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 $468 million, $1.5 billion, $2.0 billion, and $2.4 billion for the Successor years ended March 31, 2016 and 2015, three-months ended March 31, 2014 and year ended December 31, 2013.

The following table presents the components of property, plant and equipment, and the related accumulated depreciation:



	March 31,
	2016			2015
	(in millions)
Land	$	260		$	266
Network equipment, site costs and related software	21,500			18,990
Buildings and improvements	798			754
Non-network internal use software, office equipment, leased devices and other	6,182			2,979
Construction in progress	1,249			2,090
Less: accumulated depreciation	(9,692		)	(5,358		)
Property, plant and equipment, net	$	20,297		$	19,721

Network equipment, site costs and related software includes switching equipment, cell site towers, site development costs, radio frequency equipment, network software, digital fiber optic cable, transport facilities and transmission-related equipment. Buildings and improvements principally consists of owned general office facilities, retail stores and leasehold improvements. Non-network internal use software, office equipment, leased devices and other primarily consists of furniture, information technology systems, equipment and vehicles, and leased devices. Construction in progress, which is not depreciated until placed in service, primarily includes materials, transmission and related equipment, labor, engineering, site development costs, interest and other costs relating to the construction and development of our network.

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 March 31, 2016, substantially all 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 generally over the term of the lease.

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



	March 31,
	2016			2015
	(in millions)
Leased devices	$	4,913		$	1,974
Less: accumulated depreciation	(1,267		)	(197		)
Leased devices, net	$	3,646		$	1,777

During the years ended March 31, 2016 and 2015, there were non-cash transfers to leased devices of approximately $3.2 billion and $1.2 billion, respectively, along with a corresponding decrease in "Device and accessory inventory." In addition, during the year ended March 31, 2016, we sold devices totaling $1.3 billion (see Note 4. Funding Sources). Non-cash accruals included in leased devices totaled approximately $159 million and $182 million as of March 31, 2016 and 2015, respectively, for devices purchased from indirect dealers that were leased to our subscribers. Depreciation expense incurred on all leased devices for the years ended March 31, 2016 and 2015 was $1.8 billion and $206 million, respectively.

As of March 31, 2016, the minimum estimated payments to be received for leased devices, including devices sold and leased back under Handset Sale-Leaseback Tranche 1, were as follows (in millions):



Fiscal year 2016	$	2,403
Fiscal year 2017	694
	$	3,097

During the year ended March 31, 2016, we recorded $487 million of loss on disposal of property, plant and equipment, which is included in "other, net" in our consolidated statements of operations. These losses were the result of $65 million in net losses recognized upon the sale of devices to MLS under the Handset Sale-Leaseback Tranche 1 transaction, which represented the difference between the fair value and net book value of the devices sold and $256 million in losses from the write-off of leased devices associated with lease cancellations prior to the scheduled customer lease terms where customers did not return the devices to us. If customers continue to not return devices, we may have material losses in future periods. In addition, we recorded $166 million of losses due to cell site construction costs and other network costs that are no longer recoverable as a result of changes in the Company's network plans.

During the Successor three-month transition period ended March 31, 2014, we recorded $75 million of loss on disposal of property, plant and equipment, which is included in "other, net" in our consolidated statements of operations, primarily due to network equipment assets that were no longer necessary as a result of changes in management's strategic plans.

Impairments

During the three-month period ended December 31, 2014, we recorded an impairment loss of $233 million, which is included in "Impairments" in our consolidated statements of operations, to reduce the carrying value of the Wireline asset group, which includes the Wireline long-lived assets, to its estimated fair value of $918 million as of December 31, 2014.