Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2016

Intangible Assets Including Goodwill:

Intangible asset balances by major asset class

	At March 31, 2016
(Dollars in millions)	Gross Carrying		Accumulated		Net Carrying
Intangible asset class	Amount		Amortization		Amount
Capitalized software	$	1,465	$	(593)	$	872
Client relationships		2,297		(987)		1,310
Completed technology		3,121		(1,486)		1,635
Patents/trademarks		683		(160)		523
Other*		44		(11)		33
Total	$	7,610	$	(3,237)	$	4,373
* Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems.
	At December 31, 2015
(Dollars in millions)	Gross Carrying		Accumulated		Net Carrying
Intangible asset class	Amount		Amortization		Amount
Capitalized software	$	1,348	$	(581)	$	767
Client relationships		1,856		(927)		929
Completed technology		2,960		(1,397)		1,563
Patents/trademarks		335		(142)		193
Other*		44		(10)		35
Total	$	6,543	$	(3,057)	$	3,487

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

Intangible assets, future amortization expense

	Capitalized		Acquired
(Dollars in millions)	Software		Intangibles		Total
2016 (for Q2-Q4)	$	365	$	674	$	1,039
2017		340		792		1,132
2018		160		645		805
2019		8		484		492
2020		—		384		384

Changes in goodwill balances by reportable segment

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				And Other		Balance
Segment	1/1/2016*		Additions		Adjustments		Divestitures		Adjustments**		3/31/16
Cognitive Solutions	$	15,621	$	1,723	$	1	$	(12)	$	199	$	17,533
Global Business Services		4,396		101		1		(1)		72		4,569
Technology Services &
Cloud Platforms		10,156		91		1		(5)		115		10,358
Systems		1,848		—		1		—		12		1,861
Total	$	32,021	$	1,915	$	4	$	(17)	$	398	$	34,322
* Reclassified to conform with 2016 presentation.
** Primarily driven by foreign currency translation.

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				And Other		Balance
Segment	1/1/2015*		Additions*		Adjustments*		Divestitures*		Adjustments* **		12/31/15*
Cognitive Solutions	$	15,156	$	1,020	$	(2)	$	(18)	$	(535)	$	15,621
Global Business Services		4,555		74		0		(1)		(232)		4,396
Technology Services &
Cloud Platforms		9,373		1,087		(1)		(7)		(296)		10,156
Systems		1,472		410		0		—		(33)		1,848
Total	$	30,556	$	2,590	$	(3)	$	(26)	$	(1,096)	$	32,021
* Reclassified to conform with 2016 presentation.
** Primarily driven by foreign currency translation.