Cost


	Rig Equipment			Rental Equipment			Other Equipment			Vehicles			Buildings			Assets Under Construction			Land			Total
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
Additions		15,288			—			254			—			—			60,399			—			75,941
Disposals		(100,004	)		(1,822	)		(2,300	)		(543	)		(2,454	)		—			(1,674	)		(108,797	)
Reclassifications		47,080			—			188			—			—			(47,268	)		—			—
Effect of foreign currency exchange differences		(19,815	)		(21	)		(429	)		(127	)		(305	)		(5,819	)		(113	)		(26,629	)
Balance, December 31, 2021	$	5,968,316		$	103,181		$	178,717		$	34,680		$	119,519		$	67,884		$	31,424		$	6,503,721

Accumulated Depreciation


	Rig Equipment			Rental Equipment			Other Equipment			Vehicles			Buildings			Assets Under Construction		Land		Total
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
Depreciation expense		248,564			6,741			10,410			1,739			4,582			—		—		272,036
Disposals		(95,977	)		(1,804	)		(2,194	)		(543	)		(1,769	)		—		—		(102,287	)
Effect of foreign currency exchange differences		(14,429	)		(18	)		(273	)		(92	)		(130	)		—		—		(14,942	)
Balance, December 31, 2021	$	3,894,131		$	82,584		$	161,629		$	31,476		$	75,510		$	—	$	—	$	4,245,330

(a)	Impairment Test

Precision reviews the carrying value of its long-lived assets for indications of impairment at the end of each reporting period. At December 31, 2021, Precision reviewed each of its cash-generating units and did not identify indications of impairment, or reversal 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 net gain on asset disposal of

$9 million (2020

–

$12 million).

During 2021, Precision sold its directional drilling business to Cathedral Energy Services Ltd. (

Cathedral

), along with

$3 million of cash to support Cathedral’s further growth and expansion, for a purchase price of $6 million, resulting in a gain on disposal of $1 million. The directional drilling business was previously contained within the Contract Drilling Services segment.

The purchase price was satisfied through the issuance of 13,400,000 Cathedral common shares, along with warrants to purchase an additional 2,000,000 Cathedral common shares at a price of $0.60 per common share within a

two-year

period. In addition to the statutory hold period, the parties agreed to resale restrictions on the common share consideration that limits the timing and quantities of common shares Precision can sell over a

two-year

period. The Cathedral common shares and share purchase warrants held by Precision are presented as long-term investments and other assets and will be revalued at each reporting period using Level I and II inputs, respectively.