Intangible Assets Including Goodwill (Tables)

6 Months Ended

Jun. 30, 2019

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At June 30, 2019
(Dollars in millions)	Gross Carrying		Accumulated		Net Carrying
Intangible asset class	Amount		Amortization		Amount
Capitalized software	$	1,621	$	(668)	$	953
Client relationships		1,876		(1,094)		782
Completed technology		1,903		(1,201)		701
Patents/trademarks		622		(358)		263
Other*		56		(27)		28
Total	$	6,077	$	(3,349)	$	2,728

*  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 Q3-Q4)	$	261	$	323	$	584
2020		410		550		961
2021		248		445		693
2022		33		382		415
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*		6/30/2019
Cloud & Cognitive Software	$	24,594	$	—	$	0	$	—	$	89	$	24,683
Global Business Services		4,711		—		1		—		7		4,718
Global Technology Services		3,988		—		—		—		40		4,027
Systems		1,847		—		—		—		7		1,855
Other — divested businesses		1,126		—		—		(1,126)		—		—
Total	$	36,265	$	—	$	1	$	(1,126)	$	143	$	35,284

* 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.