,290 |  |  |  | 45,456 |  |  |  | 128,327 |  |  |  | 84,561 |  |  |  | 34,429 |  |  |  | 6,937,062 |
Additions |  |  | 18,436 |  |  |  | — |  |  |  | 976 |  |  |  | 224 |  |  |  | 415 |  |  |  | 139,835 |  |  |  | — |  |  |  | 159,886 |
Disposals |  |  | (69,945 | ) |  |  | (19,982 | ) |  |  | (4,708 | ) |  |  | (6,014 | ) |  |  | (58 | ) |  |  | — |  |  |  | — |  |  |  | (100,707 | )
Reclassifications |  |  | 150,674 |  |  |  | — |  |  |  | 1,197 |  |  |  | — |  |  |  | — |  |  |  | (151,871 | ) |  |  | — |  |  |  | — |
Asset decommissioning |  |  | (4,364 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,364 | )
Effect of foreign currency exchange differences |  |  | (307,954 | ) |  |  | (174 | ) |  |  | (3,436 | ) |  |  | (1,160 | ) |  |  | (2,507 | ) |  |  | (4,785 | ) |  |  | (882 | ) |  |  | (320,898 | )
Balance, December 31, 2019 |  | $ | 6,109,383 |  |  | $ | 110,307 |  |  | $ | 185,319 |  |  | $ | 38,506 |  |  | $ | 126,177 |  |  | $ | 67,740 |  |  | $ | 33,547 |  |  | $ | 6,670,979 |
Accumulated Depreciation
|  | Rig Equipment |  |  | Rental Equipment |  |  | Other Equipment |  |  | Vehicles |  |  | Buildings |  |  | Assets Under Construction |  |  | Land |  |  | Total |
Balance, December 31, 2017 |  | $ | 3,210,384 |  |  | $ | 87,832 |  |  | $ | 178,390 |  |  | $ | 26,921 |  |  | $ | 56,283 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,559,810 |
Depreciation expense |  |  | 335,215 |  |  |  | 9,418 |  |  |  | 15,993 |  |  |  | 4,820 |  |  |  | 8,126 |  |  |  | — |  |  |  | — |  |  |  | 373,572 |
Disposals |  |  | (28,399 | ) |  |  | (11,249 | ) |  |  | (59,857 | ) |  |  | (220 | ) |  |  | (3,161 | ) |  |  | — |  |  |  | — |  |  |  | (102,886 | )
Reclassification to assets held for sale |  |  | (115,740 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (115,740 | )
Effect of foreign currency exchange differences |  |  | 175,904 |  |  |  | 470 |  |  |  | 4,569 |  |  |  | 1,233 |  |  |  | 1,518 |  |  |  | — |  |  |  | — |  |  |  | 183,694 |
Balance, December 31, 2018 |  |  | 3,577,364 |  |  |  | 86,471 |  |  |  | 139,095 |  |  |  | 32,754 |  |  |  | 62,766 |  |  |  | — |  |  |  | — |  |  |  | 3,898,450 |
Depreciation expense |  |  | 289,056 |  |  |  | 7,473 |  |  |  | 13,023 |  |  |  | 3,521 |  |  |  | 7,663 |  |  |  | — |  |  |  | — |  |  |  | 320,736 |
Disposals |  |  | (33,929 | ) |  |  | (17,933 | ) |  |  | (3,274 | ) |  |  | (4,768 | ) |  |  | (58 | ) |  |  | — |  |  |  | — |  |  |  | (59,962 | )
Asset decommissioning |  |  | (3,518 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (3,518 | )
Reversal of impairment of property, plant and equipment |  |  | (5,810 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5,810 | )
Effect of foreign currency exchange differences |  |  | (224,285 | ) |  |  | (141 | ) |  |  | (2,129 | ) |  |  | (797 | ) |  |  | (1,028 | ) |  |  | — |  |  |  | — |  |  |  | (228,380 | )
Balance, December 31, 2019 |  | $ | 3,598,878 |  |  | $ | 75,870 |  |  | $ | 146,715 |  |  | $ | 30,710 |  |  | $ | 69,343 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,921,516 |
| (a) | Asset Disposals
In addition to those items below, through the completion of normal course business operations, the Corporation sold used assets incurring gains or losses on disposal. Mexico In the second quarter of 2019, Precision concluded the sale of its Mexico-based drilling rigs and ancillary equipment, contained within its Contract Drilling Services segment, for total proceeds of US$48 million. Precision recognized a gain on asset disposal of US$24 million and reversed US$4 million of previous impairment charges. Snubbing In the second quarter of 2019, Precision disposed of certain snubbing units and related equipment, contained within the Completion and Production Services segment, for proceeds of $8 million resulting in a gain on asset disposal of $3 million.
| (b) | Impairment Test
Precision reviews the carrying value of its long-lived assets at each reporting period for indications of impairment. The Corporation did not identify an indication of impairment within the Corporation’s CGUs as at December 31, 2019. Accordingly, no impairment tests were performed. For the year ended December 31, 2018, impairment charges of $208 million were recorded against goodwill. Refer to Note 9 for discussion of impairment tests performed.
| (c) | Decommissioned Drilling Rigs
In 2019, the Corporation incurred a $20 million (2018 – nil) loss on the decommissioning of certain drilling and ancillary equipment, contained within the Contract Drilling Services segment, that no longer met the Corporation’s High Performance technology standards. The decommissioning charge included those drilling rigs that were previously held for sale.
| (d) | Change in Rig Components
In the fourth quarter of 2019, Precision performed its annual review of estimated useful lives, residual values and methods and components of depreciation of property, plant and equipment. Due to changes in the timing, nature and complexity of certain rig recertifications, the Corporation determined the associated costs represent a separate component of property, plant and equipment. This change has been recognized prospectively and is expected to increase the Corporation’s 2020 depreciation expense by approximately $3 million.

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