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Segments
 6 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment
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 income (loss) 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 September 30, 2017
 
 
 
 
 
 
 
Net operating revenues(2)
$
7,621

 
$
314

 
$
4

 
$
7,939

Inter-segment revenues(1)
—

 
95

 
(95
)
 
—

Total segment operating expenses(2)
(4,857
)
 
(438
)
 
85

 
(5,210
)
Segment earnings
$
2,764

 
$
(29
)
 
$
(6
)
 
2,729

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,885
)
Amortization
 
 
 
 
 
 
(209
)
Hurricane-related charges(2)
 
 
 
 
 
 
(34
)
Operating income
 
 
 
 
 
 
601

Interest expense
 
 
 
 
 
 
(595
)
Other income, net
 
 
 
 
 
 
44

Income before income taxes
 
 
 
 
 
 
$
50

 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
Net operating revenues
$
7,851

 
$
392

 
$
4

 
$
8,247

Inter-segment revenues(1)
—

 
129

 
(129
)
 
—

Total segment operating expenses
(5,528
)
 
(498
)
 
126

 
(5,900
)
Segment earnings
$
2,323

 
$
23

 
$
1

 
2,347

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(1,710
)
Amortization
 
 
 
 
 
 
(271
)
Other, net(3)
 
 
 
 
 
 
256

Operating income
 
 
 
 
 
 
622

Interest expense
 
 
 
 
 
 
(630
)
Other expense, net
 
 
 
 
 
 
(15
)
Loss before income taxes
 
 
 
 
 
 
$
(23
)
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2017
 
 
 
 
 
 
 
Net operating revenues(2)
$
15,431

 
$
657

 
$
8

 
$
16,096

Inter-segment revenues(1)
—

 
185

 
(185
)
 
—

Total segment operating expenses(2)
(9,801
)
 
(882
)
 
169

 
(10,514
)
Segment earnings
$
5,630

 
$
(40
)
 
$
(8
)
 
5,582

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(3,716
)
Amortization
 
 
 
 
 
 
(432
)
Hurricane-related charges(2)
 
 
 
 
 
 
(34
)
Other, net(3)
 
 
 
 
 
 
364

Operating income
 
 
 
 
 
 
1,764

Interest expense
 
 
 
 
 
 
(1,208
)
Other expense, net
 
 
 
 
 
 
(8
)
Income before income taxes
 
 
 
 
 
 
$
548

Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2016
 
 
 
 
 
 
 
Net operating revenues
$
15,448

 
$
804

 
$
7

 
$
16,259

Inter-segment revenues(1)
—

 
262

 
(262
)
 
—

Total segment operating expenses
(10,685
)
 
(1,024
)
 
254

 
(11,455
)
Segment earnings
$
4,763

 
$
42

 
$
(1
)
 
4,804

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(3,390
)
Amortization
 
 
 
 
 
 
(558
)
Other, net(3)
 
 
 
 
 
 
127

Operating income
 
 
 
 
 
 
983

Interest expense
 
 
 
 
 
 
(1,245
)
Other expense, net
 
 
 
 
 
 
(7
)
Loss before income taxes
 
 
 
 
 
 
$
(269
)
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
Capital expenditures for the six months ended September 30, 2017
$
2,581

 
$
102

 
$
225

 
$
2,908

Capital expenditures for the six months ended September 30, 2016
$
1,497

 
$
51

 
$
158

 
$
1,706

 _________________
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to, or use by, wireless subscribers.
(2)
The three and six-month periods ended September 30, 2017, includes $34 million of hurricane-related charges which are classified in our consolidated statements of comprehensive (loss) income as follows: $12 million as contra-revenue in net operating revenues, $15 million as cost of services, $2 million as selling, general and administrative expenses and $5 million as other, net, all within the Wireless segment.
(3)
Other, net for the six-month period ended September 30, 2017 consists of a $175 million net loss on disposal of property, plant and equipment, which consisted of a $181 million loss related to cell site construction costs that are no longer recoverable as a result of changes in our network plans, offset by a $6 million gain. In addition, the six-month period ended September 30, 2017 includes a $479 million non-cash gain related to spectrum license exchanges with other carriers, a $55 million reduction of an accrual related to favorable developments in pending legal proceedings and a $5 million reversal of previously accrued contract termination costs primarily related to the termination of our relationship with General Wireless Operations Inc. (Radio Shack). Losses totaling $112 million and $224 million relating to the write-off of leased devices associated with lease cancellations were excluded from Other, net and included within Wireless segment earnings for the three and six-month periods ended September 30, 2017, respectively. Other, net for the three and six-month periods ended September 30, 2016 consists of $5 million income and $11 million expense, respectively, of severance and exit costs. In addition, both the three and six-month periods ended September 30, 2016 include a $354 million non-cash gain related to spectrum license exchanges with other carriers and a $103 million charge related to a state tax matter. The six-month period ended September 30, 2016 also includes $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 $111 million and $231 million relating to the write-off of leased devices associated with lease cancellations were excluded from Other, net and included within Wireless segment earnings for the three and six-month periods ended September 30, 2016, respectively.
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
Wireless services(2)
$
5,365

 
$
—

 
$
—

 
$
5,365

Wireless equipment
1,960

 
—

 
—

 
1,960

Voice
—

 
109

 
(41
)
 
68

Data
—

 
33

 
(20
)
 
13

Internet
—

 
256

 
(34
)
 
222

Other 
296

 
11

 
4

 
311

Total net operating revenues
$
7,621

 
$
409

 
$
(91
)
 
$
7,939

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
Wireless services(3)
$
5,757

 
$
—

 
$
—

 
$
5,757

Wireless equipment
1,834

 
—

 
—

 
1,834

Voice
—

 
172

 
(66
)
 
106

Data
—

 
43

 
(22
)
 
21

Internet
—

 
288

 
(40
)
 
248

Other(3)
260

 
18

 
3

 
281

Total net operating revenues
$
7,851

 
$
521

 
$
(125
)
 
$
8,247

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2017
 
 
 
 
 
 
 
Wireless services(2)
$
10,830

 
$
—

 
$
—

 
$
10,830

Wireless equipment
4,046

 
—

 
—

 
4,046

Voice
—

 
233

 
(82
)
 
151

Data
—

 
67

 
(39
)
 
28

Internet
—

 
511

 
(64
)
 
447

Other
555

 
31

 
8

 
594

Total net operating revenues
$
15,431

 
$
842

 
$
(177
)
 
$
16,096

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2016
 
 
 
 
 
 
 
Wireless services(3)
$
11,609

 
$
—

 
$
—

 
$
11,609

Wireless equipment
3,330

 
—

 
—

 
3,330

Voice
—

 
353

 
(135
)
 
218

Data
—

 
86

 
(44
)
 
42

Internet
—

 
590

 
(81
)
 
509

Other(3)
509

 
37

 
5

 
551

Total net operating revenues
$
15,448

 
$
1,066

 
$
(255
)
 
$
16,259

 
 
 
 
 
 
 
 

_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2)
Wireless services related to the Wireless segment in the three and six-month periods ended September 30, 2017 excludes $12 million of hurricane-related contra-revenue charges reflected in net operating revenues in our consolidated statements of comprehensive (loss) income.
(3)
Sprint is no longer reporting Lifeline subscribers due to regulatory changes resulting in tighter program restrictions. We have excluded them from our customer base for all periods presented, including our Assurance Wireless prepaid brand and subscribers through our wholesale Lifeline mobile virtual network operators (MVNO). The above tables reflect the reclassification of the related Assurance Wireless prepaid revenue within the Wireless segment from Wireless services to Other of $92 million and $183 million for the three and six months ended September 30, 2016, respectively. Revenue associated with subscribers through our wholesale Lifeline MVNOs continues to remain in Other following this change.