XML 86 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

Property, Plant and Equipment | 12 Months Ended
--- | ---
Dec. 31, 2020
Disclosure Of Property Plant And Equipment [Abstract] |
Property, Plant and Equipment | NOTE 7. PROPERTY, PLANT AND EQUIPMENT
|  | 2020 |  |  | 2019 |
Cost |  | $ | 6,563,206 |  |  | $ | 6,670,979 |
Accumulated depreciation |  |  | (4,090,523 | ) |  |  | (3,921,516 | )
|  | $ | 2,472,683 |  |  | $ | 2,749,463 |
Rig equipment |  |  | 2,269,794 |  |  |  | 2,510,505 |
Rental equipment |  |  | 27,359 |  |  |  | 34,437 |
Other equipment |  |  | 27,318 |  |  |  | 38,604 |
Vehicles |  |  | 4,978 |  |  |  | 7,796 |
Buildings |  |  | 49,451 |  |  |  | 56,834 |
Assets under construction |  |  | 60,572 |  |  |  | 67,740 |
Land |  |  | 33,211 |  |  |  | 33,547 |
|  | $ | 2,472,683 |  |  | $ | 2,749,463 |
Cost
|  | Rig Equipment |  |  | Rental Equipment |  |  | Other Equipment |  |  | Vehicles |  |  | Buildings |  |  | Assets Under Construction |  |  | Land |  |  | Total |
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 |
Additions |  |  | 10,375 |  |  |  | — |  |  |  | 350 |  |  |  | — |  |  |  | — |  |  |  | 50,810 |  |  |  | — |  |  |  | 61,535 |
Disposals |  |  | (78,028 | ) |  |  | (4,664 | ) |  |  | (3,990 | ) |  |  | (2,789 | ) |  |  | (3,053 | ) |  |  | — |  |  |  | — |  |  |  | (92,524 | )
Reclassifications |  |  | 55,322 |  |  |  | — |  |  |  | 521 |  |  |  | — |  |  |  | — |  |  |  | (55,843 | ) |  |  | — |  |  |  | — |
Effect of foreign currency exchange differences |  |  | (71,285 | ) |  |  | (619 | ) |  |  | (1,196 | ) |  |  | (367 | ) |  |  | (846 | ) |  |  | (2,135 | ) |  |  | (336 | ) |  |  | (76,784 | )
Balance, December 31, 2020 |  | $ | 6,025,767 |  |  | $ | 105,024 |  |  | $ | 181,004 |  |  | $ | 35,350 |  |  | $ | 122,278 |  |  | $ | 60,572 |  |  | $ | 33,211 |  |  | $ | 6,563,206 |
Accumulated Depreciation
|  | Rig Equipment |  |  | Rental Equipment |  |  | Other Equipment |  |  | Vehicles |  |  | Buildings |  |  | Assets Under Construction |  |  | Land |  |  | Total |
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 |
Depreciation expense |  |  | 277,799 |  |  |  | 7,044 |  |  |  | 12,013 |  |  |  | 2,790 |  |  |  | 5,288 |  |  |  | — |  |  |  | — |  |  |  | 304,934 |
Disposals |  |  | (73,354 | ) |  |  | (4,631 | ) |  |  | (3,990 | ) |  |  | (2,782 | ) |  |  | (1,319 | ) |  |  | — |  |  |  | — |  |  |  | (86,076 | )
Effect of foreign currency exchange differences |  |  | (47,350 | ) |  |  | (618 | ) |  |  | (1,052 | ) |  |  | (346 | ) |  |  | (485 | ) |  |  | — |  |  |  | — |  |  |  | (49,851 | )
Balance, December 31, 2020 |  | $ | 3,755,973 |  |  | $ | 77,665 |  |  | $ | 153,686 |  |  | $ | 30,372 |  |  | $ | 72,827 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,090,523 |
(a) Impairment Test Precision reviews the carrying value of its long-lived assets for indications of impairment at the end of each reporting period. Due to the global economic slowdown and significant commodity price reductions in the first quarter of 2020, the Corporation identified indications of impairment in each of its CGU at March 31, 2020. Accordingly, the Corporation tested all CGUs for impairment as at March 31, 2020. In performing its impairment tests, the Corporation used a discounted cash flow model. Projected cash flows covered a five-year period and were based on future expected outcomes taking into account existing term contracts, past experience and management’s expectation of future market conditions. The primary source of cash flow information was the Corporation’s budget and strategic plan, developed based on benchmark commodity prices and industry supply-demand fundamentals. At March 31, 2020, the Corporation completed impairment tests for each CGU and no impairment charges were identified. At December 31, 2020, Precision reviewed each of its cash-generating units and did not identify indications of impairment and therefore, did not test its CGUs for impairment. (b) Asset Disposals Through the completion of normal course business operations, the Corporation sold used assets incurring gains or losses on disposal resulting in a gain on asset disposal of $12 million. For the period ended December 31, 2019, Precision recognized a $51 million gain on asset disposal which was mainly comprised by the following transactions. Mexico In 2019, Precision sold 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 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. (c) Decommissioned Drilling Rigs In 2019, Precision incurred a $20 million 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. (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 was made prospectively.

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfPropertyPlantAndEquipmentAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for property, plant and equipment. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 16 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=16&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS16_g73-79_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfPropertyPlantAndEquipmentExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration