Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2021

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At March 31, 2021
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,854	$	(837)	$	1,017
Client relationships		8,874		(2,275)		6,599
Completed technology		5,972		(1,784)		4,188
Patents/trademarks		2,196		(480)		1,717
Other**		56		(41)		14
Total	$	18,952	$	(5,417)	$	13,535

	At December 31, 2020
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	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

*  Amounts as of March 31, 2021 and December 31, 2020 include a decrease in net intangible asset balances of $137 million and an increase of $279 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 2021	$	469	$	1,379	$	1,848
2022		368		1,774		2,142
2023		168		1,459		1,627
2024		12		1,408		1,420
2025		—		1,389		1,389
Thereafter		—		5,109		5,109

Changes in goodwill balances by reportable segment

							Foreign
							Currency
					Purchase		Translation
(Dollars in millions)	Balance		Goodwill		Price		and Other		Balance
Segment	1/1/2021		Additions		Adjustments		Adjustments*		3/31/2021
Cloud & Cognitive Software	$	43,934	$	245	$	6	$	(249)	$	43,935
Global Business Services		6,145		501		0		(61)		6,585
Global Technology Services		7,245		—		—		(70)		7,175
Systems		2,293		—		0		(4)		2,289
Total	$	59,617	$	746	$	6	$	(384)	$	59,984

							Foreign
							Currency
					Purchase		Translation
(Dollars in millions)	Balance		Goodwill		Price		and Other		Balance
Segment	1/1/2020		Additions		Adjustments		Adjustments*		12/31/2020
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

* Primarily driven by foreign currency translation.