v3.8.0.1
Intangible Assets Including Goodwill (Tables)
 3 Months Ended
Mar. 31, 2018
Intangible Assets Including Goodwill  
Intangible asset balances by major asset class

 

 

 

At March 31, 2018

 

(Dollars in millions)

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

Intangible asset class

 

Amount

 

Amortization

 

Amount

 

Capitalized software

 

$
1,540

 

$
(746

)

$
794

 

Client relationships

 
2,329

 
(1,135

)
1,194

 

Completed technology

 
2,571

 
(1,454

)
1,117

 

Patents/trademarks

 
661

 
(274

)
387

 

Other*

 
47

 
(17

)
30

 

 

 

 

 

 

 

 

 

Total

 

$
7,149

 

$
(3,627

)

$
3,521

 

 

 

 

 

 

 

 

 

 

 

 

 

*Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems.

 

 

 

At December 31, 2017

 

(Dollars in millions)

 

Gross Carrying

 

Accumulated

 

Net Carrying

 

Intangible asset class

 

Amount

 

Amortization

 

Amount

 

Capitalized software

 

$
1,600

 

$
(790

)

$
810

 

Client relationships

 
2,358

 
(1,080

)
1,278

 

Completed technology

 
2,586

 
(1,376

)
1,210

 

Patents/trademarks

 
668

 
(256

)
413

 

Other*

 
47

 
(16

)
31

 

 

 

 

 

 

 

 

 

Total

 

$
7,260

 

$
(3,518

)

$
3,742

 

 

 

 

 

 

 

 

 

 

 

 

 

*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

 

2018 (for Q2 - Q4)

 

$
378

 

$
607

 

$
986

 

2019

 
292

 
672

 
964

 

2020

 
115

 
560

 
675

 

2021

 
8

 
446

 
454

 

2022

 

—

 
377

 
377

 

 

Changes in goodwill balances by reportable segment

 

 

 

 

 

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency

 

 

 

 

 

 

 

 

 

Purchase

 

 

 

Translation

 

 

 

(Dollars in millions)

 

Balance

 

Goodwill

 

Price

 

 

 

And Other

 

Balance

 

Segment

 

01/01/18

 

Additions

 

Adjustments

 

Divestitures

 

Adjustments*

 

3/31/18

 

Cognitive Solutions

 

$
19,665

 

$

—

 

$
0

 

$
(1

)

$
(76

)

$
19,589

 

Global Business Services

 
4,813

 

—

 

—

 

—

 
39

 
4,852

 

Technology Services & Cloud Platforms

 
10,447

 

—

 
0

 

—

 
(15

)
10,433

 

Systems

 
1,862

 

—

 

—

 

—

 
(5

)
1,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
36,788

 

$

—

 

$
0

 

$
(1

)

$
(56

)

$
36,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Primarily driven by foreign currency translation.

 

 

 

 

 

 

 

 

 

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

 

 

Currency

 

 

 

 

 

 

 

 

 

Purchase

 

 

 

Translation

 

 

 

(Dollars in millions)

 

Balance

 

Goodwill

 

Price

 

 

 

And Other

 

Balance

 

Segment

 

01/01/17

 

Additions

 

Adjustments

 

Divestitures

 

Adjustments*

 

12/31/17

 

Cognitive Solutions

 

$
19,484

 

$
3

 

$
(38

)

$
(20

)

$
235

 

$
19,665

 

Global Business Services

 
4,607

 

—

 
2

 

—

 
204

 
4,813

 

Technology Services & Cloud Platforms

 
10,258

 
13

 
(2

)

—

 
179

 
10,447

 

Systems

 
1,850

 

—

 
0

 

—

 
13

 
1,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
36,199

 

$
16

 

$
(38

)

$
(20

)

$
631

 

$
36,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Primarily driven by foreign currency translation.