(10) BALANCE SHEET DETAILS

Inventories

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



	As of September 30, 2013		As of March 31, 2013
Finished Goods	$	54	$	41
Raw materials and work in process	4		1
Inventories	$	58	$	42

Property and Equipment, Net

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



	As of September 30, 2013			As of March 31, 2013
Computer equipment and software	$	693		$	660
Buildings	337			336
Leasehold improvements	129			129
Office equipment, furniture and fixtures	70			72
Land	63			64
Warehouse equipment and other	10			10
Construction in progress	9			8
	1,311			1,279
Less: accumulated depreciation	(779		)	(731		)
Property and equipment, net	$	532		$	548

Depreciation expense associated with property and equipment was $32 million and $62 million for three and six months ended September 30, 2013, respectively. Depreciation expense associated with property and equipment was $29 million and $57 million for the three and six months ended September 30, 2012, respectively.

Accrued and Other Current Liabilities

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



	As of September 30, 2013		As of March 31, 2013
Other accrued expenses	$	357	$	338
Accrued compensation and benefits	167		217
Accrued royalties	102		103
Deferred net revenue (other)	82		79
Accrued and other current liabilities	$	708	$	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 $935 million and $1,044 million as of September 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 nine-month period beginning in the month after shipment for physical games sold through retail and an estimated six-month period for digitally distributed games. 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).