(10) BALANCE SHEET DETAILS

Inventories

Inventories as of March 31, 2014 and 2013 consisted of (in millions):



	As of March 31,
	2014		2013
Finished goods	$	55	$	41
Raw materials and work in process	1		1
Inventories	$	56	$	42

Property and Equipment, Net

Property and equipment, net, as of March 31, 2014 and 2013 consisted of (in millions):



	As of March 31,
	2014			2013
Computer equipment and software	$	718		$	660
Buildings	327			336
Leasehold improvements	129			129
Office equipment, furniture and fixtures	67			72
Land	63			64
Warehouse equipment and other	10			10
Construction in progress	5			8
	1,319			1,279
Less accumulated depreciation	(809		)	(731		)
Property and equipment, net	$	510		$	548

Depreciation expense associated with property and equipment was $126 million, $118 million and $102 million for the fiscal years ended March 31, 2014, 2013 and 2012, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of March 31, 2014 and 2013 consisted of (in millions):



	As of March 31,
	2014		2013
Other accrued expenses	$	328	$	338
Accrued compensation and benefits	259		217
Accrued royalties	73		103
Deferred net revenue (other)	121		79
Accrued and other current liabilities	$	781	$	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 $1,490 million and $1,044 million as of March 31, 2014 and 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 sale 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).