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Segments
 6 Months Ended
Sep. 30, 2018
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, revenue from the sale of wireless devices (handsets and tablets) and accessories, and equipment rentals from devices leased to customers, all of which are generated in the U.S., Puerto Rico and the U.S. Virgin Islands.
•
Wireline primarily includes revenue from domestic and international wireline 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. The impact of intercompany pricing rate changes to our Wireline segment earnings does not affect our consolidated results of operations as our Wireless segment has an equivalent offsetting impact in cost of services.
Segment financial information is as follows:  
Statement of Operations Information
Wireless including hurricane
 
Wireless hurricane
 
Wireless excluding hurricane
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(2)
$
8,169

 
$
(3
)
 
$
8,166

 
$
260

 
$
4

 
$
8,430

Inter-segment revenues(1)
—

 
—

 
—

 
68

 
(68
)
 
—

Total segment operating expenses(2)
(4,883
)
 
(7
)
 
(4,890
)
 
(348
)
 
64

 
(5,174
)
Segment earnings (loss)
$
3,286

 
$
(10
)
 
$
3,276

 
$
(20
)
 
$
—

 
3,256

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(1,021
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(1,181
)
Amortization
 
 
 
 
 
 
 
 
 
 
(159
)
Hurricane-related reimbursements(2)
 
 
 
 
 
 
 
 
 
 
32

Merger costs(3)
 
 
 
 
 
 
 
 
 
 
(56
)
Other, net(4)
 
 
 
 
 
 
 
 
 
 
(93
)
Operating income
 
 
 
 
 
 
 
 
 
 
778

Interest expense
 
 
 
 
 
 
 
 
 
 
(633
)
Other income, net
 
 
 
 
 
 
 
 
 
 
79

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
224

Statement of Operations Information
Wireless including hurricane
 
Wireless hurricane
 
Wireless excluding hurricane
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(2)
$
7,609

 
$
12

 
$
7,621

 
$
314

 
$
4

 
$
7,939

Inter-segment revenues(1)
—

 
—

 
—

 
95

 
(95
)
 
—

Total segment operating expenses(2)
(4,879
)
 
22

 
(4,857
)
 
(438
)
 
85

 
(5,210
)
Segment earnings (loss)
$
2,730

 
$
34

 
$
2,764

 
$
(29
)
 
$
(6
)
 
2,729

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(997
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(888
)
Amortization
 
 
 
 
 
 
 
 
 
 
(209
)
Hurricane-related costs(2)
 
 
 
 
 
 
 
 
 
 
(34
)
Operating income
 
 
 
 
 
 
 
 
 
 
601

Interest expense
 
 
 
 
 
 
 
 
 
 
(595
)
Other income, net
 
 
 
 
 
 
 
 
 
 
44

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
50

Statement of Operations Information
Wireless including hurricane
 
Wireless hurricane
 
Wireless excluding hurricane
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(2)
$
16,014

 
$
(3
)
 
$
16,011

 
$
536

 
$
8

 
$
16,555

Inter-segment revenues(1)
—

 
—

 
—

 
130

 
(130
)
 
—

Total segment operating expenses(2)
(9,410
)
 
(7
)
 
(9,417
)
 
(728
)
 
126

 
(10,019
)
Segment earnings (loss)
$
6,604

 
$
(10
)
 
$
6,594

 
$
(62
)
 
$
4

 
6,536

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(2,044
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(2,317
)
Amortization
 
 
 
 
 
 
 
 
 
 
(330
)
Hurricane-related reimbursements(2)
 
 
 
 
 
 
 
 
 
 
32

Merger costs(3)
 
 
 
 
 
 
 
 
 
 
(149
)
Other, net(4)
 
 
 
 
 
 
 
 
 
 
(135
)
Operating income
 
 
 
 
 
 
 
 
 
 
1,593

Interest expense
 
 
 
 
 
 
 
 
 
 
(1,270
)
Other income, net
 
 
 
 
 
 
 
 
 
 
121

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
444

 
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless including hurricane
 
Wireless hurricane
 
Wireless excluding hurricane
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(2)
$
15,419

 
$
12

 
$
15,431

 
$
657

 
$
8

 
$
16,096

Inter-segment revenues(1)
—

 
—

 
—

 
185

 
(185
)
 
—

Total segment operating expenses(2)
(9,823
)
 
22

 
(9,801
)
 
(882
)
 
169

 
(10,514
)
Segment earnings (loss)
$
5,596

 
$
34

 
$
5,630

 
$
(40
)
 
$
(8
)
 
5,582

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(1,974
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(1,742
)
Amortization
 
 
 
 
 
 
 
 
 
 
(432
)
Hurricane-related costs(2)
 
 
 
 
 
 
 
 
 
 
(34
)
Other, net(4)
 
 
 
 
 
 
 
 
 
 
364

Operating income
 
 
 
 
 
 
 
 
 
 
1,764

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

 
 
 
 
 
 
 
 
 
 
 
 
Other Information
 
 
 
 
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
 
 
 
 
(in millions)
Capital expenditures for the six months ended September 30, 2018
 
 
 
 
$
5,644

 
$
106

 
$
172

 
$
5,922

Capital expenditures for the six months ended September 30, 2017
 
 
 
 
$
4,579

 
$
102

 
$
227

 
$
4,908

_________________
(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, 2018 includes $32 million of hurricane-related reimbursements, which are classified in our consolidated statements of comprehensive income (loss) as follows: $3 million as revenue in net operating revenues, $6 million as cost of services, $1 million as selling, general and administrative expenses and $22 million as other, net, all within the Wireless segment. The three and six-month periods ended September 30, 2017 includes $34 million of hurricane-related costs, which are classified in our consolidated statements of comprehensive income (loss) 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)
The three and six-month periods ended September 30, 2018 includes $56 million and $149 million, respectively, of merger-related costs, which were recorded as selling, general and administrative expenses in the consolidated statements of comprehensive income (loss).
(4)
Other, net for the three and six-month periods ended September 30, 2018 consists of $25 million and $33 million, respectively, of severance and exit costs primarily due to reductions in work force, access termination charges and lease exit costs. In addition, both the three and six-month periods ended September 30, 2018 consist of a $68 million loss on disposal of property, plant and equipment 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. The six-month period ended September 30, 2018 consists of $34 million associated with the purchase of certain leased spectrum assets, which upon termination of the related spectrum leases resulted in the accelerated recognition of the unamortized favorable lease balances. 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, slightly 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).
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
Service revenue(2)
$
5,206

 
$
303

 
$
(68
)
 
$
5,441

Wireless equipment sales
1,418

 
—

 
—

 
1,418

Wireless equipment rentals
1,253

 
—

 
—

 
1,253

Other 
289

 
25

 
4

 
318

Total net operating revenues
$
8,166

 
$
328

 
$
(64
)
 
$
8,430

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
Service revenue(2)
$
5,365

 
$
398

 
$
(95
)
 
$
5,668

Wireless equipment sales
994

 
—

 
—

 
994

Wireless equipment rentals
966

 
—

 
—

 
966

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)
Six Months Ended September 30, 2018
 
 
 
 
 
 
 
Service revenue(2)
$
10,376

 
$
617

 
$
(130
)
 
$
10,863

Wireless equipment sales
2,591

 
—

 
—

 
2,591

Wireless equipment rentals
2,465

 
—

 
—

 
2,465

Other
579

 
49

 
8

 
636

Total net operating revenues
$
16,011

 
$
666

 
$
(122
)
 
$
16,555

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

 
$
811

 
$
(185
)
 
$
11,456

Wireless equipment sales
2,181

 
—

 
—

 
2,181

Wireless equipment rentals
1,865

 
—

 
—

 
1,865

Other
555

 
31

 
8

 
594

Total net operating revenues
$
15,431

 
$
842

 
$
(177
)
 
$
16,096

 
 
 
 
 
 
 
 

_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2)
Service revenue related to the Wireless segment in the three and six-month periods ended September 30, 2018 excludes $3 million of hurricane-related revenue reimbursements reflected in net operating revenues in our consolidated statements of comprehensive income (loss). Service revenue related to the Wireless segment in the three and six-month periods ended September 30, 2017 excludes $12 million of hurricane-related contra-revenue costs reflected in net operating revenues in our consolidated statements of comprehensive income (loss).