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 $1.2 billion and $360 million as of September 30, 2018 and 2017, respectively.

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



	September 30, 2018			March 31, 2018
	(in millions)
Land	$	247		$	254
Network equipment, site costs and related software	23,281			22,930
Buildings and improvements	825			813
Non-network internal use software, office equipment, leased devices and other	12,024			11,149
Construction in progress	3,576			2,202
Less: accumulated depreciation	(19,137		)	(17,423		)
Property, plant and equipment, net	$	20,816		$	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 return the device, continue leasing the device, or purchase the device. As of September 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:



	September 30, 2018			March 31, 2018
	(in millions)
Leased devices	$	10,404		$	9,592
Less: accumulated depreciation	(4,220		)	(3,580		)
Leased devices, net	$	6,184		$	6,012

During the six-month periods ended September 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 $399 million and $301 million, respectively. Non-cash accruals included in leased devices totaled $207 million and $210 million as of September 30, 2018 and 2017, respectively.

During the three and six-month periods ended September 30, 2018 and 2017, we recorded $219 million, $343 million, $117 million and $404 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 were primarily associated with lease cancellations prior to the scheduled customer lease terms, where customers did not return the devices to us. Such losses were $151 million, $275 million, $112 million and $224 million for the three and six-month periods ended September 30, 2018 and 2017, respectively, and are included in "Cost of equipment rentals" in our consolidated statements of comprehensive income (loss). During the three and six-month periods ended September 30, 2018, we recorded $68 million of losses primarily related to cell site construction costs and other network costs that are no longer recoverable as a result of changes in our network plans, which are included in "Other, net" in our consolidated statements of comprehensive income (loss). During the six-month period ended September 30, 2017, we recorded $180 million of losses primarily related to cell site construction costs that are no longer recoverable as a result of changes in our network plans.