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Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
111
Goodwill
The changes in the goodwill balances by reportable segment, for the years ended December31, 2015 and 2014, are as follows:
($ inmillions)
Segment
Balance
January1,
2015
Goodwill
Additions
Purchase
Price
Adjustments Divestitures
Foreign
Currency
Transl ation
and Other
Adjustments*
Balance
December 31,
2015
Global Business Services $ 4,555 $ 74 $ 0 $ (1) $ (232) $ 4,396
Global Technology Services 3,530 694 0 — (90) 4,133
Software 21,000 1,413 (2) (25) (741) 21,644
Systems Hardware 1,472 410 0 — (33) 1,848
Total $30,556 $2,590 $ (3) $(26) $(1,096) $32,021
* Primarily driven by foreign currency translation.
($ inmillions)
Segment
Balance
January1,
2014
Goodwill
Additions
Purchase
Price
Adjustments Divestitures
Foreign
Currency
Transl ation
and Other
Adjustments**
Balance
December 31,
2014
Global Business Services* $ 4,855 $ — $ 0 $ (52) $(248) $ 4,555
Global Technology Services* 3,608 11 21 (2) (108) 3,530
Software 21,121 430 $(17) (19) (516) 21,000
Systems Hardware 1,601 — — (110) (19) 1,472
Total $31,184 $442 $ 4 $(183) $(891 ) $30,556
* Reclassified to conform with 2015 presentation with $469million reclassified from GTS to GBS at December 31, 2014 for Global Process Services.
** Primarily driven by foreign currency translation.
Purchase price adjustments recorded in 2015 and 2014 were
related to acquisitions that were completed on or prior to Decem-
ber31, 2014 or December31, 2013, respectively, and were still
subject to the measurement period that ends at the earlier of 12
months from the acquisition date or when information becomes
available. There were no goodwill impairment losses recorded
in 2015 or 2014 and the company has no accumulated goodwill
impairment losses.
NOTEJ.
BORROWINGS
Short-Term Debt
($ inmillions)
At December 31: 2015 2014
Commercial paper $ 600 $ 650
Short-term loans 590 480
Long-term debt—current maturities 5,271 4,601*
Total $6,461 $5,731 *
* Reclassified to reflect adoption of the FASB guidance on debt issuance costs
in consolidated financial statements. Refer to noteB, “Accounting Changes,” for
additional information.
The weighted-average interest rate for commercial paper at
December31, 2015 and 2014 was 0.4percent and 0.1percent,
respectively. The weighted-average interest rates for short-term
loans was 5.2percent and 4.0percent at December31, 2015 and
2014, respectively.