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Fair Value (Tables)

3 Months Ended

Jun. 30, 2024

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s fair value hierarchy for assets and liabilities measured and recognized at fair value, excluding investments where the NAV practical expedient has been elected, on a recurring basis:


	As of June 30, 2024								As of March 31, 2024
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Financial assets
Money market funds	$	1,311	$	—	$	—	$	1,311	$	1,744	$	—	$	—	$	1,744
Short-term investments (1)	1,000		—		—		1,000		1,000		—		—		1,000
Equity investments (2)	82		—		466		548		—		—		466		466
Convertible loans receivable	—		—		33		33		—		—		32		32
Foreign currency forward contracts	—		3		—		3		—		4		—		4
Total financial assets	$	2,393	$	3	$	499	$	2,895	$	2,744	$	4	$	498	$	3,246

Financial liabilities
Foreign currency forward contracts	$	—	$	1	$	—	$	1	$	—	$	4	$	—	$	4
Total financial liabilities	$	—	$	1	$	—	$	1	$	—	$	4	$	—	$	4

(1)Short-term investments represent term deposits with banks with a maturity between 3 and 12 months.

(2)In accordance with Accounting Standards Codification (“ASC”) Subtopic 820-10, Fair Value Measurements, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy.

Schedule of 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


	Three Months Ended June 30,
(in millions)	2024		2023
Fair value of financial assets at the beginning of the period	$	466	$	482

Fair value losses recognized in the Condensed Consolidated Income Statements	—		(10)

Fair value at the end of the period	$	466	$	472

Convertible Loans Receivable


	Three Months Ended June 30,
(in millions)	2024		2023
Fair value of financial assets at the beginning of the period	$	32	$	31


Fair value gains recognized in the Condensed Consolidated Income Statements	1		—
Fair value at the end of the period	$	33	$	31

Schedule of 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:

As of June 30, 2024 and March 31, 2024

(in millions)

Fair value as of June 30, 2024

Fair value as of March 31, 2024

Valuation Technique

Unobservable Inputs

Range of Estimates

Equity Method Investments

$466

Acetone Limited – Market-Calibration or discounted cash flow

LTM Revenue Multiple

1.3x - 1.5x

Ampere – PWER

Probability of IPO

100%

Time to future exit scenario

1.5 years

Discount rate

17.6%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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