Intangible Assets Including Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

($ in millions)
	Gross Carrying		Accumulated		Net Carrying
At December 31, 2020:	Amount		Amortization		Amount		*
Intangible asset class
Capitalized software	$	1,777	$	(814)	$	963
Client relationships		8,838		(2,056)		6,783
Completed technology		5,957		(1,671)		4,286
Patents/trademarks		2,246		(499)		1,747
Other**		56		(39)		16
Total	$	18,874	$	(5,079)	$	13,796

* Includes an increase in net intangible asset balance of $279 million due to foreign currency translation.

** Other intangibles are primarily acquired proprietary and nonproprietary business processes, methodologies and systems.

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

* Includes a decrease in net intangible asset balance of $42 million due to foreign currency translation.

** Other intangibles are primarily acquired proprietary and nonproprietary business processes, methodologies and systems.

Intangible assets, future amortization expense

	Capitalized		Acquired
($ in millions)	Software		Intangibles		Total
2021	$	544	$	1,809	$	2,353
2022		305		1,746		2,051
2023		114		1,432		1,546
2024		0		1,382		1,383
2025		—		1,364		1,364
Thereafter		—		5,099		5,099

Changes in goodwill balances by reportable segment

($ in millions)
									Foreign
									Currency
					Purchase				Translation
	Balance at		Goodwill		Price				and Other			Balance at
Segment	January 1, 2020		Additions		Adjustments		Divestitures		Adjustments		**	December 31, 2020
Cloud & Cognitive Software	$	43,037	$	362	$	(139)	$	—	$	675		$	43,934
Global Business Services		5,775		205		—		—		165			6,145
Global Technology Services		7,141		—		—		—		104			7,245
Systems		2,270		8		—		—		15			2,293
Total	$	58,222	$	575	$	(139)	$	—	$	960		$	59,617

($ in millions)
									Foreign
									Currency
					Purchase				Translation
	Balance at		Goodwill		Price				and Other			Balance at
Segment	January 1, 2019		Additions		Adjustments		Divestitures		Adjustments		**	December 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.