Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about property, plant and equipment [abstract]

NOTE 7. PROPERTY, PLANT AND EQUIPMENT


	2023			2022
Cost	$	6,918,765		$	6,906,771
Accumulated depreciation		(4,580,677	)		(4,603,433	)
	$	2,338,088		$	2,303,338
Rig equipment		2,094,510			2,083,446
Rental equipment		16,066			15,977
Other equipment		9,236			11,465
Vehicles		2,333			3,380
Buildings		45,827			38,949
Assets under construction		126,872			117,535
Land		43,244			32,586
	$	2,338,088		$	2,303,338

Cost


	Rig Equipment			Rental Equipment			Other Equipment			Vehicles			Buildings			Assets Under Construction			Land			Total
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
Additions		24,158			102			151			—			612			199,937			—			224,960
Acquisitions		118,965			—			1,500			500			8,960			—			11,040			140,965
Disposals		(127,979	)		—			(9,681	)		(3,058	)		(214	)		(39	)		(10	)		(140,981	)
Reclassifications		172,300			—			6,038			—			2,038			(180,376	)		—			—
Asset decommissioning		(78,367	)		—			—			—			—			—			—			(78,367	)
Foreign exchange		(119,329	)		(75	)		(2,988	)		(748	)		(886	)		(10,185	)		(372	)		(134,583	)
Balance, December 31, 2023	$	6,324,210		$	96,481		$	170,429		$	32,696		$	124,833		$	126,872		$	43,244		$	6,918,765

Accumulated Depreciation


	Rig Equipment			Rental Equipment			Other Equipment			Vehicles			Buildings			Assets Under Construction		Land		Total
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
Depreciation expense		268,532			12			9,070			924			4,237			—		—		282,775
Disposals		(122,823	)		—			(9,681	)		(2,788	)		(133	)		—		—		(135,425	)
Asset decommissioning		(68,775	)		—			—			—			—			—		—		(68,775	)
Foreign exchange		(98,250	)		(74	)		(2,140	)		(395	)		(472	)		—		—		(101,331	)
Balance, December 31, 2023	$	4,229,700		$	80,415		$	161,193		$	30,363		$	79,006		$	—	$	—	$	4,580,677

(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, 2023, 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 2023, Precision purchased $225 million (2022 – $184 million) of property, plant and equipment and completed nil (2022 – $2 million) non-cash equipment swaps resulting in total asset additions of $225 million (2022 – $187 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 $24 million (2022 – $30 million).

(d) Asset Decommissioning

In 2023, the Corporation incurred a $10 million (2022 – nil) loss on asset decommissioning relating to certain drilling and ancillary equipment, contained within the Contract Drilling Services segment, that no longer met the Corporation's High Performance technology standards.