
	2022			2021
Cost	$	6,906,771		$	6,503,721
Accumulated depreciation		(4,603,433	)		(4,245,330	)
	$	2,303,338		$	2,258,391
Rig equipment		2,083,446			2,074,185
Rental equipment		15,977			20,597
Other equipment		11,465			17,088
Vehicles		3,380			3,204
Buildings		38,949			44,009
Assets under construction		117,535			67,884
Land		32,586			31,424
	$	2,303,338		$	2,258,391

Cost


	Rig Equipment			Rental Equipment			Other Equipment			Vehicles			Buildings			Assets Under Construction			Land			Total
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	)		—			—
Foreign exchange		(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
Additions		63,058			587			517			—			141			122,271			—			186,574
Acquisitions		32,796			—			—			900			1,457			—			2,347			37,500
Disposals		(71,912	)		(7,538	)		(8,358	)		(873	)		(9,461	)		2			(2,187	)		(100,327	)
Reclassifications		74,148			—			188			—			—			(74,336	)		—			—
Foreign exchange		268,056			224			4,345			1,295			2,667			1,714			1,002			279,303
Balance, December 31, 2022	$	6,334,462		$	96,454		$	175,409		$	36,002		$	114,323		$	117,535		$	32,586		$	6,906,771

Accumulated Depreciation


	Rig Equipment			Rental Equipment			Other Equipment			Vehicles			Buildings			Assets Under Construction		Land		Total
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	)
Foreign exchange		(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
Depreciation expense		250,885			5,196			6,894			875			4,252			—		—		268,102
Disposals		(66,452	)		(7,522	)		(8,357	)		(873	)		(5,793	)		—		—		(88,997	)
Foreign exchange		172,452			219			3,778			1,144			1,405			—		—		178,998
Balance, December 31, 2022		$ 4,251,016		$	80,477		$	163,944		$	32,622		$	75,374		$	—	$	—	$	4,603,433

(a) Impairment

Precision reviews the carrying value of its long-lived assets for indications of impairment at the end of each reporting period. At December 31, 2022, 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 Additions

In 2022, Precision purchased $184 million (2021 – $76 million) of property, plant and equipment and completed $2 million (2021 – nil)

non-cash

equipment swaps resulting in total asset additions of $187 million (2021 – $76 million).

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 $30 million (2021 – $9 million).

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

Cathedral

), along with $3 million of cash for a purchase price of $6 million, resulting in a gain on disposal of $1 million. 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. 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. For the year ended December 31, 2022, Precision recognized a gain on investments and other assets of $12 million (2021 – $0.4 million loss), pertaining primarily to the revaluation of the Cathedral common shares and warrants.