Impairments	3 Months Ended
Mar. 31, 2020
Asset Impairment Charges [Abstract]
Impairments	12. IMPAIRMENTS During the three months ended March 31, 2020 the novel coronavirus disease 2019 (“COVID-19”) spread across the globe and resulted in government mandated shut-downs, home sheltering and social distancing efforts to mitigate the spread of the virus. The COVID-19 mitigation actions also caused a sharp decrease in the consumption and demand for crude-oil, and led to a sharp decrease in current and projected crude oil prices. These events have resulted in sharp decreases to the valuation of companies associated with the energy industry, including Core Laboratories. As a result, we determined that it was more likely than not that the fair value of our reporting units was less than their carrying value, which triggered the Company to perform an updated impairment assessment as of March 31, 2020. We performed an impairment test in accordance with ASC Topic 360, Impairment or Disposal of Long-Lived Assets and ASC Topic 350, Intangibles-Goodwill and Other, on our indefinite-lived and long-lived assets related to asset groups, and our reporting units. As of March 31, 2020, we have two reporting units that are the same as our two reportable segments, with goodwill balances aggregating $213.4 million. We performed a detailed quantitative impairment assessment of our reporting units. We determined that the fair value of one of the reporting units, our Production Enhancement segment representing approximately $114.0 million of the goodwill, was less than the carrying value. We determined that the Reservoir Description reporting unit’s fair value is above the carrying value, which represented $99.4 million of goodwill. As the result of this assessment, we concluded that the goodwill associated with our Production Enhancement segment was fully impaired, resulting in a $114.0 million goodwill impairment charge. We applied the income approach to estimate the fair value of the reporting unit. The income approach estimates the fair value by discounting each reporting unit’s estimated future cash flows using the company estimate of the discount rate, or expected return, that a market participant would have required as of the valuation date. Some of the significant assumptions in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. These estimates are based on assumptions we believed to be reasonable, however, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, actual result may differ from those used in our valuation which could result in additional impairment charges in the future. The discount rates utilized to value the reporting units were approximately 10.3% and 15.1%, depending on the risk and uncertainty inherent in the respective reporting unit. As of March 31, 2020, we identified a triggering event for one of the asset groups under the reporting unit, Production Enhancement. The estimated fair value, based on applying the income approach model, of one of the asset groups was determined to be below their carrying value. As a result, we recorded a charge of $8.2 million to impair the intangible assets relating to the business acquisition of Guardian Technology in 2018. This impairment charge was associated with our Production Enhancement segment.

Impairments

3 Months Ended

Mar. 31, 2020

12. IMPAIRMENTS

During the three months ended March 31, 2020 the novel coronavirus disease 2019 (“COVID-19”) spread across the globe and resulted in government mandated shut-downs, home sheltering and social distancing efforts to mitigate the spread of the virus. The COVID-19 mitigation actions also caused a sharp decrease in the consumption and demand for crude-oil, and led to

a sharp decrease in current and projected crude oil prices. These events have resulted in sharp decreases to the valuation of companies associated with the energy industry, including Core Laboratories. As a result, we determined that it was more likely than not that the fair value of our reporting units was less than their carrying value, which triggered the Company to perform an updated impairment assessment as of March 31, 2020. We performed an impairment test in accordance with ASC Topic 360, Impairment or Disposal of Long-Lived Assets and ASC Topic 350, Intangibles-Goodwill and Other, on our indefinite-lived and long-lived assets related to asset groups, and our reporting units.

As of March 31, 2020, we have two reporting units that are the same as our two reportable segments, with goodwill balances aggregating $213.4 million. We performed a detailed quantitative impairment assessment of our reporting units. We determined that the fair value of one of the reporting units, our Production Enhancement segment representing approximately $114.0 million of the goodwill, was less than the carrying value. We determined that the Reservoir Description reporting unit’s fair value is above the carrying value, which represented $99.4 million of goodwill. As the result of this assessment, we concluded that the goodwill associated with our Production Enhancement segment was fully impaired, resulting in a $114.0 million goodwill impairment charge.

We applied the income approach to estimate the fair value of the reporting unit. The income approach estimates the fair value by discounting each reporting unit’s estimated future cash flows using the company estimate of the discount rate, or expected return, that a market participant would have required as of the valuation date.

Some of the significant assumptions in the income approach include the estimated future net annual cash flows for each reporting unit and the discount rate. These estimates are based on assumptions we believed to be reasonable, however, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, actual result may differ from those used in our valuation which could result in additional impairment charges in the future. The discount rates utilized to value the reporting units were approximately 10.3% and 15.1%, depending on the risk and uncertainty inherent in the respective reporting unit.

As of March 31, 2020, we identified a triggering event for one of the asset groups under the reporting unit, Production Enhancement. The estimated fair value, based on applying the income approach model, of one of the asset groups was determined to be below their carrying value. As a result, we recorded a charge of $8.2 million to impair the intangible assets relating to the business acquisition of Guardian Technology in 2018. This impairment charge was associated with our Production Enhancement segment.