REVENUE RECOGNITION (Tables)

12 Months Ended

Mar. 31, 2026

REVENUE RECOGNITION

Schedule of reconciliation of contract balances


		At March 31,
(Dollars in millions)		2026			2025
Assets
Accounts receivable (net of allowances for credit losses of $7 at March 31, 2026 and $13 at March 31, 2025)⁽¹⁾		$	1,300		$	1,345
Long-term accounts receivable⁽²⁾			80			15
Sales-type leases receivable			156			—
Contract assets⁽³⁾			44			50
Total		$	1,580		$	1,410
Liabilities
Deferred income (current)		$	888		$	746
Deferred income (noncurrent)			390			341
Total		$	1,279		$	1,087

(1)	Including unbilled receivable balances of $431 million at March 31, 2026 and $425 million at March 31, 2025.

(2)	Long-term accounts receivable included unbilled receivable balances of $46 million and immaterial at March 31, 2026 and 2025, respectively, and is included within Other noncurrent assets in the Consolidated Balance Sheet.

(3)

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 allowance for expected credit losses


		Year Ended March 31,
(Dollars in millions)		2026			2025			2024
Beginning balance		$	13		$	22		$	32
Additions (releases)			6			(7)			4
Write-offs			(13)			(1)			(4)
Other*			1			(1)			(9)
Ending balance		$	7		$	13		$	22

* Primarily represents translation adjustments.

Schedule of capitalized costs to acquire and fulfill customer contracts


		At March 31,
(Dollars in millions)		2026			2025
Deferred transition costs		$	761		$	697
Prepaid software costs*			1,809			876
Capitalized costs to fulfill contracts			208			195
Capitalized costs to obtain contracts			268			281
Total deferred costs†		$	3,046		$	2,049

* Prepaid software costs include deferred costs for committed multi-year, on-premises software purchase contracts.

† Of the total deferred costs, $1,166 million was current and $1,880 million was noncurrent at March 31, 2026, and $1,009 million was current and $1,040 million was noncurrent at March 31, 2025.