Intangible Assets Including Goodwill (Tables)

6 Months Ended

Jun. 30, 2017

Intangible Assets Including Goodwill:

Intangible asset balances by major asset class

	At June 30, 2017
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,575	$	(719	)	$	856
Client relationships	2,748		(1,350		)	1,398
Completed technology	3,167		(1,743		)	1,424
Patents/trademarks	708		(240		)	468
Other*	52		(18		)	34
Total	$	8,250	$	(4,070	)	$	4,179

* 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 Q3 - Q4)	$	275	$	453	$	728
2018	395		803		1,198
2019	160		662		822
2020	25		550		575
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*		6/30/17
Cognitive Solutions	$	19,484	$	3	$	(35	)	$	(13	)	$	124	$	19,564
Global Business Services	4,607		—		4			—			122		4,733
Technology Services & Cloud Platforms	10,258		5		(3		)	—			105		10,365
Systems	1,850		—		—			—			6		1,856
Total	$	36,199	$	8	$	(34	)	$	(13	)	$	357	$	36,517

* 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.