REVENUE RECOGNITION (Tables)

3 Months Ended

Jun. 30, 2023

REVENUE RECOGNITION

Schedule of reconciliation of contract balances

	June 30,		March 31,
(Dollars in millions)	2023		2023
Accounts receivable (net of allowances for expected credit losses of $29 at June 30, 2023 and $32 at March 31, 2023) *	$	1,490	$	1,523
Contract assets **		31		30
Deferred income (current)		785		820
Deferred income (noncurrent)		334		362

* Included unbilled receivable balances of $410 million at June 30, 2023 and $384 million at March 31, 2023.

** 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 - trade allowance for credit losses

	Three Months Ended June 30,
(Dollars in millions)	2023		2022
Beginning balance	$	32	$	44
Additions (releases)		(1)		(2)
Write-offs		(3)		(1)
Other *		1		(7)
Ending balance	$	29	$	34

* Primarily represents currency translation adjustments.

Schedule of capitalized costs to acquire and fulfill customer contracts

	June 30,		March 31,
(Dollars in millions)	2023		2023
Deferred transition costs	$	828	$	856
Prepaid software costs		828		782
Capitalized costs to fulfill contracts		240		285
Capitalized costs to obtain contracts		301		313
Total deferred costs *	$	2,196	$	2,236

* Of the total deferred costs, $1,075 million was current and $1,122 million was noncurrent at June 30, 2023, and $1,070 million was current and $1,166 million was noncurrent at March 31, 2023.