Intangible Assets Including Goodwill (Tables)

3 Months Ended

Mar. 31, 2023

Intangible Assets Including Goodwill

Intangible asset balances by major asset class

	At March 31, 2023
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,638	$	(675)	$	962
Client relationships		8,327		(2,890)		5,438
Completed technology		5,097		(2,025)		3,073
Patents/trademarks		1,799		(370)		1,429
Other**		19		(15)		4
Total	$	16,880	$	(5,976)	$	10,905

	At December 31, 2022
	Gross Carrying		Accumulated		Net Carrying
(Dollars in millions)	Amount		Amortization		Amount*
Intangible asset class:
Capitalized software	$	1,650	$	(705)	$	945
Client relationships		8,559		(2,951)		5,608
Completed technology		5,220		(2,045)		3,175
Patents/trademarks		2,140		(688)		1,452
Other**		19		(15)		4
Total	$	17,588	$	(6,404)	$	11,184

*  Amounts as of March 31, 2023 and December 31, 2022 include an increase in net intangible asset balances of $30 million and a decrease of $198 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 2023	$	441	$	1,173	$	1,615
2024		374		1,553		1,927
2025		138		1,535		1,673
2026		9		1,512		1,520
2027		—		1,492		1,492
Thereafter		—		2,678		2,678

Changes in goodwill balances by reportable segment

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				and Other		Balance
Segment	1/1/2023		Additions		Adjustments		Divestitures		Adjustments*		3/31/2023
Software	$	43,657	$	141	$	1	$	—	$	66	$	43,865
Consulting		7,928		—		5		—		29		7,962
Infrastructure		4,363		—		—		—		2		4,366
Other		—		—		—		—		—		—
Total	$	55,949	$	141	$	6	$	—	$	97	$	56,193

									Foreign
									Currency
					Purchase				Translation
(Dollars in millions)	Balance		Goodwill		Price				and Other		Balance
Segment	1/1/2022		Additions		Adjustments		Divestitures		Adjustments*		12/31/2022
Software	$	43,966	$	568	$	(118)	$	—	$	(760)	$	43,657
Consulting		6,797		1,366		(42)		—		(192)		7,928
Infrastructure		4,396		—		—		(1)		(32)		4,363
Other**		484		—		—		(484)		—		—
Total	$	55,643	$	1,934	$	(159)	$	(485)	$	(984)	$	55,949

* Primarily driven by foreign currency translation.

** The company derecognized goodwill related to the divestiture of its healthcare software assets in the second quarter of 2022.