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Segments (Tables)
 12 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Statement of Operations Information
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)
Year Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(1)
$
32,559

 
$
(3
)
 
$
32,556

 
$
1,024

 
$
17

 
$
33,597

Inter-segment revenues(2)
—

 
—

 
—

 
272

 
(272
)
 
—

Total segment operating expenses(1)
(19,713
)
 
(7
)
 
(19,720
)
 
(1,365
)
 
261

 
(20,824
)
Segment earnings (loss)
$
12,846

 
$
(10
)
 
$
12,836

 
$
(69
)
 
$
6

 
12,773

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(4,245
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(4,538
)
Amortization
 
 
 
 
 
 
 
 
 
 
(608
)
Hurricane-related reimbursements(1)
 
 
 
 
 
 
 
 
 
 
32

Merger costs(3)
 
 
 
 
 
 
 
 
 
 
(346
)
Goodwill impairment(4)
 
 
 
 
 
 
 
 
 
 
(2,000
)
Other, net(5)
 
 
 
 
 
 
 
 
 
 
(670
)
Operating income
 
 
 
 
 
 
 
 
 
 
398

Interest expense
 
 
 
 
 
 
 
 
 
 
(2,563
)
Other income, net
 
 
 
 
 
 
 
 
 
 
187

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
(1,978
)
 
Statement of Operations Information
Wireless including hurricane and other
 
Wireless hurricane and other
 
Wireless excluding hurricane and other
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Year Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(1)
$
31,137

 
$
33

 
$
31,170

 
$
1,251

 
$
18

 
$
32,439

Inter-segment revenues(2) 
—

 
—

 
—

 
328

 
(328
)
 
—

Total segment operating expenses(1)
(20,090
)
 
125

 
(19,965
)
 
(1,697
)
 
292

 
(21,370
)
Segment earnings (loss)
$
11,047

 
$
158

 
$
11,205

 
$
(118
)
 
$
(18
)
 
11,069

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(3,976
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(3,792
)
Amortization
 
 
 
 
 
 
 
 
 
 
(812
)
Hurricane-related costs(1)
 
 
 
 
 
 
 
 
 
 
(107
)
Other, net(5) 
 
 
 
 
 
 
 
 
 
 
345

Operating income
 
 
 
 
 
 
 
 
 
 
2,727

Interest expense
 
 
 
 
 
 
 
 
 
 
(2,365
)
Other expense, net
 
 
 
 
 
 
 
 
 
 
(59
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
303

 
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Year Ended March 31, 2017
 
 
 
 
 
 
 
Net operating revenues
$
31,787

 
$
1,545

 
$
15

 
$
33,347

Inter-segment revenues(2)
—

 
498

 
(498
)
 
—

Total segment operating expenses
(21,973
)
 
(1,924
)
 
484

 
(23,413
)
Segment earnings
$
9,814

 
$
119

 
$
1

 
9,934

Less:
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
(3,982
)
Depreciation - equipment rentals
 
 
 
 
 
 
(3,116
)
Amortization
 
 
 
 
 
 
(1,052
)
Other, net(5)
 
 
 
 
 
 
(20
)
Operating income
 
 
 
 
 
 
1,764

Interest expense
 
 
 
 
 
 
(2,495
)
Other expense, net
 
 
 
 
 
 
(40
)
Loss before income taxes
 
 
 
 
 
 
$
(771
)
 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
As of and for the year ended March 31, 2019
 
 
 
 
 
 
 
Capital expenditures
$
11,776

 
$
242

 
$
386

 
$
12,404

Total assets
$
74,929

 
$
1,148

 
$
8,524

 
$
84,601

 
 
 
 
 
 
 
 
As of and for the year ended March 31, 2018
 
 
 
 
 
 
 
Capital expenditures
$
10,221

 
$
166

 
$
393

 
$
10,780

Total assets
$
73,834

 
$
1,117

 
$
10,508

 
$
85,459

 
 
 
 
 
 
 
 
As of and for the year ended March 31, 2017
 
 
 
 
 
 
 
Capital expenditures
$
6,568

 
$
94

 
$
264

 
$
6,926

Total assets
$
74,098

 
$
1,168

 
$
9,857

 
$
85,123

 
 
 
 
 
 
 
 
 _________________
(1)
The year ended March 31, 2019 includes $32 million of hurricane-related reimbursements, which are classified in our consolidated statements of operations 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 year ended March 31, 2018 includes $107 million of hurricane-related costs which are classified in our consolidated statements of operations as follows: $33 million as contra-revenue in net operating revenues, $48 million as cost of services, $21 million as selling, general and administrative expenses and $5 million as other, net, all within the Wireless segment. In addition, the year ended March 31, 2018 includes a $51 million charge related to a regulatory fee matter, which is classified as cost of services in our consolidated statements of operations.
(2)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to, or use by, wireless subscribers.
(3)
The year ended March 31, 2019 includes $346 million of merger-related costs, which were recorded as selling, general and administrative expenses in the consolidated statements of operations.
(4)
During the year ended March 31, 2019, the Company completed its annual impairment testing for goodwill assigned to the Wireless reporting unit and as a result, recorded a non-cash impairment charge of $2.0 billion. See Note 6. Intangible Assets.
(5)
Other, net for the year ended March 31, 2019 consists of $85 million of severance and exit costs primarily due to access termination charges, lease exit costs and reductions in work force. The year ended March 31, 2019 includes $492 million of loss on disposal of property, plant and equipment primarily related to cell site construction costs and network equipment that are no longer recoverable as a result of changes in our network plans. In addition, the year ended March 31, 2019 includes a $15 million gain from the sale of certain assets, $74 million in litigation expense and $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 year ended March 31, 2018 consists of $80 million of severance and exit costs and a $364 million loss on disposal of property, plant and equipment, which consisted of a $370 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 year ended March 31, 2018 included a $479 million non-cash gain related to spectrum license exchanges with other carriers, net reductions of $305 million primarily associated with legal settlements or favorable developments in pending legal proceedings, combined with a $5 million reversal of previously accrued contract termination costs related to the termination of our relationship with General Wireless Operations Inc. (RadioShack). Other, net for the year ended March 31, 2017 consists of $66 million of severance and exit costs, $140 million for a state tax matter combined with legal reserves related to other pending legal suits and proceedings, and a $28 million loss on disposal of property, plant and equipment related to cell site construction costs that are no longer recoverable as a result of changes in our network plans. In addition, the year ended March 31, 2017 included a $354 million non-cash gain related to spectrum license exchanges with other carriers and $140 million of contract termination costs, primarily related to the termination of our pre-existing wholesale arrangement with nTelos, as a result of the Shentel transaction combined with the costs related to the termination of our relationship with General Wireless Operations Inc. (RadioShack).
Operating Revenues by Service and Products
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Year Ended March 31, 2019
 
 
 
 
 
 
 
Service revenue(2)
$
20,653

 
$
1,211

 
$
(272
)
 
$
21,592

Wireless equipment sales
5,606

 
—

 
—

 
5,606

Wireless equipment rentals
5,137

 
—

 
—

 
5,137

Other
1,160

 
85

 
17

 
1,262

Total net operating revenues
$
32,556

 
$
1,296

 
$
(255
)
 
$
33,597

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Year Ended March 31, 2018
 
 
 
 
 
 
 
Service revenue(2)
$
21,400

 
$
1,514

 
$
(328
)
 
$
22,586

Wireless equipment sales
4,524

 
—

 
—

 
4,524

Wireless equipment rentals
4,048

 
—

 
—

 
4,048

Other
1,198

 
65

 
18

 
1,281

Total net operating revenues
$
31,170

 
$
1,579

 
$
(310
)
 
$
32,439

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Year Ended March 31, 2017
 
 
 
 
 
 
 
Service revenue(3)
$
22,755

 
$
1,962

 
$
(495
)
 
$
24,222

Wireless equipment sales
4,684

 
—

 
—

 
4,684

Wireless equipment rentals
3,295

 
—

 
—

 
3,295

Other(3)
1,053

 
81

 
12

 
1,146

Total net operating revenues
$
31,787

 
$
2,043

 
$
(483
)
 
$
33,347

 
 
 
 
 
 
 
 

_______________
(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 for the year ended March 31, 2019 excludes $3 million of hurricane-related revenue reimbursements reflected in net operating revenues in our consolidated statements of operations. Service revenue related to the Wireless segment for the year ended March 31, 2018 excludes $33 million of hurricane-related contra-revenue costs reflected in net operating revenues in our consolidated statements of operations.
(3)
Sprint is no longer reporting Lifeline subscribers due to regulatory changes resulting in tighter program restrictions. We have excluded these subscribers from our customer base for all periods presented, including our Assurance Wireless prepaid brand and subscribers through our wholesale Lifeline mobile virtual network operators (MVNO). The above tables reflect the reclassification of the related Assurance Wireless prepaid revenue within the Wireless segment from Wireless services to Other of $360 million for the year ended March 31, 2017. Revenue associated with subscribers through our wholesale Lifeline MVNOs continues to remain in Other following this change.