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Leases
 12 Months Ended
Dec. 31, 2021
Disclosure Of Leases [Abstract]  
Leases
NOTE 12.
LEASES
(a) As a lessee
Precision recognizes
right-of-use
assets primarily from its leases of real estate and vehicles and equipment.
 
 
      Real Estate      
 Vehicles and
Equipment		  
 		     Total  
Balance,
December 31, 2019
    $             54,026     $                 12,116     $             66,142  
Additions
      136       3,031       3,167  
Derecognition
      —       (2,597 )      (2,597 ) 
Depreciation
      (3,900 )      (3,517 )      (7,417 ) 
Lease remeasurements
      (6,233 )      2,602       (3,631 ) 
Effect of foreign currency exchange differences
      (340 )      (156 )      (496 ) 
Balance, December 31, 2020
    $ 43,689     $ 11,479     $ 55,168  
Additions
      514       3,029       3,543  
Derecognition
      —       (480 )      (480 ) 
Depreciation
      (3,566 )      (3,009 )      (6,575 ) 
Effect of foreign currency exchange differences
      (174 )      (42 )      (216 ) 
Balance, December 31, 2021
   
$
40,463
 
  
$
10,977
 
  
$
51,440
 
Precision’s real estate lease contracts often contain renewal options which may impact the determination of the lease term for purposes of calculating the lease obligation. If it is reasonably certain that a renewal option will be exercised, the renewal period is included in the lease term. When entering a lease, Precision assesses whether it is reasonably certain renewal options will be
 
exercised. Reasonable certainty is established if all relevant facts and circumstances indicate an economic incentive to exercise the renewal option. For the majority of its real estate leases, Precision is reasonably certain it will exercise its renewal option. Accordingly, the renewal period has been included in the lease term used to calculate the lease obligation.
For the period ended December 31, 2021, Precision had total cash outflows of $9 million (2020 – $9 million) in relation to its lease obligations.
The Corporation has commitments under various lease agreements, primarily for real estate and vehicles and equipment. Terms of Precision’s real estate leases run for a period of
one
to 10
years while vehicle and equipment leases are typically for terms of between
 three and four years. Expected
non-cancellable
undiscounted operating lease payments are as follows:
 
     
2021
      2020  
Less than one year
   
$
10,782
 
    $ 10,960    
One to five years
   
 
29,327
 
      29,630  
More than five years
   
 
2,391
 
      6,590  
 
   
$
                    42,500
 
    $                     47,180  
(b) As a lessor
Precision leases its rig equipment under long-term drilling contracts with terms ranging from one to five years. At December 31, 2021, the net book value of the underlying rig equipment subject to long-term drilling contracts was $503 million (2020 – $477 million).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received subsequent to December 31, 2021.
 
Less than one year
    $ 198,188    
One to five years
      61,860  
 
   
$
                    260,048