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

6 Months Ended

Jun. 30, 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			948
Intangible assets:
Goodwill	N/A		22,986
Client relationships	10		7,215
Completed technology	9		4,571
Trademarks	20		1,686
Total assets acquired		$	40,592
Current liabilities**			1,395
Noncurrent liabilities			4,117
Total liabilities assumed		$	5,513
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	$	18.4
Global Technology Services		3.1
Global Business Services		1.1
Systems		0.4
Total	$	23.0

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