Installment Receivables

6 Months Ended

Sep. 30, 2018

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.

The following table summarizes the installment receivables:

	September 30, 2018			March 31, 2018
	(in millions)
Installment receivables, gross	$	1,082		$	1,472
Deferred interest	(49		)	(106		)
Installment receivables, net of deferred interest	1,033			1,366
Allowance for credit losses	(195		)	(217		)
Installment receivables, net	$	838		$	1,149
Classified in the consolidated balance sheets as:
Accounts and notes receivable, net	$	687		$	995
Other assets	151			154
Installment receivables, net	$	838		$	1,149

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

	September 30, 2018						March 31, 2018
	Prime		Subprime		Total		Prime		Subprime		Total
	(in millions)						(in millions)
Unbilled	$	652	$	328	$	980	$	951	$	391	$	1,342
Billed - current	55		22		77		69		29		98
Billed - past due	13		12		25		17		15		32
Installment receivables, gross	$	720	$	362	$	1,082	$	1,037	$	435	$	1,472

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

	Six Months Ended			Twelve Months Ended
	September 30, 2018			March 31, 2018
	(in millions)
Deferred interest and allowance for credit losses, beginning of period	$	323		$	506
Adjustment to deferred interest on short- and long-term installment receivables due to Topic 606	(50		)	—
Bad debt expense	40			142
Write-offs, net of recoveries	(62		)	(224		)
Change in deferred interest on short- and long-term installment receivables	(7		)	(101		)
Deferred interest and allowance for credit losses, end of period	$	244		$	323