BALANCE SHEET DETAILS

Inventories

Inventories as of September 30, 2012 and March 31, 2012 consisted of (in millions):



	As of September 30, 2012		As of March 31, 2012
Raw materials and work in process	$	3	$	—
In-transit inventory	2		—
Finished goods	66		59
Inventories	$	71	$	59

Property and Equipment, Net

Property and equipment, net, as of September 30, 2012 and March 31, 2012 consisted of (in millions):



	As of September 30, 2012			As of March 31, 2012
Computer equipment and software	$	637		$	575
Buildings	341			339
Leasehold improvements	129			121
Office equipment, furniture and fixtures	73			72
Land	64			64
Warehouse equipment and other	10			10
Construction in progress	9			38
	1,263			1,219
Less: accumulated depreciation	(702		)	(651		)
Property and equipment, net	$	561		$	568

Depreciation expense associated with property and equipment was $29 million and $57 million for the three and six months ended September 30, 2012, respectively. Depreciation expense associated with property and equipment was $26 million and $51 million for the three and six months ended September 30, 2011, respectively.

Acquisition-Related Restricted Cash Included in Other Current Assets

Included in other current assets on our Condensed Consolidated Balance Sheets was $6 million and $31 million of acquisition-related restricted cash as of September 30, 2012 and March 31, 2012, respectively. As these deposits are restricted in nature, they are excluded from cash and cash equivalents.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of September 30, 2012 and March 31, 2012 consisted of (in millions):



	As of September 30, 2012		As of March 31, 2012
Other accrued expenses	$	404	$	441
Accrued compensation and benefits	169		233
Deferred net revenue (other)	175		85
Accrued royalties	126		98
Accrued and other current liabilities	$	874	$	857

Deferred net revenue (other) includes the deferral of subscription revenue, deferrals related to our Switzerland distribution business, advertising revenue, licensing arrangements, and other revenue for which revenue recognition criteria has not been met.

Deferred Net Revenue (Packaged Goods and Digital Content)

Deferred net revenue (packaged goods and digital content) was $953 million and $1,048 million as of September 30, 2012 and March 31, 2012, respectively. Deferred net revenue (packaged goods and digital content) includes the unrecognized revenue from (1) bundled sales of certain online-enabled packaged goods and digital content for which either we do not have VSOE for the online service that we provide in connection with the sale of the software or we have an obligation to provide future incremental unspecified digital content, (2) certain packaged goods sales of MMO role-playing games, and (3) sales of certain incremental content associated with our core subscription services that can only be played online, which are types of “micro-transactions.” We recognize revenue from sales of online-enabled packaged goods and digital content for which (1) we do not have VSOE for the online service that we provided in connection with the sale and (2) we have an obligation to deliver incremental unspecified digital content in the future without an additional fee on a straight-line basis generally over an estimated six-month period beginning in the month after shipment. However, we expense the cost of revenue related to these transactions during the period in which the product is delivered (rather than on a deferred basis).