Here's how it works. First, your item needs to be completely vertical. Then selection Filter, Distort, and then Shear. You'll get a popup window with a little graph where you can drag the middle handle (square thingy) to the right and different vertical positions to bend your item. If you're doing this with text, you'll need to Simplify the layer first. When you're done, you can simply rotate it by 90 degrees and place it on your layout. The beauty of this method is that you get a nice consistent curve without distortion!
Example:
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This is a great tip, Lisa! Thank you so much for passing it on. I've been frustrated many times by the distortion that happens with the Arc feature. Next time, I'll try this technique instead. Thanks again!
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