Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2018

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At September 30, 2018
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,572	$	(784	)	$	788
Client relationships	2,273		(1,247		)	1,026
Completed technology	2,509		(1,560		)	949
Patents/trademarks	661		(324		)	337
Other*	56		(21		)	34
Total	$	7,071	$	(3,937	)	$	3,134

* 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 Q4)	$	140	$	198	$	338
2019	393		676		1,070
2020	203		564		768
2021	51		451		502
2022	—		382		382

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*			9/30/18
Cognitive Solutions	$	19,665	$	10	$	0		$	(1	)	$	(148	)	$	19,526
Global Business Services	4,813		24		(4		)	—			(51		)	4,782
Technology Services & Cloud Platforms	10,447		—		0			—			(86		)	10,361
Systems	1,862		—		—			—			(6		)	1,857
Total	$	36,788	$	34	$	(4	)	$	(1	)	$	(291	)	$	36,526

* 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.