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Intangible Assets Including Goodwill | 3 Months Ended
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Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets Including Goodwill | Intangible Assets Including Goodwill: Intangible Assets The following tables present the company's intangible asset balances by major asset class.
|  | At March 31, 2025
(Dollars in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount (1)
Intangible asset class: |  |  |  |  |  |
Capitalized software |  | $ | 1,247 |  |  | $ | (409) |  |  | $ | 838 |
Client relationships |  | 10,993 |  |  | (4,695) |  |  | 6,298 |
Completed technology |  | 7,128 |  |  | (3,391) |  |  | 3,737 |
Patents/trademarks |  | 1,968 |  |  | (556) |  |  | 1,412 |
Other (2) |  | 139 |  |  | (33) |  |  | 106 |
Total |  | $ | 21,475 |  |  | $ | (9,084) |  |  | $ | 12,392 |
|  | At December 31, 2024
(Dollars in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount (1)
Intangible asset class: |  |  |  |  |  |
Capitalized software |  | $ | 1,282 |  |  | $ | (492) |  |  | $ | 790 |
Client relationships |  | 9,704 |  |  | (4,387) |  |  | 5,317 |
Completed technology |  | 6,297 |  |  | (3,164) |  |  | 3,132 |
Patents/trademarks |  | 1,826 |  |  | (519) |  |  | 1,307 |
Other (2) |  | 138 |  |  | (24) |  |  | 114 |
Total |  | $ | 19,247 |  |  | $ | (8,587) |  |  | $ | 10,660 |
(1)Amounts as of March 31, 2025 and December 31, 2024 include an increase in the net intangible asset balance of $63 million and a decrease in the net intangible asset balance of $126 million, respectively, due to foreign currency translation. (2)Other intangibles are primarily acquired proprietary and non-proprietary technology licenses, data, business processes, methodologies and systems. The net carrying amount of intangible assets increased $1,731 million during the first three months of 2025, primarily due to additions of acquired intangibles from business combinations of $2,085 million, driven by the acquisition of HashiCorp in the current quarter, and additions of capitalized software, partially offset by intangible asset amortization. The aggregate intangible asset amortization expense was $641 million and $598 million for the three months ended March 31, 2025 and 2024, respectively. During the three months ended March 31, 2025, the company retired $221 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 was estimated to be the following at March 31, 2025:
(Dollars in millions) |  | Capitalized Software |  | Acquired Intangibles |  | Total
Remainder of 2025 |  | $ | 340 |  |  | $ | 1,665 |  |  | $ | 2,005 |
2026 |  | 320 |  |  | 2,178 |  |  | 2,498 |
2027 |  | 163 |  |  | 2,135 |  |  | 2,299 |
2028 |  | 15 |  |  | 1,835 |  |  | 1,850 |
2029 |  | 0 |  |  | 1,181 |  |  | 1,181 |
Thereafter |  | — |  |  | 2,559 |  |  | 2,559 |
Goodwill The changes in the goodwill balances by segment for the three months ended March 31, 2025 and for the year ended December 31, 2024 were as follows:
(Dollars in millions) |  | Balance |  | Goodwill Additions |  | Purchase Price Adjustments |  |  |  | Foreign Currency Translation and Other Adjustments (1) |  | Balance
Segment |  | 1/1/2025 |  |  |  | Divestitures |  |  | 3/31/2025
Software |  | $ | 47,136 |  |  | $ | 4,531 |  |  | $ | 11 |  |  | $ | — |  |  | $ | 257 |  |  | $ | 51,935 |
Consulting |  | 9,206 |  |  | 487 |  |  | (3) |  |  | — |  |  | 71 |  |  | 9,760 |
Infrastructure |  | 4,363 |  |  | — |  |  | 0 |  |  | 0 |  |  | 8 |  |  | 4,371 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | 60,706 |  |  | $ | 5,018 |  |  | $ | 7 |  |  | $ | 0 |  |  | $ | 335 |  |  | $ | 66,065 |
(Dollars in millions) |  | Balance |  | Goodwill Additions |  | Purchase Price Adjustments |  |  |  | Foreign Currency Translation and Other Adjustments (1) |  | Balance
Segment |  | 1/1/2024 |  |  |  | Divestitures |  |  | 12/31/2024
Software |  | $ | 46,447 |  |  | $ | 1,511 |  |  | $ | (51) |  |  | $ | — |  |  | $ | (770) |  |  | $ | 47,136 |
Consulting |  | 8,883 |  |  | 469 |  |  | (3) |  |  | (1) |  |  | (142) |  |  | 9,206 |
Infrastructure |  | 4,384 |  |  | 8 |  |  | (1) |  |  | — |  |  | (28) |  |  | 4,363 |
Other (2) |  | 464 |  |  | — |  |  | — |  |  | (464) |  |  | — |  |  | — |
Total |  | $ | 60,178 |  |  | $ | 1,987 |  |  | $ | (55) |  |  | $ | (465) |  |  | $ | (940) |  |  | $ | 60,706 |
(1)Primarily driven by foreign currency translation. (2)In the first quarter of 2024, the company derecognized goodwill related to the divestiture of The Weather Company assets. Goodwill additions recorded in the three months ended March 31, 2025 were primarily driven by the acquisition of HashiCorp. Refer to note 5, “Acquisitions & Divestitures,” for additional information. There were no goodwill impairment losses recorded during the three months ended March 31, 2025 or the year ended December 31, 2024 and the company has no accumulated impairment losses. Purchase price adjustments recorded during the three months ended March 31, 2025 and the year ended December 31, 2024 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 in the three months ended March 31, 2025 and the year ended December 31, 2024 were not material.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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