7. Balance Sheet Details

Cash and cash equivalents (in millions):

	April 27, 2018		April 28, 2017
Cash	$	2,727	$	2,275
Cash equivalents		214		169
Cash and cash equivalents	$	2,941	$	2,444

Inventories (in millions):

	April 27, 2018		April 28, 2017
Purchased components	$	12	$	28
Finished goods		114		135
Inventories	$	126	$	163

Property and equipment, net (in millions):

	April 27, 2018			April 28, 2017
Land	$	106		$	132
Buildings and improvements		594			612
Leasehold improvements		88			93
Computer, production, engineering and other equipment		733			741
Computer software		357			353
Furniture and fixtures		99			90
Construction-in-progress		27			26
		2,004			2,047
Accumulated depreciation and amortization		(1,248	)		(1,248	)
Property and equipment, net	$	756		$	799

As of April 28, 2017, we had classified certain land and buildings located in Sunnyvale, California, previously reported as property and equipment as assets held-for-sale and included their book value of $118 million in other current assets in the consolidated balance sheets. On September 8, 2017, we entered into an agreement to sell these properties for a total of $306 million, through two separate and independent closings. On December 7, 2017, the first closing occurred and we consummated the sale of properties with a net book value of $66 million for cash proceeds of $210 million, resulting in a gain, net of direct selling costs, of $142 million.

The remaining properties, consisting of land with a net book value of $52 million, continue to be classified as assets held-for-sale as of April 27, 2018. We will consummate the sale of these properties, and receive cash proceeds of $96 million, upon the occurrence of the second closing, which is expected to occur within the next 12 months. That closing is subject to due diligence, certain termination rights and customary closing conditions, including local governmental approval of the subdivision of a land parcel.

Depreciation and amortization expense related to property and equipment, net is summarized below (in millions):

Year Ended

April 27,

2018

April 28,

2017

April 29,

2016

Depreciation and amortization expense

145

178

212

Other non-current assets (in millions):

	April 27, 2018		April 28, 2017
Deferred tax assets	$	270	$	525
Other assets		150		156
Other non-current assets	$	420	$	681

Accrued expenses (in millions):

	April 27, 2018		April 28, 2017
Accrued compensation and benefits	$	441	$	340
Sale-leaseback financing obligations		—		130
Product warranty liabilities		25		33
Other current liabilities		359		279
Accrued expenses	$	825	$	782

Product warranty liabilities:

Equipment and software systems sales include a standard product warranty. The following tables summarize the activity related to product warranty liabilities and their balances as reported in our consolidated balance sheets (in millions):

	Year Ended
	April 27, 2018			April 28, 2017
Balance at beginning of period	$	50		$	70
Expense accrued during the period		16			17
Warranty costs incurred		(26	)		(37	)
Balance at end of period	$	40		$	50

	April 27, 2018		April 28, 2017
Accrued expenses	$	25	$	33
Other long-term liabilities		15		17
Total warranty liabilities	$	40	$	50

Warranty expense accrued during the period includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods.

Other long-term liabilities (in millions):

	April 27, 2018		April 28, 2017
Liability for uncertain tax positions	$	314	$	148
Income taxes payable		549		—
Product warranty liabilities		15		17
Other liabilities		83		84
Other long-term liabilities	$	961	$	249

Deferred revenue and financed unearned services revenue (in millions):

	April 27, 2018		April 28, 2017
Deferred product revenue	$	119	$	124
Deferred services revenue		3,236		2,999
Financed unearned services revenue		122		219
Total	$	3,477	$	3,342

Reported as:
Short-term	$	1,804	$	1,744
Long-term		1,673		1,598
Total	$	3,477	$	3,342

Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware maintenance contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 18 – Commitments and Contingencies for additional information related to these arrangements.