7. Balance Sheet Details

Cash and cash equivalents (in millions):

	April 28, 2017		April 29, 2016
Cash	$	2,275	$	2,714
Cash equivalents		169		154
Cash and cash equivalents	$	2,444	$	2,868

Inventories (in millions):

	April 28, 2017		April 29, 2016
Purchased components	$	28	$	10
Finished goods		135		88
Inventories	$	163	$	98

Property and equipment, net (in millions):

	April 28, 2017			April 29, 2016
Land	$	132		$	215
Buildings and improvements		612			605
Leasehold improvements		93			106
Computer, production, engineering and other equipment		741			751
Computer software		353			352
Furniture and fixtures		90			88
Construction-in-progress		26			74
		2,047			2,191
Accumulated depreciation and amortization		(1,248	)		(1,254	)
Property and equipment, net	$	799		$	937

As of April 28, 2017, we classified certain land and buildings previously reported as property and equipment as assets held-for-sale because we expect to sell them within the next twelve months. The book value of these assets was $118 million as of April 28, 2017 and is included in other current assets in the consolidated balance sheets.

On April 19, 2016, we sold certain buildings and land in Sunnyvale, California which had a net book value of $118 million at the time of sale, for $250 million in cash. Certain of the properties did not qualify as sales under accounting standards due to continuing involvement related to leaseback arrangements. In fiscal 2016, a portion of the remaining properties, which had a net book value of $51 million and related sales proceeds of $102 million, were recognized as sales, resulting in a gain of $51 million. In fiscal 2017, we recognized the sale of an additional portion of these properties, which had a net book value of $9 million and related sales proceeds of $19 million, resulting in a gain of $10 million. Please see Note 10 – Financing Arrangements for additional information.

Depreciation and amortization expense related to property and equipment, net is summarized below (in millions):

Year Ended

April 28,

2017

April 29,

2016

April 24,

2015

Depreciation and amortization expense

178

212

243

Other non-current assets (in millions):

	April 28, 2017		April 29, 2016
Deferred tax assets	$	525	$	621
Other assets		156		175
Other non-current assets	$	681	$	796

Accrued expenses (in millions):

	April 28, 2017		April 29, 2016
Accrued compensation and benefits	$	340	$	371
Sale-leaseback financing obligations		130		19
Product warranty liability		33		48
Other current liabilities		279		327
Accrued expenses	$	782	$	765

Product warranty liabilities:

Equipment and software systems sales include a standard product warranty. The following tables summarize the activity related to product warranty liabilities and their balances as reported in our consolidated balance sheets (in millions):

	Year Ended
	April 28, 2017			April 29, 2016
Balance at beginning of period	$	70		$	86
Expense accrued during the period		17			35
Warranty costs incurred		(37	)		(51	)
Balance at end of period	$	50		$	70

	April 28, 2017		April 29, 2016
Accrued expenses	$	33	$	48
Other long-term liabilities		17		22
Total warranty liabilities	$	50	$	70

Warranty expense accrued during the period includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods.

Deferred revenue and financed unearned services revenue (in millions):

	April 28, 2017		April 29, 2016
Deferred product revenue	$	124	$	68
Deferred services revenue		2,999		3,100
Financed unearned services revenue		219		217
Total	$	3,342	$	3,385

Reported as:
Short-term	$	1,744	$	1,794
Long-term		1,598		1,591
Total	$	3,342	$	3,385

Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware maintenance contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 18 – Commitments and Contingencies for additional information related to these arrangements.