6. Balance Sheet Details

Cash and cash equivalents (in millions):

	October 27, 2017		April 28, 2017
Cash	$	3,111	$	2,275
Cash equivalents		424		169
Cash and cash equivalents	$	3,535	$	2,444

Inventories (in millions):

	October 27, 2017		April 28, 2017
Purchased components	$	32	$	28
Finished goods		76		135
Inventories	$	108	$	163

Property and equipment, net (in millions):

	October 27, 2017			April 28, 2017
Land	$	132		$	132
Buildings and improvements		633			612
Leasehold improvements		100			93
Computer, production, engineering and other equipment		749			741
Computer software		352			353
Furniture and fixtures		96			90
Construction-in-progress		13			26
		2,075			2,047
Accumulated depreciation and amortization		(1,280	)		(1,248	)
Property and equipment, net	$	795		$	799

We have classified certain land and buildings located in Sunnyvale, California previously reported as property and equipment as assets held-for-sale. The book value of these assets is $118 million and is included in other current assets in the condensed consolidated balance sheets. On September 8, 2017, we entered into an agreement to sell these assets for a total of $306 million, of which $210 million is payable at the first closing and $96 million is payable at the second closing. Each closing is subject to due diligence, certain termination rights and customary closing conditions, including, in the case of the second closing, local governmental approval of the subdivision of a land parcel. The first closing is expected to occur in the third quarter of fiscal 2018 and the second closing is expected to occur within the next twelve months.

Other non-current assets (in millions):

	October 27, 2017		April 28, 2017
Deferred tax assets	$	483	$	525
Other assets		151		156
Other non-current assets	$	634	$	681

Accrued expenses (in millions):

	October 27, 2017		April 28, 2017
Accrued compensation and benefits	$	291	$	340
Sale-leaseback financing obligations		130		130
Product warranty liabilities		29		33
Other current liabilities		272		279
Accrued expenses	$	722	$	782

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 condensed consolidated balance sheets (in millions):

	Three Months Ended						Six Months Ended
	October 27, 2017			October 28, 2016			October 27, 2017			October 28, 2016
Balance at beginning of period	$	44		$	61		$	50		$	70
Expense accrued during the period		7			1			8			5
Warranty costs incurred		(7	)		(8	)		(14	)		(21	)
Balance at end of period	$	44		$	54		$	44		$	54

	October 27, 2017		April 28, 2017
Accrued expenses	$	29	$	33
Other long-term liabilities		15		17
Total warranty liabilities	$	44	$	50

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):

	October 27, 2017		April 28, 2017
Deferred product revenue	$	123	$	124
Deferred services revenue		2,881		2,999
Financed unearned services revenue		163		219
Total	$	3,167	$	3,342

Reported as:
Short-term	$	1,645	$	1,744
Long-term		1,522		1,598
Total	$	3,167	$	3,342

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 16 for additional information related to these arrangements.