Installment Receivables

9 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Installment Receivables

Installment Receivables

Certain subscribers have the option to pay for their devices in installments, generally up to a 24-month period. Short-term installment receivables are recorded in "Accounts and notes receivable, net" and long-term installment receivables are recorded in "Other assets" in the consolidated balance sheets. From October 2015 to February 2017, installment receivables sold to unaffiliated third parties (the Purchasers) were treated as a sale of financial assets and we derecognized these receivables, as well as the related allowances. As a result of our Accounts Receivable Facility (Receivables Facility) being amended in February 2017, all proceeds received from the Purchasers in exchange for our installment receivables are now recorded as borrowings (see Note 8. Long-Term Debt, Financing and Capital Lease Obligations).

The following table summarizes the installment receivables:

	December 31, 2017			March 31, 2017
	(in millions)
Installment receivables, gross	$	1,773		$	2,270
Deferred interest	(133		)	(207		)
Installment receivables, net of deferred interest	1,640			2,063
Allowance for credit losses	(257		)	(299		)
Installment receivables, net	$	1,383		$	1,764
Classified on the consolidated balance sheets as:
Accounts and notes receivable, net	$	1,168		$	1,195
Other assets	215			569
Installment receivables, net	$	1,383		$	1,764

The balance and aging of installment receivables on a gross basis by credit category were as follows:

	December 31, 2017						March 31, 2017
	Prime		Subprime		Total		Prime		Subprime		Total
	(in millions)						(in millions)
Unbilled	$	1,170	$	455	$	1,625	$	1,501	$	619	$	2,120
Billed - current	75		32		107		74		36		110
Billed - past due	21		20		41		20		20		40
Installment receivables, gross	$	1,266	$	507	$	1,773	$	1,595	$	675	$	2,270

Activity in the deferred interest and allowance for credit losses for the installment receivables was as follows:

	Nine Months Ended			Twelve Months Ended
	December 31, 2017			March 31, 2017
	(in millions)
Deferred interest and allowance for credit losses, beginning of period	$	506		$	—
Bad debt expense	135			61
Write-offs, net of recoveries	(177		)	(28		)
Change in deferred interest on short-term and long-term installment receivables	(74		)	8
Recognition of deferred interest and allowance for credit losses	—			465
Deferred interest and allowance for credit losses, end of period	$	390		$	506