(8) BALANCE SHEET DETAILS

Inventories

Inventories as of September 30, 2016 and March 31, 2016 consisted of (in millions):



	As of September 30, 2016		As of March 31, 2016
Finished goods	$	41	$	32
Raw materials and work in process	9		1
Inventories	$	50	$	33

Property and Equipment, Net

Property and equipment, net, as of September 30, 2016 and March 31, 2016 consisted of (in millions):



	As of September 30, 2016			As of March 31, 2016
Computer, equipment and software	$	709		$	684
Buildings	315			313
Leasehold improvements	129			129
Equipment, furniture and fixtures, and other	81			80
Land	61			61
Construction in progress	3			15
	1,298			1,282
Less: accumulated depreciation	(867		)	(843		)
Property and equipment, net	$	431		$	439

During the three and six months ended September 30, 2016, depreciation expense associated with property and equipment was $28 million and $57 million, respectively. During the three and six months ended September 30, 2015 depreciation expense associated with property and equipment was $30 million and $60 million respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of September 30, 2016 and March 31, 2016 consisted of (in millions):



	As of September 30, 2016		As of March 31, 2016
Other accrued expenses	$	289	$	218
Accrued compensation and benefits	175		256
Accrued royalties	162		159
Deferred net revenue (other)	151		77
Accrued and other current liabilities	$	777	$	710

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 $1,067 million and $1,458 million as of September 30, 2016 and March 31, 2016, 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 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 generally during the period in which the product is delivered (rather than on a deferred basis).