REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 |
110 Fulbourn Road Cambridge CB1 9NJ United Kingdom | ||
(Address of principal executive office) |
Page | |||||
Financial Statements (Unaudited) | |||||
Condensed Consolidated Income Statements for the three and six months ended September 30, 2023 and 2022 | |||||
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended September 30, 2023 and 2022 | |||||
Condensed Consolidated Balance Sheets as of September 30, 2023 and March 31, 2023 | |||||
Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended September 30, 2023 and 2022 | |||||
Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2023 and 2022 | |||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Revenue from external customers | $ | $ | $ | $ | |||||||||||||||||||
Revenue from related parties | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of sales | ( | ( | ( | ( | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | ( | ( | ( | ( | |||||||||||||||||||
Selling, general and administrative | ( | ( | ( | ( | |||||||||||||||||||
Disposal, restructuring and other operating expenses, net | ( | ( | |||||||||||||||||||||
Total operating expense | ( | ( | ( | ( | |||||||||||||||||||
Operating income (loss) | ( | ( | |||||||||||||||||||||
Income (loss) from equity investments, net | ( | ( | ( | ( | |||||||||||||||||||
Interest income, net | |||||||||||||||||||||||
Other non-operating income (loss), net | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net income (loss) per share attributable to ordinary shareholders | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Diluted | $ | ( | $ | $ | $ | ||||||||||||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||
Net change of the effective portion of designated cash flow hedges | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive income (loss) | $ | ( | $ | $ | ( | $ |
As of | |||||||||||
September 30, 2023 | March 31, 2023 | ||||||||||
Assets: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net (including receivables from related parties of $ | |||||||||||
Contract assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Non-current assets: | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right of use assets | |||||||||||
Equity investments (including investments held at fair value of $ | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Non-current portion of contract assets | |||||||||||
Other non-current assets | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities: | |||||||||||
Current liabilities: | |||||||||||
Accrued compensation and benefits and share-based compensation | $ | $ | |||||||||
Tax liabilities | |||||||||||
Contract liabilities (including contract liabilities from related parties of $ | |||||||||||
Operating lease liabilities | |||||||||||
Other current liabilities (including payables to related parties of $ | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Non-current portion of accrued compensation and share-based compensation | |||||||||||
Deferred tax liabilities | |||||||||||
Non-current portion of contract liabilities | |||||||||||
Non-current portion of operating lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) |
As of | |||||||||||
September 30, 2023 | March 31, 2023 | ||||||||||
Shareholders’ equity: | |||||||||||
Ordinary shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Ordinary Shares | |||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net change in fair value of the effective portion of designated cash flow hedges, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation cost | — | — | — | — | |||||||||||||||||||||||||||||||
Tax withholding on vested shares | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Reclassification of RSU awards previously liability-classified (1) | — | — | — | — | |||||||||||||||||||||||||||||||
Distribution to majority ordinary shareholder related to Pelion IOT Limited | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
Ordinary Shares | |||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||
Net change in fair value of the effective portion of designated cash flow hedges, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation cost | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | $ |
Six Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Ordinary Shares | |||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Net change in fair value of the effective portion of designated cash flow hedges, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation cost | — | — | — | — | |||||||||||||||||||||||||||||||
Tax withholding on vested shares | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Reclassification of RSU awards previously liability-classified (1) | — | — | — | — | |||||||||||||||||||||||||||||||
Distribution to majority ordinary shareholder related to Pelion IOT Limited | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | $ |
Six Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
Ordinary Shares | |||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Additional Paid- in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | |||||||||||||||||||||||||||||||
Net change in fair value of the effective portion of designated cash flow hedges, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation cost | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | $ |
Six Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows provided by (used for) operating activities: | |||||||||||
Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Income (loss) from equity investments, net | |||||||||||
Share-based compensation cost | |||||||||||
Operating lease expense | |||||||||||
Other non-cash operating activities, net | ( | ( | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable, net (including receivables from related parties) | ( | ||||||||||
Contract assets | ( | ||||||||||
Prepaid expenses and other assets | |||||||||||
Accrued compensation and benefits and share-based compensation | ( | ( | |||||||||
Contract liabilities (including contract liabilities from related parties) | ( | ||||||||||
Tax liabilities | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Other current liabilities (including payables to related parties) | ( | ( | |||||||||
Net cash provided by (used for) operating activities | $ | $ | ( | ||||||||
Cash flows provided by (used for) investing activities | |||||||||||
Purchase of short-term investments | ( | ( | |||||||||
Proceeds from maturity of short-term investments | |||||||||||
Purchases of equity investments | ( | ( | |||||||||
Purchases of intangible assets | ( | ( | |||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash provided by (used for) investing activities | $ | ( | $ | ( | |||||||
Cash flows provided by (used for) financing activities | |||||||||||
Payment of intangible asset obligations | ( | ( | |||||||||
Other financing activities, net | ( | ||||||||||
Payment of withholding tax on vested shares | ( | ||||||||||
Net cash provided by (used for) financing activities | $ | ( | $ | ( | |||||||
Effect of foreign exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at the beginning of the period | |||||||||||
Cash and cash equivalents at the end of the period | $ | $ | |||||||||
Six Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Non-cash operating, investing and financing activities: | |||||||||||
Non-cash additions in property and equipment | $ | $ | |||||||||
Non-cash additions in intangible assets | $ | $ | |||||||||
Non-cash additions in operating lease right of use assets | $ | $ | |||||||||
Non-cash additions of operating lease liabilities | $ | $ | |||||||||
Non-cash additions to equity investments from conversion of certain receivables | $ | $ | |||||||||
Non-cash distributions to shareholders | $ | $ | |||||||||
Non-cash withholding tax on vested shares | $ | $ | |||||||||
Non-cash reclassification of share-based compensation costs | $ | $ | |||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
External Customers | Related Parties | Total | ||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
License and Other Revenue (1) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Royalty Revenue | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Six Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
External Customers | Related Parties | Total | ||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
License and Other Revenue (2) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Royalty Revenue | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
PRC (1) | ||||||||||||||||||||||||||
Taiwan | ||||||||||||||||||||||||||
Republic of Korea | ||||||||||||||||||||||||||
Other countries | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in millions) | As of September 30, 2023 | As of March 31, 2023 | ||||||||||||
Trade receivables | $ | $ | ||||||||||||
Royalty receivables | ||||||||||||||
Total gross receivables | ||||||||||||||
Allowance for current expected credit losses | ( | ( | ||||||||||||
Total accounts receivables, net | $ | $ |
(in millions) | Total | |||||||
Balance as of March 31, 2023 | $ | |||||||
Additional provision | ||||||||
Amounts written off during the period as uncollectible | ||||||||
Balance as of September 30, 2023 | $ |
(in millions) | Total | |||||||
Current Contract Liabilities | $ | |||||||
Non- Current Contract Liabilities | ||||||||
Balance as of March 31, 2023 | $ | |||||||
Customer prepayment and billing in advance of performance | ||||||||
Revenue recognized in the period that was included in the contract liability balance at the beginning of the period | ( | |||||||
Revenue recognized in the period that was included in the contract liability balance during the period | ( | |||||||
Balance as of September 30, 2023 | $ | |||||||
Current portion of contract liabilities | $ | |||||||
Non-current portion of contract liabilities | $ |
(in millions) | As of September 30, 2023 | As of March 31, 2023 | ||||||||||||
Equity method investments under fair value option | $ | $ | ||||||||||||
Equity method investments under equity method | ||||||||||||||
Non-marketable equity securities | ||||||||||||||
Total equity investments | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Equity method investments (1) | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Non-marketable equity securities (includes NAV) | ( | ( | ||||||||||||||||||||||||
Total loss from equity investments, net | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Observable price adjustments on non-marketable equity securities (includes NAV) | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||
Impairment of non-marketable equity securities | ( | |||||||||||||||||||||||||
Sale of non-marketable equity securities | ||||||||||||||||||||||||||
Total income (loss) from equity investments, net | $ | ( | $ | ( | $ | $ |
(in millions) | As of September 30, 2023 | As of March 31, 2023 | ||||||||||||
Loan and other receivables carried at amortized cost | ||||||||||||||
Loans receivable | $ | $ | ||||||||||||
Other receivables | ||||||||||||||
Allowance for current expected credit losses | ( | ( | ||||||||||||
Loans and other receivables carried at amortized cost, net | $ | $ |
(in millions) | As of September 30, 2023 | As of March 31, 2023 | ||||||||||||
Designated as cash flow hedges | ||||||||||||||
Foreign currency forward contracts | $ | $ | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||
(in millions) | As of September 30, 2023 | As of March 31, 2023 | As of September 30, 2023 | As of March 31, 2023 | ||||||||||||||||||||||
Designated as cash flow hedges | ||||||||||||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Consolidated Statements of Comprehensive Income: | ||||||||||||||||||||||||||
Gains (losses) recognized in Accumulated other comprehensive income on cash flow hedge derivatives | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
(Gains) losses reclassified from Accumulated other comprehensive income into income | ( | ( | ||||||||||||||||||||||||
Tax benefit on cash flow hedges | ||||||||||||||||||||||||||
Net change in fair value of the effective portion of designated cash flow hedges, net of tax (1) | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Consolidated Income Statements, before tax: | ||||||||||||||||||||||||||
Research and development | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Selling, general and administrative expenses | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ | ( |
As of September 30, 2023 | As of March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Total financial liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
As of September 30, 2023 | As of March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments(1) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Equity method investments(2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible loans receivable | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Fair value of financial assets at the beginning of the period | $ | $ | $ | $ | ||||||||||||||||||||||
Additions, net of contributions from shareholders of the Company | ||||||||||||||||||||||||||
Fair value losses recognized in the income statement | ( | ( | ( | ( | ||||||||||||||||||||||
Distributions to shareholders of the Company | ||||||||||||||||||||||||||
Fair value at the end of the period | $ | $ | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Fair value of financial assets at the beginning of the period | $ | $ | $ | $ | ||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||
Converted into equity | ||||||||||||||||||||||||||
Fair value gains recognized in the income statement | ||||||||||||||||||||||||||
Fair value at the end of the period | $ | $ | $ | $ |
As of September 30, 2023 and March 31, 2023 | ||||||||||||||||||||||||||||||||
(in millions) | Fair value as of September 30, 2023 | Fair value as of March 31, 2023 | Valuation Technique | Unobservable Inputs | Range of Estimates | |||||||||||||||||||||||||||
Equity Method Investments | $ | $ | Acetone – Market-Calibration or discounted cash flow Ampere – PWER | LTM Revenue Multiple Probability of IPO, time to future exit scenario, discount rate | Probability weighted – Discount Rate – |
Number of RSUs | Weighted Average Grant Date Fair Value Per RSU(1) | |||||||||||||
Outstanding as of March 31, 2023 | $ | |||||||||||||
Granted | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding as of September 30, 2023 | $ | |||||||||||||
Expected to vest as of September 30, 2023 | $ |
Number of RSUs | Weighted Average Grant Date Fair Value Per RSU(1) | |||||||||||||
Outstanding as of March 31, 2023 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding as of September 30, 2023 | $ | |||||||||||||
Expected to vest as of September 30, 2023 | $ |
Number of RSUs | Weighted Average Grant Date Fair Value Per RSU | |||||||||||||
Outstanding as of March 31, 2023 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding as of September 30, 2023 | $ | |||||||||||||
Expected to vest as of September 30, 2023 | $ |
Awards(1) | Weighted Average Grant Date Fair Value Per Award(1) | |||||||||||||
Outstanding as of March 31, 2023 | ||||||||||||||
Executed Awards converted from liability awards | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ||||||||||||||
Cancelled and forfeited | ||||||||||||||
Outstanding as of September 30, 2023 | $ | |||||||||||||
Expected to vest as of September 30, 2023 | $ |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | ||||||||||||||||||||||
Selling, general and administrative | ||||||||||||||||||||||||||
Research and development | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||
(in millions, except shares and per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Weighted average ordinary shares used to calculate basic net income (loss) per share (1) | ||||||||||||||||||||||||||
Equity-classified awards | ||||||||||||||||||||||||||
Weighted average ordinary shares used to calculate diluted net income (loss) per share | ||||||||||||||||||||||||||
Net income (loss) per ordinary share - basic | $ | ( | $ | $ | $ | |||||||||||||||||||||
Net income (loss) per ordinary share - diluted | $ | ( | $ | $ | $ |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Restricted stock units (1) | |||||||||||||||||||||||
Executive awards (2) | |||||||||||||||||||||||
Total |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | % of revenue | 2022 | % of revenue | 2023 | % of revenue | 2022 | % of revenue | ||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 644 | 80 | % | $ | 469 | 74 | % | $ | 1,179 | 80 | % | $ | 993 | 75 | % | ||||||||||||||||||||||
Revenue from related parties | 162 | 20 | % | 161 | 26 | % | 302 | 20 | % | 329 | 25 | % | ||||||||||||||||||||||||||
Total revenue | 806 | 100 | % | 630 | 100 | % | 1,481 | 100 | % | 1,322 | 100 | % | ||||||||||||||||||||||||||
Cost of sales | (46) | (6) | % | (25) | (4) | % | (77) | (5) | % | (50) | (4) | % | ||||||||||||||||||||||||||
Gross profit | 760 | 94 | % | 605 | 96 | % | 1,404 | 95 | % | 1,272 | 96 | % | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Research and development | (626) | (78) | % | (248) | (39) | % | (963) | (65) | % | (466) | (35) | % | ||||||||||||||||||||||||||
Selling, general and administrative | (290) | (36) | % | (172) | (27) | % | (486) | (33) | % | (325) | (25) | % | ||||||||||||||||||||||||||
Disposal, restructuring and other operating expenses, net | — | 0 | % | (2) | 0 | % | — | 0 | % | (4) | 0 | % | ||||||||||||||||||||||||||
Total operating expense | (916) | (114) | % | (422) | (67) | % | (1,449) | (98) | % | (795) | (60) | % | ||||||||||||||||||||||||||
Operating income (loss) | (156) | (19) | % | 183 | 29 | % | (45) | (3) | % | 477 | 36 | % | ||||||||||||||||||||||||||
Income (loss) from equity investments, net | (5) | (1) | % | (60) | (10) | % | (12) | (1) | % | (74) | (6) | % | ||||||||||||||||||||||||||
Interest income, net | 28 | 3 | % | 6 | 1 | % | 52 | 4 | % | 8 | 1 | % | ||||||||||||||||||||||||||
Other non-operating income (loss), net | 14 | 2 | % | 23 | 4 | % | 13 | 1 | % | 27 | 2 | % | ||||||||||||||||||||||||||
Income (loss) from operations before income taxes | (119) | (15) | % | 152 | 24 | % | 8 | 1 | % | 438 | 33 | % | ||||||||||||||||||||||||||
Income tax expense | 9 | 1 | % | (38) | (6) | % | (13) | (1) | % | (99) | (7) | % | ||||||||||||||||||||||||||
Net income (loss) | $ | (110) | (14) | % | $ | 114 | 18 | % | $ | (5) | — | % | $ | 339 | 26 | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
External Customers | Related Parties | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||||||||
License and Other Revenue | $ | 294 | $ | 95 | 209 | % | $ | 94 | $ | 93 | 1 | % | $ | 388 | $ | 188 | 106 | % | |||||||||||||||||||||||||||||
Royalty Revenue | 350 | 374 | (6) | % | 68 | 68 | — | % | 418 | 442 | (5) | % | |||||||||||||||||||||||||||||||||||
$ | 644 | $ | 469 | 37 | % | $ | 162 | $ | 161 | 1 | % | $ | 806 | $ | 630 | 28 | % |
Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
External Customers | Related Parties | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||||||||
License and Other Revenue | $ | 474 | $ | 242 | 96 | % | $ | 189 | $ | 204 | (7) | % | $ | 663 | $ | 446 | 49 | % | |||||||||||||||||||||||||||||
Royalty Revenue | 705 | 751 | (6) | % | 113 | 125 | (10) | % | 818 | 876 | (7) | % | |||||||||||||||||||||||||||||||||||
$ | 1,179 | $ | 993 | 19 | % | $ | 302 | $ | 329 | (8) | % | $ | 1,481 | $ | 1,322 | 12 | % |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Cost of sales | $ | (46) | $ | (25) | 84% | $ | (77) | $ | (50) | 54% |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Research and development | $ | (626) | $ | (248) | 152% | $ | (963) | $ | (466) | 107% |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Selling, general and administrative | $ | (290) | $ | (172) | 69 | % | $ | (486) | $ | (325) | 50 | % |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Disposal, restructuring and other operating expenses, net | $ | — | $ | (2) | (100) | % | $ | — | $ | (4) | (100) | % |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Income (loss) from equity investments, net | $ | (5) | $ | (60) | (92) | % | $ | (12) | $ | (74) | (84) | % |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Interest income, net | $ | 28 | $ | 6 | 367 | % | $ | 52 | $ | 8 | 550 | % |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Other non-operating income (loss), net | $ | 14 | $ | 23 | (39) | % | $ | 13 | $ | 27 | (52) | % |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||||
Income tax benefit (expense) | $ | 9 | $ | (38) | (124) | % | $ | (13) | $ | (99) | (87) | % | ||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (119) | $ | 152 | (178) | % | $ | 8 | $ | 438 | (98) | % | ||||||||||||||||||||||||||
Income tax benefit (expense) as a percentage of income before taxes | 7.6 | % | (25.0) | % | (162.5) | % | (22.6) | % |
Six Months Ended September 30, | ||||||||||||||
(in millions) | 2023 | 2022 | ||||||||||||
Net cash provided by (used for) operating activities | $ | 113 | $ | (155) | ||||||||||
Net cash provided by (used for) investing activities | $ | (223) | $ | (118) | ||||||||||
Net cash used for financing activities | $ | (39) | $ | (20) | ||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | $ | 1 | $ | (21) | ||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (148) | $ | (314) | ||||||||||
Cash and cash equivalents at the beginning of the period | $ | 1,554 | $ | 1,004 | ||||||||||
Cash and cash equivalents from continuing operations, end of the period | $ | 1,406 | $ | 690 |
ARM HOLDINGS PLC | ||||||||
Date: November 9, 2023 | By: | /s/ Laura Bartels | ||||||
Name: | Laura Bartels | |||||||
Title: | Chief Accounting Officer (Principal Accounting Officer) |
Cover Page |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Central Index Key | 0001973239 |
Current Fiscal Year End Date | --03-31 |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Registrant Name | ARM HOLDINGS PLC /UK |
Condensed Consolidated Income Statements - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue | $ 806.0 | $ 630.0 | $ 1,481.0 | $ 1,322.0 |
Cost of sales | (46.0) | (25.0) | (77.0) | (50.0) |
Gross profit | 760.0 | 605.0 | 1,404.0 | 1,272.0 |
Research and development | (626.0) | (248.0) | (963.0) | (466.0) |
Selling, general and administrative | (290.0) | (172.0) | (486.0) | (325.0) |
Disposal, restructuring and other operating expenses, net | 0.0 | (2.0) | 0.0 | (4.0) |
Total operating expense | (916.0) | (422.0) | (1,449.0) | (795.0) |
Operating income (loss) | (156.0) | 183.0 | (45.0) | 477.0 |
Income (loss) from equity investments, net | (5.0) | (60.0) | (12.0) | (74.0) |
Interest income, net | 28.0 | 6.0 | 52.0 | 8.0 |
Other non-operating income (loss), net | 14.0 | 23.0 | 13.0 | 27.0 |
Income (loss) before income taxes | (119.0) | 152.0 | 8.0 | 438.0 |
Income tax benefit (expense) | 9.0 | (38.0) | (13.0) | (99.0) |
Net income (loss) | $ (110.0) | $ 114.0 | $ (5.0) | $ 339.0 |
Net income (loss) per share attributable to ordinary shareholders | ||||
Basic (in USD per share) | $ (0.11) | $ 0.11 | $ 0.00 | $ 0.33 |
Diluted (in USD per share) | $ (0.11) | $ 0.11 | $ 0.00 | $ 0.33 |
Weighted average ordinary shares outstanding | ||||
Basic (in shares) | 1,025,312,845 | 1,025,234,000 | 1,025,273,638 | 1,025,234,000 |
Diluted (in shares) | 1,025,312,845 | 1,027,048,150 | 1,025,273,638 | 1,026,475,177 |
External Customers | ||||
Revenue | $ 644.0 | $ 469.0 | $ 1,179.0 | $ 993.0 |
Related Parties | ||||
Revenue | $ 162.0 | $ 161.0 | $ 302.0 | $ 329.0 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (110) | $ 114 | $ (5) | $ 339 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (16) | (36) | (10) | (71) |
Net change of the effective portion of designated cash flow hedges | (14) | (21) | (14) | (21) |
Total comprehensive income (loss) | $ (140) | $ 57 | $ (29) | $ 247 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Accounts receivable, net | $ 864 | $ 999 |
Equity method investments under fair value option | 578 | 592 |
Contract liabilities | 288 | 293 |
Other current liabilities | $ 217 | $ 293 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,088,334,144 | 1,025,234,000 |
Common stock, shares issued (in shares) | 1,025,234,000 | 1,025,234,000 |
Common stock, shares, outstanding (in shares) | 1,025,234,000 | 1,025,234,000 |
Related Parties | ||
Accounts receivable, net | $ 270 | $ 402 |
Contract liabilities | 119 | 135 |
Other current liabilities | $ 17 | $ 17 |
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
|
Share-based compensation cost | $ 384 | $ 443 |
Restricted Stock Units, Liability-Classified | ||
Share-based compensation cost | $ 129 | $ 212 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash flows provided by (used for) operating activities: | ||
Net income | $ (5) | $ 339 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation and amortization | 82 | 87 |
Deferred income taxes | (17) | (9) |
Income (loss) from equity investments, net | 12 | 74 |
Share-based compensation cost | 653 | 47 |
Operating lease expense | 17 | 17 |
Other non-cash operating activities, net | (3) | (2) |
Changes in assets and liabilities: | ||
Accounts receivable, net (including receivables from related parties) | 135 | (209) |
Contract assets | (87) | 39 |
Prepaid expenses and other assets | 13 | 13 |
Accrued compensation and benefits and share-based compensation | (442) | (509) |
Contract liabilities (including contract liabilities from related parties) | (72) | 12 |
Tax liabilities | (64) | 39 |
Operating lease liabilities | (17) | (59) |
Other current liabilities (including payables to related parties) | (92) | (34) |
Net cash provided by (used for) operating activities | 113 | (155) |
Cash flows provided by (used for) investing activities | ||
Purchase of short-term investments | (385) | (665) |
Proceeds from maturity of short-term investments | 246 | 610 |
Purchases of equity investments | (11) | (3) |
Purchases of intangible assets | (13) | (22) |
Purchases of property and equipment | (60) | (38) |
Net cash provided by (used for) investing activities | (223) | (118) |
Cash flows provided by (used for) financing activities | ||
Payment of intangible asset obligations | (21) | (20) |
Other financing activities, net | (6) | 0 |
Payment of withholding tax on vested shares | (12) | 0 |
Net cash provided by (used for) financing activities | (39) | (20) |
Effect of foreign exchange rate changes on cash and cash equivalents | 1 | (21) |
Net decrease in cash and cash equivalents | (148) | (314) |
Cash and cash equivalents at the beginning of the period | 1,554 | 1,004 |
Cash and cash equivalents at the end of the period | 1,406 | 690 |
Non-cash operating, investing and financing activities: | ||
Non-cash additions in property and equipment | 5 | 9 |
Non-cash additions in intangible assets | 38 | 0 |
Non-cash additions in operating lease right of use assets | 13 | 2 |
Non-cash additions of operating lease liabilities | 13 | 2 |
Non-cash additions to equity investments from conversion of certain receivables | 4 | 0 |
Non-cash distributions to shareholders | 12 | 0 |
Non-cash reclassification of share-based compensation costs | 343 | 0 |
Non-cash withholding tax on vested shares | $ 11 | $ 0 |
Description of Business and Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1 - Description of Business and Summary of Significant Accounting Policies Description of Business Arm Holdings plc and its wholly owned subsidiaries (“the Company” and also referred to as “we,” “our” or “us”) is a global leader in the semiconductor industry. The Company’s principal operations are the licensing, marketing, research and development of microprocessors, systems intellectual property (“IP”), graphics processing units, physical IP and associated systems IP, software, tools and other related services. Corporate Reorganization In September 2023, the Company completed a board approved corporate reorganization which involved (1) the shareholders of Arm Limited exchanging each of the ordinary shares held by them in Arm Limited for newly issued ordinary shares of Arm Holdings Limited; and (2) the re-registration of Arm Holdings Limited as a public limited company under the laws of England and Wales at which time its name was changed to Arm Holdings plc. This corporate reorganization was solely for the purpose of reorganizing the Company’s corporate structure, in which Arm Limited became a wholly owned subsidiary of the holding company, Arm Holdings plc. This transfer of equity resulted in the issuance of ordinary shares of Arm Holdings plc to shareholders in the same class and the same number of ordinary shares as their previous shareholding in Arm Limited. As a result of the corporate reorganization between entities under common control, the historical consolidated financial statements of the Company were retrospectively adjusted for the change in reporting entity. Therefore, the historical consolidated financial statements of Arm Limited became the historical consolidated financial statements of Arm Holdings plc as of the date of the corporate reorganization. Initial Public Offering The registration statement on Form F-1 relating to the Company’s initial public offering (“IPO”) was declared effective on September 13, 2023 and the Company’s American depository shares (“ADSs”) began trading on the Nasdaq Global Select Market under the ticker symbol “ARM” on September 14, 2023. On September 18, 2023, the Company completed the closing of its IPO. The Company’s shareholders sold an aggregate of 102,500,000 ADSs representing ordinary shares in the Company at a price of $51 per ADS, including the underwriters’ full exercise of their option to purchase up to an additional 7,000,000 ADSs to cover over-allotments. The Company did not receive any proceeds from the sale of the ADSs in the IPO. Upon completion of the IPO, the Company recognized incremental and accelerated share-based compensation expense for which service-based vesting conditions was satisfied or partially satisfied as of September 13, 2023. See Note 8 - Share-based Compensation for further details. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the fiscal year ended March 31, 2023, in the IPO Prospectus filed on September 14, 2023 with the SEC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring adjustments, which are necessary for the fair statement of the unaudited condensed consolidated balance sheets, income statements, statements of comprehensive income, shareholders’ equity and cash flows for these interim periods. The results for the interim periods are not necessarily indicative of results for the full fiscal year. Principles of Consolidation The accompanying financial statements include the accounts of the Company, its wholly owned subsidiaries and the Arm Employee Benefit Trust (the “EBT”). All intercompany balances and transactions have been eliminated in consolidation. The financial statements consolidate all of the Company’s affiliates, and the entities where the Company holds a controlling financial interest, because the Company holds a majority voting interest. The Company reevaluates whether there is a controlling financial interest in all entities when rights and interests change. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates include, but are not limited to, revenue recognition, allowance for expected credit losses, income taxes, share-based compensation, impairment considerations for long-lived assets, fair value estimates and impairment for investments. The Company evaluates these estimates on an ongoing basis and revises estimates as circumstances change. The Company bases its estimates on historical experience, anticipated results, trends, and other various assumptions that it believes are reasonable. Actual results could differ materially from the Company’s estimates. Derivative Financial Instruments and Hedge Activities The Company uses derivative financial instruments, specifically foreign currency forward contracts, to mitigate exposure from certain foreign currency risk. Certain forecasted transactions, specifically British Pound Sterling (“GBP”) denominated cash flows in the form of payroll and selling, general and administrative expenses are exposed to foreign currency risk. The Company monitors foreign currency exposures on a monthly basis to maximize the economic effectiveness of foreign currency hedge positions. No derivatives were designated hedges prior to July 2022. All derivatives are recorded at fair value as either an asset or liability. For derivatives not designated as hedges, adjustments to reflect changes in the fair value of the derivatives are included in earnings in other non-operating income (loss), net on the Condensed Consolidated Income Statements. In July 2022, all foreign currency forward contracts were designated as cash flow hedges in designated hedging relationships with the forecasted foreign denominated cash flows as the hedged transactions. The maximum length of time over which the Company is hedging its exposure to the variability in future foreign denominated cash flows is one year. For cash flow hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the net change in fair value of the effective portion of designated cash flow hedges on the Condensed Consolidated Statements of Comprehensive Income, and subsequently recognized in research and development and selling, general and administrative expenses on the Condensed Consolidated Income Statements when the hedged transaction affects earnings. The Company classifies all derivative assets and liabilities for designated and non-designated derivatives in prepaid expenses and other current assets and other current liabilities on the Condensed Consolidated Balance Sheets. The Company classifies cash flows from the settlement of effective cash flow hedges for designated and non-designated derivatives in the same category as the cash flows from the related hedged items in operating activities on the Condensed Consolidated Statements of Cash Flows. The foreign currency forward contracts are classified under Level 2 of the fair value hierarchy. See Note 6 - Fair Value. Recent Accounting Pronouncements There have been no recent accounting standard updates that are material or potentially material to the Company.
|
Revenue |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | 2 - Revenue Revenue Recognition Revenue for the Company’s major product offerings consists of the following: License and Other Revenue •Intellectual property license — The Company generally licenses IP under non-exclusive license agreements that provide usage rights for specific applications for a finite or perpetual term. These licenses are made available electronically to address the customer-specific business requirements. These arrangements generally have distinct performance obligations that consist of transferring the licensed IPs, version extensions of architecture IP or releases of IPs, and support services. Support services consist of a stand-ready obligation to provide technical support, patches, and bug fixes over the support term. Revenue allocated to the IP license is recognized at a point in time upon the delivery or beginning of license term, whichever is later. Revenue allocated to distinct version extensions of architecture IP or releases of IP, excluding when-and-if-available minor updates over support term, are recognized at a point in time upon the delivery or beginning of license term, whichever is later. Certain license agreements provide customers with the right to access a library of current and future IPs on an unlimited basis over the contractual period depending on the terms of the applicable contract. These licensing arrangements represent stand-ready obligations in that the delivery of the underlying IPs is within the control of the customer and the extent of use in any given period does not diminish the remaining performance obligations. The contract consideration related to these arrangements is recognized ratably over the term of the contract in line with when the control of the performance obligations is transferred. •Software sales, including development systems — Sales of software, including development systems, which are not specifically designed for a given license (such as off-the-shelf software), are recognized upon delivery when control has been transferred and customer can begin to use and benefit from the license. •Professional services — Services (such as training and professional and design services) that the Company provides, which are not essential to the functionality of the IP, are separately stated and priced in the contract and accounted for separately. Training revenue is recognized as services are performed. Revenue from professional and design services are recognized over time using the input method based on engineering labor hours expended to date relative to the estimated total effort required. For such professional and design services, the Company has an enforceable right to payment for performance completed to date, which includes a reasonable profit margin and the performance of such services do not create an asset with an alternative use. •Support and maintenance — Support and maintenance is a stand-ready obligation to the customer that is both provided and consumed simultaneously. Revenue is recognized on a straight-line basis over the period for which support and maintenance is contractually agreed pursuant to the license. Royalty Revenue For certain IP license agreements, royalties are collected on products that incorporate the Company’s IP. Royalties are recognized on an accrual basis in the quarter in which the customer ships their products, based on the Company’s technology that it contains. The accrual is estimated using trend analysis based on market and sales data as well as customer specific financial information. As a result of estimating the amount of royalty revenue accrual in the period in which the customer sales occur using estimates based on sales trends and judgment for several key attributes, including industry estimates of expected shipments, the percentage of markets using our products, and average selling price. Adjustments to revenue are required in subsequent periods to reflect changes in estimates as new information becomes available, primarily resulting from actual amounts subsequently reported by the licensees. Disaggregation of Revenue A summary of the Company’s disaggregated revenue is as follows:
(1) Includes over-time revenue of $30 million and $24 million and point-in-time revenue of $358 million and $164 million for the three months ended September 30, 2023 and 2022, respectively.
(2) Includes over-time revenue of $47 million and $48 million and point-in-time revenue of $616 million and $398 million for the six months ended September 30, 2023 and 2022, respectively. Revenue by geographic region is allocated to individual countries based on the principal headquarters of the customers. The geographical locations are not necessarily indicative of the country in which the customer sells products containing the Company’s technology IP. The following table summarizes information pertaining to revenue from customers based on the principal headquarter address by geographic regions:
(1) “PRC” means the People’s Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region, but excluding Taiwan. For the three months ended September 30, 2023, the Company had two customers that collectively represented 36% of total revenue, with the single largest customer accounting for 20% of total revenue and the second largest customer accounting for 16% of total revenue. For the three months ended September 30, 2022, the Company had three customers that collectively represented 48% of total revenue, with the single largest customer accounting for 25%, the second largest customer accounting for 13%, and the third customer accounting for 10%. No other customer represented 10% or more of total revenue for the three months ended September 30, 2023 and 2022. For the six months ended September 30, 2023, the Company had two customers that collectively represented 34% of total revenue, with the single largest customer accounting for 20% of total revenue and the second largest customer accounting for 14% of total revenue. For the six months ended September 30, 2022, the Company had three customers that collectively represented 48% of total revenue, with the single largest customer accounting for 25%, the second largest customer accounting for 12%, and the third customer accounting for 11%. No other customer represented 10% or more of total revenue for the six months ended September 30, 2023 and 2022. Receivables A summary of the components of accounts receivable, net is as follows:
A summary of the movement in the allowance for current expected credit losses is as follows:
As of September 30, 2023, the customer with the largest total receivables balance represented 31% of total receivables and the customer with the second largest total receivables balance represented 13% of total receivables. As of March 31, 2023, the customer with the largest total receivables balance represented 40% of total receivables. No other customer represented 10% or more of receivables as of September 30, 2023 and March 31, 2023. Contract Assets The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract assets increased by $278.9 million and $254.1 million due to the timing of billings to customers, which fell into subsequent periods, as of September 30, 2023 and March 31, 2023, respectively, offset by $192.5 million and $250.7 million of contract assets transferred to accounts receivable, as of September 30, 2023 and March 31, 2023, respectively. The balance and activity for loss allowances related to contract assets was immaterial for all periods presented. Contract Liabilities A reconciliation of the movement in contract liabilities is as follows:
Satisfied Performance Obligations For the three months ended September 30, 2023 and 2022, revenue recognized from previously satisfied performance obligations in prior reporting periods was $421.5 million and $447.0 million, respectively. For the six months ended September 30, 2023 and 2022, revenue recognized from previously satisfied performance obligations in prior reporting periods was $820.8 million and $894.5 million, respectively. These amounts primarily represent royalties earned during the period. Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has elected to exclude potential future royalty receipts from the disclosure of remaining performance obligations. In certain arrangements, the Company’s right to consideration may not correspond directly with the performance of obligations. Revenue recognition occurs upon delivery or beginning of license term, whichever is later. Accordingly, the analysis between time bands below has been estimated, but the final timing may differ from these estimates. In the absence of sufficient information, where the timing of satisfaction of the remaining performance obligations is dependent on a customer’s action, the transaction price allocated to such performance obligation is included in the outer-year time band unless contract or option expiration aligns with an earlier period or category. As of September 30, 2023, the aggregate transaction price allocated to remaining performance obligations was $2,414.5 million, which includes $17.4 million of non-cancellable and non-refundable committed funds received from certain customers, where the parties are in negotiations regarding the enforceable rights and obligations of the arrangement. The Company expects to recognize approximately 28% of remaining performance obligations as revenue over the next 12 months, 21% over the subsequent 13-to 24-month period, and the remainder thereafter.
|
Equity Investments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments | 3 - Equity Investments A summary of the components of equity investments is as follows:
Income (loss) from equity investments, net is as follows:
(1)Includes equity method investments where the Company elected the fair value option, including those under the NAV practical expedient, along with investments accounted for under the equity method. The Company elected the fair value option to account for certain equity method investments in Acetone Limited and Ampere Computing Holdings LLC (“Ampere”). See discussion below, along with Note 6 - Fair Value, for further information. For the three and six months ended September 30, 2023 and 2022, income (loss) from equity method investments not accounted under the fair value option or the NAV practical expedient was immaterial. The Company holds equity method investments in funds accounted for under the fair value option that apply the NAV practical expedient. The estimated fair values of the Company’s equity securities at fair value that qualify for the NAV practical expedient were provided by the partnerships based on the indicated market values of the underlying assets or investment portfolios. As of September 30, 2023 and March 31, 2023, the carrying value of equity method investments under the fair value option measured at NAV was $111.4 million and $109.4 million, respectively. For the three months ended September 30, 2023, the Company recognized gains from changes in fair value of $2.1 million for equity method investments accounted for under the NAV practical expedient. For the three months ended September 30, 2022, no material gains or losses from changes in fair value were recognized for equity method investments accounted for under the NAV practical expedient. For the six months ended September 30, 2023 and 2022, the Company recognized gains and (losses) from changes in fair value of $1.6 million and $(0.1) million, respectively, for equity method investments accounted for under the NAV practical expedient. Changes in fair value are recorded through income (loss) from equity investments, net on the Condensed Consolidated Income Statements. Acetone Limited As of September 30, 2023 and March 31, 2023, the carrying value of the Company’s equity method investment in Acetone Limited was $76.8 million and $92.4 million, respectively. For the three months ended September 30, 2023 and 2022, the Company recognized fair value losses of $6.0 million and $13.2 million, respectively, in connection with the equity method investment in Acetone Limited. For the six months ended September 30, 2023 and 2022, the Company recognized fair value losses of $15.6 million and $35.2 million, respectively, in income (loss) from equity investments, net on the Condensed Consolidated Income Statements. Ampere As of September 30, 2023 and March 31, 2023, the carrying value of the Company’s equity method investment in Ampere was $389.8 million. For the three and six months ended September 30, 2023, the Company did not recognize any changes in fair value in Ampere. For the three and six months ended September 30, 2022, the Company recognized fair value losses of $44.1 million in income (loss) from equity investments, net on the Condensed Consolidated Income Statements. As of September 30, 2023 and March 31, 2023, the outstanding balance of the convertible promissory note with Ampere was $31.6 million and $30.9 million, respectively in other non-current assets on the Consolidated Balance Sheets. The Company’s maximum exposure to loss is the amounts invested in, and advanced to, Ampere as of September 30, 2023. Non-marketable Equity Securities Non-marketable securities are those for which the Company does not have significant influence or control. These represent either direct or indirect, through a capital fund, investments in unlisted early-stage development enterprises which are generating value for shareholders through research and development activities. The Company holds equity interests in certain funds which are accounted for under the NAV practical expedient. As of September 30, 2023 and March 31, 2023, the carrying value of assets measured at NAV was $20.3 million and $18.0 million, respectively. For the three months ended September 30, 2023 and 2022, the Company recognized losses from changes in fair value of $0.3 million and $3.2 million, respectively, for non-marketable securities accounted for under the NAV practical expedient. For the six months ended September 30, 2023 and 2022, the Company recognized gains of $2.2 million and losses of $6.9 million, respectively, from changes in fair value for non-marketable securities accounted for under the NAV practical expedient. In June 2023, the Company entered into a subscription letter with a subsidiary of SoftBank Vision Fund and Kigen (UK) Limited (“Kigen”), an entity of which SoftBank Vision Fund indirectly owned 85% of the share capital on a fully diluted basis with the remainder comprising management incentives. Pursuant to the subscription letter, the Company and this subsidiary of SoftBank Vision Fund each invested $10.0 million paid in cash in exchange for preference shares of Kigen. The preference shares are convertible into common shares of Kigen and are entitled to full dividends, distribution and voting rights. The Company does not have significant influence or control over Kigen and elected to apply the measurement alternative for this investment. The Company elected to apply the measurement alternative to all other non-marketable equity securities. Under the measurement alternative, these equity securities are recorded at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in orderly transactions. The components of gains (losses) which primarily include unrealized gains and losses on non-marketable securities inclusive of those measured under the NAV practical expedient are as follows:
|
Financial Instruments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | 4 - Financial Instruments Loans and Other Receivables Loans and other receivables carried at amortized cost is as follows:
The allowance for current expected credit losses reflects the Company’s best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. Loans receivable For the fiscal year ended March 31, 2021, the loan receivable from Arduino SA (“Arduino”) was impaired in full as the balance was not expected to be recovered. In September 2023 and June 2022, the Company reduced the allowance for expected credit losses given the change in collectability with a corresponding reversal of expense for the portion of the loan receivable that was repaid in exchange for Series B preferred stock in Arduino. As of September 30, 2023, the loan receivable of $15.9 million from Arduino remained fully impaired. The remaining balance of loans receivables as of September 30, 2023 and March 31, 2023 comprised a five-year loan of $3.1 million issued to Allia Limited and a four-year loan of $3.1 million and $3.0 million, respectively, issued to Cerfe Labs, Inc that was fully impaired in the fiscal year ended March 31, 2023. As of September 30, 2023, the loan receivable of $3.1 million from Cerfe Labs, Inc remained fully impaired. Other receivables As of March 31, 2023, balances included in other receivables comprised mainly of the $12.0 million receivable from the Company’s majority shareholder recorded in prepaid and other current assets on the Condensed Consolidated Balance Sheets related to the Company’s November 2021 sale of Pelion IOT Limited and its subsidiaries (“IoTP”). In August 2023, the Company distributed its receivable related to the Company’s sale of IoTP to the majority shareholder of the Company, which represented a non-cash distribution of $12.0 million. The remaining balance as of September 30, 2023 and March 31, 2023, pertains to lease deposits and other receivables. Convertible Loans Receivable In December 2021, the Company acquired a $29.0 million principal balance convertible loan in Ampere. The Company elected the fair value option to measure this convertible loan receivable for which changes in fair value are recorded in other non-operating income (loss), net on the Condensed Consolidated Income Statements. For the three and six months ended September 30, 2023 and 2022, there were no material gains recognized.
|
Derivatives |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | 5 - Derivatives The Company uses derivative financial instruments, specifically foreign currency forward contracts, to mitigate exposure from certain foreign currency risk. Certain forecasted transactions, specifically GBP denominated cash flows in the form of payroll and selling, general and administrative expenses are exposed to foreign currency risk. As of September 30, 2023, the notional value of outstanding foreign currency forward contracts was £250.0 million and the fair value was $(7.7) million. As of March 31, 2023, the notional value of outstanding foreign currency forward contracts was £340.0 million and the fair value was $9.3 million. The following table presents the notional amounts of the Company’s outstanding derivative instruments:
The following table presents the fair value of the Company’s outstanding derivative instruments:
Cash Flow Hedge Gains (Losses) The following table presents net gains (losses) on foreign currency forward contracts designated as cash flow hedges:
(1) All amounts reported in accumulated other comprehensive income at the reporting date are expected to be reclassified into earnings within the next 12 months. For the three and six months ended September 30, 2023 and 2022, the Company’s cash flow hedges were highly effective with immaterial amounts of ineffectiveness recorded in the Condensed Consolidated Income Statements for these designated cash flow hedges and all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. Non-designated Hedging Instrument Gains (Losses) The following table presents net gains (losses) on derivatives not designated as hedging instruments recorded in non-operating income (loss), net on the Condensed Consolidated Income Statements:
|
Fair Value |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | 6 - Fair Value To provide an indication about the reliability of the inputs used in determining fair value, the Company classifies its fair value financial instruments into the three levels prescribed under GAAP. An explanation of each level follows the tables and qualitative disclosures below. There were no transfers between fair value measurement levels for any periods presented. The following table presents the Company’s fair value hierarchy for the liability measured and recognized at fair value on a recurring basis:
The following table presents the Company’s fair value hierarchy for assets measured and recognized at fair value, excluding investments where the NAV practical expedient has been elected on a recurring basis:
(1)Short-term investments represent term deposits with banks with a maturity between 3 and 12 months. (2)In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. The following tables summarize changes in the fair value, along with other activity associated with the Company’s Level 3 financial assets and liabilities: Equity Method Investments
Convertible Loans Receivable
See below for a description of the valuation techniques and inputs used in the fair value measurement of Level 3 investments including equity method investments, convertible loans receivable, and currency exchange contracts. Equity Method Investments The Company elected the fair value option in accordance with the guidance in ASC 825, Financial Instruments (“ASC 825”) for its investments in Acetone Limited and Ampere. The Company initially computed the fair value for its investments consistent with the methodology and assumptions that market participants would use in their estimates of fair value with the assistance of a third-party valuation specialist or based on inputs from the investee. The fair value computation is updated on a quarterly basis. The investments are classified within Level 3 in the fair value hierarchy because the Company estimates the fair value of the investments using the (i) the market-calibration approach based on the guideline public company method, (ii) subject to availability of sufficient information, the income approach based on the discounted cash flow method, or (iii) the probability-weighted, expected return (“PWER”) approach. The market-calibration approach considers valuation multiples that are calibrated to the valuation as of the prior valuation date (i.e., quarterly) based on: (a) changes in the broader market or industry; (b) changes in the guideline public companies; and (c) changes in the company’s operating and financial performance. The fair value computation under this approach includes a key assumption for the range of valuation multiples (i.e., enterprise value or revenue), which requires significant professional judgment by the valuation specialist and is based on observable inputs (e.g., market data) and unobservable inputs (e.g., market participant assumptions). The PWER approach is based on discrete future exit scenarios to determine the value of various equity securities. Under the PWER approach, the share value today is based on the probability-weighted, present value of expected future distributions, taking into account the rights and preferences of each debt and equity class. The Company considers an initial public offering scenario, a sale scenario, and a scenario assuming continued operation as a private entity for future exit scenarios. The fair value computation under this approach includes key assumptions for time to liquidity outcomes, discounted rate, and present value factors. The following tables provide quantitative information related to certain key assumptions utilized in the valuation of equity method investments accounted for under the fair value option:
Convertible Loans Receivable—Ampere In December 2021, the Company acquired a $29.0 million convertible promissory note in Ampere, which is included in other non-current assets on the Condensed Consolidated Balance Sheets. As of September 30, 2023 and March 31, 2023, the Company’s maximum exposure to loss is the amounts invested in, and advanced to, Ampere. As of September 30, 2023 and March 31, 2023, the Company has not converted any of its convertible promissory note into equity. The fair value of the Ampere convertible loan is based upon significant unobservable inputs, including the use of a probability weighted discounted cash flows model, requiring the Company to develop its own assumptions. Therefore, the Company has categorized this asset as a Level 3 financial asset. Some of the more significant unobservable inputs used in the fair value measurement of the convertible loan include applicable discount rates, the likelihood and projected timing of repayment or conversion, and projected cash flows in support of the estimated enterprise value of Ampere. Changes in these assumptions, while holding other inputs constant, could result in a significant change in the fair value of the convertible loan. If the amortized cost of the convertible loan exceeds its estimated fair value, the security is deemed to be impaired, and must be evaluated for the recognition of credit losses. Impairment resulting from credit losses is recognized within earnings, while impairment resulting from other factors is recognized in other comprehensive income (loss). As of September 30, 2023 and March 31, 2023, the Company has not recognized any credit losses related to this convertible loan. The fair value calculated using significant unobservable inputs did not differ materially from the amortized cost basis as of September 30, 2023 and March 31, 2023. Currency Exchange Contracts For currency exchange contracts, these contracts are valued at the present value of future cash flows based on forward exchange rates at the balance sheet date.
|
Shareholders' Equity |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | 7 - Shareholders’ Equity Employee Benefit Trust In September 2023, the Company established the employee benefit trust (the “EBT”), constituted by a trust deed entered into by the Company and a professional trustee, with the principal purpose to facilitate the efficient and flexible settlement of share-based compensation arrangements with employees. The Company has the power to appoint and remove the trustee and therefore, consolidates the trust. The trustee of the EBT has the power to acquire ordinary shares or ADSs of the Company. The Company can fund the EBT by loan or non-repayable grant or gift to acquire ordinary shares or ADSs by subscription for newly issued shares or ADSs at nominal value or by purchasing ordinary shares or ADSs on the open market. In September 2023, the EBT purchased a nominal number of ADSs from the Company at par value that remained with the EBT as of September 30, 2023. These ADSs were expected to be imminently transferred out of the EBT, in order to settle vested share-based compensation for employees. As the EBT is consolidated by the Company, ordinary shares or ADSs held by the EBT are considered authorized and issued but not outstanding for the computation of earnings per share.
|
Share-based Compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation | 8 - Share-based Compensation The Company had the following share-based payment arrangements during the periods presented: Restricted Share Units—The Arm Limited All Employee Plan 2019 (“2019 AEP”) With respect to the 2019 AEP, for the three months ended September 30, 2023 and 2022, the Company recognized $340.9 million of share-based compensation cost and $6.0 million of share-based compensation credit, respectively, and $21.3 million and $(0.5) million of tax benefit (expense) associated with these awards, respectively. For the six months ended September 30, 2023 and 2022, the Company recognized $421.6 million of share-based compensation cost and $1.4 million of share-based compensation credit, respectively, and $35.6 million and $0.2 million of tax benefit associated with these awards, respectively. The share-based payment credit for the three and six months ended September 30, 2022 was attributable to the decrease in the RSU fair value and employee departures. In connection with the IPO, all restricted share units (“RSU”) previously issued under the 2019 AEP plan were modified to be settled in ordinary shares of the Company except for those awards granted to employees of the Israeli subsidiary. For those RSUs to be settled in ordinary shares, the Company accounted for this change as a modification in accordance with ASC 718, Compensation—Stock Compensation and changed the classification of the awards from liability-classified to equity-classified. As a result of the modification, the Company reclassified $306.6 million from the non-current portion of accrued compensation and share-based compensation to additional paid-in capital on the Condensed Consolidated Balance Sheets. The 2019 AEP RSUs will vest 180 days after the IPO date to the extent that the relevant vesting hurdle is met or exceeded. The modification resulted in the incremental and accelerated share-based compensation cost of $217.2 million at the modification date which affected 5,251 employees. For the remaining RSUs granted to employees of the Israeli subsidiary, these awards remain liability-classified and the Company will remeasure the RSUs at fair value at each reporting period through the date of settlement. During the period starting from May 2022 through June 2022, the Company’s remuneration committee modified the terms of the 2019 AEP to accelerate the vesting for approximately 435 employees affected by restructuring activities initiated in the year ended March 31, 2022. The affected participants of the plan were provided the option to i) settle all unvested RSUs for a cash payment equivalent to the product of (a) a fixed amount as determined by the remuneration committee (b) 50% of the number of RSUs held by the participant, or ii) retain the RSUs until they become vested pursuant to the original vesting terms. The Company accounted for this acceleration as a modification of vesting in connection with a settlement which resulted in the recognition of incremental share-based compensation cost. For the three months ended June 30, 2022, the Company recognized incremental share-based compensation cost of $11.8 million related to the cash receipt option and $2.2 million related to the RSUs retention option, respectively. The table below identifies the RSU activity under the 2019 AEP:
(1)As of March 31, 2023, 2019 AEP outstanding awards were liability-classified with a weighted average fair value per RSUs of $23.33. For periods presented prior to the IPO, the average grant date fair value per RSU represents the modification fair value at IPO. As of March 31, 2023, the total outstanding liability-classified RSUs expected to vest were 11,601,185 with a weighted average fair value per RSU of $23.33. As of September 30, 2023, the IPO triggered a modification which reclassified RSUs from liability-classified to equity-classified. As of September 30, 2023, the total outstanding liability-classified RSUs expected to vest were 146,252 with the weighted average fair value per RSU of $51.32 for the Israeli subsidiary. As of September 30, 2023, $527.7 million and $6.4 million were recognized in additional paid-in capital and non-current portion of accrued compensation and share-based compensation on the Condensed Consolidated Balance Sheets, respectively. As of March 31, 2023, $114.2 million was recognized as liability in the non-current portion of accrued compensation and share-based compensation on the Condensed Consolidated Balance Sheets. As of September 30, 2023, there was $88.4 million of total unrecognized compensation cost related to awards issued under the 2019 AEP expected to be recognized over a weighted-average period of 0.5 years. For the six months ended September 30, 2023, the Company did not have any payments arising from normal course vesting events. For the six months ended September 30, 2022, liability-classified share-based awards paid were $15.9 million related to the RSUs that had vesting conditions accelerated pursuant to restructuring activities. Restricted Share Units—Executive IPO Plan (“2019 EIP”) For the three months ended September 30, 2023 and 2022, $5.4 million and $4.1 million, respectively, of share-based compensation cost was recognized in connection with awards issued under the 2019 EIP. For the six months ended September 30, 2023 and 2022, $6.2 million and $3.5 million, respectively, of share-based compensation cost was recognized in connection with awards issued under the 2019 EIP. For the three months ended September 30, 2023 and 2022, the income tax (expense) benefit recorded was $(0.1) million and $0.7 million, respectively. For the six months ended September 30, 2023, the Company did not record any tax benefit or expense in connection with the awards under the 2019 EIP. For the six months ended September 30, 2022, the tax benefit recorded was $0.6 million. In connection with the IPO, all RSUs previously issued under the 2019 EIP plan were modified to be settled in ordinary shares of the Company. In accordance with ASC 718, Compensation—Stock Compensation, the Company changed the classification of the awards from liability-classified to equity-classified at that time. As a result of the modification, the Company reclassified $5.7 million from non-current portion of accrued compensation and share-based compensation to additional paid-in capital on the Condensed Consolidated Balance Sheets. Upon the IPO, the awards granted under the 2019 EIP Plan became fully vested and the Company recognized accelerated share-based compensation cost of $4.1 million for all awards outstanding under the 2019 EIP prior to the IPO. As of September 30, 2023, fully vested RSUs were not yet settled in ordinary shares of the Company. In October 2023, all fully vested equity-classified awards were settled in ordinary shares of the Company. The table below identifies the RSU activity under the 2019 EIP:
(1)As of March 31, 2023, 2019 EIP outstanding awards were liability-classified with a weighted average fair value per RSUs of $37.43. For periods presented prior to the IPO, the average grant date fair value per RSU represents the modification fair value at IPO. As of March 31, 2023, the total outstanding liability-classified RSUs that were expected to vest was 192,999 with the weighted average fair value per RSU of $37.43. As of September 30, 2023, $9.8 million was recognized in additional paid-in capital on the Condensed Consolidated Balance Sheets. As of March 31, 2023, $3.6 million was recognized in the non-current portion of accrued compensation and share-based compensation on the Condensed Consolidated Balance Sheets. The Company did not have any payments for liability-classified share-based awards for the three and six months ended September 30, 2023 and 2022. Phantom Share Scheme (Cash-Settled) As of September 30, 2023 and March 31, 2023, there were no Phantom Shares outstanding. The Company recognized a credit for share-based compensation cost of $0.5 million and $0.8 million in connection with the Phantom Shares for the three and six months ended September 30, 2022, respectively, which was attributable to executive departures. No share-based compensation cost and tax expense or benefit was recognized under Phantom Shares Scheme Phantom Shares for the three and six months ended September 30, 2023. As of March 31, 2023, $1.1 million was recognized in accrued compensation and benefits and share-based compensation on the Condensed Consolidated Balance Sheets. For the six months ended September 30, 2023, the Company paid $0.9 million for the vested Phantom Shares. The variance between the amount accrued and paid of $1.1 million and $0.9 million, respectively, was driven by foreign exchanges differences as participants were paid in foreign denominated currencies. As of September 30, 2023, the Company did not have any unpaid amounts in relation to the vested awards. Restricted Share Units – 2022 Arm Limited RSU Award Plan (“2022 RSU Plan”) In June 2022, the 2022 RSU Plan was established to grant RSUs to all employees of the Company (“All Employee Awards”). The RSUs vest in tranches, require continuous service through the vesting date, and are subject to graded vesting over time. The 2022 RSU Plan allows for either cash or share settlement of the RSUs by tranche at the discretion of the Company’s remuneration committee. At the time of issuance, the Company intended to settle the RSUs in ordinary shares at the vesting date, and such RSUs were accounted for as equity-classified awards. In November 2022, the Company determined that it would settle the first tranche of the RSUs outstanding that vested in March and May 2023 by paying cash instead of issuing shares. Other than the change in intent regarding form of settlement, no other terms or conditions regarding the RSUs were changed. The Company accounted for this change as a modification in accordance with ASC 718, Compensation—Stock Compensation and reclassified the affected portion of the award from equity to liability and remeasured the award at fair value at each reporting period through the date of settlement with consideration that total compensation cost cannot be less than the grant-date fair-value-based measure of the original award. The 2022 RSU Plan provides vesting schedules applicable prior to and after an initial public offering. Upon the IPO, the awards under the 2022 RSU Plan were accounted for using the vesting schedules applicable after an initial public offering which resulted in an acceleration of compensation cost. The Company accounted for the changes as a modification in accordance with ASC 718, Compensation—Stock Compensation and recorded $17.7 million of accelerated share-based compensation cost at the modification date which affected 5,041 employees. The table below identifies the All Employee Awards activity under the 2022 RSU Plan:
As of March 31, 2023, the total liability-classified RSUs that are expected to vest were 284,036 with a weighted average fair value per RSU of $40.47. For the six months ended September 30, 2023, the Company paid $244.0 million arising from the normal vesting of liability-classified share-based awards. All liability-classified awards were vested as of August 15, 2023 and were paid as of September 30, 2023. For the three months ended September 30, 2023 and 2022, share-based compensation cost of $152.1 million and $48.0 million was recognized in connection with RSUs, respectively. For the six months ended September 30, 2023 and 2022, share-based compensation cost of $215.5 million and $57.5 million was recognized in connection with RSUs, respectively. Tax benefits recorded for the three months ended September 30, 2023 and 2022 were $21.5 million and $9.1 million, respectively. Tax benefits recorded for the six months ended September 30, 2023 and 2022 were $33.3 million and $10.5 million, respectively. As of September 30, 2023, the Company recognized $208.1 million in additional paid-in capital on the Condensed Consolidated Balance Sheets for equity-classified awards. As of March 31, 2023, the Company recognized $1.9 million and $234.8 million in additional paid-in capital and accrued compensation and benefits and share-based compensation on the Condensed Consolidated Balance Sheets. As of September 30, 2023, there was $910.3 million total unrecognized compensation expense related to All Employee Awards issued under the 2022 RSU Plan expected to be recognized over a weighted-average period of 1.3 years and there were no liability-classified RSUs under the 2022 RSU Plan. Executive Awards Granted under the 2022 RSU Plan – Executive Awards In November 2022, the Company issued two types of executive awards (the “Annual Awards” and “Launch Awards”) under the 2022 RSU Plan to certain of our executive officers (collectively, the “Executive Awards”). The Executive Awards entitle participants to a fixed amount of cash or, upon the occurrence of a change in control or an initial public offering, ordinary shares of the Company at the discretion of the remuneration committee. As of September 30, 2023, awards are expected to be settled in ordinary shares at the vesting date. In connection with the IPO, all Executive Awards previously issued under the 2022 RSU Plan were modified to be settled in ordinary shares of the Company. Given the awards were no longer expected to be settled in cash but rather expected to be settled in ordinary shares based on the initial public offering price of $51.00 per ADS, the modification resulted in a change to the classification of the Executive Awards from liability-classified to equity-classified. The Company accounted for this change as a modification in accordance with ASC 718, Compensation—Stock Compensation. As a result of the modification, the Company reclassified $9.1 million and $20.2 million in current portion of accrued compensation and benefits and share-based compensation and non-current portion of accrued compensation and share-based compensation, respectively, to additional paid-in capital on the Condensed Consolidated Balance Sheets. The modification resulted in an issuance of 1,875,202 RSUs equal to the fixed monetary amount issued to all Executive Awards outstanding under the 2022 RSU Plan as of that date. Upon the occurrence of the IPO, the Company recognized accelerated share-based compensation cost of $9.8 million, for which the service-based vesting condition was satisfied or partially satisfied, at the modification date which affected 14 employees. The table below identifies the Executive Awards activity under the 2022 RSU Plan:
(1) Awards and weighted average grant date per share exclude shares related to Annual Awards that currently have no grant date as the future performance objectives have not yet been defined and/or communicated to participants of the plan. For periods presented prior to the IPO, the average grant date fair value per award represents the modification fair value at IPO. For the three and six months ended September 30, 2023, the Company recognized $20.3 million and $33.7 million, respectively, of share-based compensation cost and $(1.5) million and $1.0 million, respectively, of income tax (expense) benefit in connection with the Executive Awards granted under the 2022 RSU Plan. For the six months ended September 30, 2023, Executive Awards vested and paid were $25.0 million due to the normal course of vesting for liability-classified awards. As of September 30, 2023, fully vested equity-classified awards were not yet settled in ordinary shares of the Company. In October 2023, all fully vested equity-classified awards were settled in ordinary shares of the Company. As of September 30, 2023, $40.9 million was recognized in additional paid-in capital. As of March 31, 2023, the Company recognized $32.2 million as a liability for awards that are now remeasured and reclassified from liability to equity comprising $18.4 million and $13.8 million in accrued compensation and benefits and share-based compensation and non-current portion of accrued compensation and share-based compensation on the Condensed Consolidated Balance Sheets, respectively. As of September 30, 2023, there was $54.7 million of total unrecognized compensation cost related to equity-classified Executive Awards expected to be recognized over a weighted-average period of 1.3 years. Share-based Compensation Cost A summary of share-based compensation cost recognized on the Condensed Consolidated Income Statements is as follows:
No share-based compensation cost was capitalized for the three and six months ended September 30, 2023 and 2022.
|
Income Taxes |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9 - Income Taxes For the three months ended September 30, 2023 and 2022, income tax (expense) benefit was $9.0 million and $(38.0) million, respectively. For the six months ended September 30, 2023 and 2022, income tax (expense) benefit was $(13.0) million and $(99.0) million, respectively. For the three months ended September 30, 2023 and 2022, the income tax (expense) benefit as a percentage of income before taxes was 7.6% and (25.0)%, respectively. For the six months ended September 30, 2023 and 2022, the income tax (expense) benefit as a percentage of income before taxes was (162.5)% and (22.6)%, respectively. The effective rate increased compared to the same period last year primarily due to the impact of the incremental share-based payment costs arising in connection with the IPO (see Note 8 - Share-based Compensation, for further details) in the three months ended September 30, 2023, part of which does not give rise to a tax benefit due to irrecoverable withholding tax. For the three months ended September 30, 2023 and 2022, the effective rate differed from the United Kingdom statutory rate of 25% and 19%, respectively, primarily due to patent box, research and development tax credits and share-based compensation cost. For the six months ended September 30, 2023 and 2022, the effective tax rates differed from the United Kingdom statutory rate of 25% and 19%, respectively, primarily due to patent box, research and development tax credits and share-based compensation cost.
|
Net Income (Loss) Per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | 10 - Net Income (Loss) Per Share The following table presents a reconciliation of basic and diluted earnings per share computations for all periods presented:
(1) For the three and six months ended September 30, 2023, includes weighted average ordinary shares for vested securities without restrictions that were not issued and outstanding as of the end of the reporting period. The following table presents securities that were excluded from the computation of diluted net income (loss) per ordinary share because the effect of including the securities would have been anti-dilutive:
(1)RSUs exclude certain awards which require cash settlement and do not allow for share settlement; however, for reporting periods prior to the IPO, RSUs include securities where change in control or the IPO was not probable to occur, and settlement was expected in cash upon the passage of time. (2)Executive awards include amounts associated with the Annual Awards and Launch Awards. Prior to the IPO, these awards entitled participants to fixed monetary amounts where the quantity of securities was calculated based on the total fixed monetary amount divided by the closing average market price of ordinary shares. Upon the IPO, these awards entitle participants to a fixed number of ordinary shares calculated based on the total fixed monetary amount divided by the IPO price.
|
Commitments and Contingencies |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11 - Commitments and Contingencies Litigation From time to time, the Company is party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company accrues for loss contingencies when it is both probable that it will incur the loss and when the Company can reasonably estimate the amount of the loss or range of loss. In the fiscal year ended March 31, 2023, the Company recorded a loss contingency related to an offer made by the Company to pay $40 million in respect of ongoing contractual disputes between the Company and a non-top five customer. That particular customer’s claims arose from a contract dating to a very early period in the Company’s history and that contract is both non-standard and significantly dissimilar from other customers’ contracts. On September 15, 2023, the Company reached an agreement, in which both parties resolved all contractual disputes and reached a mutual understanding of the contractual rights and obligations under the licensing arrangement. As a result, no amount of cash was paid by the Company to the customer with such agreement. The settlement agreement provided alignment of the rights and obligations which were previously agreed with the non-top five customer. During the three and six months ended September 30, 2023, the liability for litigation was reversed resulting in a reduction of selling, general and administrative by $40.0 million. No other material amounts related to litigation settlements were recognized in the three and six months ended September 30, 2023 and 2022. Kronos Guarantee In March 2022, a wholly owned United Kingdom subsidiary of SoftBank, Kronos I (UK) Limited (“Kronos”), was created for the purpose of SoftBank arranging a non-recourse facility agreement (the “Facility Agreement”) with J.P. Morgan SE as Facility Agent to be secured by its equity interest in the Company. SoftBank pledged its ownership interest in the Company by transferring such interest to an entity that sits between Kronos and the Company, and SoftBank has no further obligation under the Facility Agreement. In September 2023, prior to the closing of the Company’s initial public offering, SoftBank paid the Facility Agreement and the Company’s Undertaking and Guarantee were terminated. Under the Facility Agreement, the lenders initially were committed to make up to $8.0 billion of funds available to Kronos under a “Bridge Facility” and “Term Facility”, together with the Bridge Facility, (the “Facility”). In March 2022, the Term Facility was funded for $7.1 billion and the Bridge Facility was funded for $0.9 billion. In June 2022, an amendment was executed which expanded the total commitment of the Term Facility to $8.5 billion via an additional term facility of $1.4 billion, $0.9 billion of which was used to repay the Bridge Facility in full with the remaining $0.5 billion representing incremental debt. The Term Facility matures on the earlier of two years after Kronos draws upon the facility or three months after the effective date of a public listing of the Company’s ordinary shares. Beyond the pledge of the interest in the Company as collateral for the Facility, in March 2022, the Company entered into the Arm Undertaking (the “Undertaking”) to confirm and agree to comply with certain terms of the Facility Agreement (including operational restrictions) and a springing guarantee and indemnity agreement (the “Guarantee”) with J.P. Morgan SE. The Guarantee commences upon an “Arm Guarantee Trigger Event,” which includes a public listing of the Company’s ordinary shares not occurring within 18 months of the closing date of the Facility or any public announcement or notice to lenders that a listing will not be undertaken and failure by the Company or its subsidiaries to comply with the obligations under the Undertaking. Until an Arm Guarantee Trigger Event occurs, the Company is not obligated to perform or make payment on the obligations of Kronos. Once an Arm Guarantee Trigger Event has occurred, the Company guarantees all overdue payments under the Facility Agreement. The total commitment is $8.5 billion and would only become a potential obligation to the Company if Kronos were to default on any such obligation, as Kronos remains the primary obligor under the Facility Agreement even after an Arm Guarantee Trigger Event. Upon default, the lenders can satisfy their claim either through the collateral of Kronos’ interest in the Company or through the Company servicing the debt and meeting payment obligations pursuant to the Guarantee. SoftBank as the owner of Kronos may avoid default by restructuring the Facility Agreement, or otherwise monetizing the collateral for the necessary liquidity to meet payment obligations under the Facility Agreement. The Company believes that the likelihood of assuming the debt obligations under the Guarantee is remote due to Kronos’ significant collateralization of the obligations under the Facility Agreement and that SoftBank will avoid a default by Kronos for which the obligations would become enforceable against the Company. In August 2023, the Kronos Guarantee was amended to extend the Arm Guarantee Trigger Event period in relation to a public listing of the Company’s ordinary shares not occurring, from 18 to 21 months, of the closing date of the Facility or any public announcement or notice to lenders that a listing will not be undertaken and failure by the Company or its subsidiaries to comply with the obligations under the Undertaking. Arduino Guarantee The Company is guarantor for a $5.3 million credit facility available to Arduino. The guaranty expires in January 2024. As of September 30, 2023 and March 31, 2023, no claims have been made against the guaranty.
|
Related Party Transactions |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12 - Related Party Transactions Arm China and Acetone Limited Following the restructuring of its direct investment in Arm Technology (China) Co. Limited (“Arm China”) in the fiscal year ended March 31, 2022, the Company has a 10% non-voting ownership interest in Acetone Limited, whose primary asset is a 48.18% interest in Arm China. The Company has no direct material transactions with Acetone Limited. For the three months ended September 30, 2023 and 2022, the Company recognized revenue of $162.0 million and $159.7 million, respectively, and recognized expenses of $17.5 million and $18.5 million, respectively, under a service share arrangement with Arm China. For the six months ended September 30, 2023 and 2022, the Company recognized revenue of $300.9 million and $325.3 million, respectively, and recognized expenses of $33.6 million and $31.7 million, respectively, under a service share arrangement with Arm China. The Company leases certain assets to Arm China and rental income was immaterial for all periods presented herein. As of September 30, 2023, the Company had a net receivable of $258.4 million ($269.6 million receivable less $11.2 million payable) from Arm China. As of September 30, 2023, the Company had contract liabilities of $89.0 million relating to Arm China. As of March 31, 2023, the Company had a net receivable of $386.9 million ($400.7 million receivable less $13.9 million payable) from Arm China. As of March 31, 2023, the Company had contract liabilities of $103.4 million. See Note 3 - Equity Investments, for further details of the impact of Acetone Limited on the Company’s results. Other Entities Related by Virtue of Common Control in SoftBank The Company also had other revenue and expense transactions, along with receivable and balances with other entities by virtue of common control in SoftBank. For the three months ended September 30, 2023 and 2022, the Company recognized revenue of $0.4 million and $0.2 million, respectively. For the six months ended September 30, 2023 and 2022, the Company recognized revenue of $0.6 million and $0.6 million, respectively. As of September 30, 2023, the Company had accounts receivable and contract liabilities of $0.2 million and $1.6 million, respectively. In August 2023, the Company distributed its receivable related to the Company’s sale of Pelion IOT Limited and its subsidiaries (“IoTP”) to the majority shareholder of the Company, which represented a non-cash distribution of $12.0 million. As of March 31, 2023, the Company had accounts receivable, other receivables and contract liabilities of $0.5 million, $12.0 million, and $1.6 million, respectively. The Company also had immaterial lessee leases with a certain related party by virtue of common control in SoftBank. SoftBank Group Facility In March 2022, Kronos, an entity under common control of SoftBank, entered into the Facility Agreement which is secured by its interest in the Company. The Company also entered into the Undertaking to confirm and agree to comply with the terms of the Facility Agreement and a Guarantee of the obligations under the Facility Agreement owed by Kronos. Under the terms of the Guarantee, upon an Arm Guarantee Trigger Event, the Guarantee springs into effect, such that any future payment default by Kronos following such date may require performance by the Company if not settled by use of the share collateral or otherwise restructured. In September 2023, Softbank settled the Facility Agreement and the Company’s Undertaking and Guarantee were terminated. See Note 11 - Commitments and Contingencies, for further details on this Guarantee. Other Equity Investments The Company has revenue transactions, along with receivable, contract asset and contract liability balances for certain other equity investees, for which the Company has significant influence or, for investments in limited partnerships or certain limited liability companies that maintain a specific ownership account for each investor, and has more than virtually no influence (i.e., at least 3% to 5% ownership). For the three months ended September 30, 2023 and 2022, the Company recognized revenue of $0.1 million and $1.1 million, respectively. For the six months ended September 30, 2023 and 2022, the Company recognized revenue of $1.1 million and $2.7 million, respectively. As of September 30, 2023, the Company had contract assets and contract liabilities of $2.7 million and $32.3 million, respectively. As of March 31, 2023, the Company had accounts receivable, contract assets and contract liabilities of $0.5 million, $8.7 million and $30.2 million, respectively. For the three months ended September 30, 2023, Company recognized aggregate distributions, dividends and returns of capital from certain equity investments of $2.1 million. No distributions, dividends, or returns of capital were recognized in the three months ended September 30, 2022. For the six months ended September 30, 2023 and 2022, Company recognized aggregate distributions, dividends and returns of capital from certain equity investments of $2.4 million and $0.3 million, respectively. Linaro Limited Linaro Limited (“Linaro”) is a not-for-profit entity for which the Company is a member and exhibits significant influence. For the three months ended September 30, 2023 and 2022, the Company incurred subscription costs of $2.4 million and $2.2 million, respectively, from Linaro. For the six months ended September 30, 2023 and 2022, the Company incurred subscription costs of $4.7 million and $4.2 million, respectively, from Linaro. As of September 30, 2023 and March 31, 2023, $0.7 million and $0.3 million was recorded in other current liabilities on the Condensed Consolidated Balance Sheets, respectively. In February 2023, the Company entered into an agreement with Linaro to sell certain net assets of the Company that meets the definition of a business in exchange for cash consideration of $4.0 million to be paid in equal annual installments over five years. As of September 30, 2023 and March 31, 2023, total purchase consideration remained unpaid and was recorded in prepaid expenses and other current assets and other non-current assets. Loans to Related Parties As of September 30, 2023 and March 31, 2023, the Company had a loan receivable of $15.9 million and $19.2 million, respectively with Arduino, a related party, which was subject to impairment considerations. The Company also has an outstanding loan receivable of $3.0 million with Cerfe Labs, Inc., a related party which was fully impaired as of March 31, 2023. See Note 4 - Financial Instruments, for further information regarding this loan. As of September 30, 2023 and March 31, 2023, the outstanding balance of the convertible promissory note with Ampere, a related party, was $31.6 million and $30.9 million, respectively. The Company’s maximum exposure to loss are the amounts invested in, and advanced to, Ampere as of September 30, 2023. Other relationships The Company engaged Raine Securities LLC, a related party, for certain advisory services in connection with the IPO. For the three and six months ended September 30, 2023, the Company incurred $10.7 million in expenses, of which $5.2 million was reimbursed by the underwriters in the IPO. For the three and six months ended September 30, 2022, under a separate agreement, the Company incurred $0.6 million and $1.2 million in expenses, respectively. As of September 30, 2023 and March 31, 2023, the Company recorded other current liabilities of $5.5 million and $2.5 million, respectively.
|
Subsequent Events |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13 - Subsequent Events As of October 25, 2023, the Company has determined that the market condition for the 2019 AEP has been met and, therefore, will vest at 100%.
|
Description of Business and Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the fiscal year ended March 31, 2023, in the IPO Prospectus filed on September 14, 2023 with the SEC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring adjustments, which are necessary for the fair statement of the unaudited condensed consolidated balance sheets, income statements, statements of comprehensive income, shareholders’ equity and cash flows for these interim periods. The results for the interim periods are not necessarily indicative of results for the full fiscal year.
|
Principles of Consolidation | Principles of Consolidation The accompanying financial statements include the accounts of the Company, its wholly owned subsidiaries and the Arm Employee Benefit Trust (the “EBT”). All intercompany balances and transactions have been eliminated in consolidation. The financial statements consolidate all of the Company’s affiliates, and the entities where the Company holds a controlling financial interest, because the Company holds a majority voting interest. The Company reevaluates whether there is a controlling financial interest in all entities when rights and interests change.
|
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant items subject to such estimates include, but are not limited to, revenue recognition, allowance for expected credit losses, income taxes, share-based compensation, impairment considerations for long-lived assets, fair value estimates and impairment for investments. The Company evaluates these estimates on an ongoing basis and revises estimates as circumstances change. The Company bases its estimates on historical experience, anticipated results, trends, and other various assumptions that it believes are reasonable. Actual results could differ materially from the Company’s estimates.
|
Derivative Financial Instruments and Hedge Activities and Currency Exchange Contracts | Derivative Financial Instruments and Hedge Activities The Company uses derivative financial instruments, specifically foreign currency forward contracts, to mitigate exposure from certain foreign currency risk. Certain forecasted transactions, specifically British Pound Sterling (“GBP”) denominated cash flows in the form of payroll and selling, general and administrative expenses are exposed to foreign currency risk. The Company monitors foreign currency exposures on a monthly basis to maximize the economic effectiveness of foreign currency hedge positions. No derivatives were designated hedges prior to July 2022. All derivatives are recorded at fair value as either an asset or liability. For derivatives not designated as hedges, adjustments to reflect changes in the fair value of the derivatives are included in earnings in other non-operating income (loss), net on the Condensed Consolidated Income Statements. In July 2022, all foreign currency forward contracts were designated as cash flow hedges in designated hedging relationships with the forecasted foreign denominated cash flows as the hedged transactions. The maximum length of time over which the Company is hedging its exposure to the variability in future foreign denominated cash flows is one year. For cash flow hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the net change in fair value of the effective portion of designated cash flow hedges on the Condensed Consolidated Statements of Comprehensive Income, and subsequently recognized in research and development and selling, general and administrative expenses on the Condensed Consolidated Income Statements when the hedged transaction affects earnings. The Company classifies all derivative assets and liabilities for designated and non-designated derivatives in prepaid expenses and other current assets and other current liabilities on the Condensed Consolidated Balance Sheets. The Company classifies cash flows from the settlement of effective cash flow hedges for designated and non-designated derivatives in the same category as the cash flows from the related hedged items in operating activities on the Condensed Consolidated Statements of Cash Flows. The foreign currency forward contracts are classified under Level 2 of the fair value hierarchy. See Note 6 - Fair Value. Currency Exchange ContractsFor currency exchange contracts, these contracts are valued at the present value of future cash flows based on forward exchange rates at the balance sheet date.
|
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no recent accounting standard updates that are material or potentially material to the Company.
|
Revenue Recognition | Revenue Recognition Revenue for the Company’s major product offerings consists of the following: License and Other Revenue •Intellectual property license — The Company generally licenses IP under non-exclusive license agreements that provide usage rights for specific applications for a finite or perpetual term. These licenses are made available electronically to address the customer-specific business requirements. These arrangements generally have distinct performance obligations that consist of transferring the licensed IPs, version extensions of architecture IP or releases of IPs, and support services. Support services consist of a stand-ready obligation to provide technical support, patches, and bug fixes over the support term. Revenue allocated to the IP license is recognized at a point in time upon the delivery or beginning of license term, whichever is later. Revenue allocated to distinct version extensions of architecture IP or releases of IP, excluding when-and-if-available minor updates over support term, are recognized at a point in time upon the delivery or beginning of license term, whichever is later. Certain license agreements provide customers with the right to access a library of current and future IPs on an unlimited basis over the contractual period depending on the terms of the applicable contract. These licensing arrangements represent stand-ready obligations in that the delivery of the underlying IPs is within the control of the customer and the extent of use in any given period does not diminish the remaining performance obligations. The contract consideration related to these arrangements is recognized ratably over the term of the contract in line with when the control of the performance obligations is transferred. •Software sales, including development systems — Sales of software, including development systems, which are not specifically designed for a given license (such as off-the-shelf software), are recognized upon delivery when control has been transferred and customer can begin to use and benefit from the license. •Professional services — Services (such as training and professional and design services) that the Company provides, which are not essential to the functionality of the IP, are separately stated and priced in the contract and accounted for separately. Training revenue is recognized as services are performed. Revenue from professional and design services are recognized over time using the input method based on engineering labor hours expended to date relative to the estimated total effort required. For such professional and design services, the Company has an enforceable right to payment for performance completed to date, which includes a reasonable profit margin and the performance of such services do not create an asset with an alternative use. •Support and maintenance — Support and maintenance is a stand-ready obligation to the customer that is both provided and consumed simultaneously. Revenue is recognized on a straight-line basis over the period for which support and maintenance is contractually agreed pursuant to the license. Royalty Revenue For certain IP license agreements, royalties are collected on products that incorporate the Company’s IP. Royalties are recognized on an accrual basis in the quarter in which the customer ships their products, based on the Company’s technology that it contains. The accrual is estimated using trend analysis based on market and sales data as well as customer specific financial information. As a result of estimating the amount of royalty revenue accrual in the period in which the customer sales occur using estimates based on sales trends and judgment for several key attributes, including industry estimates of expected shipments, the percentage of markets using our products, and average selling price. Adjustments to revenue are required in subsequent periods to reflect changes in estimates as new information becomes available, primarily resulting from actual amounts subsequently reported by the licensees. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional.Remaining Performance Obligations Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The Company has elected to exclude potential future royalty receipts from the disclosure of remaining performance obligations. In certain arrangements, the Company’s right to consideration may not correspond directly with the performance of obligations. Revenue recognition occurs upon delivery or beginning of license term, whichever is later. Accordingly, the analysis between time bands below has been estimated, but the final timing may differ from these estimates. In the absence of sufficient information, where the timing of satisfaction of the remaining performance obligations is dependent on a customer’s action, the transaction price allocated to such performance obligation is included in the outer-year time band unless contract or option expiration aligns with an earlier period or category.
|
Equity Method Investments | Equity Method Investments The Company elected the fair value option in accordance with the guidance in ASC 825, Financial Instruments (“ASC 825”) for its investments in Acetone Limited and Ampere. The Company initially computed the fair value for its investments consistent with the methodology and assumptions that market participants would use in their estimates of fair value with the assistance of a third-party valuation specialist or based on inputs from the investee. The fair value computation is updated on a quarterly basis. The investments are classified within Level 3 in the fair value hierarchy because the Company estimates the fair value of the investments using the (i) the market-calibration approach based on the guideline public company method, (ii) subject to availability of sufficient information, the income approach based on the discounted cash flow method, or (iii) the probability-weighted, expected return (“PWER”) approach. The market-calibration approach considers valuation multiples that are calibrated to the valuation as of the prior valuation date (i.e., quarterly) based on: (a) changes in the broader market or industry; (b) changes in the guideline public companies; and (c) changes in the company’s operating and financial performance. The fair value computation under this approach includes a key assumption for the range of valuation multiples (i.e., enterprise value or revenue), which requires significant professional judgment by the valuation specialist and is based on observable inputs (e.g., market data) and unobservable inputs (e.g., market participant assumptions). The PWER approach is based on discrete future exit scenarios to determine the value of various equity securities. Under the PWER approach, the share value today is based on the probability-weighted, present value of expected future distributions, taking into account the rights and preferences of each debt and equity class. The Company considers an initial public offering scenario, a sale scenario, and a scenario assuming continued operation as a private entity for future exit scenarios. The fair value computation under this approach includes key assumptions for time to liquidity outcomes, discounted rate, and present value factors.
|
Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | A summary of the Company’s disaggregated revenue is as follows:
(1) Includes over-time revenue of $30 million and $24 million and point-in-time revenue of $358 million and $164 million for the three months ended September 30, 2023 and 2022, respectively.
(2) Includes over-time revenue of $47 million and $48 million and point-in-time revenue of $616 million and $398 million for the six months ended September 30, 2023 and 2022, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Geographic Areas | The following table summarizes information pertaining to revenue from customers based on the principal headquarter address by geographic regions:
(1) “PRC” means the People’s Republic of China, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region, but excluding Taiwan.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | A summary of the components of accounts receivable, net is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable, Allowance for Credit Loss | A summary of the movement in the allowance for current expected credit losses is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Contract Liabilities | A reconciliation of the movement in contract liabilities is as follows:
|
Equity Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments | A summary of the components of equity investments is as follows:
Income (loss) from equity investments, net is as follows:
(1)Includes equity method investments where the Company elected the fair value option, including those under the NAV practical expedient, along with investments accounted for under the equity method.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | The components of gains (losses) which primarily include unrealized gains and losses on non-marketable securities inclusive of those measured under the NAV practical expedient are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gain (Loss) on Investments | The components of gains (losses) which primarily include unrealized gains and losses on non-marketable securities inclusive of those measured under the NAV practical expedient are as follows:
|
Financial Instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Other Receivables Carried at Amortized Cost | Loans and other receivables carried at amortized cost is as follows:
|
Derivatives (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table presents the notional amounts of the Company’s outstanding derivative instruments:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of the Company’s outstanding derivative instruments:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table presents net gains (losses) on foreign currency forward contracts designated as cash flow hedges:
(1) All amounts reported in accumulated other comprehensive income at the reporting date are expected to be reclassified into earnings within the next 12 months.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | The following table presents net gains (losses) on derivatives not designated as hedging instruments recorded in non-operating income (loss), net on the Condensed Consolidated Income Statements:
|
Fair Value (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company’s fair value hierarchy for the liability measured and recognized at fair value on a recurring basis:
The following table presents the Company’s fair value hierarchy for assets measured and recognized at fair value, excluding investments where the NAV practical expedient has been elected on a recurring basis:
(1)Short-term investments represent term deposits with banks with a maturity between 3 and 12 months. (2)In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize changes in the fair value, along with other activity associated with the Company’s Level 3 financial assets and liabilities: Equity Method Investments
Convertible Loans Receivable
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques | The following tables provide quantitative information related to certain key assumptions utilized in the valuation of equity method investments accounted for under the fair value option:
|
Share-based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The table below identifies the RSU activity under the 2019 AEP:
(1)As of March 31, 2023, 2019 AEP outstanding awards were liability-classified with a weighted average fair value per RSUs of $23.33. For periods presented prior to the IPO, the average grant date fair value per RSU represents the modification fair value at IPO. The table below identifies the RSU activity under the 2019 EIP:
(1)As of March 31, 2023, 2019 EIP outstanding awards were liability-classified with a weighted average fair value per RSUs of $37.43. For periods presented prior to the IPO, the average grant date fair value per RSU represents the modification fair value at IPO. The table below identifies the All Employee Awards activity under the 2022 RSU Plan:
The table below identifies the Executive Awards activity under the 2022 RSU Plan:
(1) Awards and weighted average grant date per share exclude shares related to Annual Awards that currently have no grant date as the future performance objectives have not yet been defined and/or communicated to participants of the plan. For periods presented prior to the IPO, the average grant date fair value per award represents the modification fair value at IPO.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | Share-based Compensation Cost A summary of share-based compensation cost recognized on the Condensed Consolidated Income Statements is as follows:
|
Net Income (Loss) Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of basic and diluted earnings per share computations for all periods presented:
(1) For the three and six months ended September 30, 2023, includes weighted average ordinary shares for vested securities without restrictions that were not issued and outstanding as of the end of the reporting period.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents securities that were excluded from the computation of diluted net income (loss) per ordinary share because the effect of including the securities would have been anti-dilutive:
(1)RSUs exclude certain awards which require cash settlement and do not allow for share settlement; however, for reporting periods prior to the IPO, RSUs include securities where change in control or the IPO was not probable to occur, and settlement was expected in cash upon the passage of time. (2)Executive awards include amounts associated with the Annual Awards and Launch Awards. Prior to the IPO, these awards entitled participants to fixed monetary amounts where the quantity of securities was calculated based on the total fixed monetary amount divided by the closing average market price of ordinary shares. Upon the IPO, these awards entitle participants to a fixed number of ordinary shares calculated based on the total fixed monetary amount divided by the IPO price.
|
Description of Business and Summary of Significant Accounting Policies (Details) |
Sep. 18, 2023
$ / shares
shares
|
---|---|
IPO | |
Subsidiary, Sale of Stock [Line Items] | |
Shares issued in transaction (in shares) | 102,500,000 |
Sale of stock (in dollars per share) | $ / shares | $ 51 |
Over-Allotment Option | |
Subsidiary, Sale of Stock [Line Items] | |
Shares issued in transaction (in shares) | 7,000,000 |
Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 806.0 | $ 630.0 | $ 1,481.0 | $ 1,322.0 |
Over-time revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 30.0 | 24.0 | 47.0 | 48.0 |
Point-in-time revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 358.0 | 164.0 | 616.0 | 398.0 |
External Customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 644.0 | 469.0 | 1,179.0 | 993.0 |
Related Parties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 162.0 | 161.0 | 302.0 | 329.0 |
License and Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 388.0 | 188.0 | 663.0 | 446.0 |
License and Other Revenue | External Customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 294.0 | 95.0 | 474.0 | 242.0 |
License and Other Revenue | Related Parties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 94.0 | 93.0 | 189.0 | 204.0 |
Royalty Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 418.0 | 442.0 | 818.0 | 876.0 |
Royalty Revenue | External Customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 350.0 | 374.0 | 705.0 | 751.0 |
Royalty Revenue | Related Parties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 68.0 | $ 68.0 | $ 113.0 | $ 125.0 |
Revenue - Schedule of Revenue by Geographical Location (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 806 | $ 630 | $ 1,481 | $ 1,322 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 331 | 243 | 623 | 508 |
PRC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 178 | 162 | 319 | 330 |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 166 | 97 | 281 | 197 |
Republic of Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 62 | 53 | 107 | 114 |
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 69 | $ 75 | $ 151 | $ 173 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Disaggregation of Revenue [Line Items] | |||||
Increase in contract with customer, asset | $ 254.1 | $ 278.9 | |||
Contract assets, transfer to accounts receivable | $ (250.7) | (192.5) | |||
Performance obligation satisfied in previous period | $ 421.5 | $ 447.0 | $ 820.8 | $ 894.5 | |
Two Largest Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 36.00% | 34.00% | |||
Largest Customer | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 20.00% | 25.00% | 20.00% | 25.00% | |
Largest Customer | Accounts Receivable | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 40.00% | 31.00% | |||
Second Largest Customer | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 16.00% | 13.00% | 14.00% | 12.00% | |
Second Largest Customer | Accounts Receivable | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 13.00% | ||||
Three Largest Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 48.00% | 48.00% | |||
Third Largest Customer | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk | 10.00% | 11.00% |
Revenue - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross receivables | $ 867 | $ 1,002 |
Allowance for current expected credit losses | (3) | (3) |
Total accounts receivables, net | 864 | 999 |
Trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross receivables | 486 | 625 |
Royalty receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total gross receivables | $ 381 | $ 377 |
Revenue - Schedule of Accounts Receivable, Credit Loss (Details) $ in Millions |
6 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance as of March 31, 2023 | $ 3 |
Additional provision | 0 |
Amounts written off during the period as uncollectible | 0 |
Balance as of September 30, 2023 | $ 3 |
Revenue - Schedule of Contract Liabilities (Details) $ in Millions |
6 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Contract With Customers, Liability [Roll Forward] | |
Current Contract Liabilities | $ 293 |
Non- Current Contract Liabilities | 807 |
Balance as of March 31, 2023 | 1,100 |
Customer prepayment and billing in advance of performance | 117 |
Revenue recognized in the period that was included in the contract liability balance at the beginning of the period | (116) |
Revenue recognized in the period that was included in the contract liability balance during the period | (73) |
Balance as of September 30, 2023 | 1,028 |
Current portion of contract liabilities | 288 |
Non-current portion of contract liabilities | $ 740 |
Revenue - Remaining Performance Obligations (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, amount | $ 2,414.5 |
Non-Cancellable And Non-Refundable Committed Funds | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, amount | $ 17.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 28.00% |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 21.00% |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period |
Equity Investments - Schedule of Equity Investments (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Investments, All Other Investments [Abstract] | ||
Equity method investments under fair value option | $ 578 | $ 592 |
Equity method investments under equity method | 9 | 9 |
Non-marketable equity securities | 138 | 122 |
Total equity investments | $ 725 | $ 723 |
Equity Investments - Schedule of Income (Loss) from Equity Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Investments, All Other Investments [Abstract] | ||||
Equity method investments | $ (4) | $ (57) | $ (14) | $ (80) |
Non-marketable equity securities (includes NAV) | (1) | (3) | 2 | 6 |
Total loss from equity investments, net | $ (5) | $ (60) | $ (12) | $ (74) |
Equity Investments - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2023 |
|
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments under fair value option | $ 578,000,000 | $ 578,000,000 | $ 592,000,000 | |||
Loss from equity investments | 4,000,000 | $ 57,000,000 | 14,000,000 | $ 80,000,000 | ||
Equity method investments under equity method | 9,000,000 | 9,000,000 | 9,000,000 | |||
Other non-current assets | 211,000,000 | 211,000,000 | 202,000,000 | |||
Non-marketable equity securities | 138,000,000 | 138,000,000 | 122,000,000 | |||
(Losses) gains from non-marketable equity securities | (1,000,000) | (3,000,000) | 2,000,000 | 6,000,000 | ||
Payments to acquire non-marketable preferred stock | 11,000,000 | 3,000,000 | ||||
Dividends from equity investments | 1,800,000 | 0 | 2,100,000 | 300,000 | ||
Financial commitments to investees, off balance sheet | 21,300,000 | 21,300,000 | 22,100,000 | |||
Kigen (UK) Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire non-marketable preferred stock | $ 10,000,000 | |||||
SoftBank Vision Fund | Kigen (UK) Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 85.00% | |||||
Acetone Limited | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Loss from equity investments | 6,000,000 | 13,200,000 | 15,600,000 | 35,200,000 | ||
Equity method investments under equity method | 76,800,000 | 76,800,000 | 92,400,000 | |||
Ampere | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Loss from equity investments | 0 | 44,100,000 | 0 | 44,100,000 | ||
Equity method investments under equity method | 389,800,000 | 389,800,000 | 389,800,000 | |||
Fair Value Measured at Net Asset Value Per Share | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments under fair value option | 111,400,000 | 111,400,000 | 109,400,000 | |||
Loss from equity investments | (2,100,000) | 0 | (1,600,000) | 100,000 | ||
Non-marketable equity securities | 20,300,000 | 20,300,000 | $ 18,000,000 | |||
(Losses) gains from non-marketable equity securities | $ (300,000) | $ (3,200,000) | $ 2,200,000 | $ (6,900,000) |
Equity Investments - Schedule of Gains (Losses) on Non-Marketable Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Investments, All Other Investments [Abstract] | ||||
Observable price adjustments on non-marketable equity securities (includes NAV) | $ (1) | $ (3) | $ 2 | $ 7 |
Impairment of non-marketable equity securities | 0 | 0 | 0 | (1) |
Sale of non-marketable equity securities | 0 | 0 | 0 | 0 |
Total income (loss) from equity investments, net | $ (1) | $ (3) | $ 2 | $ 6 |
Financial Instruments - Loans and Other Receivables Carried at Amortized Cost (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for current expected credit losses | $ (19) | $ (22) |
Loans and other receivables carried at amortized cost, net | 9 | 21 |
Loans receivable | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loan and other receivables carried at amortized cost | 22 | 25 |
Other receivables | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loan and other receivables carried at amortized cost | $ 6 | $ 18 |
Financial Instruments - Narrative (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|---|
Aug. 31, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2023 |
Dec. 31, 2021 |
|
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Impaired loan receivable | $ 19.0 | $ 19.0 | $ 22.0 | ||||
Level 3 | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Convertible loans receivable | 32.0 | 32.0 | 31.0 | ||||
Convertible loans receivable | Level 3 | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Fair value losses recognized in the income statement | 1.0 | $ 1.0 | 1.0 | $ 1.0 | |||
Loans receivable | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loan receivable | 22.0 | 22.0 | 25.0 | ||||
Other receivables | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loan receivable | 6.0 | 6.0 | 18.0 | ||||
Arduino | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Impaired loan receivable | 15.9 | 15.9 | |||||
Allia Limited | Loans receivable | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loan receivable | $ 3.1 | $ 3.1 | $ 3.1 | ||||
Loan term | 5 years | 5 years | 5 years | ||||
Cerfe Labs, Inc. | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Impaired loan receivable | $ 3.1 | $ 3.1 | |||||
Cerfe Labs, Inc. | Loans receivable | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loan receivable | $ 3.0 | ||||||
Loan term | 4 years | 4 years | 4 years | ||||
IoTP | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Non-cash distribution, disposal of investment | $ 12.0 | ||||||
IoTP | Other receivables | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loan receivable | $ 12.0 | ||||||
Ampere | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Convertible loans receivable | $ 29.0 | ||||||
Ampere | Convertible loans receivable | Level 3 | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Fair value losses recognized in the income statement | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Derivatives - Narrative (Details) £ in Millions, $ in Millions |
Sep. 30, 2023
GBP (£)
|
Sep. 30, 2023
USD ($)
|
Mar. 31, 2023
GBP (£)
|
Mar. 31, 2023
USD ($)
|
---|---|---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Derivative, notional amount | £ | £ 250.0 | £ 340.0 | ||
Derivative, fair value | $ | $ (7.7) | $ 9.3 |
Derivatives - Notional Amounts (Details) £ in Millions, $ in Millions |
Sep. 30, 2023
GBP (£)
|
Sep. 30, 2023
USD ($)
|
Mar. 31, 2023
GBP (£)
|
Mar. 31, 2023
USD ($)
|
---|---|---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | £ | £ 250.0 | £ 340.0 | ||
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | $ | $ 313 | $ 411 |
Derivatives - Outstanding Derivative Instruments (Details) - Level 3 - USD ($) $ in Millions |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | $ 0 | $ 0 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 0 | 10 |
Derivative Liabilities | $ 8 | $ 1 |
Derivatives - Cash Flow Hedge Gains and Losses (Details) - Level 3 - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Consolidated Statements of Comprehensive Income: | ||||
Gains (losses) recognized in Accumulated other comprehensive income on cash flow hedge derivatives | $ (12) | $ (32) | $ (2) | $ (32) |
(Gains) losses reclassified from Accumulated other comprehensive income into income | (6) | 4 | (16) | 4 |
Tax benefit on cash flow hedges | 4 | 7 | 4 | 7 |
Net change of the effective portion of designated cash flow hedges | (14) | (21) | (14) | (21) |
Research and development | ||||
Consolidated Statements of Comprehensive Income: | ||||
(Gains) losses reclassified from Accumulated other comprehensive income into income | (3) | 2 | (9) | 2 |
Selling, general and administrative expenses | ||||
Consolidated Statements of Comprehensive Income: | ||||
(Gains) losses reclassified from Accumulated other comprehensive income into income | $ (3) | $ 2 | $ (7) | $ 2 |
Derivatives - Non-designated Hedging Instrument Gains (Losses) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Foreign currency forward contracts | $ 0 | $ 0 | $ 0 | $ (30) |
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | $ 800 | $ 661 |
Equity method investments under fair value option | 578 | 592 |
Fair Value, Recurring | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Foreign currency forward contracts | 8 | 1 |
Total financial liabilities | 8 | 1 |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 800 | 661 |
Equity method investments under fair value option | 466 | 482 |
Convertible loans receivable | 32 | 31 |
Foreign currency forward contracts | 0 | 10 |
Total financial assets | 1,298 | 1,184 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 800 | 661 |
Equity method investments under fair value option | 0 | 0 |
Convertible loans receivable | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total financial assets | 800 | 661 |
Level 1 | Fair Value, Recurring | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Foreign currency forward contracts | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Equity method investments under fair value option | 0 | 0 |
Convertible loans receivable | 0 | 0 |
Foreign currency forward contracts | 0 | 10 |
Total financial assets | 0 | 10 |
Level 2 | Fair Value, Recurring | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Foreign currency forward contracts | 8 | 1 |
Total financial liabilities | 8 | 1 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Equity method investments under fair value option | 466 | 482 |
Convertible loans receivable | 32 | 31 |
Foreign currency forward contracts | 0 | 0 |
Total financial assets | 498 | 513 |
Level 3 | Fair Value, Recurring | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Foreign currency forward contracts | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Fair Value - Schedule of Changes in Fair Value of Level 3 Financial Assets and Liabilities (Details) - Level 3 - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Equity Method Investments, Fair Value Option | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value of financial assets at the beginning of the period | $ 472 | $ 502 | $ 482 | $ 524 |
Additions, net of contributions from shareholders of the Company | 0 | 0 | 0 | 0 |
Fair value losses recognized in the income statement | (6) | (57) | (16) | (79) |
Distributions to shareholders of the Company | 0 | 0 | 0 | 0 |
Fair value at the end of the period | 466 | 445 | 466 | 445 |
Convertible loans receivable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value of financial assets at the beginning of the period | 31 | 29 | 31 | 29 |
Additions, net of contributions from shareholders of the Company | 0 | 0 | 0 | 0 |
Fair value losses recognized in the income statement | 1 | 1 | 1 | 1 |
Converted into equity | 0 | 0 | 0 | 0 |
Fair value at the end of the period | $ 32 | $ 30 | $ 32 | $ 30 |
Fair Value - Schedule of Equity Method Investments Key Assumptions (Details) $ in Millions |
Sep. 30, 2023
USD ($)
|
Mar. 31, 2023
USD ($)
|
---|---|---|
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 578 | $ 592 |
Level 3 | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 466 | $ 482 |
Level 3 | Valuation Technique, Probability-Weighted, Expected Return | Measurement Input, Probability Of IPO, Time To Future Exit Scenario | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments, fair value option, measurement input | 1 | 1 |
Level 3 | Valuation Technique, Probability-Weighted, Expected Return | Measurement Input, Discount Rate | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments, fair value option, measurement input | 0.186 | 0.186 |
Level 3 | Minimum | Valuation Technique, Discounted Cash Flow | LTM Revenue Multiple | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments, fair value option, measurement input | 1.5 | 1.5 |
Level 3 | Maximum | Valuation Technique, Discounted Cash Flow | LTM Revenue Multiple | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments, fair value option, measurement input | 1.7 | 1.7 |
Fair Value - Narrative (Details) $ in Millions |
Dec. 31, 2021
USD ($)
|
---|---|
Ampere | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Convertible promissory note | $ 29.0 |
Share-based Compensation - Narrative (Details) |
2 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 18, 2023
USD ($)
employee
$ / shares
shares
|
Jun. 30, 2022
employee
|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Sep. 30, 2022
USD ($)
|
Mar. 31, 2023
USD ($)
$ / shares
shares
|
|
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | $ 518,000,000 | $ 46,000,000 | $ 676,000,000 | $ 59,000,000 | ||||
Share-based compensation, tax benefit (expense) | 0 | |||||||
Additional paid-in capital | 1,979,000,000 | 1,979,000,000 | $ 1,216,000,000 | |||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | 19,000,000 | 19,000,000 | 152,000,000 | |||||
Accrued compensation and benefits and share-based compensation increase (decrease) | 159,000,000 | 159,000,000 | 589,000,000 | |||||
IPO | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Sale of stock (in dollars per share) | $ / shares | $ 51 | |||||||
Reclassification, Other Current Liabilities | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Additional paid-in capital | 18,400,000 | |||||||
Reclassification, Other Noncurrent Liabilities | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Additional paid-in capital | 13,800,000 | |||||||
2019 AEP | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | $ 217,200,000 | 340,900,000 | (6,000,000.0) | 421,600,000 | (1,400,000) | |||
Share-based compensation, tax benefit (expense) | 21,300,000 | (500,000) | 35,600,000 | 200,000 | ||||
Number of grantees affected by modification | employee | 5,251 | |||||||
2019 AEP | Reclassification, Other Noncurrent Liabilities | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Additional paid-in capital | $ 306,600,000 | |||||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | (306,600,000) | |||||||
2019 EIP | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | 4,100,000 | 5,400,000 | 4,100,000 | 6,200,000 | 3,500,000 | |||
Share-based compensation, tax benefit (expense) | (100,000) | 700,000 | 600,000 | |||||
Additional paid-in capital | 9,800,000 | 9,800,000 | ||||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | $ 3,600,000 | |||||||
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares | $ 37.43 | |||||||
Share-based awards, liability paid | 0 | 0 | 0 | 0 | ||||
2019 EIP | Reclassification, Other Noncurrent Liabilities | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Additional paid-in capital | 5,700,000 | |||||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | $ (5,700,000) | |||||||
Restricted Stock Units (RSUs) | 2019 AEP | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | $ 11,800,000 | |||||||
Additional paid-in capital | 527,700,000 | 527,700,000 | ||||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | $ 6,400,000 | $ 6,400,000 | $ 114,200,000 | |||||
Vesting period | 180 days | |||||||
Number of grantees affected by modification | employee | 435 | |||||||
Cash payment, conversion of percent held | 50.00% | |||||||
Incremental share-based compensation costs, retention option | $ 2,200,000 | |||||||
Expected to vest (in shares) | shares | 11,430,351 | 11,430,351 | ||||||
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares | $ 54.47 | $ 54.47 | ||||||
Unrecognized share-based compensation | $ 88,400,000 | $ 88,400,000 | ||||||
Unrecognized share-based compensation, recognition period | 6 months | |||||||
Share-based awards, liability paid | 15,900,000 | |||||||
Outstanding (in shares) | shares | 11,430,351 | 11,430,351 | 11,601,185 | |||||
Restricted Stock Units (RSUs) | 2019 EIP | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Expected to vest (in shares) | shares | 0 | 0 | 192,999 | |||||
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares | $ 0 | $ 0 | ||||||
Outstanding (in shares) | shares | 0 | 0 | 192,999 | |||||
Restricted Stock Units (RSUs) | 2022 RSU Plan | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | $ 152,100,000 | 48,000,000.0 | $ 215,500,000 | 57,500,000 | ||||
Share-based compensation, tax benefit (expense) | 21,500,000 | 9,100,000 | 33,300,000 | 10,500,000 | ||||
Additional paid-in capital | $ 208,100,000 | $ 208,100,000 | $ 1,900,000 | |||||
Number of grantees affected by modification | employee | 5,041 | |||||||
Expected to vest (in shares) | shares | 27,458,949 | 27,458,949 | 284,036,000,000 | |||||
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares | $ 40.69 | $ 40.69 | $ 40.47 | |||||
Unrecognized share-based compensation | $ 910,300,000 | $ 910,300,000 | ||||||
Unrecognized share-based compensation, recognition period | 1 year 3 months 18 days | |||||||
Share-based awards, liability paid | $ 244,000,000 | |||||||
Outstanding (in shares) | shares | 27,458,949 | 27,458,949 | 11,129,734 | |||||
Accelerated share-based compensation | $ 17,700,000 | |||||||
Accrued compensation and benefits and share-based compensation increase (decrease) | $ 234,800,000 | |||||||
Phantom Share Units (PSUs) | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | $ 0 | $ 500,000 | $ 0 | $ 800,000 | ||||
Share-based compensation, tax benefit (expense) | $ 0 | 0 | ||||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | $ 1,100,000 | |||||||
Share-based awards, liability paid | $ 900,000 | |||||||
Outstanding (in shares) | shares | 0 | 0 | 0 | |||||
Accrued compensation and benefits and share-based compensation increase (decrease) | $ 1,100,000 | |||||||
Executive Awards | 2022 RSU Plan | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Share-based compensation cost (credit) | $ 9,800,000 | $ 20,300,000 | $ 33,700,000 | |||||
Share-based compensation, tax benefit (expense) | (1,500,000) | 1,000,000.0 | ||||||
Additional paid-in capital | $ 40,900,000 | $ 40,900,000 | ||||||
Number of grantees affected by modification | employee | 14 | |||||||
Expected to vest (in shares) | shares | 1,286,967 | 1,286,967 | ||||||
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares | $ 51.00 | $ 51.00 | ||||||
Unrecognized share-based compensation | $ 54,700,000 | $ 54,700,000 | ||||||
Unrecognized share-based compensation, recognition period | 1 year 3 months 18 days | |||||||
Share-based awards, liability paid | $ 25,000,000 | |||||||
Outstanding (in shares) | shares | 1,286,967 | 1,286,967 | 0 | |||||
Shares issued (in shares) | shares | 1,875,202 | |||||||
Liabilities for awards | $ 32,200,000 | |||||||
Executive Awards | 2022 RSU Plan | Reclassification, Other Current Liabilities | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Additional paid-in capital | $ 9,100,000 | |||||||
Accrued compensation and benefits and share-based compensation increase (decrease) | (9,100,000) | (18,400,000) | ||||||
Executive Awards | 2022 RSU Plan | Reclassification, Other Noncurrent Liabilities | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Additional paid-in capital | 20,200,000 | |||||||
Non-current portion of accrued compensation and share-based compensation increase (decrease) | $ (20,200,000) | $ (13,800,000) | ||||||
Restricted Stock Units, Liability-Classified | 2019 AEP | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Expected to vest (in shares) | shares | 146,252 | 146,252 | 11,601,185 | |||||
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares | $ 51.32 | $ 51.32 | $ 23.33 |
Share-based Compensation - Schedule of Restricted Stock Unit Activity (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Mar. 31, 2023 |
|
2019 EIP | ||
Weighted Average Grant Date Fair Value Per RSU | ||
Weighted Average Grant Date Fair Value Per RSU, Expected to vest (in dollars per share) | $ 37.43 | |
Restricted Stock Units (RSUs) | 2019 AEP | ||
Number of RSUs | ||
Outstanding, beginning of period (in shares) | 11,601,185 | |
Granted (in shares) | 2,603 | |
Cancelled and forfeited (in shares) | 173,437 | |
Outstanding, ending of period (in shares) | 11,430,351 | |
Number of RSUs, Expected to vest (in shares) | 11,430,351 | |
Weighted Average Grant Date Fair Value Per RSU | ||
Outstanding (in dollars per share) | $ 54.47 | $ 54.47 |
Granted (in dollars per share) | 54.51 | |
Cancelled and forfeited (in dollars per share) | 54.51 | |
Weighted Average Grant Date Fair Value Per RSU, Expected to vest (in dollars per share) | $ 54.47 | |
Restricted Stock Units (RSUs) | 2019 EIP | ||
Number of RSUs | ||
Outstanding, beginning of period (in shares) | 192,999 | |
Granted (in shares) | 0 | |
Vested (in shares) | 192,999 | |
Cancelled and forfeited (in shares) | 0 | |
Outstanding, ending of period (in shares) | 0 | |
Number of RSUs, Expected to vest (in shares) | 0 | 192,999 |
Weighted Average Grant Date Fair Value Per RSU | ||
Outstanding (in dollars per share) | $ 0 | $ 51.00 |
Granted (in dollars per share) | ||
Vested (in dollars per share) | 51.00 | |
Cancelled and forfeited (in dollars per share) | ||
Weighted Average Grant Date Fair Value Per RSU, Expected to vest (in dollars per share) | $ 0 | |
Restricted Stock Units (RSUs) | 2022 RSU Plan | ||
Number of RSUs | ||
Outstanding, beginning of period (in shares) | 11,129,734 | |
Granted (in shares) | 17,134,484 | |
Vested (in shares) | 351,022 | |
Cancelled and forfeited (in shares) | 454,247 | |
Outstanding, ending of period (in shares) | 27,458,949 | |
Number of RSUs, Expected to vest (in shares) | 27,458,949 | 284,036,000,000 |
Weighted Average Grant Date Fair Value Per RSU | ||
Outstanding (in dollars per share) | $ 40.69 | $ 35.87 |
Granted (in dollars per share) | 43.68 | |
Vested (in dollars per share) | 31.28 | |
Cancelled and forfeited (in dollars per share) | 39.93 | |
Weighted Average Grant Date Fair Value Per RSU, Expected to vest (in dollars per share) | $ 40.69 | 40.47 |
Executive Awards | 2022 RSU Plan | ||
Number of RSUs | ||
Outstanding, beginning of period (in shares) | 0 | |
Executed Awards converted from liability awards (in shares) | 1,875,202 | |
Granted (in shares) | 0 | |
Vested (in shares) | 588,235 | |
Cancelled and forfeited (in shares) | 0 | |
Outstanding, ending of period (in shares) | 1,286,967 | |
Number of RSUs, Expected to vest (in shares) | 1,286,967 | |
Weighted Average Grant Date Fair Value Per RSU | ||
Outstanding (in dollars per share) | $ 51.00 | |
Executed Awards converted from liability awards (in dollars per share) | 51.00 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 51.00 | |
Cancelled and forfeited (in dollars per share) | ||
Weighted Average Grant Date Fair Value Per RSU, Expected to vest (in dollars per share) | $ 51.00 |
Share-based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation cost (credit) | $ 518 | $ 46 | $ 676 | $ 59 |
Cost of sales | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation cost (credit) | 20 | 2 | 26 | 3 |
Selling, general and administrative expenses | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation cost (credit) | 149 | 12 | 198 | 18 |
Research and development | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation cost (credit) | $ 349 | $ 32 | $ 452 | $ 38 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (expense) | $ 9.0 | $ (38.0) | $ (13.0) | $ (99.0) |
Income tax (expense) benefit as a percentage of income before taxes | 7.60% | (25.00%) | 162.50% | 22.60% |
Net Income (Loss) Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (110) | $ 114 | $ (5) | $ 339 |
Weighted average ordinary shares used to calculate basic net income (loss) per share (in shares) | 1,025,312,845 | 1,025,234,000 | 1,025,273,638 | 1,025,234,000 |
Equity-classified awards (in shares) | 0 | 1,814,150 | 0 | 1,241,177 |
Weighted average ordinary shares used to calculate diluted net income (loss) per share (in shares) | 1,025,312,845 | 1,027,048,150 | 1,025,273,638 | 1,026,475,177 |
Net income per ordinary share - basic (in USD per share) | $ (0.11) | $ 0.11 | $ 0 | $ 0.33 |
Net income per ordinary share - diluted (in USD per share) | $ (0.11) | $ 0.11 | $ 0 | $ 0.33 |
Net Income (Loss) Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 40,061,821 | 11,710,800 | 40,061,821 | 11,710,800 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 38,774,854 | 11,710,800 | 38,774,854 | 11,710,800 |
Executive Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,286,967 | 0 | 1,286,967 | 0 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Aug. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
|
Debt Instrument [Line Items] | ||||||
Loss contingency | $ 40.0 | |||||
Loss contingency accrual reversal | $ 40.0 | |||||
SoftBank Vision Fund | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of short-term debt | $ 900.0 | |||||
Financial Standby Letter of Credit | Arduino | ||||||
Debt Instrument [Line Items] | ||||||
Guarantor obligation | $ 5.3 | |||||
Facility Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 8,500.0 | $ 8,000.0 | ||||
Guarantor obligation | 8,500.0 | |||||
Facility Agreement | Line of Credit | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of debt | 7,100.0 | |||||
Debt, face amount | $ 1,400.0 | |||||
Incremental debt | $ 500.0 | |||||
Maturity term, once drawn | 2 years | |||||
Facility Agreement | Line of Credit | Secured Debt | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Maturity term, after effective date of public listing | 3 months | |||||
Facility Agreement | Bridge Loan | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of debt | $ 900.0 | |||||
Undertaking | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Threshold for public listing from closing of the facility | 18 months | |||||
Kronos Guarantee Amendment | Line of Credit | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Threshold for public listing from closing of the facility | 21 months | |||||
Kronos Guarantee Amendment | Line of Credit | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Threshold for public listing from closing of the facility | 18 years |
Related Party Transactions (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Aug. 31, 2023 |
Feb. 28, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Related Party Transaction [Line Items] | ||||||||
Revenue | $ 806,000,000 | $ 630,000,000 | $ 1,481,000,000 | $ 1,322,000,000 | ||||
Operating expenses | 916,000,000 | 422,000,000 | 1,449,000,000 | 795,000,000 | ||||
Accounts receivable, net | 864,000,000 | 864,000,000 | $ 999,000,000 | |||||
Other current liabilities | 217,000,000 | 217,000,000 | 293,000,000 | |||||
Contract liabilities | 288,000,000 | 288,000,000 | 293,000,000 | |||||
Proceeds from equity method investments | 2,100,000 | 0 | 2,400,000 | 300,000 | ||||
Other non-current assets | 211,000,000 | 211,000,000 | 202,000,000 | |||||
Related Parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue | 162,000,000 | 161,000,000 | 302,000,000 | 329,000,000 | ||||
Accounts receivable, net | 270,000,000 | 270,000,000 | 402,000,000 | |||||
Other current liabilities | 17,000,000 | 17,000,000 | 17,000,000 | |||||
Contract liabilities | 119,000,000 | 119,000,000 | 135,000,000 | |||||
Service Share Arrangement | Related Parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue | 162,000,000 | 159,700,000 | 300,900,000 | 325,300,000 | ||||
Operating expenses | 17,500,000 | 18,500,000 | 33,600,000 | 31,700,000 | ||||
Net receivable | 258,400,000 | 258,400,000 | 386,900,000 | |||||
Accounts receivable, net | 269,600,000 | 269,600,000 | ||||||
Due to related party | 400,700,000 | |||||||
Other current liabilities | 11,200,000 | 11,200,000 | 13,900,000 | |||||
Contract liabilities | 89,000,000 | 89,000,000 | 103,400,000 | |||||
Common Control in SoftBank | Related Parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue | 400,000 | 200,000 | 600,000 | 600,000 | ||||
Accounts receivable, net | 200,000 | 200,000 | 500,000 | |||||
Contract liabilities | 1,600,000 | 1,600,000 | 1,600,000 | |||||
Other receivables | 12,000,000 | |||||||
Other Equity Investments | Related Parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue | 100,000 | 1,100,000 | 1,100,000 | 2,700,000 | ||||
Accounts receivable, net | 500,000 | |||||||
Contract liabilities | 32,300,000 | 32,300,000 | 30,200,000 | |||||
Contract assets | 2,700,000 | 2,700,000 | 8,700,000 | |||||
Linaro Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amounts of transaction | $ 4,000,000 | |||||||
Related party transaction, term | 5 years | |||||||
Linaro Agreement | Related Parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other current liabilities | 700,000 | 700,000 | 300,000 | |||||
Subscription costs incurred | 2,400,000 | 2,200,000 | 4,700,000 | 4,200,000 | ||||
Raine Securities LLC Agreement | Related Parties | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operating expenses | 10,700,000 | $ 600,000 | 10,700,000 | $ 1,200,000 | ||||
Other current liabilities | 5,500,000 | 5,500,000 | 2,500,000 | |||||
Proceeds from reimbursement from underwriters | (5,200,000) | |||||||
Arduino | Related Parties | Loans receivable | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other non-current assets | 15,900,000 | 15,900,000 | 19,200,000 | |||||
Cerfe Labs, Inc. | Related Parties | Loans receivable | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other non-current assets | 3,000,000 | |||||||
IoTP | ||||||||
Related Party Transaction [Line Items] | ||||||||
Non-cash distribution, disposal of investment | $ 12,000,000 | |||||||
Ampere | Loans receivable | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other non-current assets | $ 31,600,000 | $ 31,600,000 | $ 30,900,000 | |||||
Acetone Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 10.00% | |||||||
Arm China | Acetone Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 48.18% |
Subsequent Events (Details) |
Mar. 12, 2024 |
---|---|
2019 AEP | Forecast | |
Subsequent Event [Line Items] | |
Vesting | 100.00% |
"J^B6[VG:"QG&IM,@:
M9R3(6%[_TU_-0G0 FR[YJ3@<,T"5G&H!NV>=N,;%>6E%!'#5Y
M_]Y6[^\\&=3(]8M&1[^.X*IT6A< ]-FCA-65>0W+S%_$SHH7F<#0Y %7%:2)
M1C-T=8,"]VT_'_$4S>L<,ABA5'VR9*4NJGSB@K RCM(.CQB"J]8\T=%E$\Q4
M@ZK4!R?9XS)!O5JO$S@H#%:J!(DDM78-A>LBP2CWZH^2L>A7S$9&@!-'6@:
M9[@MJS:\-F, JVL._=.4?RG82I3AQM
HOQM/!NWX?_N
MXJ*M.=E$<#W*HZ'!,%=S.8(GB)RZ2)5QLOU,9;6+F8EV7-^E' &]E '?9-0 H,VR3:7J)/]5JA' 4Y)7<$O"RXKQB!!XU
M_4:$LQQ$TK!DK3H@("NSH'%Z>4"ZONI+:VAJX>_O;106@X VAE6Q33' *'L'
M7/@S)B"@ 0F6=8,4?K-!@+Y+=\6>P-.26+?_:GNV]W%6EBN/0ZPFWL_O#ZAH
ML>+?-;A O3J-N;Y_-#HY=1B$#J$/# A/I3EKW(- U0>DQ3!M:<]
M9]U%CBOJW%I.T1LZU5J[=9VS,;T+#UNY$[FF>PS="4
C1(/-J\KZ&^)=^!EP:VXU>D_9.22
MR]Z\QR(1\R)U?^C5SZ+DYQ3AA3JU],E6?N]TUF-A89W.RL- 02:5_^:/I1P:
M!^:C/0>"\D! ='M$1.7?N>-7%T:OF,'= TOB%4Z#<1)A4JY=P96)9QS5S]]
M*:1[8G?J05@'PG;V8N@ +JX.PQ+&C8<1[($Q8[]IY1++?E*1B-KGAT!/3510
M$743= *\%_F 349]%HR"20>\2
XOC7>^CAXU?#V3"
M+.DW$A#,42#^AP3UT_IG&-?^UP?K[?XW'(![B:$V%3$<'0W.3GL^$5
]-SW*>*:J(GRTRU^XB>>EZ$MMX>,O+>N]R:1':>6#+1MA>%!J
M4_]7]TT>.@)O1CL$DD8@B7[7AJ*7/ZF@SD^=79*3W= F'S'4* WGM!%0;H/#
MJH9<.'^KC3*I5@5=&Q]
2R*@#B[RRCKPN];TJV>V5A!A)[Y35
M6"3SM2*'5%& B82IAP'[\8<7\]GS5TX4^#
MO +U!I>W2EJAB#'$+])F*W$^"P6_"RZK,J $B^2^=_2NA $Y)4!2M@H H9*Y
M$HOMC@R\;^16/+DX YN6):56DR^NX>0@TO724(9).)5_"_MR[9K6(X(+Y3=J
M+Q84( D,U3][T\ C9#_PMK*4'426*D)G;0DGTYLN[UDI=44(-8!(0<4E.]4B
ME^0?^R0 (@1:VI) :+7)4^'L(VFEH<(&NSBQG;B4=[+5>;R7-N=E3B]K76AD
MU4,\O'4:P8&Y;%"HJF2YBXHZL