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OTHER LIABILITIES
12 Months Ended
Mar. 31, 2026
OTHER LIABILITIES.  
OTHER LIABILITIES

NOTE 13. OTHER LIABILITIES

The following table provides the components of other liabilities at March 31, 2026 and 2025.

  ​ ​ ​

At March 31,

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

Workforce rebalancing (current)

$

13

$

29

Vendor software accruals (current)

551

129

Other current accruals*

339

296

Other accrued expenses and liabilities

$

903

$

454

Workforce rebalancing (noncurrent)

$

1

$

3

Deferred taxes

83

51

Income tax reserve

229

136

Vendor software accruals (noncurrent)

747

137

Other*

115

116

Other noncurrent liabilities

$

1,176

$

443

*      Balances of “Vendor software accruals (current)” at March 31, 2025 were included in “Other current accruals”. Balances of “Vendor software accruals (noncurrent)” at March 31, 2025 were included in “Other”.

In response to changing business needs, the Company has taken workforce rebalancing actions to increase productivity, enhance cost-competitiveness and rebalance skills. The workforce rebalancing liabilities at March 31, 2026 and 2025 include liabilities inherited from our former Parent plus new actions taken by Kyndryl during the fiscal year. Refer to Note 18 – Workforce Rebalancing and Site-Rationalization Charges for details.

Pursuant to the terms of the Separation, the Company may be required to reimburse our former Parent for certain tax refunds received and to indemnify our former Parent for certain tax liabilities, although substantially all known matters have been resolved. For more information, see Note 5 – Taxes.