Property, Plant and Equipment

Property, plant and equipment consists primarily of network equipment, leased devices 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 $1.0 billion and $428 million as of December 31, 2018 and 2017, respectively.

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



	December 31, 2018			March 31, 2018
	(in millions)
Land	$	247		$	254
Network equipment, site costs and related software	24,015			22,930
Buildings and improvements	833			813
Leased devices, non-network internal use software, office equipment and other	12,612			11,149
Construction in progress	3,520			2,202
Less: accumulated depreciation	(19,805		)	(17,423		)
Property, plant and equipment, net	$	21,422		$	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 December 31, 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:



	December 31, 2018			March 31, 2018
	(in millions)
Leased devices	$	10,987		$	9,592
Less: accumulated depreciation	(4,304		)	(3,580		)
Leased devices, net	$	6,683		$	6,012

During the nine-month periods ended December 31, 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 $645 million and $574 million, respectively. Non-cash accruals included in leased devices totaled $264 million and $306 million as of December 31, 2018 and 2017, respectively.

During the three- and nine-month periods ended December 31, 2018 and 2017, we recorded $299 million, $642 million, $123 million and $527 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 $182 million, $457 million, $123 million and $347 million for the three- and nine-month periods ended December 31, 2018 and 2017, respectively, and are included in "Cost of equipment rentals" in our consolidated statements of comprehensive (loss) income. During the three- and nine-month periods ended December 31, 2018, we recorded $117 million and $185 million, respectively, 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 (loss) income. During the nine-month period ended December 31, 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.