Intangible Assets Including Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

($ in millions)	Gross Carrying		Accumulated		Net Carrying
At December 31, 2019:*	Amount		Amortization		Amount
Intangible asset class
Capitalized software	$	1,749	$	(743)	$	1,006
Client relationships		8,921		(1,433)		7,488
Completed technology		6,261		(1,400)		4,861
Patents/trademarks		2,301		(445)		1,856
Other**		56		(31)		24
Total	$	19,287	$	(4,052)	$	15,235

($ in millions)	Gross Carrying		Accumulated		Net Carrying
At December 31, 2018:	Amount		Amortization		Amount
Intangible asset class
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

*   Amounts as of December 31, 2019 include a decrease of $42 million in net intangible asset balances due to foreign currency translation. There was no foreign currency impact on net intangible assets for the year ended December 31, 2018.

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

Intangible assets acquired as allocated

($ in millions)

Intangible assets, future amortization expense

	Capitalized		Acquired
($ in millions)	Software		Intangibles		Total
2020	$	529	$	1,855	$	2,384
2021		352		1,747		2,099
2022		123		1,684		1,808
2023		1		1,371		1,372
2024		0		1,322		1,322
Thereafter		—		6,250		6,250

Changes in goodwill balances by reportable segment

									Foreign
									Currency
	Balance				Purchase				Translation		Balance
($ in millions)	January 1,		Goodwill		Price				and Other		December 31,
Segment	2019		Additions		Adjustments		Divestitures		Adjustments**		2019
Cloud & Cognitive Software	$	24,594	$	18,399	$	133	$	(131)	$	41	$	43,037
Global Business Services		4,711		1,059		1		(1)		5		5,775
Global Technology Services		3,988		3,119		—		—		34		7,141
Systems		1,847		525		(110)		—		7		2,270
Other—divested businesses		1,126		—		—		(1,126)		—		—
Total	$	36,265	$	23,102	$	24	$	(1,257)	$	87	$	58,222

									Foreign
									Currency
	Balance				Purchase				Translation		Balance
($ in millions)	January 1,		Goodwill		Price				and Other		December 31,
Segment	2018		Additions		Adjustments		Divestitures		Adjustments**		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.