Property, Plant and Equipment

3 Months Ended

Jun. 30, 2015

Property, Plant and Equipment [Abstract]


Note 6.	Property, Plant and Equipment

Property, plant and equipment consists primarily of network equipment and other long-lived assets used to provide service to our subscribers. Non-cash accruals included in property, plant and equipment (excluding leased devices) totaled $1.2 billion and $2.0 billion as of June 30, 2015 and 2014, respectively. The following table presents the components of property, plant and equipment and the related accumulated depreciation:



	June 30, 2015			March 31, 2015
	(in millions)
Land	$	266		$	266
Network equipment, site costs and related software	19,639			18,990
Buildings and improvements	757			754
Non-network internal use software, office equipment, leased devices and other	4,343			2,979
Construction in progress	1,911			2,090
Less: accumulated depreciation	(6,353		)	(5,358		)
Property, plant and equipment, net	$	20,563		$	19,721

In September 2014, Sprint introduced a leasing program, whereby qualified subscribers can lease a device for a contractual period of time. At the end of the lease term, the subscriber has the option to turn in their device, continue leasing their device, or purchase the device. As of June 30, 2015, substantially all of our device leases were classified as operating leases. At lease inception, the devices leased through Sprint's direct channels are reclassified from inventory to property, plant and equipment. For those devices leased through indirect channels, Sprint purchases the device to be leased from the retailer at lease inception. The devices are then depreciated using the straight-line method to their estimated residual value at the end of the lease term.

The following table presents leased devices and the related accumulated depreciation:



	June 30, 2015			March 31, 2015
	(in millions)
Leased devices	$	3,279		$	1,974
Less: accumulated depreciation	(450		)	(197		)
Leased devices, net	$	2,829		$	1,777

During the three-month period ended June 30, 2015, there were non-cash transfers to leased devices of approximately $808 million along with a corresponding decrease in "Device and accessory inventory." Non-cash accruals included in leased devices totaled approximately $207 million as of June 30, 2015 for devices purchased from indirect dealers that were leased to our subscribers.