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Segments
 3 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Information
Note 13.
Segments
Sprint operates two reportable segments: Wireless and Wireline.
•
Wireless primarily includes retail, wholesale, and affiliate revenue from a wide array of wireless voice and data transmission services and equipment revenue from the sale of wireless devices (handsets and tablets) and accessories in the U.S., Puerto Rico and the U.S. Virgin Islands.
•
Wireline primarily includes revenue from domestic and international wireline voice and data communication services provided to other communications companies and targeted business subscribers, in addition to our Wireless segment.
We define segment earnings as wireless or wireline operating (loss) income before other segment expenses such as depreciation, amortization, severance, exit costs, goodwill impairments, asset impairments, and other items, if any, solely and directly attributable to the segment representing items of a non-recurring or unusual nature. Expense and income items excluded from segment earnings are managed at the corporate level. Transactions between segments are generally accounted for based on market rates, which we believe approximate fair value. The Company generally re-establishes these rates at the beginning of each fiscal year. Over the past several years, there has been an industry-wide trend of lower rates due to increased competition from other wireline and wireless communications companies, as well as cable and Internet service providers.
Segment financial information is as follows:  
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Net operating revenues
$
7,597

 
$
412

 
$
3

 
$
8,012

Inter-segment revenues(1)
—

 
133

 
(133
)
 
—

Total segment operating expenses
(5,157
)
 
(526
)
 
128

 
(5,555
)
Segment earnings
$
2,440

 
$
19

 
$
(2
)
 
2,457

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,680
)
Amortization
 
 
 
 
 
 
(287
)
Other, net(2)
 
 
 
 
 
 
(129
)
Operating income
 
 
 
 
 
 
361

Interest expense
 
 
 
 
 
 
(615
)
Other income, net
 
 
 
 
 
 
8

Loss before income taxes
 
 
 
 
 
 
$
(246
)
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
Net operating revenues
$
7,540

 
$
483

 
$
4

 
$
8,027

Inter-segment revenues(1)
—

 
147

 
(147
)
 
—

Total segment operating expenses
(5,466
)
 
(621
)
 
142

 
(5,945
)
Segment earnings
$
2,074

 
$
9

 
$
(1
)
 
2,082

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,241
)
Amortization
 
 
 
 
 
 
(347
)
Other, net(2)
 
 
 
 
 
 
7

Operating income
 
 
 
 
 
 
501

Interest expense
 
 
 
 
 
 
(542
)
Other income, net
 
 
 
 
 
 
4

Loss before income taxes
 
 
 
 
 
 
$
(37
)
 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the three months ended June 30, 2016
$
781

 
$
20

 
$
77

 
$
878

Capital expenditures for the three months ended June 30, 2015
$
2,184

 
$
68

 
$
94

 
$
2,346

 _________________
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to, or use by, wireless subscribers.
(2)
Other, net for the three-month period ended June 30, 2016 consists of $16 million of severance and exit costs and $113 million of contract termination costs, primarily related to the termination of our pre-existing wholesale arrangement with nTelos, as a result of the Shentel transaction. Losses totaling approximately $120 million relating to the write-off of leased devices associated with lease cancellations were excluded from Other, net and included within Wireless segment earnings. Other, net for the three-month period ended June 30, 2015 consists of $20 million of income resulting from a revision to our estimate of a previously recorded reserve, partially offset by $13 million of severance and exit costs.
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Wireless services
$
5,943

 
$
—

 
$
—

 
$
5,943

Wireless equipment
1,496

 
—

 
—

 
1,496

Voice
—

 
181

 
(69
)
 
112

Data
—

 
43

 
(22
)
 
21

Internet
—

 
302

 
(41
)
 
261

Other
158

 
19

 
2

 
179

Total net operating revenues
$
7,597

 
$
545

 
$
(130
)
 
$
8,012

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
Wireless services
$
6,351

 
$
—

 
$
—

 
$
6,351

Wireless equipment
990

 
—

 
—

 
990

Voice
—

 
233

 
(82
)
 
151

Data
—

 
49

 
(20
)
 
29

Internet
—

 
328

 
(44
)
 
284

Other
199

 
20

 
3

 
222

Total net operating revenues
$
7,540

 
$
630

 
$
(143
)
 
$
8,027

 
 
 
 
 
 
 
 
_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.