Intangible Assets Including Goodwill (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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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, 2022: | | Amount | | Amortization | | Amount | * | Intangible asset class | | | | | | | | | | | Capitalized software | | $ | 1,650 | | $ | (705) | | $ | 945 | | Client relationships | | | 8,559 | | | (2,951) | | | 5,608 | | Completed technology | | | 5,220 | | | (2,045) | | | 3,175 | | Patents/trademarks | | | 2,140 | | | (688) | | | 1,452 | | Other** | | | 19 | | | (15) | | | 4 | | Total | | $ | 17,588 | | $ | (6,404) | | $ | 11,184 | | | | | | | | | | | | |
* | Includes a decrease in net intangible asset balance of $198 million due to foreign currency translation. |
** | Other intangibles are primarily acquired proprietary and nonproprietary business processes, methodologies and systems. |
| | | | | | | | | | | ($ in millions) | | | | | | | | | | | | | Gross Carrying | | Accumulated | | Net Carrying | | At December 31, 2021: | | 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 | | | | | | | | | | | | |
* | Includes a decrease in net intangible asset balance of $221 million due to foreign currency translation. |
** | Other intangibles are primarily acquired proprietary and nonproprietary business processes, methodologies and systems. |
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| Intangible assets, future amortization expense |
| | | | | | | | | | | | Capitalized | | Acquired | | | | ($ in millions) | | Software | | Intangibles | | Total | 2023 | | $ | 514 | | $ | 1,571 | | $ | 2,085 | 2024 | | | 328 | | | 1,554 | | | 1,881 | 2025 | | | 103 | | | 1,535 | | | 1,639 | 2026 | | | 0 | | | 1,512 | | | 1,512 | 2027 | | | — | | | 1,493 | | | 1,493 | Thereafter | | | — | | | 2,574 | | | 2,574 | | | | | | | | | | |
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| Changes in goodwill balances by reportable segment |
| | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign | | | | | | | | | | | | | | | | | | | Currency | | | | | | | | | | | | Purchase | | | | | Translation | | | | | | Balance at | | Goodwill | | Price | | | | | and Other | | Balance at | | Segment | | January 1, 2022 | | Additions | | Adjustments | | Divestitures | | Adjustments | * | December 31, 2022 | | Software | | $ | 43,966 | | $ | 568 | | $ | (118) | | $ | — | | $ | (760) | | $ | 43,657 | | Consulting | | | 6,797 | | | 1,366 | | | (42) | | | — | | | (192) | | | 7,928 | | Infrastructure | | | 4,396 | | | — | | | — | | | (1) | | | (32) | | | 4,363 | | Other** | | | 484 | | | — | | | — | | | (484) | | | — | | | — | | Total | | $ | 55,643 | | $ | 1,934 | | $ | (159) | | $ | (485) | | $ | (984) | | $ | 55,949 | | | | | | | | | | | | | | | | | | | | | |
* | Primarily driven by foreign currency translation. |
** | The company derecognized $484 million of goodwill related to the divestiture of its healthcare software assets. Refer to note F, “Acquisitions & Divestitures,” for additional information. |
| | | | | | | | | | | | | | | | | | | | ($ in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign | | | | | | | | | | | | | | | | | | | Currency | | | | | | | | | | | | Purchase | | | | | Translation | | | | | | Balance at | | Goodwill | | Price | | | | | and Other | | Balance at | | Segment | | January 1, 2021 | | Additions | | Adjustments | | Divestitures | | Adjustments | * | December 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 2022 presentation. |
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