OTHER LIABILITIES

12 Months Ended

Mar. 31, 2023

OTHER LIABILITIES.

OTHER LIABILITIES

NOTE 12. OTHER LIABILITIES

The following table provides the components of other liabilities at March 31, 2023, March 31, 2022 and December 31, 2021.

	At March 31,				At December 31,
(Dollars in millions)	2023		2022		2021
Workforce rebalancing (current)	$	75	$	22	$	82
Other current accruals		549		660		662
Other accrued expenses and liabilities	$	624	$	682	$	744
Workforce rebalancing (noncurrent)	$	21	$	35	$	51
Deferred taxes		98		86		135
Income tax reserve		85		55		44
Other		246		273		293
Other noncurrent liabilities	$	450	$	449	$	522

In response to changing business needs, the Company has taken workforce rebalancing actions to increase productivity, enhance cost-competitiveness and rebalance skills. The current and noncurrent workforce rebalancing liabilities at March 31, 2022 and December 31, 2021 were derived from actions taken by the former Parent related to terminated employees who are no longer working for the Company who were granted annual payments in certain countries. Depending on the individual country’s legal requirements, these required payments will continue until the former employee begins receiving pension benefits or dies. The workforce rebalancing liabilities at March 31, 2023 include liabilities inherited from our former Parent plus new actions taken by Kyndryl during the fiscal year. Refer to Note 19 – Workforce Rebalancing and Site-Rationalization Charges for details.

Pursuant to the Tax Matters Agreement with our former Parent, the Company will be required to reimburse our former Parent for certain tax refunds we receive and to indemnify our former Parent for certain tax payments. For more information, see Note 5 – Taxes.