Property, Plant and Equipment

6 Months Ended

Sep. 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 $854 million and $2.1 billion as of September 30, 2015 and 2014, respectively. The following table presents the components of property, plant and equipment and the related accumulated depreciation:



	September 30, 2015			March 31, 2015
	(in millions)
Land	$	266		$	266
Network equipment, site costs and related software	20,443			18,990
Buildings and improvements	766			754
Non-network internal use software, office equipment, leased devices and other	5,597			2,979
Construction in progress	1,583			2,090
Less: accumulated depreciation	(7,594		)	(5,358		)
Property, plant and equipment, net	$	21,061		$	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 September 30, 2015, a majority 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 over the estimated useful life, which is based on the lease term.

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



	September 30, 2015			March 31, 2015
	(in millions)
Leased devices	$	4,432		$	1,974
Less: accumulated depreciation	(823		)	(197		)
Leased devices, net	$	3,609		$	1,777

During the six-month periods ended September 30, 2015 and 2014, there were non-cash transfers to leased devices of approximately $1.6 billion and $70 million, respectively, along with a corresponding decrease in "Device and accessory inventory." Non-cash accruals included in leased devices totaled approximately $206 million and $1 million as of September 30, 2015 and 2014, respectively, for devices purchased from indirect dealers that were leased to our subscribers.

Impairments

During the three-month period ended September 30, 2015, we recorded $85 million of asset impairments primarily related to cell site construction costs that are no longer recoverable as a result of changes in the Company's network plans.