(10) BALANCE SHEET DETAILS

Inventories

Inventories as of September 30, 2014 and March 31, 2014 consisted of (in millions):



	As of September 30, 2014		As of March 31, 2014
Finished goods	$	64	$	55
Raw materials and work in process	3		1
Inventories	$	67	$	56

Property and Equipment, Net

Property and equipment, net, as of September 30, 2014 and March 31, 2014 consisted of (in millions):



	As of September 30, 2014			As of March 31, 2014
Computer, equipment and software	$	733		$	718
Buildings	329			327
Leasehold improvements	131			129
Office equipment, furniture and fixtures	66			67
Land	63			63
Warehouse, equipment and other	9			10
Construction in progress	5			5
	1,336			1,319
Less: accumulated depreciation	(853		)	(809		)
Property and equipment, net	$	483		$	510

During the three and six months ended September 30, 2014, depreciation expense associated with property and equipment was $33 million and $64 million, respectively. During the three and six months ended September 30, 2013, depreciation expense associated with property and equipment was $32 million and $62 million, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of September 30, 2014 and March 31, 2014 consisted of (in millions):



	As of September 30, 2014		As of March 31, 2014
Other accrued expenses	$	386	$	328
Accrued compensation and benefits	161		259
Accrued royalties	148		73
Deferred net revenue (other)	220		121
Accrued and other current liabilities	$	915	$	781

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 $1,281 million and $1,490 million as of September 30, 2014 and March 31, 2014, 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 vendor-specific objective evidence of fair value (“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).