v3.19.1
Intangible Assets Including Goodwill (Tables)
 3 Months Ended
Mar. 31, 2019
Intangible Assets Including Goodwill  
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.

 

 

Intangible assets, future amortization expense

 

 

 

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

 

 

Changes in goodwill balances by reportable segment

 

 

 

 

 

 

 

 

 

 

 

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.