Intangible Assets Including Goodwill (Tables)

6 Months Ended

Jun. 30, 2018

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At June 30, 2018
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,563	$	(767	)	$	796
Client relationships	2,331		(1,219		)	1,113
Completed technology	2,585		(1,548		)	1,037
Patents/trademarks	662		(300		)	363
Other*	56		(19		)	36
Total	$	7,197	$	(3,853	)	$	3,344

* 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 Q3 - Q4)	$	268	$	405	$	673
2019	344		676		1,020
2020	159		564		722
2021	26		450		476
2022	—		381		381

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*			6/30/18
Cognitive Solutions	$	19,665	$	10	$	0	$	(1	)	$	(165	)	$	19,509
Global Business Services	4,813		24		0		—			(71		)	4,766
Technology Services & Cloud Platforms	10,447		—		0		—			(94		)	10,353
Systems	1,862		—		—		—			(9		)	1,854
Total	$	36,788	$	34	$	0	$	(1	)	$	(340	)	$	36,482

* 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.