(8) BALANCE SHEET DETAILS

Inventories

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



	As of December 31, 2015		As of March 31, 2015
Finished goods	$	41	$	35
Raw materials and work in process	1		1
Inventories	$	42	$	36

Property and Equipment, Net

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



	As of December 31, 2015			As of March 31, 2015
Computer, equipment and software	$	663		$	655
Buildings	303			315
Leasehold improvements	125			126
Equipment, furniture and fixtures, and other	73			73
Land	61			62
Construction in progress	12			7
	1,237			1,238
Less: accumulated depreciation	(822		)	(779		)
Property and equipment, net	$	415		$	459

During the three and nine months ended December 31, 2015, depreciation expense associated with property and equipment was $31 million and $91 million, respectively. During the three and nine months ended December 31, 2014, depreciation expense associated with property and equipment was $32 million and $96 million, respectively.

Accrued and Other Current Liabilities

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



	As of December 31, 2015		As of March 31, 2015
Other accrued expenses	$	308	$	298
Accrued compensation and benefits	218		263
Accrued royalties	216		119
Deferred net revenue (other)	98		114
Accrued and other current liabilities	$	840	$	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 $1,844 million and $1,283 million as of December 31, 2015 and March 31, 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).