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Intangible Assets Including Goodwill (Tables)
 9 Months Ended
Sep. 30, 2016
Intangible Assets Including Goodwill:  
Intangible asset balances by major asset class

 

 

 

At September 30, 2016

 

(Dollars in millions)

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

Intangible asset class

 

Amount

 

Amortization

 

Amount

 

Capitalized software

 

$
1,512

 

$
(630

)

$
882

 

Client relationships

 
2,831

 
(1,163

)
1,668

 

Completed technology

 
3,336

 
(1,577

)
1,759

 

Patents/trademarks

 
723

 
(183

)
540

 

Other*

 
46

 
(14

)
32

 

 

 

 

 

 

 

 

 

Total

 

$
8,447

 

$
(3,566

)

$
4,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* 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 Q4)

 

$
138 

 

$
254 

 

$
392 

 

2017

 
444 

 
944 

 
1,388 

 

2018

 
250 

 
798 

 
1,048 

 

2019

 
50 

 
635 

 
685 

 

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**

 

9/30/16

 

Cognitive Solutions

 

$
15,621

 

$
3,769

 

$
4

 

$
(12

)

$
134

 

$
19,516

 

Global Business Services

 
4,396

 
278

 
5

 
(1

)
16

 
4,693

 

Technology Services & Cloud Platforms

 
10,156

 
91

 
1

 
(5

)
89

 
10,333

 

Systems

 
1,848

 

—

 
2

 

—

 
10

 
1,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
32,021

 

$
4,137

 

$
11

 

$
(17

)

$
248

 

$
36,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*   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.