Intangible Assets Including Goodwill (Tables)
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9 Months Ended |
Sep. 30, 2019 |
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| Intangible Assets Including Goodwill |
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| Intangible asset balances by major asset class |
| | | | | | | | | | | | At September 30, 2019 | (Dollars in millions) | | Gross Carrying | | Accumulated | | Net Carrying | Intangible asset class | | Amount | | Amortization | | Amount | Capitalized software | | $ | 1,686 | | $ | (702) | | $ | 985 | Client relationships | | | 8,996 | | | (1,312) | | | 7,684 | Completed technology | | | 6,413 | | | (1,386) | | | 5,027 | Patents/trademarks | | | 2,291 | | | (401) | | | 1,890 | Other* | | | 56 | | | (29) | | | 26 | Total | | $ | 19,443 | | $ | (3,830) | | $ | 15,613 |
* 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.
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| Intangible assets, future amortization expense |
| | | | | | | | | | | | Capitalized | | Acquired | | | | (Dollars in millions) | | Software | | Intangibles | | Total | 2019 (for Q4) | | $ | 149 | | $ | 473 | | $ | 623 | 2020 | | | 471 | | | 1,850 | | | 2,321 | 2021 | | | 296 | | | 1,745 | | | 2,041 | 2022 | | | 66 | | | 1,681 | | | 1,748 | 2023 | | | 1 | | | 1,367 | | | 1,368 |
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| 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* | | 9/30/2019 | Cloud & Cognitive Software | | $ | 24,594 | | $ | 18,399 | | $ | 0 | | $ | — | | $ | (174) | | $ | 42,819 | Global Business Services | | | 4,711 | | | 1,059 | | | 1 | | | (1) | | | (76) | | | 5,694 | Global Technology Services | | | 3,988 | | | 3,119 | | | — | | | — | | | (41) | | | 7,066 | Systems | | | 1,847 | | | 525 | | | — | | | — | | | (1) | | | 2,372 | Other — divested businesses | | | 1,126 | | | — | | | — | | | (1,126) | | | — | | | — | Total | | $ | 36,265 | | $ | 23,102 | | $ | 1 | | $ | (1,126) | | $ | (291) | | $ | 57,951 |
* 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.
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