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

3 Months Ended

Mar. 31, 2020

Acquisitions/Divestitures

Business acquisition, purchase price allocation

	Amortization	Allocated
(Dollars in millions)	Life (in years)	Amount
Current assets*		$	3,186
Property, plant and equipment/noncurrent assets			939
Intangible assets:
Goodwill	N/A		23,137
Client relationships	10		7,215
Completed technology	9		4,571
Trademarks	20		1,686
Total assets acquired		$	40,735
Current liabilities**			1,390
Noncurrent liabilities			4,265
Total liabilities assumed		$	5,655
Total purchase price		$	35,080

* 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, which was fully settled as of October 1, 2019.

Business acquisition, goodwill segment allocation

(Dollars in billions)	Goodwill
Segment	Allocated*
Cloud & Cognitive Software	$	18.5
Global Technology Services		3.1
Global Business Services		1.1
Systems		0.4
Total	$	23.1

* It is expected that approximately seven percent of the goodwill will be deductible for tax purposes.