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Segments
3 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Information
Note 14.
Segments
Sprint operates two reportable segments: Wireless and Wireline.
Wireless primarily includes retail, wholesale, and affiliate revenue from a wide array of wireless voice and data transmission services and equipment revenue from the sale of wireless devices (handsets and tablets) and accessories in the U.S., Puerto Rico and the U.S. Virgin Islands.
Wireline primarily includes revenue from domestic and international wireline voice and data communication services provided to other communications companies and targeted business and consumer subscribers, in addition to our Wireless segment.
We define segment earnings as wireless or wireline operating (loss) income before other segment expenses such as depreciation, amortization, severance, exit costs, goodwill impairments, asset impairments, and other items, if any, solely and directly attributable to the segment representing items of a non-recurring or unusual nature. Expense and income items excluded from segment earnings are managed at the corporate level. Transactions between segments are generally accounted for based on market rates, which we believe approximate fair value. The Company generally re-establishes these rates at the beginning of each fiscal year. Over the past several years, there has been an industry-wide trend of lower rates due to increased competition from other wireline and wireless communications companies as well as cable and Internet service providers.
Segment financial information is as follows:  
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
Net operating revenues
$
7,540

 
$
483

 
$
4

 
$
8,027

Inter-segment revenues(1)

 
147

 
(147
)
 

Total segment operating expenses
(5,466
)
 
(621
)
 
142

 
(5,945
)
Segment earnings
$
2,074

 
$
9

 
$
(1
)
 
2,082

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,241
)
Amortization
 
 
 
 
 
 
(347
)
Other, net(2)
 
 
 
 
 
 
7

Operating income
 
 
 
 
 
 
501

Interest expense
 
 
 
 
 
 
(542
)
Other income, net
 
 
 
 
 
 
4

Loss before income taxes
 
 
 
 
 
 
$
(37
)
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
Net operating revenues
$
8,193

 
$
593

 
$
3

 
$
8,789

Inter-segment revenues(1)

 
153

 
(153
)
 

Total segment operating expenses
(6,400
)
 
(711
)
 
149

 
(6,962
)
Segment earnings
$
1,793

 
$
35

 
$
(1
)
 
1,827

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(868
)
Amortization
 
 
 
 
 
 
(413
)
Other, net(2)
 
 
 
 
 
 
(27
)
Operating income
 
 
 
 
 
 
519

Interest expense
 
 
 
 
 
 
(512
)
Other income, net
 
 
 
 
 
 
1

Income before income taxes
 
 
 
 
 
 
$
8

 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the three months ended June 30, 2015
$
1,640

 
$
68

 
$
94

 
$
1,802

Capital expenditures for the three months ended June 30, 2014
$
1,120

 
$
59

 
$
67

 
$
1,246

 _________________
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to, or use by, wireless subscribers.
(2)
Other, net for the three-month period ended June 30, 2015 consists of $20 million release of liability reserves associated with the May 2013 U.S. Cellular asset acquisition, partially offset by $13 million of severance and exit costs. Other, net for the three-month period ended June 30, 2014 consists of $27 million of severance and exit costs,
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
Wireless services
$
6,351

 
$

 
$

 
$
6,351

Wireless equipment
990

 

 

 
990

Voice

 
233

 
(82
)
 
151

Data

 
49

 
(20
)
 
29

Internet

 
328

 
(44
)
 
284

Other
199

 
20

 
3

 
222

Total net operating revenues
$
7,540

 
$
630

 
$
(143
)
 
$
8,027

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
Wireless services
$
6,908

 
$

 
$

 
$
6,908

Wireless equipment
1,106

 

 

 
1,106

Voice

 
327

 
(91
)
 
236

Data

 
56

 
(24
)
 
32

Internet

 
345

 
(38
)
 
307

Other
179

 
18

 
3

 
200

Total net operating revenues
$
8,193

 
$
746

 
$
(150
)
 
$
8,789

_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.