Intangible Assets Including Goodwill (Tables)

6 Months Ended

Jun. 30, 2022

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At June 30, 2022
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,705	$	(692)	$	1,013
Client relationships		8,187		(2,591)		5,596
Completed technology		5,562		(2,113)		3,449
Patents/trademarks		2,117		(610)		1,507
Other**		32		(25)		6
Total	$	17,604	$	(6,032)	$	11,571

	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 June 30, 2022 and December 31, 2021 included a decrease in net intangible asset balances of $235 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	$	304	$	832	$	1,136
2023		431		1,490		1,922
2024		245		1,473		1,718
2025		32		1,455		1,487
2026		0		1,438		1,438
Thereafter		0		3,871		3,871

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*		6/30/2022
Software	$	43,966	$	442	$	(108)	$	—	$	(674)	$	43,626
Consulting		6,797		461		(13)		—		(200)		7,044
Infrastructure		4,396		—		—		(1)		(27)		4,368
Other**		484		—		—		(484)		—		—
Total	$	55,643	$	903	$	(121)	$	(485)	$	(901)	$	55,039

* Primarily driven by foreign currency translation.

** The company derecognized $484 million of goodwill related to the divestiture of its healthcare software assets. Refer to note 6, “Acquisitions & Divestitures,” for additional information.

									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.