INTANGIBLE ASSETS INCLUDING GOODWILL (Tables)

12 Months Ended

Dec. 31, 2017

INTANGIBLE ASSETS INCLUDING GOODWILL

Intangible asset balances by major asset class

($ in millions)

	Gross					Net
	Carrying		Accumulated			Carrying
At December 31, 2017:	Amount		Amortization			Amount
Intangible asset class
Capitalized software	$	1,600	$	(790	)	$	810
Client relationships	2,358		(1,080		)	1,278
Completed technology	2,586		(1,376		)	1,210
Patents/trademarks	668		(256		)	413
Other*	47		(16		)	31
Total	$	7,260	$	(3,518	)	$	3,742

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

($ 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.

Intangible assets, future amortization expense

($ in millions)

	Capitalized		Acquired
	Software		Intangibles		Total
2018	$	482	$	812	$	1,294
2019	248		671		920
2020	79		560		639
2021	—		446		446
2022	—		377		377

Changes in goodwill balances by reportable segment

($ in millions)

											Foreign
											Currency
	Balance										Translation		Balance
	January 1,		Goodwill		Purchase Price						and Other		December
Segment	2017		Additions		Adjustments			Divestitures			Adjustments*		31, 2017
Cognitive Solutions	$	19,484	$	3	$	(38	)	$	(20	)	$	235	$	19,665
Global Business Services	4,607		—		2			—			204		4,813
Technology Services & Cloud Platforms	10,258		13		(2		)	—			179		10,447
Systems	1,850		—		0			—			13		1,862
Total	$	36,199	$	16	$	(38	)	$	(20	)	$	631	$	36,788

*Primarily driven by foreign currency translation.

($ in millions)

											Foreign
											Currency
	Balance										Translation			Balance
	January 1,		Goodwill		Purchase 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.