Leases

6 Months Ended

Jun. 30, 2021

(11) Leases

Accounting Policy for Leases

We determine if an arrangement is a lease at inception. All of our leases are operating leases and are included in right-of-use (“ROU”) assets, accounts payable and operating lease liabilities in the condensed consolidated balance sheet.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease.

Overview

Our operating leases are primarily for real estate, machinery and equipment, and vehicles. The terms and conditions for these leases vary by the type of underlying asset. Total operating lease expense was as follows (in thousands):



	Successor		Predecessor
	Three Months Ended June 30, 2021		Three Months Ended June 30, 2020


Long-term fixed lease expense	$	3,779	$	4,624
Short-term lease expense		2,349		884
Total operating lease expense	$	6,128	$	5,508



	Successor		Predecessor
	For the Period February 3, 2021 through June 30, 2021		For the Period January 1, 2021 through February 2, 2021		For the Six Months Ended June 30, 2020
Long-term fixed lease expense	$	5,759	$	1,824	$	10,255
Long-term variable lease expense		-		19		-
Short-term lease expense		3,345		789		1,875
Total operating lease expense	$	9,104	$	2,632	$	12,130

Supplemental Balance Sheet and Cash Flows Information

Operating leases were as follows (in thousands):


	Successor		Predecessor
	June 30, 2021		December 31, 2020
Operating lease ROU assets	$	30,755	$	33,317

Accrued expenses	$	9,522	$	10,698
Operating lease liabilities		21,353		29,464
Total operating lease liabilities	$	30,875	$	40,162

Weighted-average remaining lease term		11 years		9 years
Weighted-average discount rate		5.34%		6.35%


	Successor		Predecessor
	For the Period February 3, 2021 through June 30, 2021		For the Period January 1, 2021 through February 2, 2021		For the Six Months Ended June 30, 2020
Cash paid for operating leases	$	7,614	$	1,575	$	13,494
ROU assets obtained in exchange for lease obligations	$	2,823	$	453	$	2,996

Maturities of operating lease liabilities at June 30, 2021 are as follows (in thousands):



Remainder of 2021	$	5,284
2022		9,180
2023		6,841
2024		4,403
2025		3,396
Thereafter		20,902
Total lease payments		50,006
Less imputed interest		(19,131)
Total	$	30,875