Equity Investments

3 Months Ended

Jun. 30, 2024

Investments, All Other Investments [Abstract]

4 - Equity Investments

A summary of the components of equity investments is as follows:


	As of
(in millions)	June 30, 2024		March 31, 2024
Equity method investments under fair value option	$	573	$	573
Equity investment in publicly listed company	82		—
Equity method investments under equity method	11		11
Non-marketable equity securities	134		157
Total equity investments	$	800	$	741

Income (loss) from equity investments, net is as follows:


	Three Months Ended June 30,
(in millions)	2024		2023
Equity investment in publicly listed company	$	27	$	—
Equity method investments (1)	—		(10)
Non-marketable equity securities (includes NAV)	(3)		3
Total income (loss) from equity investments, net	$	24	$	(7)

(1)Includes equity method investments where the Company elected the fair value option, including those under the net asset value (“NAV”) practical expedient, along with investments accounted for under the equity method.

Equity method investments under fair value option

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 7 - Fair Value, for further information.

For the three months ended June 30, 2024 and 2023, 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 funds based on the indicated market values of the underlying assets or investment portfolios. As of June 30, 2024 and March 31, 2024, the carrying value of equity method investments under the fair value option measured at NAV was $106.0 million and $106.2 million, respectively.

For the three months ended June 30, 2024 and 2023, the Company recognized losses from changes in fair value of $0.4 million in both periods for equity method investments accounted for under the NAV practical expedient. Changes in fair value are recorded through income (loss) from equity investments, net in the Condensed Consolidated Income Statements.

Acetone Limited

As of June 30, 2024 and March 31, 2024, the carrying value of the Company’s equity method investment in Acetone Limited was $76.5 million. For the three months ended June 30, 2024, the Company did not recognize fair value gains or losses for its investment in Acetone Limited. For the three months ended June 30, 2023, the Company recognized fair value losses of $9.6 million for its investment in Acetone Limited in income (loss) from equity investments, net in the Condensed Consolidated Income Statements.

Ampere

As of June 30, 2024 and March 31, 2024, the carrying value of the Company’s equity method investment in Ampere was $389.8 million. For the three months ended June 30, 2024 and 2023, the Company did not recognize any fair value gains or losses for its investment in Ampere.

As of June 30, 2024 and March 31, 2024, the outstanding balance of the convertible promissory note with Ampere was $32.7 million and $32.4 million, respectively, which is included in other non-current assets on the Condensed Consolidated Balance Sheets. The Company’s maximum exposure to loss is the amounts invested in, and advanced to, Ampere as of June 30, 2024.

Equity investment in publicly listed company

In June 2024, the Company purchased $35.3 million of Raspberry Pi Holdings plc’s (“Raspberry Pi”) ordinary shares in the initial public offering of Raspberry Pi. As of June 30, 2024, the carrying value for this equity investment in a publicly listed company was $82.3 million, which included $20.0 million of existing investment carrying value classified as non-marketable equity securities as of March 31, 2024 and $27.0 million recognized gains from changes in fair value for equity investment in a publicly listed company for the three months ended June 30, 2024.

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 June 30, 2024 and March 31, 2024, the carrying value of assets measured at NAV was $16.1 million and $17.8 million, respectively. For the three months ended June 30, 2024 and 2023, the Company recognized losses of $1.7 million and gains of $2.5 million, respectively, from changes in fair value for non-marketable securities accounted for under the NAV practical expedient.

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 and (losses), which primarily include unrealized gains and losses on non-marketable securities inclusive of those measured under the NAV practical expedient, are as follows:


	Three Months Ended June 30,
(in millions)	2024		2023
Observable price adjustments on non-marketable equity securities (includes NAV)	$	(2)	$	3
Impairment of non-marketable equity securities	(1)		—

Total income (loss) from equity investments in non-marketable securities, net	$	(3)	$	3

All equity method investments held by the Company are considered long-term to enable ecosystem growth and are non-current assets. For the three months ended June 30, 2024 and 2023, the Company recognized $0.1 million and $0.3 million, respectively, in dividends from equity investments measured using the NAV practical expedient. The total amount of financial commitments to existing investees of the Company not provided for in the condensed consolidated financial statements was $19.6 million and $19.9 million, as of June 30, 2024 and March 31, 2024, respectively.