Installment Receivables

12 Months Ended

Mar. 31, 2016

Certain subscribers have the option to purchase their devices in installments up to a 24-month period. Short-term installment receivables were recorded in "Accounts and notes receivable, net" and long-term installment receivables were recorded in "Other assets" in the consolidated balance sheets. Beginning in October 2015, Sprint sold, derecognized and continues to sell all eligible installment receivables. As of March 31, 2016, the amount of ineligible installment receivables were immaterial (see Note 4. Funding Sources).

The following table summarizes the installment receivables as of the prior fiscal year before sales had commenced:



	March 31, 2015
	(in millions)
Installment receivables, gross	$	1,725
Deferred interest	(139		)
Installment receivables, net of deferred interest	1,586
Allowance for credit losses	(190		)
Installment receivables, net	$	1,396

Classified on the consolidated balance sheets as:
Accounts and notes receivable, net	$	1,035
Other assets	361
Installment receivables, net	$	1,396

The balance and aging of installment receivables on a gross basis by credit category were as follows as of the prior fiscal year before sales had commenced:



	March 31, 2015
	Prime		Subprime		Total
	(in millions)
Unbilled	$	1,243	$	359	$	1,602
Billed - current	65		22		87
Billed - past due	21		15		36
Installment receivables, gross	$	1,329	$	396	$	1,725

Activity in the deferred interest and allowance for credit losses for the installment receivables was as follows:



	Year Ended March 31,			Year Ended March 31,
	2016			2015
	(in millions)
Deferred interest and allowance for credit losses, beginning of period	$	329		$	124
Bad debt expense	93			398
Write-offs, net of recoveries	(105		)	(255		)
Change in deferred interest on short-term and long-term installment receivables	(43		)	62
Derecognition of deferred interest and allowance for credit losses	(274		)	—
Deferred interest and allowance for credit losses, end of period	$	—		$	329