Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2018

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At March 31, 2018
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,540	$	(746	)	$	794
Client relationships	2,329		(1,135		)	1,194
Completed technology	2,571		(1,454		)	1,117
Patents/trademarks	661		(274		)	387
Other*	47		(17		)	30
Total	$	7,149	$	(3,627	)	$	3,521

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

	At December 31, 2017
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,600	$	(790	)	$	810
Client relationships	2,358		(1,080		)	1,278
Completed technology	2,586		(1,376		)	1,210
Patents/trademarks	668		(256		)	413
Other*	47		(16		)	31
Total	$	7,260	$	(3,518	)	$	3,742

*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
2018 (for Q2 - Q4)	$	378	$	607	$	986
2019	292		672		964
2020	115		560		675
2021	8		446		454
2022	—		377		377

Changes in goodwill balances by reportable segment

										Foreign
										Currency
					Purchase					Translation
(Dollars in millions)	Balance		Goodwill		Price					And Other			Balance
Segment	01/01/18		Additions		Adjustments		Divestitures			Adjustments*			3/31/18
Cognitive Solutions	$	19,665	$	—	$	0	$	(1	)	$	(76	)	$	19,589
Global Business Services	4,813		—		—		—			39			4,852
Technology Services & Cloud Platforms	10,447		—		0		—			(15		)	10,433
Systems	1,862		—		—		—			(5		)	1,858
Total	$	36,788	$	—	$	0	$	(1	)	$	(56	)	$	36,732

*Primarily driven by foreign currency translation.

											Foreign
											Currency
					Purchase						Translation
(Dollars in millions)	Balance		Goodwill		Price						And Other		Balance
Segment	01/01/17		Additions		Adjustments			Divestitures			Adjustments*		12/31/17
Cognitive Solutions	$	19,484	$	3	$	(38	)	$	(20	)	$	235	$	19,665
Global Business Services	4,607		—		2			—			204		4,813
Technology Services & Cloud Platforms	10,258		13		(2		)	—			179		10,447
Systems	1,850		—		0			—			13		1,862
Total	$	36,199	$	16	$	(38	)	$	(20	)	$	631	$	36,788

*Primarily driven by foreign currency translation.