Installment Receivables

9 Months Ended

Dec. 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. Beginning in October 2015, Sprint sold and derecognized all installment receivables as well as the related allowances and deferred interest.

The following table summarizes the installment receivables:



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

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

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



	March 31, 2015
	Prime		Subprime		Total
	(in millions)
Unbilled	$	1,243	$	359	$	1,602
Billed - current	65		22		87
Billed - past due	21		15		36
Installment receivables, gross	$	1,329	$	396	$	1,725

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



	Nine Months Ended December 31,			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
Derecognition of deferred interest and allowance for credit losses	(274		)	—
Deferred interest and allowance for credit losses, end of period	$	—		$	329