Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2015

Intangible Assets Including Goodwill:

Intangible asset balances by major asset class

	At September 30, 2015
(Dollars in millions)	Gross Carrying		Accumulated		Net Carrying
Intangible asset class	Amount		Amortization		Amount
Capitalized software	$	1,329	$	(593)	$	736
Client relationships		1,670		(886)		784
Completed technology		2,431		(1,333)		1,098
Patents/trademarks		291		(156)		134
Other*		32		(9)		23
Total	$	5,753	$	(2,977)	$	2,775
* Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems.
	At December 31, 2014
(Dollars in millions)	Gross Carrying		Accumulated		Net Carrying
Intangible asset class	Amount		Amortization		Amount
Capitalized software	$	1,375	$	(679)	$	696
Client relationships		2,208		(1,271)		937
Completed technology		2,831		(1,533)		1,298
Patents/trademarks		374		(214)		161
Other*		18		(6)		12
Total	$	6,806	$	(3,702)	$	3,104

*Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems.

Intangible assets, future amortization expense

	Capitalized		Acquired
(Dollars in millions)	Software		Intangibles		Total
2015 (for Q4)	$	122	$	167	$	289
2016		369		625		994
2017		200		518		718
2018		45		358		402
2019		—		231		231

Changes in goodwill balances by reportable segment

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				And Other		Balance
Segment	01/01/15		Additions		Adjustments		Divestitures		Adjustments**		9/30/15
Global Business Services	$	4,555	$	—	$	0	$	(1)	$	(187)	$	4,367
Global Technology Services		3,530		62		0		—		(86)		3,506
Software		21,000		574		(1)		(8)		(608)		20,957
Systems Hardware		1,472		—		—		—		(27)		1,445
Total	$	30,556	$	637	$	(1)	$	(9)	$	(907)	$	30,275
** Primarily driven by foreign currency translation.

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				And Other		Balance
Segment	01/01/14		Additions		Adjustments		Divestitures		Adjustments**		12/31/14
Global Business Services*	$	4,855	$	—	$	0	$	(52)	$	(248)	$	4,555
Global Technology Services*		3,608		11		21		(2)		(108)		3,530
Software		21,121		430		(17)		(19)		(516)		21,000
Systems Hardware		1,601		—		—		(110)		(19)		1,472
Total	$	31,184	$	442	$	4	$	(183)	$	(891)	$	30,556
* Reclassified to conform with 2015 presentation.
** Primarily driven by foreign currency translation.