Balance Sheet Details

9 Months Ended

Dec. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

(8) BALANCE SHEET DETAILS

Property and Equipment, Net

Property and equipment, net, as of December 31, 2022 and March 31, 2022 consisted of (in millions):

	As of December 31, 2022		As of March 31, 2022
Computer, equipment and software	$	907	$	853
Buildings	367		375
Leasehold improvements	189		202
Equipment, furniture and fixtures, and other	90		95
Land	66		66
Construction in progress	12		30
	1,631		1,621
Less: accumulated depreciation	(1,078)		(1,071)
Property and equipment, net	$	553	$	550

Depreciation expense associated with property and equipment was $46 million and $135 million for the three and nine months ended December 31, 2022, respectively.

Depreciation expense associated with property and equipment was $41 million and $120 million for the three and nine months ended December 31, 2021, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities as of December 31, 2022 and March 31, 2022 consisted of (in millions):

	As of December 31, 2022		As of March 31, 2022
Other accrued expenses	$	378	$	304
Accrued compensation and benefits	342		500
Accrued royalties	222		203
Sales returns and price protection reserves	123		144
Deferred net revenue (other)	105		156
Operating lease liabilities	73		81
Accrued and other current liabilities	$	1,243	$	1,388

Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met.

Deferred net revenue

Deferred net revenue as of December 31, 2022 and March 31, 2022 consisted of (in millions):

	As of December 31, 2022		As of March 31, 2022
Deferred net revenue (online-enabled games)	$	1,808	$	2,024
Deferred net revenue (other)	105		156
Deferred net revenue (noncurrent)	48		68
Total deferred net revenue	$	1,961	$	2,248

During the nine months ended December 31, 2022 and 2021, we recognized $2,124 million and $1,607 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period.

Remaining Performance Obligations

As of December 31, 2022, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,961 million. These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. We expect to recognize substantially all of these balances as revenue over the next 12 months.