IBM 2013 Annual Report Download - page 112

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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
111
NOTE I.
INTANGIBLE ASSETS INCLUDING GOODWILL
Intangible Assets
The following table details the company’s intangible asset balances
by major asset class.
($ in millions)
At December 31, 2013:
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Intangible asset class
Capitalized software $1,494 $ (699) $ 794
Client relationships 2,148 (977) 1,171
Completed technology 2,910 (1,224) 1,687
In-process R&D 13 — 13
Patents/trademarks 358 (154) 204
Other* 7 (5) 2
To t a l $6,930 $(3,059) $3,871
($ in millions)
At December 31, 2012:
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Intangible asset class
Capitalized software $1,527 $ (665) $ 861
Client relationships 2,103 (961) 1,142
Completed technology 2,709 (1,112) 1,597
In-process R&D 28 — 28
Patents/trademarks 281 (127) 154
Other* 31 (27) 3
To t a l $6,679 $(2,892) $3,787
* Other intangibles are primarily acquired proprietary and nonproprietary business
processes, methodologies and systems.
The net carrying amount of intangible assets increased $84 million
during the year ended December 31, 2013, primarily due to intangible
asset additions resulting from acquisitions, offset by amortization. There
was no impairment of intangible assets recorded in 2013 and 2012.
Total amortization was $1,351 million and $1,284 million for the
years ended December 31, 2013 and 2012, respectively. The aggre-
gate amortization expense for acquired intangible assets (excluding
capitalized software) was $767 million and $709 million for the years
ended December 31, 2013 and 2012, respectively. In addition, in 2013
the company retired $1,177 million of fully amortized intangible
assets, impacting both the gross carrying amount and accumulated
amortization by this amount.
The amortization expense for each of the five succeeding years
relating to intangible assets currently recorded in the Consolidated
Statement of Financial Position is estimated to be the following at
December 31, 2013:
($ in millions)
Capitalized
Software
Acquired
Intangibles Tot a l
2014 $484 $784 $1,267
2015 247 637 884
2016 64 595 660
2017 — 477 477
2018 — 322 322