Acquisitions/Divestitures (Tables) - Red Hat, Inc.

9 Months Ended

Sep. 30, 2019

Acquisitions/Divestitures

Business acquisition, total consideration

	Total
(Dollars in millions)	Consideration
Cash paid for outstanding Red Hat common stock	$	33,769
Cash paid for Red Hat equity awards		24
Cash paid to settle warrants		1,008
Cash consideration	$	34,801
Fair value of stock-based compensation awards attributable to pre-combination services		174
Stock issued to holders of vested performance share units		45
Settlement of pre-existing relationships		60
Total consideration	$	35,079

Business acquisition, purchase price allocation

(Dollars in millions)	Life (in years)	Amount
Current assets*		$	3,190
Property, plant and equipment/noncurrent assets			955
Intangible assets:
Goodwill	N/A		23,102
Client relationships	10		7,215
Completed technology	9		4,571
Trademarks	20		1,686
Total assets acquired		$	40,719
Current liabilities**			1,378
Noncurrent liabilities			4,262
Total liabilities assumed		$	5,640
Total purchase price		$	35,079

* Includes $2.2 billion of cash and cash equivalents.

**   Includes $485 million of short-term debt related to the convertible notes acquired from Red Hat that were recognized at their fair value on the acquisition date, of which $50 million is included in the company’s Consolidated Statement of Financial Position as of September 30, 2019. This remaining balance was settled on October 1, 2019.

Business acquisition, pro forma information

(Unaudited)	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions)	2019		2018		2019		2018
Revenue	$	18,567	$	19,236	$	57,424	$	58,987
Net income	$	2,249	$	2,079	$	5,664	$	4,278