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 $987 million and $387 million as of June 30, 2018 and 2017, respectively.

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



	June 30, 2018			March 31, 2018
	(in millions)
Land	$	254		$	254
Network equipment, site costs and related software	23,144			22,930
Buildings and improvements	817			813
Non-network internal use software, office equipment, leased devices and other	11,740			11,149
Construction in progress	3,001			2,202
Less: accumulated depreciation	(18,418		)	(17,423		)
Property, plant and equipment, net	$	20,538		$	19,925

Sprint offers a leasing program to its customers 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 the device, continue leasing the device, or purchase the device. As of June 30, 2018, substantially all of our device leases were classified as operating leases. Purchases of leased devices are reported as cash outflows for "Capital expenditures - leased devices" in the consolidated statements of cash flows. 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:



	June 30, 2018			March 31, 2018
	(in millions)
Leased devices	$	10,145		$	9,592
Less: accumulated depreciation	(3,932		)	(3,580		)
Leased devices, net	$	6,213		$	6,012

During the three-month periods ended June 30, 2018 and 2017, we had non-cash transfers of returned leased devices from property, plant and equipment to device and accessory inventory at the lower of net book value or their estimated fair value of $163 million and $109 million, respectively. Non-cash accruals included in leased devices totaled $221 million and $210 million as of June 30, 2018 and 2017, respectively.

During the three-month periods ended June 30, 2018 and 2017, we recorded $124 million and $287 million, respectively, of loss on disposal of property, plant and equipment, net of recoveries. Net losses that resulted from the write-off of leased devices are primarily associated with lease cancellations prior to the scheduled customer lease terms, where customers did not return the devices to us, were $124 million and $112 million for the three-month periods ended June 30, 2018 and 2017, respectively, and are included in "Cost of equipment rentals" in our consolidated statements of comprehensive income. In addition, during the three-month period ended June 30, 2017, we recorded $175 million of losses related to $181 million of cell site construction costs that are no longer recoverable as a result of changes in our network plans, slightly offset by a $6 million gain, which are included in "Other, net" in our consolidated statements comprehensive income.