Leases

12 Months Ended

Dec. 31, 2022

(7) Leases

We determine if an arrangement is a lease at inception. All of our leases are operating leases and are included in ROU assets, accounts payable and operating lease liabilities in the consolidated balance sheet.

ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the 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.

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
	Year Ended December 31, 2022		For the Period February 3, 2021 through December 31, 2021		For the Period January 1, 2021 through February 2, 2021		For the Twelve Months Ended December 31, 2020
Long-term fixed lease expense	$	9,761	$	12,579	$	1,824	$	18,454
Long-term variable lease expense		2		-		19		10
Short-term lease expense		22,705		10,165		789		4,322
Total operating lease expense	$	32,468	$	22,744	$	2,632	$	22,786

Operating leases were as follows (in thousands):



	December 31, 2022		December 31, 2021
Operating lease ROU assets	$	18,797	$	25,154

Accrued expenses	$	4,033	$	5,650
Operating lease liabilities		14,634		19,193
Total operating lease liabilities	$	18,667	$	24,843

Weighted average remaining lease term	18 years		15 years
Weighted average discount rate	5.33%		5.34%

Cash paid for operating leases	$	7,395	$	13,591
ROU assets obtained in exchange for lease obligations		5,069		2,820

During the Current Year, cash paid for operating leases totaled $7.4 million and ROU assets obtained in exchange for lease obligation were $5.1 million.

Maturities of operating lease liabilities at December 31, 2022 are as follows (in thousands):


2023	$	5,805
2024		4,301
2025		3,284
2026		1,573
2027		588
Thereafter		14,747
Total lease payments		30,298
Less imputed interest		(11,631	)
Total	$	18,667