Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2017

Intangible Assets Including Goodwill:

Intangible asset balances by major asset class

	At September 30, 2017
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,586	$	(750	)	$	835
Client relationships	2,416		(1,054		)	1,363
Completed technology	2,872		(1,562		)	1,310
Patents/trademarks	707		(267		)	440
Other*	52		(19		)	32
Total	$	7,633	$	(3,652	)	$	3,981

* 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 Q4)	$	144	$	216	$	359
2018	441		811		1,252
2019	202		671		873
2020	48		559		607
2021	—		446		446

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*		9/30/17
Cognitive Solutions	$	19,484	$	3	$	(36	)	$	(15	)	$	243	$	19,679
Global Business Services	4,607		—		4			—			186		4,797
Technology Services & Cloud Platforms	10,258		13		(3		)	—			175		10,444
Systems	1,850		—		—			—			13		1,863
Total	$	36,199	$	16	$	(36	)	$	(15	)	$	618	$	36,782

* 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.