
Note 6.	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 $763 million and $2.0 billion as of December 31, 2015 and 2014, respectively. The following table presents the components of property, plant and equipment and the related accumulated depreciation:



	December 31, 2015			March 31, 2015
	(in millions)
Land	$	266		$	266
Network equipment, site costs and related software	21,304			18,990
Buildings and improvements	793			754
Non-network internal use software, office equipment, leased devices and other	5,346			2,979
Construction in progress	1,395			2,090
Less: accumulated depreciation	(8,459		)	(5,358		)
Property, plant and equipment, net	$	20,645		$	19,721

In September 2014, Sprint introduced a leasing program, 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 turn in their device, continue leasing their device, or purchase the device. As of December 31, 2015, a majority of our device leases were classified as operating leases. At lease inception, the devices leased through Sprint's direct channels are reclassified from inventory to property, plant and equipment. For those devices leased through indirect channels, Sprint purchases the device to be leased from the retailer at lease inception. The devices are then depreciated using the straight-line method to their estimated residual value over the estimated useful life, which is based on the lease term.

The following table presents leased devices and the related accumulated depreciation:



	December 31, 2015			March 31, 2015
	(in millions)
Leased devices	$	4,120		$	1,974
Less: accumulated depreciation	(799		)	(197		)
Leased devices, net	$	3,321		$	1,777

During the nine-month periods ended December 31, 2015 and 2014, there were non-cash transfers to leased devices of approximately $2.6 billion and $700 million, respectively, along with a corresponding decrease in "Device and accessory inventory." In addition, during the three-month period ended December 31, 2015, we sold devices totaling $1.3 billion (See Note 3. Funding Sources). Non-cash accruals included in leased devices totaled approximately $306 million and $150 million as of December 31, 2015 and 2014, respectively, for devices purchased from indirect dealers that were leased to our subscribers. Depreciation expense incurred on all leased devices for the three and nine-month periods ended December 31, 2015 was $535 million and $1.2 billion, respectively. Depreciation expense incurred on all leased devices for three and nine-month periods ended December 31, 2014 was $54 million and $56 million, respectively.

During the three and nine-month periods ended December 31, 2015, we recorded $78 million and $163 million, respectively, of loss on disposal of property, plant and equipment, which is included in "Other, net" in our consolidated statements of comprehensive loss. These losses resulted from the write-off of leased devices associated with lease cancellations prior to the scheduled customer lease terms where customers did not return the devices to us and cell site construction costs that are no longer recoverable as a result of changes in the Company's network plans.

Impairments

During the three-month period ended December 31, 2014, we also recorded an impairment loss of $233 million, which is included in “Impairments” in our consolidated statements of comprehensive loss, to reduce the carrying value of the Wireline asset group, which includes the Wireline long-lived assets, to its estimated fair value of $918 million as of December 31, 2014.