12. Intangible Assets Including Goodwill:

Intangible Assets

The following table details the company’s intangible asset balances by major asset class.

	At March 31, 2019
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,665	$	(683	)	$	982
Client relationships	2,022		(1,150		)	872
Completed technology	2,032		(1,248		)	784
Patents/trademarks	635		(348		)	287
Other *	56		(25		)	30

Total	$	6,410	$	(3,454	)	$	2,956

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

	At December 31, 2018
(Dollars in millions)	Gross Carrying		Accumulated			Net Carrying
Intangible asset class	Amount		Amortization			Amount
Capitalized software	$	1,568	$	(629	)	$	939
Client relationships	2,068		(1,123		)	945
Completed technology	2,156		(1,296		)	860
Patents/trademarks	641		(330		)	311
Other *	56		(23		)	32

Total	$	6,489	$	(3,402	)	$	3,087

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

The net carrying amount of intangible assets decreased $131 million during the first quarter of 2019, primarily due to intangible asset amortization, partially offset by additions resulting from capitalized software. The aggregate intangible amortization expense was $303 million and $340 million for the quarters ended March 31, 2019 and 2018, respectively. In addition, in the first three months of 2019, the company retired $273 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount.

The amortization expense for each of the five succeeding years relating to intangible assets currently recorded in the Consolidated Statement of Financial Position is estimated to be the following at March 31, 2019:

	Capitalized		Acquired
(Dollars in millions)	Software		Intangibles		Total
2019 (for Q2 - Q4)	$	383	$	501	$	885
2020	379		565		944
2021	209		450		659
2022	11		382		393
2023	—		64		64

Goodwill

The change in the goodwill balances by segment, for the three months ended March 31, 2019 and for the year ended December 31, 2018 are as follows:

										Foreign
										Currency
					Purchase					Translation
(Dollars in millions)	Balance		Goodwill		Price					And Other			Balance
Segment	1/1/2019		Additions		Adjustments		Divestitures			Adjustments*			3/31/2019
Cloud & Cognitive Software	$	24,594	$	—	$	0	$	—		$	31		$	24,625
Global Business Services	4,711		—		0		—			(3		)	4,708
Global Technology Services	3,988		—		—		—			16			4,003
Systems	1,847		—		—		—			3			1,851
Other — divested businesses	1,126		—		—		(32		)	—			1,094

Total	$	36,265	$	—	$	0	$	(32	)	$	47		$	36,281

*Primarily driven by foreign currency translation.

											Foreign
											Currency
					Purchase						Translation
(Dollars in millions)	Balance		Goodwill		Price						And Other			Balance
Segment	1/1/2018		Additions		Adjustments			Divestitures			Adjustments**			12/31/2018
Cloud & Cognitive Software*	$	24,973	$	9	$	0		$	(1	)	$	(388	)	$	24,594
Global Business Services*	4,782		24		(3		)	—			(92		)	4,711
Global Technology Services*	4,044		—		0			—			(56		)	3,988
Systems	1,862		—		0			—			(15		)	1,847
Other — divested businesses*	1,127		1		0			0			(2		)	1,126

Total	$	36,788	$	34	$	(3	)	$	(1	)	$	(553	)	$	36,265

*Recast to conform to 2019 presentation.

**Primarily driven by foreign currency translation.

In the first quarter of 2019, the company made a number of changes to its organizational structure and management system. With these changes, the company revised its reportable segments. Goodwill was reallocated to the new reporting segments, and as a result, an impairment assessment was performed. There were no goodwill impairment losses recorded during the first three months of 2019 or the full year of 2018 and the company has no accumulated impairment losses. For further information regarding the segment change, refer to note 8, “Segments.”

Purchase price adjustments recorded in the first three months of 2019 and full year 2018 were related to acquisitions that were still subject to the measurement period that ends at the earlier of 12 months from the acquisition date or when information becomes available. Net purchase price adjustments recorded during the first three months of 2019 and full year 2018 were not material.