INTANGIBLE ASSETS INCLUDING GOODWILL (Tables)

12 Months Ended

Dec. 31, 2016

INTANGIBLE ASSETS INCLUDING GOODWILL

Intangible asset balances by major asset class

($ in millions)

	Gross					Net
	Carrying		Accumulated			Carrying
At December 31, 2016:	Amount		Amortization			Amount
Intangible asset class
Capitalized software	$	1,537	$	(661	)	$	876
Client relationships	2,831		(1,228		)	1,602
Completed technology	3,322		(1,668		)	1,654
Patents/trademarks	730		(205		)	525
Other*	46		(15		)	31
Total	$	8,466	$	(3,778	)	$	4,688

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

($ in millions)

	Gross					Net
	Carrying		Accumulated			Carrying
At December 31, 2015:	Amount		Amortization			Amount
Intangible asset class
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

($ in millions)

	Capitalized		Acquired
	Software		Intangibles		Total
2017	$	494	$	957	$	1,450
2018	300		809		1,109
2019	83		646		729
2020	—		547		547
2021	—		435		435

Changes in goodwill balances by reportable segment

($ in millions)

											Foreign
											Currency
	Balance				Purchase						Translation			Balance
	January 1,		Goodwill		Price						and Other			December
Segment	2016		Additions		Adjustments			Divestitures			Adjustments*			31, 2016
Cognitive Solutions	$	15,621	$	3,821	$	5		$	(12	)	$	48		$	19,484
Global Business Services	4,396		303		4			(1		)	(95		)	4,607
Technology Services & Cloud Platforms	10,156		119		(12		)	(5		)	(1		)	10,258
Systems	1,848		—		(4		)	—			5			1,850
Total	$	32,021	$	4,244	$	(7	)	$	(18	)	$	(42	)	$	36,199

* Primarily driven by foreign currency translation

($ in millions)

											Foreign
											Currency
	Balance				Purchase						Translation			Balance
	January 1,		Goodwill		Price						and Other			December
Segment	2015		Additions		Adjustments			Divestitures			Adjustments*			31, 2015
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

* Primarily driven by foreign currency translation