Impairments

The following table summarizes impairment charges of proved properties from continuing operations. Additionally, it presents the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition.



	2018				2017				2016
(In millions)	Fair Value		Impairment		Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	113	$	75	$	179	$	229	$	15	$	67


•	2018 - Impairments in our International and United States segments of $75 million, to a fair value of $113 million, were largely the result of anticipated sales for certain non-core proved properties. The related fair value measurement utilized the market approach, based upon anticipated sales proceeds less costs to sell which resulted in a Level 2 classification.

•

2017 - Impairments in our International segment were primarily a result of lower forecasted long-term commodity prices and the anticipated sales of certain non-core proved properties of $136 million, to an aggregate fair value of $103 million. These fair values were measured using the market approach, based upon either anticipated sales proceeds less costs to sell or a market comparable sales price per boe which resulted in a Level 2 classification.

Impairments in our United States segment were $89 million, to an aggregate fair value of $76 million, and related to Gulf of Mexico and certain conventional Oklahoma assets primarily as a result of lower forecasted long-term commodity prices. The fair values were measured using an income approach based upon internal estimates of future production levels, prices and discount rate. Inputs to the fair value measurement include reserve and production estimates made by our reservoir engineers, estimated future commodity prices adjusted for quality and location differentials and forecasted operating expenses for the remaining estimated life of the reservoir which resulted in a Level 3 classification.

•

2016 - Impairments of $67 million, to an aggregate fair value of $15 million, consisted primarily of proved properties in Oklahoma and the Gulf of Mexico in our United States segment as a result of lower forecasted commodity prices and revisions to estimated abandonment costs. The fair values were measured using an income approach based upon internal estimates of future production levels, prices and discount rate. Inputs to the fair value measurement include reserve and production estimates made by our reservoir engineers, estimated future commodity prices adjusted for quality and location differentials and forecasted operating expenses for the remaining estimated life of the reservoir which resulted in a Level 3 classification.

See Note 5 for discussion of the divestitures in further detail and Note 7 for relevant detail regarding segment presentation.

The following table summarizes impairment charges of unproved properties included as a component of exploration expense:



	Year Ended December 31,
(In millions)	2018		2017		2016
Exploration Expenses
Unproved property impairments	$	208	$	246	$	195
Dry well costs	47		77		25
Geological and geophysical	21		25		5
Other	13		61		98
Total exploration expenses	$	289	$	409	$	323

Unproved property impairments and dry well costs


•	2018 - During the fourth quarter 2018, we concluded our evaluation of drilling opportunities on the Rodo well in Alba Block Sub Area B, offshore E.G. and determined that we would not pursue further activity. As a result, we expensed $32 million in dry well costs and $16 million in unproved property impairments. See Note 10 for further discussion.

•

2017 - As a result of lower forecasted long-term commodity prices and the anticipated sales of certain non-core international properties we recorded a non-cash charge of $95 million to unproved property impairments related to various properties; and $64 million in dry well costs related to our Diaba License G4-223 in the Republic of Gabon. Also, as a result of our decision not to develop the Tchicuate offshore Block in the Republic of Gabon, we recorded a non-cash charge of $43 million to unproved property impairments.


•	2016 - Unproved property impairments are primarily a result of our decision to not drill any of our remaining Gulf of Mexico undeveloped leases and also included certain other unproved properties in the United States.

See Note 5 for relevant detail regarding the disposition of assets and Note 7 for relevant detail regarding segment presentation of unproved property impairments.