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Intangible Assets
 6 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
Indefinite-Lived Intangible Assets
Our indefinite-lived intangible assets consist of FCC licenses, which were acquired primarily through FCC auctions and business combinations, certain of our trademarks, and goodwill. At September 30, 2017, we held 800 MHz, 1.9 GHz and 2.5 GHz FCC licenses authorizing the use of radio frequency spectrum to deploy our wireless services. As long as the Company acts within the requirements and constraints of the regulatory authorities, the renewal and extension of these licenses is reasonably certain at minimal cost. Accordingly, we have concluded that FCC licenses are indefinite-lived intangible assets. Our Sprint and Boost Mobile trademarks have also been identified as indefinite-lived intangible assets. Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations.
The following provides the activity of indefinite-lived intangible assets within the consolidated balance sheets:
 
March 31,
2017
 
Net
Additions (Reductions)
 
September 30,
2017
 
(in millions)
FCC licenses
$
36,550

 
$
487

(1) 
$
37,037

Trademarks
4,035

 
—

 
4,035

Goodwill
6,579

 
(1
)
 
6,578

 
$
47,164

 
$
486

 
$
47,650


_________________
(1)
Net additions within FCC licenses include a $479 million increase from spectrum license exchanges described below during the six-month period ended September 30, 2017.
Spectrum License Exchanges
In the first quarter of fiscal year 2017, we exchanged certain spectrum licenses with other carriers in non-cash transactions. As a result, we recorded a non-cash gain of $479 million, which represented the difference between the fair value and the net book value of the spectrum transferred to the other carriers. The gain was recorded in "Other, net" within Operating income in the consolidated statements of comprehensive (loss) income for the six-month period ended September 30, 2017.
Assessment of Impairment
Our annual impairment testing date for goodwill and indefinite-lived intangible assets is January 1 of each year; however, we test for impairment between our annual tests if an event occurs or circumstances change that indicate that the asset may be impaired, or in the case of goodwill, that the fair value of the reporting unit is below its carrying amount.
The determination of fair value requires considerable judgment and is highly sensitive to changes in underlying assumptions. Consequently, there can be no assurance that the estimates and assumptions made for the purposes of the goodwill, spectrum licenses, and Sprint and Boost Mobile trade names impairment tests will prove to be an accurate prediction of the future. Sustained declines in the Company’s operating results, number of wireless subscribers, future forecasted cash flows, growth rates and other assumptions, as well as significant, sustained declines in the Company’s stock price and related market capitalization could impact the underlying key assumptions and our estimated fair values, potentially leading to a future material impairment of goodwill or other indefinite-lived intangible assets.
Intangible Assets Subject to Amortization
Customer relationships are amortized using the sum-of-the-months' digits method, while all other definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the respective assets. We reduce the gross carrying value and associated accumulated amortization when specified intangible assets become fully amortized. Amortization expense related to favorable spectrum and tower leases is recognized in "Cost of services" in our consolidated statements of comprehensive (loss) income.
 
 
 
September 30, 2017
 
March 31, 2017
 
Useful Lives
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
 
 
(in millions)
Customer relationships
8 years
 
$
6,561

 
$
(5,103
)
 
$
1,458

 
$
6,923

 
$
(5,053
)
 
$
1,870

Other intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Favorable spectrum leases
23 years
 
861

 
(154
)
 
707

 
869

 
(138
)
 
731

Favorable tower leases
7 years
 
589

 
(414
)
 
175

 
589

 
(386
)
 
203

Trademarks
34 years
 
520

 
(66
)
 
454

 
520

 
(58
)
 
462

Other
10 years
 
96

 
(42
)
 
54

 
91

 
(37
)
 
54

Total other intangible assets
 
2,066


(676
)

1,390


2,069


(619
)

1,450

Total definite-lived intangible assets
 
$
8,627


$
(5,779
)

$
2,848


$
8,992


$
(5,672
)

$
3,320