Defined benefit pension plans - actuarial loss, net of tax

[Table of Contents](exhibit311q32022.htm)EPAM SYSTEMS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Unaudited)(In thousands)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Three Months EndedSeptember 30, |  | Nine Months EndedSeptember 30, |
|   | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Net income | $ | 156,054  |  |  | $ | 115,656  |  |  | $ | 264,377  |  |  | $ | 339,373  |  |
| Other comprehensive loss: |  |  |  |  |  |  |  |
| Change in foreign currency translation adjustments, net of tax | (56,923) |  |  | (10,761) |  |  | (72,645) |  |  | (11,655) |  |
| Change in unrealized loss on hedging instruments, net of tax | (5,352) |  |  | (2,067) |  |  | (11,780) |  |  | (4,108) |  |
| Defined benefit pension plans - actuarial loss, net of tax | —  |  |  | —  |  |  | —  |  |  | (626) |  |
| Other comprehensive loss | (62,275) |  |  | (12,828) |  |  | (84,425) |  |  | (16,389) |  |
| Comprehensive income | $ | 93,779  |  |  | $ | 102,828  |  |  | $ | 179,952  |  |  | $ | 322,984  |  |

  
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 5
