Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2021

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At September 30, 2021
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,864	$	(881)	$	983
Client relationships		9,170		(2,746)		6,423
Completed technology		6,077		(2,126)		3,951
Patents/trademarks		2,217		(560)		1,658
Other**		44		(33)		11
Total	$	19,372	$	(6,347)	$	13,025

	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 September 30, 2021 and December 31, 2020 included a decrease in net intangible asset balances of $179 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	$	171	$	474	$	645
2022		469		1,830		2,299
2023		268		1,517		1,786
2024		74		1,467		1,541
2025		0		1,444		1,444
Thereafter		0		5,310		5,310

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			Divestitures	Adjustments*		9/30/2021
Cloud & Cognitive Software	$	43,934	$	1,655	$	8	$	(13)	$	(374)	$	45,210
Global Business Services		6,145		695		(11)		—		(101)		6,727
Global Technology Services		7,245		2		—		—		(92)		7,155
Systems		2,293		—		0		—		(7)		2,286
Total	$	59,617	$	2,351	$	(3)	$	(13)	$	(575)	$	61,378

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