) BALANCE SHEET DETAILS

Inventories

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



	As of December 31, 2012		As of March 31, 2012
Raw materials and work in process	$	1	$	—
Finished goods	58		59
Inventories	$	59	$	59

Property and Equipment, Net

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



	As of December 31, 2012			As of March 31, 2012
Computer equipment and software	$	649		$	575
Buildings	340			339
Leasehold improvements	131			121
Office equipment, furniture and fixtures	72			72
Land	64			64
Warehouse equipment and other	10			10
Construction in progress	9			38
	1,275			1,219
Less: accumulated depreciation	(725		)	(651		)
Property and equipment, net	$	550		$	568

Depreciation expense associated with property and equipment was $30 million and $87 million for the three and nine months ended December 31, 2012, respectively. Depreciation expense associated with property and equipment was $23 million and $74 million for the three and nine months ended December 31, 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 December 31, 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 December 31, 2012 and March 31, 2012 consisted of (in millions):



	As of December 31, 2012		As of March 31, 2012
Other accrued expenses	$	332	$	441
Deferred net revenue (other)	198		85
Accrued compensation and benefits	187		233
Accrued royalties	123		98
Accrued and other current liabilities	$	840	$	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 $1,213 million and $1,048 million as of December 31, 2012 and March 31, 2012, respectively. Deferred net revenue (packaged goods and digital content) generally includes the unrecognized revenue from bundled sales of certain online-enabled games for which we do not have VSOE for the obligation to provide unspecified updates. We recognize revenue from the sales of online-enabled games for which we do not have VSOE for the unspecified updates 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).