SEGMENTS (Tables)

3 Months Ended

Jun. 30, 2025

Summary of results of segments

The following tables reflect the results of the Company’s segments:


		Three Months Ended June 30, 2025
		United						Principal			Strategic			Total
(Dollars in millions)		States			Japan			Markets			Markets			Segments
Revenue		$	911		$	578		$	1,356		$	898		$	3,743
Cost of service, excluding depreciation and amortization *			570			371			928			585			2,454
Selling, general and administrative expenses, excluding depreciation and amortization *			137			85			218			143			583
Other items†			7			7			12			7			34
Segment adjusted EBITDA		$	196		$	115		$	197		$	163		$	672

		Three Months Ended June 30, 2024
		United						Principal			Strategic			Total
(Dollars in millions)		States			Japan			Markets			Markets			Segments
Revenue		$	986		$	569		$	1,315		$	869		$	3,739
Cost of service, excluding depreciation and amortization *			658			399			852			590			2,500
Selling, general and administrative expenses, excluding depreciation and amortization *			182			86			220			144			631
Other items†			13			2			2			15			32
Segment adjusted EBITDA		$	133		$	83		$	241		$	120		$	577

* Cost of service, excluding depreciation and amortization and selling, general and administrative expenses, excluding depreciation and
amortization are both used in calculating segment adjusted EBITDA and exclude depreciation of property, equipment and capitalized software
and amortization of transition costs and prepaid software.

† Other items include workforce rebalancing charges and other expense.

Summary of reconciliation of adjusted EBITDA to consolidated pretax income (loss)


		Three Months Ended June 30,
(Dollars in millions)		2025			2024
Segment adjusted EBITDA		$	672		$	577
Charges related to ceasing to use leased/fixed assets and lease terminations			—			(9)
Transaction-related costs			—			(20)
Stock-based compensation expense			(24)			(24)
Interest expense			(19)			(28)
Depreciation of property, equipment and capitalized software			(191)			(127)
Amortization expense			(315)			(317)
Corporate expense not allocated to the segments			(26)			(21)
Other adjustments*			(5)			32
Pretax income (loss)		$	92		$	64

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