Intangible Assets Including Goodwill (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Intangible Assets Including Goodwill |
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| Intangible asset balances by major asset class |
| | | | | | | | | | ($ in millions) | | Gross Carrying | | Accumulated | | Net Carrying | At December 31, 2019:* | | Amount | | Amortization | | Amount | Intangible asset class | | | | | | | Capitalized software | | $ | 1,749 | | $ | (743) | | $ | 1,006 | Client relationships | | | 8,921 | | | (1,433) | | | 7,488 | Completed technology | | | 6,261 | | | (1,400) | | | 4,861 | Patents/trademarks | | | 2,301 | | | (445) | | | 1,856 | Other** | | | 56 | | | (31) | | | 24 | Total | | $ | 19,287 | | $ | (4,052) | | $ | 15,235 |
| | | | | | | | | | ($ in millions) | | Gross Carrying | | Accumulated | | Net Carrying | At December 31, 2018: | | Amount | | Amortization | | Amount | Intangible asset class | | | | | | | | | | 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 |
* Amounts as of December 31, 2019 include a decrease of $42 million in net intangible asset balances due to foreign currency translation. There was no foreign currency impact on net intangible assets for the year ended December 31, 2018. ** Other intangibles are primarily acquired proprietary and nonproprietary business processes, methodologies and systems.
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| Intangible assets acquired as allocated |
($ in millions)
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| Intangible assets, future amortization expense |
| | | | | | | | | | | | 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 |
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| Changes in goodwill balances by reportable segment |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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) | | $ | 41 | | $ | 43,037 | Global Business Services | | | 4,711 | | | 1,059 | | | 1 | | | (1) | | | 5 | | | 5,775 | Global Technology Services | | | 3,988 | | | 3,119 | | | — | | | — | | | 34 | | | 7,141 | Systems | | | 1,847 | | | 525 | | | (110) | | | — | | | 7 | | | 2,270 | Other—divested businesses | | | 1,126 | | | — | | | — | | | (1,126) | | | — | | | — | Total | | $ | 36,265 | | $ | 23,102 | | $ | 24 | | $ | (1,257) | | $ | 87 | | $ | 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.
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