Installment Receivables

6 Months Ended

Sep. 30, 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:



	September 30, 2015			March 31, 2015
	(in millions)
Installment receivables, gross	$	1,387		$	1,725
Deferred interest	(96		)	(139		)
Installment receivables, net of deferred interest	1,291			1,586
Allowance for credit losses	(178		)	(190		)
Installment receivables, net	$	1,113		$	1,396

Classified on the consolidated balance sheets as:
Accounts and notes receivable, net	$	929		$	1,035
Other assets	184			361
Installment receivables, net	$	1,113		$	1,396

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



	September 30, 2015						March 31, 2015
	Prime		Subprime		Total		Prime		Subprime		Total
	(in millions)
Unbilled	$	965	$	293	$	1,258	$	1,243	$	359	$	1,602
Billed - current	67		22		89		65		22		87
Billed - past due	24		16		40		21		15		36
Installment receivables, gross	$	1,056	$	331	$	1,387	$	1,329	$	396	$	1,725

Activity in the deferred interest and allowance for credit losses for the installment receivables is as follows:



	Six Months Ended September 30,			Twelve Months Ended March 31,
	2015			2015
	(in millions)
Deferred interest and allowance for credit losses, beginning of period	$	329		$	124
Bad debt expense	93			398
Write-offs, net of recoveries	(105		)	(255		)
Change in deferred interest on short-term and long-term installment receivables	(43		)	62
Deferred interest and allowance for credit losses, end of period	$	274		$	329