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Segments
 6 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment
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, revenue from the sale of wireless devices (handsets and tablets) and accessories, and equipment rentals from devices leased to customers, all of which are generated in the U.S., Puerto Rico and the U.S. Virgin Islands.
•
Wireline primarily includes revenue from domestic and international wireline 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 income (loss) 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. The impact of intercompany pricing rate changes to our Wireline segment earnings does not affect our consolidated results of operations as our Wireless segment has an equivalent offsetting impact in cost of services.
Segment financial information is as follows:  
Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
Net operating revenues
$
7,567

 
$
227

 
$
1

 
$
7,795

Inter-segment revenues(1)
—

 
73

 
(73
)
 
—

Total segment operating expenses(2)
(5,005
)
 
(305
)
 
69

 
(5,241
)
Segment earnings (loss)
$
2,562

 
$
(5
)
 
$
(3
)
 
2,554

Less:
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
(1,065
)
Depreciation - equipment rentals
 
 
 
 
 
 
(1,056
)
Amortization
 
 
 
 
 
 
(106
)
Merger costs(2)
 
 
 
 
 
 
(69
)
Other, net(3)
 
 
 
 
 
 
(21
)
Operating income
 
 
 
 
 
 
237

Interest expense
 
 
 
 
 
 
(594
)
Other income, net
 
 
 
 
 
 
14

Loss before income taxes
 
 
 
 
 
 
$
(343
)
Statement of Operations Information
Wireless including hurricane
 
Wireless hurricane
 
Wireless excluding hurricane
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(4)
$
8,169

 
$
(3
)
 
$
8,166

 
$
260

 
$
4

 
$
8,430

Inter-segment revenues(1)
—

 
—

 
—

 
68

 
(68
)
 
—

Total segment operating expenses(2)(4)
(4,883
)
 
(7
)
 
(4,890
)
 
(348
)
 
64

 
(5,174
)
Segment earnings (loss)
$
3,286

 
$
(10
)
 
$
3,276

 
$
(20
)
 
$
—

 
3,256

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(1,021
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(1,181
)
Amortization
 
 
 
 
 
 
 
 
 
 
(159
)
Hurricane-related reimbursements(4)
 
 
 
 
 
 
 
 
 
 
32

Merger costs(2)
 
 
 
 
 
 
 
 
 
 
(56
)
Other, net(3)
 
 
 
 
 
 
 
 
 
 
(93
)
Operating income
 
 
 
 
 
 
 
 
 
 
778

Interest expense
 
 
 
 
 
 
 
 
 
 
(633
)
Other income, net
 
 
 
 
 
 
 
 
 
 
79

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
224

Statement of Operations Information
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2019
 
 
 
 
 
 
 
Net operating revenues
$
15,468

 
$
463

 
$
6

 
$
15,937

Inter-segment revenues(1)
—

 
144

 
(144
)
 
—

Total segment operating expenses(2)
(9,869
)
 
(612
)
 
140

 
(10,341
)
Segment earnings (loss)
$
5,599

 
$
(5
)
 
$
2

 
5,596

Less:
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
(2,185
)
Depreciation - equipment rentals
 
 
 
 
 
 
(2,085
)
Amortization
 
 
 
 
 
 
(224
)
Merger costs(2)
 
 
 
 
 
 
(152
)
Other, net(3)
 
 
 
 
 
 
(258
)
Operating income
 
 
 
 
 
 
692

Interest expense
 
 
 
 
 
 
(1,213
)
Other income, net
 
 
 
 
 
 
42

Loss before income taxes
 
 
 
 
 
 
$
(479
)
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations Information
Wireless including hurricane
 
Wireless hurricane
 
Wireless excluding hurricane
 
Wireline
 
Corporate,
Other and
Eliminations
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues(4)
$
16,014

 
$
(3
)
 
$
16,011

 
$
536

 
$
8

 
$
16,555

Inter-segment revenues(1)
—

 
—

 
—

 
130

 
(130
)
 
—

Total segment operating expenses(2)(4)
(9,410
)
 
(7
)
 
(9,417
)
 
(728
)
 
126

 
(10,019
)
Segment earnings (loss)
$
6,604

 
$
(10
)
 
$
6,594

 
$
(62
)
 
$
4

 
6,536

Less:
 
 
 
 
 
 
 
 
 
 
 
Depreciation - network and other
 
 
 
 
 
 
 
 
 
 
(2,044
)
Depreciation - equipment rentals
 
 
 
 
 
 
 
 
 
 
(2,317
)
Amortization
 
 
 
 
 
 
 
 
 
 
(330
)
Hurricane-related reimbursements(4)
 
 
 
 
 
 
 
 
 
 
32

Merger costs(2)
 
 
 
 
 
 
 
 
 
 
(149
)
Other, net(3)
 
 
 
 
 
 
 
 
 
 
(135
)
Operating income
 
 
 
 
 
 
 
 
 
 
1,593

Interest expense
 
 
 
 
 
 
 
 
 
 
(1,270
)
Other income, net
 
 
 
 
 
 
 
 
 
 
121

Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
444

 
 
 
 
 
 
 
 
 
 
 
 
Other Information
 
 
 
 
Wireless
 
Wireline
 
Corporate and
Other
 
Consolidated
 
 
 
 
 
(in millions)
Capital expenditures for the six months ended September 30, 2019
 
 
 
 
$
5,292

 
$
58

 
$
250

 
$
5,600

Capital expenditures for the six months ended September 30, 2018
 
 
 
 
$
5,644

 
$
106

 
$
172

 
$
5,922

_________________
(1)
Inter-segment revenues consist primarily of wireline services provided to the Wireless segment for resale to, or use by, wireless subscribers.
(2)
The three- and six-month periods ended September 30, 2019 and 2018 includes $69 million, $152 million, $56 million, and $149 million, respectively, of merger-related costs, which were recorded in "Selling, general and administrative" in the consolidated statements of comprehensive (loss) income.
(3)
Other, net for the three- and six-month periods ended September 30, 2019 consists of $2 million and $212 million, respectively, of asset impairment charges primarily related to the sale and leaseback of our Overland Park, Kansas campus and $19 million and $46 million, respectively, of severance and exit costs due to access termination charges and reductions in work force. Other, net for the three- and six-month periods ended September 30, 2018 consists of $25 million and $33 million, respectively, of severance and exit costs primarily due to reductions in work force, access termination charges and lease exit costs. In addition, both the three- and six-month periods ended September 30, 2018 consist of a $68 million loss on disposal of property, plant and equipment 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. The six-month period ended September 30, 2018 consists of $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.
(4)
The three- and six-month periods ended September 30, 2018 includes $32 million of hurricane-related reimbursements, which are classified in our consolidated statements of comprehensive (loss) income 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.
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2019
 
 
 
 
 
 
 
Service revenue
$
5,010

 
$
282

 
$
(73
)
 
$
5,219

Wireless equipment sales
1,192

 
—

 
—

 
1,192

Wireless equipment rentals
1,330

 
—

 
—

 
1,330

Other 
35

 
18

 
1

 
54

Total net operating revenues
$
7,567

 
$
300

 
$
(72
)
 
$
7,795

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Three Months Ended September 30, 2018
 
 
 
 
 
 
 
Service revenue(2)
$
5,206

 
$
303

 
$
(68
)
 
$
5,441

Wireless equipment sales
1,418

 
—

 
—

 
1,418

Wireless equipment rentals
1,253

 
—

 
—

 
1,253

Other
289

 
25

 
4

 
318

Total net operating revenues
$
8,166

 
$
328

 
$
(64
)
 
$
8,430

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2019
 
 
 
 
 
 
 
Service revenue
$
10,052

 
$
571

 
$
(144
)
 
$
10,479

Wireless equipment sales
2,412

 
—

 
—

 
2,412

Wireless equipment rentals
2,689

 
—

 
—

 
2,689

Other
315

 
36

 
6

 
357

Total net operating revenues
$
15,468

 
$
607

 
$
(138
)
 
$
15,937

 
 
 
 
 
 
 
 
Operating Revenues by Service and Products
Wireless
 
Wireline
 
Corporate,
Other and
Eliminations(1)
 
Consolidated
 
(in millions)
Six Months Ended September 30, 2018
 
 
 
 
 
 
 
Service revenue(2)
$
10,376

 
$
617

 
$
(130
)
 
$
10,863

Wireless equipment sales
2,591

 
—

 
—

 
2,591

Wireless equipment rentals
2,465

 
—

 
—

 
2,465

Other
579

 
49

 
8

 
636

Total net operating revenues
$
16,011

 
$
666

 
$
(122
)
 
$
16,555

 
 
 
 
 
 
 
 

_______________
(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 in the three- and six-month periods ended September 30, 2018 excludes $3 million of hurricane-related revenue reimbursements reflected in net operating revenues in our consolidated statements of comprehensive (loss) income.