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

* Amounts as of December 31, 2019 include a decrease of $42 million in net intangible asset balances due to foreign currency translation. There was no foreign currency impact on net intangible assets for the year ended December 31, 2018.

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

The net carrying amount of intangible assets increased $12,147 million during the year ended December 31, 2019, primarily due to the acquisition of Red Hat and additions resulting from capitalized software, partially offset by intangible asset amortization. Intangible assets of $13,472 million generated from the acquisition of Red Hat were allocated to the segments as follows:


($ in millions)	Intangible Assets
Segment	Allocated*
Cloud & Cognitive Software	$	10,729
Global Technology Services		1,819
Global Business Services		617
Systems		306
Total	$	13,472

* For additional information on the acquisition of Red Hat, refer to note E, “Acquisitions & Divestitures.”

There was no impairment of intangible assets recorded in 2019 and 2018. The aggregate intangible amortization expense was $1,850 million and $1,353 million for the years ended December 31, 2019 and 2018, respectively. In addition, in 2019 and 2018, respectively, the company retired $946 million and $1,469 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. In 2019, the company divested select intangible assets with a gross carrying amount of $335 million and $260 million of accumulated amortization.

The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet is estimated to be the following at December 31, 2019:


	Capitalized		Acquired
($ in millions)	Software		Intangibles		Total
2020	$	529	$	1,855	$	2,384
2021		352		1,747		2,099
2022		123		1,684		1,808
2023		1		1,371		1,372
2024		0		1,322		1,322
Thereafter		—		6,250		6,250

Goodwill

The changes in the goodwill balances by reportable segment, for the years ended December 31, 2019 and 2018, are as follows:

Foreign

Currency

Balance

Purchase

Translation

Balance

($ in millions)

January 1,

Goodwill

Price

and Other

December 31,

Segment

2019

Additions

Adjustments

Divestitures

Adjustments**

2019

Cloud & Cognitive Software

24,594

18,399

133

(131)

43,037

Global Business Services

4,711

1,059

(1)

5,775

Global Technology Services

3,988

3,119

—

7,141

Systems

1,847

525

(110)

—

2,270

Other—divested businesses

1,126

—

(1,126)

—

Total

36,265

23,102

(1,257)

58,222


									Foreign
									Currency
	Balance				Purchase				Translation		Balance
($ in millions)	January 1,		Goodwill		Price				and Other		December 31,
Segment	2018		Additions		Adjustments		Divestitures		Adjustments**		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.

Goodwill additions recorded during 2019 were related to the acquisition of Red Hat in the third quarter of 2019. For additional information on this transaction and related purchase price adjustments, refer to note E, “Acquisitions & Divestitures.”

There were no goodwill impairment losses recorded during 2019 or 2018 and the company has no accumulated impairment losses.

Purchase price adjustments recorded in 2019 and 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 in 2019 and 2018 were not material.