Intangible Assets Including Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

($ in millions)

	Gross					Net
	Carrying		Accumulated			Carrying
At December 31, 2018:	Amount		Amortization			Amount
Intangible asset class
Capitalized software	$	1,568	$	(629	)	$	939
Client relationships	2,068		(1,123		)	945
Completed technology	2,156		(1,296		)	860
Patents/trademarks	641		(330		)	311
Other*	56		(23		)	32
Total	$	6,489	$	(3,402	)	$	3,087

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

($ 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.

Intangible assets, future amortization expense

($ in millions)

	Capitalized		Acquired
	Software		Intangibles		Total
2019	$	461	$	676	$	1,137
2020	320		565		886
2021	157		450		608
2022	—		382		382
2023	—		64		64

Changes in goodwill balances by reportable segment

($ in millions)

											Foreign
											Currency
	Balance										Translation			Balance
	January 1,		Goodwill		Purchase Price						and Other			December 31,
Segment	2018		Additions		Adjustments			Divestitures			Adjustments*			2018
Cognitive Solutions	$	19,665	$	10	$	0		$	(1	)	$	(290	)	$	19,384
Global Business Services	4,813		24		(3		)	—			(92		)	4,742
Technology Services & Cloud Platforms	10,447		—		0			—			(156		)	10,292
Systems	1,862		—		0			—			(15		)	1,847
Total	$	36,788	$	34	$	(3	)	$	(1	)	$	(553	)	$	36,265

* Primarily driven by foreign currency translation.

($ in millions)

											Foreign
											Currency
	Balance										Translation		Balance
	January 1,		Goodwill		Purchase Price						and Other		December 31,
Segment	2017		Additions		Adjustments			Divestitures			Adjustments*		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.