Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2017

Intangible Assets Including Goodwill:

Intangible asset balances by major asset class

	At March 31, 2017
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,557	$	(691	)	$	865
Client relationships	2,751		(1,254		)	1,497
Completed technology	3,231		(1,688		)	1,542
Patents/trademarks	725		(228		)	496
Other*	52		(17		)	35
Total	$	8,314	$	(3,879	)	$	4,436

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

	At December 31, 2016
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
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 non-proprietary business processes, methodologies and systems.

Intangible assets, future amortization expense

	Capitalized		Acquired
(Dollars in millions)	Software		Intangibles		Total
2017 (for Q2 - Q4)	$	391	$	707	$	1,098
2018	347		811		1,158
2019	119		648		768
2020	8		549		557
2021	—		437		437

Changes in goodwill balances by reportable segment

										Foreign
										Currency
					Purchase					Translation
(Dollars in millions)	Balance		Goodwill		Price					And Other		Balance
Segment	01/01/17		Additions		Adjustments			Divestitures		Adjustments*		3/31/17
Cognitive Solutions	$	19,484	$	3	$	4		$	—	$	26	$	19,518
Global Business Services	4,607		—		2			—		35		4,643
Technology Services & Cloud Platforms	10,258		5		(3		)	—		35		10,295
Systems	1,850		—		—			—		1		1,851
Total	$	36,199	$	8	$	3		$	—	$	97	$	36,307

* Primarily driven by foreign currency translation.

											Foreign
											Currency
					Purchase						Translation
(Dollars in millions)	Balance		Goodwill		Price						And Other			Balance
Segment	01/01/16		Additions		Adjustments			Divestitures			Adjustments*			12/31/16
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.