Intangible Assets Including Goodwill (Tables)

9 Months Ended

Sep. 30, 2022

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At September 30, 2022
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,697	$	(720)	$	977
Client relationships		8,051		(2,763)		5,288
Completed technology		5,490		(2,242)		3,248
Patents/trademarks		2,093		(645)		1,448
Other**		32		(27)		5
Total	$	17,364	$	(6,397)	$	10,967

	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 September 30, 2022 and December 31, 2021 included a decrease in net intangible asset balances of $389 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	$	157	$	405	$	562
2023		472		1,469		1,941
2024		286		1,452		1,737
2025		63		1,434		1,497
2026		—		1,417		1,417
Thereafter		—		3,813		3,813

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*		9/30/2022
Software	$	43,966	$	442	$	(118)	$	—	$	(1,290)	$	43,001
Consulting		6,797		461		(42)		—		(343)		6,872
Infrastructure		4,396		—		—		(1)		(50)		4,345
Other**		484		—		—		(484)		—		—
Total	$	55,643	$	903	$	(160)	$	(485)	$	(1,683)	$	54,218

* 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.