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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. Segment results are based on the segment’s revenues and operating profit, where segment operating profit is defined as income from operations before unallocated costs. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as an allocation of certain shared services expenses. Certain corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, certain taxes included in operating expenses, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate amortization of intangible assets acquired through business combinations, goodwill and other asset impairment charges, stock-based compensation expenses, acquisition-related costs and certain other one-time charges and benefits. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments.
The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular customer relationship generally correlates with the customer’s geographic location, there is a high degree of similarity between customer locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular customer is assigned to a management team in another region and is usually based on the strength of the relationship between customer executives and particular members of EPAM’s senior management team. In such cases, the customer’s activity would be reported through the management team’s reportable segment.
On July 26, 2023, the Company completed the sale of its remaining holdings in Russia to a third party. As a result of this sale, the Company no longer has operations associated with this segment. See Note 2 “Impact of the Invasion of Ukraine” for more information.
Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows:
 For the Years Ended December 31,
 202320222021
Segment revenues:
North America$2,765,022 $2,898,554 $2,242,248 
Europe1,909,443 1,853,056 1,350,484 
Russia16,075 73,088 165,412 
Total revenues$4,690,540 $4,824,698 $3,758,144 
Segment operating profit/(loss):
North America$520,945 $589,412 $462,798 
Europe250,634 223,276 233,727 
Russia(5,866)(13,460)32,547 
Total segment operating profit$765,713 $799,228 $729,072 
Intersegment transactions were excluded from the above on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results.
There were no customers individually exceeding 10% of our total segment revenues for the years ended December 31, 2023, 2022 and 2021.
Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below:
For the Years Ended December 31,
202320222021
Total segment operating profit:$765,713 $799,228 $729,072 
Unallocated costs:
Stock-based compensation expense(147,730)(99,909)(111,655)
Amortization of purchased intangibles(22,717)(22,223)(17,646)
Other acquisition-related expenses(2,723)(1,537)(6,397)
Loss on sale of business(25,922)— — 
Other unallocated costs(65,382)(102,593)(51,058)
Income from operations501,239 572,966 542,316 
Interest and other income/(loss), net51,124 10,025 (1,727)
Foreign exchange loss(15,778)(75,733)(7,197)
Income before provision for income taxes$536,585 $507,258 $533,392 
Geographic Area Information
Long-lived assets include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Physical locations and values of the Company’s long-lived assets are presented below:
As of December 31, 2023As of December 31, 2022As of December 31, 2021
Ukraine$62,653 $70,183 $78,289 
Belarus49,875 57,311 75,422 
United States42,510 68,804 14,843 
Poland15,057 14,685 8,240 
India12,735 8,506 9,459 
Hungary6,683 8,552 5,339 
Russia— — 16,611 
Other 45,540 45,307 28,011 
Total$235,053 $273,348 $236,214 
See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the Company’s decisions to no longer serve customers in Russia, impairment of long-lived assets in Russia and the sale of its holdings in Russia.
The table below presents the Company’s revenues by customer location for the years ended December 31, 2023, 2022 and 2021:
For the Years Ended December 31,
202320222021
United States$2,633,730 $2,761,050 $2,125,301 
United Kingdom585,172 619,305 474,941 
Switzerland367,121 323,424 271,208 
Netherlands236,292 215,444 154,816 
Germany178,492 161,758 113,727 
Canada97,983 114,910 96,646 
Russia13,290 64,745 155,186 
Other locations578,460 564,062 366,319 
Revenues$4,690,540 $4,824,698 $3,758,144