Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Our reportable segments are:

•Financial Services, which consists of the banking and insurance operating segments;

•Healthcare, which consists of the healthcare and life sciences operating segments;

•Products and Resources, which consists of the retail and consumer goods; manufacturing, logistics, energy, and utilities; and travel and hospitality operating segments; and

•Communications, Media and Technology

Our segments are industry-based, and as such, we report revenue from clients in the segment with which our clients are most closely aligned. Our client partners, account executives and client relationship managers are aligned in accordance with the specific industries they serve. Our chief operating decision maker evaluates the Company's performance and allocates resources based on segment revenues and operating profit. Segment operating profit is defined as income from operations before unallocated costs. Generally, operating expenses for each operating segment have similar characteristics and are subject

to the same factors, pressures and challenges. However, the economic environment and its effects on industries served by the operating segments may affect revenues and operating expenses to differing degrees.

In 2022, we made certain changes to the internal measurement of segment operating profits for the purpose of evaluating

segment performance and resource allocation. The primary reason for the change was to charge costs to the business segments that are directly managed and controlled by them. Specifically, segment operating profit now includes costs related to non-delivery personnel that support consulting services, which were previously included in "unallocated costs." We have reported 2022 segment operating profits using the new allocation methodology and have restated the 2021 results to conform to the new methodology. Additionally, the communications, media and technology segment, which was previously comprised of two operating segments (i) communications and media; and (ii) technology is now comprised of one operating segment - communications, media and technology. This change reflects how this operating segment is currently managed and reported to chief operating decision makers but will not affect the reportable segment financial results.

Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as a per employee charge for use of our global delivery centers and infrastructure. Certain SG&A expenses, the excess or shortfall of incentive-based compensation for commercial and delivery employees as compared to target, a portion of depreciation and amortization and the impact of the settlements of the cash flow hedges are not allocated to individual segments in internal management reports used by the chief operating decision maker. Accordingly, such expenses are excluded from segment operating profit and are included below as “unallocated costs” and adjusted against our total income from operations. Additionally, management has determined that it is not practical to allocate identifiable assets by segment, since such assets are used interchangeably among the segments.

For revenues by reportable segment and geographic area, see Note 2.

Segment operating profits by reportable segment were as follows for the three months ended March 31:

(in millions)	2022		2021
Financial Services	$	421	$	398
Healthcare	368		405
Products and Resources	332		302
Communications, Media and Technology	245		212
Total segment operating profit	1,366		1,317
Less: unallocated costs	642		648
Income from operations	$	724	$	669

Geographic Area Information

Long-lived assets by geographic area are as follows:

	As of
(in millions)	March 31, 2022		December 31, 2021
Long-lived Assets: (1)
North America(2)	$	387	$	377
Europe	70		75
Rest of World (3)	714		719
Total	$	1,171	$	1,171

(1)Long-lived assets include property and equipment, net of accumulated depreciation and amortization.

(2)Substantially all relates to the United States.

(3)Substantially all relates to India.