Intangible Assets Including Goodwill (Tables)

6 Months Ended

Jun. 30, 2020

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At June 30, 2020
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class
Capitalized software	$	1,759	$	(776)	$	983
Client relationships		8,665		(1,665)		7,000
Completed technology		5,964		(1,466)		4,498
Patents/trademarks		2,213		(445)		1,768
Other**		56		(35)		20
Total	$	18,656	$	(4,387)	$	14,270

	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 June 30, 2020 and December 31, 2019 include a decrease in net intangible asset balances of $6 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	$	288	$	905	$	1,193
2021		445		1,748		2,193
2022		215		1,686		1,901
2023		35		1,373		1,407
2024		0		1,323		1,323
Thereafter		—		6,251		6,251

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**		6/30/2020
Cloud & Cognitive Software	$	43,037	$	11	$	(139)	$	—	$	(147)	$	42,762
Global Business Services		5,775		—		—		—		(45)		5,730
Global Technology Services		7,141		—		—		—		(61)		7,080
Systems		2,270		—		—		—		(8)		2,261
Other—divested businesses		—		—		—		—		—		—
Total	$	58,222	$	11	$	(139)	$	—	$	(260)	$	57,833

									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.