(10) BALANCE SHEET DETAILS

Inventories

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



	As of December 31, 2014		As of March 31, 2014
Finished goods	$	38	$	55
Raw materials and work in process	1		1
Inventories	$	39	$	56

Property and Equipment, Net

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



	As of December 31, 2014			As of March 31, 2014
Computer, equipment and software	$	699		$	718
Buildings	321			327
Leasehold improvements	127			129
Office equipment, furniture and fixtures	64			67
Land	62			63
Warehouse, equipment and other	9			10
Construction in progress	7			5
	1,289			1,319
Less: accumulated depreciation	(828		)	(809		)
Property and equipment, net	$	461		$	510

During the three and nine months ended December 31, 2014, depreciation expense associated with property and equipment was $32 million and $96 million, respectively. During the three and nine months ended December 31, 2013, depreciation expense associated with property and equipment was $33 million and $95 million, respectively.

Accrued and Other Current Liabilities

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



	As of December 31, 2014		As of March 31, 2014
Other accrued expenses	$	304	$	328
Accrued compensation and benefits	226		259
Accrued royalties	162		73
Deferred net revenue (other)	121		121
Accrued and other current liabilities	$	813	$	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 $1,583 million and $1,490 million as of December 31, 2014 and March 31, 2014, respectively. Deferred net revenue (online-enabled games) generally includes the unrecognized revenue from bundled sales of 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).