Intangible Assets Including Goodwill (Tables)
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6 Months Ended |
Jun. 30, 2021 |
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| Intangible Assets Including Goodwill |
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| Intangible asset balances by major asset class |
| | | | | | | | | | | | At June 30, 2021 | | | Gross Carrying | | Accumulated | | Net Carrying | (Dollars in millions) | | Amount | | Amortization | | Amount* | Intangible asset class: | | | | | | | | | | Capitalized software | | $ | 1,866 | | $ | (863) | | $ | 1,002 | Client relationships | | | 9,183 | | | (2,517) | | | 6,666 | Completed technology | | | 6,090 | | | (1,939) | | | 4,151 | Patents/trademarks | | | 2,228 | | | (520) | | | 1,708 | Other** | | | 56 | | | (43) | | | 12 | Total | | $ | 19,421 | | $ | (5,882) | | $ | 13,539 |
| | | | | | | | | | | | At December 31, 2020 | | | Gross Carrying | | Accumulated | | Net Carrying | (Dollars in millions) | | 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 |
* Amounts as of June 30, 2021 and December 31, 2020 included a decrease in net intangible asset balances of $109 million and an increase of $279 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 2021 | | $ | 330 | | $ | 956 | | $ | 1,287 | 2022 | | | 418 | | | 1,843 | | | 2,261 | 2023 | | | 217 | | | 1,530 | | | 1,748 | 2024 | | | 37 | | | 1,481 | | | 1,518 | 2025 | | | — | | | 1,460 | | | 1,460 | Thereafter | | | — | | | 5,267 | | | 5,267 |
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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 | | 1/1/2021 | | Additions | | Adjustments | | | Divestitures | | Adjustments* | | 6/30/2021 | Cloud & Cognitive Software | | $ | 43,934 | | $ | 1,660 | | $ | 6 | | $ | (2) | | $ | (136) | | $ | 45,461 | Global Business Services | | | 6,145 | | | 616 | | | (11) | | | — | | | (43) | | | 6,706 | Global Technology Services | | | 7,245 | | | 2 | | | — | | | — | | | (62) | | | 7,184 | Systems | | | 2,293 | | | — | | | 0 | | | — | | | 0 | | | 2,293 | Total | | $ | 59,617 | | $ | 2,278 | | $ | (6) | | $ | (2) | | $ | (242) | | $ | 61,645 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign | | | | | | | | | | | | | | | | | | Currency | | | | | | | | | | | | Purchase | | | | | Translation | | | | (Dollars in millions) | | Balance | | Goodwill | | Price | | | | | and Other | | Balance | Segment | | 1/1/2020 | | Additions | | Adjustments | | | Divestitures | | Adjustments* | | 12/31/2020 | 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 |
* Primarily driven by foreign currency translation.
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