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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2022
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, non-corporate taxes, 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 management team’s reportable segment.
See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the Company’s decisions to no longer serve customers in Russia and the subsequent decision to exit its operations in Russia.
Revenues from external customers and operating profit/(loss), before unallocated expenses, by reportable segment for the three months ended March 31, 2022 and 2021, were as follows:
 Three Months Ended
March 31,
 20222021
Segment revenues:
North America$687,711 $474,853 
Europe451,970 276,704 
Russia31,933 29,218 
Total segment revenues$1,171,614 $780,775 
Segment operating profit/(loss):  
North America$126,734 $94,103 
Europe56,711 51,073 
Russia(19,484)979 
Total segment operating profit$163,961 $146,155 
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 that accounted for more than 10% of total segment revenues during the three months ended March 31, 2022 and 2021.
Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below:
Three Months Ended
March 31,
20222021
Total segment operating profit:$163,961 $146,155 
Unallocated amounts:
Stock-based compensation expense(7,112)(24,553)
Amortization of intangibles assets(5,244)(3,140)
Other acquisition-related expenses (579)(1,933)
Other unallocated expenses(21,784)(9,278)
Income from operations129,242 107,251 
Interest and other (loss)/income, net(165)5,374 
Foreign exchange (loss)/gain(22,785)2,299 
Income before provision for income taxes$106,292 $114,924 
Geographic Area Information
Long-lived assets presented in the table below 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
March 31,
2022		As of
December 31,
2021
Ukraine$74,902 $78,289 
Belarus70,700 75,422 
United States17,423 14,843 
India10,997 9,459 
Poland8,025 8,240 
Hungary5,612 5,339 
Russia— 16,611 
Other 31,980 28,011 
Total$219,639 $236,214 
See Note 2 “Impact of the Invasion of Ukraine” for more information regarding the Company’s decisions to no longer serve customers in Russia, impairment of long-lived assets in Russia and the subsequent decision to exit its operations in Russia.
The table below presents information about the Company’s revenues by customer location for the three months ended March 31, 2022 and 2021:
Three Months Ended
March 31,
20222021
United States$657,027 $448,021 
United Kingdom153,197 93,464 
Switzerland81,830 67,568 
Netherlands50,179 33,032 
Germany36,389 22,025 
Russia30,692 27,656 
Canada27,029 21,835 
Other locations135,271 67,174 
Total$1,171,614 $780,775