Related Party Transactions

9 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 15. Related-Party Transactions

Sprint has entered into various arrangements with SoftBank or its controlled affiliates (SoftBank Parties) or with third parties to which SoftBank Parties are also parties, including for international wireless roaming, wireless and wireline call termination, real estate, logistical management, and other services.

Brightstar

We have arrangements with Brightstar, whereby Brightstar provides supply chain and inventory management services to us in our indirect channels and whereby Sprint may sell new and used devices and new accessories to Brightstar for its own purposes. The supply chain and inventory management arrangement contemplates that Brightstar will purchase inventory from the original equipment manufacturers (OEMs) to sell directly to our indirect dealers. As compensation for these services, we remit per unit fees to Brightstar for each device sold to dealers or retailers in our indirect channels. During the three and nine-month periods endedDecember 31, 2015, we incurred fees under these arrangements totaling $29 million and $82 million, respectively. For those OEMs for which Brightstar has not successfully negotiated contracts or does not have sufficient credit under existing contracts, Brightstar will purchase device and accessory inventory from us in order to fulfill orders within our indirect channel. We have provided a $1.0 billion credit line to Brightstar to facilitate certain of these arrangements. As a result, we shifted our concentration of credit risk away from our indirect channel partners to Brightstar. As Brightstar is a wholly-owned subsidiary of SoftBank, we expect SoftBank will provide the necessary support to ensure that Brightstar will fulfill its obligations to us under these agreements. However, we have no assurance that SoftBank will provide such support. We may also purchase new and used devices and accessories from Brightstar to be sold in our direct channels or used to fulfill service and repair needs.

Amounts included in our consolidated financial statements associated with these arrangements with Brightstar were as follows:

Consolidated balance sheets:	December 31, 2015		March 31, 2015
	(in millions)
Accounts receivable	$	239	$	430
Accounts payable	$	46	$	96

Consolidated statements of comprehensive loss:	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014
	(in millions)
Equipment revenues	$	598	$	1,030	$	1,375	$	1,149
Cost of products	$	601	$	1,071	$	1,362	$	1,165

Handset Sale-Leaseback

In November, 2015, Sprint entered into a Handset Sale-Leaseback transaction to sell and lease-back certain leased devices with MLS, a company formed by a group of equity investors, including SoftBank. Simultaneously with the sale of the devices and transfer of certain specified customer lease end rights and obligations to MLS, MLS leased back to us each device in exchange for monthly rental payments to be made to MLS. All devices must be returned to MLS. In the event that MLS is able to sell the returned devices at a price greater than the expected device residual value, Sprint has the potential to share some of the excess proceeds. Sprint will act as servicer for MLS, to the extent needed, after the end of the device leaseback period. Brightstar will provide reverse logistics and remarketing services to MLS with respect to the devices (See Note 3. Funding Sources).

All other transactions under agreements with SoftBank Parties, in the aggregate, were immaterial through the period ended December 31, 2015.