(10) BALANCE SHEET DETAILS

Inventories

Inventories as of June 30, 2013 and March 31, 2013 consisted of (in millions):



	As of June 30, 2013		As of March 31, 2013
Raw materials and work in process	$	—	$	1
Finished goods	41		41
Inventories	$	41	$	42

Property and Equipment, Net

Property and equipment, net, as of June 30, 2013 and March 31, 2013 consisted of (in millions):



	As of June 30, 2013			As of March 31, 2013
Computer equipment and software	$	673		$	660
Buildings	332			336
Leasehold improvements	130			129
Office equipment, furniture and fixtures	71			72
Land	63			64
Warehouse equipment and other	10			10
Construction in progress	9			8
	1,288			1,279
Less: accumulated depreciation	(751		)	(731		)
Property and equipment, net	$	537		$	548

Depreciation expense associated with property and equipment was $30 million and $28 million for the three months ended June 30, 2013 and 2012, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of June 30, 2013 and March 31, 2013 consisted of (in millions):



	As of June 30, 2013		As of March 31, 2013
Other accrued expenses	$	257	$	338
Accrued compensation and benefits	163		217
Accrued royalties	85		103
Deferred net revenue (other)	83		79
Accrued and other current liabilities	$	588	$	737

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 $590 million and $1,044 million as of June 30, 2013 and March 31, 2013, 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).