REVENUE RECOGNITION (Tables)

12 Months Ended

Mar. 31, 2023

Schedule of reconciliation of contract balances


	At March 31,				December 31,
(Dollars in millions)	2023		2022		2021
Accounts receivable (net of allowances of $32 at March 31, 2023, $44 at March 31, 2022, and $44 at December 31, 2021) *	$	1,523	$	2,271	$	2,279
Contract assets **		30		41		62
Deferred income (current)		820		882		872
Deferred income (noncurrent)		362		452		475

*	Including unbilled receivable balances of $384 million at March 31, 2023, $473 million at March 31, 2022 and $454 million at December 31, 2021.

Contract assets represent services performed by the Company prior to billing the client, which give the Company the right to consideration that is typically subject to milestone completion or client acceptance. They are included within prepaid expenses and other current assets in the Consolidated Balance Sheet.

Schedule of notes and accounts receivable - trade allowance for credit losses


			Three Months
	Year Ended		Ended
	March 31,		March 31,		Year Ended December 31,
(Dollars in millions)	2023		2022		2021		2020
Beginning balance	$	44	$	44	$	91	$	82
Additions (releases)		6		6		(23)		25
Write-offs		(13)		(4)		(5)		(7)
Other *		(5)		(2)		(19)		(9)
Ending balance	$	32	$	44	$	44	$	91

* Primarily represents translation adjustments and reclassifications.

Schedule of capitalized costs to acquire and fulfill customer contracts


	At March 31,				December 31,
(Dollars in millions)	2023		2022		2021
Deferred transition costs	$	856	$	961	$	1,012
Prepaid software costs		782		806		658
Capitalized costs to fulfill contracts		285		302		235
Capitalized costs to obtain contracts		313		318		282
Total deferred costs *	$	2,236	$	2,387	$	2,185

* Of the total deferred costs, $1,070 million was current and $1,166 million was noncurrent at March 31, 2023, $1,143 million was current and $1,244 million was noncurrent at March 31, 2022, and $920 million was current and $1,265 million was noncurrent at December 31, 2021.