v3.25.2
Intangible Assets Including Goodwill
 6 Months Ended
Jun. 30, 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 June 30, 2025
(Dollars in millions)Gross Carrying
Amount		Accumulated
Amortization
Net Carrying
Amount (1)
Intangible asset class:
Capitalized software$1,290 $(405)$885 
Client relationships11,221 (5,073)6,148 
Completed technology7,364 (3,642)3,722 
Patents/trademarks2,003 (603)1,399 
Other (2)
138 (39)99 
Total$22,016 $(9,763)$12,253 
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 relationships9,704 (4,387)5,317 
Completed technology6,297 (3,164)3,132 
Patents/trademarks1,826 (519)1,307 
Other (2)
138 (24)114 
Total$19,247 $(8,587)$10,660 
(1)Amounts at June 30, 2025 and December 31, 2024 include an increase in the net intangible asset balance of $190 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 $1,593 million during the first six months of 2025, primarily due to additions of acquired intangibles from business combinations of $2,329 million, primarily driven by the acquisition of HashiCorp in the first quarter of 2025 and additions of capitalized software, partially offset by intangible asset amortization. The aggregate intangible asset amortization expense was $687 million and $1,328 million for the three and six months ended June 30, 2025 and $607 million and $1,205 million for the three and six months ended June 30, 2024, respectively. During the six months ended June 30, 2025, the company retired $392 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 June 30, 2025:
(Dollars in millions)Capitalized
Software		Acquired
Intangibles		Total
Remainder of 2025$246 $1,146 $1,392 
2026377 2,246 2,623 
2027219 2,203 2,423 
202843 1,898 1,941 
20290 1,231 1,231 
Thereafter— 2,643 2,643 
Goodwill
The changes in the goodwill balances by segment for the six months ended June 30, 2025 and for the year ended December 31, 2024 were as follows:
(Dollars in millions)BalanceGoodwill
Additions
Purchase
Price
Adjustments
Foreign
Currency
Translation
and Other
Adjustments (1)
Balance
Segment1/1/2025Divestitures6/30/2025
Software$47,136 $4,994 $12 $— $912 $53,054 
Consulting9,206 613 11 — 230 10,059 
Infrastructure4,363 — 0 0 31 4,393 
Other— — — — — — 
Total$60,706 $5,607 $22 $0 $1,172 $67,506 
(Dollars in millions)BalanceGoodwill
Additions
Purchase
Price
Adjustments
Foreign
Currency
Translation
and Other
Adjustments (1)
Balance
Segment
1/1/2024Divestitures12/31/2024
Software
$46,447 $1,511 $(51)$— $(770)$47,136 
Consulting
8,883 469 (3)(1)(142)9,206 
Infrastructure4,384 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 six months ended June 30, 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 six months ended June 30, 2025 or the year ended December 31, 2024 and the company has no accumulated impairment losses. Purchase price adjustments recorded during the six months ended June 30, 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 six months ended June 30, 2025 and the year ended December 31, 2024 were not material.