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: This reportable segment is comprised of Kyndryl’s operations in the United States.

Japan: This reportable segment is comprised of Kyndryl’s operations in Japan.

Principal Markets: This reportable segment represents the aggregation of our operations in Australia / New Zealand, Canada, France, Germany, India, Italy, Spain / Portugal, and the United Kingdom / Ireland.

Strategic Markets: This reportable segment is comprised of our operations in all other countries in which we operate.

The measure of segment operating performance used by Kyndryl’s CODM is adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) excluding net interest expense, 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 costs other than pension servicing costs and multi-employer plan costs, stock-based compensation expense, workforce rebalancing charges, impairment expense, significant litigation costs, and foreign 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 reconciles consolidated pretax income (loss) to segment adjusted EBITDA:

* Other adjustments represent pension expense other than pension servicing costs and multi-employer plan costs, significant litigation costs and currency impacts of highly inflationary countries.

Segment Assets and Other Items

The Company does not allocate assets to the above reportable segments for our CODM’s review.

Geographic Information

The following tables provide information for those countries that represent 10 percent or more of the specific category. Refer to Note 8 – Property and Equipment and Note 9 – Leases for more information on allocation methodologies.


			Three Months
	Year Ended		Ended
	March 31,		March 31,		Year Ended December 31,
(Dollars in millions)	2023		2022		2021		2020
Revenue*
United States	$	4,726	$	1,169	$	4,805	$	5,081
Japan		2,502		706		2,923		3,037
Other countries		9,797		2,556		10,930		11,235
Total revenue	$	17,026	$	4,431	$	18,657	$	19,352

*	Revenues are attributed to countries based on the location of the client and exclude certain allocations.


	At				At
	March 31,				December 31,
(Dollars in millions)	2023		2022		2021
Property and equipment, net
United States *	$	922	$	894	$	890
Other countries		1,857		1,940		2,033
Total property and equipment, net	$	2,779	$	2,834	$	2,923

Operating right-of-use assets, net
United States *	$	124	$	199	$	205
Japan		110		124		139
Belgium		149		167		176
Other countries		580		822		841
Total operating right-of-use assets, net	$	964	$	1,312	$	1,361

* Includes corporate and other.