(10) BALANCE SHEET DETAILS

Inventories

Inventories as of March 31, 2016 and 2015 consisted of (in millions):



	As of March 31,
	2016		2015
Finished goods	$	32	$	35
Raw materials and work in process	1		1
Inventories	$	33	$	36

Property and Equipment, Net

Property and equipment, net, as of March 31, 2016 and 2015 consisted of (in millions):



	As of March 31,
	2016			2015
Computer equipment and software	$	684		$	655
Buildings	313			315
Leasehold improvements	129			126
Equipment, furniture and fixtures, and other	80			73
Land	61			62
Construction in progress	15			7
	1,282			1,238
Less: accumulated depreciation	(843		)	(779		)
Property and equipment, net	$	439		$	459

Depreciation expense associated with property and equipment was $119 million, $126 million and $126 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of March 31, 2016 and 2015 consisted of (in millions):



	As of March 31,
	2016		2015
Other accrued expenses	$	218	$	298
Accrued compensation and benefits	256		263
Accrued royalties	159		119
Deferred net revenue (other)	77		114
Accrued and other current liabilities	$	710	$	794

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 $1,458 million and $1,283 million as of March 31, 2016 and 2015, 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).