Intangible Assets Including Goodwill (Tables)

6 Months Ended

Jun. 30, 2016

Intangible Assets Including Goodwill:

Intangible asset balances by major asset class

	At June 30, 2016
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,486	$	(604	)	$	882
Client relationships	2,861		(1,093		)	1,769
Completed technology	3,509		(1,615		)	1,894
Patents/trademarks	762		(190		)	572
Other*	44		(12		)	32
Total	$	8,663	$	(3,515	)	$	5,148

* 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 non-proprietary business processes, methodologies and systems.

Intangible assets, future amortization expense

	Capitalized		Acquired
(Dollars in millions)	Software		Intangibles		Total
2016 (for Q3-Q4)	$	260	$	521	$	782
2017	393		945		1,338
2018	204		798		1,001
2019	25		635		660
2020	—		535		535

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**		6/30/16
Cognitive Solutions	$	15,621	$	3,769	$	(3	)	$	(12	)	$	98	$	19,474
Global Business Services	4,396		278		4			(1		)	12		4,689
Technology Services & Cloud Platforms	10,156		91		1			(5		)	154		10,398
Systems	1,848		—		2			—			11		1,861
Total	$	32,021	$	4,137	$	5		$	(17	)	$	276	$	36,422

*Recast 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

*Recast to conform with 2016 presentation.

**Primarily driven by foreign currency translation.