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.




	Three Months Ended September 30,
	2018				2017
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets	$	39	$	8	$	169	$	201



	Nine Months Ended September 30,
	2018				2017
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets	$	108	$	50	$	169	$	205

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2018 - During the first nine months of 2018 we recorded pre-tax non-cash proved property impairments of $50 million, to a fair value of $108 million, primarily as a result of anticipated sales proceeds for certain non-core proved properties in our International and United States E&P segments. 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. See Note 5 for discussion of the divestitures in further detail.

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2017 - Impairments for the three and nine months ended September 30, 2017 were primarily a result of lower forecasted long-term commodity prices and the anticipated sales of certain non-core proved properties in our International E&P segment of $136 million. The 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. This resulted in a Level 2 classification.

Additionally, included in proved property impairments was $65 million relating to the Gulf of Mexico 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. These inputs resulted in a Level 3 classification.

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



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2018			2017		2018		2017
Exploration Expenses
Unproved property impairments	$	50		$	172	$	131	$	217
Dry well costs	1			77		13		77
Geological and geophysical	(1		)	2		13		3
Other	6			43		16		55
Total exploration expenses	$	56		$	294	$	173	$	352

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2017 - Impairments for the three and nine months ended September 30, 2017 were primarily a result of lower forecasted long-term commodity prices and the anticipated sales of certain non-core properties in our International E&P segment, we recorded a non-cash charge of $159 million comprised of $95 million in unproved property impairments and $64 million in dry well costs related to our Diaba License G4-223 in the Republic of Gabon. Also, because of our decision not to develop the Tchicuate offshore Block in the Republic of Gabon, we recorded a non-cash impairment charge of $43 million to unproved property.

See Note 5 for relevant detail regarding the disposition of assets.