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Segments
12 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segments
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 and equipment revenue from the sale of wireless devices (handset and tablets) and accessories in the U.S., Puerto Rico and the U.S. Virgin Islands.
Wireline primarily includes revenue from domestic and international wireline voice and data 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 (loss) income 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. Over the past several years, there has been an industry-wide trend of lower rates due to increased competition from other wireline and wireless communications companies as well as cable and Internet service providers.
Segment financial information is as follows:  
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(1) 

 
498

 
(498
)
 

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

 
(23,413
)
Segment earnings
$
9,814

 
$
119

 
$
1

 
9,934

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(7,098
)
Amortization
 
 
 
 
 
 
(1,052
)
Other, net(3) 
 
 
 
 
 
 
(20
)
Operating income
 
 
 
 
 
 
1,764

Interest expense
 
 
 
 
 
 
(2,495
)
Other expense, net
 
 
 
 
 
 
(40
)
Loss before income taxes
 
 
 
 
 
 
$
(771
)
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Year Ended March 31, 2016
 
 
 
 
 
 
 
Net operating revenues
$
30,377

 
$
1,790

 
$
13

 
$
32,180

Inter-segment revenues(1) 

 
592

 
(592
)
 

Total segment operating expenses
(22,326
)
 
(2,290
)
 
582

 
(24,034
)
Segment earnings
$
8,051

 
$
92

 
$
3

 
8,146

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(5,794
)
Amortization
 
 
 
 
 
 
(1,294
)
Other, net(3) 
 
 
 
 
 
 
(748
)
Operating income
 
 
 
 
 
 
310

Interest expense
 
 
 
 
 
 
(2,182
)
Other income, net
 
 
 
 
 
 
18

Loss before income taxes
 
 
 
 
 
 
$
(1,854
)
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Year Ended March 31, 2015
 
 
 
 
 
 
 
Net operating revenues
$
32,327

 
$
2,191

 
$
14

 
$
34,532

Inter-segment revenues(1)

 
623

 
(623
)
 

Total segment operating expenses
(26,433
)
 
(2,701
)
 
602

 
(28,532
)
Segment earnings
$
5,894

 
$
113

 
$
(7
)
 
6,000

Less:
 
 
 
 
 
 
 
Depreciation
 
 
 
 
 
 
(3,797
)
Amortization
 
 
 
 
 
 
(1,552
)
Impairments(2)
 
 
 
 
 
 
(2,133
)
Other, net(3)
 
 
 
 
 
 
(413
)
Operating loss
 
 
 
 
 
 
(1,895
)
Interest expense
 
 
 
 
 
 
(2,051
)
Other income, net
 
 
 
 
 
 
27

Loss before income taxes
 
 
 
 
 
 
$
(3,919
)
 
 
 
 
 
 
 
 
Other Information
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
(in millions)
As of and for the year ended March 31, 2017
 
 
 
 
 
 
 
Capital expenditures
$
3,517

 
$
94

 
$
264

 
$
3,875

Total assets
$
74,098

 
$
1,168

 
$
9,857

 
$
85,123

 
 
 
 
 
 
 
 
As of and for the year ended March 31, 2016
 
 
 
 
 
 
 
Capital expenditures
$
6,381

 
$
279

 
$
312

 
$
6,972

Total assets
$
73,408

 
$
1,255

 
$
4,312

 
$
78,975

 
 
 
 
 
 
 
 
As of and for the year ended March 31, 2015
 
 
 
 
 
 
 
Capital expenditures 
$
5,442

 
$
275

 
$
287

 
$
6,004

Total assets
$
75,533

 
$
1,262

 
$
6,046

 
$
82,841

 
 
 
 
 
 
 
 
 _________________
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.
(2)
Impairments for the year ended March 31, 2015 consist of a $1.9 billion trade name impairment related to the Wireless segment and a $233 million impairment related to Wireline long-lived assets.
(3)
Other, net for the year ended March 31, 2017 consists of $66 million of severance and exit costs, a $140 million charge 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. (Radio Shack). Losses totaling $481 million related to the write-off of leased devices associated with lease cancellations were excluded from Other, net and included within Wireless segment earnings. Other, net for the year ended March 31, 2016 consists of $409 million of severance and exit costs, combined with $193 million for legal reserves related to various pending legal suits and proceedings and a $166 million loss on disposal of property, plant and equipment related to cell site construction costs and other network costs that are no longer recoverable as a result of changes in the Company's network plans, partially offset by $20 million of income resulting from a revision to our estimate of a previously recorded reserve. Losses totaling $321 million relating to the write-off of leased devices associated with lease cancellations of $256 million and the loss on sale of devices to MLS under the Handset Sale-Leaseback Tranche 1 transaction for $65 million was excluded from Other, net and included within Wireless segment earnings. Other, net for the year ended March 31, 2015 consists of $304 million of severance and exit costs, combined with $91 million for legal reserves related to various pending legal suits and proceedings and $59 million for a partial pension settlement, partially offset by $41 million of income resulting from a revision to our estimate of a previously recorded reserve.

Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
(1)
 
Consolidated
 
(in millions)
Year Ended March 31, 2017
 
 
 
 
 
 
 
Wireless services
$
23,115

 
$

 
$

 
$
23,115

Wireless equipment
7,979

 

 

 
7,979

Voice

 
649

 
(249
)
 
400

Data

 
166

 
(89
)
 
77

Internet

 
1,147

 
(157
)
 
990

Other
693

 
81

 
12

 
786

Total net operating revenues
$
31,787

 
$
2,043

 
$
(483
)
 
$
33,347

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
(1)
 
Consolidated
 
(in millions)
Year Ended March 31, 2016
 
 
 
 
 
 
 
Wireless services
$
24,627

 
$

 
$

 
$
24,627

Wireless equipment
5,006

 

 

 
5,006

Voice

 
840

 
(329
)
 
511

Data

 
171

 
(69
)
 
102

Internet

 
1,284

 
(190
)
 
1,094

Other
744

 
87

 
9

 
840

Total net operating revenues
$
30,377

 
$
2,382

 
$
(579
)
 
$
32,180

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Year Ended March 31, 2015
 
 
 
 
 
 
 
Wireless services
$
26,544

 
$

 
$

 
$
26,544

Wireless equipment
4,990

 

 

 
4,990

Voice

 
1,174

 
(365
)
 
809

Data

 
213

 
(88
)
 
125

Internet

 
1,353

 
(165
)
 
1,188

Other
793

 
74

 
9

 
876

Total net operating revenues
$
32,327

 
$
2,814

 
$
(609
)
 
$
34,532

 
 
 
 
 
 
 
 

_______________
(1)
Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers.