Leases

12 Months Ended

Dec. 31, 2023

(8) 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 consolidated balance sheet per ASC 842.

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. We have elected not to recognize ROU assets and lease liabilities that arise from short-term leases for any class of underlying asset,

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
	For the Year Ended December 31, 2023		For the 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
Long-term fixed lease expense	$	8,477	$	9,761	$	12,579	$	1,824
Long-term variable lease expense		-		2		-		19
Short-term lease expense		8,771		22,705		10,165		789
Total operating lease expense	$	17,248	$	32,468	$	22,744	$	2,632

Operating leases for the Current Year were as follows (dollars in thousands):


	December 31, 2023
Weighted average remaining lease term	19 years
Weighted average discount rate		5.33	%

Cash paid for operating leases	$	6,828
ROU assets obtained in exchange for lease obligations		4,621

Maturities of operating lease liabilities at December 31, 2023 are as follows (in thousands):


2024	$	6,998
2025		5,242
2026		2,467
2027		997
2028		832
Thereafter		14,909
Total lease payments		31,445
Less: imputed interest		(15,671	)
Total	$	15,774