Intangible Assets Including Goodwill (Tables)
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3 Months Ended |
Mar. 31, 2020 |
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| Intangible Assets Including Goodwill |
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| Intangible asset balances by major asset class |
| | | | | | | | | | | | At March 31, 2020 | | | Gross Carrying | | Accumulated | | Net Carrying | (Dollars in millions) | | Amount | | Amortization | | Amount* | Intangible asset class | | | | | | | | | | Capitalized software | | $ | 1,760 | | $ | (764) | | $ | 997 | Client relationships | | | 8,854 | | | (1,669) | | | 7,185 | Completed technology | | | 6,225 | | | (1,566) | | | 4,658 | Patents/trademarks | | | 2,287 | | | (483) | | | 1,804 | Other** | | | 56 | | | (33) | | | 22 | Total | | $ | 19,181 | | $ | (4,515) | | $ | 14,666 |
| | | | | | | | | | | | At December 31, 2019 | | | Gross Carrying | | Accumulated | | Net Carrying | (Dollars in millions) | | 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 |
* Amounts as of March 31, 2020 and December 31, 2019 include a decrease in net intangible asset balances of $92 million and $42 million, respectively, due to foreign currency translation. ** | 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 | Remainder of 2020 | | $ | 415 | | $ | 1,372 | | $ | 1,787 | 2021 | | | 399 | | | 1,738 | | | 2,137 | 2022 | | | 170 | | | 1,676 | | | 1,846 | 2023 | | | 12 | | | 1,363 | | | 1,375 | 2024 | | | 0 | | | 1,313 | | | 1,313 | Thereafter | | | — | | | 6,208 | | | 6,208 |
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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 | | 1/1/2020 | | Additions | | Adjustments | | Divestitures | | Adjustments** | | 3/31/2020 | Cloud & Cognitive Software | | $ | 43,037 | | $ | 10 | | $ | 12 | | $ | — | | $ | (438) | | $ | 42,620 | Global Business Services | | | 5,775 | | | — | | | — | | | — | | | (102) | | | 5,672 | Global Technology Services | | | 7,141 | | | — | | | — | | | — | | | (167) | | | 6,974 | Systems | | | 2,270 | | | — | | | — | | | — | | | (19) | | | 2,251 | Other—divested businesses | | | — | | | — | | | — | | | — | | | — | | | — | Total | | $ | 58,222 | | $ | 10 | | $ | 12 | | $ | — | | $ | (727) | | $ | 57,517 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign | | | | | | | | | | | | | | | | | | Currency | | | | | | | | | | | | Purchase | | | | | Translation | | | | (Dollars in millions) | | Balance | | Goodwill | | Price | | | | | And Other | | Balance | Segment | | 1/1/2019 | | Additions | | Adjustments | | Divestitures | | Adjustments** | | 12/31/2019 | Cloud & Cognitive Software* | | $ | 24,463 | | $ | 18,399 | | $ | 133 | | $ | — | | $ | 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* | | | 1,256 | | | — | | | — | | | (1,256) | | | — | | | — | Total | | $ | 36,265 | | $ | 23,102 | | $ | 24 | | $ | (1,257) | | $ | 87 | | $ | 58,222 |
* Recast to conform to 2020 presentation. ** Primarily driven by foreign currency translation.
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