Impairments

3 Months Ended

Mar. 31, 2020

During the first quarter of 2020, a global pandemic caused a substantial deterioration in the worldwide demand of hydrocarbons. We reviewed our long-lived assets for indicators of impairment by conducting a sensitivity analysis of the most impactful inputs to their undiscounted cash flows, including commodity prices, capital spend and reductions in production volumes to correspond with lower capital spending. Our review concluded that the carrying amounts of our long-lived assets are recoverable, with our most at risk asset having undiscounted cash flows that exceeded its $461 million carrying value by approximately 90%. However, further deterioration or a more sustained decline of commodity prices may result in impairment charges in future periods.

The following table summarizes impairment charges of proved properties and goodwill and their corresponding fair values.



	Three Months Ended March 31,
	2020				2019
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	2	$	37	$	6
Goodwill	$	—	$	95	N/A		$	—


•	2020 – Impairments included $95 million of goodwill impairment in the International reporting unit. See Note 14 for further information.

•

2019 – During the three months ended March 31, 2019, we recorded a proved property impairment charge of $6 million, as a result of the anticipated sale of our non-operated interest in the Atrush block (Kurdistan) in our International segment. The related fair value was measured using the market approach, based upon anticipated sales proceeds less costs to sell which resulted in a Level 2 classification.