Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

(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
	For the Three Months Ended September 30, 2021		For the Three Months Ended September 30, 2020
Long-term fixed lease expense	$	3,654	$	4,124
Short-term lease expense		2,715		865
Total operating lease expense	$	6,369	$	4,989

	Successor		Predecessor
	For the Period February 3, 2021 through September 30, 2021		For the Period January 1, 2021 through February 2, 2021		For the Nine Months Ended September 30, 2020
Long-term fixed lease expense	$	9,413	$	1,824	$	14,379
Long-term variable lease expense		-		19		7
Short-term lease expense		6,061		789		2,740
Total operating lease expense	$	15,474	$	2,632	$	17,126

Supplemental Balance Sheet and Cash Flows Information

Operating leases were as follows (in thousands):

	Successor		Predecessor
	September 30, 2021		December 31, 2020
Operating lease ROU assets	$	28,871	$	33,317
Accrued expenses	$	8,513	$	10,698
Operating lease liabilities		20,608		29,464
Total operating lease liabilities	$	29,121	$	40,162
Weighted-average remaining lease term	13 years		9 years
Weighted-average discount rate	5.34%		6.35%

	Successor		Predecessor
	For the Period February 3, 2021 through September 30, 2021		For the Period January 1, 2021 through February 2, 2021		For the Nine Months Ended September 30, 2020
Cash paid for operating leases	$	11,250	$	1,575	$	18,352
ROU assets obtained in exchange for lease obligations	$	2,807	$	453	$	3,261

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

Remainder of 2021	$	673
2022		7,150
2023		4,949
2024		3,300
2025		2,504
Thereafter		18,246
Total lease payments		36,822
Less imputed interest		(7,701	)
Total	$	29,121