Installment Receivables (Notes)

12 Months Ended

Mar. 31, 2015

Installment Receivables

Certain subscribers have the option to purchase their devices in installments up to a 24-month period. Short-term installment receivables are recorded in "Accounts and notes receivable, net" and long-term installment receivables are recorded in "Other assets" in the consolidated balance sheets.

The following table summarizes the installment receivables:



	March 31, 2015			March 31, 2014
	(in millions)
Installment receivables, gross	$	1,725		$	740
Deferred interest	(139		)	(77		)
Installment receivables, net of deferred interest	1,586			663
Allowance for credit losses	(190		)	(47		)
Installment receivables, net	$	1,396		$	616

Classified on the consolidated balance sheets as:
Accounts and notes receivable, net	$	1,035		$	299
Other assets	361			317
Installment receivables, net	$	1,396		$	616

The balance and aging of installment receivables on a gross basis by credit category were as follows:



	March 31, 2015						March 31, 2014
	Prime		Subprime		Total		Prime		Subprime		Total
	(in millions)
Unbilled	$	1,243	$	359	$	1,602	$	466	$	242	$	708
Billed - current	65		22		87		16		9		25
Billed - past due	21		15		36		5		2		7
Installment receivables, gross	$	1,329	$	396	$	1,725	$	487	$	253	$	740

Activity in the deferred interest and allowance for credit losses for the installment receivables for the year ended March 31, 2015, the three months ended March 31, 2014 and since the inception of the program in September 2013 through December 31, 2013 was as follows:



	Year Ended March 31,			Three Months Ended March 31,		Year Ended December 31,
	2015			2014		2013
	(in millions)
Deferred interest and allowance for credit losses, beginning of period	$	124		$	13	$	—
Bad debt expense	398			44		3
Write-offs, net of recoveries	(255		)	—		—
Change in deferred interest on short-term and long-term installment receivables	62			67		10
Deferred interest and allowance for credit losses, end of period	$	329		$	124	$	13