v3.26.1
SEGMENTS (Tables)
3 Months Ended
Jun. 30, 2026
SEGMENTS  
Summary of results of segments

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2026

​

​

United

​

​

​

​

Principal

​

Strategic

​

Total

(Dollars in millions)

  ​ ​ ​

States

  ​ ​ ​

Japan

  ​ ​ ​

Markets

  ​ ​ ​

Markets

  ​ ​ ​

Segments

Revenue

​

$

954

​

$

534

​

$

1,262

​

$

868

​

$

3,618

Cost of service, excluding depreciation and amortization(1)

​

​

569

​

​

332

​

​

853

​

​

580

​

​

2,334

Selling, general and administrative expenses, excluding depreciation and amortization(1)

​

​

148

​

​

84

​

​

217

​

​

153

​

​

602

Other items(2)

​

​

17

​

​

8

​

​

41

​

​

74

​

​

140

Segment adjusted EBITDA

​

$

220

​

$

109

​

$

151

​

$

62

​

$

542

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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(1)

​

​

570

​

​

371

​

​

928

​

​

585

​

​

2,454

Selling, general and administrative expenses, excluding depreciation and amortization(1)

​

​

137

​

​

85

​

​

218

​

​

143

​

​

583

Other items(2)

​

​

7

​

​

7

​

​

12

​

​

7

​

​

34

Segment adjusted EBITDA

​

$

196

​

$

115

​

$

197

​

$

163

​

$

672

(1)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.
(2)Other items include workforce rebalancing charges and other expense (income).

​

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

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30,

(Dollars in millions)

  ​ ​ ​

2026

  ​ ​ ​

2025

Segment adjusted EBITDA

​

$

542

​

$

672

Transaction-related (costs) benefits

​

​

38

​

​

—

Stock-based compensation expense

​

​

(21)

​

​

(24)

Impairment expense

​

​

(38)

​

​

—

Interest expense

​

​

(34)

​

​

(19)

Depreciation of property, equipment and capitalized software

​

​

(183)

​

​

(191)

Amortization expense

​

​

(338)

​

​

(315)

Corporate expense not allocated to the segments

​

​

(30)

​

​

(26)

Other adjustments*

​

​

(5)

​

​

(5)

Pretax income (loss)

​

$

(69)

​

$

92

*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.