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Acquisitions/Divestitures (Tables) - Red Hat, Inc.
9 Months Ended
Sep. 30, 2020
Acquisitions/Divestitures  
Business acquisition, purchase price allocation

Amortization

Allocated

(Dollars in millions)

    

Life (in years)

    

Amount

Current assets*

$

3,186

Property, plant and equipment/noncurrent assets

 

948

Intangible assets:

Goodwill

 

N/A

 

22,985

Client relationships

 

10

 

7,215

Completed technology

 

9

 

4,571

Trademarks

 

20

 

1,686

Total assets acquired

$

40,592

Current liabilities**

 

1,395

Noncurrent liabilities

 

4,117

Total liabilities assumed

$

5,512

Total purchase price

$

35,080

*

Includes $2.2 billion of cash and cash equivalents.

**

Includes $485 million of short-term debt related to the convertible notes acquired from Red Hat that were recognized at their fair value on the acquisition date, which was fully settled as of October 1, 2019.

Business acquisition, goodwill segment allocation

(Dollars in billions)

    

Goodwill

Segment

 

Allocated* 

Cloud & Cognitive Software

$

18.4

Global Technology Services

 

3.1

Global Business Services

 

1.1

Systems

 

0.4

Total

$

23.0

*

It is expected that approximately six percent of the goodwill will be deductible for tax purposes.

Business acquisition, pro forma information

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in millions)

    

2019

2019

Revenue

$

18,567

$

57,424

Net income

$

2,249

$

5,664