REVENUE RECOGNITION (Tables)

9 Months Ended

Dec. 31, 2023

REVENUE RECOGNITION

Schedule of reconciliation of contract balances

	December 31,		March 31,
(Dollars in millions)	2023		2023
Accounts receivable (net of allowances for credit losses of $24 at December 31, 2023 and $32 at March 31, 2023) *	$	1,658	$	1,523
Contract assets **		31		30
Deferred income (current)		793		820
Deferred income (noncurrent)		326		362

* Including unbilled receivable balances of $329 million at December 31, 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

	Nine Months Ended December 31,
(Dollars in millions)	2023		2022
Beginning balance	$	32	$	44
Additions (releases)		2		5
Write-offs		(6)		(8)
Other *		(4)		(6)
Ending balance	$	24	$	34

* Primarily driven by currency effects.

Schedule of capitalized costs to acquire and fulfill customer contracts

	December 31,		March 31,
(Dollars in millions)	2023		2023
Deferred transition costs	$	781	$	856
Prepaid software costs		637		782
Capitalized costs to fulfill contracts		214		285
Capitalized costs to obtain contracts		279		313
Total deferred costs *	$	1,910	$	2,236

* Of the total deferred costs, $924 million was current and $987 million was noncurrent at December 31, 2023, and $1,070 million was current and $1,166 million was noncurrent at March 31, 2023.