Intangible Assets Including Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Intangible Assets Including Goodwill

Intangible asset balances by major asset class


($ in millions)
		Gross Carrying			Accumulated			Net Carrying
At December 31, 2020:		Amount			Amortization			Amount		*
Intangible asset class
Capitalized software		$	1,777		$	(814)		$	963
Client relationships			8,838			(2,056)			6,783
Completed technology			5,957			(1,671)			4,286
Patents/trademarks			2,246			(499)			1,747
Other**			56			(39)			16
Total		$	18,874		$	(5,079)		$	13,796

*	Includes an increase in net intangible asset balance of $279 million due to foreign currency translation.

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


($ 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

*	Includes a decrease in net intangible asset balance of $42 million due to foreign currency translation.

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

Intangible assets, future amortization expense


		Capitalized			Acquired
($ in millions)		Software			Intangibles			Total
2021		$	544		$	1,809		$	2,353
2022			305			1,746			2,051
2023			114			1,432			1,546
2024			0			1,382			1,383
2025			—			1,364			1,364
Thereafter			—			5,099			5,099

Changes in goodwill balances by reportable segment


($ in millions)
														Foreign
														Currency
								Purchase						Translation
		Balance at			Goodwill			Price						and Other			Balance at
Segment		January 1, 2020			Additions			Adjustments			Divestitures			Adjustments		**	December 31, 2020
Cloud & Cognitive Software		$	43,037		$	362		$	(139)		$	—		$	675		$	43,934
Global Business Services			5,775			205			—			—			165			6,145
Global Technology Services			7,141			—			—			—			104			7,245
Systems			2,270			8			—			—			15			2,293
Total		$	58,222		$	575		$	(139)		$	—		$	960		$	59,617


($ in millions)
														Foreign
														Currency
								Purchase						Translation
		Balance at			Goodwill			Price						and Other			Balance at
Segment		January 1, 2019			Additions			Adjustments			Divestitures			Adjustments		**	December 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.