ARM ARM Holdings PLC

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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”), each representing one ordinary share of the Company, 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 controlling shareholder sold an aggregate of 102,500,000 ADSs in the IPO 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 were satisfied or partially satisfied as of September 13, 2023. See Note 9 - 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.

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.

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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 7 - Fair Value.

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Recent Accounting Pronouncements

Recently issued accounting pronouncements not yet adopted

Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures: In November 2023, FASB issued ASU 2023-07 which requires incremental reportable segment disclosures. The new standard requires that a public entity disclose significant segment expenses, the title and position of the CODM, and how the CODM uses the reported measures in assessing performance and deciding how to allocate resources. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. This ASU will result in additional required disclosures being included in our consolidated financial statements when adopted. The Company will adopt this standard beginning April 1, 2024.

Income Taxes (Topic 740), Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU No. 2023-09, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will likely result in additional required disclosures being included in our consolidated financial statements when adopted. We are currently evaluating the provisions of this ASU.

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2 - Balance Sheet Components

Certain balance sheet components are as follows:

Accrued compensation and benefits and share-based compensation consist of:

(in millions)						As of December 31, 2023						As of March 31, 2023
Accrued bonus, commissions, and cash awards						$	125					$	257
Accrued vacation and sabbatical						70						66
Accrued salaries and fringe benefits						7						11
Share-based payment liabilities (1)						9						255
Total accrued compensation and benefits and share-based compensation						$	211					$	589

(1)     In connection with the IPO, the Company paid $244.0 million arising from the normal vesting of liability-classified share-based awards under the 2022 RSU Plan. After completion of the IPO, awards within this plan all are equity-classified. See Note 9 - Share-based Compensation in the Notes to the Condensed Consolidated Financial Statements.

Other current liabilities consist of:

(in millions)						As of December 31, 2023						As of March 31, 2023
Employee related payroll taxes and payables						$	108					$	48
Accrued expenses and fees						84						119
Electronic design automation liabilities						44						35
Trade payables						31						82
Customer deposits						7						7
Finance lease liabilities						5						2
Total other current liabilities						$	279					$	293

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3 - 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. This estimation process for the royalty revenue accrual is based off of customer sales which occur using estimates from sales trends and judgment for several key attributes, including industry estimates of expected shipments, the mix of products sold, 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.

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Disaggregation of Revenue

A summary of the Company’s disaggregated revenue is as follows:

						Three Months Ended December 31,
						External Customers												Related Parties												Total
(in millions)						2023						2022						2023						2022						2023						2022
License and Other Revenue (1)						$	211					$	159					$	143					$	140					$	354					$	299
Royalty Revenue						365						374						105						51						470						425
						$	576					$	533					$	248					$	191					$	824					$	724

(1)    Includes over-time revenue of $37 million and $29 million and point-in-time revenue of $317 million and $270 million for the three months ended December 31, 2023 and 2022, respectively.

						Nine Months Ended December 31,
						External Customers												Related Parties												Total
(in millions)						2023						2022						2023						2022						2023						2022
License and Other Revenue (1)						$	685					$	401					$	332					$	344					$	1,017					$	745
Royalty Revenue						1,070						1,125						218						176						1,288						1,301
						$	1,755					$	1,526					$	550					$	520					$	2,305					$	2,046

(1)    Includes over-time revenue of $84 million and $77 million and point-in-time revenue of $933 million and $668 million for the nine months ended December 31, 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 headquarters address by geographic regions:

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
United States						$	387					$	296					$	1,010					$	804
PRC (1)						206						191						525						521
Taiwan						100						86						381						283
Republic of Korea						50						71						157						185
Other countries						81						80						232						253
Total						$	824					$	724					$	2,305					$	2,046

(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 December 31, 2023 and 2022, the Company had one customer that represented 25% and 26% of total revenue, respectively. No other customer represented 10% or more of total revenue for the three months ended December 31, 2023 and 2022.

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For the nine months ended December 31, 2023, the Company had two customers that collectively represented 34% of total revenue, with the single largest customer accounting for 22% of total revenue and the second largest customer accounting for 12% of total revenue. For the nine months ended December 31, 2022, the Company had two customers that collectively represented 36% of total revenue, with the single largest customer accounting for 25% of total revenue and the second largest customer accounting for 11% of total revenue. No other customer represented 10% or more of total revenue for the nine months ended December 31, 2023 and 2022.

Receivables

A summary of the components of accounts receivable, net is as follows:

(in millions)						As of December 31, 2023						As of March 31, 2023
Trade receivables						$	417					$	625
Royalty receivables						385						377
Total gross receivables						802						1,002
Allowance for current expected credit losses						(3)						(3)
Total accounts receivables, net						$	799					$	999

As of December 31, 2023, the customer with the largest total receivables balance represented 27% of total receivables, the customer with the second largest total receivables balance represented 13% of total receivables, and the customer with the third largest total receivables balance represented 10% 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 December 31, 2023 or 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 $425.0 million and $254.1 million due to the timing of billings to customers, which fell into subsequent periods, as of December 31, 2023 and March 31, 2023, respectively, offset by $271.8 million and $250.7 million of contract assets transferred to accounts receivable, as of December 31, 2023 and March 31, 2023, respectively. The balance and activity for loss allowances related to contract assets was immaterial for all periods presented.

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Contract Liabilities

A reconciliation of the movement in contract liabilities is as follows:

(in millions)						Total
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						169
Revenue recognized in the period that was included in the contract liability balance at the beginning of the period						(213)
Revenue recognized in the period that was included in the contract liability balance during the period						(99)
Balance as of December 31, 2023						$	957
Current portion of contract liabilities						$	223
Non-current portion of contract liabilities						$	734

Satisfied Performance Obligations

For the three months ended December 31, 2023 and 2022, revenue recognized from previously satisfied performance obligations in prior reporting periods was $529.3 million and $434.0 million, respectively. For the nine months ended December 31, 2023 and 2022, revenue recognized from previously satisfied performance obligations in prior reporting periods was $1,349.9 million and $1,329.0 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 December 31, 2023, the aggregate transaction price allocated to remaining performance obligations was $2,433.0 million, which includes $1.2 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, 26% over the subsequent 13-to 24-month period, and the remainder thereafter.

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4 - Equity Investments

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

(in millions)						As of December 31, 2023						As of March 31, 2023
Equity method investments under fair value option						$	576					$	592
Equity method investments under equity method						10						9
Non-marketable equity securities						162						122
Total equity investments						$	748					$	723

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

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Equity method investments (1)						$	(1)					$	(2)					$	(15)					$	(82)
Non-marketable equity securities (includes NAV)						—						(4)						2						2
Total loss from equity investments, net						$	(1)					$	(6)					$	(13)					$	(80)

(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.

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 and nine months ended December 31, 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 funds based on the indicated market values of the underlying assets or investment portfolios. As of December 31, 2023 and March 31, 2023, the carrying value of equity method investments under the fair value option measured at NAV was $109.3 million and $109.4 million, respectively.

For the three months ended December 31, 2023 and 2022, the Company recognized losses from changes in fair value of $1.1 million and $0.4 million for equity method investments accounted for under the NAV practical expedient. For the nine months ended December 31, 2023, the Company recognized gains from changes in fair value of $0.6 million for equity method investments accounted for under the NAV practical expedient. For the nine months ended December 31, 2022, the Company recognized losses from changes in fair value of $0.6 million 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 December 31, 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 December 31, 2023, the Company did not have any fair value adjustment in connection with the equity method investment in Acetone Limited. For the three months ended December 31, 2022, the Company recognized fair value gain of $7.2 million in connection with the equity method investment in Acetone Limited. For the nine months ended December 31, 2023 and 2022, the Company recognized fair value losses of $15.6 million and $28.0 million, respectively, in income (loss) from equity investments, net on the Condensed Consolidated Income Statements.

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Ampere

As of December 31, 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 nine months ended December 31, 2023, the Company did not recognize any changes in fair value in Ampere. For the three and nine months ended December 31, 2022, the Company recognized fair value losses of $8.9 million and $53.0 million, respectively, in loss from equity investments, net on the Condensed Consolidated Income Statements.

As of December 31, 2023 and March 31, 2023, the outstanding balance of the convertible promissory note with Ampere was $32.0 million and $30.9 million, respectively 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 December 31, 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 December 31, 2023 and March 31, 2023, the carrying value of assets measured at NAV was $19.4 million and $18.0 million, respectively.

For the three months ended December 31, 2023 and 2022, the Company recognized losses from changes in fair value of $0.1 million and $3.8 million, respectively, for non-marketable securities accounted for under the NAV practical expedient. For the nine months ended December 31, 2023 and 2022, the Company recognized gains of $2.2 million and losses of $10.8 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 L.P (“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 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 December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Observable price adjustments on non-marketable equity securities (includes NAV)						$	—					$	(4)					$	2					$	3
Impairment of non-marketable equity securities						—						—						—						(1)
Sale of non-marketable equity securities						—						—						—						—
Total income (loss) from equity investments in non-marketable securities, net						$	—					$	(4)					$	2					$	2

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For the three months ended December 31, 2023, the Company recognized $2.2 million in dividends from equity investments measured using the NAV practical expedient. For the three months ended December 31, 2022, the Company did not receive dividends from equity investments measured using the NAV practical expedient. For the nine months ended December 31, 2023 and 2022, dividends recognized from equity investments measured using the NAV practical expedient were $4.3 million and $0.3 million, respectively. The total amount of financial commitments to existing investees of the Company not provided for in the condensed consolidated financial statements was $20.3 million and $22.1 million as of December 31, 2023 and March 31, 2023, respectively.

5 - Financial Instruments

Loans and Other Receivables

Loans and other receivables carried at amortized cost is as follows:

(in millions)						As of December 31, 2023						As of March 31, 2023
Loans and other receivables carried at amortized cost
Loans receivable						$	26					$	25
Other receivables						7						18
Allowance for current expected credit losses						(19)						(22)
Loans and other receivables carried at amortized cost, net						$	14					$	21

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, a 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 December 31, 2023, the loan receivable of $16.0 million from Arduino remained fully impaired.

The remaining balance of loans receivables as of December 31, 2023 comprised two five-year loans totaling $7.0 million issued to Allia Limited and a four-year loan of $3.1 million issued to Cerfe Labs, Inc that remained fully impaired. The remaining balance of loans receivables as of March 31, 2023 comprised a five-year loan of $3.1 million issued to Allia Limited and a four-year loan of $3.0 million issued to Cerfe Labs, Inc that was fully impaired in the fiscal year ended March 31, 2023.

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 December 31, 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 nine months ended December 31, 2023 and 2022, there were no material gains recognized.

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6 - 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 December 31, 2023, the notional value of outstanding foreign currency forward contracts was £343.0 million and the fair value was $9.1 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:

(in millions)						As of December 31, 2023						As of March 31, 2023
Designated as cash flow hedges
Foreign currency forward contracts						$	428					$	411

The following table presents the fair value of the Company’s outstanding derivative instruments:

						Derivative Assets												Derivative Liabilities
(in millions)						As of December 31, 2023						As of March 31, 2023						As of December 31, 2023						As of March 31, 2023
Designated as cash flow hedges
Foreign currency forward contracts						$	10					$	10					$	1					$	1

Cash Flow Hedge Gains (Losses)

The following table presents net gains (losses) on foreign currency forward contracts designated as cash flow hedges:

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Condensed Consolidated Statements of Comprehensive Income:
Gains (losses) recognized in Accumulated other comprehensive income on cash flow hedge derivatives						$	17					$	31					$	15					$	(1)
(Gains) losses reclassified from Accumulated other comprehensive income into income						—						2						(16)						6
Tax benefit (expense) on cash flow hedges						(4)						(8)						—						(1)
Net change in fair value of the effective portion of designated cash flow hedges, net of tax (1)						$	13					$	25					$	(1)					$	4
Condensed Consolidated Income Statements, before tax:												—
Research and development						$	—					$	(1)					$	9					$	(3)
Selling, general and administrative expenses						$	—					$	(1)					$	7					$	(3)

(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.

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For the three and nine months ended December 31, 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:

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Foreign currency forward contracts						$	—					$	—					$	—					$	(30)

7 - 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:

						As of December 31, 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						$	—					$	1					$	—					$	1					$	—					$	1					$	—					$	1
Total financial liabilities						$	—					$	1					$	—					$	1					$	—					$	1					$	—					$	1

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:

						As of December 31, 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)						$	850					$	—					$	—					$	850					$	661					$	—					$	—					$	661
Equity method investments(2)						—						—						466						466						—						—						482						482
Convertible loans receivable						—						—						32						32						—						—						31						31
Foreign currency forward contracts						—						10						—						10						—						10						—						10
Total financial assets						$	850					$	10					$	498					$	1,358					$	661					$	10					$	513					$	1,184

(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.

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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 December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Fair value of financial assets at the beginning of the period						$	466					$	445					$	482					$	524
Additions, net of contributions from shareholders of the Company						—						—						—						—
Fair value losses recognized in the Condensed Consolidated Income Statements						—						(2)						(16)						(81)
Distributions to shareholders of the Company						—						—						—						—
Fair value at the end of the period						$	466					$	443					$	466					$	443

Convertible Loans Receivable

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Fair value of financial assets at the beginning of the period						$	32					$	30					$	31					$	29
Additions						—						—						—						—
Converted into equity						—						—						—						—
Fair value gains recognized in the income statement						—						—						1						1
Fair value at the end of the period						$	32					$	30					$	32					$	30

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).

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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:

As of December 31, 2023 and March 31, 2023

(in millions)

Fair value as of December 31, 2023

Fair value as of March 31, 2023

Valuation Technique

Unobservable Inputs

Range of Estimates

Equity Method Investments

$466

$482

Acetone – Market-Calibration or discounted cash flow Ampere – PWER

LTM Revenue Multiple Probability of initial public offering, time to future exit scenario, discount rate

1.4x - 1.7x   Probability weighted – 100% Discount Rate – 18.6%

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 December 31, 2023 and March 31, 2023, the Company’s maximum exposure to loss is the amounts invested in, and advanced to, Ampere. As of December 31, 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 December 31, 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 December 31, 2023 and March 31, 2023.

Currency Exchange Contracts

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8 - Shareholders’ Equity

Employee Benefit Trust

In September 2023, the Company established 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 EBT may acquire newly issued ordinary shares or ADSs at a nominal value or the trustee of the EBT has the power to acquire ordinary shares or ADSs of the Company in the open market, which purchases may be funded by one or more loans from the Company to the EBT or non-repayable gifts made by the Company to the EBT. In November 2023, the EBT purchased a nominal number of ADSs from the Company at par value that remained with the EBT as of December 31, 2023. These ADSs were expected to be transferred out of the EBT, in order to settle future vesting of 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.

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9 - 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 December 31, 2023 and 2022, the Company recognized $53.3 million and $23.6 million of share-based compensation cost, respectively, and $4.7 million and $2.9 million of tax benefit associated with these awards, respectively. For the nine months ended December 31, 2023 and 2022, the Company recognized $474.4 million and $22.2 million of share-based compensation cost, respectively, and $40.5 million and $3.2 million of tax benefit associated with these awards, respectively.

In connection with the IPO, all restricted share units (“RSU”) previously issued under the 2019 AEP were modified to be settled in ordinary shares of the Company except for those awards granted to employees of Arm Technology Israel Ltd., the Company’s Israeli subsidiary (“Arm Israel”). 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 (“ASC 718”) and changed the classification of the awards from liability-classified to equity-classified. During the nine months ended December 31, 2023, 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. 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% in March 2024. 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 Arm Israel, these awards remain liability-classified and the Company will remeasure the RSUs at fair value at each reporting period through the date of settlement.

The table below identifies the award activity under the 2019 AEP:

						Awards						Weighted Average Grant Date Fair Value Per Award(1)
Outstanding as of March 31, 2023						11,601,185						$	54.47
Granted						2,603						54.51
Cancelled and forfeited						(234,922)						54.51
Outstanding and expected to vest as of December 31, 2023						11,368,866						$	54.70

(1)As of March 31, 2023, 2019 AEP outstanding awards were liability-classified with a weighted average fair value per RSU of $23.33. For periods presented prior to the IPO, the average grant date fair value per RSU represents the fair value at the 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. The IPO triggered a modification which reclassified RSUs from liability-classified to equity-classified in September 2023. As of December 31, 2023, the total outstanding liability-classified RSUs expected to vest were 144,914 with a weighted average fair value per RSU of $69.43 for Arm Israel. As of December 31, 2023, $579.2 million was recognized in additional paid-in capital and $9.4 million was recognized in accrued compensation and benefits and share-based compensation on the Condensed Consolidated Balance Sheets. 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 December 31, 2023, there was $33.6 million of total unrecognized compensation cost related to awards issued under the 2019 AEP expected to be recognized over a weighted-average period of 0.2 years . For the nine months ended December 31, 2023, the Company did not have any payments arising from normal course vesting events. For the nine months ended December 31, 2022, liability-classified share-based awards paid were $15.9 million related to the RSUs that had vesting conditions accelerated pursuant to restructuring activities.

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Restricted Share Units—Executive IPO Plan (“2019 EIP”)

For the three months ended December 31, 2023, the Company did not recognize any share-based compensation cost associated with this plan. For the three months ended December 31, 2022, $4.1 million of share-based compensation credit was recognized in connection with awards issued under the 2019 EIP. For the nine months ended December 31, 2023 and 2022, $6.2 million and $0.6 million, respectively, of share-based compensation cost and credit, respectively, was recognized in connection with awards issued under the 2019 EIP. The share-based compensation credit for the three and nine months ended December 31, 2022 was attributable to replacement awards issued in December 2022 and executive departures. For the three months ended December 31, 2023, the Company did not record any income tax benefit or expense in connection with the awards under the 2019 EIP. For the three months ended December 31, 2022, the income tax expense recorded was $1.1 million. For the nine months ended December 31, 2023, the Company did not record any income tax benefit or expense in connection with awards under the 2019 EIP. For the nine months ended December 31, 2022, the income tax expense recorded in connection with awards under the 2019 EIP was $0.5 million.

In connection with the IPO, all RSUs previously issued under the 2019 EIP were modified to be settled in ordinary shares of the Company. In accordance with ASC 718, the Company changed the classification of the awards from liability-classified to equity-classified at that time. During the nine months ended December 31, 2023, 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 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 December 31, 2023, all fully vested equity-classified awards were settled in ordinary shares of the Company.

The table below identifies the award activity under the 2019 EIP:

						Awards						Weighted Average Grant Date Fair Value Per Award(1)
Outstanding as of March 31, 2023						192,999						$	51.00
Vested						(192,999)						51.00
Outstanding and expected to vest as of December 31, 2023						—						$	—

(1)As of March 31, 2023, 2019 EIP outstanding awards were liability-classified with a weighted average fair value per RSU of $37.43. For periods presented prior to the IPO, the average grant date fair value per RSU represents the fair value at the 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 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 nine months ended December 31, 2023 and 2022.

Phantom Share Scheme (Cash-Settled)

As of December 31, 2023 and March 31, 2023, there were no phantom shares outstanding. The Company recognized share-based compensation cost of $0.3 million in connection with phantom shares for the three months ended December 31, 2022. The Company recognized share-based compensation credit of $0.5 million in connection with phantom shares for the nine months ended December 31, 2022, which was attributable to executive departures. No share-based compensation cost and tax expense or benefit related to phantom shares was recognized for the three and nine months ended December 31, 2023. As of March 31, 2023, $1.1 million related to phantom shares was recognized in accrued compensation and benefits and share-based compensation on the Condensed Consolidated Balance Sheets. For the nine months ended December 31, 2023, the Company paid $0.9 million for vested phantom shares. The variance between the amount accrued and paid of $1.1 million and $0.9 million, respectively, was driven by foreign exchange differences as

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participants were paid in foreign denominated currencies. As of December 31, 2023, the Company did not have any unpaid amounts in relation to vested phantom share 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”) and to grant two types of executive awards to certain of the Company’s executive officers (such awards, the “Annual Awards” and “Launch Awards” and collectively, the “Executive Awards”). The All Employee Awards and Executive Awards were historically disclosed separately due to pre-IPO presentation differences related to classification, but are now disclosed together as post-IPO all are equity-classified, as discussed in more detail below. The All Employee Awards vest in tranches, require continuous service through the vesting date, and are subject to graded vesting over time. At the time of issuance, the Company intended to settle the All Employee Awards in ordinary shares at the vesting date, and such RSU awards were accounted for as equity-classified awards. Launch Awards vest in tranches and require continuous service through the vesting dates and are subject to graded vesting over a period of three years. Annual Awards include a portion that vests over a three-year continuous service period and another portion that is subject to continuous service and satisfaction of certain Company performance conditions. The time-based portion of the Annual Awards vest over a three-year period. The Annual Awards that are subject to continuous service and satisfaction of certain Company performance conditions vest upon the satisfaction of performance metrics as established for each one-year performance period and have the potential to vest between 0% and 200% of the original fixed monetary amount of the award depending on the achievement of annual performance metrics. The 2022 RSU Plan allows for either cash or share settlement of the RSU awards by tranche at the discretion of the remuneration committee of the Company’s board of directors (the “remuneration committee”).

In November 2022, the Company issued Executive Awards under the 2022 RSU Plan. These entitled participants to a fixed amount of cash or, upon the occurrence of a change in control or an initial public offering, a variable number of ordinary shares of the Company equal to a fixed amount of cash, at the discretion of the remuneration committee. Executive Awards granted were originally accounted for as liability-classified awards and upon the IPO, each Executive Award was converted into a variable number of shares based on the closing ADS price of the Company at the IPO date. As of December 31, 2023, all the 2022 RSU Plan awards were expected to be settled in ordinary shares at the vesting date.

In November 2022, the Company determined that it would settle the first tranche of the All Employee Awards 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 and reclassified the affected portion of the award of $57.0 million 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 IPO. Upon the IPO, the All Employee Awards under the 2022 RSU Plan were accounted for using the vesting schedules applicable after an IPO which resulted in an acceleration of compensation cost. The Company accounted for the changes as a modification in accordance with ASC 718 and recorded $17.7 million of accelerated share-based compensation cost at the modification date which affected 5,041 employees.

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 IPO 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. 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 of all Executive Awards outstanding under the 2022 RSU Plan. Upon the occurrence of the IPO,

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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 award activity under the 2022 RSU Plan:

						Awards(1)						Weighted Average Grant Date Fair Value Per Award(1)
Outstanding as of March 31, 2023						11,129,734						$	35.87
Executive Awards converted from liability awards						1,875,202						51.00
Granted						17,134,484						43.68
Vested(2)						(4,969,122)						37.44
Cancelled and forfeited						(532,881)						40.27
Outstanding and expected to vest as of December 31, 2023						24,637,417						$	41.97

(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.

(2)    Includes 351,022 liability-classified awards vested and settled in cash in the nine months ended December 31, 2023.

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 nine months ended December 31, 2023, the Company paid $269.0 million arising from the normal vesting of liability-classified share-based awards under the 2022 RSU Plan. All liability-classified awards under the 2022 RSU Plan were vested as of August 15, 2023 and were paid as of September 30, 2023. For the three months ended December 31, 2023 and 2022, share-based compensation cost of $136.7 million and $83.3 million, respectively, was recognized in connection with all awards issued under the 2022 RSU Plan. For the nine months ended December 31, 2023 and 2022, share-based compensation cost of $385.8 million and $140.8 million, respectively, was recognized in connection with RSUs granted under the 2022 Equity Plan. Tax benefits recorded in connection with the 2022 RSU Plan for the three months ended December 31, 2023 and 2022 were $20.3 million and $10.5 million, respectively. Tax benefits recorded for the nine months ended December 31, 2023 and 2022 were $54.3 million and $20.9 million, respectively. As of March 31, 2023, the Company recognized $1.9 million, $253.1 million, and $13.8 million in additional paid-in capital, accrued compensation and benefits and share-based compensation and non-current portion of accrued compensation and share-based compensation, respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2023, there was $823.9 million total unrecognized compensation expense related to all awards issued under the 2022 RSU Plan expected to be recognized over a weighted-average period of 1.0 year and there were no liability-classified RSUs under the 2022 RSU Plan.

Omnibus Incentive Plan

In August 2023, the Company’s board of directors adopted the Omnibus Incentive Plan (the “Omnibus Incentive Plan”) which became effective in September 2023. The Omnibus Incentive Plan allows for the grant of incentive awards to employees, executive directors, and non-employees, including non-employee directors and consultants of the Company and its subsidiaries. Participants may elect not to participate in the plan. The types of incentive awards granted under the Omnibus Incentive Plan is determined by the Company’s board of directors and the remuneration committee, and the Omnibus Incentive Plan allows for the grant of stock options, share appreciation rights (“SARs”), restricted shares, RSUs, performance stock units (“PSUs”), other awards of cash, shares or other property (which may include a specified cash amount that is payable in cash or shares, or awards tied to the appreciation in the value of shares), dividends and dividend equivalents. Vesting conditions applicable to awards may be based on continued service, achievement of company, business unit or other performance objectives, or such other criteria as the remuneration committee may establish.

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In October 2023, the Company started to grant RSUs and PSUs under the Omnibus Incentive Plan to employees, including executives of the Company. The RSUs and PSUs granted neither carry rights to dividends nor voting rights until the shares are issued or transferred to the recipient. The Omnibus Incentive Plan allows for either cash or share settlement of the awards by tranche, if applicable, at the discretion of the remuneration committee. At the time of issuance, the Company intended to settle the RSUs and PSUs in shares at the vesting date and such awards are accounted for as equity-classified awards. The RSUs were granted to existing employees and new hires of the Company and its subsidiaries, Arm Israel and Arm France SAS and vest in tranches, require continuous service through the vesting date and are subject to graded vesting over a period of three years. RSUs granted to employees and new hires of subsidiaries in Israel and France substantially share the same terms as the existing RSUs under the 2022 RSU Plan with differences limited to the vesting schedules. PSUs were awarded to executives of the Company and include a portion that vests over a three-year continuous service period and another portion that is subject to continuous service and satisfaction of certain Company performance conditions. The time-based portion of the PSUs vest over a three-year period. The PSUs that are subject to continuous service and satisfaction of certain Company performance conditions vest upon the satisfaction of performance metrics as established for each one-year performance period and have the potential to vest between 0% and 200% of the original award amount depending on the achievement of annual performance metrics.

Except for performance awards with specific performance criteria, the Company recognizes share based compensation cost using the straight-line method over the requisite service period of the award, net of estimated forfeitures. Awards are forfeited if an employee leaves the Company before the awards vest. For all periods presented, the maximum number of ordinary shares that may be issued under the Omnibus Incentive Plan is equal to the sum of (i) 20,500,000 ordinary shares and (ii) an annual increase on April 1 of each year beginning on April 1, 2024 and ending on April 1, 2028, equal to the lesser of (A) 2% of the aggregate number of ordinary shares outstanding on March 31 of the immediately preceding fiscal year and (B) such smaller number of ordinary shares as determined by the Company’s board of directors or the remuneration committee. No more than 20,500,000 ordinary shares may be issued under the Omnibus Incentive Plan upon the exercise of incentive stock options.

The table below identifies all award activity under the Omnibus Incentive Plan:

						Awards(1)						Weighted Average Grant Date Fair Value Per Award(1)
Outstanding as of March 31, 2023						—						$	—
Granted						1,408,468						57.36
Cancelled and forfeited						(7,533)						63.07
Outstanding and expected to vest as of December 31, 2023						1,400,935						$	57.33

(1)    Awards and weighted average grant date per share exclude shares related to PSUs that currently have no grant date as the future performance objectives have not yet been defined and/or communicated to participants of the plan.

The Company uses the closing ADS price of the Company on the date of grant as the fair value of awards. For each of the three and nine months ended December 31, 2023, $7.3 million of share-based compensation cost and $1.3 million of tax benefit was recognized in connection with the equity-classified awards issued under the Omnibus Incentive Plan. As of December 31, 2023, there was $73.0 million of total unrecognized compensation cost expected to be recognized over a weighted-average period of 1.3 years.

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Share-based Compensation Cost

A summary of share-based compensation cost recognized on the Condensed Consolidated Income Statements is as follows:

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions)						2023						2022						2023						2022
Cost of sales						$	8					$	4					$	34					$	7
Selling, general and administrative						49						34						247						52
Research and development						142						65						594						103
Total						$	199					$	103					$	875					$	162

No share-based compensation cost was capitalized for the three and nine months ended December 31, 2023 and 2022.

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10 - Income Taxes

For the three months ended December 31, 2023 and 2022, income tax expense was $59.0 million and $46.0 million, respectively. For the nine months ended December 31, 2023 and 2022, income tax expense was $72.0 million and $145.0 million, respectively. For the three months ended December 31, 2023 and 2022, the income tax expense as a percentage of income before taxes was 40.4% and 20.2%, respectively. For the nine months ended December 31, 2023 and 2022, the income tax expense as a percentage of income before taxes was 46.8% and 21.8%, respectively.

The effective rate increased compared to the same period last year primarily due to the impact of the incremental share-based payment costs (see Note 9 - Share-based Compensation, for further details) in the three and nine months ended December 31, 2023, part of which does not give rise to a tax benefit due to irrecoverable withholding tax.

For the three months ended December 31, 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 nine months ended December 31, 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.

11 - Net Income (Loss) Per Share

The following table presents a reconciliation of basic and diluted earnings per share computations for all periods presented:

						Three Months Ended December 31,												Nine Months Ended December 31,
(in millions, except shares and per share amounts)						2023						2022						2023						2022
Net income (loss)						$	87					$	182					$	82					$	521
Weighted average ordinary shares used to calculate basic net income (loss) per share (1)						1,026,894,266						1,025,234,000						1,025,815,812						1,025,234,000
Equity-classified awards						21,994,223						2,684,937						14,347,642						1,722,431
Weighted average ordinary shares used to calculate diluted net income (loss) per share						1,048,888,489						1,027,918,937						1,040,163,454						1,026,956,431
Net income (loss) per ordinary share - basic						$	0.08					$	0.18					$	0.08					$	0.51
Net income (loss) per ordinary share - diluted						$	0.08					$	0.18					$	0.08					$	0.51

(1)    For the three and nine months ended December 31, 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:

			Three Months Ended December 31,												Nine Months Ended December 31,
			2023						2022						2023						2022
Restricted stock units (1)			335,863						16,974,842						335,863						16,974,842
Executive awards (2)			362,028						243,616						362,028						243,616
Total			697,891						17,218,458						697,891						17,218,458

(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

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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.

12 - 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. In September 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 nine months ended December 31, 2023 and 2022.

Kronos Guarantee

In March 2022, a wholly owned United Kingdom subsidiary of SoftBank Group Corp. (“SoftBank Group”), Kronos I (UK) Limited (“Kronos”), was created for the purpose of SoftBank Group 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 Group pledged its ownership interest in the Company by transferring such interest to an entity that sits between Kronos and the Company, and SoftBank Group has no further obligation under the Facility Agreement. In September 2023, prior to the closing of the IPO, SoftBank Group paid the Facility Agreement and the Company’s associated terms, restrictions and guarantee were terminated.

Arduino Guarantee

The Company is guarantor for a $5.5 million credit facility available to Arduino. As of December 31, 2023 and March 31, 2023, no claims have been made against the guaranty. The guaranty expired in January 2024 and was extended by 12 months, expiring in January 2025.

13 - 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 December 31, 2023 and 2022, the Company recognized revenue of $202.5 million and $189.0 million, respectively, and recognized expenses of $24.1 million and $13.0 million, respectively, under a service share arrangement with Arm China. For the nine months ended December 31, 2023 and 2022, the Company recognized

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revenue of $503.4 million and $515.0 million, respectively, and recognized expenses of $57.7 million and $44.0 million, respectively, under a service share arrangement with Arm China. In December 2023, the Company terminated an agreement with Arm China for certain software engineering-related services, which will now be brought in-house, and recognized $5.5 million of contract termination costs in disposal, restructuring and other operating expenses, net on the Condensed Consolidated Income Statements. The Company leases certain assets to Arm China and rental income was immaterial for all periods presented herein.

As of December 31, 2023, the Company had a net receivable of $192.2 million ($216.4 million receivable less $24.2 million payable) from Arm China. As of December 31, 2023, the Company had contract liabilities of $97.9 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 relating to Arm China.

See Note 4 - Equity Investments, for further details of the impact of Acetone Limited on the Company’s results.

Other Entities Related by Virtue of Common Control by SoftBank Group

The Company had revenue transactions, along with accounts receivable and contract liabilities balances, with other entities by virtue of common control by SoftBank Group. For the three months ended December 31, 2023, the Company did not recognize revenue from other entities controlled by Softbank Group. For the three months ended December 31, 2022, the Company recognized revenue of $0.4 million from other entities controlled by Softbank Group. For the nine months ended December 31, 2023 and 2022, the Company recognized revenue of $0.6 million and $1.0 million, respectively, from other entities controlled by SoftBank Group. As of December 31, 2023, the Company had accounts receivable of $0.2 million and contract liabilities of $1.6 million. 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, from other entities controlled by SoftBank Group. The Company also had immaterial lessee leases with a certain related party by virtue of common control by SoftBank Group.

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, for which the Company has more than virtually no influence (i.e., at least 3% to 5% ownership) (such investees, “Significant Influence Investees”). For the three months ended December 31, 2023 and 2022, the Company recognized revenue of $45.6 million and $1.7 million, respectively, from Significant Influence Investees. For the nine months ended December 31, 2023 and 2022, the Company recognized revenue of $46.7 million and $4.4 million, respectively, from Significant Influence Investees. The increased revenue this period is due to recognition of amounts associated with a large licensing contract that were previously required to be deferred.

As of December 31, 2023, the Company had accounts receivable and contract assets of $0.2 million and $16.4 million, respectively, related to contracts with Significant Influence Investees. As of December 31, 2023, the Company did not have contract liabilities related to contracts with Significant Influence Investees. As of March 31, 2023, the Company had accounts receivable, contract assets and contract liabilities related to contracts with Significant Influence Investees of $0.5 million, $8.7 million and $30.2 million, respectively.

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For the three months ended December 31, 2023, the Company recognized aggregate distributions, dividends and returns of capital from certain equity investments of $4.0 million. No distributions, dividends, or returns of capital were recognized in the three months ended December 31, 2022.

For the nine months ended December 31, 2023 and 2022, the Company recognized aggregate distributions, dividends and returns of capital from certain equity investments of $6.4 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 December 31, 2023 and 2022, the Company incurred subscription costs of $2.7 million and $2.3 million, respectively, from Linaro. For the nine months ended December 31, 2023 and 2022, the Company incurred subscription costs of $7.4 million and $6.5 million, respectively, from Linaro. As of December 31, 2023 and March 31, 2023, $0.4 million and $0.3 million, respectively, was recorded in other current liabilities on the Condensed Consolidated Balance Sheets.

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 December 31, 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 on the Condensed Consolidated Balance Sheets.

Loans to Related Parties

As of December 31, 2023 and March 31, 2023, the Company had a loan receivable of $16.0 million and $19.2 million, respectively, with Arduino, a related party, which was subject to impairment considerations. As of December 31, 2023 and March 31, 2023, the Company also had a loan receivable of $3.1 million and $3.0 million, respectively, with Cerfe Labs, Inc, a related party, which remains fully impaired. See Note 5 - Financial Instruments, for further information regarding this loan.

As of December 31, 2023 and March 31, 2023, the outstanding balance of the convertible promissory note with Ampere, a related party, was $32.0 million and $30.9 million, respectively. The Company’s maximum exposure to loss are the amounts invested in, and advanced to, Ampere as of December 31, 2023.

Other relationships

The Company engaged Raine Securities LLC, a related party, for certain advisory services in connection with the IPO. No amounts were incurred during the three months ended December 31, 2023. For the nine months ended December 31, 2023, the Company incurred $10.7 million in expenses, of which $5.2 million was reimbursed by the underwriters for the IPO. For the three and nine months ended December 31, 2022, under a separate agreement with Raine Securities LLC, the Company incurred $0.6 million and $1.9 million in expenses, respectively. As of March 31, 2023, the Company had recorded other current liabilities of $2.5 million. As of December 31, 2023 the Company has settled all liabilities with this related party.

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v3.24.0.1

Cover Page	9 Months Ended
	Dec. 31, 2023
Cover [Abstract]
Document Type	6-K
Entity Central Index Key	0001973239
Current Fiscal Year End Date	--03-31
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Registrant Name	ARM HOLDINGS PLC /UK

v3.24.0.1

Condensed Consolidated Income Statements - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue	$ 824.0	$ 724.0	$ 2,305.0	$ 2,046.0
Cost of sales	(36.0)	(29.0)	(113.0)	(79.0)
Gross profit	788.0	695.0	2,192.0	1,967.0
Research and development	(432.0)	(286.0)	(1,395.0)	(752.0)
Selling, general and administrative	(216.0)	(163.0)	(702.0)	(488.0)
Disposal, restructuring and other operating expenses, net	(6.0)	(2.0)	(6.0)	(6.0)
Total operating expense	(654.0)	(451.0)	(2,103.0)	(1,246.0)
Operating income (loss)	134.0	244.0	89.0	721.0
Income (loss) from equity investments, net	(1.0)	(6.0)	(13.0)	(80.0)
Interest income, net	28.0	13.0	80.0	21.0
Other non-operating income (loss), net	(15.0)	(23.0)	(2.0)	4.0
Income (loss) before income taxes	146.0	228.0	154.0	666.0
Income tax benefit (expense)	(59.0)	(46.0)	(72.0)	(145.0)
Net income (loss)	$ 87.0	$ 182.0	$ 82.0	$ 521.0
Net income (loss) per share attributable to ordinary shareholders
Basic (in USD per share)	$ 0.08	$ 0.18	$ 0.08	$ 0.51
Diluted (in USD per share)	$ 0.08	$ 0.18	$ 0.08	$ 0.51
Weighted average ordinary shares outstanding
Basic (in shares)	1,026,894,266	1,025,234,000	1,025,815,812	1,025,234,000
Diluted (in shares)	1,048,888,489	1,027,918,937	1,040,163,454	1,026,956,431
External Customers
Revenue	$ 576.0	$ 533.0	$ 1,755.0	$ 1,526.0
Related Parties
Revenue	$ 248.0	$ 191.0	$ 550.0	$ 520.0

v3.24.0.1

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 87	$ 182	$ 82	$ 521
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	23	37	13	(34)
Net change of the effective portion of designated cash flow hedges	13	25	(1)	4
Total comprehensive income (loss)	$ 123	$ 244	$ 94	$ 491

v3.24.0.1

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2023	Mar. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,551	$ 1,554
Short-term investments	850	661
Accounts receivable, net (including receivables from related parties of $217 and $402 as of December 31, 2023 and March 31, 2023, respectively)	799	999
Contract assets (including contract assets from related parties of $16 and $9 as of December 31, 2023 and March 31, 2023, respectively)	280	154
Prepaid expenses and other current assets	148	169
Total current assets	3,628	3,537
Non-current assets:
Property and equipment, net	221	185
Operating lease right of use assets	204	206
Equity investments (including investments held at fair value of $576 and $592 as of December 31, 2023 and March 31, 2023, respectively)	748	723
Goodwill	1,628	1,620
Intangible assets, net	163	138
Deferred tax assets	140	139
Non-current portion of contract assets	143	116
Other non-current assets	240	202
Total non-current assets	3,487	3,329
Total assets	7,115	6,866
Current liabilities:
Accrued compensation and benefits and share-based compensation	211	589
Tax liabilities	127	162
Contract liabilities (including contract liabilities from related parties of $100 and $135 as of December 31, 2023 and March 31, 2023, respectively)	223	293
Operating lease liabilities	26	26
Other current liabilities (including payables to related parties of $25 and $17 as of December 31, 2023 and March 31, 2023, respectively)	279	293
Total current liabilities	866	1,363
Non-current liabilities:
Non-current portion of accrued compensation and share-based compensation	18	152
Deferred tax liabilities	237	262
Non-current portion of contract liabilities	734	807
Non-current portion of operating lease liabilities	195	193
Other non-current liabilities	61	38
Total non-current liabilities	1,245	1,452
Liabilities	2,111	2,815
Commitments and contingencies (Note 12)
Shareholders’ equity:
Ordinary shares, $0.001 par value; 1,088,334,144 shares authorized and 1,028,075,347 shares issued and outstanding as of December 31, 2023; and 1,025,234,000 shares authorized, issued and outstanding as of March 31, 2023	2	2
Additional paid-in capital	2,087	1,216
Accumulated other comprehensive income	388	376
Retained earnings	2,527	2,457
Total shareholders’ equity	5,004	4,051
Total liabilities and shareholders’ equity	$ 7,115	$ 6,866

v3.24.0.1

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2023	Mar. 31, 2023
Accounts receivable, net	$ 799	$ 999
Contract assets	280	154
Equity method investments under fair value option	576	592
Contract liabilities	223	293
Other current liabilities	$ 279	$ 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)	1,028,075,347	1,025,234,000
Common stock, shares, outstanding (in shares)	1,028,075,347	1,025,234,000
Related Parties
Accounts receivable, net	$ 217	$ 402
Contract assets	16	9
Contract liabilities	100	135
Other current liabilities	$ 25	$ 17

v3.24.0.1

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions		Total	Ordinary Shares	Additional Paid- in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Balances, beginning of period (in shares) at Mar. 31, 2022			1,025,234,000
Balance, beginning of period at Mar. 31, 2022		$ 3,548	$ 2	$ 1,214	$ 399	$ 1,933
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		521				521
Net change of the effective portion of designated cash flow hedges		4			4
Foreign currency translation adjustments, net of tax		(34)			(34)
Share-based compensation cost		0		0
Tax withholding on vested shares (in shares)			(1,969,752)
Balances, ending of period (in shares) at Dec. 31, 2022			1,025,234,000
Balance, ending of period at Dec. 31, 2022		4,039	$ 2	1,214	369	2,454
Balances, beginning of period (in shares) at Sep. 30, 2022			1,025,234,000
Balance, beginning of period at Sep. 30, 2022		3,852	$ 2	1,271	307	2,272
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		182				182
Net change of the effective portion of designated cash flow hedges		25			25
Foreign currency translation adjustments, net of tax		37			37
Share-based compensation cost		(57)		(57)
Balances, ending of period (in shares) at Dec. 31, 2022			1,025,234,000
Balance, ending of period at Dec. 31, 2022		$ 4,039	$ 2	1,214	369	2,454
Balances, beginning of period (in shares) at Mar. 31, 2023		1,025,234,000	1,025,234,000
Balance, beginning of period at Mar. 31, 2023		$ 4,051	$ 2	1,216	376	2,457
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		82				82
Net change of the effective portion of designated cash flow hedges		(1)			(1)
Foreign currency translation adjustments, net of tax		13			13
Share-based compensation cost		639		639
Issuance of vested shares from share-based payment arrangements (in shares)			4,811,099
Tax withholding on vested shares from share-based payment arrangements		(111)		(111)
Reclassification of RSU awards previously liability-classified	[1]	343		343
Distribution to majority ordinary shareholder related to Pelion IOT Limited		$ (12)				(12)
Balances, ending of period (in shares) at Dec. 31, 2023		1,028,075,347	1,028,075,347
Balance, ending of period at Dec. 31, 2023		$ 5,004	$ 2	2,087	388	2,527
Balances, beginning of period (in shares) at Sep. 30, 2023			1,025,234,000
Balance, beginning of period at Sep. 30, 2023		4,773	$ 2	1,979	352	2,440
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)		87				87
Net change of the effective portion of designated cash flow hedges		13			13
Foreign currency translation adjustments, net of tax		23			23
Share-based compensation cost		196		196
Issuance of vested shares from share-based payment arrangements (in shares)			4,811,099
Tax withholding on vested shares (in shares)			(1,969,752)
Tax withholding on vested shares from share-based payment arrangements		$ (88)		(88)
Balances, ending of period (in shares) at Dec. 31, 2023		1,028,075,347	1,028,075,347
Balance, ending of period at Dec. 31, 2023		$ 5,004	$ 2	$ 2,087	$ 388	$ 2,527
[1] Includes approximately $212 million of share-based compensation cost recognized in the nine months ended December 31, 2023 for RSU awards previously liability-classified.

v3.24.0.1

Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Millions	9 Months Ended
	Dec. 31, 2023 USD ($)
Share-based compensation cost	$ 639
Restricted Stock Units, Liability-Classified
Share-based compensation cost	$ 212

v3.24.0.1

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows provided by (used for) operating activities:
Net income	$ 82.0	$ 521.0
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	124.0	130.0
Deferred income taxes	(26.0)	(26.0)
Income (loss) from equity investments, net	13.0	80.0
Share-based compensation cost	852.0	85.0
Operating lease expense	26.0	26.0
Other non-cash operating activities, net	(2.0)	(6.0)
Changes in assets and liabilities:
Accounts receivable, net (including receivables from related parties)	200.0	(152.0)
Contract assets, net (including contract assets from related parties)	(154.0)	7.0
Prepaid expenses and other assets	(19.0)	29.0
Accrued compensation and benefits and share-based compensation	(383.0)	(398.0)
Contract liabilities (including contract liabilities from related parties)	(148.0)	(10.0)
Tax liabilities	(46.0)	87.0
Operating lease liabilities	(18.0)	(53.0)
Other liabilities (including payables to related parties)	(78.0)	(64.0)
Net cash provided by (used for) operating activities	423.0	256.0
Cash flows provided by (used for) investing activities
Purchase of short-term investments	(540.0)	(985.0)
Proceeds from maturity of short-term investments	351.0	945.0
Purchases of equity investments	(32.0)	(4.0)
Purchases of intangible assets	(43.0)	(25.0)
Purchases of property and equipment	(81.0)	(48.0)
Other investing activities, net, including investments in convertible loans	(1.0)	0.0
Net cash provided by (used for) investing activities	(346.0)	(117.0)
Cash flows provided by (used for) financing activities
Payment of intangible asset obligations	(29.0)	(31.0)
Other financing activities, net	(10.0)	(1.0)
Payment of withholding tax on vested shares	(48.0)	0.0
Net cash provided by (used for) financing activities	(87.0)	(32.0)
Effect of foreign exchange rate changes on cash and cash equivalents	7.0	(10.0)
Net increase (decrease) in cash and cash equivalents	(3.0)	97.0
Cash and cash equivalents at the beginning of the period	1,554.0	1,004.0
Cash and cash equivalents at the end of the period	1,551.0	1,101.0
Non-cash operating, investing and financing activities:
Non-cash additions in property and equipment	18.0	1.0
Non-cash additions in intangible assets	47.0	0.0
Non-cash additions in operating lease right of use assets	18.0	6.0
Non-cash additions of operating lease liabilities	18.0	6.0
Non-cash additions to equity investments from conversion of certain receivables	9.0	0.0
Non-cash distributions to shareholders	12.0	0.0
Non-cash reclassification of share-based compensation costs	343.0	0.0
Non-cash withholding tax on vested shares	$ 63.0	$ 0.0

v3.24.0.1

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 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”), each representing one ordinary share of the Company, 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 controlling shareholder sold an aggregate of 102,500,000 ADSs in the IPO 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 were satisfied or partially satisfied as of September 13, 2023. See Note 9 - 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. 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 7 - Fair Value. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures: In November 2023, FASB issued ASU 2023-07 which requires incremental reportable segment disclosures. The new standard requires that a public entity disclose significant segment expenses, the title and position of the CODM, and how the CODM uses the reported measures in assessing performance and deciding how to allocate resources. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. This ASU will result in additional required disclosures being included in our consolidated financial statements when adopted. The Company will adopt this standard beginning April 1, 2024. Income Taxes (Topic 740), Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU No. 2023-09, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will likely result in additional required disclosures being included in our consolidated financial statements when adopted. We are currently evaluating the provisions of this ASU.

v3.24.0.1

Revenue	9 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	3 - 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. This estimation process for the royalty revenue accrual is based off of customer sales which occur using estimates from sales trends and judgment for several key attributes, including industry estimates of expected shipments, the mix of products sold, 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: Three Months Ended December 31, External Customers Related Parties Total (in millions) 2023 2022 2023 2022 2023 2022 License and Other Revenue (1) $ 211  $ 159  $ 143  $ 140  $ 354  $ 299  Royalty Revenue 365  374  105  51  470  425  $ 576  $ 533  $ 248  $ 191  $ 824  $ 724  (1)    Includes over-time revenue of $37 million and $29 million and point-in-time revenue of $317 million and $270 million for the three months ended December 31, 2023 and 2022, respectively. Nine Months Ended December 31, External Customers Related Parties Total (in millions) 2023 2022 2023 2022 2023 2022 License and Other Revenue (1) $ 685  $ 401  $ 332  $ 344  $ 1,017  $ 745  Royalty Revenue 1,070  1,125  218  176  1,288  1,301  $ 1,755  $ 1,526  $ 550  $ 520  $ 2,305  $ 2,046  (1)    Includes over-time revenue of $84 million and $77 million and point-in-time revenue of $933 million and $668 million for the nine months ended December 31, 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 headquarters address by geographic regions: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 United States $ 387  $ 296  $ 1,010  $ 804  PRC (1) 206  191  525  521  Taiwan 100  86  381  283  Republic of Korea 50  71  157  185  Other countries 81  80  232  253  Total $ 824  $ 724  $ 2,305  $ 2,046  (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 December 31, 2023 and 2022, the Company had one customer that represented 25% and 26% of total revenue, respectively. No other customer represented 10% or more of total revenue for the three months ended December 31, 2023 and 2022. For the nine months ended December 31, 2023, the Company had two customers that collectively represented 34% of total revenue, with the single largest customer accounting for 22% of total revenue and the second largest customer accounting for 12% of total revenue. For the nine months ended December 31, 2022, the Company had two customers that collectively represented 36% of total revenue, with the single largest customer accounting for 25% of total revenue and the second largest customer accounting for 11% of total revenue. No other customer represented 10% or more of total revenue for the nine months ended December 31, 2023 and 2022. Receivables A summary of the components of accounts receivable, net is as follows: (in millions) As of December 31, 2023 As of March 31, 2023 Trade receivables $ 417  $ 625  Royalty receivables 385  377  Total gross receivables 802  1,002  Allowance for current expected credit losses (3) (3) Total accounts receivables, net $ 799  $ 999  As of December 31, 2023, the customer with the largest total receivables balance represented 27% of total receivables, the customer with the second largest total receivables balance represented 13% of total receivables, and the customer with the third largest total receivables balance represented 10% 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 December 31, 2023 or 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 $425.0 million and $254.1 million due to the timing of billings to customers, which fell into subsequent periods, as of December 31, 2023 and March 31, 2023, respectively, offset by $271.8 million and $250.7 million of contract assets transferred to accounts receivable, as of December 31, 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: (in millions) Total 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 169  Revenue recognized in the period that was included in the contract liability balance at the beginning of the period (213) Revenue recognized in the period that was included in the contract liability balance during the period (99) Balance as of December 31, 2023 $ 957  Current portion of contract liabilities $ 223  Non-current portion of contract liabilities $ 734  Satisfied Performance Obligations For the three months ended December 31, 2023 and 2022, revenue recognized from previously satisfied performance obligations in prior reporting periods was $529.3 million and $434.0 million, respectively. For the nine months ended December 31, 2023 and 2022, revenue recognized from previously satisfied performance obligations in prior reporting periods was $1,349.9 million and $1,329.0 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 December 31, 2023, the aggregate transaction price allocated to remaining performance obligations was $2,433.0 million, which includes $1.2 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, 26% over the subsequent 13-to 24-month period, and the remainder thereafter.

v3.24.0.1

Equity Investments	9 Months Ended
	Dec. 31, 2023
Investments, All Other Investments [Abstract]
Equity Investments	4 - Equity Investments A summary of the components of equity investments is as follows: (in millions) As of December 31, 2023 As of March 31, 2023 Equity method investments under fair value option $ 576  $ 592  Equity method investments under equity method 10  9  Non-marketable equity securities 162  122  Total equity investments $ 748  $ 723  Income (loss) from equity investments, net is as follows: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Equity method investments (1) $ (1) $ (2) $ (15) $ (82) Non-marketable equity securities (includes NAV) —  (4) 2  2  Total loss from equity investments, net $ (1) $ (6) $ (13) $ (80) (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. 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 and nine months ended December 31, 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 funds based on the indicated market values of the underlying assets or investment portfolios. As of December 31, 2023 and March 31, 2023, the carrying value of equity method investments under the fair value option measured at NAV was $109.3 million and $109.4 million, respectively. For the three months ended December 31, 2023 and 2022, the Company recognized losses from changes in fair value of $1.1 million and $0.4 million for equity method investments accounted for under the NAV practical expedient. For the nine months ended December 31, 2023, the Company recognized gains from changes in fair value of $0.6 million for equity method investments accounted for under the NAV practical expedient. For the nine months ended December 31, 2022, the Company recognized losses from changes in fair value of $0.6 million 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 December 31, 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 December 31, 2023, the Company did not have any fair value adjustment in connection with the equity method investment in Acetone Limited. For the three months ended December 31, 2022, the Company recognized fair value gain of $7.2 million in connection with the equity method investment in Acetone Limited. For the nine months ended December 31, 2023 and 2022, the Company recognized fair value losses of $15.6 million and $28.0 million, respectively, in income (loss) from equity investments, net on the Condensed Consolidated Income Statements. Ampere As of December 31, 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 nine months ended December 31, 2023, the Company did not recognize any changes in fair value in Ampere. For the three and nine months ended December 31, 2022, the Company recognized fair value losses of $8.9 million and $53.0 million, respectively, in loss from equity investments, net on the Condensed Consolidated Income Statements. As of December 31, 2023 and March 31, 2023, the outstanding balance of the convertible promissory note with Ampere was $32.0 million and $30.9 million, respectively 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 December 31, 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 December 31, 2023 and March 31, 2023, the carrying value of assets measured at NAV was $19.4 million and $18.0 million, respectively. For the three months ended December 31, 2023 and 2022, the Company recognized losses from changes in fair value of $0.1 million and $3.8 million, respectively, for non-marketable securities accounted for under the NAV practical expedient. For the nine months ended December 31, 2023 and 2022, the Company recognized gains of $2.2 million and losses of $10.8 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 L.P (“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 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 December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Observable price adjustments on non-marketable equity securities (includes NAV) $ —  $ (4) $ 2  $ 3  Impairment of non-marketable equity securities —  —  —  (1) Sale of non-marketable equity securities —  —  —  —  Total income (loss) from equity investments in non-marketable securities, net $ —  $ (4) $ 2  $ 2  For the three months ended December 31, 2023, the Company recognized $2.2 million in dividends from equity investments measured using the NAV practical expedient. For the three months ended December 31, 2022, the Company did not receive dividends from equity investments measured using the NAV practical expedient. For the nine months ended December 31, 2023 and 2022, dividends recognized from equity investments measured using the NAV practical expedient were $4.3 million and $0.3 million, respectively. The total amount of financial commitments to existing investees of the Company not provided for in the condensed consolidated financial statements was $20.3 million and $22.1 million as of December 31, 2023 and March 31, 2023, respectively.

v3.24.0.1

Financial Instruments	9 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Financial Instruments	5 - Financial Instruments Loans and Other Receivables Loans and other receivables carried at amortized cost is as follows: (in millions) As of December 31, 2023 As of March 31, 2023 Loans and other receivables carried at amortized cost Loans receivable $ 26  $ 25  Other receivables 7  18 Allowance for current expected credit losses (19) (22) Loans and other receivables carried at amortized cost, net $ 14  $ 21  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, a 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 December 31, 2023, the loan receivable of $16.0 million from Arduino remained fully impaired. The remaining balance of loans receivables as of December 31, 2023 comprised two five-year loans totaling $7.0 million issued to Allia Limited and a four-year loan of $3.1 million issued to Cerfe Labs, Inc that remained fully impaired. The remaining balance of loans receivables as of March 31, 2023 comprised a five-year loan of $3.1 million issued to Allia Limited and a four-year loan of $3.0 million issued to Cerfe Labs, Inc that was fully impaired in the fiscal year ended March 31, 2023. 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 December 31, 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 nine months ended December 31, 2023 and 2022, there were no material gains recognized.

v3.24.0.1

Derivatives	9 Months Ended
	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	6 - 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 December 31, 2023, the notional value of outstanding foreign currency forward contracts was £343.0 million and the fair value was $9.1 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: (in millions) As of December 31, 2023 As of March 31, 2023 Designated as cash flow hedges Foreign currency forward contracts $ 428  $ 411  The following table presents the fair value of the Company’s outstanding derivative instruments: Derivative Assets Derivative Liabilities (in millions) As of December 31, 2023 As of March 31, 2023 As of December 31, 2023 As of March 31, 2023 Designated as cash flow hedges Foreign currency forward contracts $ 10  $ 10  $ 1  $ 1  Cash Flow Hedge Gains (Losses) The following table presents net gains (losses) on foreign currency forward contracts designated as cash flow hedges: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Condensed Consolidated Statements of Comprehensive Income: Gains (losses) recognized in Accumulated other comprehensive income on cash flow hedge derivatives $ 17  $ 31  $ 15  $ (1) (Gains) losses reclassified from Accumulated other comprehensive income into income —  2  (16) 6  Tax benefit (expense) on cash flow hedges (4) (8) —  (1) Net change in fair value of the effective portion of designated cash flow hedges, net of tax (1) $ 13  $ 25  $ (1) $ 4  Condensed Consolidated Income Statements, before tax: —  Research and development $ —  $ (1) $ 9  $ (3) Selling, general and administrative expenses $ —  $ (1) $ 7  $ (3) (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 nine months ended December 31, 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: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Foreign currency forward contracts $ —  $ —  $ —  $ (30) The Company classifies foreign currency forward contracts as Level 2 fair value measurements pursuant to the fair value hierarchy. See Note 7 - Fair Value, for further details.

v3.24.0.1

Fair Value	9 Months Ended
	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value	7 - 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: As of December 31, 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 $ —  $ 1  $ —  $ 1  $ —  $ 1  $ —  $ 1  Total financial liabilities $ —  $ 1  $ —  $ 1  $ —  $ 1  $ —  $ 1  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: As of December 31, 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) $ 850  $ —  $ —  $ 850  $ 661  $ —  $ —  $ 661  Equity method investments(2) —  —  466  466  —  —  482  482  Convertible loans receivable —  —  32  32  —  —  31  31  Foreign currency forward contracts —  10  —  10  —  10 —  10 Total financial assets $ 850  $ 10  $ 498  $ 1,358  $ 661  $ 10  $ 513  $ 1,184  (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. 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 December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Fair value of financial assets at the beginning of the period $ 466  $ 445  $ 482  $ 524  Additions, net of contributions from shareholders of the Company —  —  —  —  Fair value losses recognized in the Condensed Consolidated Income Statements —  (2) (16) (81) Distributions to shareholders of the Company —  —  —  —  Fair value at the end of the period $ 466  $ 443  $ 466  $ 443  Convertible Loans Receivable Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Fair value of financial assets at the beginning of the period $ 32  $ 30  $ 31  $ 29  Additions —  —  —  —  Converted into equity —  —  —  —  Fair value gains recognized in the income statement —  —  1  1  Fair value at the end of the period $ 32  $ 30  $ 32  $ 30  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: As of December 31, 2023 and March 31, 2023 (in millions) Fair value as of December 31, 2023 Fair value as of March 31, 2023 Valuation Technique Unobservable Inputs Range of Estimates Equity Method Investments $466 $482 Acetone – Market-Calibration or discounted cash flow Ampere – PWER LTM Revenue Multiple Probability of initial public offering, time to future exit scenario, discount rate 1.4x - 1.7x   Probability weighted – 100% Discount Rate – 18.6% 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 December 31, 2023 and March 31, 2023, the Company’s maximum exposure to loss is the amounts invested in, and advanced to, Ampere. As of December 31, 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 December 31, 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 December 31, 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.

v3.24.0.1

Shareholders' Equity	9 Months Ended
	Dec. 31, 2023
Equity [Abstract]
Shareholders' Equity	8 - Shareholders’ Equity Employee Benefit Trust In September 2023, the Company established 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 EBT may acquire newly issued ordinary shares or ADSs at a nominal value or the trustee of the EBT has the power to acquire ordinary shares or ADSs of the Company in the open market, which purchases may be funded by one or more loans from the Company to the EBT or non-repayable gifts made by the Company to the EBT. In November 2023, the EBT purchased a nominal number of ADSs from the Company at par value that remained with the EBT as of December 31, 2023. These ADSs were expected to be transferred out of the EBT, in order to settle future vesting of 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.

v3.24.0.1

Share-based Compensation	9 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Compensation	9 - 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 December 31, 2023 and 2022, the Company recognized $53.3 million and $23.6 million of share-based compensation cost, respectively, and $4.7 million and $2.9 million of tax benefit associated with these awards, respectively. For the nine months ended December 31, 2023 and 2022, the Company recognized $474.4 million and $22.2 million of share-based compensation cost, respectively, and $40.5 million and $3.2 million of tax benefit associated with these awards, respectively. In connection with the IPO, all restricted share units (“RSU”) previously issued under the 2019 AEP were modified to be settled in ordinary shares of the Company except for those awards granted to employees of Arm Technology Israel Ltd., the Company’s Israeli subsidiary (“Arm Israel”). 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 (“ASC 718”) and changed the classification of the awards from liability-classified to equity-classified. During the nine months ended December 31, 2023, 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. 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% in March 2024. 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 Arm Israel, these awards remain liability-classified and the Company will remeasure the RSUs at fair value at each reporting period through the date of settlement. The table below identifies the award activity under the 2019 AEP: Awards Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 11,601,185 $ 54.47  Granted 2,603 54.51  Cancelled and forfeited (234,922) 54.51  Outstanding and expected to vest as of December 31, 2023 11,368,866 $ 54.70  (1)As of March 31, 2023, 2019 AEP outstanding awards were liability-classified with a weighted average fair value per RSU of $23.33. For periods presented prior to the IPO, the average grant date fair value per RSU represents the fair value at the 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. The IPO triggered a modification which reclassified RSUs from liability-classified to equity-classified in September 2023. As of December 31, 2023, the total outstanding liability-classified RSUs expected to vest were 144,914 with a weighted average fair value per RSU of $69.43 for Arm Israel. As of December 31, 2023, $579.2 million was recognized in additional paid-in capital and $9.4 million was recognized in accrued compensation and benefits and share-based compensation on the Condensed Consolidated Balance Sheets. 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 December 31, 2023, there was $33.6 million of total unrecognized compensation cost related to awards issued under the 2019 AEP expected to be recognized over a weighted-average period of 0.2 years . For the nine months ended December 31, 2023, the Company did not have any payments arising from normal course vesting events. For the nine months ended December 31, 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 December 31, 2023, the Company did not recognize any share-based compensation cost associated with this plan. For the three months ended December 31, 2022, $4.1 million of share-based compensation credit was recognized in connection with awards issued under the 2019 EIP. For the nine months ended December 31, 2023 and 2022, $6.2 million and $0.6 million, respectively, of share-based compensation cost and credit, respectively, was recognized in connection with awards issued under the 2019 EIP. The share-based compensation credit for the three and nine months ended December 31, 2022 was attributable to replacement awards issued in December 2022 and executive departures. For the three months ended December 31, 2023, the Company did not record any income tax benefit or expense in connection with the awards under the 2019 EIP. For the three months ended December 31, 2022, the income tax expense recorded was $1.1 million. For the nine months ended December 31, 2023, the Company did not record any income tax benefit or expense in connection with awards under the 2019 EIP. For the nine months ended December 31, 2022, the income tax expense recorded in connection with awards under the 2019 EIP was $0.5 million. In connection with the IPO, all RSUs previously issued under the 2019 EIP were modified to be settled in ordinary shares of the Company. In accordance with ASC 718, the Company changed the classification of the awards from liability-classified to equity-classified at that time. During the nine months ended December 31, 2023, 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 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 December 31, 2023, all fully vested equity-classified awards were settled in ordinary shares of the Company. The table below identifies the award activity under the 2019 EIP: Awards Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 192,999  $ 51.00  Vested (192,999) 51.00  Outstanding and expected to vest as of December 31, 2023 —  $ —  (1)As of March 31, 2023, 2019 EIP outstanding awards were liability-classified with a weighted average fair value per RSU of $37.43. For periods presented prior to the IPO, the average grant date fair value per RSU represents the fair value at the 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 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 nine months ended December 31, 2023 and 2022. Phantom Share Scheme (Cash-Settled) As of December 31, 2023 and March 31, 2023, there were no phantom shares outstanding. The Company recognized share-based compensation cost of $0.3 million in connection with phantom shares for the three months ended December 31, 2022. The Company recognized share-based compensation credit of $0.5 million in connection with phantom shares for the nine months ended December 31, 2022, which was attributable to executive departures. No share-based compensation cost and tax expense or benefit related to phantom shares was recognized for the three and nine months ended December 31, 2023. As of March 31, 2023, $1.1 million related to phantom shares was recognized in accrued compensation and benefits and share-based compensation on the Condensed Consolidated Balance Sheets. For the nine months ended December 31, 2023, the Company paid $0.9 million for vested phantom shares. The variance between the amount accrued and paid of $1.1 million and $0.9 million, respectively, was driven by foreign exchange differences as participants were paid in foreign denominated currencies. As of December 31, 2023, the Company did not have any unpaid amounts in relation to vested phantom share 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”) and to grant two types of executive awards to certain of the Company’s executive officers (such awards, the “Annual Awards” and “Launch Awards” and collectively, the “Executive Awards”). The All Employee Awards and Executive Awards were historically disclosed separately due to pre-IPO presentation differences related to classification, but are now disclosed together as post-IPO all are equity-classified, as discussed in more detail below. The All Employee Awards vest in tranches, require continuous service through the vesting date, and are subject to graded vesting over time. At the time of issuance, the Company intended to settle the All Employee Awards in ordinary shares at the vesting date, and such RSU awards were accounted for as equity-classified awards. Launch Awards vest in tranches and require continuous service through the vesting dates and are subject to graded vesting over a period of three years. Annual Awards include a portion that vests over a three-year continuous service period and another portion that is subject to continuous service and satisfaction of certain Company performance conditions. The time-based portion of the Annual Awards vest over a three-year period. The Annual Awards that are subject to continuous service and satisfaction of certain Company performance conditions vest upon the satisfaction of performance metrics as established for each one-year performance period and have the potential to vest between 0% and 200% of the original fixed monetary amount of the award depending on the achievement of annual performance metrics. The 2022 RSU Plan allows for either cash or share settlement of the RSU awards by tranche at the discretion of the remuneration committee of the Company’s board of directors (the “remuneration committee”). In November 2022, the Company issued Executive Awards under the 2022 RSU Plan. These entitled participants to a fixed amount of cash or, upon the occurrence of a change in control or an initial public offering, a variable number of ordinary shares of the Company equal to a fixed amount of cash, at the discretion of the remuneration committee. Executive Awards granted were originally accounted for as liability-classified awards and upon the IPO, each Executive Award was converted into a variable number of shares based on the closing ADS price of the Company at the IPO date. As of December 31, 2023, all the 2022 RSU Plan awards were expected to be settled in ordinary shares at the vesting date. In November 2022, the Company determined that it would settle the first tranche of the All Employee Awards 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 and reclassified the affected portion of the award of $57.0 million 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 IPO. Upon the IPO, the All Employee Awards under the 2022 RSU Plan were accounted for using the vesting schedules applicable after an IPO which resulted in an acceleration of compensation cost. The Company accounted for the changes as a modification in accordance with ASC 718 and recorded $17.7 million of accelerated share-based compensation cost at the modification date which affected 5,041 employees. 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 IPO 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. 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 of all Executive Awards outstanding under the 2022 RSU Plan. 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 award activity under the 2022 RSU Plan: Awards(1) Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 11,129,734 $ 35.87  Executive Awards converted from liability awards 1,875,202 51.00  Granted 17,134,484 43.68  Vested(2) (4,969,122) 37.44  Cancelled and forfeited (532,881) 40.27  Outstanding and expected to vest as of December 31, 2023 24,637,417 $ 41.97  (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. (2)    Includes 351,022 liability-classified awards vested and settled in cash in the nine months ended December 31, 2023. 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 nine months ended December 31, 2023, the Company paid $269.0 million arising from the normal vesting of liability-classified share-based awards under the 2022 RSU Plan. All liability-classified awards under the 2022 RSU Plan were vested as of August 15, 2023 and were paid as of September 30, 2023. For the three months ended December 31, 2023 and 2022, share-based compensation cost of $136.7 million and $83.3 million, respectively, was recognized in connection with all awards issued under the 2022 RSU Plan. For the nine months ended December 31, 2023 and 2022, share-based compensation cost of $385.8 million and $140.8 million, respectively, was recognized in connection with RSUs granted under the 2022 Equity Plan. Tax benefits recorded in connection with the 2022 RSU Plan for the three months ended December 31, 2023 and 2022 were $20.3 million and $10.5 million, respectively. Tax benefits recorded for the nine months ended December 31, 2023 and 2022 were $54.3 million and $20.9 million, respectively. As of March 31, 2023, the Company recognized $1.9 million, $253.1 million, and $13.8 million in additional paid-in capital, accrued compensation and benefits and share-based compensation and non-current portion of accrued compensation and share-based compensation, respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2023, there was $823.9 million total unrecognized compensation expense related to all awards issued under the 2022 RSU Plan expected to be recognized over a weighted-average period of 1.0 year and there were no liability-classified RSUs under the 2022 RSU Plan. Omnibus Incentive Plan In August 2023, the Company’s board of directors adopted the Omnibus Incentive Plan (the “Omnibus Incentive Plan”) which became effective in September 2023. The Omnibus Incentive Plan allows for the grant of incentive awards to employees, executive directors, and non-employees, including non-employee directors and consultants of the Company and its subsidiaries. Participants may elect not to participate in the plan. The types of incentive awards granted under the Omnibus Incentive Plan is determined by the Company’s board of directors and the remuneration committee, and the Omnibus Incentive Plan allows for the grant of stock options, share appreciation rights (“SARs”), restricted shares, RSUs, performance stock units (“PSUs”), other awards of cash, shares or other property (which may include a specified cash amount that is payable in cash or shares, or awards tied to the appreciation in the value of shares), dividends and dividend equivalents. Vesting conditions applicable to awards may be based on continued service, achievement of company, business unit or other performance objectives, or such other criteria as the remuneration committee may establish. In October 2023, the Company started to grant RSUs and PSUs under the Omnibus Incentive Plan to employees, including executives of the Company. The RSUs and PSUs granted neither carry rights to dividends nor voting rights until the shares are issued or transferred to the recipient. The Omnibus Incentive Plan allows for either cash or share settlement of the awards by tranche, if applicable, at the discretion of the remuneration committee. At the time of issuance, the Company intended to settle the RSUs and PSUs in shares at the vesting date and such awards are accounted for as equity-classified awards. The RSUs were granted to existing employees and new hires of the Company and its subsidiaries, Arm Israel and Arm France SAS and vest in tranches, require continuous service through the vesting date and are subject to graded vesting over a period of three years. RSUs granted to employees and new hires of subsidiaries in Israel and France substantially share the same terms as the existing RSUs under the 2022 RSU Plan with differences limited to the vesting schedules. PSUs were awarded to executives of the Company and include a portion that vests over a three-year continuous service period and another portion that is subject to continuous service and satisfaction of certain Company performance conditions. The time-based portion of the PSUs vest over a three-year period. The PSUs that are subject to continuous service and satisfaction of certain Company performance conditions vest upon the satisfaction of performance metrics as established for each one-year performance period and have the potential to vest between 0% and 200% of the original award amount depending on the achievement of annual performance metrics. Except for performance awards with specific performance criteria, the Company recognizes share based compensation cost using the straight-line method over the requisite service period of the award, net of estimated forfeitures. Awards are forfeited if an employee leaves the Company before the awards vest. For all periods presented, the maximum number of ordinary shares that may be issued under the Omnibus Incentive Plan is equal to the sum of (i) 20,500,000 ordinary shares and (ii) an annual increase on April 1 of each year beginning on April 1, 2024 and ending on April 1, 2028, equal to the lesser of (A) 2% of the aggregate number of ordinary shares outstanding on March 31 of the immediately preceding fiscal year and (B) such smaller number of ordinary shares as determined by the Company’s board of directors or the remuneration committee. No more than 20,500,000 ordinary shares may be issued under the Omnibus Incentive Plan upon the exercise of incentive stock options. The table below identifies all award activity under the Omnibus Incentive Plan: Awards(1) Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 —  $ —  Granted 1,408,468  57.36  Cancelled and forfeited (7,533) 63.07 Outstanding and expected to vest as of December 31, 2023 1,400,935  $ 57.33  (1)    Awards and weighted average grant date per share exclude shares related to PSUs that currently have no grant date as the future performance objectives have not yet been defined and/or communicated to participants of the plan. The Company uses the closing ADS price of the Company on the date of grant as the fair value of awards. For each of the three and nine months ended December 31, 2023, $7.3 million of share-based compensation cost and $1.3 million of tax benefit was recognized in connection with the equity-classified awards issued under the Omnibus Incentive Plan. As of December 31, 2023, there was $73.0 million of total unrecognized compensation cost 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: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Cost of sales $ 8  $ 4  $ 34  $ 7  Selling, general and administrative 49  34  247  52  Research and development 142  65  594  103  Total $ 199  $ 103  $ 875  $ 162  No share-based compensation cost was capitalized for the three and nine months ended December 31, 2023 and 2022.

v3.24.0.1

Income Taxes	9 Months Ended
	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	10 - Income Taxes For the three months ended December 31, 2023 and 2022, income tax expense was $59.0 million and $46.0 million, respectively. For the nine months ended December 31, 2023 and 2022, income tax expense was $72.0 million and $145.0 million, respectively. For the three months ended December 31, 2023 and 2022, the income tax expense as a percentage of income before taxes was 40.4% and 20.2%, respectively. For the nine months ended December 31, 2023 and 2022, the income tax expense as a percentage of income before taxes was 46.8% and 21.8%, respectively. The effective rate increased compared to the same period last year primarily due to the impact of the incremental share-based payment costs (see Note 9 - Share-based Compensation, for further details) in the three and nine months ended December 31, 2023, part of which does not give rise to a tax benefit due to irrecoverable withholding tax. For the three months ended December 31, 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 nine months ended December 31, 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.

v3.24.0.1

Net Income (Loss) Per Share	9 Months Ended
	Dec. 31, 2023
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	11 - Net Income (Loss) Per Share The following table presents a reconciliation of basic and diluted earnings per share computations for all periods presented: Three Months Ended December 31, Nine Months Ended December 31, (in millions, except shares and per share amounts) 2023 2022 2023 2022 Net income (loss) $ 87  $ 182  $ 82  $ 521  Weighted average ordinary shares used to calculate basic net income (loss) per share (1) 1,026,894,266 1,025,234,000 1,025,815,812 1,025,234,000 Equity-classified awards 21,994,223  2,684,937  14,347,642  1,722,431  Weighted average ordinary shares used to calculate diluted net income (loss) per share 1,048,888,489  1,027,918,937  1,040,163,454  1,026,956,431  Net income (loss) per ordinary share - basic $ 0.08  $ 0.18  $ 0.08  $ 0.51  Net income (loss) per ordinary share - diluted $ 0.08  $ 0.18  $ 0.08  $ 0.51  (1)    For the three and nine months ended December 31, 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: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Restricted stock units (1) 335,863 16,974,842 335,863 16,974,842 Executive awards (2) 362,028  243,616  362,028  243,616  Total 697,891  17,218,458  697,891  17,218,458  (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.

v3.24.0.1

Commitments and Contingencies	9 Months Ended
	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12 - 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. In September 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 nine months ended December 31, 2023 and 2022. Kronos Guarantee In March 2022, a wholly owned United Kingdom subsidiary of SoftBank Group Corp. (“SoftBank Group”), Kronos I (UK) Limited (“Kronos”), was created for the purpose of SoftBank Group 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 Group pledged its ownership interest in the Company by transferring such interest to an entity that sits between Kronos and the Company, and SoftBank Group has no further obligation under the Facility Agreement. In September 2023, prior to the closing of the IPO, SoftBank Group paid the Facility Agreement and the Company’s associated terms, restrictions and guarantee were terminated. Arduino Guarantee The Company is guarantor for a $5.5 million credit facility available to Arduino. As of December 31, 2023 and March 31, 2023, no claims have been made against the guaranty. The guaranty expired in January 2024 and was extended by 12 months, expiring in January 2025.

v3.24.0.1

Related Party Transactions	9 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	13 - 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 December 31, 2023 and 2022, the Company recognized revenue of $202.5 million and $189.0 million, respectively, and recognized expenses of $24.1 million and $13.0 million, respectively, under a service share arrangement with Arm China. For the nine months ended December 31, 2023 and 2022, the Company recognized revenue of $503.4 million and $515.0 million, respectively, and recognized expenses of $57.7 million and $44.0 million, respectively, under a service share arrangement with Arm China. In December 2023, the Company terminated an agreement with Arm China for certain software engineering-related services, which will now be brought in-house, and recognized $5.5 million of contract termination costs in disposal, restructuring and other operating expenses, net on the Condensed Consolidated Income Statements. The Company leases certain assets to Arm China and rental income was immaterial for all periods presented herein. As of December 31, 2023, the Company had a net receivable of $192.2 million ($216.4 million receivable less $24.2 million payable) from Arm China. As of December 31, 2023, the Company had contract liabilities of $97.9 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 relating to Arm China. See Note 4 - Equity Investments, for further details of the impact of Acetone Limited on the Company’s results. Other Entities Related by Virtue of Common Control by SoftBank Group The Company had revenue transactions, along with accounts receivable and contract liabilities balances, with other entities by virtue of common control by SoftBank Group. For the three months ended December 31, 2023, the Company did not recognize revenue from other entities controlled by Softbank Group. For the three months ended December 31, 2022, the Company recognized revenue of $0.4 million from other entities controlled by Softbank Group. For the nine months ended December 31, 2023 and 2022, the Company recognized revenue of $0.6 million and $1.0 million, respectively, from other entities controlled by SoftBank Group. As of December 31, 2023, the Company had accounts receivable of $0.2 million and contract liabilities of $1.6 million. 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, from other entities controlled by SoftBank Group. The Company also had immaterial lessee leases with a certain related party by virtue of common control by SoftBank Group. 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, for which the Company has more than virtually no influence (i.e., at least 3% to 5% ownership) (such investees, “Significant Influence Investees”). For the three months ended December 31, 2023 and 2022, the Company recognized revenue of $45.6 million and $1.7 million, respectively, from Significant Influence Investees. For the nine months ended December 31, 2023 and 2022, the Company recognized revenue of $46.7 million and $4.4 million, respectively, from Significant Influence Investees. The increased revenue this period is due to recognition of amounts associated with a large licensing contract that were previously required to be deferred. As of December 31, 2023, the Company had accounts receivable and contract assets of $0.2 million and $16.4 million, respectively, related to contracts with Significant Influence Investees. As of December 31, 2023, the Company did not have contract liabilities related to contracts with Significant Influence Investees. As of March 31, 2023, the Company had accounts receivable, contract assets and contract liabilities related to contracts with Significant Influence Investees of $0.5 million, $8.7 million and $30.2 million, respectively. For the three months ended December 31, 2023, the Company recognized aggregate distributions, dividends and returns of capital from certain equity investments of $4.0 million. No distributions, dividends, or returns of capital were recognized in the three months ended December 31, 2022. For the nine months ended December 31, 2023 and 2022, the Company recognized aggregate distributions, dividends and returns of capital from certain equity investments of $6.4 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 December 31, 2023 and 2022, the Company incurred subscription costs of $2.7 million and $2.3 million, respectively, from Linaro. For the nine months ended December 31, 2023 and 2022, the Company incurred subscription costs of $7.4 million and $6.5 million, respectively, from Linaro. As of December 31, 2023 and March 31, 2023, $0.4 million and $0.3 million, respectively, was recorded in other current liabilities on the Condensed Consolidated Balance Sheets. 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 December 31, 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 on the Condensed Consolidated Balance Sheets. Loans to Related Parties As of December 31, 2023 and March 31, 2023, the Company had a loan receivable of $16.0 million and $19.2 million, respectively, with Arduino, a related party, which was subject to impairment considerations. As of December 31, 2023 and March 31, 2023, the Company also had a loan receivable of $3.1 million and $3.0 million, respectively, with Cerfe Labs, Inc, a related party, which remains fully impaired. See Note 5 - Financial Instruments, for further information regarding this loan. As of December 31, 2023 and March 31, 2023, the outstanding balance of the convertible promissory note with Ampere, a related party, was $32.0 million and $30.9 million, respectively. The Company’s maximum exposure to loss are the amounts invested in, and advanced to, Ampere as of December 31, 2023. Other relationships The Company engaged Raine Securities LLC, a related party, for certain advisory services in connection with the IPO. No amounts were incurred during the three months ended December 31, 2023. For the nine months ended December 31, 2023, the Company incurred $10.7 million in expenses, of which $5.2 million was reimbursed by the underwriters for the IPO. For the three and nine months ended December 31, 2022, under a separate agreement with Raine Securities LLC, the Company incurred $0.6 million and $1.9 million in expenses, respectively. As of March 31, 2023, the Company had recorded other current liabilities of $2.5 million. As of December 31, 2023 the Company has settled all liabilities with this related party.

v3.24.0.1

Balance Sheet Components	9 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	2 - Balance Sheet Components Certain balance sheet components are as follows: Accrued compensation and benefits and share-based compensation consist of: (in millions) As of December 31, 2023 As of March 31, 2023 Accrued bonus, commissions, and cash awards $ 125  $ 257  Accrued vacation and sabbatical 70  66  Accrued salaries and fringe benefits 7  11  Share-based payment liabilities (1) 9  255  Total accrued compensation and benefits and share-based compensation $ 211  $ 589  (1)     In connection with the IPO, the Company paid $244.0 million arising from the normal vesting of liability-classified share-based awards under the 2022 RSU Plan. After completion of the IPO, awards within this plan all are equity-classified. See Note 9 - Share-based Compensation in the Notes to the Condensed Consolidated Financial Statements. Other current liabilities consist of: (in millions) As of December 31, 2023 As of March 31, 2023 Employee related payroll taxes and payables $ 108  $ 48  Accrued expenses and fees 84  119  Electronic design automation liabilities 44  35  Trade payables 31  82  Customer deposits 7  7  Finance lease liabilities 5  2  Total other current liabilities $ 279  $ 293

v3.24.0.1

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 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. 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 7 - Fair Value. 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures: In November 2023, FASB issued ASU 2023-07 which requires incremental reportable segment disclosures. The new standard requires that a public entity disclose significant segment expenses, the title and position of the CODM, and how the CODM uses the reported measures in assessing performance and deciding how to allocate resources. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Adoption of the ASU should be applied retrospectively to all prior periods presented in the financial statements. This ASU will result in additional required disclosures being included in our consolidated financial statements when adopted. The Company will adopt this standard beginning April 1, 2024. Income Taxes (Topic 740), Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU No. 2023-09, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will likely result in additional required disclosures being included in our consolidated financial statements when adopted. We are currently evaluating the provisions of this ASU.
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. This estimation process for the royalty revenue accrual is based off of customer sales which occur using estimates from sales trends and judgment for several key attributes, including industry estimates of expected shipments, the mix of products sold, 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.

v3.24.0.1

Revenue (Tables)	9 Months Ended
	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	A summary of the Company’s disaggregated revenue is as follows: Three Months Ended December 31, External Customers Related Parties Total (in millions) 2023 2022 2023 2022 2023 2022 License and Other Revenue (1) $ 211  $ 159  $ 143  $ 140  $ 354  $ 299  Royalty Revenue 365  374  105  51  470  425  $ 576  $ 533  $ 248  $ 191  $ 824  $ 724  (1)    Includes over-time revenue of $37 million and $29 million and point-in-time revenue of $317 million and $270 million for the three months ended December 31, 2023 and 2022, respectively. Nine Months Ended December 31, External Customers Related Parties Total (in millions) 2023 2022 2023 2022 2023 2022 License and Other Revenue (1) $ 685  $ 401  $ 332  $ 344  $ 1,017  $ 745  Royalty Revenue 1,070  1,125  218  176  1,288  1,301  $ 1,755  $ 1,526  $ 550  $ 520  $ 2,305  $ 2,046  (1)    Includes over-time revenue of $84 million and $77 million and point-in-time revenue of $933 million and $668 million for the nine months ended December 31, 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 headquarters address by geographic regions: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 United States $ 387  $ 296  $ 1,010  $ 804  PRC (1) 206  191  525  521  Taiwan 100  86  381  283  Republic of Korea 50  71  157  185  Other countries 81  80  232  253  Total $ 824  $ 724  $ 2,305  $ 2,046  (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: (in millions) As of December 31, 2023 As of March 31, 2023 Trade receivables $ 417  $ 625  Royalty receivables 385  377  Total gross receivables 802  1,002  Allowance for current expected credit losses (3) (3) Total accounts receivables, net $ 799  $ 999
Reconciliation of Contract Liabilities	A reconciliation of the movement in contract liabilities is as follows: (in millions) Total 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 169  Revenue recognized in the period that was included in the contract liability balance at the beginning of the period (213) Revenue recognized in the period that was included in the contract liability balance during the period (99) Balance as of December 31, 2023 $ 957  Current portion of contract liabilities $ 223  Non-current portion of contract liabilities $ 734

v3.24.0.1

Equity Investments (Tables)	9 Months Ended
	Dec. 31, 2023
Investments, All Other Investments [Abstract]
Equity Investments	A summary of the components of equity investments is as follows: (in millions) As of December 31, 2023 As of March 31, 2023 Equity method investments under fair value option $ 576  $ 592  Equity method investments under equity method 10  9  Non-marketable equity securities 162  122  Total equity investments $ 748  $ 723  Income (loss) from equity investments, net is as follows: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Equity method investments (1) $ (1) $ (2) $ (15) $ (82) Non-marketable equity securities (includes NAV) —  (4) 2  2  Total loss from equity investments, net $ (1) $ (6) $ (13) $ (80) (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.
Unrealized Gain (Loss) on Investments	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 December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Observable price adjustments on non-marketable equity securities (includes NAV) $ —  $ (4) $ 2  $ 3  Impairment of non-marketable equity securities —  —  —  (1) Sale of non-marketable equity securities —  —  —  —  Total income (loss) from equity investments in non-marketable securities, net $ —  $ (4) $ 2  $ 2
Realized Gain (Loss) on Investments	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 December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Observable price adjustments on non-marketable equity securities (includes NAV) $ —  $ (4) $ 2  $ 3  Impairment of non-marketable equity securities —  —  —  (1) Sale of non-marketable equity securities —  —  —  —  Total income (loss) from equity investments in non-marketable securities, net $ —  $ (4) $ 2  $ 2

v3.24.0.1

Financial Instruments (Tables)	9 Months Ended
	Dec. 31, 2023
Receivables [Abstract]
Loans and Other Receivables Carried at Amortized Cost	Loans and other receivables carried at amortized cost is as follows: (in millions) As of December 31, 2023 As of March 31, 2023 Loans and other receivables carried at amortized cost Loans receivable $ 26  $ 25  Other receivables 7  18 Allowance for current expected credit losses (19) (22) Loans and other receivables carried at amortized cost, net $ 14  $ 21

v3.24.0.1

Derivatives (Tables)	9 Months Ended
	Dec. 31, 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: (in millions) As of December 31, 2023 As of March 31, 2023 Designated as cash flow hedges Foreign currency forward contracts $ 428  $ 411
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: Derivative Assets Derivative Liabilities (in millions) As of December 31, 2023 As of March 31, 2023 As of December 31, 2023 As of March 31, 2023 Designated as cash flow hedges Foreign currency forward contracts $ 10  $ 10  $ 1  $ 1
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: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Condensed Consolidated Statements of Comprehensive Income: Gains (losses) recognized in Accumulated other comprehensive income on cash flow hedge derivatives $ 17  $ 31  $ 15  $ (1) (Gains) losses reclassified from Accumulated other comprehensive income into income —  2  (16) 6  Tax benefit (expense) on cash flow hedges (4) (8) —  (1) Net change in fair value of the effective portion of designated cash flow hedges, net of tax (1) $ 13  $ 25  $ (1) $ 4  Condensed Consolidated Income Statements, before tax: —  Research and development $ —  $ (1) $ 9  $ (3) Selling, general and administrative expenses $ —  $ (1) $ 7  $ (3) (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: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Foreign currency forward contracts $ —  $ —  $ —  $ (30)

v3.24.0.1

Fair Value (Tables)	9 Months Ended
	Dec. 31, 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: As of December 31, 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 $ —  $ 1  $ —  $ 1  $ —  $ 1  $ —  $ 1  Total financial liabilities $ —  $ 1  $ —  $ 1  $ —  $ 1  $ —  $ 1  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: As of December 31, 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) $ 850  $ —  $ —  $ 850  $ 661  $ —  $ —  $ 661  Equity method investments(2) —  —  466  466  —  —  482  482  Convertible loans receivable —  —  32  32  —  —  31  31  Foreign currency forward contracts —  10  —  10  —  10 —  10 Total financial assets $ 850  $ 10  $ 498  $ 1,358  $ 661  $ 10  $ 513  $ 1,184  (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.
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 December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Fair value of financial assets at the beginning of the period $ 466  $ 445  $ 482  $ 524  Additions, net of contributions from shareholders of the Company —  —  —  —  Fair value losses recognized in the Condensed Consolidated Income Statements —  (2) (16) (81) Distributions to shareholders of the Company —  —  —  —  Fair value at the end of the period $ 466  $ 443  $ 466  $ 443  Convertible Loans Receivable Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Fair value of financial assets at the beginning of the period $ 32  $ 30  $ 31  $ 29  Additions —  —  —  —  Converted into equity —  —  —  —  Fair value gains recognized in the income statement —  —  1  1  Fair value at the end of the period $ 32  $ 30  $ 32  $ 30
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 December 31, 2023 and March 31, 2023 (in millions) Fair value as of December 31, 2023 Fair value as of March 31, 2023 Valuation Technique Unobservable Inputs Range of Estimates Equity Method Investments $466 $482 Acetone – Market-Calibration or discounted cash flow Ampere – PWER LTM Revenue Multiple Probability of initial public offering, time to future exit scenario, discount rate 1.4x - 1.7x   Probability weighted – 100% Discount Rate – 18.6%

v3.24.0.1

Share-based Compensation (Tables)	9 Months Ended
	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The table below identifies the award activity under the 2019 AEP: Awards Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 11,601,185 $ 54.47  Granted 2,603 54.51  Cancelled and forfeited (234,922) 54.51  Outstanding and expected to vest as of December 31, 2023 11,368,866 $ 54.70  (1)As of March 31, 2023, 2019 AEP outstanding awards were liability-classified with a weighted average fair value per RSU of $23.33. For periods presented prior to the IPO, the average grant date fair value per RSU represents the fair value at the IPO. The table below identifies the award activity under the 2019 EIP: Awards Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 192,999  $ 51.00  Vested (192,999) 51.00  Outstanding and expected to vest as of December 31, 2023 —  $ —  (1)As of March 31, 2023, 2019 EIP outstanding awards were liability-classified with a weighted average fair value per RSU of $37.43. For periods presented prior to the IPO, the average grant date fair value per RSU represents the fair value at the IPO. The table below identifies the award activity under the 2022 RSU Plan: Awards(1) Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 11,129,734 $ 35.87  Executive Awards converted from liability awards 1,875,202 51.00  Granted 17,134,484 43.68  Vested(2) (4,969,122) 37.44  Cancelled and forfeited (532,881) 40.27  Outstanding and expected to vest as of December 31, 2023 24,637,417 $ 41.97  (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. (2)    Includes 351,022 liability-classified awards vested and settled in cash in the nine months ended December 31, 2023.
Share-Based Payment Arrangement, Restricted Stock Units And Performance Shares, Activity	The table below identifies all award activity under the Omnibus Incentive Plan: Awards(1) Weighted Average Grant Date Fair Value Per Award(1) Outstanding as of March 31, 2023 —  $ —  Granted 1,408,468  57.36  Cancelled and forfeited (7,533) 63.07 Outstanding and expected to vest as of December 31, 2023 1,400,935  $ 57.33  (1)    Awards and weighted average grant date per share exclude shares related to PSUs that currently have no grant date as the future performance objectives have not yet been defined and/or communicated to participants of the plan.
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: Three Months Ended December 31, Nine Months Ended December 31, (in millions) 2023 2022 2023 2022 Cost of sales $ 8  $ 4  $ 34  $ 7  Selling, general and administrative 49  34  247  52  Research and development 142  65  594  103  Total $ 199  $ 103  $ 875  $ 162

v3.24.0.1

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Dec. 31, 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: Three Months Ended December 31, Nine Months Ended December 31, (in millions, except shares and per share amounts) 2023 2022 2023 2022 Net income (loss) $ 87  $ 182  $ 82  $ 521  Weighted average ordinary shares used to calculate basic net income (loss) per share (1) 1,026,894,266 1,025,234,000 1,025,815,812 1,025,234,000 Equity-classified awards 21,994,223  2,684,937  14,347,642  1,722,431  Weighted average ordinary shares used to calculate diluted net income (loss) per share 1,048,888,489  1,027,918,937  1,040,163,454  1,026,956,431  Net income (loss) per ordinary share - basic $ 0.08  $ 0.18  $ 0.08  $ 0.51  Net income (loss) per ordinary share - diluted $ 0.08  $ 0.18  $ 0.08  $ 0.51  (1)    For the three and nine months ended December 31, 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: Three Months Ended December 31, Nine Months Ended December 31, 2023 2022 2023 2022 Restricted stock units (1) 335,863 16,974,842 335,863 16,974,842 Executive awards (2) 362,028  243,616  362,028  243,616  Total 697,891  17,218,458  697,891  17,218,458  (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.

v3.24.0.1

Balance Sheet Components (Tables)	9 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accrued Compensation and Benefits and Share-based Compensation	Accrued compensation and benefits and share-based compensation consist of: (in millions) As of December 31, 2023 As of March 31, 2023 Accrued bonus, commissions, and cash awards $ 125  $ 257  Accrued vacation and sabbatical 70  66  Accrued salaries and fringe benefits 7  11  Share-based payment liabilities (1) 9  255  Total accrued compensation and benefits and share-based compensation $ 211  $ 589  (1)     In connection with the IPO, the Company paid $244.0 million arising from the normal vesting of liability-classified share-based awards under the 2022 RSU Plan. After completion of the IPO, awards within this plan all are equity-classified. See Note 9 - Share-based Compensation in the Notes to the Condensed Consolidated Financial Statements.
Schedule of Other Current Liabilities	Other current liabilities consist of: (in millions) As of December 31, 2023 As of March 31, 2023 Employee related payroll taxes and payables $ 108  $ 48  Accrued expenses and fees 84  119  Electronic design automation liabilities 44  35  Trade payables 31  82  Customer deposits 7  7  Finance lease liabilities 5  2  Total other current liabilities $ 279  $ 293

v3.24.0.1

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	$ 51.00
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Shares issued in transaction (in shares)	7,000,000

v3.24.0.1

Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 824.0	$ 724.0	$ 2,305.0	$ 2,046.0
Over-time revenues
Disaggregation of Revenue [Line Items]
Revenue	37.0	29.0	84.0	77.0
Point-in-time revenues
Disaggregation of Revenue [Line Items]
Revenue	317.0	270.0	933.0	668.0
External Customers
Disaggregation of Revenue [Line Items]
Revenue	576.0	533.0	1,755.0	1,526.0
Related Parties
Disaggregation of Revenue [Line Items]
Revenue	248.0	191.0	550.0	520.0
License and Other Revenue
Disaggregation of Revenue [Line Items]
Revenue	354.0	299.0	1,017.0	745.0
License and Other Revenue | External Customers
Disaggregation of Revenue [Line Items]
Revenue	211.0	159.0	685.0	401.0
License and Other Revenue | Related Parties
Disaggregation of Revenue [Line Items]
Revenue	143.0	140.0	332.0	344.0
Royalty Revenue
Disaggregation of Revenue [Line Items]
Revenue	470.0	425.0	1,288.0	1,301.0
Royalty Revenue | External Customers
Disaggregation of Revenue [Line Items]
Revenue	365.0	374.0	1,070.0	1,125.0
Royalty Revenue | Related Parties
Disaggregation of Revenue [Line Items]
Revenue	$ 105.0	$ 51.0	$ 218.0	$ 176.0

v3.24.0.1

Revenue - Schedule of Revenue by Geographical Location (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 824	$ 724	$ 2,305	$ 2,046
United States
Disaggregation of Revenue [Line Items]
Revenue	387	296	1,010	804
PRC
Disaggregation of Revenue [Line Items]
Revenue	206	191	525	521
Taiwan
Disaggregation of Revenue [Line Items]
Revenue	100	86	381	283
Republic of Korea
Disaggregation of Revenue [Line Items]
Revenue	50	71	157	185
Other countries
Disaggregation of Revenue [Line Items]
Revenue	$ 81	$ 80	$ 232	$ 253

v3.24.0.1

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Increase in contract with customer, asset			$ 425.0		$ 254.1
Contract assets, transfer to accounts receivable			(271.8)		$ (250.7)
Performance obligation satisfied in previous period	$ 529.3	$ 434.0	1,349.9	$ 1,329.0
Remaining performance obligations, amount	2,433.0		2,433.0
Non-Cancellable And Non-Refundable Committed Funds
Disaggregation of Revenue [Line Items]
Remaining performance obligations, amount	$ 1.2		$ 1.2
Largest Customer | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk	25.00%	26.00%	22.00%	25.00%
Largest Customer | Accounts Receivable | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk			27.00%		40.00%
Two Largest Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk			34.00%	36.00%
Second Largest Customer | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk			12.00%	11.00%
Second Largest Customer | Accounts Receivable | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk			13.00%

v3.24.0.1

Revenue - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2023	Mar. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross receivables	$ 802	$ 1,002
Allowance for current expected credit losses	(3)	(3)
Total accounts receivables, net	799	999
Trade receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross receivables	417	625
Royalty receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross receivables	$ 385	$ 377

v3.24.0.1

Revenue - Schedule of Contract Liabilities (Details) $ in Millions	9 Months Ended
	Dec. 31, 2023 USD ($)
Contract With Customers, Liability [Roll Forward]
Current Contract Liabilities	$ 293
Non-Current Contract Liabilities	807
Beginning balance	1,100
Customer prepayment and billing in advance of performance	169
Revenue recognized in the period that was included in the contract liability balance at the beginning of the period	(213)
Revenue recognized in the period that was included in the contract liability balance during the period	(99)
Ending balance	957
Current portion of contract liabilities	223
Non-current portion of contract liabilities	$ 734

v3.24.0.1

Revenue - Remaining Performance Obligations (Details) $ in Millions	Dec. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, amount	$ 2,433.0
Non-Cancellable And Non-Refundable Committed Funds
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, amount	$ 1.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
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]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percent	26.00%
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, period

v3.24.0.1

Equity Investments - Schedule of Equity Investments (Details) - USD ($) $ in Millions	Dec. 31, 2023	Mar. 31, 2023
Investments, All Other Investments [Abstract]
Equity method investments under fair value option	$ 576	$ 592
Equity method investments under equity method	10	9
Non-marketable equity securities	162	122
Total equity investments	$ 748	$ 723

v3.24.0.1

Equity Investments - Schedule of Income (Loss) from Equity Investments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Equity method investments	$ (1)	$ (2)	$ (15)	$ (82)
Non-marketable equity securities (includes NAV)	0	(4)	2	2
Total loss from equity investments, net	$ (1)	$ (6)	$ (13)	$ (80)

v3.24.0.1

Equity Investments - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023
Schedule of Equity Method Investments [Line Items]
Equity method investments under fair value option		$ 576,000,000		$ 576,000,000		$ 592,000,000
Gains (losses) on equity method investments		(1,000,000)	$ (2,000,000)	(15,000,000)	$ (82,000,000)
Equity method investments under equity method		10,000,000		10,000,000		9,000,000
Other non-current assets		240,000,000		240,000,000		202,000,000
Non-marketable equity securities		162,000,000		162,000,000		122,000,000
(Losses) gains from non-marketable equity securities		0	(4,000,000)	2,000,000	2,000,000
Payments to acquire non-marketable preferred stock				32,000,000	4,000,000
Dividends from equity investments		2,200,000	0	4,300,000	300,000
Financial commitments to investees, off balance sheet		20,300,000		20,300,000		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]
Gains (losses) on equity method investments		0	7,200,000	(15,600,000)	(28,000,000)
Equity method investments under equity method		76,800,000		76,800,000		92,400,000
Ampere
Schedule of Equity Method Investments [Line Items]
Gains (losses) on equity method investments		0	(8,900,000)	0	(53,000,000.0)
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		109,300,000		109,300,000		109,400,000
Gains (losses) on equity method investments		(1,100,000)	(400,000)	600,000	(600,000)
Non-marketable equity securities		19,400,000		19,400,000		$ 18,000,000
(Losses) gains from non-marketable equity securities		$ (100,000)	$ (3,800,000)	$ 2,200,000	$ (10,800,000)

v3.24.0.1

Equity Investments - Schedule of Gains (Losses) on Non-Marketable Securities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Observable price adjustments on non-marketable equity securities (includes NAV)	$ 0	$ (4)	$ 2	$ 3
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 in non-marketable securities, net	$ 0	$ (4)	$ 2	$ 2

v3.24.0.1

Financial Instruments - Loans and Other Receivables Carried at Amortized Cost (Details) - USD ($) $ in Millions	Dec. 31, 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	14	21
Loans receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and other receivables carried at amortized cost	26	25
Other receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans and other receivables carried at amortized cost	$ 7	$ 18

v3.24.0.1

Financial Instruments - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Impaired loan receivable		$ 19,000,000		$ 19,000,000		$ 22,000,000
Level 3
Financing Receivable, Allowance for Credit Loss [Line Items]
Convertible loans receivable		32,000,000		32,000,000		31,000,000
Convertible loans receivable | Level 3
Financing Receivable, Allowance for Credit Loss [Line Items]
Fair value losses recognized in the Condensed Consolidated Income Statements		0	$ 0	1,000,000	$ 1,000,000
Loans receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan receivable		26,000,000		26,000,000		25,000,000
Other receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan receivable		7,000,000		7,000,000		18,000,000
Arduino
Financing Receivable, Allowance for Credit Loss [Line Items]
Impaired loan receivable		16,000,000.0		16,000,000.0
Allia Limited | Loans receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan receivable		$ 7,000,000.0		$ 7,000,000.0		$ 3,100,000
Loan term		5 years		5 years		5 years
Cerfe Labs, Inc. | Loans receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan receivable		$ 3,100,000		$ 3,100,000		$ 3,000,000
Loan term		4 years		4 years		4 years
IoTP
Financing Receivable, Allowance for Credit Loss [Line Items]
Non-cash distribution, disposal of investment	$ 12,000,000.0
IoTP | Other receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Loan receivable						$ 12,000,000
Ampere
Financing Receivable, Allowance for Credit Loss [Line Items]
Convertible loans receivable							$ 29,000,000
Ampere | Convertible loans receivable | Level 3
Financing Receivable, Allowance for Credit Loss [Line Items]
Fair value losses recognized in the Condensed Consolidated Income Statements		$ 0	$ 0	$ 0	$ 0

v3.24.0.1

Derivatives - Narrative (Details) £ in Millions, $ in Millions	Dec. 31, 2023 GBP (£)	Dec. 31, 2023 USD ($)	Mar. 31, 2023 GBP (£)	Mar. 31, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, notional amount | £	£ 343.0		£ 340.0
Derivative, fair value | $		$ 9.1		$ 9.3

v3.24.0.1

Derivatives - Notional Amounts (Details) £ in Millions, $ in Millions	Dec. 31, 2023 GBP (£)	Dec. 31, 2023 USD ($)	Mar. 31, 2023 GBP (£)	Mar. 31, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount | £	£ 343.0		£ 340.0
Designated as Hedging Instrument | Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount | $		$ 428		$ 411

v3.24.0.1

Derivatives - Outstanding Derivative Instruments (Details) - Level 3 - USD ($) $ in Millions	Dec. 31, 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	10	10
Derivative Liabilities	$ 1	$ 1

v3.24.0.1

Derivatives - Cash Flow Hedge Gains and Losses (Details) - Level 3 - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Condensed Consolidated Statements of Comprehensive Income:
Gains (losses) recognized in Accumulated other comprehensive income on cash flow hedge derivatives	$ 17	$ 31	$ 15	$ (1)
(Gains) losses reclassified from Accumulated other comprehensive income into income	0	2	(16)	6
Tax benefit (expense) on cash flow hedges	(4)	(8)	0	(1)
Net change of the effective portion of designated cash flow hedges	13	25	(1)	4
Research and development
Condensed Consolidated Statements of Comprehensive Income:
(Gains) losses reclassified from Accumulated other comprehensive income into income	0	1	(9)	3
Selling, general and administrative expenses
Condensed Consolidated Statements of Comprehensive Income:
(Gains) losses reclassified from Accumulated other comprehensive income into income	$ 0	$ 1	$ (7)	$ 3

v3.24.0.1

Derivatives - Non-designated Hedging Instrument Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign currency forward contracts	$ 0	$ 0	$ 0	$ (30)

v3.24.0.1

Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2023	Mar. 31, 2023
Assets, Fair Value Disclosure [Abstract]
Short-term investments	$ 850	$ 661
Equity method investments under fair value option	576	592
Fair Value, Recurring
Financial Liabilities Fair Value Disclosure [Abstract]
Foreign currency forward contracts	1	1
Total financial liabilities	1	1
Fair Value, Inputs, Level 1, Level 2, and Level 3
Assets, Fair Value Disclosure [Abstract]
Short-term investments	850	661
Equity method investments under fair value option	466	482
Convertible loans receivable	32	31
Foreign currency forward contracts	10	10
Total financial assets	1,358	1,184
Level 1
Assets, Fair Value Disclosure [Abstract]
Short-term investments	850	661
Equity method investments under fair value option	0	0
Convertible loans receivable	0	0
Foreign currency forward contracts	0	0
Total financial assets	850	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	10	10
Total financial assets	10	10
Level 2 | Fair Value, Recurring
Financial Liabilities Fair Value Disclosure [Abstract]
Foreign currency forward contracts	1	1
Total financial liabilities	1	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

v3.24.0.1

Fair Value - Schedule of Changes in Fair Value of Level 3 Financial Assets and Liabilities (Details) - Level 3 - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 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	$ 466	$ 445	$ 482	$ 524
Additions, net of contributions from shareholders of the Company	0	0	0	0
Fair value losses recognized in the Condensed Consolidated Income Statements	0	(2)	(16)	(81)
Distributions to shareholders of the Company	0	0	0	0
Fair value at the end of the period	466	443	466	443
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	32	30	31	29
Additions, net of contributions from shareholders of the Company	0	0	0	0
Fair value losses recognized in the Condensed Consolidated Income Statements	0	0	1	1
Converted into equity	0	0	0	0
Fair value at the end of the period	$ 32	$ 30	$ 32	$ 30

v3.24.0.1

Fair Value - Schedule of Equity Method Investments Key Assumptions (Details) $ in Millions	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 576	$ 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	1.4	1.4
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

v3.24.0.1

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

v3.24.0.1

Share-based Compensation - Narrative (Details)		1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 18, 2023 USD ($) employee $ / shares shares	Mar. 31, 2024	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation cost (credit)			$ 199,000,000	$ 103,000,000	$ 875,000,000	$ 162,000,000
Share-based compensation, tax benefit (expense)					0
Additional paid-in capital			2,087,000,000		2,087,000,000		$ 1,216,000,000
Non-current portion of accrued compensation and share-based compensation increase (decrease)			18,000,000		18,000,000		152,000,000
Accrued compensation and benefits and share-based compensation increase (decrease)			211,000,000		211,000,000		589,000,000
IPO
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Sale of stock (in dollars per share) | $ / shares	$ 51.00
2019 AEP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation cost (credit)	$ 217,200,000		53,300,000	23,600,000	474,400,000	22,200,000
Share-based compensation, tax benefit (expense)			4,700,000	2,900,000	40,500,000	3,200,000
Number of grantees affected by modification | employee	5,251
2019 AEP | Forecast
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting		100.00%
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		0	(4,100,000)	6,200,000	(600,000)
Share-based compensation, tax benefit (expense)			0	(1,100,000)		(500,000)
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
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)
2022 RSU Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based awards, liability paid	$ 244,000,000
Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation cost (credit)					7,300,000
Share-based compensation, tax benefit (expense)					1,300,000
Unrecognized share-based compensation			$ 73,000,000		$ 73,000,000
Unrecognized share-based compensation, recognition period					1 year 3 months 18 days
Shares authorized (in shares) | shares			20,500,000		20,500,000
Annual increase in shares authorized					2.00%
Restricted Stock Units (RSUs) | 2019 AEP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Additional paid-in capital			$ 579,200,000		$ 579,200,000
Non-current portion of accrued compensation and share-based compensation increase (decrease)			9,400,000		9,400,000		$ 114,200,000
Unrecognized share-based compensation			$ 33,600,000		$ 33,600,000
Unrecognized share-based compensation, recognition period					2 months 12 days
Share-based awards, liability paid						15,900,000
Outstanding (in shares) | shares			11,368,866		11,368,866		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							192,999
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]
Number of grantees affected by modification | employee	5,041
Expected to vest (in shares) | shares							284,036
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares							$ 40.47
Unrecognized share-based compensation, recognition period					1 year
Share-based awards, liability paid					$ 269,000,000
Accelerated share-based compensation	$ 17,700,000
Phantom Share Units (PSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation cost (credit)			$ 0	300,000	0	(500,000)
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		$ 136,700,000	83,300,000	$ 385,800,000	140,800,000
Share-based compensation, tax benefit (expense)			20,300,000	$ 10,500,000	54,300,000	$ 20,900,000
Additional paid-in capital							1,900,000
Non-current portion of accrued compensation and share-based compensation increase (decrease)							$ 13,800,000
Number of grantees affected by modification | employee	14
Unrecognized share-based compensation			$ 823,900,000		$ 823,900,000
Outstanding (in shares) | shares			24,637,417		24,637,417		11,129,734
Accrued compensation and benefits and share-based compensation increase (decrease)							$ 253,100,000
Shares issued (in shares) | shares	1,875,202
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)
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)
Restricted Stock Units, Launch Awards | 2022 RSU Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					3 years
Retricted Stock Units, Annual Awards | 2022 RSU Plan | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting					0.00%
Retricted Stock Units, Annual Awards | 2022 RSU Plan | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting					200.00%
Restricted Stock Units, Continuous Service | 2022 RSU Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					3 years
Restricted Stock Units, Continuous Service | Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					3 years
Restricted Stock Units, Time-Based | 2022 RSU Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					3 years
Restricted Stock Units, Liability-Classified | 2019 AEP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Expected to vest (in shares) | shares			144,914		144,914		11,601,185
Weighted average grant date fair value per RSU, expected to vest (in dollars per share) | $ / shares			$ 69.43		$ 69.43		$ 23.33
Performance Shares | Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					3 years
Performance Shares, Time Based | Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period					3 years
Performance Shares, Continuous Service And Performance Conditions | 2022 RSU Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Service period					1 year
Performance Shares, Continuous Service And Performance Conditions | Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Service period					1 year
Performance Shares, Continuous Service And Performance Conditions | Omnibus Incentive Plan | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting					0.00%
Performance Shares, Continuous Service And Performance Conditions | Omnibus Incentive Plan | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting					200.00%

v3.24.0.1

Share-based Compensation - Schedule of Restricted Stock Unit Activity (Details) - $ / shares	9 Months Ended
	Dec. 31, 2023	Mar. 31, 2023
Restricted Stock Units (RSUs) | 2019 AEP
Awards
Outstanding, beginning of period (in shares)	11,601,185
Granted (in shares)	2,603
Cancelled and forfeited (in shares)	(234,922)
Outstanding, ending of period (in shares)	11,368,866
Weighted Average Grant Date Fair Value Per RSU
Outstanding (in dollars per share)	$ 54.70	$ 54.47
Granted (in dollars per share)	54.51
Cancelled and forfeited (in dollars per share)	$ 54.51
Restricted Stock Units (RSUs) | 2019 EIP
Awards
Outstanding, beginning of period (in shares)	192,999
Vested (in shares)	(192,999)
Outstanding, ending of period (in shares)	0
Weighted Average Grant Date Fair Value Per RSU
Outstanding (in dollars per share)	$ 0	51.00
Vested (in dollars per share)	$ 51.00
Executive Awards | 2022 RSU Plan
Awards
Outstanding, beginning of period (in shares)	11,129,734
Executed Awards converted from liability awards (in shares)	1,875,202
Granted (in shares)	17,134,484
Vested (in shares)	(4,969,122)
Cancelled and forfeited (in shares)	(532,881)
Outstanding, ending of period (in shares)	24,637,417
Weighted Average Grant Date Fair Value Per RSU
Outstanding (in dollars per share)	$ 41.97	$ 35.87
Executed Awards converted from liability awards (in dollars per share)	51.00
Granted (in dollars per share)	43.68
Vested (in dollars per share)	37.44
Cancelled and forfeited (in dollars per share)	$ 40.27
Restricted Stock Units, Liability-Classified | 2022 RSU Plan
Awards
Vested (in shares)	(351,022)

v3.24.0.1

Share-based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation cost (credit)	$ 199	$ 103	$ 875	$ 162
Cost of sales
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation cost (credit)	8	4	34	7
Selling, general and administrative expenses
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation cost (credit)	49	34	247	52
Research and development
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation cost (credit)	$ 142	$ 65	$ 594	$ 103

v3.24.0.1

Share-based Compensation - Schedule of Omnibus Incentive Plan (Details) - Restricted Stock Units And Performance Shares - Omnibus Incentive Plan - $ / shares	9 Months Ended
	Dec. 31, 2023	Mar. 31, 2023
Awards
Outstanding, beginning of period (in shares)	0
Granted (in shares)	1,408,468
Cancelled and forfeited (in shares)	(7,533)
Outstanding, ending of period (in shares)	1,400,935
Weighted Average Grant Date Fair Value Per RSU
Outstanding (in dollars per share)	$ 57.33	$ 0
Granted (in dollars per share)	57.36
Cancelled and forfeited (in dollars per share)	$ 63.07

v3.24.0.1

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 59.0	$ 46.0	$ 72.0	$ 145.0
Income tax expense as a percentage of income before taxes	(40.40%)	(20.20%)	(46.80%)	(21.80%)

v3.24.0.1

Net Income (Loss) Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 87	$ 182	$ 82	$ 521
Weighted average ordinary shares used to calculate basic net income (loss) per share (in shares)	1,026,894,266	1,025,234,000	1,025,815,812	1,025,234,000
Equity-classified awards (in shares)	21,994,223	2,684,937	14,347,642	1,722,431
Weighted average ordinary shares used to calculate diluted net income (loss) per share (in shares)	1,048,888,489	1,027,918,937	1,040,163,454	1,026,956,431
Net income per ordinary share - basic (in USD per share)	$ 0.08	$ 0.18	$ 0.08	$ 0.51
Net income per ordinary share - diluted (in USD per share)	$ 0.08	$ 0.18	$ 0.08	$ 0.51

v3.24.0.1

Net Income (Loss) Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	697,891	17,218,458	697,891	17,218,458
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)	335,863	16,974,842	335,863	16,974,842
Executive Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	362,028	243,616	362,028	243,616

v3.24.0.1

Commitments and Contingencies (Details) - USD ($) $ in Millions	1 Months Ended
	Sep. 30, 2023	Dec. 31, 2023	Mar. 31, 2023
Debt Instrument [Line Items]
Loss contingency			$ 40.0
Loss contingency accrual reversal	$ 40.0
Financial Standby Letter of Credit | Arduino
Debt Instrument [Line Items]
Guarantor obligation		$ 5.5

v3.24.0.1

Related Party Transactions (Details) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Dec. 31, 2023	Aug. 31, 2023	Feb. 28, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Revenue				$ 824,000,000	$ 724,000,000	$ 2,305,000,000	$ 2,046,000,000
Operating expenses				654,000,000	451,000,000	2,103,000,000	1,246,000,000
Accounts receivable, net	$ 799,000,000			799,000,000		799,000,000		$ 999,000,000
Other current liabilities	279,000,000			279,000,000		279,000,000		293,000,000
Contract liabilities	223,000,000			223,000,000		223,000,000		293,000,000
Proceeds from equity method investments				4,000,000	0	6,400,000	300,000
Other non-current assets	240,000,000			240,000,000		240,000,000		202,000,000
Loans receivable
Related Party Transaction [Line Items]
Loans and other receivables carried at amortized cost	26,000,000			26,000,000		26,000,000		25,000,000
Related Parties
Related Party Transaction [Line Items]
Revenue				248,000,000	191,000,000	550,000,000	520,000,000
Accounts receivable, net	217,000,000			217,000,000		217,000,000		402,000,000
Other current liabilities	25,000,000			25,000,000		25,000,000		17,000,000
Contract liabilities	100,000,000			100,000,000		100,000,000		135,000,000
Service Share Arrangement | Related Parties
Related Party Transaction [Line Items]
Revenue				202,500,000	189,000,000	503,400,000	515,000,000
Operating expenses				24,100,000	13,000,000	57,700,000	44,000,000
Contract termination costs	5,500,000
Net receivable	192,200,000			192,200,000		192,200,000		386,900,000
Accounts receivable, net	216,400,000			216,400,000		216,400,000		400,700,000
Other current liabilities	24,200,000			24,200,000		24,200,000		13,900,000
Contract liabilities	97,900,000			97,900,000		97,900,000		103,400,000
Common Control in SoftBank | Related Parties
Related Party Transaction [Line Items]
Revenue				0	400,000	600,000	1,000,000
Accounts receivable, net	200,000			200,000		200,000		500,000
Contract liabilities	1,600,000			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				45,600,000	1,700,000	46,700,000	4,400,000
Accounts receivable, net								500,000
Contract liabilities	16,400,000			16,400,000		16,400,000		30,200,000
Contract assets	200,000			200,000		200,000		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	400,000			400,000		400,000		300,000
Subscription costs incurred				2,700,000	2,300,000	7,400,000	6,500,000
Raine Securities LLC Agreement | Related Parties
Related Party Transaction [Line Items]
Operating expenses					$ 600,000	10,700,000	$ 1,900,000
Other current liabilities								2,500,000
Proceeds from reimbursement from underwriters						(5,200,000)
IoTP
Related Party Transaction [Line Items]
Non-cash distribution, disposal of investment		$ 12,000,000.0
Arduino | Related Parties | Loans receivable
Related Party Transaction [Line Items]
Other non-current assets	16,000,000			16,000,000		16,000,000		19,200,000
Cerfe Labs, Inc. | Loans receivable
Related Party Transaction [Line Items]
Loans and other receivables carried at amortized cost	3,100,000			3,100,000		3,100,000		3,000,000
Ampere | Loans receivable
Related Party Transaction [Line Items]
Other non-current assets	$ 32,000,000			$ 32,000,000		$ 32,000,000		$ 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%

v3.24.0.1

Balance Sheet Components - Schedule of Accrued Compensation and Benefits and Share-based Compensation (Details) - USD ($) $ in Millions	Sep. 18, 2023	Dec. 31, 2023	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Accrued bonus, commissions, and cash awards		$ 125.0	$ 257.0
Accrued vacation and sabbatical		70.0	66.0
Accrued salaries and fringe benefits		7.0	11.0
Share-based payment liabilities		9.0	255.0
Accrued compensation and benefits and share-based compensation		$ 211.0	$ 589.0
2022 RSU Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based awards, liability paid	$ 244.0

v3.24.0.1

Balance Sheet Components - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2023	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Employee related payroll taxes and payables	$ 108	$ 48
Accrued expenses and fees	84	119
Electronic design automation liabilities	44	35
Trade payables	31	82
Customer deposits	7	7
Finance lease liabilities	5	2
Total other current liabilities	$ 279	$ 293

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