(9) BALANCE SHEET DETAILS

Inventories

Inventories as of March 31, 2013 and 2012 consisted of (in millions):



	As of March 31,
	2013		2012
Raw materials and work in process	$	1	$	—
Finished goods	41		59
Inventories	$	42	$	59

Property and Equipment, Net

Property and equipment, net, as of March 31, 2013 and 2012 consisted of (in millions):



	As of March 31,
	2013			2012
Computer equipment and software	$	660		$	575
Buildings	336			339
Leasehold improvements	129			121
Office equipment, furniture and fixtures	72			72
Land	64			64
Warehouse equipment and other	10			10
Construction in progress	8			38
	1,279			1,219
Less accumulated depreciation	(731		)	(651		)
Property and equipment, net	$	548		$	568

Depreciation expense associated with property and equipment was $118 million, $102 million and $104 million for the fiscal years ended March 31, 2013, 2012 and 2011, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of March 31, 2013 and 2012 consisted of (in millions):



	As of March 31,
	2013		2012
Other accrued expenses	$	338	$	441
Accrued compensation and benefits	217		233
Accrued royalties	103		98
Deferred net revenue (other)	79		85
Accrued and other current liabilities	$	737	$	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 (Online-Enabled Games)

Deferred net revenue (online-enabled games) was $1,044 million and $1,048 million as of March 31, 2013 and 2012, respectively. Deferred net revenue (online-enabled games) 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).