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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. Segment results are based on the segment’s revenues and operating profit, where segment operating profit is defined as income from operations before unallocated costs. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as an allocation of certain shared services expenses. Certain corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, certain taxes included in operating expenses including the Belarus High-Technologies Park membership fee, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate amortization of intangible assets acquired through business combinations, goodwill and other asset impairment charges, stock-based compensation expenses, acquisition-related costs and certain other one-time charges. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments.
The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular customer relationship generally correlates with the customer’s geographic location, there is a high degree of similarity between customer locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular customer is assigned to a management team in another region and is usually based on the strength of the relationship between customer executives and particular members of EPAM’s senior management team. In such cases, the customer’s activity would be reported through the respective management team member’s reportable segment.
Revenues from external customers and operating profit, before unallocated expenses, by reportable segments were as follows:
 For the years ended December 31,
 202020192018
Segment revenues:
North America$1,601,820 $1,380,944 $1,076,979 
Europe947,305 820,717 692,785 
Russia110,353 92,137 73,148 
Total revenues$2,659,478 $2,293,798 $1,842,912 
Segment operating profit:
North America$345,196 $293,757 $221,846 
Europe152,902 114,863 115,876 
Russia5,811 17,347 11,377 
Total segment operating profit$503,909 $425,967 $349,099 
Intersegment transactions were excluded from the above on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results.
There were no customers individually exceeding 10% of our total segment revenues for the years ended December 31, 2020, 2019 and 2018.
Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below:
For the Years Ended December 31,
202020192018
Total segment operating profit:$503,909 $425,967 $349,099 
Unallocated costs:
Stock-based compensation expense(75,238)(72,036)(59,188)
Amortization of purchased intangibles(12,340)(9,914)(8,101)
Other acquisition-related expenses(1,868)(3,774)(916)
Other unallocated costs
(35,139)(37,393)(35,130)
Income from operations379,324 302,850 245,764 
Interest and other income, net3,822 8,725 3,522 
Foreign exchange (loss)/gain(4,667)(12,049)487 
Income before provision for income taxes$378,479 $299,526 $249,773 
Geographic Area Information
Long-lived assets include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Physical locations and values of the Company’s long-lived assets are presented below:
As of December 31, 2020As of December 31, 2019As of December 31, 2018
Belarus$73,988 $75,984 $50,085 
Ukraine30,980 24,652 8,433 
United States15,718 15,637 13,101 
Russia15,036 17,980 9,902 
India7,079 7,443 7,019 
Poland5,434 5,029 2,637 
Hungary5,365 5,201 3,168 
Spain2,799 1,106 875 
China2,722 3,036 2,651 
Mexico2,419 2,353 812 
Other 7,993 6,838 3,963 
Total$169,533 $165,259 $102,646 
The table below presents the Company’s revenues by customer location for the years ended December 31, 2020, 2019 and 2018:
For the Years Ended December 31,
202020192018
United States$1,523,731 $1,321,662 $1,029,327 
United Kingdom331,217 290,039 200,918 
Switzerland203,391 152,710 144,398 
Netherlands114,678 88,488 70,274 
Russia104,846 89,941 71,181 
Germany84,902 82,441 80,787 
Canada68,416 68,304 69,836 
Other locations228,297 200,213 176,191 
Revenues$2,659,478 $2,293,798 $1,842,912