Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2019

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At September 30, 2019
(Dollars in millions)	Gross Carrying		Accumulated		Net Carrying
Intangible asset class	Amount		Amortization		Amount
Capitalized software	$	1,686	$	(702)	$	985
Client relationships		8,996		(1,312)		7,684
Completed technology		6,413		(1,386)		5,027
Patents/trademarks		2,291		(401)		1,890
Other*		56		(29)		26
Total	$	19,443	$	(3,830)	$	15,613

*  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 Q4)	$	149	$	473	$	623
2020		471		1,850		2,321
2021		296		1,745		2,041
2022		66		1,681		1,748
2023		1		1,367		1,368

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*		9/30/2019
Cloud & Cognitive Software	$	24,594	$	18,399	$	0	$	—	$	(174)	$	42,819
Global Business Services		4,711		1,059		1		(1)		(76)		5,694
Global Technology Services		3,988		3,119		—		—		(41)		7,066
Systems		1,847		525		—		—		(1)		2,372
Other — divested businesses		1,126		—		—		(1,126)		—		—
Total	$	36,265	$	23,102	$	1	$	(1,126)	$	(291)	$	57,951

* 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.