
		As of			As of
		June 30,			March 31,
		2011			2011
Raw materials and work in process	$		2	$	8
Finished goods			73		69
Inventories	$		75	$	77

Property and equipment, net, as of June 30, 2011 and March 31, 2011 consisted of (in millions):


		As of			As of
		June 30,			March 31,
		2011			2011
Computer equipment and software	$	496		$	504
Buildings		356			355
Leasehold improvements		106			105
Office equipment, furniture and fixtures		68			67
Land		66			66
Warehouse equipment and other		9			10
Construction in progress		30			20
		1,131			1,127
Less: accumulated depreciation		(615	)		(614	)
Property and equipment, net	$	516		$	513

Depreciation expense associated with property and equipment was $25 million and $28 million for the three months ended June 30, 2011 and 2010, respectively.

Acquisition-Related Restricted Cash Included in Other Current Assets and Other Assets

In connection with our acquisition of Playfish in fiscal year 2010, we deposited $100 million into an escrow account to pay the former shareholders of Playfish in the event certain performance milestones through December 31, 2011 are achieved. Through the three months ended June 30, 2011, no distributions were made from the restricted cash amount. As this deposit is restricted in nature, it is excluded from cash and cash equivalents. As of June 30, 2011 and March 30, 2011 the entire amount is included in other current assets on our Condensed Consolidated Balance Sheets.

Accrued and other current liabilities as of June 30, 2011 and March 31, 2011 consisted of (in millions):


		As of		As of
		June 30,		March 31,
		2011		2011
Other accrued expenses	$	303	$	359
Accrued compensation and benefits		149		232
Accrued royalties		78		96
Deferred net revenue (other)		74		81
Accrued and other current liabilities	$	604	$	768

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 (packaged goods and digital content) was $530 million as of June 30, 2011 and $1,005 million as of March 31, 2011. Deferred net revenue (packaged goods and digital content) includes the unrecognized revenue from (1) bundled sales of certain online-enabled packaged goods and digital content for which either we do not have vendor-specific objective evidence of fair value ("VSOE") for the online service that we provide in connection with the sale of the software or we have an obligation to provide future incremental unspecified digital content, (2) certain packaged goods sales of massively-multiplayer online role-playing games, and (3) sales of certain incremental content associated with our core subscription services that can only be played online, which are types of "micro-transactions." We recognize revenue from sales of online-enabled packaged goods and digital content for which (1) we do not have VSOE for the online service that we provided in connection with the sale and (2) we have an obligation to deliver incremental unspecified digital content in the future without an additional fee on a straight-line basis generally over an estimated six-month period beginning in the month after shipment. However, we expense the cost of goods sold related to these transactions during the period in which the product is delivered (rather than on a deferred basis).