IBM 2010 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2010 IBM annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies 93
Note J.
Intangible Assets Including Goodwill
Intangible Assets
The following table details the company’s intangible asset balances
by major asset class.
($ in millions)
Gross Net
Carrying Accumulated Carrying
At December 31, 2010: Amount Amortization Amount
Intangible asset class:
Capitalized software $1,558 $ (726) $ 831
Client relationships 1,709 (647) 1,062
Completed technology 2,111 (688) 1,422
In-process R&D 21 (0) 21
Patents/trademarks 211 (71) 140
Other* 39 (28) 11
Tot a l $5,649 $(2,161) $3,488
($ in millions)
Gross Net
Carrying Accumulated Carrying
At December 31, 2009: Amount Amortization Amount
Intangible asset class:
Capitalized software $1,765 $ (846) $ 919
Client relationships 1,367 (677) 690
Completed technology 1,222 (452) 770
Patents/trademarks 174 (59) 115
Other* 94 (75) 19
Tot a l $4,622 $(2,109) $2,513
* Other intangibles are primarily acquired proprietary and nonproprietary business
processes, methodologies and systems.
The net carrying amount of intangible assets increased $975 million
for the year ended December 31, 2010, primarily due to acquired
intangible asset additions, partially offset by amortization. No
impairment of intangible assets was recorded in any of the periods
presented.
Total amortization was $1,174 million and $1,221 million for the
years ended December 31, 2010 and 2009, respectively. The aggre-
gate intangible amortization expense for acquired intangibles
(excluding capitalized software) was $517 million and $489 million
for the years ended December 31, 2010 and 2009, respectively. In
addition, in 2010 the company retired $1,108 million of fully amortized
intangible assets, impacting both the gross carrying amount and
accumulated amortization for this amount.
The amortization expense for each of the five succeeding years
relating to intangible assets currently recorded in the Consolidated
Statement of Financial Position is estimated to be the following at
December 31, 2010:
($ in millions)
Capitalized Acquired
Software Intangibles Total
2011 $507 $617 $1,124
2012 256 550 806
2013 69 508 577
2014 — 366 366
2015 — 257 257