Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2019

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At March 31, 2019
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,665	$	(683	)	$	982
Client relationships	2,022		(1,150		)	872
Completed technology	2,032		(1,248		)	784
Patents/trademarks	635		(348		)	287
Other *	56		(25		)	30
Total	$	6,410	$	(3,454	)	$	2,956

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

	At December 31, 2018
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,568	$	(629	)	$	939
Client relationships	2,068		(1,123		)	945
Completed technology	2,156		(1,296		)	860
Patents/trademarks	641		(330		)	311
Other *	56		(23		)	32
Total	$	6,489	$	(3,402	)	$	3,087

*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
2019 (for Q2 - Q4)	$	383	$	501	$	885
2020	379		565		944
2021	209		450		659
2022	11		382		393
2023	—		64		64

Changes in goodwill balances by reportable segment

										Foreign
										Currency
					Purchase					Translation
(Dollars in millions)	Balance		Goodwill		Price					And Other			Balance
Segment	1/1/2019		Additions		Adjustments		Divestitures			Adjustments*			3/31/2019
Cloud & Cognitive Software	$	24,594	$	—	$	0	$	—		$	31		$	24,625
Global Business Services	4,711		—		0		—			(3		)	4,708
Global Technology Services	3,988		—		—		—			16			4,003
Systems	1,847		—		—		—			3			1,851
Other — divested businesses	1,126		—		—		(32		)	—			1,094
Total	$	36,265	$	—	$	0	$	(32	)	$	47		$	36,281

*Primarily driven by foreign currency translation.

											Foreign
											Currency
					Purchase						Translation
(Dollars in millions)	Balance		Goodwill		Price						And Other			Balance
Segment	1/1/2018		Additions		Adjustments			Divestitures			Adjustments**			12/31/2018
Cloud & Cognitive Software*	$	24,973	$	9	$	0		$	(1	)	$	(388	)	$	24,594
Global Business Services*	4,782		24		(3		)	—			(92		)	4,711
Global Technology Services*	4,044		—		0			—			(56		)	3,988
Systems	1,862		—		0			—			(15		)	1,847
Other — divested businesses*	1,127		1		0			0			(2		)	1,126
Total	$	36,788	$	34	$	(3	)	$	(1	)	$	(553	)	$	36,265

*Recast to conform to 2019 presentation.

**Primarily driven by foreign currency translation.