Kyndryl (KD) 10-Q7 Nov 242025 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, 2024	Oct. 31, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
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		232,270,932
Entity Central Index Key	0001867072
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2025
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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONSOLIDATED INCOME STATEMENT
Revenues	$ 3,774	$ 4,073	$ 7,513	$ 8,266
Cost of services	3,024	3,422	5,958	6,871
Selling, general and administrative expenses	647	634	1,304	1,353
Workforce rebalancing charges	39	39	74	97
Transaction-related costs		48	21	89
Interest expense	25	31	52	61
Other expense	44	8	44	13
Total costs and expenses	3,779	4,182	7,454	8,484
Income (loss) before income taxes	(5)	(109)	59	(218)
Provision for income taxes	38	33	91	65
Net income (loss)	$ (43)	$ (142)	$ (32)	$ (283)
NET LOSS PER SHARE
Basic earnings (loss) per share (in dollars per share)	$ (0.19)	$ (0.62)	$ (0.14)	$ (1.24)
Diluted earnings (loss) per share (in dollars per share)	$ (0.19)	$ (0.62)	$ (0.14)	$ (1.24)
Weighted-average basic shares outstanding (in shares)	231.6	229.1	231.1	228.5
Weighted-average diluted shares outstanding (in shares)	231.6	229.1	231.1	228.5

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (43)	$ (142)	$ (32)	$ (283)
Foreign currency translation adjustments:
Foreign currency translation adjustments	151	(109)	88	(125)
Unrealized gains (losses) on net investment hedges	(42)		(28)
Total foreign currency translation adjustments	109	(109)	60	(125)
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) arising during the period	(14)	11	(15)	26
Reclassification of (gains) losses to net income		(4)		(5)
Total unrealized gains (losses) on cash flow hedges	(14)	7	(15)	21
Retirement-related benefit plans:
Retirement-related benefit plans - amortization of net (gains) losses	4	1	8	4
Other comprehensive income (loss), before tax	99	(101)	53	(100)
Income tax (expense) benefit related to items of other comprehensive income (loss)	3	(3)	1	(5)
Other comprehensive income (loss), net of tax	102	(105)	54	(104)
Total comprehensive income (loss)	$ 59	$ (247)	$ 22	$ (388)

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Sep. 30, 2024	Mar. 31, 2024
Current assets:
Cash and cash equivalents	$ 1,325	$ 1,553
Restricted cash	5	1
Accounts receivable (net of allowances for credit losses of $17 at September 30, 2024 and $22 at March 31, 2024)	1,441	1,599
Deferred costs (current portion)	994	1,081
Prepaid expenses and other current assets	623	514
Total current assets	4,387	4,747
Property and equipment, net	2,735	2,674
Operating right-of-use assets, net	805	864
Deferred costs (noncurrent portion)	1,052	920
Deferred taxes	209	220
Goodwill	790	805
Intangible assets, net	227	188
Pension assets	123	105
Other noncurrent assets	67	67
Total assets	10,396	10,590
Current liabilities:
Accounts payable	1,240	1,408
Value-added tax and income tax liabilities	298	327
Current portion of long-term debt	135	126
Accrued compensation and benefits	538	609
Deferred income (current portion)	856	825
Operating lease liabilities (current portion)	278	285
Accrued contract costs	404	487
Other accrued expenses and liabilities	500	521
Total current liabilities	4,249	4,589
Long-term debt	3,106	3,112
Retirement and nonpension postretirement benefit obligations	510	500
Deferred income (noncurrent portion)	344	314
Operating lease liabilities (noncurrent portion)	580	622
Other noncurrent liabilities	435	332
Total liabilities	9,224	9,468
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, 2024 - 236.5, March 31, 2024 - 233.7)	4,575	4,524
Accumulated deficit	(2,351)	(2,319)
Treasury stock, at cost (shares: September 30, 2024 - 4.3, March 31, 2024 - 3.3)	(69)	(45)
Accumulated other comprehensive income (loss)	(1,090)	(1,145)
Total stockholders' equity before non-controlling interests	1,065	1,015
Non-controlling interests	107	107
Total equity	1,172	1,122
Total liabilities and equity	$ 10,396	$ 10,590

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2024	Mar. 31, 2024
CONSOLIDATED BALANCE SHEET
Notes and accounts receivable - trade, allowances	$ 17	$ 22
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)	236.5	233.7
Treasury Stock (in shares)	4.3	3.3

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ (32)	$ (283)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation of property, equipment and capitalized software	276	431
Depreciation of right-of-use assets	154	173
Amortization of transition costs and prepaid software	647	631
Amortization of capitalized contract costs	205	281
Amortization of acquisition-related intangible assets	17	15
Stock-based compensation	49	48
Deferred taxes	17	51
Net (gain) loss on asset sales and other	(14)	22
Change in operating assets and liabilities:
Deferred costs (excluding amortization)	(852)	(699)
Right-of-use assets and liabilities (excluding depreciation)	(145)	(195)
Workforce rebalancing liabilities	(13)	(18)
Receivables	193	(110)
Accounts payable	(237)	(494)
Taxes	(31)	(55)
Other assets and other liabilities	(133)	75
Net cash provided by (used in) operating activities	101	(127)
Cash flows from investing activities:
Capital expenditures	(256)	(275)
Proceeds from disposition of property and equipment	54	119
Cash paid for acquisition, net of cash acquired	(46)
Other investing activities, net	7	(53)
Net cash used in investing activities	(241)	(208)
Cash flows from financing activities:
Debt repayments	(73)	(67)
Common stock repurchases for tax withholdings	(24)	(12)
Other financing activities, net	(5)	(1)
Net cash provided by (used in) financing activities	(101)	(80)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	17	(33)
Net change in cash, cash equivalents and restricted cash	(224)	(448)
Cash, cash equivalents and restricted cash at beginning of period	1,554	1,860
Cash, cash equivalents and restricted cash at end of period	1,330	1,412
Supplemental data
Income taxes paid, net of refunds received	89	88
Interest paid on debt	$ 60	$ 59

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, 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
Balance at the beginning of the period at Mar. 31, 2024	$ 4,524	(1,145)	(45)	(2,319)	107	1,122
Balance at the beginning of the period (in shares) at Mar. 31, 2024	230.4
Equity
Net income (loss)				(32)		(32)
Other comprehensive income (loss), net of tax		54				54
Common stock issued under employee plans	$ 51					51
Common stock issued under employee plans (in shares)	2.8
Purchases of treasury stock			(24)			(24)
Purchases of treasury stock (in shares)	(1)
Balance at the end of the period at Sep. 30, 2024	$ 4,575	(1,090)	(69)	(2,351)	107	1,172
Balance at the end of the period (in shares) at Sep. 30, 2024	232.2
Balance at the beginning of the period at Jun. 30, 2024	$ 4,549	(1,192)	(53)	(2,308)	105	1,101
Balance at the beginning of the period (in shares) at Jun. 30, 2024	231
Equity
Net income (loss)				(43)		(43)
Other comprehensive income (loss), net of tax		102				102
Common stock issued under employee plans	$ 26					26
Common stock issued under employee plans (in shares)	1.9
Purchases of treasury stock			(17)			(17)
Purchases of treasury stock (in shares)	(0.7)
Changes in non-controlling interests					2	2
Balance at the end of the period at Sep. 30, 2024	$ 4,575	$ (1,090)	$ (69)	$ (2,351)	$ 107	$ 1,172
Balance at the end of the period (in shares) at Sep. 30, 2024	232.2

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2024
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 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 segment through the distribution of shares of Kyndryl’s common stock to IBM stockholders. 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 on Form 10-K for the fiscal year ended March 31, 2024. 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. Certain items have been recast to conform to current-period presentation. 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. Future results may be different 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. Change in Accounting Estimate In March 2024, the Company completed its assessment of the useful lives of its information technology equipment. Based on our usage experience and data analysis, the Company determined it should increase the estimated useful lives of its information technology equipment from five to six years . This change in accounting estimate became effective on April 1, 2024. Based on the carrying amount of information technology equipment included in property and equipment, net as of March 31, 2024, the effect of this change in estimate was a reduction in depreciation expense and an improvement of income before income taxes of approximately $50 million, or $ 0.22 before income taxes per basic and diluted share for the three months ended September 30, 2024 and approximately $ 110 million, or $ 0.49 before income taxes per basic and diluted share for the six months ended September 30, 2024.

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING PRONOUNCEMENTS	6 Months Ended
ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2024
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS	NOTE 2. ACCOUNTING PRONOUNCEMENTS Recent Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
REVENUE RECOGNITION	Sep. 30, 2024
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, 2024, the aggregate amount of RPO related to customer contracts that are unsatisfied or partially unsatisfied was $34.4 billion. Approximately 57 percent of the amount is expected to be recognized as revenue in the next two years, approximately 37 percent in the subsequent three years, and the balance thereafter. During the three and six months ended September 30, 2024, revenue was increased by $13 million and $20 million, respectively, and during the three and six months ended September 30, 2023, revenue was increased by $2 million and $15 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) 2024 2024 Accounts receivable (net of allowances for credit losses of $17 at September 30, 2024 and $22 at March 31, 2024) * $ 1,441 $ 1,599 Contract assets ** 50 30 Deferred income (current) 856 825 Deferred income (noncurrent) 344 314 * Including unbilled receivable balances of $384 million at September 30, 2024 and $377 million at March 31, 2024. ** 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, 2024 that was included within the deferred income balance at the beginning of the period was $335 million and $524 million, respectively. 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 following table provides roll-forwards of the accounts receivable allowance for expected credit losses for the six months ended September 30, 2024 and 2023. Six Months Ended September 30, (Dollars in millions) 2024 2023 Beginning balance $ 22 $ 32 Additions (releases) (6) — Write-offs 1 (3) Other * — (1) Ending balance $ 17 $ 28 * Primarily represents translation adjustments . The contract assets allowance for expected 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, 2024 and 2023. 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, 2024 or March 31, 2024, respectively. 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, 2024 and March 31, 2024: September 30, March 31, (Dollars in millions) 2024 2024 Deferred transition costs $ 734 $ 753 Prepaid software costs 810 770 Capitalized costs to fulfill contracts 220 212 Capitalized costs to obtain contracts 282 265 Total deferred costs * $ 2,045 $ 2,000 * Of the total deferred costs, $ 994 million was current and $ 1,052 million was noncurrent at September 30, 2024, and $1,081 million was current and $920 million was noncurrent at March 31, 2024. The amount of total deferred costs amortized for the three months ended September 30, 2024 was $435 million, composed of $75 million of amortization of deferred transition costs, $262 million of amortization of prepaid software and $98 million of amortization of capitalized contract costs. The amount of total deferred costs amortized for the six months ended September 30, 2024 was $852 million, composed of $147 million of amortization of deferred transition costs, $500 million of amortization of prepaid software and $205 million of amortization of capitalized contract costs. 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, 2024
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 Company made a minor change to its geographic reportable segments effective June 1, 2024 to reflect how the Company manages its operations and measures business performance, transitioning the reporting and management of its operations in Australia/New Zealand from the Principal Markets segment to the Strategic Markets segment. All historical segment information has been recast to reflect this change. The measure of segment operating performance used by Kyndryl’s CODM is adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) excluding income taxes, interest expense, 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 incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, 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) 2024 2023 2024 2023 Revenue United States $ 960 $ 1,108 $ 1,946 $ 2,272 Japan 604 569 1,174 1,180 Principal Markets 1,318 1,376 2,633 2,768 Strategic Markets 892 1,019 1,761 2,046 Total revenue $ 3,774 $ 4,073 $ 7,513 $ 8,266 Segment adjusted EBITDA United States $ 159 $ 176 $ 292 $ 412 Japan 94 84 177 184 Principal Markets 187 169 428 320 Strategic Markets 138 166 258 315 Total segment adjusted EBITDA $ 579 $ 596 $ 1,156 $ 1,232 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) 2024 2023 2024 2023 Segment adjusted EBITDA $ 579 $ 596 $ 1,156 $ 1,232 Workforce rebalancing charges incurred prior to March 31, 2024 — (39) — (97) Charges related to ceasing to use leased/fixed assets and lease terminations (10) — (20) (10) Transaction-related costs — (48) (21) (89) Stock-based compensation expense (25) (25) (49) (48) Interest expense (25) (31) (52) (61) Depreciation of property, equipment and capitalized software (150) (220) (276) (431) Amortization expense (347) (313) (664) (646) Corporate expense not allocated to the segments (22) (21) (42) (45) Other adjustments* (5) (7) 27 (23) Pretax income (loss) $ (5) $ (109) $ 59 $ (218) * Other adjustments represent pension expenses other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries. For the three and six months ended September 30, 2023, other adjustments also include an adjustment to reduce amortization expense for the amount already included in transaction-related costs above .

TAXES

TAXES	6 Months Ended
TAXES	Sep. 30, 2024
TAXES.
TAXES	NOTE 5. TAXES For the three months ended September 30, 2024, the Company’s effective tax rate was (703.7%), compared to (30.3%) for the three months ended September 30, 2023. For the six months ended September 30, 2024, the Company’s effective tax rate was 154.2%, compared to (29.8%) for the six months ended September 30, 2023. The Company’s negative effective tax rates for the three months ended September 30, 2024 and 2023 and the six months ended September 30, 2023 reflect a tax expense on a pretax book loss in those periods. The Company’s effective tax rate for the three months ended September 30, 2024 and 2023 and the six months ended September 30, 2023 was lower than the Company’s statutory tax rate, and its effective tax rate for the six months ended September 30, 2024 was higher 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, 2024
NET LOSS PER SHARE
NET LOSS PER SHARE	NOTE 6. NET LOSS PER SHARE We did not declare any 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, 2024 and 2023. Three Months Ended September 30, Six Months Ended September 30, (In millions, except per share amounts) 2024 2023 2024 2023 Net income (loss) on which basic and diluted earnings per share is calculated $ (43) $ (142) $ (32) $ (283) Number of shares on which basic and diluted earnings (loss) per share is calculated 231.6 229.1 231.1 228.5 Basic earnings (loss) per share $ (0.19) $ (0.62) $ (0.14) $ (1.24) Diluted earnings (loss) per share (0.19) (0.62) (0.14) (1.24) For the three and six months ended September 30, 2024 and 2023, the number of shares on which basic and diluted earnings (loss) per share is calculated was the same as a result of the net loss incurred in the period. The following securities were not included in the computation of diluted earnings per share: Three Months Ended September 30, Six Months Ended September 30, (In millions) 2024 2023 2024 2023 Nonvested restricted stock units 7.4 9.0 7.8 8.9 Nonvested performance-conditioned stock units 5.4 2.8 5.0 2.2 Nonvested market-conditioned stock units 3.2 2.7 3.1 2.5 Stock options issued and outstanding 3.4 3.6 3.5 3.7 Total 19.4 18.2 19.3 17.3

FINANCIAL ASSETS AND LIABILITIE

FINANCIAL ASSETS AND LIABILITIES	6 Months Ended
FINANCIAL ASSETS AND LIABILITIES	Sep. 30, 2024
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 and ● 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. The determination of fair value considers various factors including yield curves and time value underlying the financial instruments. For derivatives and debt securities, the Company uses a discounted cash flow analysis using discount rates commensurate with the duration of the instrument. In determining the fair value of 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 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 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, 2024 and 2023. 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, 2024 and March 31, 2024: Fair Value Hierarchy At September 30, 2024 At March 31, 2024 (Dollars in millions) Level Assets Liabilities Fair Value Assets Liabilities Fair Value Derivatives designated as hedging instruments: Foreign exchange contracts 2 $ 1 $ 23 $ (22) $ 2 $ 1 $ 1 Cross-currency swap contracts 2 10 26 (16) 1 11 (9) Derivatives not designated as hedging instruments: Foreign exchange contracts 2 9 23 (14) 2 6 (4) Total $ 19 $ 71 $ (52) $ 5 $ 18 $ (13) The gross balances of derivative assets, including accrued interest, are contained within prepaid expenses and other current assets and other noncurrent assets in the Consolidated Balance Sheet. The gross balances of derivative liabilities are contained within other accrued expenses and liabilities and other noncurrent 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, 2024 and March 31, 2024. 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 instruments 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, 2024 and March 31, 2024 were $701 million and $828 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, or 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. See Note 10 – Borrowings for additional information. Our outstanding debt had a carrying value of $2.9 billion as of September 30, 2024 and March 31, 2024, with an estimated fair value of $2.7 billion as of September 30, 2024 and $2.6 billion as of March 31, 2024. 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 arrangements 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 $1.1 billion and $1.9 billion for the three and six months ended September 30, 2024, respectively, and $913 million and $2.1 billion for the three and six months ended September 30, 2023, respectively. The fees associated with the transfers of receivables were $10 million and $20 million for the three and six months ended September 30, 2024, respectively, and $12 million and $28 million for the three and six months ended September 30, 2023, respectively. Derivative Financial Instruments The following table summarizes the notional amounts of the Company’s outstanding derivatives: At September 30, 2024 At March 31, 2024 (Dollars in millions) Foreign Exchange Contracts Cross-currency Swap Contracts Total Notional Amount Foreign Exchange Contracts Cross-currency Swap Contracts Total Notional Amount Derivatives designated as hedging instruments Cash flow hedges $ 363 $ — $ 363 $ 281 $ — $ 281 Net investment hedges 688 500 1,188 — 500 500 Derivatives not designated as hedging instruments $ 2,553 $ — $ 2,553 $ 1,624 $ — $ 1,624 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. Derivatives Designated as Hedging Instruments Cash Flow Hedges 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 (“OCI”) 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. The maximum remaining length of time over which the Company hedged its exposure is approximately one year. At September 30, 2024 and March 31, 2024, the weighted-average remaining maturity of these instruments was approximately 0.5 years. At September 30, 2024 and March 31, 2024, in connection with cash flow hedges of foreign currency cost transactions, the Company had unrealized losses of $14 million and unrealized gains of $2 million (each before taxes), respectively, in accumulated other comprehensive income (“AOCI”). The Company estimates that $14 million (before taxes) of net deferred losses on derivatives in AOCI at September 30, 2024 will be reclassified to net income within the next twelve months, providing an offsetting economic impact against the underlying anticipated transactions. Net Investment Hedges The Company has entered into and designated cross-currency interest rate swap contracts and currency forward contracts as net investment hedges to mitigate foreign exchange exposure related to net investments. Under the terms of the cross-currency swaps, the Company makes fixed-rate payments in foreign currencies and receives fixed-rate amounts in U.S. dollars, with the exchange of the underlying notional amounts at maturity whereby the Company will receive U.S. dollars and pay foreign currencies at exchange rates which are determined at contract inception. Under the terms of the currency forward contracts, the Company commits to sell the local currency of certain subsidiaries in exchange for U.S. dollars at specified forward rates. Derivatives designated as net investment hedges are accounted for using the spot method, with changes in the fair value of the derivatives attributable to changes in spot rates recorded within foreign currency translation (“CTA”) as a component of other comprehensive income (loss) and remaining there until the hedged net investments are sold or substantially liquidated. The changes in the fair value of the derivatives that are attributable to changes in the difference between the forward rate and spot rate are excluded from the assessment of hedge effectiveness. The changes in fair value that are attributable to the excluded components are initially recorded in CTA and then recognized in interest expense on the Consolidated Income Statement over the life of the derivative instruments. Cash flows from derivatives designated as net investment hedges are reported as cash flows from investing activities in the Consolidated Statement of Cash Flows, except for cash flows from the periodic interest settlements of cross-currency interest rate swaps designated as net investment hedges, which are reported as cash flows from operating activities in the Consolidated Statement of Cash Flows. The maximum remaining length of time over which the Company has hedged its exposure is approximately nine years. At September 30, 2024 and March 31, 2024, the weighted-average remaining maturity of the Company’s net investment hedge instruments was approximately five years and ten years, respectively. At September 30, 2024 and March 31, 2024, the Company had unrealized losses of $39 million and $11 million (each before taxes), respectively, in AOCI related to net investment hedges. 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 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 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. 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: 2024 2023 Line Item 2024 2023 Derivative instruments in cash flow hedges: Foreign exchange contracts $ (14) $ 11 Cost of services $ — $ 4 Derivative instruments in net investment hedges: Cross-currency swaps (16) — Interest expense 2 — Foreign exchange contracts (21) — Interest expense 3 — Total $ (51) $ 11 $ 6 $ 4 Unrealized Gain (Loss) Consolidated Gain (Loss) (Dollars in millions) Recognized in OCI Income Statement Reclassified from AOCI Six months ended September 30: 2024 2023 Line Item 2024 2023 Derivative instruments in cash flow hedges: Foreign exchange contracts $ (15) $ 26 Cost of services $ — $ 5 Derivative instruments in net investment hedges: Cross-currency swaps — — Interest expense 6 — Foreign exchange contracts (19) — Interest expense 3 — Total $ (34) $ 26 $ 10 $ 5 * For the three and six months ended September 30, 2024, the Company recognized a gain of $ 5 million and $ 9 million, respectively, in interest expense on components excluded from the assessment of the hedge effectiveness for net investment hedges. There were no net investment hedges in the three and six months ended September 30, 2023. For the three and six months ended September 30, 2024 and 2023, 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 2024 2023 Foreign exchange contracts Other expense $ 31 $ (36) Total $ 31 $ (36) Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Six months ended September 30: Line Item 2024 2023 Foreign exchange contracts Other expense $ 3 $ (53) Total $ 3 $ (53)

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES	6 Months Ended
ACQUISITIONS AND DIVESTITURES	Sep. 30, 2024
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES	NOTE 8. ACQUISITIONS AND DIVESTITURES Acquisition of Skytap In April 2024, the Company completed the acquisition of Skytap, Inc. (“Skytap”), a leading specialized workload services provider, by acquiring all outstanding equity interests of Skytap in exchange for cash consideration. The acquisition of Skytap was accounted for as a business combination in accordance with ASC 805, Business Combinations The acquisition of Skytap expands the Company’s hybrid cloud services portfolio. The purchase price allocation resulted in approximately $43 million in intangible assets, primarily consisting of $13 million in completed technologies and $30 million in customer relationships with estimated useful lives of five We do not expect the goodwill to be deductible for income tax purposes. During the quarter ended September 30, 2024, the Company made immaterial adjustments to the preliminary purchase price allocation impacting the valuation of goodwill and assets transferred. The purchase price allocation for this acquisition is preliminary, and there may be further changes in the allocation of consideration to assets acquired and liabilities assumed, including intangible assets and goodwill, for up to twelve months from the acquisition date. Disposal of the Securities Industry Services (“SIS”) Business In the three months ended June 30, 2024, the Company entered into a definitive agreement to sell its transaction processing platform for the securities brokerage industry services in Canada (which is a component of the Company’s Principal Markets segment), known as “SIS”, for approximately $185 million in cash. The Company classifies assets and liabilities as held for sale in the period when all the relevant classification criteria have been met. Assets and liabilities held for sale are measured at the lower of carrying value or fair value less costs to sell. Losses (if any) resulting from the measurement are recognized in the period in which the held for sale criteria are met. Conversely, gains from a disposal group are not recognized until the date of sale. The fair value of a disposal group, less any costs to sell, will be reassessed during each subsequent reporting period it remains classified as held for sale, and any subsequent changes will be reported as an adjustment to the carrying value of the disposal group until it is no longer classified as held for sale. Upon determining that a disposal group meets the criteria as held for sale, the Company discontinues depreciation and amortization of the related assets and liabilities. The Company classified the assets and liabilities related to SIS as held for sale in the three months ended June 30, 2024 within “Prepaid expenses and other current assets” and “Other accrued expenses and liabilities” on the Consolidated Balance Sheet. This disposition is not accounted for as discontinued operations as it does not meet the relevant criteria. The carrying value of the net assets being sold is not material.

INTANGIBLE ASSETS INCLUDING GOO

INTANGIBLE ASSETS INCLUDING GOODWILL	6 Months Ended
INTANGIBLE ASSETS INCLUDING GOODWILL	Sep. 30, 2024
INTANGIBLE ASSETS INCLUDING GOODWILL
INTANGIBLE ASSETS INCLUDING GOODWILL	NOTE 9. INTANGIBLE ASSETS INCLUDING GOODWILL Intangible Assets The following table presents the Company’s intangible asset balances by major asset class. At September 30, 2024 At March 31, 2024 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Dollars in millions) Amount Amortization Amount Amount Amortization Amount Capitalized software $ 187 $ (53) $ 133 $ 172 $ (48) $ 125 Customer relationships* 125 (51) 74 152 (96) 56 Completed technology 13 (1) 12 — — — Patents and trademarks* 16 (8) 7 14 (6) 8 Total $ 340 $ (114) $ 227 $ 339 $ (150) $ 188 * Amounts include effects from foreign currency translation. The net carrying amount of intangible assets increased by $38 million during the six months ended September 30, 2024, primarily due to intangible assets acquired as part of the acquisition of Skytap and capitalized software added during the period, partially offset by amortization. The aggregate intangible asset amortization expense was $17 million and $36 million for the three and six months ended September 30, 2024, compared to $16 million and $27 million for the three and six months ended September 30, 2023, respectively. This included amortization of capitalized software of $7 million and $19 million for the three and six months ended September 30, 2024, which was reported in “Depreciation of property, equipment and capitalized software” on the Consolidated Statement of Cash Flows. During the three and six months ended September 30, 2024, respectively, the Company retired approximately $75 million of fully amortized intangible assets, primarily related to customer relationships. The future amortization expense relating to intangible assets currently recorded in the Consolidated Balance Sheet was estimated to be the following at September 30, 2024: Capitalized Customer Completed Patents and (Dollars in millions) Software Relationships Technology Trademarks Total Year ending March 31: 2025 (remaining six months) $ 21 $ 11 $ 1 $ 2 $ 35 2026 41 22 3 3 69 2027 41 19 3 3 66 2028 17 5 3 — 25 2029 11 5 3 — 19 Thereafter 2 11 — — 13 Goodwill The changes in the goodwill balances by segment for the six months ended September 30, 2024 were as follows: Foreign Currency (Dollars in millions) Balance at Acquisitions and Translation Balance at Segment March 31, 2024 (Divestitures)* Adjustments Reallocation September 30, 2024 United States $ — $ 10 $ — $ — $ 10 Japan 488 — 3 — 491 Principal Markets 141 (28) — (23) 90 Strategic Markets 176 — — 23 198 Total $ 805 $ (18) $ 2 $ — $ 790 * These amounts represent the goodwill acquired as part of the purchase of Skytap, in addition to the allocation of goodwill to assets held for sale related to the divestiture of the SIS business using the relative fair value approach. See Note 8 – Acquisitions and Divestitures for additional details. As discussed in Note 4 – Segments, Kyndryl’s operations in Australia/New Zealand transitioned from the Principal Markets segment to the Strategic Markets segment in the quarter ended June 30, 2024. As a result, the Company reallocated the goodwill associated with Australia/New Zealand from the Principal Markets segment to the Strategic Markets segment. The Company also performed a qualitative impairment test immediately before and after the change in reporting units and determined that it is not more likely than not that the fair value of the reporting units is less than their carrying amounts, including goodwill. Accordingly, the Company concluded that the goodwill related to those reporting units was not impaired. There were no goodwill impairment losses recorded for the six months ended September 30, 2024 and 2023. 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, 2024
BORROWINGS
BORROWINGS	NOTE 10. BORROWINGS Debt The following table presents the components of our debt: September 30, March 31, (Dollars in millions) Interest Rate Maturity 2024 2024 Commercial loan agreement 3.00% July 2026 $ 54 $ 68 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 2034 6.35% * February 2034 500 500 Unsecured senior notes due 2041 4.10% October 2041 550 550 Finance lease obligations 5.67% ** 2024-2030 306 291 $ 3,260 $ 3,259 Less: Unamortized discount 4 5 Less: Unamortized debt issuance costs 15 16 Less: Current portion of long-term debt 135 126 Total long-term debt $ 3,106 $ 3,112 * Including the cross-currency swaps that the Company entered into subsequent to the issuance of the unsecured senior notes due 2034, the effective interest rate on such notes was approximately 3.84% at the time of issuance. For more information, see Note 7 – Financial Assets and Liabilities. ** Weighted-average discount rate. Contractual obligations of long-term debt outstanding at September 30, 2024, exclusive of finance lease obligations, are as follows: (Dollars in millions)* Principal Year ending March 31: 2025 (remaining six months) $ 14 2026 29 2027 710 2028 — 2029 500 Thereafter 1,700 Total $ 2,954 * Contractual obligations approximate scheduled repayments. As of September 30, 2024, 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, 2024
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 11. COMMITMENTS AND CONTINGENCIES The Company guarantees certain loans and financial commitments, but 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, 2024 and March 31, 2024 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 six months ended September 30, 2024, contractual commitments decreased due to satisfaction of existing commitments outpacing new additions. As a Fortune 500 company with customers and employees 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, 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, for which IBM might have tried to seek an indemnity from the Company. However, IBM appealed the judgment, and in April 2024, the court of appeals overturned the judgment against IBM. Accordingly, we do not expect to have any liability related to this judgment. 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. Certain of these matters have recently been concluded, resulting in a credit recorded in Cost of services in the six months ended September 30, 2024, while others are in preliminary stages. 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, 2024
EQUITY
EQUITY	NOTE 12. 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, 2024 and 2023: Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the three months ended September 30, 2024: Foreign currency translation adjustments: Foreign currency translation adjustments $ 151 $ — $ 151 Unrealized gains (losses) on net investment hedges (42) — (42) Total foreign currency translation adjustments $ 109 $ — $ 109 Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ (14) $ 4 $ (9) Reclassification of (gains) losses to net income — — — Total unrealized gains (losses) on cash flow hedges $ (14) $ 4 $ (10) Retirement-related benefit plans – amortization of net (gains) losses* $ 4 $ (1) $ 3 Other comprehensive income $ 99 $ 3 $ 102 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 net (gains) losses* $ 1 $ — $ 1 Other comprehensive income (loss) $ (101) $ (3) $ (105) * These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 13 – Retirement-Related Benefits for additional information. Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the six months ended September 30, 2024: Foreign currency translation adjustments: Foreign currency translation adjustments $ 88 $ — $ 88 Unrealized gains (losses) on net investment hedges (28) — (28) Total foreign currency translation adjustments $ 60 $ — $ 60 Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ (15) $ 4 $ (11) Reclassification of (gains) losses to net income — — — Total unrealized gains (losses) on cash flow hedges $ (15) $ 4 $ (12) Retirement-related benefit plans – amortization of net (gains) losses* $ 8 $ (2) $ 6 Other comprehensive income $ 53 $ 1 $ 54 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 net (gains) losses* $ 4 $ (1) $ 3 Other comprehensive income (loss) $ (100) $ (5) $ (104) * These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 13 – 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, 2024 $ (1) $ (1,016) $ (175) $ (1,192) Other comprehensive income (loss) (10) 109 3 102 September 30, 2024 $ (11) $ (907) $ (172) $ (1,090) 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) 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, 2024 $ — $ (967) $ (178) $ (1,145) Other comprehensive income (loss) (12) 60 6 54 September 30, 2024 $ (11) $ (907) $ (172) $ (1,090) April 1, 2023 $ — $ (921) $ (142) $ (1,062) Other comprehensive income (loss) 17 (125) 3 (104) September 30, 2023 $ 17 $ (1,045) $ (139) $ (1,167) * Foreign currency translation adjustments are presented gross .

RETIREMENT-RELATED BENEFITS

RETIREMENT-RELATED BENEFITS	6 Months Ended
RETIREMENT-RELATED BENEFITS	Sep. 30, 2024
RETIREMENT-RELATED BENEFITS
RETIREMENT-RELATED BENEFITS	NOTE 13. 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, 2024 and 2023. Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Service cost $ 9 $ 9 $ 18 $ 19 Interest cost* 13 15 27 29 Expected return on plan assets* (15) (16) (30) (30) Amortization of prior service costs (credits)* — — 1 1 Curtailments and settlements* 1 — 1 — Recognized actuarial losses (gains)* 4 1 8 3 Net periodic pension cost $ 12 $ 9 $ 24 $ 21 * These components of net periodic pension cost are included in other expense 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.

WORKFORCE REBALANCING AND SITE-

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES	6 Months Ended
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES	Sep. 30, 2024
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES.
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES	NOTE 14. WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES During the six months ended September 30, 2024, the Company initiated actions to reduce our overall cost structure and increase our operating efficiency which we expect to continue through the end of the 2025 fiscal year. These actions resulted in workforce rebalancing charges, and charges related to ceasing to use leased and owned fixed assets (collectively, the “Fiscal 2025 Program”). We expect the total charges to be incurred related to the Fiscal 2025 Program to be approximately $140 million, consisting of $100 million in workforce rebalancing charges and $40 million in charges related to ceasing to use leased and owned fixed assets. The Company expects that these actions will reduce future payroll costs, rent expenses and depreciation of property and equipment. During the year ended March 31, 2023, the Company initiated actions to reduce our overall cost structure and increase our operating efficiency, which continued through the year ended March 31, 2024. These actions resulted in workforce rebalancing charges, charges related to ceasing to use leased and owned fixed assets, and lease termination charges (collectively, the “Fiscal 2024 Program”). The total charges incurred related to the Fiscal 2024 Program were approximately $310 million, consisting of $190 million in workforce rebalancing charges and $120 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. The following table presents the segment breakout of charges incurred during the three and six months ended September 30, 2024 and 2023. Three Months Ended Six Months Ended Costs Incurred to Date September 30, September 30, Fiscal 2025 Fiscal 2024 (Dollars in millions) 2024 2023 2024 2023 Program Program United States $ 21 $ 3 $ 41 $ 15 $ 42 $ 41 Japan 2 — 3 2 3 4 Principal Markets (1) 9 18 14 38 12 141 Strategic Markets (1) 17 17 36 49 39 109 Sub-total $ 49 $ 39 $ 94 $ 104 $ 97 $ 294 Corporate and other — — — 3 — 13 Total charges $ 49 $ 39 $ 94 $ 107 $ 97 $ 307 (1) Kyndryl’s operations in Australia/New Zealand transitioned from Principal Markets to Strategic Markets in the quarter ended June 30, 2024; historical segment information has been recast to reflect this change. 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, 2024 and 2023. Three Months Ended Six Months Ended Costs Incurred to Date September 30, September 30, Fiscal 2025 Fiscal 2024 (Dollars in millions) 2024 2023 2024 2023 Program Program Cost of services $ 10 $ (3) $ 18 $ (3) $ 18 $ 94 Selling, general and administrative expenses — 3 2 13 2 25 Workforce rebalancing charges 39 39 74 97 77 187 Total charges $ 49 $ 39 $ 94 $ 107 $ 97 $ 307 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, 2024. Liabilities Workforce Related to Rebalancing Ceasing to Use (Dollars in millions) Liabilities* Leased Assets Total Fiscal 2024 Program Balance at March 31, 2024 $ 28 $ — $ 28 Charges — — — Cash payments (25) — (25) Non-cash adjustments (3) — (3) Balance at September 30, 2024 $ — $ — $ — Fiscal 2025 Program Balance at March 31, 2024 $ — $ — $ — Charges 78 20 97 Cash payments (54) — (54) Non-cash adjustments — (20) (20) Balance at September 30, 2024 $ 23 $ — $ 23 * The Fiscal 2024 Program excludes workforce rebalancing liabilities inherited from our former Parent of $29 million as of March 31, 2024. Current-year movement excludes cash payments of $ 7 million and ending balance of $ 22 million related to actions initiated by our former Parent. Workforce rebalancing liabilities are recorded within other liabilities in the Consolidated Balance Sheet.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2024
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 15. SUBSEQUENT EVENT The Company completed the sale of the SIS business described in Note 8 – Acquisitions and Divestitures

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
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

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2024
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 on Form 10-K for the fiscal year ended March 31, 2024. 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. Certain items have been recast to conform to current-period presentation.
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. Future results may be different 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.
Change in Accounting Estimate	Change in Accounting Estimate In March 2024, the Company completed its assessment of the useful lives of its information technology equipment. Based on our usage experience and data analysis, the Company determined it should increase the estimated useful lives of its information technology equipment from five to six years . This change in accounting estimate became effective on April 1, 2024. Based on the carrying amount of information technology equipment included in property and equipment, net as of March 31, 2024, the effect of this change in estimate was a reduction in depreciation expense and an improvement of income before income taxes of approximately $50 million, or $ 0.22 before income taxes per basic and diluted share for the three months ended September 30, 2024 and approximately $ 110 million, or $ 0.49 before income taxes per basic and diluted share for the six months ended September 30, 2024.
Recent Pronouncements	Recent Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures
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 Company made a minor change to its geographic reportable segments effective June 1, 2024 to reflect how the Company manages its operations and measures business performance, transitioning the reporting and management of its operations in Australia/New Zealand from the Principal Markets segment to the Strategic Markets segment. All historical segment information has been recast to reflect this change. The measure of segment operating performance used by Kyndryl’s CODM is adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) excluding income taxes, interest expense, 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 incurred prior to March 31, 2024, impairment expense, significant litigation costs and benefits, 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, 2024
REVENUE RECOGNITION
Schedule of reconciliation of contract balances	September 30, March 31, (Dollars in millions) 2024 2024 Accounts receivable (net of allowances for credit losses of $17 at September 30, 2024 and $22 at March 31, 2024) * $ 1,441 $ 1,599 Contract assets ** 50 30 Deferred income (current) 856 825 Deferred income (noncurrent) 344 314 * Including unbilled receivable balances of $384 million at September 30, 2024 and $377 million at March 31, 2024. ** 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 allowance for expected credit losses	Six Months Ended September 30, (Dollars in millions) 2024 2023 Beginning balance $ 22 $ 32 Additions (releases) (6) — Write-offs 1 (3) Other * — (1) Ending balance $ 17 $ 28 * Primarily represents translation adjustments .
Schedule of capitalized costs to acquire and fulfill customer contracts	September 30, March 31, (Dollars in millions) 2024 2024 Deferred transition costs $ 734 $ 753 Prepaid software costs 810 770 Capitalized costs to fulfill contracts 220 212 Capitalized costs to obtain contracts 282 265 Total deferred costs * $ 2,045 $ 2,000 * Of the total deferred costs, $ 994 million was current and $ 1,052 million was noncurrent at September 30, 2024, and $1,081 million was current and $920 million was noncurrent at March 31, 2024.

SEGMENTS (Tables)

SEGMENTS (Tables)	6 Months Ended
SEGMENTS (Tables)	Sep. 30, 2024
SEGMENTS
Summary of results of segments	Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2024 2023 2024 2023 Revenue United States $ 960 $ 1,108 $ 1,946 $ 2,272 Japan 604 569 1,174 1,180 Principal Markets 1,318 1,376 2,633 2,768 Strategic Markets 892 1,019 1,761 2,046 Total revenue $ 3,774 $ 4,073 $ 7,513 $ 8,266 Segment adjusted EBITDA United States $ 159 $ 176 $ 292 $ 412 Japan 94 84 177 184 Principal Markets 187 169 428 320 Strategic Markets 138 166 258 315 Total segment adjusted EBITDA $ 579 $ 596 $ 1,156 $ 1,232
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) 2024 2023 2024 2023 Segment adjusted EBITDA $ 579 $ 596 $ 1,156 $ 1,232 Workforce rebalancing charges incurred prior to March 31, 2024 — (39) — (97) Charges related to ceasing to use leased/fixed assets and lease terminations (10) — (20) (10) Transaction-related costs — (48) (21) (89) Stock-based compensation expense (25) (25) (49) (48) Interest expense (25) (31) (52) (61) Depreciation of property, equipment and capitalized software (150) (220) (276) (431) Amortization expense (347) (313) (664) (646) Corporate expense not allocated to the segments (22) (21) (42) (45) Other adjustments* (5) (7) 27 (23) Pretax income (loss) $ (5) $ (109) $ 59 $ (218) * Other adjustments represent pension expenses other than pension servicing costs and multi-employer plan costs, significant litigation costs and benefits, and currency impacts of highly inflationary countries. For the three and six months ended September 30, 2023, other adjustments also include 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, 2024
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) 2024 2023 2024 2023 Net income (loss) on which basic and diluted earnings per share is calculated $ (43) $ (142) $ (32) $ (283) Number of shares on which basic and diluted earnings (loss) per share is calculated 231.6 229.1 231.1 228.5 Basic earnings (loss) per share $ (0.19) $ (0.62) $ (0.14) $ (1.24) Diluted earnings (loss) per share (0.19) (0.62) (0.14) (1.24)
Schedule of anti dilutive securities were not included in the computation of diluted net loss per share	Three Months Ended September 30, Six Months Ended September 30, (In millions) 2024 2023 2024 2023 Nonvested restricted stock units 7.4 9.0 7.8 8.9 Nonvested performance-conditioned stock units 5.4 2.8 5.0 2.2 Nonvested market-conditioned stock units 3.2 2.7 3.1 2.5 Stock options issued and outstanding 3.4 3.6 3.5 3.7 Total 19.4 18.2 19.3 17.3

FINANCIAL ASSETS AND LIABILIT_2

FINANCIAL ASSETS AND LIABILITIES (Tables)	6 Months Ended
FINANCIAL ASSETS AND LIABILITIES (Tables)	Sep. 30, 2024
FINANCIAL ASSETS AND LIABILITIES
Financial assets and financial liabilities measured at fair value on a recurring basis	Fair Value Hierarchy At September 30, 2024 At March 31, 2024 (Dollars in millions) Level Assets Liabilities Fair Value Assets Liabilities Fair Value Derivatives designated as hedging instruments: Foreign exchange contracts 2 $ 1 $ 23 $ (22) $ 2 $ 1 $ 1 Cross-currency swap contracts 2 10 26 (16) 1 11 (9) Derivatives not designated as hedging instruments: Foreign exchange contracts 2 9 23 (14) 2 6 (4) Total $ 19 $ 71 $ (52) $ 5 $ 18 $ (13)
Summary of notional amounts of outstanding derivatives	At September 30, 2024 At March 31, 2024 (Dollars in millions) Foreign Exchange Contracts Cross-currency Swap Contracts Total Notional Amount Foreign Exchange Contracts Cross-currency Swap Contracts Total Notional Amount Derivatives designated as hedging instruments Cash flow hedges $ 363 $ — $ 363 $ 281 $ — $ 281 Net investment hedges 688 500 1,188 — 500 500 Derivatives not designated as hedging instruments $ 2,553 $ — $ 2,553 $ 1,624 $ — $ 1,624
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: 2024 2023 Line Item 2024 2023 Derivative instruments in cash flow hedges: Foreign exchange contracts $ (14) $ 11 Cost of services $ — $ 4 Derivative instruments in net investment hedges: Cross-currency swaps (16) — Interest expense 2 — Foreign exchange contracts (21) — Interest expense 3 — Total $ (51) $ 11 $ 6 $ 4 Unrealized Gain (Loss) Consolidated Gain (Loss) (Dollars in millions) Recognized in OCI Income Statement Reclassified from AOCI Six months ended September 30: 2024 2023 Line Item 2024 2023 Derivative instruments in cash flow hedges: Foreign exchange contracts $ (15) $ 26 Cost of services $ — $ 5 Derivative instruments in net investment hedges: Cross-currency swaps — — Interest expense 6 — Foreign exchange contracts (19) — Interest expense 3 — Total $ (34) $ 26 $ 10 $ 5 * For the three and six months ended September 30, 2024, the Company recognized a gain of $ 5 million and $ 9 million, respectively, in interest expense on components excluded from the assessment of the hedge effectiveness for net investment hedges. There were no net investment hedges in the three and six months ended September 30, 2023.
Effect of derivative instruments in the Consolidated Income Statement- Not designated	Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Three months ended September 30: Line Item 2024 2023 Foreign exchange contracts Other expense $ 31 $ (36) Total $ 31 $ (36) Consolidated Gain (Loss) (Dollars in millions) Income Statement Recognized on Derivatives Six months ended September 30: Line Item 2024 2023 Foreign exchange contracts Other expense $ 3 $ (53) Total $ 3 $ (53)

INTANGIBLE ASSETS INCLUDING G_2

INTANGIBLE ASSETS INCLUDING GOODWILL (Tables)	6 Months Ended
INTANGIBLE ASSETS INCLUDING GOODWILL (Tables)	Sep. 30, 2024
INTANGIBLE ASSETS INCLUDING GOODWILL
Intangible asset balances by major asset class	At September 30, 2024 At March 31, 2024 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Dollars in millions) Amount Amortization Amount Amount Amortization Amount Capitalized software $ 187 $ (53) $ 133 $ 172 $ (48) $ 125 Customer relationships* 125 (51) 74 152 (96) 56 Completed technology 13 (1) 12 — — — Patents and trademarks* 16 (8) 7 14 (6) 8 Total $ 340 $ (114) $ 227 $ 339 $ (150) $ 188 * Amounts include effects from foreign currency translation.
Intangible assets, future amortization expense	Capitalized Customer Completed Patents and (Dollars in millions) Software Relationships Technology Trademarks Total Year ending March 31: 2025 (remaining six months) $ 21 $ 11 $ 1 $ 2 $ 35 2026 41 22 3 3 69 2027 41 19 3 3 66 2028 17 5 3 — 25 2029 11 5 3 — 19 Thereafter 2 11 — — 13
Changes in goodwill balances by reportable segment	Foreign Currency (Dollars in millions) Balance at Acquisitions and Translation Balance at Segment March 31, 2024 (Divestitures)* Adjustments Reallocation September 30, 2024 United States $ — $ 10 $ — $ — $ 10 Japan 488 — 3 — 491 Principal Markets 141 (28) — (23) 90 Strategic Markets 176 — — 23 198 Total $ 805 $ (18) $ 2 $ — $ 790 * These amounts represent the goodwill acquired as part of the purchase of Skytap, in addition to the allocation of goodwill to assets held for sale related to the divestiture of the SIS business using the relative fair value approach. See Note 8 – Acquisitions and Divestitures for additional details.

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
BORROWINGS (Tables)	Sep. 30, 2024
BORROWINGS
Summary of components of debt	September 30, March 31, (Dollars in millions) Interest Rate Maturity 2024 2024 Commercial loan agreement 3.00% July 2026 $ 54 $ 68 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 2034 6.35% * February 2034 500 500 Unsecured senior notes due 2041 4.10% October 2041 550 550 Finance lease obligations 5.67% ** 2024-2030 306 291 $ 3,260 $ 3,259 Less: Unamortized discount 4 5 Less: Unamortized debt issuance costs 15 16 Less: Current portion of long-term debt 135 126 Total long-term debt $ 3,106 $ 3,112 * Including the cross-currency swaps that the Company entered into subsequent to the issuance of the unsecured senior notes due 2034, the effective interest rate on such notes was approximately 3.84% at the time of issuance. For more information, see Note 7 – Financial Assets and Liabilities. ** Weighted-average discount rate.
Schedule of contractual obligations of long-term debt outstanding	(Dollars in millions)* Principal Year ending March 31: 2025 (remaining six months) $ 14 2026 29 2027 710 2028 — 2029 500 Thereafter 1,700 Total $ 2,954 * Contractual obligations approximate scheduled repayments.

EQUITY (Tables)

EQUITY (Tables)	6 Months Ended
EQUITY (Tables)	Sep. 30, 2024
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, 2024: Foreign currency translation adjustments: Foreign currency translation adjustments $ 151 $ — $ 151 Unrealized gains (losses) on net investment hedges (42) — (42) Total foreign currency translation adjustments $ 109 $ — $ 109 Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ (14) $ 4 $ (9) Reclassification of (gains) losses to net income — — — Total unrealized gains (losses) on cash flow hedges $ (14) $ 4 $ (10) Retirement-related benefit plans – amortization of net (gains) losses* $ 4 $ (1) $ 3 Other comprehensive income $ 99 $ 3 $ 102 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 net (gains) losses* $ 1 $ — $ 1 Other comprehensive income (loss) $ (101) $ (3) $ (105) * These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 13 – Retirement-Related Benefits for additional information. Pretax Tax (Expense) Net-of-Tax (Dollars in millions) Amount Benefit Amount For the six months ended September 30, 2024: Foreign currency translation adjustments: Foreign currency translation adjustments $ 88 $ — $ 88 Unrealized gains (losses) on net investment hedges (28) — (28) Total foreign currency translation adjustments $ 60 $ — $ 60 Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) arising during the period $ (15) $ 4 $ (11) Reclassification of (gains) losses to net income — — — Total unrealized gains (losses) on cash flow hedges $ (15) $ 4 $ (12) Retirement-related benefit plans – amortization of net (gains) losses* $ 8 $ (2) $ 6 Other comprehensive income $ 53 $ 1 $ 54 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 net (gains) losses* $ 4 $ (1) $ 3 Other comprehensive income (loss) $ (100) $ (5) $ (104) * These AOCI components are included in the computation of net periodic benefit cost. Refer to Note 13 – 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, 2024 $ (1) $ (1,016) $ (175) $ (1,192) Other comprehensive income (loss) (10) 109 3 102 September 30, 2024 $ (11) $ (907) $ (172) $ (1,090) 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) 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, 2024 $ — $ (967) $ (178) $ (1,145) Other comprehensive income (loss) (12) 60 6 54 September 30, 2024 $ (11) $ (907) $ (172) $ (1,090) April 1, 2023 $ — $ (921) $ (142) $ (1,062) Other comprehensive income (loss) 17 (125) 3 (104) September 30, 2023 $ 17 $ (1,045) $ (139) $ (1,167) * Foreign currency translation adjustments are presented gross .

RETIREMENT-RELATED BENEFITS (Ta

RETIREMENT-RELATED BENEFITS (Tables)	6 Months Ended
RETIREMENT-RELATED BENEFITS (Tables)	Sep. 30, 2024
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) 2024 2023 2024 2023 Service cost $ 9 $ 9 $ 18 $ 19 Interest cost* 13 15 27 29 Expected return on plan assets* (15) (16) (30) (30) Amortization of prior service costs (credits)* — — 1 1 Curtailments and settlements* 1 — 1 — Recognized actuarial losses (gains)* 4 1 8 3 Net periodic pension cost $ 12 $ 9 $ 24 $ 21 * These components of net periodic pension cost are included in other expense in the Consolidated Income Statement.

WORKFORCE REBALANCING AND SIT_2

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES (Tables)	6 Months Ended
	Sep. 30, 2024
WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES.
Schedule of segment breakout of charges	Three Months Ended Six Months Ended Costs Incurred to Date September 30, September 30, Fiscal 2025 Fiscal 2024 (Dollars in millions) 2024 2023 2024 2023 Program Program United States $ 21 $ 3 $ 41 $ 15 $ 42 $ 41 Japan 2 — 3 2 3 4 Principal Markets (1) 9 18 14 38 12 141 Strategic Markets (1) 17 17 36 49 39 109 Sub-total $ 49 $ 39 $ 94 $ 104 $ 97 $ 294 Corporate and other — — — 3 — 13 Total charges $ 49 $ 39 $ 94 $ 107 $ 97 $ 307 (1) Kyndryl’s operations in Australia/New Zealand transitioned from Principal Markets to Strategic Markets in the quarter ended June 30, 2024; historical segment information has been recast to reflect this change.
Summary of classification of workforce rebalancing and site-rationalization activities	Three Months Ended Six Months Ended Costs Incurred to Date September 30, September 30, Fiscal 2025 Fiscal 2024 (Dollars in millions) 2024 2023 2024 2023 Program Program Cost of services $ 10 $ (3) $ 18 $ (3) $ 18 $ 94 Selling, general and administrative expenses — 3 2 13 2 25 Workforce rebalancing charges 39 39 74 97 77 187 Total charges $ 49 $ 39 $ 94 $ 107 $ 97 $ 307
Schedule of components of and changes in workforce rebalancing and site-rationalization charges	Liabilities Workforce Related to Rebalancing Ceasing to Use (Dollars in millions) Liabilities* Leased Assets Total Fiscal 2024 Program Balance at March 31, 2024 $ 28 $ — $ 28 Charges — — — Cash payments (25) — (25) Non-cash adjustments (3) — (3) Balance at September 30, 2024 $ — $ — $ — Fiscal 2025 Program Balance at March 31, 2024 $ — $ — $ — Charges 78 20 97 Cash payments (54) — (54) Non-cash adjustments — (20) (20) Balance at September 30, 2024 $ 23 $ — $ 23 * The Fiscal 2024 Program excludes workforce rebalancing liabilities inherited from our former Parent of $29 million as of March 31, 2024. Current-year movement excludes cash payments of $ 7 million and ending balance of $ 22 million related to actions initiated by our former Parent. Workforce rebalancing liabilities are recorded within other liabilities in the Consolidated Balance Sheet.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES - Description of Business (Details)	Sep. 30, 2024 USD ($)
Minimum
Number of countries	100

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Change in Accounting Estimate (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Apr. 01, 2024	Mar. 31, 2024
Property and Equipment
Depreciation	$ 150	$ 220	$ 276	$ 431
Cumulative Effect, Period of Adoption, Adjustment
Property and Equipment
Depreciation	$ (50)		$ (110)
Per share impact of change in accounting estimate, basic	$ 0.22		$ 0.49
Per share impact of change in accounting estimate, diluted	$ 0.22		$ 0.49
Information technology equipment
Property and Equipment
Estimated useful lives (in years)					6 years	5 years

REVENUE RECOGNITION - Remaining

REVENUE RECOGNITION - Remaining Performance Obligations (Details) $ in Billions	Sep. 30, 2024 USD ($)
REVENUE RECOGNITION
Remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied	$ 34.4

REVENUE RECOGNITION - Remaini_2

REVENUE RECOGNITION - Remaining Performance Obligations, Expected Timing of Satisfaction (Details)	Sep. 30, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	57%
Duration of expected recognition period for remaining performance obligation	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	37%
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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
REVENUE RECOGNITION
Impact to revenue from performance obligations satisfied (or partially satisfied) in previous periods	$ 13	$ 2	$ 20	$ 15

REVENUE RECOGNITION - Reconcili

REVENUE RECOGNITION - Reconciliation of Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Reconciliation of Contract Balances
Accounts receivable (net of allowances for credit losses of $17 at September 30, 2024 and $22 at March 31, 2024) *	$ 1,441		$ 1,441		$ 1,599
Contract assets	50		50		30
Deferred income (current)	856		856		825
Deferred income (noncurrent)	344		344		314
Accounts receivable, allowances	17		17		22
Unbilled receivable	384		384		$ 377
Revenue recognized that was included in deferred income at the beginning of the period	$ 335	$ 176	$ 524	$ 360

REVENUE RECOGNITION - Allowance

REVENUE RECOGNITION - Allowance for Credit Losses (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Roll forward of accounts receivable - allowance for credit losses
Beginning balance	$ 22	$ 32
Additions (releases)	(6)
Write-offs		(3)
Write-offs	1
Other		(1)
Ending balance	$ 17	$ 28

REVENUE RECOGNITION - Major Cli

REVENUE RECOGNITION - Major Clients (Details) - client	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023
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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Deferred Contract Costs
Deferred costs	$ 2,045		$ 2,045		$ 2,000
Deferred costs, current	994		994		1,081
Deferred costs, noncurrent	1,052		1,052		920
Total deferred costs amortized	435	$ 449	852	$ 912
Amortization of deferred costs	98		205	281
Deferred transition costs
Deferred Contract Costs
Deferred costs	734		734		753
Total deferred costs amortized	75	88	147	173
Prepaid software costs
Deferred Contract Costs
Deferred costs	810		810		770
Total deferred costs amortized	262	218	500	459
Capitalized contract costs
Deferred Contract Costs
Total deferred costs amortized		$ 143		$ 281
Capitalized costs to fulfill contracts
Deferred Contract Costs
Deferred costs	220		220		212
Capitalized costs to obtain contracts
Deferred Contract Costs
Deferred costs	$ 282		$ 282		$ 265
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, 2024 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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Information
Revenues	$ 3,774	$ 4,073	$ 7,513	$ 8,266
Segment adjusted EBITDA	579	596	1,156	1,232
United States
Segment Information
Revenues	960	1,108	1,946	2,272
Segment adjusted EBITDA	159	176	292	412
Japan
Segment Information
Revenues	604	569	1,174	1,180
Segment adjusted EBITDA	94	84	177	184
Principal Markets
Segment Information
Revenues	1,318	1,376	2,633	2,768
Segment adjusted EBITDA	187	169	428	320
Strategic Markets
Segment Information
Revenues	892	1,019	1,761	2,046
Segment adjusted EBITDA	$ 138	$ 166	$ 258	$ 315

SEGMENTS - Reconciliation of se

SEGMENTS - Reconciliation of segment adjusted EBITDA to consolidated pretax income (loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
SEGMENTS
Segment adjusted EBITDA	$ 579	$ 596	$ 1,156	$ 1,232
Workforce rebalancing charges incurred prior to March 31, 2024		(39)		(97)
Charges related to ceasing to use leased / fixed assets and lease terminations	(10)		(20)	(10)
Transaction-related costs		(48)	(21)	(89)
Stock-based compensation expense	(25)	(25)	(49)	(48)
Interest expense	(25)	(31)	(52)	(61)
Depreciation of property, equipment and capitalized software	(150)	(220)	(276)	(431)
Amortization expense	(347)	(313)	(664)	(646)
Corporate expense not allocated to the segments	(22)	(21)	(42)	(45)
Other adjustments	(5)	(7)	27	(23)
Income (loss) before income taxes	$ (5)	$ (109)	$ 59	$ (218)

TAXES (Details)

TAXES (Details)	3 Months Ended		6 Months Ended
TAXES (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
TAXES.
Effective tax rate (as a percent)	(703.70%)	(30.30%)	154.20%	(29.80%)

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
NET LOSS PER SHARE
Stock dividends declared	$ 0	$ 0	$ 0	$ 0
Net income (loss) on which basic and diluted earnings per share is calculated	$ (43)	$ (142)	$ (32)	$ (283)
Number of shares on which basic earnings (loss) per share is calculated	231.6	229.1	231.1	228.5
Number of shares on which diluted earnings (loss) per share is calculated	231.6	229.1	231.1	228.5
Basic earnings (loss) per share	$ (0.19)	$ (0.62)	$ (0.14)	$ (1.24)
Diluted earnings (loss) per share	$ (0.19)	$ (0.62)	$ (0.14)	$ (1.24)

NET LOSS PER SHARE - Anti dilut

NET LOSS PER SHARE - Anti dilutive securities (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	19.4	18.2	19.3	17.3
Restricted stock units
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	7.4	9	7.8	8.9
Performance-conditioned stock units
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	5.4	2.8	5	2.2
Market-conditioned stock units
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	3.2	2.7	3.1	2.5
Employee Stock Option
Securities not included in the computation of diluted earnings (loss) per share
Anti dilutive securities	3.4	3.6	3.5	3.7

FINANCIAL ASSETS AND LIABILIT_3

FINANCIAL ASSETS AND LIABILITIES - Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2024	Mar. 31, 2024
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]	Other Liabilities, Noncurrent, Accrued Liabilities and Other Liabilities, Current	Other Liabilities, Noncurrent, Accrued Liabilities and Other Liabilities, Current
Foreign exchange contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	$ 19	$ 5
Derivative liabilities	71	18
Fair value, net	(52)	(13)
Designated as hedging instruments \| Foreign exchange contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	1	2
Derivative liabilities	23	1
Fair value, net	(22)	1
Designated as hedging instruments \| Cross-currency swap contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	10	1
Derivative liabilities	26	11
Fair value, net	(16)	(9)
Not designated as hedging instruments - economic hedges \| Foreign exchange contracts \| Level 2
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	9	2
Derivative liabilities	23	6
Fair value, net	$ (14)	$ (4)

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Financial assets and financial liabilities:
Impairments of non-financial assets	$ 0	$ 0	$ 0	$ 0
Derivative assets impacted by netting arrangements	0		0		$ 0
Long-term debt	2,900		2,900		2,900
Long-term debt, fair value	2,700		2,700		2,600
Gross proceeds from third parties	1,100	913	1,900	2,100
Fees associated with the transfers of receivables	10	$ 12	20	$ 28
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	$ 701		$ 701		$ 828

FINANCIAL ASSETS AND LIABILIT_5

FINANCIAL ASSETS AND LIABILITIES - Derivative Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2024	Mar. 31, 2024
Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 363	$ 281
Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	1,188	500
Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	2,553	1,624
Foreign exchange contracts \| Derivative instruments in cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	363	281
Foreign exchange contracts \| Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	688
Foreign exchange contracts \| Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	2,553	1,624
Cross-currency swap contracts \| Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 500	$ 500

FINANCIAL ASSETS AND LIABILIT_6

FINANCIAL ASSETS AND LIABILITIES - Foreign Exchange Risk (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
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
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Amounts Excluded from Effectiveness Testing	$ 0	$ 0	$ 0	$ 0
Derivative instruments in cash flow hedges \| Designated as hedging instruments \| Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Net gains from derivatives					$ 2
Net loss from derivatives			14
Deferred net losses on derivatives reclassified to net income			$ (14)
Derivative instruments in cash flow hedges \| Designated as hedging instruments \| Foreign exchange forward contracts
Derivatives, Fair Value [Line Items]
Maximum length of time hedged			1 year
Weighted average remaining maturity			6 months		6 months
Net investment hedges \| Designated as hedging instruments
Derivatives, Fair Value [Line Items]
Maximum length of time hedged			9 years
Weighted average remaining maturity			5 years		10 years
Net investment hedges \| Designated as hedging instruments \| Cross-currency swap contracts
Derivatives, Fair Value [Line Items]
Net loss from derivatives			$ 39		$ 11

FINANCIAL ASSETS AND LIABILIT_7

FINANCIAL ASSETS AND LIABILITIES - Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
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, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	(51)	11	(34)	26
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	6	4	10	5
Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (loss) from derivatives	31	(36)	3	(53)
Foreign exchange contracts \| 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	(14)	11	(15)	26
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI		4		5
Foreign exchange contracts \| Designated as hedging instruments \| Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	(21)		(19)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	3		3
Foreign exchange contracts \| Not designated as hedging instruments - economic hedges
Derivative Instruments, Gain (Loss) [Line Items]
Net gains (loss) from derivatives	$ 31	$ (36)	$ 3	$ (53)
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
Cross-currency swap contracts \| Designated as hedging instruments \| Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Recognized in OCI	$ (16)
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	2		$ 6
Interest expense \| Designated as hedging instruments \| Net investment hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Recognized in Earnings and Other Comprehensive Income - Reclassified from AOCI	$ 5	$ 0	$ 9	$ 0

ACQUISITIONS AND DIVESTITURES (

ACQUISITIONS AND DIVESTITURES (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
ACQUISITIONS
Cash consideration				$ 46
Acquisition costs			$ 48	21	$ 89
Goodwill				$ 790		$ 805
Completed technology
ACQUISITIONS
Useful life	5 years
Customer relationships
ACQUISITIONS
Useful life	8 years
Skytap, Inc
ACQUISITIONS
Cash consideration	$ 46
Cash acquired in acquisition	4
Acquisition costs		$ 2
Intangible assets	43
Goodwill	10
Assets transferred	27
Cash and cash equivalents acquired	4
Liabilities assumed	29
Skytap, Inc \| Completed technology
ACQUISITIONS
Intangible assets	13
Skytap, Inc \| Customer relationships
ACQUISITIONS
Intangible assets	$ 30

ACQUISITIONS AND DIVESTITURES -

ACQUISITIONS AND DIVESTITURES - Disposal of the SIS Business (Details) $ in Millions	Jun. 30, 2024 USD ($)
Disposal group, held-for-sale, not discontinued operations \| Securities Industry Services
ACQUISITIONS
Definitive agreement	$ 185

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Apr. 30, 2024	Mar. 31, 2024
Intangible asset balances by major asset class
Gross Carrying Amount	$ 340		$ 340			$ 339
Accumulated Amortization	(114)		(114)			(150)
Net Carrying Amount	227		227			188
Intangible asset amortization expense	17	$ 16	36	$ 27
Net carrying amount of intangible assets increased			38
Capitalized software
Intangible asset balances by major asset class
Gross Carrying Amount	187		187			172
Accumulated Amortization	(53)		(53)			(48)
Net Carrying Amount	133		133			125
Intangible asset amortization expense	7		19
Retirement of fully amortized intangible assets	75		75
Customer relationships
Intangible asset balances by major asset class
Gross Carrying Amount	125		125			152
Accumulated Amortization	(51)		(51)			(96)
Net Carrying Amount	74		74			56
Useful life					8 years
Completed technology
Intangible asset balances by major asset class
Gross Carrying Amount	13		13
Accumulated Amortization	(1)		(1)
Net Carrying Amount	12		12
Useful life					5 years
Patents and trademarks
Intangible asset balances by major asset class
Gross Carrying Amount	16		16			14
Accumulated Amortization	(8)		(8)			(6)
Net Carrying Amount	$ 7		$ 7			$ 8

INTANGIBLE ASSETS INCLUDING G_4

INTANGIBLE ASSETS INCLUDING GOODWILL - Future Amortization Expense (Details) $ in Millions	Sep. 30, 2024 USD ($)
Future amortization expense, by year
2025 (remaining six months)	$ 35
2026	69
2027	66
2028	25
2029	19
Thereafter	13
Capitalized software
Future amortization expense, by year
2025 (remaining six months)	21
2026	41
2027	41
2028	17
2029	11
Thereafter	2
Customer relationships
Future amortization expense, by year
2025 (remaining six months)	11
2026	22
2027	19
2028	5
2029	5
Thereafter	11
Completed technology
Future amortization expense, by year
2025 (remaining six months)	1
2026	3
2027	3
2028	3
2029	3
Patents and trademarks
Future amortization expense, by year
2025 (remaining six months)	2
2026	3
2027	$ 3

INTANGIBLE ASSETS INCLUDING G_5

INTANGIBLE ASSETS INCLUDING GOODWILL - Goodwill by Segment (Details) - USD ($) $ in Millions	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Changes in Goodwill Balances
Beginning Balance	$ 805
Acquisitions and (Divestitures)	(18)
Foreign Currency Translation Adjustments	2
Impairment	0	$ 0
Ending Balance	790
Japan
Changes in Goodwill Balances
Beginning Balance	488
Foreign Currency Translation Adjustments	3
Ending Balance	491
United States
Changes in Goodwill Balances
Acquisitions and (Divestitures)	10
Ending Balance	10
Principal Markets
Changes in Goodwill Balances
Beginning Balance	141
Acquisitions and (Divestitures)	(28)
Additions and Other Adjustments	(23)
Ending Balance	90
Strategic Markets
Changes in Goodwill Balances
Beginning Balance	176
Additions and Other Adjustments	23
Ending Balance	$ 198

BORROWINGS - Debt (Details)

BORROWINGS - Debt (Details) - USD ($) $ in Millions	Sep. 30, 2024	Mar. 31, 2024
BORROWINGS
Financing lease and other obligations	$ 306	$ 291
Total	3,260	3,259
Less: Unamortized discount	4	5
Less: Unamortized debt issuance costs	15	16
Less: Current portion of debt	135	126
Total	$ 3,106	3,112
Finance lease obligations, interest rate (as a percent)	5.67%
Unsecured senior notes due 2034, including cross-currency swaps
BORROWINGS
Debt instrument, weighted-average interest rate (as a percent)	3.84%
Commercial loan agreement
BORROWINGS
Long-term debt	$ 54	68
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 2034
BORROWINGS
Long-term debt	$ 500	500
Debt instrument, weighted-average interest rate (as a percent)	6.35%
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, 2024 USD ($)
Pre-swap annual contractual obligations of long-term debt outstanding
2025 (remaining six months)	$ 14
2026	29
2027	710
2029	500
Thereafter	1,700
Total	$ 2,954

BORROWINGS - Additional Informa

BORROWINGS - Additional Information (Details) $ in Millions	Sep. 30, 2024 USD ($)
Revolving Credit Agreement
BORROWINGS
Borrowing credit facility	$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - BMC v. IBM - IBM $ in Millions	1 Months Ended
	May 31, 2022 USD ($)
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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss)	$ 102	$ (105)	$ 54	$ (104)
Accumulated Other Comprehensive Income (Loss)
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss), before tax amount	99	(101)	53	(100)
Other comprehensive income (loss), tax (expense) benefit	3	(3)	1	(5)
Other comprehensive income (loss)	102	(105)	54	(104)
Foreign Currency Translation Adjustments
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss), before tax amount	109	(109)	60	(125)
Other comprehensive income (loss)	109	(109)	60	(125)
Foreign Currency Translation Adjustments Excluding Net Investment Hedges
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Unrealized gains (losses) arising during the period, before tax amount	151		88
Unrealized gains (losses) arising during the period, net of tax amount	151		88
Unrealized Gains (Losses) on Net Investment Hedges
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Unrealized gains (losses) arising during the period, before tax amount	(42)		(28)
Unrealized gains (losses) arising during the period, net of tax amount	(42)		(28)
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	(14)	11	(15)	26
Unrealized gains (losses) arising during the period, tax (expense) benefit	4	(4)	4	(5)
Unrealized gains (losses) arising during the period, net of tax amount	(9)	7	(11)	21
Reclassification/amortization, before tax amount		(4)		(5)
Reclassification/amortization, tax (expense) benefit		1		1
Reclassification/amortization, net of tax amount		(3)		(4)
Other comprehensive income (loss), before tax amount	(14)	7	(15)	21
Other comprehensive income (loss), tax (expense) benefit	4	(3)	4	(4)
Other comprehensive income (loss)	(10)	4	(12)	17
Net Change Retirement-Related Benefit Plans
Reclassifications and Taxes Related to Items of Other Comprehensive Income (Loss)
Other comprehensive income (loss), before tax amount	(4)	1	8	4
Other comprehensive income (loss), tax (expense) benefit	(1)		(2)	(1)
Other comprehensive income (loss)	$ 3	$ 1	$ 6	$ 3

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	$ 1,101	$ 1,338	$ 1,122	$ 1,462
Other comprehensive income (loss)	102	(105)	54	(104)
Balance at the end of the period	1,172	1,113	1,172	1,113
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(1,192)	(1,062)	(1,145)	(1,062)
Other comprehensive income (loss)	102	(105)	54	(104)
Balance at the end of the period	(1,090)	(1,167)	(1,090)	(1,167)
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(1)	13
Other comprehensive income (loss)	(10)	4	(12)	17
Balance at the end of the period	(11)	17	(11)	17
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(1,016)	(936)	(967)	(921)
Other comprehensive income (loss)	109	(109)	60	(125)
Balance at the end of the period	(907)	(1,045)	(907)	(1,045)
Net Change Retirement-Related Benefit Plans
Accumulated Other Comprehensive Income (Loss) (net of tax)
Balance at the beginning of the period	(175)	(140)	(178)	(142)
Other comprehensive income (loss)	3	1	6	3
Balance at the end of the period	$ (172)	$ (139)	$ (172)	$ (139)

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cost/(Income) of Pension Plans
Service cost	$ 9	$ 9	$ 18	$ 19
Interest cost	$ 13	$ 15	$ 27	$ 29
Interest cost - income statement location	Other expense	Other expense	Other expense	Other expense
Expected return on plan assets	$ (15)	$ (16)	$ (30)	$ (30)
Expected return on plan assets - income statement location	Other expense	Other expense	Other expense	Other expense
Amortization of prior service costs (credits)			$ 1	$ 1
Amortization of prior service costs (credits) - income statement location	Other expense	Other expense	Other expense	Other expense
Curtailments and settlements	$ 1		$ 1
Curtailments and settlements - income statement location	Other expense	Other expense	Other expense	Other expense
Recognized actuarial losses (gains)	$ 4	$ 1	$ 8	$ 3
Recognized actuarial losses (gains) - income statement location	Other expense	Other expense	Other expense	Other expense
Total net periodic pension cost	$ 12	$ 9	$ 24	$ 21

WORKFORCE REBALANCING AND SIT_3

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		30 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Mar. 31, 2024
RESTRUCTURING
Charges	$ 49	$ 39	$ 94	$ 107
Operating Segments
RESTRUCTURING
Charges	49	39	94	104
Corporate, Non-Segment
RESTRUCTURING
Charges				3
Fiscal 2025 Program
RESTRUCTURING
Charges			97
Restructuring and related expected costs	140		140		$ 140
Fiscal 2025 Program \| Workforce Rebalancing Charges
RESTRUCTURING
Charges			78
Restructuring and related expected costs	100		100		100
Fiscal 2025 Program \| Liabilities Related to Ceasing to Use Leased Assets
RESTRUCTURING
Charges			20
Restructuring and related expected costs	40		40		40
Fiscal 2025 Program \| Operating Segments
RESTRUCTURING
Charges			97
Fiscal 2024 Program
RESTRUCTURING
Charges					307
Restructuring and related expected costs						$ 310
Fiscal 2024 Program \| Workforce Rebalancing Charges
RESTRUCTURING
Restructuring and related expected costs						190
Fiscal 2024 Program \| Liabilities Related to Ceasing to Use Leased Assets
RESTRUCTURING
Restructuring and related expected costs						$ 120
Fiscal 2024 Program \| Operating Segments
RESTRUCTURING
Charges					294
Fiscal 2024 Program \| Corporate, Non-Segment
RESTRUCTURING
Charges					13
United States. \| Operating Segments
RESTRUCTURING
Charges	21	3	41	15
United States. \| Fiscal 2025 Program \| Operating Segments
RESTRUCTURING
Charges			42
United States. \| Fiscal 2024 Program \| Operating Segments
RESTRUCTURING
Charges					41
Japan. \| Operating Segments
RESTRUCTURING
Charges	2		3	2
Japan. \| Fiscal 2025 Program \| Operating Segments
RESTRUCTURING
Charges			3
Japan. \| Fiscal 2024 Program \| Operating Segments
RESTRUCTURING
Charges					4
Principal Markets \| Operating Segments
RESTRUCTURING
Charges	9	18	14	38
Principal Markets \| Fiscal 2025 Program \| Operating Segments
RESTRUCTURING
Charges			12
Principal Markets \| Fiscal 2024 Program \| Operating Segments
RESTRUCTURING
Charges					141
Strategic Markets \| Operating Segments
RESTRUCTURING
Charges	$ 17	$ 17	36	$ 49
Strategic Markets \| Fiscal 2025 Program \| Operating Segments
RESTRUCTURING
Charges			$ 39
Strategic Markets \| Fiscal 2024 Program \| Operating Segments
RESTRUCTURING
Charges					$ 109

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		30 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024
RESTRUCTURING
Charges	$ 49	$ 39	$ 94	$ 107
Fiscal 2025 Program
RESTRUCTURING
Charges			97
Fiscal 2024 Program
RESTRUCTURING
Charges					$ 307
Cost of service
RESTRUCTURING
Charges	10	(3)	18	(3)
Cost of service \| Fiscal 2025 Program
RESTRUCTURING
Charges			18
Cost of service \| Fiscal 2024 Program
RESTRUCTURING
Charges					94
Selling, general and administrative expense
RESTRUCTURING
Charges		3	2	13
Selling, general and administrative expense \| Fiscal 2025 Program
RESTRUCTURING
Charges			2
Selling, general and administrative expense \| Fiscal 2024 Program
RESTRUCTURING
Charges					25
Workforce rebalancing charges
RESTRUCTURING
Charges	$ 39	$ 39	74	$ 97
Workforce rebalancing charges \| Fiscal 2025 Program
RESTRUCTURING
Charges			$ 77
Workforce rebalancing charges \| Fiscal 2024 Program
RESTRUCTURING
Charges					$ 187

WORKFORCE REBALANCING AND SIT_5

WORKFORCE REBALANCING AND SITE-RATIONALIZATION CHARGES - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		30 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024
RESTRUCTURING
Charges	$ 49	$ 39	$ 94	$ 107
Fiscal 2025 Program
RESTRUCTURING
Charges			97
Cash payments			(54)
Non-cash adjustments			(20)
Balance at end of period	23		23		$ 23
Fiscal 2024 Program
RESTRUCTURING
Balance at beginning of period			28
Charges					307
Cash payments			(25)
Non-cash adjustments			(3)
Workforce Rebalancing Charges \| Fiscal 2025 Program
RESTRUCTURING
Charges			78
Cash payments			(54)
Balance at end of period	23		23		23
Workforce Rebalancing Charges \| Fiscal 2024 Program
RESTRUCTURING
Balance at beginning of period			28
Cash payments			(25)
Non-cash adjustments			(3)
Liabilities Related to Ceasing to Use Leased Assets \| Fiscal 2025 Program
RESTRUCTURING
Charges			20
Non-cash adjustments			(20)
Workforce Rebalancing Liabilities Inherited from Former Parent \| Fiscal 2024 Program
RESTRUCTURING
Balance at beginning of period			29
Cash payments			(7)
Balance at end of period	$ 22		$ 22		$ 22