Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2020

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At March 31, 2020
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class
Capitalized software	$	1,760	$	(764)	$	997
Client relationships		8,854		(1,669)		7,185
Completed technology		6,225		(1,566)		4,658
Patents/trademarks		2,287		(483)		1,804
Other**		56		(33)		22
Total	$	19,181	$	(4,515)	$	14,666

	At December 31, 2019
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	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

*  Amounts as of March 31, 2020 and December 31, 2019 include a decrease in net intangible asset balances of $92 million and $42 million, respectively, due to foreign currency translation.

** 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
Remainder of 2020	$	415	$	1,372	$	1,787
2021		399		1,738		2,137
2022		170		1,676		1,846
2023		12		1,363		1,375
2024		0		1,313		1,313
Thereafter		—		6,208		6,208

Changes in goodwill balances by reportable segment

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				And Other		Balance
Segment	1/1/2020		Additions		Adjustments		Divestitures		Adjustments**		3/31/2020
Cloud & Cognitive Software	$	43,037	$	10	$	12	$	—	$	(438)	$	42,620
Global Business Services		5,775		—		—		—		(102)		5,672
Global Technology Services		7,141		—		—		—		(167)		6,974
Systems		2,270		—		—		—		(19)		2,251
Other—divested businesses		—		—		—		—		—		—
Total	$	58,222	$	10	$	12	$	—	$	(727)	$	57,517

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				And Other		Balance
Segment	1/1/2019		Additions		Adjustments		Divestitures		Adjustments**		12/31/2019
Cloud & Cognitive Software*	$	24,463	$	18,399	$	133	$	—	$	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*		1,256		—		—		(1,256)		—		—
Total	$	36,265	$	23,102	$	24	$	(1,257)	$	87	$	58,222

* Recast to conform to 2020 presentation. 

** Primarily driven by foreign currency translation.