| Intangible Assets Including Goodwill |
11. Intangible Assets Including Goodwill: Intangible Assets The following tables present the company's intangible asset balances by major asset class. | | | | | | | | | | | | At March 31, 2022 | | | Gross Carrying | | Accumulated | | Net Carrying | (Dollars in millions) | | Amount | | Amortization | | Amount* | Intangible asset class: | | | | | | | | | | Capitalized software | | $ | 1,805 | | $ | (729) | | $ | 1,076 | Client relationships | | | 9,013 | | | (3,017) | | | 5,996 | Completed technology | | | 6,092 | | | (2,427) | | | 3,665 | Patents/trademarks | | | 2,192 | | | (624) | | | 1,567 | Other** | | | 38 | | | (30) | | | 8 | Total | | $ | 19,140 | | $ | (6,828) | | $ | 12,312 |
| | | | | | | | | | | | At December 31, 2021 | | | Gross Carrying | | Accumulated | | Net Carrying | (Dollars in millions) | | Amount | | Amortization | | Amount* | Intangible asset class: | | | | | | | | | | Capitalized software | | $ | 1,696 | | $ | (751) | | $ | 945 | Client relationships | | | 9,021 | | | (2,889) | | | 6,132 | Completed technology | | | 6,074 | | | (2,259) | | | 3,815 | Patents/trademarks | | | 2,196 | | | (586) | | | 1,610 | Other** | | | 44 | | | (35) | | | 9 | Total | | $ | 19,031 | | $ | (6,520) | | $ | 12,511 |
* Amounts as of March 31, 2022 and December 31, 2021 include a decrease in net intangible asset balances of $60 million and $221 million, respectively, due to foreign currency translation. ** | Other intangibles are primarily acquired proprietary and non-proprietary business processes, methodologies and systems. |
The net carrying amount of intangible assets decreased $199 million during the first three months of 2022, primarily due to intangible asset amortization, partially offset by additions of acquired intangibles and capitalized software. The aggregate intangible amortization expense was $625 million and $614 million for the quarters ended March 31, 2022 and 2021, respectively. In the first three months of 2022, the company retired $297 million of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount. The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet is estimated to be the following at March 31, 2022: | | | | | | | | | | | | Capitalized | | Acquired | | | | (Dollars in millions) | | Software | | Intangibles | | Total | Remainder of 2022 | | $ | 459 | | $ | 1,377 | | $ | 1,836 | 2023 | | | 404 | | | 1,535 | | | 1,938 | 2024 | | | 203 | | | 1,487 | | | 1,690 | 2025 | | | 10 | | | 1,470 | | | 1,480 | 2026 | | | 0 | | | 1,453 | | | 1,453 | Thereafter | | | 0 | | | 3,915 | | | 3,915 |
Goodwill The changes in the goodwill balances by segment for the three months ended March 31, 2022 and for the year ended December 31, 2021 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign | | | | | | | | | | | | | Currency | | | | | | | | | Purchase | | | | Translation | | | (Dollars in millions) | | Balance | | Goodwill | | Price | | | | and Other | | Balance | Segment | | 1/1/2022 | | Additions | | Adjustments | | Divestitures | | Adjustments* | | 3/31/2022 | Software | | $ | 43,966 | | $ | 188 | | $ | (27) | | $ | — | | $ | (99) | | $ | 44,027 | Consulting | | | 6,797 | | | 461 | | | (3) | | | — | | | (49) | | | 7,205 | Infrastructure | | | 4,396 | | | — | | | — | | | (1) | | | (5) | | | 4,390 | Other | | | 484 | | | — | | | — | | | — | | | — | | | 484 | Total | | $ | 55,643 | | $ | 649 | | $ | (31) | | $ | (1) | | $ | (153) | | $ | 56,106 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign | | | | | | | | | | | | | | Currency | | | | | | | | | Purchase | | | | Translation | | | (Dollars in millions) | | Balance | | Goodwill | | Price | | | | and Other | | Balance | Segment | | 1/1/2021 | | Additions | | Adjustments | | Divestitures | | Adjustments* | | 12/31/2021 | Software** | | $ | 42,665 | | $ | 1,836 | | $ | 23 | | $ | (13) | | $ | (545) | | $ | 43,966 | Consulting | | | 6,145 | | | 713 | | | (21) | | | — | | | (40) | | | 6,797 | Infrastructure | | | 4,436 | | | — | | | 0 | | | — | | | (39) | | | 4,396 | Other** | | | 520 | | | — | | | — | | | (37) | | | 1 | | | 484 | Total | | $ | 53,765 | | $ | 2,549 | | $ | 2 | | $ | (50) | | $ | (623) | | $ | 55,643 |
* | Primarily driven by foreign currency translation. |
** | Recast to conform to current year presentation due to segment change. |
There were no goodwill impairment losses recorded during the first three months of 2022 or full-year 2021 and the company has no accumulated impairment losses. Purchase price adjustments recorded in the first three months of 2022 and full-year 2021 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 during the first three months of 2022 and 2021 were not material.
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