Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At March 31, 2022
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,805	$	(729)	$	1,076
Client relationships		9,013		(3,017)		5,996
Completed technology		6,092		(2,427)		3,665
Patents/trademarks		2,192		(624)		1,567
Other**		38		(30)		8
Total	$	19,140	$	(6,828)	$	12,312

	At December 31, 2021
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,696	$	(751)	$	945
Client relationships		9,021		(2,889)		6,132
Completed technology		6,074		(2,259)		3,815
Patents/trademarks		2,196		(586)		1,610
Other**		44		(35)		9
Total	$	19,031	$	(6,520)	$	12,511

*  Amounts as of March 31, 2022 and December 31, 2021 include a decrease in net intangible asset balances of $60 million and $221 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 2022	$	459	$	1,377	$	1,836
2023		404		1,535		1,938
2024		203		1,487		1,690
2025		10		1,470		1,480
2026		0		1,453		1,453
Thereafter		0		3,915		3,915

Changes in goodwill balances by reportable segment

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				and Other		Balance
Segment	1/1/2022		Additions		Adjustments		Divestitures		Adjustments*		3/31/2022
Software	$	43,966	$	188	$	(27)	$	—	$	(99)	$	44,027
Consulting		6,797		461		(3)		—		(49)		7,205
Infrastructure		4,396		—		—		(1)		(5)		4,390
Other		484		—		—		—		—		484
Total	$	55,643	$	649	$	(31)	$	(1)	$	(153)	$	56,106

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				and Other		Balance
Segment	1/1/2021		Additions		Adjustments		Divestitures		Adjustments*		12/31/2021
Software**	$	42,665	$	1,836	$	23	$	(13)	$	(545)	$	43,966
Consulting		6,145		713		(21)		—		(40)		6,797
Infrastructure		4,436		—		0		—		(39)		4,396
Other**		520		—		—		(37)		1		484
Total	$	53,765	$	2,549	$	2	$	(50)	$	(623)	$	55,643

* Primarily driven by foreign currency translation.

** Recast to conform to current year presentation due to segment change.