Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2020

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At September 30, 2020
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class
Capitalized software	$	1,769	$	(785)	$	984
Client relationships		8,698		(1,852)		6,847
Completed technology		5,900		(1,531)		4,369
Patents/trademarks		2,210		(467)		1,743
Other**		56		(37)		18
Total	$	18,634	$	(4,672)	$	13,962

	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 September 30, 2020 and December 31, 2019 include an increase in net intangible asset balances of $133 million and a decrease of $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	$	154	$	454	$	608
2021		501		1,766		2,267
2022		261		1,704		1,964
2023		68		1,390		1,458
2024		0		1,340		1,340
Thereafter		—		6,324		6,324

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**		9/30/2020
Cloud & Cognitive Software	$	43,037	$	25	$	(139)	$	—	$	186	$	43,109
Global Business Services		5,775		—		—		—		47		5,822
Global Technology Services		7,141		—		—		—		13		7,154
Systems		2,270		—		—		—		1		2,270
Other—divested businesses		—		—		—		—		—		—
Total	$	58,222	$	25	$	(139)	$	—	$	248	$	58,355

									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.