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SEGMENT INFORMATION
 12 Months Ended
Dec. 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, certain taxes included in operating expenses, 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 and benefits. 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.
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, before unallocated expenses, by reportable segments were as follows:
 For the Years Ended December 31,
 202220212020
Segment revenues:
North America$2,898,554 $2,242,248 $1,601,820 
Europe1,853,056 1,350,484 947,305 
Russia73,088 165,412 110,353 
Total revenues$4,824,698 $3,758,144 $2,659,478 
Segment operating profit/(loss):
North America$589,412 $462,798 $345,196 
Europe223,276 233,727 152,902 
Russia(13,460)32,547 5,811 
Total segment operating profit$799,228 $729,072 $503,909 
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, 2022, 2021 and 2020.
Reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below:
For the Years Ended December 31,
202220212020
Total segment operating profit:$799,228 $729,072 $503,909 
Unallocated costs:
Stock-based compensation expense(99,909)(111,655)(75,238)
Amortization of purchased intangibles(22,223)(17,646)(12,340)
Other acquisition-related expenses(1,537)(6,397)(1,868)
Other unallocated costs(102,593)(51,058)(35,139)
Income from operations572,966 542,316 379,324 
Interest and other income/(loss), net10,025 (1,727)3,822 
Foreign exchange loss(75,733)(7,197)(4,667)
Income before provision for income taxes$507,258 $533,392 $378,479 
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, 2022As of December 31, 2021As of December 31, 2020
Ukraine$70,183 $78,289 $30,980 
United States68,804 14,843 15,718 
Belarus57,311 75,422 73,988 
Poland14,685 8,240 5,434 
Hungary8,552 5,339 5,365 
India8,506 9,459 7,079 
Russia— 16,611 15,036 
Other 45,307 28,011 15,933 
Total$273,348 $236,214 $169,533 
The table below presents the Company’s revenues by customer location for the years ended December 31, 2022, 2021 and 2020:
For the Years Ended December 31,
202220212020
United States$2,761,050 $2,125,301 $1,523,731 
United Kingdom619,305 474,941 331,217 
Switzerland323,424 271,208 203,391 
Netherlands215,444 154,816 114,678 
Germany161,758 113,727 84,902 
Canada114,910 96,646 68,416 
Russia64,745 155,186 104,846 
Other locations564,062 366,319 228,297 
Revenues$4,824,698 $3,758,144 $2,659,478