Kyndryl (KD) 10-Q8 Nov 232024 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 01, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Entity File Number	001-40853
Entity Registrant Name	Kyndryl Holdings, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	86-1185492
Entity Address, Address Line One	One Vanderbilt Avenue, 15th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10017
City Area Code	212
Local Phone Number	896-2098
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	KD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		229,463,899
Entity Central Index Key	0001867072
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED INCOME STATEMENT - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED INCOME STATEMENT
Revenues	$ 4,073	$ 4,179	$ 8,266	$ 8,467
Cost of services	3,422	3,613	6,871	7,290
Selling, general and administrative expenses	634	706	1,353	1,400
Workforce rebalancing charges	39	3	97	6
Transaction-related costs	48	68	89	171
Interest expense	31	19	61	38
Other expense (income)	8	(10)	13	(13)
Total costs and expenses	4,182	4,399	8,484	8,892
Income (loss) before income taxes	(109)	(219)	(218)	(425)
Provision for income taxes	33	61	65	107
Net income (loss)	$ (142)	$ (281)	$ (283)	$ (531)
NET LOSS PER SHARE
Basic earnings (loss) per share (in dollars per share)	$ (0.62)	$ (1.24)	$ (1.24)	$ (2.35)
Diluted earnings (loss) per share (in dollars per share)	$ (0.62)	$ (1.24)	$ (1.24)	$ (2.35)
Weighted-average basic shares outstanding (in shares)	229.1	226.8	228.5	226
Weighted-average diluted shares outstanding (in shares)	229.1	226.8	228.5	226

CONSOLIDATED INCOME STATEMENT (

CONSOLIDATED INCOME STATEMENT (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue	$ 4,073	$ 4,179	$ 8,266	$ 8,467
Cost of services	$ 3,422	3,613	$ 6,871	7,290
Related Party
Revenue		82		287
Cost of services		$ 421		$ 1,382

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (142)	$ (281)	$ (283)	$ (531)
Other comprehensive income (loss), before tax:
Foreign currency translation adjustments	(109)	(221)	(125)	(488)
Unrealized gains (losses) arising during the period	11		26	(5)
Reclassification of (gains) losses to net income	(4)		(5)	(1)
Total unrealized gains (losses) on cash flow hedges	7		21	(6)
Retirement-related benefit plans:
Amortization of prior service (credits) costs			1
Amortization of net (gains) losses	1	10	3	20
Total retirement-related benefit plans	1	10	4	20
Other comprehensive income (loss), before tax	(101)	(211)	(100)	(474)
Income tax (expense) benefit related to items of other comprehensive income (loss)	(3)	(3)	(5)	(4)
Other comprehensive income (loss), net of tax	(105)	(214)	(104)	(478)
Total comprehensive income (loss)	$ (247)	$ (495)	$ (388)	$ (1,009)

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,408	$ 1,847
Restricted cash	3	12
Accounts receivable (net of allowances for credit losses of $28 at September 30, 2023 and $32 at March 31, 2023)	1,663	1,523
Deferred costs (current portion)	952	1,070
Prepaid expenses and other current assets	566	510
Total current assets	4,593	4,963
Property and equipment, net	2,646	2,779
Operating right-of-use assets, net	898	964
Deferred costs (noncurrent portion)	1,031	1,166
Deferred taxes	186	248
Goodwill	806	812
Intangible assets, net	188	171
Pension assets	97	94
Other noncurrent assets	158	267
Total assets	10,602	11,464
Current liabilities:
Accounts payable	1,246	1,774
Value-added tax and income tax liabilities	308	347
Current portion of long-term debt	121	110
Accrued compensation and benefits	609	533
Deferred income (current portion)	790	820
Operating lease liabilities (current portion)	274	316
Accrued contract costs	509	346
Other accrued expenses and liabilities	628	624
Total current liabilities	4,485	4,868
Long-term debt	3,123	3,111
Retirement and nonpension postretirement benefit obligations	481	504
Deferred income (noncurrent portion)	316	362
Operating lease liabilities (noncurrent portion)	660	707
Other noncurrent liabilities	423	450
Total liabilities	9,489	10,002
Commitments and contingencies
Stockholders' equity
Common stock, par value $0.01 per share, and additional paid-in capital (shares authorized: 1,000.0; shares issued: September 30, 2023 - 232.2, March 31, 2023 - 229.6)	4,476	4,428
Accumulated deficit	(2,262)	(1,978)
Treasury stock, at cost (shares: September 30, 2023 - 2.8, March 31, 2023 - 1.9)	(35)	(23)
Accumulated other comprehensive income (loss)	(1,167)	(1,062)
Total stockholders' equity before non-controlling interests	1,013	1,365
Non-controlling interests	100	97
Total equity	1,113	1,462
Total liabilities and equity	$ 10,602	$ 11,464

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2023	Mar. 31, 2023
CONSOLIDATED BALANCE SHEET
Notes and accounts receivable - trade, allowances	$ 28	$ 32
Common Stock, Par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares authorized (in shares)	1,000	1,000
Common Stock, Shares issued (in shares)	232.2	229.6
Treasury Stock (in shares)	2.8	1.9

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ (283)	$ (531)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation of property, equipment and capitalized software	431	449
Depreciation of right-of-use assets	173	191
Amortization of transition costs and prepaid software	631	584
Amortization of capitalized contract costs	281	222
Amortization of acquisition-related intangible assets	15	25
Stock-based compensation	48	54
Deferred taxes	51	41
Net (gain) loss on asset sales and other	22	21
Change in operating assets and liabilities:
Deferred costs (excluding amortization)	(699)	(738)
Right-of-use assets and liabilities (excluding depreciation)	(195)	(193)
Workforce rebalancing liabilities	(18)	(1)
Receivables	(110)	471
Accounts payable	(494)	181
Taxes	(55)	33
Other assets and other liabilities	75	(316)
Net cash provided by (used in) operating activities	(127)	491
Cash flows from investing activities:
Capital expenditures	(275)	(466)
Proceeds from disposition of property and equipment	119	10
Other investing activities, net	(53)	(60)
Net cash used in investing activities	(208)	(516)
Cash flows from financing activities:
Debt repayments	(67)	(56)
Common stock repurchases for tax withholdings	(12)	(13)
Other financing activities, net	(1)
Net cash provided by (used in) financing activities	(80)	(69)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(33)	(160)
Net change in cash, cash equivalents and restricted cash	(448)	(253)
Cash, cash equivalents and restricted cash at beginning of period	1,860	2,154
Cash, cash equivalents and restricted cash at end of period	1,412	1,901
Supplemental data
Income taxes paid, net of refunds received	88	37
Interest paid on debt	$ 59	$ 34

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Millions, $ in Millions	Common Stock and Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Accumulated Deficit	Non-Controlling Interests	Total
Balance at the beginning of the period at Mar. 31, 2022	$ 4,315	$ (1,089)	$ (4)	$ (605)	$ 94	$ 2,711
Balance at the beginning of the period (in shares) at Mar. 31, 2022	224.5
Equity
Net income (loss)				(531)		(531)
Other comprehensive income (loss), net of tax		(478)				(478)
Common stock issued under employee plans	$ 54					54
Common stock issued under employee plans (in shares)	3.3
Purchases of treasury stock			(13)			(13)
Purchases of treasury stock (in shares)	(1.1)
Changes in non-controlling interests					3	3
Balance at the end of the period at Sep. 30, 2022	$ 4,370	(1,567)	(17)	(1,136)	96	1,746
Balance at the end of the period (in shares) at Sep. 30, 2022	226.8
Balance at the beginning of the period at Jun. 30, 2022	$ 4,341	(1,353)	(17)	(855)	95	2,211
Balance at the beginning of the period (in shares) at Jun. 30, 2022	226.7
Equity
Net income (loss)				(281)		(281)
Other comprehensive income (loss), net of tax		(214)				(214)
Common stock issued under employee plans	$ 28					28
Common stock issued under employee plans (in shares)	0.1
Changes in non-controlling interests					2	2
Balance at the end of the period at Sep. 30, 2022	$ 4,370	(1,567)	(17)	(1,136)	96	1,746
Balance at the end of the period (in shares) at Sep. 30, 2022	226.8
Balance at the beginning of the period at Mar. 31, 2023	$ 4,428	(1,062)	(23)	(1,978)	97	1,462
Balance at the beginning of the period (in shares) at Mar. 31, 2023	227.7
Equity
Net income (loss)				(283)		(283)
Other comprehensive income (loss), net of tax		(104)				(104)
Common stock issued under employee plans	$ 48					48
Common stock issued under employee plans (in shares)	2.6
Purchases of treasury stock			(12)			(12)
Purchases of treasury stock (in shares)	0.9
Changes in non-controlling interests					3	3
Balance at the end of the period at Sep. 30, 2023	$ 4,476	(1,167)	(35)	(2,262)	100	1,113
Balance at the end of the period (in shares) at Sep. 30, 2023	229.5
Balance at the beginning of the period at Jun. 30, 2023	$ 4,451	(1,062)	(30)	(2,119)	99	1,338
Balance at the beginning of the period (in shares) at Jun. 30, 2023	228.6
Equity
Net income (loss)				(142)		(142)
Other comprehensive income (loss), net of tax		(105)				(105)
Common stock issued under employee plans	$ 25					25
Common stock issued under employee plans (in shares)	1.2
Purchases of treasury stock			(5)			(5)
Purchases of treasury stock (in shares)	0.4
Changes in non-controlling interests					1	1
Balance at the end of the period at Sep. 30, 2023	$ 4,476	$ (1,167)	$ (35)	$ (2,262)	$ 100	$ 1,113
Balance at the end of the period (in shares) at Sep. 30, 2023	229.5

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2023
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Description of Business Kyndryl Holdings, Inc. (“we”, “the Company” or “Kyndryl”) is a leading technology services company and the largest IT infrastructure services provider in the world, serving as a partner to thousands of enterprise customers whose operations span over 100 countries. Prior to November 3, 2021, the Company was wholly owned by International Business Machines Corporation (“IBM” or “former Parent”). In November 2021, our former Parent effected the spin-off (the “Separation” or the “Spin-off”) of the infrastructure services unit of its Global Technology Services (“GTS”) segment through the distribution of shares of Kyndryl’s common stock to IBM stockholders. In connection with the Separation, the Company entered into several agreements with IBM that govern the relationship of the parties following the Separation. Kyndryl’s stock began trading as an independent company on November 4, 2021. Basis of Presentation The accompanying Consolidated Financial Statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management believes the accompanying financial statements include all adjustments necessary to present fairly the Company’s financial position and its results of operations for all the periods presented. The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report for the fiscal year ended March 31, 2023. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts. Principles of Consolidation The accompanying financial statements are presented on a consolidated basis. All significant transactions and intercompany accounts between Kyndryl entities were eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts that are reported in the consolidated financial statements and accompanying disclosures. Estimates are used in determining the following, among others: revenue, costs to complete service contracts, income taxes, pension assumptions, valuation of assets including goodwill and intangible assets, the depreciable and amortizable lives of long-lived assets, loss contingencies, allowance for credit losses and deferred transition costs. Actual results may differ from these estimates. The Company uses the estimated annual effective tax rate method in computing its interim tax provision in accordance with U.S. GAAP. The estimated annual effective tax rate is applied to the year-to-date ordinary income, exclusive of discrete items, to arrive at the reported interim tax provision.

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING PRONOUNCEMENTS	6 Months Ended
ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2023
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS	NOTE 2. ACCOUNTING PRONOUNCEMENTS Recent Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 In September 2022, the FASB amended its guidance related to supplier finance programs. The amended guidance requires additional disclosures surrounding the use of supplier finance programs to purchase goods or services, including disclosing the key terms of the programs, the amount of obligations outstanding at the end of the reporting period, and a roll-forward of those obligations. The new guidance, except the roll-forward information, is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The requirement to present roll-forward information is effective for fiscal years beginning after December 15, 2023. The Company adopted the guidance at the beginning of fiscal year 2024. The Company did not have any outstanding obligations under supplier finance programs in the periods presented. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common-Control Arrangements In August 2023, the FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
REVENUE RECOGNITION	Sep. 30, 2023
REVENUE RECOGNITION
REVENUE RECOGNITION	NOTE 3. REVENUE RECOGNITION Disaggregation of Revenue The Company views its segment results to be the best view of disaggregated revenue. Refer to Note 4 – Segments. Remaining Performance Obligations The remaining performance obligation (“RPO”) represents the aggregate amount of contractual deliverables yet to be recognized as revenue at the end of the reporting period. It is intended to be a statement of overall work under contract that has not yet been performed and does not include contracts for which the customer is not committed. The customer is not considered committed when it is able to terminate for convenience without payment of a substantive penalty. The RPO also includes estimates of variable consideration. RPO estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustments for revenue that has not materialized and adjustments for currency. At September 30, 2023, the aggregate amount of RPO related to customer contracts that are unsatisfied or partially unsatisfied was $34.0 billion. Approximately 58 percent of the amount is expected to be recognized as revenue in the next two years, approximately 35 percent in the subsequent three years, and the balance thereafter. During the three and six months ended September 30, 2023, revenue was increased by $2 million and $15 million, respectively, and during the three and six months ended September 30, 2022, revenue was increased by $4 million and $3 million, respectively, for performance obligations satisfied (or partially satisfied) in previous periods, mainly due to changes in estimates on contracts with cost-to-cost measures of progress. Contract Balances The following table provides information about accounts receivable, contract assets and deferred income balances: September 30, March 31, (Dollars in millions) 2023 2023 Accounts receivable (net of allowances for credit losses of $28 at September 30, 2023 and $32 at March 31, 2023) * $ 1,663 $ 1,523 Contract assets ** 35 30 Deferred income (current) 790 820 Deferred income (noncurrent) 316 362 * Including unbilled receivable balances of $458 million at September 30, 2023 and $384 million at March 31, 2023. ** Contract assets represent goods or services delivered by the Company, which give the Company the right to consideration that is typically subject to milestone completion or client acceptance and are included within prepaid expenses and other current assets in the Consolidated Balance Sheet. The amount of revenue recognized during the three and six months ended September 30, 2023 that was included within the deferred income balance at the beginning of the period was $176 million and $360 million, respectively. The amount of revenue recognized during the three and six months ended September 30, 2022 that was included within the deferred income balance at the beginning of the period was $184 million and $367 million, respectively. The following table provides roll-forwards of the accounts receivable allowance for credit losses for the six months ended September 30, 2023 and 2022. Six Months Ended September 30, (Dollars in millions) 2023 2022 Beginning balance $ 32 $ 44 Additions (releases) — 2 Write-offs (3) (5) Other * (1) (7) Ending balance $ 28 $ 33 * Primarily represents currency translation adjustments . The contract assets allowance for credit losses was not material in any of the periods presented. Major Clients No single client represented more than 10 percent of the Company’s total revenue during the three and six months ended September 30, 2023 and 2022. Other than receivables due from our former Parent, no single client represented more than 10 percent of the Company’s total accounts receivable balance as of September 30, 2023 or March 31, 2023. Deferred Costs Costs to acquire and fulfill customer contracts are deferred and amortized over the contract period or expected customer relationship life. The expected customer relationship period is determined based on the average customer relationship period, including expected renewals, for each offering type and ranges from three The following table provides amounts of capitalized costs to acquire and fulfill customer contracts at September 30, 2023 and March 31, 2023: September 30, March 31, (Dollars in millions) 2023 2023 Deferred transition costs $ 778 $ 856 Prepaid software costs 705 782 Capitalized costs to fulfill contracts 219 285 Capitalized costs to obtain contracts 281 313 Total deferred costs * $ 1,983 $ 2,236 * Of the total deferred costs, $952 million was current and $1,031 million was noncurrent at September 30, 2023, and $1,070 million was current and $1,166 million was noncurrent at March 31, 2023. The amount of total deferred costs amortized for the three months ended September 30, 2023 was $449 million, composed of $88 million of amortization of deferred transition costs, $218 million of amortization of prepaid software and $143 million of amortization of capitalized contract costs. The amount of total deferred costs amortized for the six months ended September 30, 2023 was $912 million, composed of $173 million of amortization of deferred transition costs, $459 million of amortization of prepaid software and $281 million of amortization of capitalized contract costs.

SEGMENTS

SEGMENTS	6 Months Ended
SEGMENTS	Sep. 30, 2023
SEGMENTS
SEGMENTS	NOTE 4. SEGMENTS Our reportable segments correspond to how the chief operating decision maker (“CODM”) reviews performance and allocates resources. Our four reportable segments consist of the following: United States: Japan: Principal Markets: Strategic Markets: The measure of segment operating performance used by Kyndryl’s CODM is adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased and owned fixed assets, charges related to lease terminations, transaction-related costs, pension expenses other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges, impairment expense, significant litigation costs, and currency impacts of highly inflationary countries. The use of revenue and adjusted EBITDA aligns with how the CODM assesses performance and allocates resources for the Company’s segments. Our geographic markets frequently work together to sell and implement certain contracts. The resulting revenues and costs from these contracts may be apportioned among the participating geographic markets. The economic environment and its effects on the industries served by our geographic markets affect revenues and operating expenses within our geographic markets to differing degrees. Currency fluctuations also tend to affect our geographic markets differently, depending on the geographic concentrations and locations of their businesses. The following table reflects the results of the Company’s segments: Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2023 2022 2023 2022 Revenue United States $ 1,108 $ 1,149 $ 2,272 $ 2,317 Japan 569 614 1,180 1,249 Principal Markets 1,465 1,472 2,949 2,988 Strategic Markets 930 944 1,865 1,914 Total revenue $ 4,073 $ 4,179 $ 8,266 $ 8,467 Segment adjusted EBITDA United States $ 176 $ 167 $ 412 $ 367 Japan 84 113 184 228 Principal Markets 185 57 352 157 Strategic Markets 150 111 283 207 Total segment adjusted EBITDA $ 596 $ 448 $ 1,232 $ 959 The following table reconciles segment adjusted EBITDA to consolidated pretax income (loss): Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2023 2022 2023 2022 Segment adjusted EBITDA $ 596 $ 448 $ 1,232 $ 959 Workforce rebalancing charges (39) (3) (97) (6) Charges related to ceasing to use leased/fixed assets and lease terminations — — (10) — Transaction-related costs (48) (68) (89) (171) Stock-based compensation expense (25) (28) (48) (54) Interest expense (31) (19) (61) (38) Depreciation of property, equipment and capitalized software (220) (221) (431) (449) Amortization expense (313) (301) (646) (609) Corporate expense not allocated to the segments (21) (20) (45) (40) Other adjustments* (7) (9) (23) (18) Pretax income (loss) $ (109) $ (219) $ (218) $ (425) * Other adjustments represent pension expenses other than pension servicing costs and multi-employer plan costs, significant litigation costs, currency impacts of highly inflationary countries, and an adjustment to reduce amortization expense for the amount already included in transaction-related costs above .

TAXES

TAXES	6 Months Ended
TAXES	Sep. 30, 2023
TAXES
TAXES	NOTE 5. TAXES For the three months ended September 30, 2023, the Company’s effective tax rate was (30.3%), compared to (27.9%) for the three months ended September 30, 2022. For the six months ended September 30, 2023, the Company’s effective tax rate was (29.8%), compared to (25.1%) for the six months ended September 30, 2022. The Company’s negative effective tax rates for the three and six months ended September 30, 2023 and 2022 reflect a tax expense on a pretax book loss in those periods. The Company’s effective tax rate for the three and six months ended September 30, 2023 and 2022 was lower than the Company’s statutory tax rate primarily due to taxes on foreign operations and valuation allowances recorded in certain jurisdictions against deferred tax assets that are not more likely than not to be realized.

NET LOSS PER SHARE

NET LOSS PER SHARE	6 Months Ended
NET LOSS PER SHARE	Sep. 30, 2023
NET LOSS PER SHARE
NET LOSS PER SHARE	NOTE 6. NET LOSS PER SHARE We did not declare any stock dividends in the periods presented. The following table provides the computation of basic and diluted earnings per share of common stock for the three and six months ended September 30, 2023 and 2022. Three Months Ended September 30, Six Months Ended September 30, (In millions, except per share amounts) 2023 2022 2023 2022 Net income (loss) on which basic and diluted earnings per share is calculated $ (142) $ (281) $ (283) $ (531) Number of shares on which basic and diluted earnings per share is calculated 229.1 226.8 228.5 226.0 Basic earnings (loss) per share $ (0.62) $ (1.24) $ (1.24) $ (2.35) Diluted earnings (loss) per share (0.62) (1.24) (1.24) (2.35) For the three and six months ended September 30, 2023 and 2022, the Company’s basic and diluted weighted-average shares outstanding were the same. The following securities were not included in the computation of diluted net loss per share because they would have been anti-dilutive: September 30, (In millions) 2023 2022 Nonvested restricted stock units 9.0 11.0 Nonvested performance-conditioned stock units 2.8 2.4 Nonvested market-conditioned stock units 2.7 2.4 Stock options issued and outstanding 3.6 3.7 Total 18.2 19.6

FINANCIAL ASSETS AND LIABILITIE

FINANCIAL ASSETS AND LIABILITIES	6 Months Ended
FINANCIAL ASSETS AND LIABILITIES	Sep. 30, 2023
FINANCIAL ASSETS AND LIABILITIES
FINANCIAL ASSETS AND LIABILITIES	NOTE 7. FINANCIAL ASSETS AND LIABILITIES Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company classifies certain assets and liabilities based on the following fair value hierarchy: ● Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the measurement date. ● Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 – Unobservable inputs for the asset or liability. The level of an asset or liability within the fair value hierarchy is determined based on the lowest level of any input that is significant to the fair value measurement. In determining the fair value of certain financial instruments, the Company considers certain market valuation adjustments to the “base valuations” using the methodologies described below for several parameters that market participants would consider in determining fair value: ● Counterparty credit risk adjustments are applied to certain financial instruments, taking into account the actual credit risk of a counterparty as observed in the credit default swap market to determine the true fair value of such an instrument. ● Credit risk adjustments are applied to reflect the Company’s own credit risk when valuing certain liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the Company’s credit risk as observed in the credit default swap market. Certain non-financial assets such as property, plant and equipment, operating right-of-use assets, land, goodwill and intangible assets are recorded at fair value or at cost, as appropriate, in the period they are initially recognized, and such balances may be adjusted in subsequent periods if an event occurs or circumstances change that indicate that the asset may be impaired. The impairment models used for non-financial assets depend on the type of asset. The fair value measurements, in such instances, would be classified in Level 3 of the fair value hierarchy. We perform a qualitative assessment of asset impairments on a periodic basis and recognize an impairment if there are sufficient indicators that the fair value is less than carrying value. There were no impairments of non-financial assets recognized for the three and six months ended September 30, 2023 and 2022. Financial Assets and Liabilities Measured at Fair Value The following table presents the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis at September 30, 2023 and March 31, 2023: Fair Value Hierarchy At September 30, 2023 At March 31, 2023 (Dollars in millions) Level Assets Liabilities Fair Value Assets Liabilities Fair Value Derivatives designated as hedging instruments: Foreign exchange contracts 2 $ 18 $ 4 $ 14 $ 4 $ 3 $ 1 Derivatives not designated as hedging instruments: Foreign exchange contracts 2 19 14 5 11 5 6 Total $ 37 $ 18 $ 19 $ 15 $ 9 $ 6 The gross balances of derivative assets are contained within prepaid expenses and other current assets, and the gross balances of derivative liabilities are contained within other accrued expenses and liabilities in the Consolidated Balance Sheet. The Company may enter into master netting agreements with certain counterparties that allow for netting of exposures. There was no netting of derivative assets against liabilities in the Consolidated Balance Sheet at September 30, 2023 and March 31, 2023. The Company manages counterparty risk by seeking counterparties of high credit quality and by monitoring credit ratings, credit spreads and other relevant public information about its counterparties. The Company does not anticipate nonperformance by any of the counterparties. Financial Assets and Liabilities Not Measured at Fair Value Accounts receivable are financial assets with carrying values that approximate fair value. Accounts payable, other accrued expenses and short-term debt are financial liabilities with carrying values that approximate fair value. If measured at fair value in the consolidated financial statements, these financial assets and liabilities would be classified as Level 3 in the fair value hierarchy, except for short-term debt, which would be classified as Level 2. The Company also has time deposits that have maturities of 90 days or less, and their carrying values approximate fair value. They are measured for impairment on a recurring basis by comparing their fair value with their amortized cost basis. There were no impairments of financial assets recognized for any of the periods presented. The balances of these time deposits with maturities of 90 days or less contained within cash and cash equivalents in the Consolidated Balance Sheet at September 30, 2023 and March 31, 2023 were $713 million and $814 million, respectively. If measured at fair value in the consolidated financial statements, time deposits with maturities of 90 days or less would be categorized as Level 2 in the fair value hierarchy. The fair value of our outstanding debt (excluding finance lease obligations) is based on various methodologies, including quoted prices in active markets for identical debt instruments, which is a Level 1 measurement, and calculated fair value using an expected present value technique that uses rates currently available to the Company for debt in active markets with similar terms and remaining maturities, which is a Level 2 measurement. Our outstanding debt had a carrying value of $3.0 billion as of September 30, 2023 and March 31, 2023, and an estimated fair value of $2.5 billion as of September 30, 2023 and March 31, 2023. Transfers of Financial Assets The Company has entered into agreements with third-party financial institutions to sell certain financial assets (primarily trade receivables) without recourse. The Company has determined these are true sales. The carrying value of the financial asset sold is derecognized, and a net gain or loss on the sale is recognized at the time of the transfer. The net proceeds from these agreements are reflected as cash provided by operating activities in the Consolidated Statement of Cash Flows. Gross proceeds from receivables sold to third parties under this program were $913 million and $2.1 billion for the three and six months ended September 30, 2023, respectively, and $722 million and $1.3 billion for the three and six months ended September 30, 2022, respectively. The fees associated with the transfers of receivables were $12 million and $28 million for the three and six months ended September 30, 2023, respectively, and $12 million and $20 million for the three and six months ended September 30, 2022, respectively. Derivative Financial Instruments Derivatives Designated as Hedging Instruments The Company has foreign exchange derivative financial instruments designated as cash flow hedges to manage the volatility of cash flows that relate to operating expenses denominated in certain currencies. Changes in fair value of derivatives designated as cash flow hedges are recorded, net of applicable taxes, in other comprehensive income and subsequently reclassified into the same income statement line item as the hedged exposure when the underlying hedged item is recognized in earnings. The cash flows associated with derivatives designated as cash flow hedges are reported in cash flows from operating activities in the Consolidated Statement of Cash Flows. At September 30, 2023 and March 31, 2023, the total gross notional amount of foreign exchange contracts designated as cash flow hedges of forecasted foreign currency cost transactions was $644 million and $283 million, respectively. The notional amounts of derivative instruments do not necessarily represent the amounts exchanged by the Company with third parties and are not necessarily a direct measure of the financial exposure. The maximum remaining length of time over which the Company hedged its exposure is approximately one year. At September 30, 2023 and March 31, 2023, the weighted-average remaining maturity of these instruments was approximately 0.4 years and 0.5 years, respectively. At September 30, 2023 and March 31, 2023, in connection with cash flow hedges of foreign currency cost transactions, the Company had net deferred gains of $22 million and $1 million (each before taxes), respectively, in accumulated other comprehensive income (“AOCI”). The Company estimates that $22 million (before taxes) of net deferred gains on derivatives in AOCI at September 30, 2023 will be reclassified to net income within the next twelve months, providing an offsetting economic impact against the underlying anticipated transactions. Derivatives Not Designated as Hedging Instruments The Company enters into currency forward and swap contracts to hedge exposures related to assets, liabilities and earnings across its subsidiaries. These contracts are not designated as hedging instruments, and therefore changes in fair value of these contracts are reported in earnings in other expense (income) in the Consolidated Income Statement. The gains and losses on these contracts generally offset the gains and losses in the underlying hedged exposures, which are also reported in other expense (income) in the Consolidated Income Statement. Cash flows from derivatives not designated as hedges are reported in cash flows from investing activities in the Consolidated Statement of Cash Flows. The terms of these swap contracts are generally less than one year. At September 30, 2023 and March 31, 2023, the total gross notional amount of derivative instruments in economic hedges of foreign currency exposure was $1.6 billion and $1.5 billion, respectively. The Effect of Derivative Instruments in the Consolidated Income Statement The effects of derivatives designated as hedging instruments on the Consolidated Income Statement and Other Comprehensive Income are as follows: Unrealized Gain (Loss) Consolidated Gain (Loss) Reclassified (Dollars in millions) Recognized in OCI Income Statement from AOCI to Income Three months ended September 30: 2023 2022 Line Item 2023 2022 Foreign exchange contracts $ 11 $ — Cost of services $ 4 $ — Total $ 11 $ — $ 4 $ — Unrealized Gain (Loss) Consolidated Gain (Loss) (Dollars in millions) Recognized in OCI Income Statement Reclassified from AOCI Six months ended September 30: 2023 2022 Line Item 2023 2022 Foreign exchange contracts $ 26 $ (5) Cost of services $ 5 $ 1 Total $ 26 $ (5) $ 5 $ 1 For the three and six months ended September 30, 2023 and 2022, there were no gains or losses excluded from the assessment of hedge effectiveness for cash flow hedges, or associated with an underlying exposure that did not or was not expected to occur, nor are there any anticipated in the normal course of business. The effects of derivatives not designated as hedging instruments on the Consolidated Income Statement are as follows: Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Three months ended September 30: Line Item 2023 2022 Foreign exchange contracts Other expense (income) $ (36) $ (14) Total $ (36) $ (14) Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Six months ended September 30: Line Item 2023 2022 Foreign exchange contracts Other expense (income) $ (53) $ (16) Total $ (53) $ (16)

INTANGIBLE ASSETS INCLUDING GOO

INTANGIBLE ASSETS INCLUDING GOODWILL	6 Months Ended
INTANGIBLE ASSETS INCLUDING GOODWILL	Sep. 30, 2023
INTANGIBLE ASSETS INCLUDING GOODWILL
INTANGIBLE ASSETS INCLUDING GOODWILL	NOTE 8. INTANGIBLE ASSETS INCLUDING GOODWILL Intangible Assets The following table presents the Company’s intangible asset balances by major asset class. At September 30, 2023 At March 31, 2023 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Dollars in millions) Amount Amortization Amount Amount Amortization Amount Capitalized software $ 137 $ (28) $ 109 $ 83 $ (15) $ 68 Customer relationships* 221 (152) 70 232 (141) 91 Completed technology 20 (20) — 20 (20) — Patents and trademarks* 17 (7) 10 18 (6) 13 Total $ 394 $ (206) $ 188 $ 353 $ (182) $ 171 * Amounts include effects from foreign currency translation. The net carrying amount of intangible assets increased by $17 million during the six months ended September 30, 2023, primarily due to additions in capitalized software, partially offset by amortization and foreign currency translation. The aggregate intangible asset amortization expense was $16 million and $27 million for the three and six months ended September 30, 2023, compared to $10 million and $25 million for the three and six months ended September 30, 2022, respectively. This included amortization of capitalized software of $9 million and $13 million for the three and for the six months ended September 30, 2023, which was reported in “Depreciation of property, equipment and capitalized software” on the Consolidated Statement of Cash Flows. The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet was estimated to be the following at September 30, 2023: Capitalized Customer Patents and (Dollars in millions) Software Relationships Trademarks Total Year ending March 31: 2024 (remaining six months) $ 17 $ 13 $ 1 $ 31 2025 35 21 3 59 2026 33 18 3 54 2027 24 15 2 42 2028 — 1 — 1 Thereafter — 1 — 1 Goodwill The changes in the goodwill balances by segment for the six months ended September 30, 2023 were as follows: Additions and (Dollars in millions) Balance at Other Balance at Segment March 31, 2023 Adjustments* September 30, 2023 United States $ — $ — $ — Japan 495 (6) 489 Principal Markets 142 — 142 Strategic Markets 176 — 176 Total $ 812 $ (6) $ 806 * Primarily driven by foreign currency translation. There were no goodwill impairment losses recorded for the six months ended September 30, 2023 and 2022. Management reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable by first assessing qualitative factors to determine if it is more likely than not that fair value is less than carrying value.

BORROWINGS

BORROWINGS	6 Months Ended
BORROWINGS	Sep. 30, 2023
BORROWINGS
BORROWINGS	NOTE 9. BORROWINGS Debt The following table presents the components of our debt: September 30, March 31, (Dollars in millions) Interest Rate Maturity 2023 2023 Unsecured floating-rate term loan 6.55%* November 2024 $ 500 $ 500 Commercial loan agreement 3.00% July 2026 82 96 Unsecured senior notes due 2026 2.05% October 2026 700 700 Unsecured senior notes due 2028 2.70% October 2028 500 500 Unsecured senior notes due 2031 3.15% October 2031 650 650 Unsecured senior notes due 2041 4.10% October 2041 550 550 Finance lease obligations ** 5.03% 2023-2028 278 242 $ 3,260 $ 3,238 Less: Unamortized discount 4 5 Less: Unamortized debt issuance costs 12 13 Less: Current maturities of long-term debt 121 110 Total long-term debt $ 3,123 $ 3,111 * Floating rate calculated as of September 30, 2023, using a rate equal to one-month SOFR plus ** Finance lease obligations presented using the weighted-average interest rate. Contractual obligations of long-term debt outstanding at September 30, 2023, exclusive of finance lease obligations, are as follows: (Dollars in millions)* Principal Year ending March 31: 2024 (remaining six months) $ 14 2025 529 2026 29 2027 710 2028 — Thereafter 1,700 Total $ 2,982 * Contractual obligations approximate scheduled repayments. During the three months ended September 30, 2023, the Company extinguished $67 million of finance lease obligations through the sale of certain IT infrastructure services equipment and assignment of associated finance leases, resulting in an immaterial gain in the Consolidated Income Statement. During the three and six months ended September 30, 2023, the right-of-use assets obtained in exchange for new finance lease liabilities were $53 million and $150 million, respectively. During the three and six months ended September 30, 2022, the right-of-use assets obtained in exchange for new finance lease liabilities were $29 million and $37 million, respectively. As of September 30, 2023, there were no borrowings under the Company’s revolving credit agreement. The Company is in compliance with its debt covenants in all periods presented.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2023
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 10. COMMITMENTS AND CONTINGENCIES The Company guarantees certain loans and financial commitments. The maximum potential future payment under these financial guarantees and the fair value of these guarantees recognized in the Consolidated Balance Sheet at September 30, 2023 and March 31, 2023 were not material. Additionally, the Company has contractual commitments that are noncancellable with certain software, hardware and cloud partners used in the delivery of services to customers. During the three and six months ended September 30, 2023, contractual commitments decreased due to satisfaction of existing commitments outpacing new additions. As a company with approximately 85,000 employees and with clients around the world, Kyndryl is subject to, or could become subject to, either as plaintiff or defendant, a variety of contingencies, including claims, demands and suits, investigations, tax matters and proceedings that arise from time to time in the ordinary course of its business. Given the rapidly evolving external landscape of cybersecurity, privacy and data protection laws, regulations and threat actors, the Company or its clients could become subject to actions or proceedings in various jurisdictions. Also, as is typical for companies of Kyndryl’s scope and scale, the Company is subject to, or could become subject to, actions and proceedings in various jurisdictions involving a wide range of labor and employment issues (including matters related to contested employment decisions, country-specific labor and employment laws, and the Company’s benefit plans), as well as actions with respect to contracts, securities, foreign operations, competition law and environmental matters. These actions may be commenced by a number of different parties, including competitors, clients, employees, government and regulatory agencies, stockholders and representatives of the locations in which the Company does business. Some of the actions to which the Company is, or may become, a party may involve particularly complex technical issues, and some actions may raise novel questions under the laws of the various jurisdictions in which these matters arise. Additionally, the Company is, or may be, a party to agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. The Company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In accordance with the relevant accounting guidance, the Company provides disclosures of matters for which the likelihood of material loss is at least reasonably possible. In addition, the Company may also disclose matters based on its consideration of other matters and qualitative factors. The Company reviews claims, suits, investigations and proceedings at least quarterly, and decisions are made with respect to recording or adjusting provisions and disclosing reasonably possible losses or range of losses (individually or in the aggregate) to reflect the impact and status of settlement discussions, discovery, procedural and substantive rulings, reviews by counsel and other information pertinent to a particular matter. Whether any losses, damages or remedies finally determined in any claim, suit, investigation or proceeding could reasonably have a material effect on the Company’s business, financial condition, results of operations or cash flows will depend on a number of variables, including the timing and amount of such losses or damages; the structure and type of any such remedies; the significance of the impact any such losses, damages or remedies may have in the consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. While the Company will continue to defend itself vigorously, it is possible that the Company’s business, financial condition, results of operations or cash flows could be affected in any particular period by the resolution of one or more of these matters. In July 2017, BMC Software, Inc. (“BMC”) filed suit against IBM in the U.S. Court for the Southern District of Texas in a dispute involving various aspects of IBM’s business, including its managed infrastructure business. BMC alleged IBM’s removal of BMC software from one of its client’s sites at the client’s request constituted breach of contract, fraudulent inducement and trade secret misappropriation. In May 2022, the trial court entered a judgment against IBM and awarded BMC $717 million in direct damages and $717 million in punitive damages, plus interest. IBM has appealed the judgment and is seeking a complete reversal on appeal. IBM may seek an indemnity from the Company in connection with this matter. Until there is a final and conclusive judgment in the case after all appeals and proceedings are concluded, until the amount of any applicable insurance is determined, and until a definitive assessment of Kyndryl’s indemnity obligations (if any) occurs, which in the aggregate will likely take several years, the amount of indemnity obligation (if any) that the Company may owe to IBM is indeterminate. Separately, certain contractual disputes have arisen between Kyndryl and IBM following the Separation. IBM and Kyndryl have commenced arbitration proceedings related to certain of these matters. Kyndryl intends to vigorously pursue its interests and defenses in these matters, including asserting its own claims in arbitration if necessary.

EQUITY

EQUITY	6 Months Ended
EQUITY	Sep. 30, 2023
EQUITY
EQUITY	NOTE 11. EQUITY The following tables present reclassifications and taxes related to items of other comprehensive income (loss) for the three and six months ended September 30, 2023 and 2022: Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the three months ended September 30, 2023: Foreign currency translation adjustments $ (109) $ — $ (109) Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ 11 $ (4) $ 7 Reclassification of (gains) losses to net income (4) 1 (3) Total unrealized gains (losses) on cash flow hedges $ 7 $ (3) $ 4 Retirement-related benefit plans: Amortization of prior service (credits) costs $ — $ — $ — Amortization of net (gains) losses 1 — 1 Total retirement-related benefit plans $ 1 $ — $ 1 Other comprehensive income (loss) $ (101) $ (3) $ (105) For the three months ended September 30, 2022: Foreign currency translation adjustments $ (221) $ — $ (221) Retirement-related benefit plans – amortization of net (gains) losses $ 10 $ (3) $ 7 Other comprehensive income (loss) $ (211) $ (3) $ (214) Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the six months ended September 30, 2023: Foreign currency translation adjustments $ (125) $ — $ (125) Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ 26 $ (5) $ 21 Reclassification of (gains) losses to net income (5) 1 (4) Total unrealized gains (losses) on cash flow hedges $ 21 $ (4) $ 17 Retirement-related benefit plans: Amortization of prior service (credits) costs $ 1 $ — $ 1 Amortization of net (gains) losses 3 (1) 2 Total retirement-related benefit plans $ 4 $ (1) $ 3 Other comprehensive income (loss) $ (100) $ (5) $ (104) For the six months ended September 30, 2022: Foreign currency translation adjustments $ (488) $ — $ (488) Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ (5) $ 2 $ (3) Reclassification of (gains) losses to net income (1) — (1) Total unrealized gains (losses) on cash flow hedges $ (6) $ 2 $ (4) Retirement-related benefit plans – amortization of net (gains) losses $ 20 $ (6) $ 14 Other comprehensive income (loss) $ (474) $ (4) $ (478) * These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 12 – Retirement-Related Benefits for additional information. The following tables present the components of accumulated other comprehensive income (loss), net of taxes: Net Unrealized Foreign Net Change Accumulated Gain (Losses) Currency Retirement- Other on Cash Translation Related Comprehensive (Dollars in millions) Flow Hedges Adjustments* Benefit Plans Income (Loss) July 1, 2023 $ 13 $ (936) $ (140) $ (1,062) Other comprehensive income (loss) 4 (109) 1 (105) September 30, 2023 $ 17 $ (1,045) $ (139) $ (1,167) July 1, 2022 $ (1) $ (1,002) $ (350) $ (1,353) Other comprehensive income (loss) — (221) 7 (214) September 30, 2022 $ (1) $ (1,223) $ (343) $ (1,567) Net Unrealized Foreign Net Change Accumulated Gain (Losses) Currency Retirement- Other on Cash Translation Related Comprehensive (Dollars in millions) Flow Hedges Adjustments* Benefit Plans Income (Loss) April 1, 2023 $ — $ (921) $ (142) $ (1,062) Other comprehensive income (loss) 17 (125) 3 (104) September 30, 2023 $ 17 $ (1,045) $ (139) $ (1,167) April 1, 2022 $ 3 $ (735) $ (357) $ (1,089) Other comprehensive income (loss) (4) (488) 14 (478) September 30, 2022 $ (1) $ (1,223) $ (343) $ (1,567) * Foreign currency translation adjustments are presented gross .

RETIREMENT-RELATED BENEFITS

RETIREMENT-RELATED BENEFITS	6 Months Ended
RETIREMENT-RELATED BENEFITS	Sep. 30, 2023
RETIREMENT-RELATED BENEFITS
RETIREMENT-RELATED BENEFITS	NOTE 12. RETIREMENT-RELATED BENEFITS The following table presents the components of net periodic pension cost for the defined benefit pension plans recognized in the Consolidated Income Statement for the three and six months ended September 30, 2023 and 2022. Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2023 2022 2023 2022 Service cost $ 9 $ 12 $ 19 $ 24 Interest cost* 15 9 29 18 Expected return on plan assets* (16) (10) (30) (21) Amortization of prior service costs (credits)* — — 1 — Recognized actuarial losses (gains)* 1 10 3 20 Net periodic pension cost $ 9 $ 21 $ 21 $ 41 * These components of net periodic pension cost are included in other expense (income) in the Consolidated Income Statement. The components of net periodic benefit cost for the nonpension postretirement benefit plans and multi-employer plans recognized in the Consolidated Income Statement were not material for any period presented.

TRANSACTIONS WITH FORMER PARENT

TRANSACTIONS WITH FORMER PARENT	6 Months Ended
TRANSACTIONS WITH FORMER PARENT	Sep. 30, 2023
TRANSACTIONS WITH FORMER PARENT
TRANSACTIONS WITH FORMER PARENT	NOTE 13. TRANSACTIONS WITH FORMER PARENT Change in Beneficial Ownership IBM ceased to be a related party of Kyndryl in August 2022 after IBM transferred all of its 19.9% retained interest in Kyndryl common stock to a third-party financial institution through exchange agreements in May and August 2022. Transactions related to former Parent after August 11, 2022 are no longer reported as related-party activities. As a result, there was no related party revenue or cost of services recognized for the three and six months ended September 30, 2023. Revenue and Purchases Related to Former Parent Kyndryl provides various services to IBM, including those related to hosting data centers and servicing IBM’s information technology infrastructure, which are reported as revenue in the Company’s Consolidated Income Statement. Revenue generated from these services was $82 million and $287 million for the three and six months ended September 30, 2022, respectively. Kyndryl utilizes various IBM products and services, recognized as costs of services, in the fulfillment of services contracts. Total cost of services recognized from these related-party transactions in the Company’s Consolidated Income Statement was $421 million and $1,382 million for the three and six months ended September 30, 2022. The related-party cost for the prior-year periods includes outsourcing goods and services provided by the former Parent to Kyndryl’s customers post-Separation. Capital expenditures for purchases of IBM hardware were reflected as payments for property and equipment within the investing section of the Company’s Consolidated Statement of Cash Flows in the amount of $89 million for the six months ended September 30, 2022. Additionally, as part of the Separation, IBM has committed to provide Kyndryl, at no cost, up to $265 million of upgraded hardware over a two-year period. The amounts committed by IBM are reflected within other assets (noncurrent) within the Consolidated Balance Sheet at September 30, 2023. For the three and six months ended September 30, 2023, $84 million and $110 million, respectively, of the upgraded hardware committed by IBM was delivered to Kyndryl. For the three and six months ended September 30, 2022, $21 million of the upgraded hardware committed by IBM was delivered to Kyndryl. From the inception of the program to date, $193 million of upgraded hardware committed by IBM has been delivered to Kyndryl. The expected average useful life of the upgraded hardware is approximately five years, and the Company intends to recognize total depreciation approximating $265 million over the useful life, consistent with our depreciation policy. Lease Guarantees Kyndryl has lease agreements with third parties with an estimated aggregate lease liability of $56 million that are guaranteed by IBM as of September 30, 2023.

WORKFORCE REBALANCING AND SITE-

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES	6 Months Ended
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES	Sep. 30, 2023
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES.
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES	NOTE 14. WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES During the fiscal year ended March 31, 2023, the Company initiated actions to reduce our overall cost structure and increase our operating efficiency. These actions are anticipated to occur over several quarters and result in workforce rebalancing charges, charges related to ceasing to use leased and owned fixed assets, and lease termination charges (collectively, the “charges”). We expect the total charges to be incurred for this program to be approximately $290 million, consisting of $180 million in workforce rebalancing charges and $110 million in charges related to ceasing to use leased and owned fixed assets and lease termination charges. The Company expects that these actions will reduce future payroll costs, rent expenses and depreciation of property and equipment. We will continue to seek opportunities to increase our operational efficiency and reduce costs, which may result in additional charges in future periods. The following table presents the segment breakout of charges incurred during the three and six months ended September 30, 2023 and during the full length of the program. Three Months Ended Six Months Ended Costs Incurred (Dollars in millions) September 30, 2023 September 30, 2023 to Date United States $ 3 $ 15 $ 28 Japan — 2 4 Principal Markets 19 42 105 Strategic Markets 16 45 91 Corporate charges not allocated to the segments — 3 13 Total charges $ 39 $ 107 $ 242 The following table presents the classification of workforce rebalancing and site-rationalization activities in the Consolidated Income Statement during the three and six months ended September 30, 2023 and during the full length of the program. Charges in the three and six months ended September 30, 2022 were immaterial. Three Months Ended Six Months Ended Costs Incurred (Dollars in millions) September 30, 2023 September 30, 2023 to Date Cost of services $ (3) $ (3) $ 68 Selling, general and administrative expenses 3 13 22 Workforce rebalancing charges 39 97 152 Total charges $ 39 $ 107 $ 242 The following table presents the components of and changes in our workforce rebalancing and site-rationalization charges liabilities during the six months ended September 30, 2023. Liabilities Liabilities Liabilities Workforce Related to Related to Related to Rebalancing Ceasing to Use Lease Ceasing to Use (Dollars in millions) Liabilities* Leased Assets Terminations Fixed Assets Total Balance at March 31, 2023 $ 55 $ — $ 3 $ — $ 58 Charges / (Benefits) 97 3 (3) 10 107 Cash payments (107) — — (5) (112) Non-cash adjustments (1) (3) — (5) (9) Balance at September 30, 2023 $ 44 $ — $ — $ — $ 45 * Excludes historical workforce rebalancing liabilities of $42 million as of March 31, 2023 and $33 million as of September 30, 2023 as well as $2 million of non-cash adjustments and $6 million cash paid for these historical workforce rebalancing liabilities for the six months ended September 30, 2023 that were inherited from the former Parent. Workforce rebalancing liabilities are recorded within Other Liabilities on the Consolidated Balance Sheet .

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2023
SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying Consolidated Financial Statements and footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management believes the accompanying financial statements include all adjustments necessary to present fairly the Company’s financial position and its results of operations for all the periods presented. The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report for the fiscal year ended March 31, 2023. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.
Principles of Consolidation	Principles of Consolidation The accompanying financial statements are presented on a consolidated basis. All significant transactions and intercompany accounts between Kyndryl entities were eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts that are reported in the consolidated financial statements and accompanying disclosures. Estimates are used in determining the following, among others: revenue, costs to complete service contracts, income taxes, pension assumptions, valuation of assets including goodwill and intangible assets, the depreciable and amortizable lives of long-lived assets, loss contingencies, allowance for credit losses and deferred transition costs. Actual results may differ from these estimates. The Company uses the estimated annual effective tax rate method in computing its interim tax provision in accordance with U.S. GAAP. The estimated annual effective tax rate is applied to the year-to-date ordinary income, exclusive of discrete items, to arrive at the reported interim tax provision.
Recent Pronouncements	Recent Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 In September 2022, the FASB amended its guidance related to supplier finance programs. The amended guidance requires additional disclosures surrounding the use of supplier finance programs to purchase goods or services, including disclosing the key terms of the programs, the amount of obligations outstanding at the end of the reporting period, and a roll-forward of those obligations. The new guidance, except the roll-forward information, is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The requirement to present roll-forward information is effective for fiscal years beginning after December 15, 2023. The Company adopted the guidance at the beginning of fiscal year 2024. The Company did not have any outstanding obligations under supplier finance programs in the periods presented. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common-Control Arrangements In August 2023, the FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement
Segments	Our reportable segments correspond to how the chief operating decision maker (“CODM”) reviews performance and allocates resources. Our four reportable segments consist of the following: United States: Japan: Principal Markets: Strategic Markets: The measure of segment operating performance used by Kyndryl’s CODM is adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) excluding net interest expense, income taxes, depreciation and amortization (excluding depreciation of right-of-use assets and amortization of capitalized contract costs), charges related to ceasing to use leased and owned fixed assets, charges related to lease terminations, transaction-related costs, pension expenses other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges, impairment expense, significant litigation costs, and currency impacts of highly inflationary countries. The use of revenue and adjusted EBITDA aligns with how the CODM assesses performance and allocates resources for the Company’s segments. Our geographic markets frequently work together to sell and implement certain contracts. The resulting revenues and costs from these contracts may be apportioned among the participating geographic markets. The economic environment and its effects on the industries served by our geographic markets affect revenues and operating expenses within our geographic markets to differing degrees. Currency fluctuations also tend to affect our geographic markets differently, depending on the geographic concentrations and locations of their businesses.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
REVENUE RECOGNITION (Tables)	Sep. 30, 2023
REVENUE RECOGNITION
Schedule of reconciliation of contract balances	September 30, March 31, (Dollars in millions) 2023 2023 Accounts receivable (net of allowances for credit losses of $28 at September 30, 2023 and $32 at March 31, 2023) * $ 1,663 $ 1,523 Contract assets ** 35 30 Deferred income (current) 790 820 Deferred income (noncurrent) 316 362 * Including unbilled receivable balances of $458 million at September 30, 2023 and $384 million at March 31, 2023. ** Contract assets represent goods or services delivered by the Company, which give the Company the right to consideration that is typically subject to milestone completion or client acceptance and are included within prepaid expenses and other current assets in the Consolidated Balance Sheet.
Schedule of notes and accounts receivable - trade allowance for credit losses	Six Months Ended September 30, (Dollars in millions) 2023 2022 Beginning balance $ 32 $ 44 Additions (releases) — 2 Write-offs (3) (5) Other * (1) (7) Ending balance $ 28 $ 33 * Primarily represents currency translation adjustments .
Schedule of capitalized costs to acquire and fulfill customer contracts	September 30, March 31, (Dollars in millions) 2023 2023 Deferred transition costs $ 778 $ 856 Prepaid software costs 705 782 Capitalized costs to fulfill contracts 219 285 Capitalized costs to obtain contracts 281 313 Total deferred costs * $ 1,983 $ 2,236 * Of the total deferred costs, $952 million was current and $1,031 million was noncurrent at September 30, 2023, and $1,070 million was current and $1,166 million was noncurrent at March 31, 2023.

SEGMENTS (Tables)

SEGMENTS (Tables)	6 Months Ended
SEGMENTS (Tables)	Sep. 30, 2023
SEGMENTS
Summary of results of segments	Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2023 2022 2023 2022 Revenue United States $ 1,108 $ 1,149 $ 2,272 $ 2,317 Japan 569 614 1,180 1,249 Principal Markets 1,465 1,472 2,949 2,988 Strategic Markets 930 944 1,865 1,914 Total revenue $ 4,073 $ 4,179 $ 8,266 $ 8,467 Segment adjusted EBITDA United States $ 176 $ 167 $ 412 $ 367 Japan 84 113 184 228 Principal Markets 185 57 352 157 Strategic Markets 150 111 283 207 Total segment adjusted EBITDA $ 596 $ 448 $ 1,232 $ 959
Summary of reconciliation of adjusted EBITDA to consolidated pretax income (loss)	The following table reconciles segment adjusted EBITDA to consolidated pretax income (loss): Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2023 2022 2023 2022 Segment adjusted EBITDA $ 596 $ 448 $ 1,232 $ 959 Workforce rebalancing charges (39) (3) (97) (6) Charges related to ceasing to use leased/fixed assets and lease terminations — — (10) — Transaction-related costs (48) (68) (89) (171) Stock-based compensation expense (25) (28) (48) (54) Interest expense (31) (19) (61) (38) Depreciation of property, equipment and capitalized software (220) (221) (431) (449) Amortization expense (313) (301) (646) (609) Corporate expense not allocated to the segments (21) (20) (45) (40) Other adjustments* (7) (9) (23) (18) Pretax income (loss) $ (109) $ (219) $ (218) $ (425) * Other adjustments represent pension expenses other than pension servicing costs and multi-employer plan costs, significant litigation costs, currency impacts of highly inflationary countries, and an adjustment to reduce amortization expense for the amount already included in transaction-related costs above .

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	6 Months Ended
NET LOSS PER SHARE (Tables)	Sep. 30, 2023
NET LOSS PER SHARE
Schedule of computation of basic and diluted earnings per share of common stock	Three Months Ended September 30, Six Months Ended September 30, (In millions, except per share amounts) 2023 2022 2023 2022 Net income (loss) on which basic and diluted earnings per share is calculated $ (142) $ (281) $ (283) $ (531) Number of shares on which basic and diluted earnings per share is calculated 229.1 226.8 228.5 226.0 Basic earnings (loss) per share $ (0.62) $ (1.24) $ (1.24) $ (2.35) Diluted earnings (loss) per share (0.62) (1.24) (1.24) (2.35)
Schedule of anti dilutive securities were not included in the computation of diluted earnings (loss) per share	September 30, (In millions) 2023 2022 Nonvested restricted stock units 9.0 11.0 Nonvested performance-conditioned stock units 2.8 2.4 Nonvested market-conditioned stock units 2.7 2.4 Stock options issued and outstanding 3.6 3.7 Total 18.2 19.6

FINANCIAL ASSETS AND LIABILIT_2

FINANCIAL ASSETS AND LIABILITIES (Tables)	6 Months Ended
FINANCIAL ASSETS AND LIABILITIES (Tables)	Sep. 30, 2023
FINANCIAL ASSETS AND LIABILITIES
Financial assets and financial liabilities measured at fair value on a recurring basis	Fair Value Hierarchy At September 30, 2023 At March 31, 2023 (Dollars in millions) Level Assets Liabilities Fair Value Assets Liabilities Fair Value Derivatives designated as hedging instruments: Foreign exchange contracts 2 $ 18 $ 4 $ 14 $ 4 $ 3 $ 1 Derivatives not designated as hedging instruments: Foreign exchange contracts 2 19 14 5 11 5 6 Total $ 37 $ 18 $ 19 $ 15 $ 9 $ 6
Effect of Derivative Instruments in the Consolidated Income Statement - Designated	Unrealized Gain (Loss) Consolidated Gain (Loss) Reclassified (Dollars in millions) Recognized in OCI Income Statement from AOCI to Income Three months ended September 30: 2023 2022 Line Item 2023 2022 Foreign exchange contracts $ 11 $ — Cost of services $ 4 $ — Total $ 11 $ — $ 4 $ — Unrealized Gain (Loss) Consolidated Gain (Loss) (Dollars in millions) Recognized in OCI Income Statement Reclassified from AOCI Six months ended September 30: 2023 2022 Line Item 2023 2022 Foreign exchange contracts $ 26 $ (5) Cost of services $ 5 $ 1 Total $ 26 $ (5) $ 5 $ 1
Effect of Derivative Instruments in the Consolidated Income Statement- Non designated	Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Three months ended September 30: Line Item 2023 2022 Foreign exchange contracts Other expense (income) $ (36) $ (14) Total $ (36) $ (14) Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Six months ended September 30: Line Item 2023 2022 Foreign exchange contracts Other expense (income) $ (53) $ (16) Total $ (53) $ (16)

INTANGIBLE ASSETS INCLUDING G_2

INTANGIBLE ASSETS INCLUDING GOODWILL (Tables)	6 Months Ended
INTANGIBLE ASSETS INCLUDING GOODWILL (Tables)	Sep. 30, 2023
INTANGIBLE ASSETS INCLUDING GOODWILL
Intangible asset balances by major asset class	At September 30, 2023 At March 31, 2023 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Dollars in millions) Amount Amortization Amount Amount Amortization Amount Capitalized software $ 137 $ (28) $ 109 $ 83 $ (15) $ 68 Customer relationships* 221 (152) 70 232 (141) 91 Completed technology 20 (20) — 20 (20) — Patents and trademarks* 17 (7) 10 18 (6) 13 Total $ 394 $ (206) $ 188 $ 353 $ (182) $ 171 * Amounts include effects from foreign currency translation.
Intangible assets, future amortization expense	Capitalized Customer Patents and (Dollars in millions) Software Relationships Trademarks Total Year ending March 31: 2024 (remaining six months) $ 17 $ 13 $ 1 $ 31 2025 35 21 3 59 2026 33 18 3 54 2027 24 15 2 42 2028 — 1 — 1 Thereafter — 1 — 1
Changes in goodwill balances by reportable segment	Additions and (Dollars in millions) Balance at Other Balance at Segment March 31, 2023 Adjustments* September 30, 2023 United States $ — $ — $ — Japan 495 (6) 489 Principal Markets 142 — 142 Strategic Markets 176 — 176 Total $ 812 $ (6) $ 806 * Primarily driven by foreign currency translation.

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
BORROWINGS (Tables)	Sep. 30, 2023
BORROWINGS
Summary of components of debt	September 30, March 31, (Dollars in millions) Interest Rate Maturity 2023 2023 Unsecured floating-rate term loan 6.55%* November 2024 $ 500 $ 500 Commercial loan agreement 3.00% July 2026 82 96 Unsecured senior notes due 2026 2.05% October 2026 700 700 Unsecured senior notes due 2028 2.70% October 2028 500 500 Unsecured senior notes due 2031 3.15% October 2031 650 650 Unsecured senior notes due 2041 4.10% October 2041 550 550 Finance lease obligations ** 5.03% 2023-2028 278 242 $ 3,260 $ 3,238 Less: Unamortized discount 4 5 Less: Unamortized debt issuance costs 12 13 Less: Current maturities of long-term debt 121 110 Total long-term debt $ 3,123 $ 3,111 * Floating rate calculated as of September 30, 2023, using a rate equal to one-month SOFR plus ** Finance lease obligations presented using the weighted-average interest rate.
Schedule of contractual obligations of long-term debt outstanding	(Dollars in millions)* Principal Year ending March 31: 2024 (remaining six months) $ 14 2025 529 2026 29 2027 710 2028 — Thereafter 1,700 Total $ 2,982 * Contractual obligations approximate scheduled repayments.

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
EQUITY (Tables)	Sep. 30, 2023
EQUITY
Reclassifications and taxes related to items of other comprehensive income (loss)	Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the three months ended September 30, 2023: Foreign currency translation adjustments $ (109) $ — $ (109) Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ 11 $ (4) $ 7 Reclassification of (gains) losses to net income (4) 1 (3) Total unrealized gains (losses) on cash flow hedges $ 7 $ (3) $ 4 Retirement-related benefit plans: Amortization of prior service (credits) costs $ — $ — $ — Amortization of net (gains) losses 1 — 1 Total retirement-related benefit plans $ 1 $ — $ 1 Other comprehensive income (loss) $ (101) $ (3) $ (105) For the three months ended September 30, 2022: Foreign currency translation adjustments $ (221) $ — $ (221) Retirement-related benefit plans – amortization of net (gains) losses $ 10 $ (3) $ 7 Other comprehensive income (loss) $ (211) $ (3) $ (214) Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the six months ended September 30, 2023: Foreign currency translation adjustments $ (125) $ — $ (125) Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ 26 $ (5) $ 21 Reclassification of (gains) losses to net income (5) 1 (4) Total unrealized gains (losses) on cash flow hedges $ 21 $ (4) $ 17 Retirement-related benefit plans: Amortization of prior service (credits) costs $ 1 $ — $ 1 Amortization of net (gains) losses 3 (1) 2 Total retirement-related benefit plans $ 4 $ (1) $ 3 Other comprehensive income (loss) $ (100) $ (5) $ (104) For the six months ended September 30, 2022: Foreign currency translation adjustments $ (488) $ — $ (488) Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ (5) $ 2 $ (3) Reclassification of (gains) losses to net income (1) — (1) Total unrealized gains (losses) on cash flow hedges $ (6) $ 2 $ (4) Retirement-related benefit plans – amortization of net (gains) losses $ 20 $ (6) $ 14 Other comprehensive income (loss) $ (474) $ (4) $ (478) * These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 12 – Retirement-Related Benefits for additional information.
Accumulated other comprehensive income (loss), net of taxes	Net Unrealized Foreign Net Change Accumulated Gain (Losses) Currency Retirement- Other on Cash Translation Related Comprehensive (Dollars in millions) Flow Hedges Adjustments* Benefit Plans Income (Loss) July 1, 2023 $ 13 $ (936) $ (140) $ (1,062) Other comprehensive income (loss) 4 (109) 1 (105) September 30, 2023 $ 17 $ (1,045) $ (139) $ (1,167) July 1, 2022 $ (1) $ (1,002) $ (350) $ (1,353) Other comprehensive income (loss) — (221) 7 (214) September 30, 2022 $ (1) $ (1,223) $ (343) $ (1,567) Net Unrealized Foreign Net Change Accumulated Gain (Losses) Currency Retirement- Other on Cash Translation Related Comprehensive (Dollars in millions) Flow Hedges Adjustments* Benefit Plans Income (Loss) April 1, 2023 $ — $ (921) $ (142) $ (1,062) Other comprehensive income (loss) 17 (125) 3 (104) September 30, 2023 $ 17 $ (1,045) $ (139) $ (1,167) April 1, 2022 $ 3 $ (735) $ (357) $ (1,089) Other comprehensive income (loss) (4) (488) 14 (478) September 30, 2022 $ (1) $ (1,223) $ (343) $ (1,567) * Foreign currency translation adjustments are presented gross .

RETIREMENT-RELATED BENEFITS (Ta

RETIREMENT-RELATED BENEFITS (Tables)	6 Months Ended
RETIREMENT-RELATED BENEFITS (Tables)	Sep. 30, 2023
RETIREMENT-RELATED BENEFITS
Components of net periodic pension cost for the defined benefit pension plans	Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2023 2022 2023 2022 Service cost $ 9 $ 12 $ 19 $ 24 Interest cost* 15 9 29 18 Expected return on plan assets* (16) (10) (30) (21) Amortization of prior service costs (credits)* — — 1 — Recognized actuarial losses (gains)* 1 10 3 20 Net periodic pension cost $ 9 $ 21 $ 21 $ 41 * These components of net periodic pension cost are included in other expense (income) in the Consolidated Income Statement.

WORKFORCE REBALANCING AND SIT_2

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES (Tables)	6 Months Ended
	Sep. 30, 2023
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES.
Schedule of segment breakout of charges	Three Months Ended Six Months Ended Costs Incurred (Dollars in millions) September 30, 2023 September 30, 2023 to Date United States $ 3 $ 15 $ 28 Japan — 2 4 Principal Markets 19 42 105 Strategic Markets 16 45 91 Corporate charges not allocated to the segments — 3 13 Total charges $ 39 $ 107 $ 242
Summary of classification of workforce rebalancing and site-rationalization activities	Three Months Ended Six Months Ended Costs Incurred (Dollars in millions) September 30, 2023 September 30, 2023 to Date Cost of services $ (3) $ (3) $ 68 Selling, general and administrative expenses 3 13 22 Workforce rebalancing charges 39 97 152 Total charges $ 39 $ 107 $ 242
Schedule of components of and changes in workforce rebalancing and site-rationalization charges	Liabilities Liabilities Liabilities Workforce Related to Related to Related to Rebalancing Ceasing to Use Lease Ceasing to Use (Dollars in millions) Liabilities* Leased Assets Terminations Fixed Assets Total Balance at March 31, 2023 $ 55 $ — $ 3 $ — $ 58 Charges / (Benefits) 97 3 (3) 10 107 Cash payments (107) — — (5) (112) Non-cash adjustments (1) (3) — (5) (9) Balance at September 30, 2023 $ 44 $ — $ — $ — $ 45 * Excludes historical workforce rebalancing liabilities of $42 million as of March 31, 2023 and $33 million as of September 30, 2023 as well as $2 million of non-cash adjustments and $6 million cash paid for these historical workforce rebalancing liabilities for the six months ended September 30, 2023 that were inherited from the former Parent. Workforce rebalancing liabilities are recorded within Other Liabilities on the Consolidated Balance Sheet .

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES - Kyndryl's Spin-off and Description of Business (Details)	Sep. 30, 2023 country
Minimum
Number of countries	100

REVENUE RECOGNITION - Remaining

REVENUE RECOGNITION - Remaining Performance Obligations (Details) $ in Billions	Sep. 30, 2023 USD ($)
REVENUE RECOGNITION
Remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied	$ 34

REVENUE RECOGNITION - Remaini_2

REVENUE RECOGNITION - Remaining Performance Obligations, Expected Timing of Satisfaction (Details)	Sep. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	58%
Duration of expected recognition period for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	35%
Duration of expected recognition period for remaining performance obligation	3 years

REVENUE RECOGNITION - Performan

REVENUE RECOGNITION - Performance Obligations Satisfied or Partially Satisfied in Prior Periods (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
REVENUE RECOGNITION
Impact to revenue from performance obligations satisfied (or partially satisfied) in previous periods	$ 2	$ 4	$ 15	$ 3

REVENUE RECOGNITION - Reconcili

REVENUE RECOGNITION - Reconciliation of Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Reconciliation of Contract Balances
Accounts receivable (net of allowances for credit losses of $28 at September 30, 2023 and $32 at March 31, 2023)	$ 1,663		$ 1,663		$ 1,523
Contract assets	35		35		30
Deferred income (current)	790		790		820
Deferred income (noncurrent)	316		316		362
Accounts receivable, allowances	28		28		32
Unbilled receivable	458		458		$ 384
Revenue recognized that was included in deferred income at the beginning of the period	$ 176	$ 184	$ 360	$ 367

REVENUE RECOGNITION - Trade All

REVENUE RECOGNITION - Trade Allowance for Credit Losses (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Roll forward of notes and accounts receivable - trade allowance for credit losses
Allowance for Credit Loss, Beginning Balance	$ 32	$ 44
Additions (releases)		2
Write-offs	(3)	(5)
Other	(1)	(7)
Allowance for Credit Loss, Ending Balance	$ 28	$ 33

REVENUE RECOGNITION - Major Cli

REVENUE RECOGNITION - Major Clients (Details) - client	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022
Revenue.
Concentration Risk [Line Items]
Concentration risk, major clients	0		0
Accounts Receivable.
Concentration Risk [Line Items]
Concentration risk, major clients	0	0

REVENUE RECOGNITION - Deferred

REVENUE RECOGNITION - Deferred Costs (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Deferred Contract Costs
Deferred costs	$ 1,983	$ 1,983		$ 2,236
Deferred costs, current	952	952		1,070
Deferred costs, noncurrent	1,031	1,031		1,166
Total deferred costs amortized	449	912
Amortization of deferred costs	143	281	$ 222
Deferred transition costs
Deferred Contract Costs
Deferred costs	778	778		856
Total deferred costs amortized	88	173
Prepaid software costs
Deferred Contract Costs
Deferred costs	705	705		782
Total deferred costs amortized	218	459
Capitalized costs to fulfill contracts
Deferred Contract Costs
Deferred costs	219	219		285
Capitalized costs to obtain contracts
Deferred Contract Costs
Deferred costs	$ 281	$ 281		$ 313
Minimum
Deferred Contract Costs
Term of contract with customer		3 years
Maximum
Deferred Contract Costs
Term of contract with customer		6 years

SEGMENTS (Details)

SEGMENTS (Details)	6 Months Ended
SEGMENTS (Details)	Sep. 30, 2023 segment
SEGMENTS
Number of reportable segments	4

SEGMENTS - Results of segments

SEGMENTS - Results of segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Information
Revenues	$ 4,073	$ 4,179	$ 8,266	$ 8,467
Segment adjusted EBITDA	596	448	1,232	959
United States
Segment Information
Revenues	1,108	1,149	2,272	2,317
Segment adjusted EBITDA	176	167	412	367
Japan
Segment Information
Revenues	569	614	1,180	1,249
Segment adjusted EBITDA	84	113	184	228
Principal Markets
Segment Information
Revenues	1,465	1,472	2,949	2,988
Segment adjusted EBITDA	185	57	352	157
Strategic Markets
Segment Information
Revenues	930	944	1,865	1,914
Segment adjusted EBITDA	$ 150	$ 111	$ 283	$ 207

SEGMENTS - Reconciliation of co

SEGMENTS - Reconciliation of consolidated pretax income (loss) to segment adjusted EBITDA (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
SEGMENTS
Segment adjusted EBITDA	$ 596	$ 448	$ 1,232	$ 959
Workforce rebalancing charges	(39)	(3)	(97)	(6)
Charges related to ceasing to use leased / fixed assets and lease terminations			(10)
Transaction-related costs	(48)	(68)	(89)	(171)
Stock-based compensation expense	(25)	(28)	(48)	(54)
Interest expense	(31)	(19)	(61)	(38)
Depreciation of property, equipment and capitalized software	(220)	(221)	(431)	(449)
Amortization expense	(313)	(301)	(646)	(609)
Corporate expense not allocated to the segments	(21)	(20)	(45)	(40)
Other adjustments	(7)	(9)	(23)	(18)
Income (loss) before income taxes	$ (109)	$ (219)	$ (218)	$ (425)

TAXES (Details)

TAXES (Details)	3 Months Ended		6 Months Ended
TAXES (Details)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
TAXES
Effective tax rate (as a percent)	(30.30%)	(27.90%)	(29.80%)	(25.10%)

NET LOSS PER SHARE - Computatio

NET LOSS PER SHARE - Computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
NET LOSS PER SHARE
Stock dividends declared	$ 0	$ 0	$ 0	$ 0
Net income (loss) on which basic and diluted earnings per share is calculated	$ (142)	$ (281)	$ (283)	$ (531)
Weighted-average shares outstanding during period
Number of shares on which basic earnings per share is calculated	229.1	226.8	228.5	226
Number of shares on which diluted earnings per share is calculated	229.1	226.8	228.5	226
Basic earnings (loss) per share	$ (0.62)	$ (1.24)	$ (1.24)	$ (2.35)
Diluted earnings (loss) per share	$ (0.62)	$ (1.24)	$ (1.24)	$ (2.35)

NET LOSS PER SHARE - Anti dilut

NET LOSS PER SHARE - Anti dilutive securities (Details) - shares shares in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	18.2	19.6
Restricted stock units
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	9	11
Performance-conditioned stock units
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	2.8	2.4
Market-conditioned stock units
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	2.7	2.4
Employee Stock Option
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	3.6	3.7

FINANCIAL ASSETS AND LIABILIT_3

FINANCIAL ASSETS AND LIABILITIES - Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities, Current	Accrued Liabilities and Other Liabilities, Current
Foreign exchange contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	$ 37	$ 15
Derivative liabilities	18	9
Fair value, net	19	6
Designated as hedging instruments \| Foreign exchange contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	18	4
Derivative liabilities	4	3
Fair value, net	14	1
Not designated as hedging instruments - economic hedges \| Foreign exchange contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	19	11
Derivative liabilities	14	5
Fair value, net	$ 5	$ 6

FINANCIAL ASSETS AND LIABILIT_4

FINANCIAL ASSETS AND LIABILITIES - Not Measured at Fair Value (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Financial assets and financial liabilities:
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current		Prepaid Expense and Other Assets, Current		Prepaid Expense and Other Assets, Current
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities, Current		Accrued Liabilities and Other Liabilities, Current		Accrued Liabilities and Other Liabilities, Current
Derivative assets impacted by netting arrangements	$ 0		$ 0		$ 0
Impairments of non-financial assets	0	$ 0	0	$ 0
Long-term debt	3,000		3,000		3,000
Long-term debt, fair value	2,500		2,500		2,500
Gross proceeds from third parties	913	722	2,100	1,300
Fees associated with the transfers of receivables	12	$ 12	28	$ 20
Time deposits
Financial assets and financial liabilities:
Impairments of non-financial assets			0		0
Cash and cash equivalents \| Time deposits
Financial assets and financial liabilities:
Available-for-sale debt securities	$ 713		$ 713		$ 814

FINANCIAL ASSETS AND LIABILIT_5

FINANCIAL ASSETS AND LIABILITIES - Foreign Exchange Risk (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Sep. 30, 2023	Mar. 31, 2023
Not designated as hedging instruments - economic hedges \| Currency swaps
Derivatives, Fair Value [Line Items]
Notional amount	$ 1,600	$ 1,500
Not designated as hedging instruments - economic hedges \| Currency swaps \| Maximum
Derivatives, Fair Value [Line Items]
Term of contract	1 year
Derivative instruments in cash flow hedges \| Designated as hedging instruments \| Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Net gains from derivatives	$ 22	1
Deferred net gains on derivatives reclassified to net income	22
Derivative instruments in cash flow hedges \| Designated as hedging instruments \| Foreign exchange forward contracts
Derivatives, Fair Value [Line Items]
Notional amount	$ 644	$ 283
Maximum length of time hedged	1 year
Weighted average remaining maturity	4 months 24 days	6 months

FINANCIAL ASSETS AND LIABILIT_6

FINANCIAL ASSETS AND LIABILITIES - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	$ 0	$ 0	$ 0	$ 0
Designated as hedging instruments \| Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	11		26	(5)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	4		5	1
Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (loss) from derivatives	$ (36)	$ (14)	$ (53)	$ (16)
Foreign exchange contracts \| Designated as hedging instruments \| Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Cost of Revenue	Cost of Revenue	Cost of Revenue	Cost of Revenue
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	$ 11		$ 26	$ (5)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	4		5	1
Foreign exchange contracts \| Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (loss) from derivatives	$ (36)	$ (14)	$ (53)	$ (16)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Income and Expense	Other Income and Expense	Other Income and Expense	Other Income and Expense

INTANGIBLE ASSETS INCLUDING G_3

INTANGIBLE ASSETS INCLUDING GOODWILL - Intangible Assets by Class (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2023
Intangible asset balances by major asset class
Gross Carrying Amount	$ 394		$ 394		$ 353
Accumulated Amortization	(206)		(206)		(182)
Net Carrying Amount	188		188		171
Intangible asset amortization expense	16	$ 10	27	$ 25
Net carrying amount of intangible assets increased			17
Capitalized software
Intangible asset balances by major asset class
Gross Carrying Amount	137		137		83
Accumulated Amortization	(28)		(28)		(15)
Net Carrying Amount	109		109		68
Intangible asset amortization expense	9		13
Customer relationships
Intangible asset balances by major asset class
Gross Carrying Amount	221		221		232
Accumulated Amortization	(152)		(152)		(141)
Net Carrying Amount	70		70		91
Completed technology
Intangible asset balances by major asset class
Gross Carrying Amount	20		20		20
Accumulated Amortization	(20)		(20)		(20)
Patents and trademarks
Intangible asset balances by major asset class
Gross Carrying Amount	17		17		18
Accumulated Amortization	(7)		(7)		(6)
Net Carrying Amount	$ 10		$ 10		$ 13

INTANGIBLE ASSETS INCLUDING G_4

INTANGIBLE ASSETS INCLUDING GOODWILL - Future Amortization Expense (Details) $ in Millions	Sep. 30, 2023 USD ($)
Future amortization expense, by year
2024 (remaining six months)	$ 31
2025	59
2026	54
2027	42
2028	1
Thereafter	1
Capitalized software
Future amortization expense, by year
2024 (remaining six months)	17
2025	35
2026	33
2027	24
Customer relationships
Future amortization expense, by year
2024 (remaining six months)	13
2025	21
2026	18
2027	15
2028	1
Thereafter	1
Patents and trademarks
Future amortization expense, by year
2024 (remaining six months)	1
2025	3
2026	3
2027	$ 2

INTANGIBLE ASSETS INCLUDING G_5

INTANGIBLE ASSETS INCLUDING GOODWILL - Goodwill by Segment (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Changes in Goodwill Balances
Beginning Balance	$ 812
Impairment	0	$ 0
Additions and Other Adjustments	(6)
Ending Balance	806
Japan
Changes in Goodwill Balances
Beginning Balance	495
Additions and Other Adjustments	(6)
Ending Balance	489
Principal Markets
Changes in Goodwill Balances
Beginning Balance	142
Ending Balance	142
Strategic Markets
Changes in Goodwill Balances
Beginning Balance	176
Ending Balance	$ 176

BORROWINGS - Debt (Details)

BORROWINGS - Debt (Details) - USD ($) $ in Millions	Sep. 30, 2023	Mar. 31, 2023
BORROWINGS
Financing lease obligations	$ 278	$ 242
Total	3,260	3,238
Less: Unamortized discount	4	5
Less: Unamortized debt issuance costs	12	13
Less: Current maturities of long-term debt	121	110
Total	$ 3,123	3,111
Finance lease obligations, interest rate (as a percent)	5.03%
Unsecured floating-rate term loan
BORROWINGS
Long-term debt	$ 500	500
Debt instrument, weighted-average interest rate (as a percent)	6.55%
Unsecured floating-rate term loan \| SOFR
BORROWINGS
Debt instrument, weighted-average interest rate (as a percent)	1.225%
Commercial loan agreement
BORROWINGS
Long-term debt	$ 82	96
Debt instrument, weighted-average interest rate (as a percent)	3%
Unsecured senior notes due 2026
BORROWINGS
Long-term debt	$ 700	700
Debt instrument, weighted-average interest rate (as a percent)	2.05%
Unsecured senior notes due 2028
BORROWINGS
Long-term debt	$ 500	500
Debt instrument, weighted-average interest rate (as a percent)	2.70%
Unsecured senior notes due 2031
BORROWINGS
Long-term debt	$ 650	650
Debt instrument, weighted-average interest rate (as a percent)	3.15%
Unsecured senior notes due 2041
BORROWINGS
Long-term debt	$ 550	$ 550
Debt instrument, weighted-average interest rate (as a percent)	4.10%

BORROWINGS - Contractual obliga

BORROWINGS - Contractual obligations of long-term debt outstanding (Details) $ in Millions	Sep. 30, 2023 USD ($)
Pre-swap annual contractual obligations of long-term debt outstanding
2024 (remaining six months)	$ 14
2025	529
2026	29
2027	710
Thereafter	1,700
Total	$ 2,982

BORROWINGS - Additional Informa

BORROWINGS - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
BORROWINGS
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 53	$ 29	$ 150	$ 37
Extinguishment of certain finance lease obligations	67
Revolving Credit Agreement
BORROWINGS
Borrowing credit facility	$ 0		$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	1 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	May 31, 2022 USD ($)	Sep. 30, 2023 employee
Loss Contingencies
Number of employees \| employee		85,000
BMC v. IBM \| IBM
Loss Contingencies
Direct damages sought, value	$ 717
Punitive damages sought, value	$ 717

EQUITY - Reclassifications and

EQUITY - Reclassifications and Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss)	$ (105)	$ (214)	$ (104)	$ (478)
Accumulated Other Comprehensive Income (Loss)
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss), before tax amount	(101)	(211)	(100)	(474)
Other comprehensive income (loss), tax (expense) benefit	(3)	(3)	(5)	(4)
Other comprehensive income (loss)	(105)	(214)	(104)	(478)
Foreign Currency Translation Adjustments
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss), before tax amount	(109)	(221)	(125)	(488)
Other comprehensive income (loss)	(109)	(221)	(125)	(488)
Unrealized Gains (Losses) on Cash Flow Hedges
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Unrealized gains (losses) arising during the period, before tax amount	11		26	(5)
Unrealized gains (losses) arising during the period, tax (expense) benefit	(4)		(5)	2
Unrealized gains (losses) arising during the period, net of tax amount	7		21	(3)
Reclassification/amortization, before tax amount	(4)		(5)	(1)
Reclassification/amortization, tax (expense) benefit	1		1
Reclassification/amortization, net of tax amount	(3)		(4)	(1)
Other comprehensive income (loss), before tax amount	7		21	(6)
Other comprehensive income (loss), tax (expense) benefit	(3)		(4)	2
Other comprehensive income (loss)	4		17	(4)
Net Change Retirement-Related Benefit Plans
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss), before tax amount	1	10	4	20
Other comprehensive income (loss), tax (expense) benefit		(3)	(1)	(6)
Other comprehensive income (loss)	1	$ 7	3	$ 14
Retirement-Related Benefit Plans, Prior Service Costs (Credits)
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Reclassification/amortization, before tax amount			1
Reclassification/amortization, net of tax amount			1
Retirement-Related Benefit Plans, Net Gains (Losses)
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Reclassification/amortization, before tax amount	1		3
Reclassification/amortization, tax (expense) benefit			(1)
Reclassification/amortization, net of tax amount	$ 1		$ 2

EQUITY - AOCI Rollforward (Deta

EQUITY - AOCI Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
EQUITY - AOCI Rollforward (Details) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	$ 1,338	$ 2,211	$ 1,462	$ 2,711
Other comprehensive income (loss)	(105)	(214)	(104)	(478)
Balance at the end of the period	1,113	1,746	1,113	1,746
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(1,062)	(1,353)	(1,062)	(1,089)
Other comprehensive income (loss)	(105)	(214)	(104)	(478)
Balance at the end of the period	(1,167)	(1,567)	(1,167)	(1,567)
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	13	(1)		3
Other comprehensive income (loss)	4		17	(4)
Balance at the end of the period	17	(1)	17	(1)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(936)	(1,002)	(921)	(735)
Other comprehensive income (loss)	(109)	(221)	(125)	(488)
Balance at the end of the period	(1,045)	(1,223)	(1,045)	(1,223)
Net Change Retirement-Related Benefit Plans
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(140)	(350)	(142)	(357)
Other comprehensive income (loss)	1	7	3	14
Balance at the end of the period	$ (139)	$ (343)	$ (139)	$ (343)

RETIREMENT-RELATED BENEFITS - N

RETIREMENT-RELATED BENEFITS - Net Periodic Pension Cost for Defined Benefit Pension Plans (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cost/(Income) of Pension Plans
Service cost	$ 9	$ 12	$ 19	$ 24
Interest cost	$ 15	$ 9	$ 29	$ 18
Interest cost - income statement location	Other expense (income)	Other expense (income)	Other expense (income)	Other expense (income)
Expected return on plan assets	$ (16)	$ (10)	$ (30)	$ (21)
Expected return on plan assets - income statement location	Other expense (income)	Other expense (income)	Other expense (income)	Other expense (income)
Amortization of prior service costs (credits)			$ 1
Amortization of prior service costs/(credits) - income statement location			Other expense (income)
Recognized actuarial losses (gains)	$ 1	$ 10	$ 3	$ 20
Recognized actuarial losses (gains) - income statement location	Other expense (income)	Other expense (income)	Other expense (income)	Other expense (income)
Total net periodic pension cost	$ 9	$ 21	$ 21	$ 41

TRANSACTIONS WITH FORMER PARE_2

TRANSACTIONS WITH FORMER PARENT - Related Party Revenue and Purchases (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		14 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Aug. 11, 2022
Related Party Transaction [Line Items]
Revenues	$ 4,073	$ 4,179	$ 8,266	$ 8,467
Cost of services	3,422	3,613	6,871	7,290
Payment for purchase of hardware from IBM			275	466
Related Party
Related Party Transaction [Line Items]
Revenues		82		287
Cost of services		421		1,382
IBM
Related Party Transaction [Line Items]
Ownership interest transferred						19.90%
IBM \| Hardware, software and services
Related Party Transaction [Line Items]
Payment for purchase of hardware from IBM				89
Due from related party	265	265	265	$ 265	$ 265
Upgraded hardware period				2 years
Purchases from related party	$ 84	21	$ 110	$ 21	$ 193
Estimated useful lives (in years)	5 years		5 years		5 years
IBM \| Related Party
Related Party Transaction [Line Items]
Revenues	$ 0	82	$ 0	287
Cost of services	$ 0	$ 421	$ 0	$ 1,382

TRANSACTIONS WITH FORMER PARE_3

TRANSACTIONS WITH FORMER PARENT - Lease Guarantees (Details) $ in Millions	Sep. 30, 2023 USD ($)
IBM \| Related Party
Related Party Transaction [Line Items]
Lease liability guaranteed by IBM	$ 56

WORKFORCE REBALANCING AND SIT_3

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES (Details) $ in Millions	3 Months Ended	6 Months Ended	18 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
RESTRUCTURING
Charges	$ 39	$ 107	$ 242
Restructuring and related expected costs	290	290	290
Workforce Rebalancing Charges
RESTRUCTURING
Charges		97
Restructuring and related expected costs	180	180	180
Charges Related to Ceasing to Use Leased Assets
RESTRUCTURING
Charges		3
Restructuring and related expected costs	110	110	110
Corporate, Non-Segment
RESTRUCTURING
Charges		3	13
United States. \| Operating Segments
RESTRUCTURING
Charges	3	15	28
Japan. \| Operating Segments
RESTRUCTURING
Charges		2	4
Principal Markets \| Operating Segments
RESTRUCTURING
Charges	19	42	105
Strategic Markets \| Operating Segments
RESTRUCTURING
Charges	$ 16	$ 45	$ 91

WORKFORCE REBALANCING AND SIT_4

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES - Classification of restructuring activity (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	18 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2023
RESTRUCTURING
Charges	$ 39	$ 107	$ 242
Cost of services
RESTRUCTURING
Charges	(3)	(3)	68
Selling, general and administrative expense.
RESTRUCTURING
Charges	3	13	22
Workforce rebalancing charges (benefits)
RESTRUCTURING
Charges	$ 39	$ 97	$ 152

WORKFORCE REBALANCING AND SIT_5

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	18 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2023	Mar. 31, 2023
RESTRUCTURING
Balance at beginning of period		$ 58
Charges	$ 39	107	$ 242
Cash payments		(112)
Non-cash adjustments		(9)
Balance at end of period	45	45	45
Workforce Rebalancing Charges
RESTRUCTURING
Balance at beginning of period		55
Charges		97
Cash payments		(107)
Non-cash adjustments		(1)
Balance at end of period	44	44	44
Historic workforce rebalancing liabilities	$ 33	33	$ 33	$ 42
Charges Related to Ceasing to Use Leased Assets
RESTRUCTURING
Charges		3
Non-cash adjustments		(3)
Charges Related to Lease Terminations
RESTRUCTURING
Balance at beginning of period		3
Charges		(3)
Charges Related to Ceasing to Use Fixed Assets
RESTRUCTURING
Charges		10
Cash payments		(5)
Non-cash adjustments		(5)
Workforce Rebalancing Liabilities Inherited from Former Parent
RESTRUCTURING
Cash payments		(6)
Non-cash adjustments		$ 2

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false