Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Cover page. | ||
Document Transition Report | false | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Tax Identification Number | 46-1170005 | |
Entity Address, Address Line One | 6200 Sprint Parkway, | |
Entity Address, City or Town | Overland Park, | |
Entity Address, State or Province | KS | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | S | |
Entity Registrant Name | SPRINT CORPORATION | |
Entity Central Index Key | 0000101830 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,092,896,454 | |
Entity File Number | 1-04721 | |
City Area Code | 913 | |
Local Phone Number | 794-1091 | |
Entity Address, Postal Zip Code | 66251 | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Operating Lease, Liability, Current | $ 1,680 | |
Current Assets | ||
Cash and Cash Equivalents | 4,869 | $ 6,982 |
Short-term Investments | 0 | 67 |
Accounts and notes receivable, net | 3,558 | 3,554 |
Device and accessory inventory | 726 | 999 |
Prepaid expenses and other current assets | 1,436 | 1,289 |
Total current assets | 10,589 | 12,891 |
Property, plant and equipment, net | 20,556 | 21,201 |
Costs to acquire a customer contract | 1,631 | 1,559 |
Operating Lease, Right-of-Use Asset | 7,054 | |
Intangible assets | ||
Goodwill | 4,598 | 4,598 |
FCC licenses and other | 41,474 | 41,465 |
Property, plant and equipment | 1,525 | 1,769 |
Other assets | 1,119 | 1,118 |
Total assets | 88,546 | 84,601 |
Current Liabilities | ||
Accounts payable | 3,672 | 3,961 |
Accrued expenses and other current liabilities | 3,048 | 3,597 |
Current portion of long-term debt, financing and capital lease obligations | 2,889 | 4,557 |
Total current liabilities | 11,289 | 12,115 |
Long-term debt, financing and capital lease obligations | 35,073 | 35,366 |
Operating Lease, Liability, Noncurrent | 5,913 | |
Deferred tax liabilities | 7,563 | 7,556 |
Other liabilities | 2,540 | 3,437 |
Total liabilities | 62,378 | 58,474 |
Commitments and contingencies | ||
Shareholders' Equity | ||
Common stock, voting, par value $0.01 per share, 9.0 billion authorized, 4.013 billion and 4.005 billion issued, respectively | 41 | 41 |
Paid-in capital | 28,323 | 28,306 |
Treasury shares, at cost | 2 | 0 |
Accumulated deficit | (1,832) | (1,883) |
Accumulated other comprehensive loss | (414) | (392) |
Total stockholders' equity | 26,116 | 26,072 |
Stockholders' Equity Attributable to Noncontrolling Interest | 52 | 55 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 26,168 | 26,127 |
Liabilities and Equity | $ 88,546 | $ 84,601 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 373 | $ 363 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 9,000,000,000 | 9,000,000,000 |
Common Stock, Shares, Issued | 4,092,000,000 | 4,081,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue, Net | ||
Service revenue | $ 8,142 | $ 8,125 |
Revenue, equipment sales, net | 1,220 | 1,173 |
Revenue, equipment rentals, net | 1,359 | 1,212 |
Net operating revenues | 8,142 | 8,125 |
Net operating expenses | ||
Cost of Goods and Services Sold | 1,710 | 1,677 |
Cost of equipment sales | 1,341 | 1,270 |
Cost of equipment rentals | 225 | 124 |
Selling, general and administrative | 1,907 | 1,867 |
Severance and exit costs | (27) | |
Depreciation, network and other | 1,120 | 1,023 |
Depreciation, equipment rentals | 1,029 | 1,136 |
Amortization | 118 | 171 |
Other, net | 237 | 42 |
Total costs and expenses | 7,687 | 7,310 |
Operating Income | 455 | 815 |
Other (expense) income | ||
Interest Expense | (619) | (637) |
Other income, net | 28 | 42 |
Nonoperating Expense | (591) | (595) |
Loss (income) before income taxes | (136) | 220 |
Income tax benefit | 22 | (47) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (114) | 173 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3 | 3 |
Net Income (Loss) Attributable to Parent | $ (111) | $ 176 |
Basic net (loss) income per common share | $ (0.03) | $ 0.04 |
Diluted net (loss) income per common share | $ (0.03) | $ 0.04 |
Basic weighted average common shares outstanding | 4,087 | 4,010 |
Diluted weighted average common shares outstanding | 4,087 | 4,061 |
Other comprehensive (loss) income, net of tax: | ||
Net unrealized holding gains on securities and other | $ (3) | $ (8) |
Net unrealized holding (losses) gains on derivatives | (21) | 10 |
Net unrecognized net periodic pension and other postretirement benefits | 2 | 2 |
Other comprehensive income | (22) | (4) |
Comprehensive (loss) income | (136) | 169 |
Services [Member] | ||
Revenue, Net | ||
Service revenue | $ 5,563 | $ 5,740 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (114) | $ 173 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Impairments | 210 | 0 |
Depreciation and amortization | 2,267 | 2,330 |
Bad debt expense | 117 | 57 |
Share-based and long-term incentive compensation expense | 35 | 40 |
Deferred income tax benefit | (33) | 39 |
Amortization and accretion of long-term debt premiums and discounts | (16) | (33) |
Loss on Disposition of Property Plant Equipment | 225 | 124 |
Other changes in assets and liabilities: | ||
Accounts and notes receivable | (121) | 273 |
Deferred purchase price from sale of receivables | 0 | (170) |
Inventories and other current assets | 456 | 421 |
Accounts payable and other current liabilities | (660) | (766) |
Non-current assets and liabilities, net | (136) | (197) |
Other, net | 60 | 139 |
Net cash provided by operating activities | 2,244 | 2,430 |
Cash flows from investing activities | ||
Capital expenditures - network and other | (1,189) | (1,132) |
Capital expenditures - leased devices | (1,516) | (1,817) |
Expenditures relating to FCC licenses | (9) | (59) |
Proceeds from sales and maturities of short-term investments | 0 | 810 |
Purchases of short-term investments | (67) | (2,464) |
Proceeds from sales of assets and FCC Licenses | 182 | 133 |
Proceeds from Sale and Collection of Receivables | 0 | 170 |
Other, net | (3) | (10) |
Net Cash Used in Investing Activities | (2,468) | (4,369) |
Cash flows from financing activities | ||
Proceeds from debt and financings | 1,061 | 1,370 |
Repayments of debt and capital lease obligations | (2,919) | (1,415) |
Debt financing costs | 12 | 248 |
Proceeds from issuance of common stock, net | (17) | 0 |
Other, net | 0 | (2) |
Net cash provided by (used in) financing activities | (1,887) | (295) |
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, Period Increase (Decrease) | (2,111) | $ (2,234) |
Cash and cash equivalents, end of period | 4,869 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 4,952 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
Total stockholders' equity | $ 0 | ||||||
Net Income (Loss) Attributable to Parent | $ 176 | $ 176 | |||||
Balance (in shares) at Mar. 31, 2018 | 4,005 | ||||||
Beginning Balance at Mar. 31, 2018 | 26,419 | $ 40 | $ 27,884 | (1,255) | $ (313) | $ 63 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | 173 | (3) | |||||
Other Comprehensive Income, Other, Net of Tax | 4 | ||||||
Stock Issued During Period, Shares, New Issues | 8 | ||||||
Stock Issued During Period, Value, New Issues | (2) | 2 | |||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 1 | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ (4) | ||||||
Share-based compensation expense | 40 | 40 | |||||
Capital contribution by SoftBank | 1 | 1 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 1,315 | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | (8) | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 1,307 | ||||||
Other, net | 3 | (3) | |||||
Cumulative effect of accounting change | 0 | 8 | (8) | ||||
Balance (in shares) at Jun. 30, 2018 | 4,013 | 1 | |||||
Ending Balance at Jun. 30, 2018 | 27,945 | $ 40 | 27,938 | 236 | (317) | 52 | |
Total stockholders' equity | $ (4) | ||||||
Total stockholders' equity | 26,072 | $ 0 | |||||
Net Income (Loss) Attributable to Parent | (111) | (111) | |||||
Balance (in shares) at Mar. 31, 2019 | 4,081 | ||||||
Beginning Balance at Mar. 31, 2019 | 26,127 | $ 41 | 28,306 | (1,883) | (392) | 55 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (114) | (3) | |||||
Other Comprehensive Income, Other, Net of Tax | (22) | ||||||
Stock Issued During Period, Shares, New Issues | 11 | ||||||
Stock Issued During Period, Value, New Issues | (17) | (15) | |||||
Stock Issued During Period, Shares, Treasury Stock Reissued | 0 | ||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ (2) | ||||||
Share-based compensation expense | 35 | 35 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 162 | ||||||
Other, net | (3) | 3 | |||||
Cumulative effect of accounting change | 162 | 0 | 0 | ||||
Balance (in shares) at Jun. 30, 2019 | 4,092 | 0 | |||||
Ending Balance at Jun. 30, 2019 | 26,168 | $ 41 | $ 28,323 | $ (1,832) | $ (414) | $ 52 | |
Total stockholders' equity | $ 26,116 | $ (2) |
Basis of Presentation and Other
Basis of Presentation and Other Information | 3 Months Ended |
Jun. 30, 2019 | |
Nature of Operations [Abstract] | |
Basis of Presentation and Other Information | Basis of Presentation and Other Information Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. All normal recurring adjustments considered necessary for a fair presentation have been included. Certain disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended March 31, 2019 . Unless the context otherwise requires, references to "Sprint," "we," "us," "our" and the "Company" mean Sprint Corporation and its consolidated subsidiaries for all periods presented, and references to "Sprint Communications" are to Sprint Communications, Inc. and its consolidated subsidiaries. The preparation of the unaudited interim consolidated financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements. These estimates are inherently subject to judgment and actual results could differ. The consolidated financial statements include our accounts, those of our 100% owned subsidiaries, and subsidiaries we control or in which we have a controlling financial interest. For controlled subsidiaries that are not wholly-owned, the noncontrolling interests are included in "Net (loss) income" and "Total equity." All intercompany transactions and balances have been eliminated in consolidation. Business Combination Agreement On April 29, 2018, we announced that we entered into a Business Combination Agreement with T-Mobile US, Inc. (T-Mobile) to merge in an all-stock transaction for a fixed exchange ratio of 0.10256 of T-Mobile shares for each Sprint share, or the equivalent of 9.75 Sprint shares for each T-Mobile share (Merger Transaction) . Immediately following the Merger Transaction, Deutsche Telekom AG and SoftBank Group Corp. are expected to hold approximately 42% and 27% of fully-diluted shares of the combined company, respectively, with the remaining 31% of the fully-diluted shares of the combined company held by public stockholders. The board of directors will consist of 14 directors, of which nine will be nominated by Deutsche Telekom AG, four will be nominated by SoftBank Group Corp., and the final director will be the CEO of the combined company. The combined company will be named T-Mobile. The Merger Transaction is subject to customary closing conditions, including certain state and federal regulatory approvals. Sprint and T-Mobile completed the Hart-Scott-Rodino filing with the Department of Justice (DOJ) on May 24, 2018. On June 18, 2018, the parties filed with the Federal Communications Commission ( FCC) the merger applications, including the Public Interest Statement. On July 18, 2018, the FCC accepted the applications for filing and established a public comment period for the Merger Transaction. The formal comment period concluded on October 31, 2018. On May 20, 2019, to facilitate the FCC’s review and approval of the FCC license transfers associated with the proposed Merger Transaction, we and T-Mobile filed with the FCC a written ex parte presentation (the Presentation) relating to the proposed Merger Transaction. The Presentation included proposed commitments from us and T-Mobile. Following the Presentation, we received statements of support for the Merger Transaction by the FCC Chairman Ajit Pai and Commissioners Carr and O’Rielly. Formal action on the Merger Transaction by the FCC remains pending. The Merger Transaction received clearance from the Committee on Foreign Investment in the United States on December 17, 2018. On July 26, 2019, the DOJ and five State Attorneys General filed an action in the United States District Court for the District of Columbia that would resolve their objections to the Merger Transaction. The Merger Transaction has received approval from 18 of the 19 state public utility commissions. The parties are awaiting further regulatory approvals, and resolution of litigation filed by the Attorneys General of 14 states and the District of Columbia seeking to block the Merger Transaction. Sprint and T-Mobile also announced agreements with DISH Network Corporation (DISH) in which new T-Mobile will divest Sprint’s prepaid businesses (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Telecommunications Company and Swiftel Communications, Inc.) and Sprint’s 800 MHz spectrum assets to DISH for a total of approximately $5.0 billion. Additionally, upon the closing of the divestiture transaction, new T-Mobile will provide DISH wireless customers access to its network for up to seven years and offer standard transition services arrangements to DISH during a transition period of up to three years. DISH will also have an option to take on leases for certain cell sites and retail locations that are decommissioned by the new T-Mobile, subject to any assignment restrictions. The transactions with DISH are contingent on the successful closing of T-Mobile’s merger with Sprint, among other closing conditions. Additionally, the parties to the Business Combination Agreement extended the Outside Date (as defined in the Business Combination Agreement) to November 1, 2019, or, if the Marketing Period (as defined in the Business Combination Agreement) is in effect at such time, then the Outside Date will be January 2, 2020. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted During the Current Year In February 2016, the Financial Accounting Standards Board (FASB) issued new authoritative literature, Leases (Topic 842), and has subsequently modified several areas of the standard in order to provide additional clarity and improvements . The new standard supersedes much of the existing lease guidance (Topic 840) to enhance the transparency and comparability of financial reporting related to leasing arrangements. This guidance requires lessees, among other things, to recognize right-of-use (ROU) assets and lease liabilities on their balance sheet for all leases. The criteria for distinguishing leases between finance and operating are substantially similar to criteria for distinguishing between capital leases and operating leases in previous lease guidance. In July 2018, the FASB made targeted improvements to the standard, including providing an additional and optional transition method. Under this method, an entity initially applies the standard at the adoption date, including the election of certain transition reliefs, and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard beginning on April 1, 2019 using the modified retrospective transition method such that the comparative period financial statements and disclosures were not adjusted. Results for reporting periods beginning after April 1, 2019 are presented under Topic 842, while amounts reported under prior periods have not been adjusted and continue to be reported under accounting standards in effect for those periods. See Note 7. Leases for additional information related to operating and financing leases, including qualitative and quantitative disclosures required under Topic 842. The new standard provides for a number of optional practical expedients in transition. We elected the package of practical expedients as defined by the standard that allows an entity not to reassess: • whether expired or existing contracts contain leases under the new definition of a lease; • lease classification for expired or existing leases; and • whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. Additionally, the Company elected the permitted practical expedient to use hindsight in determining the lease term under the new standard and the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements under existing agreements. The most significant change from adopting the new standard involved recognizing ROU assets and lease liabilities for operating leases which resulted in a material impact to our consolidated balance sheet. As of the adoption date, we recognized ROU assets in the amount of $7.4 billion and related liabilities in current liabilities of $1.8 billion and a long-term lease liability in the amount of $6.3 billion . This impact is inclusive of the following: • the recognition of the lease liability and ROU assets for operating leases that were not previously recorded. The ROU asset was adjusted for recognized balances associated with operating leases, including prepaid and deferred rent, cease-use liabilities and favorable or unfavorable intangible assets; and • the impact of our election to apply hindsight in determining the lease term, such that our lease liability generally only includes payments for the initial non-cancelable lease term. As the Company has elected the modified retrospective transition method, any assets and liabilities that were recognized solely as a result of a transaction where the Company was the deemed owner during construction were derecognized at transition for completed construction sites. The Company funded certain construction costs which were concluded to be prepaid lease payments; consequently, such amounts were carried over at their depreciated balance of approximately $0.6 billion and included in the associated finance lease ROU assets, which is included within "Property, Plant and Equipment, net" in the consolidated balance sheets. Additionally, the Company is party to several leaseback arrangements. Under the transition provision of Topic 842, we were required to reassess the previously failed sale-leasebacks of certain Sprint-owned wireless communication tower sites and determine whether the transfer of the assets to the tower operator under the arrangement met the transfer of control criteria in the revenue standard and the new leasing standard and whether a sale should be recognized. We concluded that a sale should be recognized for the approximately 1,750 remaining tower sites transferred to a third-party under an agreement that closed in 2008. Upon adoption on April 1, 2019, we derecognized our existing long-term financial obligation and the tower-related property and equipment associated with these previously failed sale-leaseback tower sites and recognized a lease liability and ROU asset for the leaseback of the tower sites. The impacts from the change in accounting conclusion are a decrease to accumulated deficit of $104 million , a decrease in liabilities of $108 million and a decrease in property, plant and equipment, net of $4 million upon transition to Topic 842. For lease arrangements where we are the lessor, the adoption of the standard did not have a material impact. While the standard modifies the classification and accounting for sales-type and direct finance leases, substantially all of the Company's current handset leases are classified as operating leases. If terms remain consistent with the Company’s current leasing program, we do not expect material sales-type or direct financing leases in future periods. The cumulative after-tax effect of the changes made to our consolidated balance sheet for the adoption of Topic 842 effective for the Company on April 1, 2019 were as follows: March 31, 2019 Effects of the adoption of Topic 842 April 1, 2019 (in millions) ASSETS Current assets: Prepaid expenses and other current assets $ 1,289 $ (111 ) $ 1,178 Property, plant and equipment 41,740 (31 ) 41,709 Accumulated depreciation (20,539 ) 27 (20,512 ) Property, plant and equipment, net 21,201 (4 ) 21,197 Operating lease right-of-use assets — 7,358 7,358 Definite-lived intangible assets, net 1,769 (119 ) 1,650 Other assets 1,118 (1 ) 1,117 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and other current liabilities $ 3,597 $ (178 ) $ 3,419 Current operating lease liabilities — 1,813 1,813 Current portion of long-term debt, financing and finance lease obligations 4,557 (43 ) 4,514 Long-term debt, financing and finance lease obligations 35,366 (67 ) 35,299 Long-term operating lease liabilities — 6,263 6,263 Deferred tax liabilities 7,556 46 7,602 Other liabilities 3,437 (873 ) 2,564 Stockholders' equity: (Accumulated deficit) retained earnings (1,883 ) 162 (1,721 ) In June 2018, the FASB issued authoritative guidance regarding Compensation - Stock Compensation , which expands the scope of ASC Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The Company adopted this standard on April 1, 2019 with no impact to our consolidated financial statements at the date of adoption. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued authoritative guidance regarding Financial Instruments - Credit Losses and has subsequently modified several areas of the standard in order to provide additional clarity and improvements. The new standard requires entities to use a Current Expected Credit Loss impairment model based on expected losses rather than incurred losses. Under this model, an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost within the scope of the standard. The entity's estimate would consider relevant information about past events, current conditions and reasonable and supportable forecasts, which will result in recognition of lifetime expected credit losses. The standard will be effective for the Company's fiscal year beginning April 1, 2020, including interim reporting periods within that fiscal year, although early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In August 2018, the FASB issued authoritative guidance regarding Fair Value Measurement: Disclosure Framework , which eliminates, adds and modifies certain disclosure requirements for fair value measurements. The standard will be effective for the Company for its fiscal year beginning April 1, 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the guidance and assessing its overall impact. However, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In August 2018, the FASB issued authoritative guidance regarding Intangibles - Goodwill and Other - Internal-Use Software , which aligns the requirements for a customer to capitalize implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard will be effective for the Company for its fiscal year beginning April 1, 2020, including interim periods within that fiscal year, with early adoption permitted. The Company is currently evaluating the guidance and assessing its overall impact. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The Company carries certain assets and liabilities at fair value. Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The three-tier hierarchy for inputs used in measuring fair value, which prioritizes the inputs based on the observability as of the measurement date, is as follows: quoted prices in active markets for identical assets or liabilities; observable inputs other than the quoted prices in active markets for identical assets and liabilities; and unobservable inputs for which there is little or no market data, which require the Company to develop assumptions of what market participants would use in pricing the asset or liability. The carrying amount of cash equivalents, accounts and notes receivable, and accounts payable approximates fair value. Short-term investments are recorded at amortized cost and the respective carrying amounts approximate the fair value that would be determined primarily using quoted prices in active markets. Sprint did not hold any short-term investments as of June 30, 2019 . As of March 31, 2019 , short-term investments consisted of $67 million of commercial paper. The fair value of marketable equity securities, totaling $1 million for both periods ended June 30, 2019 and March 31, 2019 , are measured on a recurring basis using quoted prices in active markets. Current and long-term debt inclusive of our other financings are carried at amortized cost. Debt for which estimated fair value is determined based on unobservable inputs primarily represents borrowings under our secured equipment credit facilities, and sales of receivables under our Accounts Receivable Facility (Receivables Facility). See Note 8. Long-Term Debt, Financing and Finance Lease Obligations for additional information. The carrying amounts associated with these borrowings approximate fair value. The estimated fair value of the majority of our current and long-term debt, excluding our secured equipment credit facilities, and sold wireless service, installment billing and future receivables is determined based on quoted prices in active markets or by using other observable inputs that are derived principally from, or corroborated by, observable market data. The following table presents carrying amounts and estimated fair values of current and long-term debt and financing obligations: Carrying amount at June 30, 2019 Estimated Fair Value Using Input Type Quoted prices in active markets Observable Unobservable Total estimated fair value (in millions) Current and long-term debt and financing obligations $ 38,335 $ 35,601 $ 198 $ 4,076 $ 39,875 Carrying amount at March 31, 2019 Estimated Fair Value Using Input Type Quoted prices in active markets Observable Unobservable Total estimated fair value (in millions) Current and long-term debt and financing obligations $ 40,193 $ 36,642 $ 197 $ 3,970 $ 40,809 |
Installment Receivables
Installment Receivables | 3 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Installment Receivables | Installment Receivables Certain subscribers have the option to pay for their devices in installments, generally up to a 24 -month period. Short-term installment receivables are recorded in "Accounts and notes receivable, net" and long-term installment receivables are recorded in "Other assets" in the consolidated balance sheets. The following table summarizes the installment receivables: June 30, March 31, (in millions) Installment receivables, gross $ 1,332 $ 1,212 Deferred interest (74 ) (71 ) Installment receivables, net of deferred interest 1,258 1,141 Allowance for credit losses (234 ) (215 ) Installment receivables, net $ 1,024 $ 926 Classified in the consolidated balance sheets as: Accounts and notes receivable, net $ 758 $ 679 Other assets 266 247 Installment receivables, net $ 1,024 $ 926 The balance and aging of installment receivables on a gross basis by credit category were as follows: June 30, 2019 March 31, 2019 Prime Subprime Total Prime Subprime Total (in millions) (in millions) Unbilled $ 722 $ 521 $ 1,243 $ 667 $ 459 $ 1,126 Billed - current 43 24 67 43 22 65 Billed - past due 10 12 22 10 11 21 Installment receivables, gross $ 775 $ 557 $ 1,332 $ 720 $ 492 $ 1,212 Activity in the deferred interest and allowance for credit losses for the installment receivables was as follows: Three Months Ended Twelve Months Ended June 30, 2019 March 31, 2019 (in millions) Deferred interest and allowance for credit losses, beginning of period $ 286 $ 323 Adjustment to deferred interest on short- and long-term installment receivables due to adoption of revenue recognition standard on April 1, 2018 — (50 ) Bad debt expense 50 116 Write-offs, net of recoveries (32 ) (118 ) Change in deferred interest on short- and long-term installment receivables 4 15 Deferred interest and allowance for credit losses, end of period $ 308 $ 286 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Indefinite-Lived Intangible Assets Our indefinite-lived intangible assets consist of FCC licenses, which were acquired primarily through FCC auctions and business combinations, certain of our trademarks, and goodwill. At June 30, 2019 , we held 800 MHz, 1.9 GHz and 2.5 GHz FCC licenses authorizing the use of radio frequency spectrum to deploy our wireless services. As long as the Company acts within the requirements and constraints of the regulatory authorities, the renewal and extension of these licenses is reasonably certain at minimal cost. Accordingly, we have concluded that FCC licenses are indefinite-lived intangible assets. Our Sprint and Boost Mobile trademarks have also been identified as indefinite-lived intangible assets. Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. The following provides the activity of indefinite-lived intangible assets within the consolidated balance sheets: March 31, Net Additions June 30, (in millions) FCC licenses $ 37,430 $ 9 $ 37,439 Trademarks 4,035 — 4,035 Goodwill (1) 4,598 — 4,598 $ 46,063 $ 9 $ 46,072 _________________ (1) Through March 31, 2019 accumulated impairment losses for goodwill were $2.0 billion . There were no additional accumulated impairment losses for the quarter ended June 30, 2019 . Assessment of Impairment Our annual impairment testing date for goodwill and indefinite-lived intangible assets is January 1 of each year; however, we test for impairment between our annual tests if an event occurs or circumstances change that indicate that the asset may be impaired, or in the case of goodwill, that the fair value of the reporting unit is below its carrying amount. Our most recent test for impairment of goodwill was completed at January 1, 2019 and we concluded that the carrying value of the Wireless reporting unit exceeded its estimated fair value by $2.0 billion . As a result, a goodwill impairment charge was recorded in our consolidated statements of operations for the year ended March 31, 2019. During the three-month period ended June 30, 2019, we did not record any further impairment to goodwill, nor did we record any impairment to other indefinite-lived intangible assets. The determination of fair value requires considerable judgment and is highly sensitive to changes in underlying assumptions. Consequently, there can be no assurance that the estimates and assumptions made for the purposes of the goodwill, spectrum licenses, and Sprint and Boost Mobile trade names impairment tests will prove to be an accurate prediction of the future. Sustained declines in the Company’s operating results, number of wireless subscribers, future forecasted cash flows, growth rates and other assumptions, as well as significant, persistent declines in the Company’s stock price and related market capitalization could impact the underlying key assumptions and our estimated fair values, potentially leading to a future material impairment of goodwill or other indefinite-lived intangible assets. Intangible Assets Subject to Amortization Customer relationships are amortized using the sum-of-the-months' digits method, while all other definite-lived intangible assets are amortized using the straight-line method over the estimated useful lives of the respective assets. We reduce the gross carrying value and associated accumulated amortization when specified intangible assets become fully amortized. Amortization expense related to favorable spectrum is recognized in "Cost of services" in our consolidated statements of comprehensive (loss) income . June 30, 2019 March 31, 2019 Useful Lives Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships 5 to 8 years $ 6,563 $ (6,139 ) $ 424 $ 6,563 $ (6,029 ) $ 534 Other intangible assets: Favorable spectrum leases 23 years 807 (202 ) 605 763 (150 ) 613 Favorable tower leases (1) — — — — 335 (215 ) 120 Trademarks 2 to 34 years 520 (93 ) 427 520 (89 ) 431 Other 5 to 10 years 139 (70 ) 69 137 (66 ) 71 Total other intangible assets 1,466 (365 ) 1,101 1,755 (520 ) 1,235 Total definite-lived intangible assets $ 8,029 $ (6,504 ) $ 1,525 $ 8,318 $ (6,549 ) $ 1,769 _________________ (1) During the three-month period ended June 30, 2019, the Company adopted the new leasing standard and as a result, favorable tower leases were reclassed to ROU assets on the consolidated balance sheets. See Note 2. New Accounting Pronouncements and Note 7. Leases for further information. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists primarily of network equipment, leased devices 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 $1.1 billion and $987 million as of June 30, 2019 and 2018 , respectively. The following table presents the components of property, plant and equipment and the related accumulated depreciation: June 30, March 31, (in millions) Land $ 107 $ 246 Network equipment, site costs and related software 25,110 24,967 Buildings and improvements 392 856 Leased devices, non-network internal use software, office equipment and other 12,448 12,627 Construction in progress 2,919 3,044 Less: accumulated depreciation (20,420 ) (20,539 ) Property, plant and equipment, net $ 20,556 $ 21,201 Network equipment, site costs and related software includes switching equipment, cell site towers, site development costs, radio frequency equipment, network software, digital fiber optic cable, transport facilities and transmission-related equipment. Also included within this component are finance lease ROU assets, which primarily consist of prepayments of site rental costs for leases with an immaterial remaining lease obligation. Buildings and improvements principally consist of owned general office facilities, retail stores and leasehold improvements. Non-network internal use software, office equipment, leased devices and other primarily consists of furniture, information technology systems, equipment and vehicles, and leased devices. Construction in progress, which is not depreciated until placed in service, primarily includes materials, transmission and related equipment, labor, engineering, site development costs, interest and other costs relating to the construction and development of our network. Sprint offers a leasing program to its customers 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 return the device, continue leasing the device, or purchase the device. As of June 30, 2019 , substantially all of our device leases were classified as operating leases. Purchases of leased devices are reported as cash outflows for "Capital expenditures - leased devices" in the consolidated statements of cash flows. The devices are then depreciated using the straight-line method to their estimated residual value generally over the term of the lease. The following table presents leased devices and the related accumulated depreciation: June 30, March 31, (in millions) Leased devices $ 10,770 $ 10,972 Less: accumulated depreciation (4,346 ) (4,360 ) Leased devices, net $ 6,424 $ 6,612 During the three-month periods ended June 30, 2019 and 2018 , we had non-cash transfers of returned leased devices from property, plant and equipment to device and accessory inventory at the lower of net book value or their estimated fair value of $236 million and $163 million , respectively. Non-cash accruals included in leased devices totaled $156 million and $221 million as of June 30, 2019 and 2018 , respectively. During the three-month periods ended June 30, 2019 and 2018 , we recorded $225 million and $124 million , respectively, of loss on disposal of property, plant and equipment, net of recoveries. Net losses that resulted from the write-off of leased devices were primarily associated with lease cancellations prior to the scheduled customer lease terms where customers did not return the devices to us. Such losses are included in "Cost of equipment rentals" in our consolidated statements of comprehensive (loss) income . On June 27, 2019, the Company entered into a sale and leaseback agreement for our Overland Park, Kansas campus. The sale closed and the leaseback began on July 9, 2019. As of June 30, 2019, the Company determined that the asset should be classified as held-for-sale and measured at the lower of its carrying amount or fair value less cost to sell resulting in the recognition of a non-cash impairment of approximately $207 million included in "Other, net" within the consolidated statements of comprehensive (loss) income . |
Long-Term Debt, Financing and C
Long-Term Debt, Financing and Capital Lease Obligations | 3 Months Ended |
Jun. 30, 2019 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-Term Debt, Financing and Capital Lease Obligations | Long-Term Debt, Financing and Finance Lease Obligations Interest Rates Maturities June 30, March 31, (in millions) Notes Senior notes Sprint Corporation 7.13 - 7.88% 2021 - 2026 $ 12,000 $ 12,000 Sprint Communications, Inc. 6.00 - 11.50% 2020 - 2022 4,780 4,780 Sprint Capital Corporation 6.88 - 8.75% 2028 - 2032 4,475 6,204 Senior secured notes Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC 3.36 - 5.15% 2021 - 2028 5,906 6,125 Guaranteed notes Sprint Communications, Inc. 7.00% 2020 1,000 1,000 Credit facilities Secured revolving bank credit facility 4.69% 2021 — — Secured term loans 4.94 - 5.44% 2024 5,900 5,915 PRWireless term loan 7.58% 2020 200 198 Export Development Canada (EDC) 4.65% 2019 300 300 Secured equipment credit facilities 3.53 - 4.26% 2021 - 2022 556 661 Accounts receivable facility 3.58 - 3.78% 2021 2,837 2,607 Financing obligations, finance lease and other obligations 2.35 - 12.00% 2019 - 2026 407 538 Net premiums and debt financing costs (399 ) (405 ) 37,962 39,923 Less current portion (2,889 ) (4,557 ) Long-term debt, financing and finance lease obligations $ 35,073 $ 35,366 As of June 30, 2019 , Sprint Corporation, had $12.0 billion in aggregate principal amount of senior notes outstanding. In addition, as of June 30, 2019 , the outstanding principal amount of the senior notes issued by Sprint Communications and Sprint Capital Corporation, the guaranteed notes issued by Sprint Communications, Sprint Communications' secured term loans and secured revolving bank credit facility, the EDC agreement, the secured equipment credit facilities, the Receivables Facility, and certain other obligations collectively totaled $20.2 billion in principal amount of our long-term debt. Sprint Corporation fully and unconditionally guaranteed such indebtedness, which was issued by 100% owned subsidiaries. Although certain financing agreements restrict the ability of Sprint Communications and its subsidiaries to distribute cash to Sprint Corporation, the ability of the subsidiaries to distribute cash to their respective parents, including to Sprint Communications, generally is not restricted. Cash interest payments, net of amounts capitalized of $17 million and $15 million , totaled $542 million and $602 million during the three-month periods ended June 30, 2019 and 2018 , respectively. Notes As of June 30, 2019 , our outstanding notes consisted of senior notes and guaranteed notes, all of which are unsecured, as well as senior secured notes associated with our spectrum financing transactions. Cash interest on all of the notes is payable semi-annually in arrears with the exception of the spectrum financing senior secured notes, which is payable quarterly. As of June 30, 2019 , $28.2 billion aggregate principal amount of the notes was redeemable at the Company's discretion at the then-applicable redemption prices plus accrued interest. As of June 30, 2019 , $23.7 billion aggregate principal amount of our senior notes, senior secured notes, and guaranteed notes provided holders with the right to require us to repurchase the notes if a change of control triggering event (as defined in the applicable indentures and supplemental indentures) occurs. In May 2018, we successfully completed consent solicitations with respect to certain series of Sprint Corporation, Sprint Communications, and Sprint Capital Corporation senior notes. As a result of the Sprint Corporation and Sprint Communications consent solicitations, the proposed merger transaction with T-Mobile , if consummated, will not constitute a change of control as defined in the applicable indentures governing the notes. In May 2019, Sprint Capital Corporation retired $1.7 billion aggregate principal amount upon maturity of its outstanding 6.900% Senior Notes. Spectrum Financings In October 2016, certain subsidiaries of Sprint Communications, which were not "Restricted Subsidiaries" under Sprint Capital Corporation's indentures, transferred certain directly held and third-party leased spectrum licenses (collectively, Spectrum Portfolio) to wholly-owned bankruptcy-remote special purpose entities (collectively, Spectrum Financing SPEs). The Spectrum Portfolio, which represented approximately 14% of Sprint's total spectrum holdings on a MHz-pops basis, was used as collateral to raise an initial $3.5 billion in senior secured notes (2016 Spectrum-Backed Notes) bearing interest at 3.36% per annum under a $7.0 billion securitization program. The 2016 Spectrum-Backed Notes are repayable over a five -year term, with interest-only payments over the first four quarters and amortizing quarterly principal payments thereafter commencing December 2017 through September 2021. During the three-month period ended June 30, 2019 , we made scheduled principal repayments of $219 million , resulting in a total principal amount outstanding related to the 2016 Spectrum-Backed Notes of $2.0 billion as of June 30, 2019 , of which $875 million was classified as "Current portion of long-term debt, financing and finance lease obligations" in the consolidated balance sheets. In March 2018, we amended the transaction documents governing the securitization program to allow for the issuance of more than $7.0 billion of notes outstanding pursuant to the securitization program subject to certain conditions, which, among other things, may require the contribution of additional spectrum. Also in March 2018, we issued approximately $3.9 billion in aggregate principal amount of senior secured notes under the existing $7.0 billion securitization program, consisting of two series of senior secured notes. The first series of notes totaled $2.1 billion in aggregate principal amount, bears interest at 4.738% per annum, have quarterly interest-only payments until June 2021, and amortizing quarterly principal amounts thereafter commencing in June 2021 through March 2025. The second series of notes totaled approximately $1.8 billion in aggregate principal amount, bears interest at 5.152% per annum, have quarterly interest-only payments until June 2023, and amortizing quarterly principal amounts thereafter commencing in June 2023 through March 2028. The Spectrum Portfolio, which also serves as collateral for the 2016 Spectrum-Backed Notes, remains substantially identical to the original portfolio from October 2016. Simultaneously with the October 2016 offering, Sprint Communications entered into a long-term lease with the Spectrum Financing SPEs for the ongoing use of the Spectrum Portfolio. The spectrum lease is accounted for as an executory contract. Sprint Communications is required to make monthly lease payments to the Spectrum Financing SPEs at a market rate. The lease payments, which are guaranteed by Sprint Corporation and certain subsidiaries (none of which are "Restricted Subsidiaries" under Sprint Capital Corporation's indentures) of Sprint Communications (and are secured together with the obligations under another transaction document by substantially all of the assets of such entities on a pari passu basis up to an aggregate cap of $3.5 billion with the grant of security under the secured term loan and revolving bank credit facility and EDC (as defined below) agreement), are sufficient to service all outstanding series of the senior secured notes and the lease also constitutes collateral for the senior secured notes. Because the Spectrum Financing SPEs are wholly-owned Sprint subsidiaries, these entities are consolidated and all intercompany activity has been eliminated. Each Spectrum Financing SPE is a separate legal entity with its own separate creditors who will be entitled, prior to and upon the liquidation of the Spectrum Financing SPEs, to be satisfied out of the Spectrum Financing SPEs' assets prior to any assets of the Spectrum Financing SPEs becoming available to Sprint. Accordingly, the assets of the Spectrum Financing SPEs are not available to satisfy the debts and other obligations owed to other creditors of Sprint until the obligations of the Spectrum Financing SPEs under the spectrum-backed senior secured notes are paid in full. In June 2018, we obtained consent under the spectrum-backed senior secured notes indenture to amend the indenture such that the proposed merger transaction with T-Mobile, if consummated, will not constitute a change of control as defined in the indenture. Credit Facilities Secured Term Loan and Revolving Bank Credit Facility On February 3, 2017, we entered into a $6.0 billion credit agreement, consisting of a $4.0 billion , seven -year secured term loan (Initial Term Loan) that matures in February 2024 and a $2.0 billion secured revolving bank credit facility that expires in February 2021. As of June 30, 2019 , $120 million in letters of credit were outstanding under the secured revolving bank credit facility, including the letter of credit required by the Report and Order. See Note 12. Commitments and Contingencies for additional information. As a result of the outstanding letters of credit, which directly reduce the availability of borrowings, the Company had approximately $1.9 billion of borrowing capacity available under the secured revolving bank credit facility as of June 30, 2019 . The bank credit facility requires a ratio (Leverage Ratio) of total indebtedness to trailing four quarters earnings before interest, taxes, depreciation and amortization and other non-recurring items, as defined by the bank credit facility (adjusted EBITDA), not to exceed 3.75 to 1.0 through the fiscal quarter ending December 31, 2019. The Leverage Ratio must not exceed 3.5 to 1.0 for the fiscal quarter ended March 31, 2020 and each fiscal quarter ending thereafter through expiration of the facility. The Initial Term Loan has an interest rate equal to LIBOR plus 250 basis points and the secured revolving bank credit facility has an interest rate equal to LIBOR plus a spread that varies depending on the Leverage Ratio. During the three-month period ended June 30, 2019 , we made principal repayments on the Initial Term Loan totaling $10 million resulting in a total principal amount outstanding for the Initial Term Loan of $3.9 billion as of June 30, 2019 . In consideration of the Initial Term Loan, we entered into a five -year fixed-for-floating interest rate swap on a $2.0 billion notional amount that has been designated as a cash flow hedge. The effective portion of changes in fair value are recorded in "Other comprehensive (loss) income " in the consolidated statements of comprehensive (loss) income and the ineffective portion, if any, is recorded as "Interest expense" in current period earnings in the consolidated statements of comprehensive (loss) income . The fair value of the interest rate swap was a liability of $15 million and an asset of $13 million as of June 30, 2019 and March 31, 2019 , respectively, which was recorded in "Other liabilities" and "Other assets," respectively, in the consolidated balance sheets. On November 26, 2018, the credit agreement was amended to, among other things, authorize incremental secured term loans (Incremental Term Loans) totaling $2.0 billion , of which $1.1 billion was borrowed. On February 26, 2019, the remaining $900 million was borrowed. The Incremental Term Loans mature in February 2024, have interest rates equal to LIBOR plus 300 basis points and increased the total credit facility to $8.0 billion . PRWireless Term Loan During the three-month period ended December 31, 2017, Sprint and PRWireless PR, Inc. completed a transaction to combine their operations in Puerto Rico and the U.S. Virgin Islands into a new entity. Prior to the formation of the new entity, PRWireless PR, Inc. had incurred debt under a secured term loan, which became debt of the new entity upon the transaction close. The secured term loan bears interest at 5.25% plus LIBOR and expires in June 2020. Any amounts repaid early may not be drawn again. During the three-month period ended June 30, 2019 , the joint venture borrowed $2 million and made principal repayments of less than $1 million resulting in a total principal amount outstanding of $200 million as of June 30, 2019 . Sprint has provided an unsecured guarantee of repayment of the secured term loan obligations. The secured portion of the facility is limited to assets of the joint venture as the borrower. EDC Agreement As of June 30, 2019 , the EDC agreement provided for security and covenant terms similar to our secured term loan and revolving bank credit facility. However, under the terms of the EDC agreement, repayments of outstanding amounts cannot be redrawn. As of June 30, 2019 , the total principal amount outstanding under the EDC facility was $300 million . Secured Equipment Credit Facilities Finnvera plc (Finnvera) The Finnvera secured equipment credit facility provided for the ability to finance network equipment-related purchases from Nokia Solutions and Networks US LLC, USA. During the three-month period ended June 30, 2019 , we made principal repayments totaling $13 million on the facility resulting in a total principal amount of $79 million outstanding as of June 30, 2019 . K-sure The K-sure secured equipment credit facility provides for the ability to finance network equipment-related purchases from Samsung Telecommunications America, LLC. In October 2018, we amended the secured equipment credit facility to extend the borrowing availability through September 2019. Such borrowings are contingent upon the amount and timing of network equipment-related purchases made by Sprint. During the three-month period ended June 30, 2019 , we made principal repayments totaling $72 million on the facility resulting in a total principal amount of $378 million outstanding as of June 30, 2019 . Delcredere | Ducroire (D/D) The D/D secured equipment credit facility provided for the ability to finance network equipment-related purchases from Alcatel-Lucent USA Inc. During the three-month period ended June 30, 2019 , we made principal repayments totaling $20 million on the facility resulting in a total principal amount of $99 million outstanding as of June 30, 2019 . Borrowings under the Finnvera, K-sure and D/D secured equipment credit facilities are each secured by liens on the respective network equipment purchased. In addition, repayments of outstanding amounts borrowed under the secured equipment credit facilities cannot be redrawn. Each of these facilities is fully and unconditionally guaranteed by both Sprint Communications and Sprint Corporation. The secured equipment credit facilities have certain key covenants similar to those in our secured term loan and revolving bank credit facility. Accounts Receivable Facility Transaction Overview Our Receivables Facility provides us the opportunity to sell certain wireless service receivables, installment receivables, and future amounts due from customers who lease certain devices from us to unaffiliated third parties (the Purchasers). The maximum funding limit under the Receivables Facility is $4.5 billion . While we have the right to decide how much cash to receive from each sale, the maximum amount of cash available to us varies based on a number of factors and, as of June 30, 2019 , represents approximately 49% of the total amount of the eligible receivables sold to the Purchasers. As of June 30, 2019 , the total amount outstanding under our Receivables Facility was $2.8 billion and the total amount available to be drawn was $649 million . However, subsequent to June 30, 2019 , Sprint repaid $2.3 billion under the Receivables Facility reducing amounts outstanding to $537 million . In February 2017, the Receivables Facility was amended and Sprint regained effective control over the receivables transferred to the Purchasers by obtaining the right, under certain circumstances, to repurchase them. Subsequent to the February 2017 amendment, all proceeds received from the Purchasers in exchange for the transfer of our wireless service and installment receivables are recorded as borrowings. Repayments and borrowings under the Receivables Facility are reported as financing activities in the consolidated statements of cash flows. All cash collected on repurchased receivables subsequent to the February 2017 amendment was recognized in investing activities in the consolidated statements of cash flows. In June 2018, the Receivables Facility was amended to, among other things, extend the maturity date to June 2020, increase the maximum funding limit by $200 million , reduce financing costs, add month-to-month lease receivables as eligible receivables for leases that extend past their original lease term, and change the Purchasers' commitment allocations. The Purchasers' commitments are allocated 22% to wireless service receivables and 78% to a combined pool of installment receivables, future lease receivables and month-to-month lease receivables. In June 2019, the Receivables Facility was further amended to extend the maturity date to February 2021. During the three-month period ended June 30, 2019 , we drew $1.0 billion and repaid $800 million to the Purchasers. Prior to the February 2017 amendment, wireless service and installment receivables sold to the Purchasers were treated as a sale of financial assets and we derecognized these receivables, as well as the related allowances, and recognized the net proceeds received in cash provided by operating activities in the consolidated statements of cash flows. The total proceeds from the sale of these receivables were comprised of a combination of cash, which was recognized as operating activities within our consolidated statements of cash flows, and a deferred purchase price (DPP). The DPP was realized by us upon either the ultimate collection of the underlying receivables sold to the Purchasers or upon Sprint's election to receive additional advances in cash from the Purchasers subject to the total availability under the Receivables Facility. All cash collections on the DPP were recognized as investing activities in the consolidated statements of cash flows. The fees associated with these sales were recognized in "Selling, general and administrative" in the consolidated statements of comprehensive (loss) income through the date of the February 2017 amendment. Subsequent to the February 2017 amendment, the sale of wireless service and installment receivables are reported as financings, which is consistent with our historical treatment for the sale of future lease receivables, and the associated fees are recognized as "Interest expense" in the consolidated statements of comprehensive (loss) income . Transaction Structure Sprint contributes certain wireless service, installment and future lease receivables, as well as the associated leased devices, to Sprint's wholly-owned consolidated bankruptcy-remote special purpose entities (SPEs). At Sprint's direction, the SPEs have sold, and will continue to sell, wireless service, installment and future lease receivables to the Purchasers or to a bank agent on behalf of the Purchasers. Leased devices will remain with the SPEs, once sales are initiated, and continue to be depreciated over their estimated useful life. As of June 30, 2019 , wireless service, installment and lease receivables contributed to the SPEs and included in "Accounts and notes receivable, net" in the consolidated balance sheets were $2.6 billion and the long-term portion of installment receivables included in "Other assets" in the consolidated balance sheets was $248 million . As of June 30, 2019 , the net book value of devices contributed to the SPEs was $6.4 billion . Each SPE is a separate legal entity with its own separate creditors who will be entitled, prior to and upon the liquidation of the SPE, to be satisfied out of the SPE’s assets prior to any assets in the SPE becoming available to Sprint. Accordingly, the assets of the SPE are not available to pay creditors of Sprint or any of its affiliates (other than any other SPE), although collections from these receivables in excess of amounts required to repay the advances, yield and fees of the Purchasers and other creditors of the SPEs may be remitted to Sprint during and after the term of the Receivables Facility. Sales of eligible receivables by the SPEs generally occur daily and are settled on a monthly basis. Sprint pays a fee for the drawn and undrawn portions of the Receivables Facility. A subsidiary of Sprint services the receivables in exchange for a monthly servicing fee, and Sprint guarantees the performance of the servicing obligations under the Receivables Facility. Variable Interest Entity Sprint determined that certain of the Purchasers, which are multi-seller asset-backed commercial paper conduits (Conduits) are considered variable interest entities because they lack sufficient equity to finance their activities. Sprint's interest in the receivables purchased by the Conduits is not considered a variable interest because Sprint's interest is in assets that represent less than 50% of the total activity of the Conduits. Financing Obligations, Finance Lease and Other Obligations Tower Financing During 2008, we sold and subsequently leased back approximately 3,000 cell sites, of which approximately 1,750 remained as of March 31, 2019. Terms extend through 2021, with renewal options for an additional 20 years. These cell sites were previously reported as part of "Property, plant and equipment, net" in our consolidated balance sheets due to our continued involvement with the property sold, and the transaction was accounted for as a financing. The financing obligation as of March 31, 2019 was $109 million . Upon adoption of the new leasing standard, we were required to reassess the previously failed sale-leasebacks and determine whether the transfer of the assets to the tower operator under the arrangement met the transfer of control criteria in the revenue standard and whether a sale should be recognized. We concluded that a sale had occurred and therefore, we derecognized our existing long-term financial obligation and the tower-related property and equipment associated with these sites as part of the cumulative effect adjustment on April 1, 2019. Refer to Note 7. Leases for additional information. Finance Lease and Other Obligations In May 2016, Sprint closed on a transaction with Shentel to acquire one of our wholesale partners, NTELOS Holdings Corporation (nTelos). The total consideration for this transaction included $181 million , on a net present value basis, of notes payable to Shentel. Sprint will satisfy its obligations under the notes payable over an expected term of five to six years, of which the remaining obligation is $141 million as of June 30, 2019 . The remainder of our finance lease and other obligations of $25 million and $241 million as of June 30, 2019 , respectively are primarily for the use of wireless network equipment. Covenants Certain indentures and other agreements require compliance with various covenants, including covenants that limit the ability of the Company and its subsidiaries to sell all or substantially all of its assets, limit the ability of the Company and its subsidiaries to incur indebtedness and liens, and require that we maintain certain financial ratios, each as defined by the terms of the indentures, supplemental indentures and financing arrangements. As of June 30, 2019 , the Company was in compliance with all restrictive and financial covenants associated with its borrowings. A default under any of our borrowings could trigger defaults under certain of our other debt obligations, which in turn could result in the maturities being accelerated. Under our secured revolving bank credit facility, we are currently restricted from paying cash dividends because our ratio of total indebtedness to adjusted EBITDA (each as defined in the applicable agreements) exceeds 2.5 to 1.0 . |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenues from Contracts with Customers The Company adopted Revenue from Contracts with Customers (Topic 606) beginning on April 1, 2018 using the modified retrospective method. Upon adoption, the Company applied the standard only to contracts that were not completed, referred to as open contracts. We operate two reportable segments: Wireless and Wireline. Disaggregation of Revenue We disaggregate revenue based upon differences in accounting for underlying performance obligations. Accounting differences related to our performance obligations are driven by various factors, including the type of product offering provided, the type of customer, and the expected timing of payment for goods and services. The following table presents disaggregated reported revenue by category: Three Months Ended June 30, 2019 2018 (in millions) Service revenue Postpaid $ 4,199 $ 4,188 Prepaid 843 982 Wholesale, affiliate and other 285 294 Wireline 236 276 Total service revenue 5,563 5,740 Equipment sales 1,220 1,173 Equipment rentals 1,359 1,212 Total revenue $ 8,142 $ 8,125 Contract Assets and Liabilities The relationship between the satisfaction of our performance obligations and collection of payments from the customer will vary depending upon the type of contract. In Wireless subsidized contracts, payment related to equipment performance obligations is partially collected upfront and partially collected over the related service period resulting in a contract asset position at contract inception. In traditional Wireless installment billing contracts, the full amount of consideration related to equipment performance obligations is recognized as a receivable at contract inception and collected ratably in accordance with payment terms attached to the installment note. Traditional Wireless installment billing contracts are subject to an accounting contract duration of one month and therefore, do not result in the recognition of a contract position. In Wireless installment billing contracts that include a substantive termination penalty such as when customers receive a monthly service credit to offset monthly payments against applicable installment billing notes, the amount of the total transaction price that is allocated to equipment performance obligations is less than the amount recognized as a noncontingent receivable from the customer at contract inception resulting in a contract liability position. In Wireless leasing contracts, the amount of cash received at inception is generally larger than the amount of upfront revenue allocated and recognized as rental income. This results in a contract liability at contract inception, which is often partially composed of deferred rental income. In prepaid contracts initiated in our indirect channel, customers may purchase a device at a discount. The Company will often reimburse the dealer some portion of this discount, which is expected to be recovered through future sales of monthly service. This results in a contract asset position at contract inception. In circumstances where prepaid customers prepay account balances, which can be used to purchase future Wireless goods or services, those amounts are recognized as a contract liability until the point where prepayments are redeemed for goods or services and the related performance obligations have been satisfied. In Wireline contracts, we record a contract position, either a contract asset or a contract liability depending upon the specific facts and circumstances of the contract, including to reflect differences between the amount of revenue allocated to equipment delivered upfront and the contractually stated price for that equipment, or if we collect nonrefundable upfront payments from customers related to installation and activation. We capitalize incremental commissions directly related to the acquisition or renewal of customer contracts, to the extent that the costs are expected to be recovered. Capitalized costs are amortized on a straight-line basis over the shorter of the expected customer life or the expected benefit related directly to those costs. The following table presents the opening and closing balances of our contract assets, contract liabilities, and receivables balances, as well as capitalized costs associated with contracts with customers: June 30, March 31, 2019 2019 (in millions) Contract assets and liabilities Contract assets (1) $ 997 $ 928 Billed trade receivables 2,659 2,690 Unbilled trade receivables 1,031 945 Contract liabilities 995 1,009 Other related assets Capitalized costs to acquire a customer contract: Sales commissions - beginning balance $ 1,559 Sales commissions - additions 289 Amortization of capitalized sales commissions (217 ) Net costs to acquire a customer contract $ 1,631 _________________ (1) The fluctuation correlates directly to the execution of new customer contracts and invoicing and collections from customers in the normal course of business. The following table presents revenue recognized during the three-month periods ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 (in millions) Amounts included in the beginning of period contract liability balance $ 886 $ 867 Remaining Performance Obligations The aggregate amount of total transaction price allocated to performance obligations in contracts existing as of the balance sheet date, which are wholly or partially unsatisfied as of the end of the reporting period, and the expected time frame for satisfaction of those wholly or partially unsatisfied performance obligations, are as follows: (in millions) Remainder of fiscal year ending March 31, 2020 $ 6,383 Fiscal year ending March 31, 2021 2,224 Thereafter 21 Total $ 8,628 The amounts disclosed above relate to the allocation of revenue amongst performance obligations in contracts existing as of the balance sheet date, and not to any differences between the timing of revenue recognition and recognition of receivables or cash collection. As a result, those amounts are not necessarily reflected as a contract liability as of the balance sheet date. Included in the above amounts are $2.3 billion for the year ending March 31, 2020 and $687 million for the year ending March 31, 2021, respectively, related to the allocation of the total transaction price to future operating lease revenues. Additionally, amounts disclosed above include estimates of variable consideration, where applicable. Our Wireless contracts generally do not involve variable consideration, other than expected adjustments to the total transaction price related to future price concessions and product returns and service refunds, all of which we are able to reasonably estimate at contract inception based upon historical experience with similar contracts and similar types of customers. In accordance with the practical expedients: • the amounts disclosed above do not include revenue allocated to wholly or partially unsatisfied performance obligations for which the accounting contract duration at contract inception is less than 12 months, which includes expected revenues from traditional installment billing contracts with a one-month accounting contract duration; • the amounts disclosed above do not include variable consideration resulting from monthly customer charges intended to partially recover taxes imposed on the Company, including fees related to the Universal Service Fund. Such fees are based on the customer's estimated monthly voice usage and are therefore, allocated to corresponding distinct months of Wireless services; and • the amounts disclosed above do not include variable consideration resulting from monthly charges to Wireless wholesale customers. Such fees are based on the customer's monthly usage of capacity and are therefore, allocated to corresponding distinct months of Wireless services. Wireline contracts are generally not subject to significant amounts of variable consideration, other than charges intended to partially recover taxes imposed on the Company, including fees related to the Universal Service Fund. Such fees are based on the customer's estimated monthly usage and are therefore, allocated to corresponding distinct months of Wireline services and recognized as revenue when invoiced in accordance with the practical expedient. Our Wireline contracts do typically provide the customer with monthly options to purchase goods or services at prices commensurate with the standalone selling prices for those goods or services as determined at contract inception. |
Severance and Exit Costs
Severance and Exit Costs | 3 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Severance and Exit Costs | Severance and Exit Costs Severance and exit costs consist of severance costs associated with reductions in our work force, and access exit costs related to payments that will continue to be made under our backhaul access contracts for which we will no longer receive any economic benefit. The following provides the activity in the severance and exit costs liability included in "Accounts payable," "Accrued expenses and other current liabilities" and "Other liabilities" within the consolidated balance sheets. The net expenses are included in "Other, net" within the consolidated statements of comprehensive (loss) income : March 31, Net Expense Cash Payments and Other June 30, (in millions) Severance costs $ 6 $ — $ (3 ) $ 3 Access exit costs 36 27 (1) (19 ) 44 $ 42 $ 27 $ (22 ) $ 47 _________________ (1) For the three-month period ended June 30, 2019 , we recognized costs of $27 million (Wireless only) as "Severance and exit costs." |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The differences that caused our effective income tax rates to differ from the 21% U.S. federal statutory rate for income taxes were as follows: Three Months Ended 2019 2018 (in millions) Income tax benefit (expense) at the federal statutory rate $ 29 $ (46 ) Effect of: State income taxes, net of federal income tax effect 5 (15 ) State law changes, net of federal income tax effect — 24 Increase deferred tax liability for organizational restructuring — (13 ) Credit for increasing research activities 4 — Change in federal and state valuation allowance (14 ) 6 Other, net (2 ) (3 ) Income tax benefit (expense) $ 22 $ (47 ) Effective income tax rate 16.2 % 21.4 % Income tax benefit of $22 million for the three-month period ended June 30, 2019 represented a consolidated effective tax rate of 16% . During the period, we recognized a $14 million tax expense for federal and state valuation allowance. This expense partially offsets the tax benefit recognized from the pre-tax book loss at the U.S. federal statutory tax rate. Income tax expense of $47 million for the three-month period ended June 30, 2018 represented a consolidated effective tax rate of 21% . During the period, we recognized a $24 million tax benefit for the impact of state law changes enacted during the period, partially offset by a $13 million tax expense attributable to organizational restructuring. These adjustments were primarily driven by the change in carrying value of our deferred tax assets and liabilities on temporary differences. As of June 30, 2019 and March 31, 2019 , we maintained unrecognized tax benefits of $244 million and $242 million , respectively. Cash paid for income taxes, net was $27 million and $39 million for the three-month periods ended June 30, 2019 and 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation, Claims and Assessments On April 22, 2019, a purported stockholder of the Company filed a putative class action complaint in the Southern District of New York against the Company and two of our executive officers, captioned Meneses v. Sprint Corporation, et al. On June 5, 2019, a second purported stockholder of the Company filed a putative class action complaint in the Southern District of New York against the Company and two of our executive officers, captioned Soloman v. Sprint Corporation, et al. The complaints in the Meneses and Solomon actions allege that the Company and the two executive officers violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 by issuing untrue statements related to certain postpaid net subscriber additions. The complaints seek damages and reasonable attorneys fees. The Company believes the lawsuits are without merit. On June 24, 2019, the Meneses action was voluntarily dismissed. On April 19, 2012, the New York Attorney General filed a complaint alleging that Sprint Communications had fraudulently failed to collect and pay sales taxes on the sale of wireless telephone services since July 2005. Although Sprint has settled the dispute with the State of New York, eight related stockholder derivative suits have been filed against Sprint Communications and certain of its current and former officers and directors. Each suit alleges generally that the individual defendants breached their fiduciary duties to Sprint Communications and its stockholders by allegedly permitting, and failing to disclose, the actions alleged in the suit filed by the New York Attorney General. One suit, filed by the Louisiana Municipal Police Employees Retirement System, was dismissed by a federal court. Two suits were filed in state court in Johnson County, Kansas and one of those suits was dismissed as premature; and five suits are pending in federal court in Kansas. The remaining Kansas suits have been stayed pending resolution of the Attorney General's suit. We do not expect the resolution of these matters to have a material adverse effect on our financial position or results of operations. Sprint is currently involved in numerous court actions alleging that Sprint is infringing various patents. Most of these cases effectively seek only monetary damages. A small number of these cases are brought by companies that sell products and seek injunctive relief as well. These cases have progressed to various degrees and a small number may go to trial if they are not otherwise resolved. Adverse resolution of these cases could require us to pay significant damages, cease certain activities, or cease selling the relevant products and services. In many circumstances, we would be indemnified for monetary losses that we incur with respect to the actions of our suppliers or service providers. We do not expect the resolution of these cases to have a material adverse effect on our financial position or results of operations. Various other suits, inquiries, proceedings and claims, either asserted or unasserted, including purported class actions typical for a large business enterprise and intellectual property matters, are possible or pending against us or our subsidiaries. If our interpretation of certain laws or regulations, including those related to various federal or state matters such as sales, use or property taxes, or other charges were found to be mistaken, it could result in payments by us. While it is not possible to determine the ultimate disposition of each of these proceedings and whether they will be resolved consistent with our beliefs, we expect that the outcome of such proceedings, individually or in the aggregate, will not have a material adverse effect on our financial position or results of operations. Spectrum Reconfiguration Obligations In 2004, the FCC adopted a Report and Order that included new rules regarding interference in the 800 MHz band and a comprehensive plan to reconfigure the 800 MHz band. The Report and Order provides for the exchange of a portion of our 800 MHz FCC spectrum licenses, and requires us to fund the cost incurred by public safety systems and other incumbent licensees to reconfigure the 800 MHz spectrum band. Also, in exchange, we received licenses for 10 MHz of nationwide spectrum in the 1.9 GHz band. The minimum cash obligation was $2.8 billion under the Report and Order. We are, however, obligated to continue to pay the full amount of the costs relating to the reconfiguration plan, although those costs have exceeded $2.8 billion . As required under the terms of the Report and Order, a letter of credit has been secured to provide assurance that funds will be available to pay the relocation costs of the incumbent users of the 800 MHz spectrum. The letter of credit was initially $2.5 billion , but has been reduced during the course of the proceeding to $78 million as of June 30, 2019 . Since the inception of the program, we have incurred payments of approximately $3.6 billion directly attributable to our performance under the Report and Order, including $2 million during the three-month period ended June 30, 2019 . When incurred, substantially all costs are accounted for as additions to FCC licenses with the remainder as property, plant and equipment. Based on our expenses to date and on third party administrator's audits, we have exceeded the $2.8 billion minimum cash obligation required by the FCC. On October 12, 2017, the FCC released a Declaratory Ruling that we have met the minimum cash obligation under the Report and Order and concluded that Sprint will not be required to make any payments to the U.S. Treasury. We have recently reported to the FCC that virtually all of the public safety reconfiguration is complete across the country, including along the southern border markets, which had been delayed due to coordination efforts with Mexico. Accordingly, Sprint has received its full allotment of replacement spectrum in the 800 MHz band and Sprint faces no impediments in deploying 3G CDMA and 4G LTE on this spectrum in combination with its spectrum in the 1.9 GHz and 2.5 GHz bands. A small number of non-public safety operators must still complete certain retuning work and complete administrative tasks in states along the southern border, however, these remaining activities do not impact Sprint's operations. |
Per Share Data
Per Share Data | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Per Share Data | Per Share Data The computation of basic and diluted net (loss) income per common share attributable to Sprint was as follows: Three Months Ended June 30, 2019 2018 (in millions, except per share amounts) Net (loss) income $ (114 ) $ 173 Less: Net loss attributable to noncontrolling interests 3 3 Net (loss) income attributable to Sprint $ (111 ) $ 176 Basic weighted average common shares outstanding 4,087 4,010 Effect of dilutive securities: Options and restricted stock units — 47 Warrants (1) — 4 Diluted weighted average common shares outstanding 4,087 4,061 Basic net (loss) income per common share attributable to Sprint $ (0.03 ) $ 0.04 Diluted net (loss) income per common share attributable to Sprint $ (0.03 ) $ 0.04 Potentially dilutive securities: Outstanding stock options (2) 90 9 _________________ (1) For the three-month period ended June 30, 2018 , dilutive securities attributable to warrants include 2 million shares issuable under the warrant held by SoftBank. At the close of the merger with SoftBank, the warrant was issued at $5.25 per share. On July 10, 2018, SoftBank exercised its warrant in full to purchase 55 million shares of Sprint common stock for $287 million . (2) Potentially dilutive securities were not included in the computation of diluted net (loss) income per common share if to do so would have been antidilutive. |
Segments
Segments | 3 Months Ended |
Jun. 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, Consolidated (in millions) Three Months Ended June 30, 2019 Net operating revenues $ 7,901 $ 236 $ 5 $ 8,142 Inter-segment revenues (1) — 71 (71 ) — Total segment operating expenses (2) (4,864 ) (307 ) 71 (5,100 ) Segment earnings $ 3,037 $ — $ 5 3,042 Less: Depreciation - network and other (1,120 ) Depreciation - equipment rentals (1,029 ) Amortization (118 ) Merger costs (2) (83 ) Other, net (3) (237 ) Operating income 455 Interest expense (619 ) Other income, net 28 Loss before income taxes $ (136 ) Statement of Operations Information Wireless Wireline Corporate, Consolidated (in millions) Three Months Ended June 30, 2018 Net operating revenues $ 7,845 $ 276 $ 4 $ 8,125 Inter-segment revenues (1) — 62 (62 ) — Total segment operating expenses (2) (4,527 ) (380 ) 62 (4,845 ) Segment earnings (loss) $ 3,318 $ (42 ) $ 4 3,280 Less: Depreciation - network and other (1,023 ) Depreciation - equipment rentals (1,136 ) Amortization (171 ) Merger costs (2) (93 ) Other, net (3) (42 ) Operating income 815 Interest expense (637 ) Other income, net 42 Income before income taxes $ 220 Other Information Wireless Wireline Corporate and Consolidated (in millions) Capital expenditures for the three months ended June 30, 2019 $ 2,543 $ 28 $ 134 $ 2,705 Capital expenditures for the three months ended June 30, 2018 $ 2,836 $ 51 $ 62 $ 2,949 _________________ (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-month periods ended June 30, 2019 and 2018 include $83 million and $93 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-month period ended June 30, 2019 includes $210 million of asset impairment charges primarily related to the sale and leaseback of our Overland Park, Kansas campus and $27 million of severance and exit costs due to access termination charges. Other, net for the three-month period ended June 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 and $8 million of severance and exit costs primarily due to access termination charges. Operating Revenues by Service and Products Wireless Wireline Corporate, Other and Eliminations (1) Consolidated (in millions) Three Months Ended June 30, 2019 Service revenue $ 5,042 $ 289 $ (71 ) $ 5,260 Wireless equipment sales 1,220 — — 1,220 Wireless equipment rentals 1,359 — — 1,359 Other 280 18 5 303 Total net operating revenues $ 7,901 $ 307 $ (66 ) $ 8,142 Operating Revenues by Service and Products Wireless Wireline Corporate, Other and Eliminations (1) Consolidated (in millions) Three Months Ended June 30, 2018 Service revenue $ 5,170 $ 314 $ (62 ) $ 5,422 Wireless equipment sales 1,173 — — 1,173 Wireless equipment rentals 1,212 — — 1,212 Other 290 24 4 318 Total net operating revenues $ 7,845 $ 338 $ (58 ) $ 8,125 _______________ (1) Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related-Party Transactions In addition to agreements arising out of or relating to the SoftBank Merger, Sprint has entered into various other arrangements with SoftBank, its controlled affiliates (SoftBank Parties) or with third parties to which SoftBank Parties are also parties, including arrangements for international wireless roaming, wireless and wireline call termination, real estate, logistical management, and other services. Brightstar We have arrangements with Brightstar US, Inc. (Brightstar), whereby Brightstar provides supply chain and inventory management services to us in our indirect channels and whereby Sprint may sell new and used devices and new accessories to Brightstar for its own purposes. To facilitate certain of these arrangements, we have extended a $700 million credit line to Brightstar to assist with the purchasing and distribution of devices and accessories. As a result, we shifted our concentration of credit risk away from our indirect channel partners to Brightstar. As Brightstar is a subsidiary of SoftBank, we expect SoftBank will provide the necessary support to ensure that Brightstar will fulfill its obligations to us under these arrangements. However, we have no assurance that SoftBank will provide such support. The supply chain and inventory management arrangement included, among other things, that Brightstar may purchase inventory from the original equipment manufacturers to sell directly to our indirect dealers. As compensation for these services, we remit per unit fees to Brightstar for each device sold to dealers or retailers in our indirect channels. During the three-month periods ended June 30, 2019 and 2018 , we incurred fees under these arrangements totaling $13 million and $17 million , respectively, which are recognized in "Cost of equipment sales" and "Selling, general and administrative" expenses in the consolidated statements of comprehensive (loss) income . Additionally, we have an arrangement with Brightstar whereby they perform certain of our reverse logistics including device buyback, trade-in technology and related services. During the three-month period ended September 30, 2017, we entered into an arrangement with Brightstar whereby accessories previously procured by us and sold to customers in our direct channels are now procured and consigned to us from Brightstar. Amounts billed from the sale of accessory inventory are remitted to Brightstar. In exchange for our efforts to sell accessory inventory owned by Brightstar, we received a fixed fee from Brightstar for each device activated in our direct channels. In August 2018, the arrangement was amended and we received a share of the profits associated with the sale of accessory inventory owned by Brightstar. For the three-month periods ended June 30, 2019 and 2018 , Sprint earned fees under these arrangements of $42 million and $49 million , respectively, which are recognized as other revenue within "Service revenue" in the consolidated statements of comprehensive (loss) income . Amounts included in our consolidated financial statements associated with these supply chain and inventory management arrangements with Brightstar were as follows: Consolidated balance sheets: June 30, March 31, (in millions) Accounts receivable $ 175 $ 187 Accounts payable and accrued expenses and other current liabilities $ 93 $ 109 Three Months Ended Consolidated statements of comprehensive (loss) income: June 30, 2019 2018 (in millions) Equipment sales $ 344 $ 413 Cost of equipment sales $ 361 $ 432 SoftBank Included in “Other liabilities” in the consolidated balance sheets is $108 million payable to a SoftBank affiliate for reimbursement of legal and consulting fees in connection with the proposed merger with T-Mobile paid to third parties on behalf of Sprint. |
Guarantor Financial Information
Guarantor Financial Information | 3 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information On September 11, 2013, Sprint Corporation issued $2.25 billion aggregate principal amount of 7.250% notes due 2021 and $4.25 billion aggregate principal amount of 7.875% notes due 2023 in a private placement transaction with registration rights. On December 12, 2013, Sprint Corporation issued $2.5 billion aggregate principal amount of 7.125% notes due 2024 in a private placement transaction with registration rights. Each of these issuances is fully and unconditionally guaranteed by Sprint Communications (Subsidiary Guarantor), which is a 100% owned subsidiary of Sprint Corporation (Parent/Issuer). In connection with the foregoing, in November 2014, the Company and Sprint Communications completed an offer to exchange the notes for a new issue of substantially identical exchange notes registered under the Securities Act of 1933. We did not receive any proceeds from this exchange offer. In addition, on February 24, 2015, Sprint Corporation issued $1.5 billion aggregate principal amount of 7.625% notes due 2025, and on February 20, 2018, Sprint Corporation issued $1.5 billion aggregate principal amount of 7.625% senior notes due 2026, which are fully and unconditionally guaranteed by Sprint Communications. During the three-month periods ended June 30, 2019 and 2018 , there were non-cash equity distributions from the non-guarantor subsidiaries to Subsidiary Guarantor of approximately $37 million and $1.5 billion , respectively, as a result of organizational restructuring for tax purposes. As of June 30, 2019 , there were $24.0 billion of intercompany notes issued by the Subsidiary Guarantor to the non-guarantor subsidiaries. The notes are subordinated to all unaffiliated third-party obligations of Sprint Corporation and its subsidiaries. Under the Subsidiary Guarantor's secured revolving bank credit facility, the Subsidiary Guarantor is currently restricted from paying cash dividends to the Parent/Issuer or any non-guarantor subsidiary because the ratio of total indebtedness to adjusted EBITDA (each as defined in the applicable agreement) exceeds 2.5 to 1.0 . Sprint has a Receivables Facility providing for the sale of eligible wireless service, installment and certain future lease receivables. In October 2016, Sprint transferred certain directly held and third-party leased spectrum licenses to wholly-owned bankruptcy-remote special purpose entities as part of the spectrum financing transaction. In connection with both the Receivables Facility and the spectrum financing transactions, Sprint formed certain wholly-owned bankruptcy-remote subsidiaries that are included in the non-guarantor subsidiaries' condensed consolidated financial information. Each of these is a separate legal entity with its own separate creditors who will be entitled, prior to and upon its liquidation, to be satisfied out of its assets prior to any assets becoming available to Sprint. See Note 8. Long-Term Debt, Financing and Finance Lease Obligations for additional information . We have accounted for investments in subsidiaries using the equity method. Presented below is the condensed consolidating financial information. CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ — $ 4,469 $ 400 $ — $ 4,869 Accounts and notes receivable, net 233 473 3,558 (706 ) 3,558 Current portion of notes receivable from consolidated affiliates — 424 — (424 ) — Device and accessory inventory — — 726 — 726 Prepaid expenses and other current assets — 17 1,419 — 1,436 Total current assets 233 5,383 6,103 (1,130 ) 10,589 Investments in subsidiaries 25,832 17,396 — (43,228 ) — Property, plant and equipment, net — — 20,556 — 20,556 Costs to acquire a customer contract — — 1,631 — 1,631 Operating lease right-of-use assets — — 7,054 — 7,054 Due from consolidated affiliates 290 4,900 — (5,190 ) — Notes receivable from consolidated affiliates 11,889 23,143 — (35,032 ) — Intangible assets Goodwill — — 4,598 — 4,598 FCC licenses and other — — 41,474 — 41,474 Definite-lived intangible assets, net — — 1,525 — 1,525 Other assets — 40 1,079 — 1,119 Total assets $ 38,244 $ 50,862 $ 84,020 $ (84,580 ) $ 88,546 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ — $ 3,672 $ — $ 3,672 Accrued expenses and other current liabilities 239 348 3,167 (706 ) 3,048 Current operating lease liabilities — — 1,680 — 1,680 Current portion of long-term debt, financing and finance lease obligations — 1,369 1,520 — 2,889 Current portion of notes payable to consolidated affiliates — — 424 (424 ) — Total current liabilities 239 1,717 10,463 (1,130 ) 11,289 Long-term debt, financing and finance lease obligations 11,889 10,636 12,548 — 35,073 Long-term operating lease liabilities — — 5,913 — 5,913 Notes payable to consolidated affiliates — 11,889 23,143 (35,032 ) — Deferred tax liabilities — — 7,563 — 7,563 Other liabilities — 788 1,752 — 2,540 Due to consolidated affiliates — — 5,190 (5,190 ) — Total liabilities 12,128 25,030 66,572 (41,352 ) 62,378 Commitments and contingencies Total stockholders' equity 26,116 25,832 17,396 (43,228 ) 26,116 Noncontrolling interests — — 52 — 52 Total equity 26,116 25,832 17,448 (43,228 ) 26,168 Total liabilities and equity $ 38,244 $ 50,862 $ 84,020 $ (84,580 ) $ 88,546 CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ — $ 6,605 $ 377 $ — $ 6,982 Short-term investments — 67 — — 67 Accounts and notes receivable, net 96 233 3,554 (329 ) 3,554 Current portion of notes receivable from consolidated affiliates — 424 — (424 ) — Device and accessory inventory — — 999 — 999 Prepaid expenses and other current assets — 9 1,280 — 1,289 Total current assets 96 7,338 6,210 (753 ) 12,891 Investments in subsidiaries 25,785 17,363 — (43,148 ) — Property, plant and equipment, net — — 21,201 — 21,201 Costs to acquire a customer contract — — 1,559 — 1,559 Due from consolidated affiliates 288 2,418 — (2,706 ) — Notes receivable from consolidated affiliates 11,883 23,567 — (35,450 ) — Intangible assets Goodwill — — 4,598 — 4,598 FCC licenses and other — — 41,465 — 41,465 Definite-lived intangible assets, net — — 1,769 — 1,769 Other assets — 52 1,066 — 1,118 Total assets $ 38,052 $ 50,738 $ 77,868 $ (82,057 ) $ 84,601 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ — $ 3,961 $ — $ 3,961 Accrued expenses and other current liabilities 97 230 3,599 (329 ) 3,597 Current portion of long-term debt, financing and finance lease obligations — 1,373 3,184 — 4,557 Current portion of notes payable to consolidated affiliates — — 424 (424 ) — Total current liabilities 97 1,603 11,168 (753 ) 12,115 Long-term debt, financing and finance lease obligations 11,883 10,660 12,823 — 35,366 Notes payable to consolidated affiliates — 11,883 23,567 (35,450 ) — Deferred tax liabilities — — 7,556 — 7,556 Other liabilities — 807 2,630 — 3,437 Due to consolidated affiliates — — 2,706 (2,706 ) — Total liabilities 11,980 24,953 60,450 (38,909 ) 58,474 Commitments and contingencies Total stockholders' equity 26,072 25,785 17,363 (43,148 ) 26,072 Noncontrolling interests — — 55 — 55 Total equity 26,072 25,785 17,418 (43,148 ) 26,127 Total liabilities and equity $ 38,052 $ 50,738 $ 77,868 $ (82,057 ) $ 84,601 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME Three Months Ended June 30, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net operating revenues: Service $ — $ — $ 5,563 $ — $ 5,563 Equipment sales — — 1,220 — 1,220 Equipment rentals — — 1,359 — 1,359 — — 8,142 — 8,142 Net operating expenses: Cost of services (exclusive of depreciation and amortization included below) — — 1,710 — 1,710 Cost of equipment sales — — 1,341 — 1,341 Cost of equipment rentals (exclusive of depreciation below) — — 225 — 225 Selling, general and administrative — — 1,907 — 1,907 Depreciation - network and other — — 1,120 — 1,120 Depreciation - equipment rentals — — 1,029 — 1,029 Amortization — — 118 — 118 Other, net — — 237 — 237 — — 7,687 — 7,687 Operating income — — 455 — 455 Other income (expense): Interest income 226 526 141 (863 ) 30 Interest expense (226 ) (550 ) (706 ) 863 (619 ) (Losses) earnings of subsidiaries (111 ) (86 ) — 197 — Other expense, net — (1 ) (1 ) — (2 ) (111 ) (111 ) (566 ) 197 (591 ) (Loss) income before income taxes (111 ) (111 ) (111 ) 197 (136 ) Income tax benefit — — 22 — 22 Net (loss) income (111 ) (111 ) (89 ) 197 (114 ) Less: Net loss attributable to noncontrolling interests — — 3 — 3 Net (loss) income attributable to Sprint Corporation (111 ) (111 ) (86 ) 197 (111 ) Other comprehensive (loss) income (22 ) (22 ) — 22 (22 ) Comprehensive (loss) income $ (133 ) $ (133 ) $ (89 ) $ 219 $ (136 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) Three Months Ended June 30, 2018 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net operating revenues: Service $ — $ — $ 5,740 $ — $ 5,740 Equipment sales — — 1,173 — 1,173 Equipment rentals — — 1,212 — 1,212 — — 8,125 — 8,125 Net operating expenses: Cost of services (exclusive of depreciation and amortization included below) — — 1,677 — 1,677 Cost of equipment sales — — 1,270 — 1,270 Cost of equipment rentals (exclusive of depreciation below) — — 124 — 124 Selling, general and administrative — — 1,867 — 1,867 Depreciation - network and other — — 1,023 — 1,023 Depreciation - equipment rentals — — 1,136 — 1,136 Amortization — — 171 — 171 Other, net — — 42 — 42 — — 7,310 — 7,310 Operating income — — 815 — 815 Other income (expense): Interest income 226 547 2 (733 ) 42 Interest expense (226 ) (571 ) (573 ) 733 (637 ) Earnings (losses) of subsidiaries 176 202 — (378 ) — Other (expense) income, net — (2 ) 2 — — 176 176 (569 ) (378 ) (595 ) Income (loss) before income taxes 176 176 246 (378 ) 220 Income tax expense — — (47 ) — (47 ) Net income (loss) 176 176 199 (378 ) 173 Less: Net loss attributable to noncontrolling interests — — 3 — 3 Net income (loss) attributable to Sprint Corporation 176 176 202 (378 ) 176 Other comprehensive (loss) income (4 ) (4 ) (13 ) 17 (4 ) Comprehensive income (loss) $ 172 $ 172 $ 186 $ (361 ) $ 169 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended June 30, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ (186 ) $ 2,430 $ — $ 2,244 Cash flows from investing activities: Capital expenditures - network and other — — (1,189 ) — (1,189 ) Capital expenditures - leased devices — — (1,516 ) — (1,516 ) Expenditures relating to FCC licenses — — (9 ) — (9 ) Purchases of short-term investments — 67 — — 67 Change in amounts due from/due to consolidated affiliates 17 (2,427 ) — 2,410 — Proceeds from sales of assets and FCC licenses — — 182 — 182 Proceeds from intercompany note advance to consolidated affiliate — 424 — (424 ) — Other, net — 2 (5 ) — (3 ) Net cash provided by (used in) investing activities 17 (1,934 ) (2,537 ) 1,986 (2,468 ) Cash flows from financing activities: Proceeds from debt and financings — — 1,061 — 1,061 Repayments of debt, financing and finance lease obligations — (15 ) (2,904 ) — (2,919 ) Debt financing costs — (2 ) (10 ) — (12 ) Proceeds from issuance of common stock, net (17 ) — — — (17 ) Change in amounts due from/due to consolidated affiliates — — 2,410 (2,410 ) — Repayments of intercompany note advance from parent — — (424 ) 424 — Net cash (used in) provided by financing activities (17 ) (17 ) 133 (1,986 ) (1,887 ) Net (decrease) increase in cash, cash equivalents and restricted cash — (2,137 ) 26 — (2,111 ) Cash, cash equivalents and restricted cash, beginning of period — 6,606 457 — 7,063 Cash, cash equivalents and restricted cash, end of period $ — $ 4,469 $ 483 $ — $ 4,952 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended June 30, 2018 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ (231 ) $ 2,661 $ — $ 2,430 Cash flows from investing activities: Capital expenditures - network and other — — (1,132 ) — (1,132 ) Capital expenditures - leased devices — — (1,817 ) — (1,817 ) Expenditures relating to FCC licenses — — (59 ) — (59 ) Proceeds from sales and maturities of short-term investments — 810 — — 810 Purchases of short-term investments — (2,464 ) — — (2,464 ) Change in amounts due from/due to consolidated affiliates 28 (778 ) — 750 — Proceeds from sales of assets and FCC licenses — — 133 — 133 Proceeds from deferred purchase price from sale of receivables — — 170 — 170 Proceeds from intercompany note advance to consolidated affiliate — 424 — (424 ) — Other, net — — (10 ) — (10 ) Net cash provided by (used in) investing activities 28 (2,008 ) (2,715 ) 326 (4,369 ) Cash flows from financing activities: Proceeds from debt and financings — — 1,370 — 1,370 Repayments of debt, financing and finance lease obligations — (10 ) (1,405 ) — (1,415 ) Debt financing costs (28 ) (9 ) (211 ) — (248 ) Change in amounts due from/due to consolidated affiliates — — 750 (750 ) — Repayments of intercompany note advance from parent — — (424 ) 424 — Other, net — (2 ) — — (2 ) Net cash (used in) provided by financing activities (28 ) (21 ) 80 (326 ) (295 ) Net (decrease) increase in cash, cash equivalents and restricted cash — (2,260 ) 26 — (2,234 ) Cash, cash equivalents and restricted cash, beginning of period — 6,222 437 — 6,659 Cash, cash equivalents and restricted cash, end of period $ — $ 3,962 $ 463 $ — $ 4,425 |
Additional Financial Informatio
Additional Financial Information | 3 Months Ended |
Jun. 30, 2019 | |
Accounts Payable [Abstract] | |
Additional Financial Information | Additional Financial Information Cash, Cash Equivalents and Restricted Cash The following provides the classifications of cash, cash equivalents and restricted cash in the consolidated balance sheets: June 30, March 31, (in millions) Cash and cash equivalents $ 4,869 $ 6,982 Restricted cash in Other assets (1) 83 81 Cash, cash equivalents and restricted cash $ 4,952 $ 7,063 _________________ (1) Restricted cash in Other assets is required as part of our spectrum financing transactions. Accounts Payable Accounts payable at June 30, 2019 and March 31, 2019 include liabilities in the amounts of $64 million and $75 million , respectively, for payments issued in excess of associated bank balances but not yet presented for collection. |
Leases Leases
Leases Leases | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Leases (Topic 842) Disclosures Lessee We have operating and finance leases as a lessee for network equipment, cell sites, co-locations, dark fiber, office buildings, retail stores and kiosks, fleet vehicles, switch sites/points of presence, and office equipment and furniture. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Our leases have remaining lease terms of 1 to 20 years , some of which may include options to extend the leases for up to 20 years , and some of which may include options to terminate the leases within one year . Network equipment typically has initial non-cancelable terms of five to ten years with similar renewal options; however, extensions longer than ten years do occur. Cell sites generally have an initial non-cancelable lease term of five years with one to four renewal options to extend the lease in five-year increments. Retail stores generally have an initial non-cancelable lease term ranging from three to ten years with renewal options in five-year increments. Fleet vehicles generally have an initial non-cancelable lease term of three years with monthly renewal options to extend the lease. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our lease term for accounting purposes is generally the initial non-cancelable lease term. We recognize lease expense for operating leases and amortization expense on finance leases on a straight-line basis over the lease term. We determine if an arrangement is a lease at contract inception. A contract is or contains a lease if the contract conveys the right to control the identified asset for a period of time in exchange for consideration. The right to control an asset is defined as the right to obtain substantially all of the economic benefits from the use of the identified asset and includes the right to direct the use of the identified asset. Identified assets are either explicitly specified in the contract, or are implicitly identified. Implicit identification includes a lease provision where a space or dimension is defined in the contract. This provision becomes explicit when equipment is physically placed on the respective space. For those identified leases, the Company records them on the balance sheet as ROU assets and corresponding lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and the lease liability represents our obligation to make lease payments arising from the lease. Finance leases have historically been recorded in "Property, plant and equipment, net" in the consolidated balance sheets. Under the new standard, finance lease assets are included in the ROU asset account within "Property, plant and equipment, net" in the consolidated balance sheets. The associated lease liabilities for our finance leases are immaterial. The ROU asset and lease liability for operating leases are initially measured and recorded at the present value of the expected future lease payments at contract commencement or modification. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized cost using the effective interest method. As of June 30, 2019 and April 1, 2019, ROU assets recorded under finance leases were $612 million and $613 million , respectively, and accumulated depreciation associated with finance leases was $77 million and $58 million , respectively. The Company's lease portfolio is broad. Some leases include real estate taxes, common area maintenance, and management fees in the annual rental payments, while in other leases these amounts are charged separately. For all asset classes where the Company is the lessee, we have elected to not separate lease and non-lease components within a contract as defined under the new standard, instead separate lease and non-lease components are accounted for as a single lease component. We utilize the Company's estimated incremental borrowing rate to discount future payments in the calculation of the lease liability and ROU asset. The Company determines the rates using a portfolio approach based on our current secured borrowings in order to approximate the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collaterized basis for a term similar to the lease term. The Company updates the rate monthly for new leases. Operating lease costs are recognized on the income statement on a straight-line basis over the lease term, with operating lease costs being recorded to cost of services or selling, general and administrative expense based on the primary use of the leased asset. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. Finance lease costs are recorded to depreciation expense, and interest expense is recognized using the effective interest rate method and included in interest expense in our consolidated statements of comprehensive (loss) income. Certain of our leases may require variable lease payments based on external indicators, including real estate taxes, common area charges and utility usage. These variable rent payments for both operating and finance leases are not included in the measurement of the lease liability and are expensed in the period incurred. In 2005, Sprint entered into a lease leaseback arrangement with a third party that was subsequently acquired by Crown Castle International (CCI) whereby the third party would lease from us approximately 5,700 cell sites, which included the towers and related assets under a Master Lease (Master Lease Sites) and otherwise manage another 970 sites until which time those sites may be leased to CCI (Managed Sites). The term of the arrangement was 32 years and provides no renewal options. Sprint leases back space on certain of these towers. For those Master Lease Sites, CCI has assumed all rights and obligations that arise under the ground leases. As Sprint is only contingently liable for future ground lease payments for these sites, obligations for these ground leases are not included in Sprint’s operating lease liabilities. For those Managed Sites, while CCI is required to make all cash payments to the landlord during the term of the arrangement, Sprint was not relieved of the primary obligation under the ground leases. Obligations during the term of the arrangement for these ground leases are included in operating lease liabilities of approximately $201 million and $207 million as of June 30, 2019 and April 1, 2019, respectively. Additionally, because Sprint has no future cash payments under these leases, they have been excluded from the tabular disclosures on weighted average remaining lease term and discount rate. The components of lease expense were as follows: Three Months Ended June 30, 2019 (in millions) Operating lease expense $ 530 Finance lease expense: Amortization of right-to-use assets 18 Interest on lease liabilities 1 Total finance lease expense 19 Variable lease expense 15 Total lease expense $ 564 The supplemental components of cash flows were as follows: Three Months Ended June 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 2 Operating cash flows from operating leases 576 Financing cash flows from finance leases 1 Total cash paid for amounts included in the measurement of lease liabilities $ 579 Non-cash investing and financing activities: Operating lease right-of-use assets obtained in exchange for lease obligations $ 113 Information relating to the lease term and discount rate excluding the Managed Sites is as follows: Three Months Ended June 30, 2019 Weighted average remaining lease term (years) Operating leases 5.4 Weighted average remaining discount rate Operating leases 6.2 % Maturities of operating lease liabilities as of June 30, 2019 were as follows: (in millions) Remainder of fiscal year ending March 31, 2020 $ 1,580 Fiscal year ending March 31, 2021 2,187 Fiscal year ending March 31, 2022 1,640 Fiscal year ending March 31, 2023 1,133 Fiscal year ending March 31, 2024 770 Thereafter 1,783 Total lease payments 9,093 Less imputed interest (1,500 ) Total $ 7,593 Lessor Substantially all leases where the Company is the lessor are classified as operating leases under the previous literature. Due to the Company’s election of the various practical expedients, we did not reassess the lease classification of existing leases upon adoption of Topic 842. The Company will continue to recognize the underlying asset and recognize lease income over the lease term. As of April 1, 2019, an immaterial amount of our handset leases met the criteria to be classified as direct financing or sales-type leases under the previous literature. We do not expect a material amount of new leases to be classified as direct financing or sales-type leases subsequent to adoption of Topic 842 if terms remain consistent with the Company’s current leasing program. For handset leases, we separate lease and non-lease components within a contract as defined under Topic 842. The total consideration in the contract is allocated to each separate lease component and non-lease component based on each component's relative selling price, using observable standalone prices, or by maximizing other observable information. Each lease component is accounted for separately from the non-lease components of a contract. The term of our handset leases are generally 18 months , and the customer is able to extend the lease on a month-to-month basis after the initial lease term. There is no early termination option; if the customer exits the service agreement early the remaining lease payments become immediately payable at that point. At the termination or expiration of a customer lease, the customer may purchase the leased device or return the device to the Company. As of June 30, 2019 and April 1, 2019, our estimated residual value of handsets under current operating leases was approximately $3.3 billion and $3.2 billion , respectively. Accounting for device leases involves specific determinations under applicable lease accounting standards. These determinations affect the timing of revenue recognition and the timing and classification of the related cost of the device. If a lease is classified as an operating lease, revenue is recognized ratably over the lease term and the leased asset is included in "Property, plant and equipment, net" in the consolidated balance sheets and depreciated to its estimated residual value generally over the lease term. If the lease is classified as a sales-type lease, revenue is recognized at the commencement of the lease with a corresponding charge to cost of equipment sales. If the lease is classified as a direct-financing lease, there is no related revenue or cost of equipment sales recorded and the net investment in a leased asset is reported. The critical elements that we consider in determining the classification of our leased devices are the economic life and the fair value of the device, including the estimated residual value. For the purposes of assessing the economic life of a device, we consider both internal and external datasets including, but not limited to, the length of time subscribers use our devices, sales trends post launch, and transactions in the secondary market as there is currently a significant after-market for used wireless devices. Adjustments to residual values of leased devices are recognized as a revision in depreciation estimates. We estimate that a 10% increase or decrease in the estimated residual values of devices under operating leases at June 30, 2019 would not have a material effect on depreciation expense over the next twelve months. For the quarter-ended June 30, 2019, the effects of changes in the estimated residual value of devices currently under operating leases have been immaterial. Leases (Topic 840) Disclosures As the result of adopting Topic 842 using the modified retrospective transition method, we did not restate the periods prior to the adoption date of April 1, 2019. These periods continue to be presented in accordance with Topic 840. See Note 2. New Accounting Pronouncements for further information. Lessee As of March 31, 2019, the minimum estimated amounts due under operating leases and capital leases were as follows: Future Minimum Commitments Operating Leases Capital Leases and Financing Obligations (in millions) Fiscal year ending March 31, 2020 $ 2,277 $ 262 Fiscal year ending March 31, 2021 2,199 150 Fiscal year ending March 31, 2022 1,793 92 Fiscal year ending March 31, 2023 1,358 44 Fiscal year ending March 31, 2024 1,039 12 Thereafter 3,101 — Total lease payments $ 11,767 $ 560 Operating Leases Our rental commitments for operating leases, including lease renewals that are reasonably assured, consisted mainly of leases for cell and switch sites, real estate, information technology and network equipment and office space. Total rental expense was $2.8 billion , $2.7 billion , and $3.1 billion , for the years ended March 31, 2019, 2018 and 2017, respectively. Tower Financing During 2008, we sold and subsequently leased back approximately 3,000 cell sites, of which approximately 1,750 remained as of March 31, 2019. Terms extend through 2021, with renewal options for an additional 20 years . These cell sites were previously reported as part of "Property, plant and equipment, net" in our consolidated balance sheets due to our continued involvement with the property sold, and the transaction was accounted for as a financing. The financing obligation as of March 31, 2019 was $109 million . Upon adoption of the new leasing standard, we were required to reassess the previously failed sale-leasebacks and determine whether the transfer of the assets to the tower operator under the arrangement met the transfer of control criteria in the revenue standard and whether a sale should be recognized. We concluded that a sale had occurred and therefore, we derecognized our existing long-term financial obligation and the tower-related property and equipment associated with these sites as part of the cumulative effect adjustment on April 1, 2019. |
Leases | Leases Leases (Topic 842) Disclosures Lessee We have operating and finance leases as a lessee for network equipment, cell sites, co-locations, dark fiber, office buildings, retail stores and kiosks, fleet vehicles, switch sites/points of presence, and office equipment and furniture. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Our leases have remaining lease terms of 1 to 20 years , some of which may include options to extend the leases for up to 20 years , and some of which may include options to terminate the leases within one year . Network equipment typically has initial non-cancelable terms of five to ten years with similar renewal options; however, extensions longer than ten years do occur. Cell sites generally have an initial non-cancelable lease term of five years with one to four renewal options to extend the lease in five-year increments. Retail stores generally have an initial non-cancelable lease term ranging from three to ten years with renewal options in five-year increments. Fleet vehicles generally have an initial non-cancelable lease term of three years with monthly renewal options to extend the lease. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our lease term for accounting purposes is generally the initial non-cancelable lease term. We recognize lease expense for operating leases and amortization expense on finance leases on a straight-line basis over the lease term. We determine if an arrangement is a lease at contract inception. A contract is or contains a lease if the contract conveys the right to control the identified asset for a period of time in exchange for consideration. The right to control an asset is defined as the right to obtain substantially all of the economic benefits from the use of the identified asset and includes the right to direct the use of the identified asset. Identified assets are either explicitly specified in the contract, or are implicitly identified. Implicit identification includes a lease provision where a space or dimension is defined in the contract. This provision becomes explicit when equipment is physically placed on the respective space. For those identified leases, the Company records them on the balance sheet as ROU assets and corresponding lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and the lease liability represents our obligation to make lease payments arising from the lease. Finance leases have historically been recorded in "Property, plant and equipment, net" in the consolidated balance sheets. Under the new standard, finance lease assets are included in the ROU asset account within "Property, plant and equipment, net" in the consolidated balance sheets. The associated lease liabilities for our finance leases are immaterial. The ROU asset and lease liability for operating leases are initially measured and recorded at the present value of the expected future lease payments at contract commencement or modification. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized cost using the effective interest method. As of June 30, 2019 and April 1, 2019, ROU assets recorded under finance leases were $612 million and $613 million , respectively, and accumulated depreciation associated with finance leases was $77 million and $58 million , respectively. The Company's lease portfolio is broad. Some leases include real estate taxes, common area maintenance, and management fees in the annual rental payments, while in other leases these amounts are charged separately. For all asset classes where the Company is the lessee, we have elected to not separate lease and non-lease components within a contract as defined under the new standard, instead separate lease and non-lease components are accounted for as a single lease component. We utilize the Company's estimated incremental borrowing rate to discount future payments in the calculation of the lease liability and ROU asset. The Company determines the rates using a portfolio approach based on our current secured borrowings in order to approximate the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collaterized basis for a term similar to the lease term. The Company updates the rate monthly for new leases. Operating lease costs are recognized on the income statement on a straight-line basis over the lease term, with operating lease costs being recorded to cost of services or selling, general and administrative expense based on the primary use of the leased asset. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. Finance lease costs are recorded to depreciation expense, and interest expense is recognized using the effective interest rate method and included in interest expense in our consolidated statements of comprehensive (loss) income. Certain of our leases may require variable lease payments based on external indicators, including real estate taxes, common area charges and utility usage. These variable rent payments for both operating and finance leases are not included in the measurement of the lease liability and are expensed in the period incurred. In 2005, Sprint entered into a lease leaseback arrangement with a third party that was subsequently acquired by Crown Castle International (CCI) whereby the third party would lease from us approximately 5,700 cell sites, which included the towers and related assets under a Master Lease (Master Lease Sites) and otherwise manage another 970 sites until which time those sites may be leased to CCI (Managed Sites). The term of the arrangement was 32 years and provides no renewal options. Sprint leases back space on certain of these towers. For those Master Lease Sites, CCI has assumed all rights and obligations that arise under the ground leases. As Sprint is only contingently liable for future ground lease payments for these sites, obligations for these ground leases are not included in Sprint’s operating lease liabilities. For those Managed Sites, while CCI is required to make all cash payments to the landlord during the term of the arrangement, Sprint was not relieved of the primary obligation under the ground leases. Obligations during the term of the arrangement for these ground leases are included in operating lease liabilities of approximately $201 million and $207 million as of June 30, 2019 and April 1, 2019, respectively. Additionally, because Sprint has no future cash payments under these leases, they have been excluded from the tabular disclosures on weighted average remaining lease term and discount rate. The components of lease expense were as follows: Three Months Ended June 30, 2019 (in millions) Operating lease expense $ 530 Finance lease expense: Amortization of right-to-use assets 18 Interest on lease liabilities 1 Total finance lease expense 19 Variable lease expense 15 Total lease expense $ 564 The supplemental components of cash flows were as follows: Three Months Ended June 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 2 Operating cash flows from operating leases 576 Financing cash flows from finance leases 1 Total cash paid for amounts included in the measurement of lease liabilities $ 579 Non-cash investing and financing activities: Operating lease right-of-use assets obtained in exchange for lease obligations $ 113 Information relating to the lease term and discount rate excluding the Managed Sites is as follows: Three Months Ended June 30, 2019 Weighted average remaining lease term (years) Operating leases 5.4 Weighted average remaining discount rate Operating leases 6.2 % Maturities of operating lease liabilities as of June 30, 2019 were as follows: (in millions) Remainder of fiscal year ending March 31, 2020 $ 1,580 Fiscal year ending March 31, 2021 2,187 Fiscal year ending March 31, 2022 1,640 Fiscal year ending March 31, 2023 1,133 Fiscal year ending March 31, 2024 770 Thereafter 1,783 Total lease payments 9,093 Less imputed interest (1,500 ) Total $ 7,593 Lessor Substantially all leases where the Company is the lessor are classified as operating leases under the previous literature. Due to the Company’s election of the various practical expedients, we did not reassess the lease classification of existing leases upon adoption of Topic 842. The Company will continue to recognize the underlying asset and recognize lease income over the lease term. As of April 1, 2019, an immaterial amount of our handset leases met the criteria to be classified as direct financing or sales-type leases under the previous literature. We do not expect a material amount of new leases to be classified as direct financing or sales-type leases subsequent to adoption of Topic 842 if terms remain consistent with the Company’s current leasing program. For handset leases, we separate lease and non-lease components within a contract as defined under Topic 842. The total consideration in the contract is allocated to each separate lease component and non-lease component based on each component's relative selling price, using observable standalone prices, or by maximizing other observable information. Each lease component is accounted for separately from the non-lease components of a contract. The term of our handset leases are generally 18 months , and the customer is able to extend the lease on a month-to-month basis after the initial lease term. There is no early termination option; if the customer exits the service agreement early the remaining lease payments become immediately payable at that point. At the termination or expiration of a customer lease, the customer may purchase the leased device or return the device to the Company. As of June 30, 2019 and April 1, 2019, our estimated residual value of handsets under current operating leases was approximately $3.3 billion and $3.2 billion , respectively. Accounting for device leases involves specific determinations under applicable lease accounting standards. These determinations affect the timing of revenue recognition and the timing and classification of the related cost of the device. If a lease is classified as an operating lease, revenue is recognized ratably over the lease term and the leased asset is included in "Property, plant and equipment, net" in the consolidated balance sheets and depreciated to its estimated residual value generally over the lease term. If the lease is classified as a sales-type lease, revenue is recognized at the commencement of the lease with a corresponding charge to cost of equipment sales. If the lease is classified as a direct-financing lease, there is no related revenue or cost of equipment sales recorded and the net investment in a leased asset is reported. The critical elements that we consider in determining the classification of our leased devices are the economic life and the fair value of the device, including the estimated residual value. For the purposes of assessing the economic life of a device, we consider both internal and external datasets including, but not limited to, the length of time subscribers use our devices, sales trends post launch, and transactions in the secondary market as there is currently a significant after-market for used wireless devices. Adjustments to residual values of leased devices are recognized as a revision in depreciation estimates. We estimate that a 10% increase or decrease in the estimated residual values of devices under operating leases at June 30, 2019 would not have a material effect on depreciation expense over the next twelve months. For the quarter-ended June 30, 2019, the effects of changes in the estimated residual value of devices currently under operating leases have been immaterial. Leases (Topic 840) Disclosures As the result of adopting Topic 842 using the modified retrospective transition method, we did not restate the periods prior to the adoption date of April 1, 2019. These periods continue to be presented in accordance with Topic 840. See Note 2. New Accounting Pronouncements for further information. Lessee As of March 31, 2019, the minimum estimated amounts due under operating leases and capital leases were as follows: Future Minimum Commitments Operating Leases Capital Leases and Financing Obligations (in millions) Fiscal year ending March 31, 2020 $ 2,277 $ 262 Fiscal year ending March 31, 2021 2,199 150 Fiscal year ending March 31, 2022 1,793 92 Fiscal year ending March 31, 2023 1,358 44 Fiscal year ending March 31, 2024 1,039 12 Thereafter 3,101 — Total lease payments $ 11,767 $ 560 Operating Leases Our rental commitments for operating leases, including lease renewals that are reasonably assured, consisted mainly of leases for cell and switch sites, real estate, information technology and network equipment and office space. Total rental expense was $2.8 billion , $2.7 billion , and $3.1 billion , for the years ended March 31, 2019, 2018 and 2017, respectively. Tower Financing During 2008, we sold and subsequently leased back approximately 3,000 cell sites, of which approximately 1,750 remained as of March 31, 2019. Terms extend through 2021, with renewal options for an additional 20 years . These cell sites were previously reported as part of "Property, plant and equipment, net" in our consolidated balance sheets due to our continued involvement with the property sold, and the transaction was accounted for as a financing. The financing obligation as of March 31, 2019 was $109 million . Upon adoption of the new leasing standard, we were required to reassess the previously failed sale-leasebacks and determine whether the transfer of the assets to the tower operator under the arrangement met the transfer of control criteria in the revenue standard and whether a sale should be recognized. We concluded that a sale had occurred and therefore, we derecognized our existing long-term financial obligation and the tower-related property and equipment associated with these sites as part of the cumulative effect adjustment on April 1, 2019. |
Leases | Leases Leases (Topic 842) Disclosures Lessee We have operating and finance leases as a lessee for network equipment, cell sites, co-locations, dark fiber, office buildings, retail stores and kiosks, fleet vehicles, switch sites/points of presence, and office equipment and furniture. These leases, with few exceptions, provide for automatic renewal options and escalations that are either fixed or based on the consumer price index. Our leases have remaining lease terms of 1 to 20 years , some of which may include options to extend the leases for up to 20 years , and some of which may include options to terminate the leases within one year . Network equipment typically has initial non-cancelable terms of five to ten years with similar renewal options; however, extensions longer than ten years do occur. Cell sites generally have an initial non-cancelable lease term of five years with one to four renewal options to extend the lease in five-year increments. Retail stores generally have an initial non-cancelable lease term ranging from three to ten years with renewal options in five-year increments. Fleet vehicles generally have an initial non-cancelable lease term of three years with monthly renewal options to extend the lease. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our lease term for accounting purposes is generally the initial non-cancelable lease term. We recognize lease expense for operating leases and amortization expense on finance leases on a straight-line basis over the lease term. We determine if an arrangement is a lease at contract inception. A contract is or contains a lease if the contract conveys the right to control the identified asset for a period of time in exchange for consideration. The right to control an asset is defined as the right to obtain substantially all of the economic benefits from the use of the identified asset and includes the right to direct the use of the identified asset. Identified assets are either explicitly specified in the contract, or are implicitly identified. Implicit identification includes a lease provision where a space or dimension is defined in the contract. This provision becomes explicit when equipment is physically placed on the respective space. For those identified leases, the Company records them on the balance sheet as ROU assets and corresponding lease liabilities. ROU assets represent our right to use an underlying asset for the lease term, and the lease liability represents our obligation to make lease payments arising from the lease. Finance leases have historically been recorded in "Property, plant and equipment, net" in the consolidated balance sheets. Under the new standard, finance lease assets are included in the ROU asset account within "Property, plant and equipment, net" in the consolidated balance sheets. The associated lease liabilities for our finance leases are immaterial. The ROU asset and lease liability for operating leases are initially measured and recorded at the present value of the expected future lease payments at contract commencement or modification. For finance leases, the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized cost using the effective interest method. As of June 30, 2019 and April 1, 2019, ROU assets recorded under finance leases were $612 million and $613 million , respectively, and accumulated depreciation associated with finance leases was $77 million and $58 million , respectively. The Company's lease portfolio is broad. Some leases include real estate taxes, common area maintenance, and management fees in the annual rental payments, while in other leases these amounts are charged separately. For all asset classes where the Company is the lessee, we have elected to not separate lease and non-lease components within a contract as defined under the new standard, instead separate lease and non-lease components are accounted for as a single lease component. We utilize the Company's estimated incremental borrowing rate to discount future payments in the calculation of the lease liability and ROU asset. The Company determines the rates using a portfolio approach based on our current secured borrowings in order to approximate the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collaterized basis for a term similar to the lease term. The Company updates the rate monthly for new leases. Operating lease costs are recognized on the income statement on a straight-line basis over the lease term, with operating lease costs being recorded to cost of services or selling, general and administrative expense based on the primary use of the leased asset. Any rent abatements, along with rent escalations, are included in the computation of rent expense calculated on a straight-line basis over the lease term. Finance lease costs are recorded to depreciation expense, and interest expense is recognized using the effective interest rate method and included in interest expense in our consolidated statements of comprehensive (loss) income. Certain of our leases may require variable lease payments based on external indicators, including real estate taxes, common area charges and utility usage. These variable rent payments for both operating and finance leases are not included in the measurement of the lease liability and are expensed in the period incurred. In 2005, Sprint entered into a lease leaseback arrangement with a third party that was subsequently acquired by Crown Castle International (CCI) whereby the third party would lease from us approximately 5,700 cell sites, which included the towers and related assets under a Master Lease (Master Lease Sites) and otherwise manage another 970 sites until which time those sites may be leased to CCI (Managed Sites). The term of the arrangement was 32 years and provides no renewal options. Sprint leases back space on certain of these towers. For those Master Lease Sites, CCI has assumed all rights and obligations that arise under the ground leases. As Sprint is only contingently liable for future ground lease payments for these sites, obligations for these ground leases are not included in Sprint’s operating lease liabilities. For those Managed Sites, while CCI is required to make all cash payments to the landlord during the term of the arrangement, Sprint was not relieved of the primary obligation under the ground leases. Obligations during the term of the arrangement for these ground leases are included in operating lease liabilities of approximately $201 million and $207 million as of June 30, 2019 and April 1, 2019, respectively. Additionally, because Sprint has no future cash payments under these leases, they have been excluded from the tabular disclosures on weighted average remaining lease term and discount rate. The components of lease expense were as follows: Three Months Ended June 30, 2019 (in millions) Operating lease expense $ 530 Finance lease expense: Amortization of right-to-use assets 18 Interest on lease liabilities 1 Total finance lease expense 19 Variable lease expense 15 Total lease expense $ 564 The supplemental components of cash flows were as follows: Three Months Ended June 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 2 Operating cash flows from operating leases 576 Financing cash flows from finance leases 1 Total cash paid for amounts included in the measurement of lease liabilities $ 579 Non-cash investing and financing activities: Operating lease right-of-use assets obtained in exchange for lease obligations $ 113 Information relating to the lease term and discount rate excluding the Managed Sites is as follows: Three Months Ended June 30, 2019 Weighted average remaining lease term (years) Operating leases 5.4 Weighted average remaining discount rate Operating leases 6.2 % Maturities of operating lease liabilities as of June 30, 2019 were as follows: (in millions) Remainder of fiscal year ending March 31, 2020 $ 1,580 Fiscal year ending March 31, 2021 2,187 Fiscal year ending March 31, 2022 1,640 Fiscal year ending March 31, 2023 1,133 Fiscal year ending March 31, 2024 770 Thereafter 1,783 Total lease payments 9,093 Less imputed interest (1,500 ) Total $ 7,593 Lessor Substantially all leases where the Company is the lessor are classified as operating leases under the previous literature. Due to the Company’s election of the various practical expedients, we did not reassess the lease classification of existing leases upon adoption of Topic 842. The Company will continue to recognize the underlying asset and recognize lease income over the lease term. As of April 1, 2019, an immaterial amount of our handset leases met the criteria to be classified as direct financing or sales-type leases under the previous literature. We do not expect a material amount of new leases to be classified as direct financing or sales-type leases subsequent to adoption of Topic 842 if terms remain consistent with the Company’s current leasing program. For handset leases, we separate lease and non-lease components within a contract as defined under Topic 842. The total consideration in the contract is allocated to each separate lease component and non-lease component based on each component's relative selling price, using observable standalone prices, or by maximizing other observable information. Each lease component is accounted for separately from the non-lease components of a contract. The term of our handset leases are generally 18 months , and the customer is able to extend the lease on a month-to-month basis after the initial lease term. There is no early termination option; if the customer exits the service agreement early the remaining lease payments become immediately payable at that point. At the termination or expiration of a customer lease, the customer may purchase the leased device or return the device to the Company. As of June 30, 2019 and April 1, 2019, our estimated residual value of handsets under current operating leases was approximately $3.3 billion and $3.2 billion , respectively. Accounting for device leases involves specific determinations under applicable lease accounting standards. These determinations affect the timing of revenue recognition and the timing and classification of the related cost of the device. If a lease is classified as an operating lease, revenue is recognized ratably over the lease term and the leased asset is included in "Property, plant and equipment, net" in the consolidated balance sheets and depreciated to its estimated residual value generally over the lease term. If the lease is classified as a sales-type lease, revenue is recognized at the commencement of the lease with a corresponding charge to cost of equipment sales. If the lease is classified as a direct-financing lease, there is no related revenue or cost of equipment sales recorded and the net investment in a leased asset is reported. The critical elements that we consider in determining the classification of our leased devices are the economic life and the fair value of the device, including the estimated residual value. For the purposes of assessing the economic life of a device, we consider both internal and external datasets including, but not limited to, the length of time subscribers use our devices, sales trends post launch, and transactions in the secondary market as there is currently a significant after-market for used wireless devices. Adjustments to residual values of leased devices are recognized as a revision in depreciation estimates. We estimate that a 10% increase or decrease in the estimated residual values of devices under operating leases at June 30, 2019 would not have a material effect on depreciation expense over the next twelve months. For the quarter-ended June 30, 2019, the effects of changes in the estimated residual value of devices currently under operating leases have been immaterial. Leases (Topic 840) Disclosures As the result of adopting Topic 842 using the modified retrospective transition method, we did not restate the periods prior to the adoption date of April 1, 2019. These periods continue to be presented in accordance with Topic 840. See Note 2. New Accounting Pronouncements for further information. Lessee As of March 31, 2019, the minimum estimated amounts due under operating leases and capital leases were as follows: Future Minimum Commitments Operating Leases Capital Leases and Financing Obligations (in millions) Fiscal year ending March 31, 2020 $ 2,277 $ 262 Fiscal year ending March 31, 2021 2,199 150 Fiscal year ending March 31, 2022 1,793 92 Fiscal year ending March 31, 2023 1,358 44 Fiscal year ending March 31, 2024 1,039 12 Thereafter 3,101 — Total lease payments $ 11,767 $ 560 Operating Leases Our rental commitments for operating leases, including lease renewals that are reasonably assured, consisted mainly of leases for cell and switch sites, real estate, information technology and network equipment and office space. Total rental expense was $2.8 billion , $2.7 billion , and $3.1 billion , for the years ended March 31, 2019, 2018 and 2017, respectively. Tower Financing During 2008, we sold and subsequently leased back approximately 3,000 cell sites, of which approximately 1,750 remained as of March 31, 2019. Terms extend through 2021, with renewal options for an additional 20 years . These cell sites were previously reported as part of "Property, plant and equipment, net" in our consolidated balance sheets due to our continued involvement with the property sold, and the transaction was accounted for as a financing. The financing obligation as of March 31, 2019 was $109 million . Upon adoption of the new leasing standard, we were required to reassess the previously failed sale-leasebacks and determine whether the transfer of the assets to the tower operator under the arrangement met the transfer of control criteria in the revenue standard and whether a sale should be recognized. We concluded that a sale had occurred and therefore, we derecognized our existing long-term financial obligation and the tower-related property and equipment associated with these sites as part of the cumulative effect adjustment on April 1, 2019. |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Adjustments for Changes in Accounting Standards Updates | The cumulative after-tax effect of the changes made to our consolidated balance sheet for the adoption of Topic 842 effective for the Company on April 1, 2019 were as follows: March 31, 2019 Effects of the adoption of Topic 842 April 1, 2019 (in millions) ASSETS Current assets: Prepaid expenses and other current assets $ 1,289 $ (111 ) $ 1,178 Property, plant and equipment 41,740 (31 ) 41,709 Accumulated depreciation (20,539 ) 27 (20,512 ) Property, plant and equipment, net 21,201 (4 ) 21,197 Operating lease right-of-use assets — 7,358 7,358 Definite-lived intangible assets, net 1,769 (119 ) 1,650 Other assets 1,118 (1 ) 1,117 LIABILITIES AND EQUITY Current liabilities: Accrued expenses and other current liabilities $ 3,597 $ (178 ) $ 3,419 Current operating lease liabilities — 1,813 1,813 Current portion of long-term debt, financing and finance lease obligations 4,557 (43 ) 4,514 Long-term debt, financing and finance lease obligations 35,366 (67 ) 35,299 Long-term operating lease liabilities — 6,263 6,263 Deferred tax liabilities 7,556 46 7,602 Other liabilities 3,437 (873 ) 2,564 Stockholders' equity: (Accumulated deficit) retained earnings (1,883 ) 162 (1,721 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair values of our exchangeable notes as well as current and long-term debt | The following table presents carrying amounts and estimated fair values of current and long-term debt and financing obligations: Carrying amount at June 30, 2019 Estimated Fair Value Using Input Type Quoted prices in active markets Observable Unobservable Total estimated fair value (in millions) Current and long-term debt and financing obligations $ 38,335 $ 35,601 $ 198 $ 4,076 $ 39,875 Carrying amount at March 31, 2019 Estimated Fair Value Using Input Type Quoted prices in active markets Observable Unobservable Total estimated fair value (in millions) Current and long-term debt and financing obligations $ 40,193 $ 36,642 $ 197 $ 3,970 $ 40,809 |
Installment Receivables (Tables
Installment Receivables (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Installment Receivables | The following table summarizes the installment receivables: June 30, March 31, (in millions) Installment receivables, gross $ 1,332 $ 1,212 Deferred interest (74 ) (71 ) Installment receivables, net of deferred interest 1,258 1,141 Allowance for credit losses (234 ) (215 ) Installment receivables, net $ 1,024 $ 926 Classified in the consolidated balance sheets as: Accounts and notes receivable, net $ 758 $ 679 Other assets 266 247 Installment receivables, net $ 1,024 $ 926 |
Balance and Aging of Financing Receivables by Credit Category | The balance and aging of installment receivables on a gross basis by credit category were as follows: June 30, 2019 March 31, 2019 Prime Subprime Total Prime Subprime Total (in millions) (in millions) Unbilled $ 722 $ 521 $ 1,243 $ 667 $ 459 $ 1,126 Billed - current 43 24 67 43 22 65 Billed - past due 10 12 22 10 11 21 Installment receivables, gross $ 775 $ 557 $ 1,332 $ 720 $ 492 $ 1,212 |
Schedule of Deferred Interest and Allowance for Credit Losses | Activity in the deferred interest and allowance for credit losses for the installment receivables was as follows: Three Months Ended Twelve Months Ended June 30, 2019 March 31, 2019 (in millions) Deferred interest and allowance for credit losses, beginning of period $ 286 $ 323 Adjustment to deferred interest on short- and long-term installment receivables due to adoption of revenue recognition standard on April 1, 2018 — (50 ) Bad debt expense 50 116 Write-offs, net of recoveries (32 ) (118 ) Change in deferred interest on short- and long-term installment receivables 4 15 Deferred interest and allowance for credit losses, end of period $ 308 $ 286 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Indefinite-Lived Intangible Assets | The following provides the activity of indefinite-lived intangible assets within the consolidated balance sheets: March 31, Net Additions June 30, (in millions) FCC licenses $ 37,430 $ 9 $ 37,439 Trademarks 4,035 — 4,035 Goodwill (1) 4,598 — 4,598 $ 46,063 $ 9 $ 46,072 _________________ (1) Through March 31, 2019 accumulated impairment losses for goodwill were $2.0 billion . There were no additional accumulated impairment losses for the quarter ended June 30, 2019 . |
Intangible Assets Subject to Amortization | June 30, 2019 March 31, 2019 Useful Lives Gross Accumulated Net Gross Accumulated Net (in millions) Customer relationships 5 to 8 years $ 6,563 $ (6,139 ) $ 424 $ 6,563 $ (6,029 ) $ 534 Other intangible assets: Favorable spectrum leases 23 years 807 (202 ) 605 763 (150 ) 613 Favorable tower leases (1) — — — — 335 (215 ) 120 Trademarks 2 to 34 years 520 (93 ) 427 520 (89 ) 431 Other 5 to 10 years 139 (70 ) 69 137 (66 ) 71 Total other intangible assets 1,466 (365 ) 1,101 1,755 (520 ) 1,235 Total definite-lived intangible assets $ 8,029 $ (6,504 ) $ 1,525 $ 8,318 $ (6,549 ) $ 1,769 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property, Plant and Equipment | The following table presents the components of property, plant and equipment and the related accumulated depreciation: June 30, March 31, (in millions) Land $ 107 $ 246 Network equipment, site costs and related software 25,110 24,967 Buildings and improvements 392 856 Leased devices, non-network internal use software, office equipment and other 12,448 12,627 Construction in progress 2,919 3,044 Less: accumulated depreciation (20,420 ) (20,539 ) Property, plant and equipment, net $ 20,556 $ 21,201 |
Leased devices [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property, Plant and Equipment | The following table presents leased devices and the related accumulated depreciation: June 30, March 31, (in millions) Leased devices $ 10,770 $ 10,972 Less: accumulated depreciation (4,346 ) (4,360 ) Leased devices, net $ 6,424 $ 6,612 |
Long-Term Debt, Financing and_2
Long-Term Debt, Financing and Capital Lease Obligations (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule of Long-term Debt Instruments | Interest Rates Maturities June 30, March 31, (in millions) Notes Senior notes Sprint Corporation 7.13 - 7.88% 2021 - 2026 $ 12,000 $ 12,000 Sprint Communications, Inc. 6.00 - 11.50% 2020 - 2022 4,780 4,780 Sprint Capital Corporation 6.88 - 8.75% 2028 - 2032 4,475 6,204 Senior secured notes Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC 3.36 - 5.15% 2021 - 2028 5,906 6,125 Guaranteed notes Sprint Communications, Inc. 7.00% 2020 1,000 1,000 Credit facilities Secured revolving bank credit facility 4.69% 2021 — — Secured term loans 4.94 - 5.44% 2024 5,900 5,915 PRWireless term loan 7.58% 2020 200 198 Export Development Canada (EDC) 4.65% 2019 300 300 Secured equipment credit facilities 3.53 - 4.26% 2021 - 2022 556 661 Accounts receivable facility 3.58 - 3.78% 2021 2,837 2,607 Financing obligations, finance lease and other obligations 2.35 - 12.00% 2019 - 2026 407 538 Net premiums and debt financing costs (399 ) (405 ) 37,962 39,923 Less current portion (2,889 ) (4,557 ) Long-term debt, financing and finance lease obligations $ 35,073 $ 35,366 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Reported Revenue | The following table presents disaggregated reported revenue by category: Three Months Ended June 30, 2019 2018 (in millions) Service revenue Postpaid $ 4,199 $ 4,188 Prepaid 843 982 Wholesale, affiliate and other 285 294 Wireline 236 276 Total service revenue 5,563 5,740 Equipment sales 1,220 1,173 Equipment rentals 1,359 1,212 Total revenue $ 8,142 $ 8,125 |
Schedule of Contract Assets and Contract Liabilities | The following table presents the opening and closing balances of our contract assets, contract liabilities, and receivables balances, as well as capitalized costs associated with contracts with customers: June 30, March 31, 2019 2019 (in millions) Contract assets and liabilities Contract assets (1) $ 997 $ 928 Billed trade receivables 2,659 2,690 Unbilled trade receivables 1,031 945 Contract liabilities 995 1,009 Other related assets Capitalized costs to acquire a customer contract: Sales commissions - beginning balance $ 1,559 Sales commissions - additions 289 Amortization of capitalized sales commissions (217 ) Net costs to acquire a customer contract $ 1,631 _________________ (1) The fluctuation correlates directly to the execution of new customer contracts and invoicing and collections from customers in the normal course of business. The following table presents revenue recognized during the three-month periods ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 (in millions) Amounts included in the beginning of period contract liability balance $ 886 $ 867 |
Schedule of Remaining Performance Obligations | The aggregate amount of total transaction price allocated to performance obligations in contracts existing as of the balance sheet date, which are wholly or partially unsatisfied as of the end of the reporting period, and the expected time frame for satisfaction of those wholly or partially unsatisfied performance obligations, are as follows: (in millions) Remainder of fiscal year ending March 31, 2020 $ 6,383 Fiscal year ending March 31, 2021 2,224 Thereafter 21 Total $ 8,628 |
Severance and Exit Costs (Table
Severance and Exit Costs (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity in the Severance and Exit Costs Liability | The following provides the activity in the severance and exit costs liability included in "Accounts payable," "Accrued expenses and other current liabilities" and "Other liabilities" within the consolidated balance sheets. The net expenses are included in "Other, net" within the consolidated statements of comprehensive (loss) income : March 31, Net Expense Cash Payments and Other June 30, (in millions) Severance costs $ 6 $ — $ (3 ) $ 3 Access exit costs 36 27 (1) (19 ) 44 $ 42 $ 27 $ (22 ) $ 47 _________________ (1) For the three-month period ended June 30, 2019 , we recognized costs of $27 million (Wireless only) as "Severance and exit costs." |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Factors Causing Variation in Effective Tax Rate From US Federal Statutory Rate | The differences that caused our effective income tax rates to differ from the 21% U.S. federal statutory rate for income taxes were as follows: Three Months Ended 2019 2018 (in millions) Income tax benefit (expense) at the federal statutory rate $ 29 $ (46 ) Effect of: State income taxes, net of federal income tax effect 5 (15 ) State law changes, net of federal income tax effect — 24 Increase deferred tax liability for organizational restructuring — (13 ) Credit for increasing research activities 4 — Change in federal and state valuation allowance (14 ) 6 Other, net (2 ) (3 ) Income tax benefit (expense) $ 22 $ (47 ) Effective income tax rate 16.2 % 21.4 % |
Per Share Data Per Share Data (
Per Share Data Per Share Data (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted net (loss) income per common share attributable to Sprint was as follows: Three Months Ended June 30, 2019 2018 (in millions, except per share amounts) Net (loss) income $ (114 ) $ 173 Less: Net loss attributable to noncontrolling interests 3 3 Net (loss) income attributable to Sprint $ (111 ) $ 176 Basic weighted average common shares outstanding 4,087 4,010 Effect of dilutive securities: Options and restricted stock units — 47 Warrants (1) — 4 Diluted weighted average common shares outstanding 4,087 4,061 Basic net (loss) income per common share attributable to Sprint $ (0.03 ) $ 0.04 Diluted net (loss) income per common share attributable to Sprint $ (0.03 ) $ 0.04 Potentially dilutive securities: Outstanding stock options (2) 90 9 _________________ (1) For the three-month period ended June 30, 2018 , dilutive securities attributable to warrants include 2 million shares issuable under the warrant held by SoftBank. At the close of the merger with SoftBank, the warrant was issued at $5.25 per share. On July 10, 2018, SoftBank exercised its warrant in full to purchase 55 million shares of Sprint common stock for $287 million . (2) Potentially dilutive securities were not included in the computation of diluted net (loss) income per common share if to do so would have been antidilutive. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Statement of Operations Information | Segment financial information is as follows: Statement of Operations Information Wireless Wireline Corporate, Consolidated (in millions) Three Months Ended June 30, 2019 Net operating revenues $ 7,901 $ 236 $ 5 $ 8,142 Inter-segment revenues (1) — 71 (71 ) — Total segment operating expenses (2) (4,864 ) (307 ) 71 (5,100 ) Segment earnings $ 3,037 $ — $ 5 3,042 Less: Depreciation - network and other (1,120 ) Depreciation - equipment rentals (1,029 ) Amortization (118 ) Merger costs (2) (83 ) Other, net (3) (237 ) Operating income 455 Interest expense (619 ) Other income, net 28 Loss before income taxes $ (136 ) Statement of Operations Information Wireless Wireline Corporate, Consolidated (in millions) Three Months Ended June 30, 2018 Net operating revenues $ 7,845 $ 276 $ 4 $ 8,125 Inter-segment revenues (1) — 62 (62 ) — Total segment operating expenses (2) (4,527 ) (380 ) 62 (4,845 ) Segment earnings (loss) $ 3,318 $ (42 ) $ 4 3,280 Less: Depreciation - network and other (1,023 ) Depreciation - equipment rentals (1,136 ) Amortization (171 ) Merger costs (2) (93 ) Other, net (3) (42 ) Operating income 815 Interest expense (637 ) Other income, net 42 Income before income taxes $ 220 Other Information Wireless Wireline Corporate and Consolidated (in millions) Capital expenditures for the three months ended June 30, 2019 $ 2,543 $ 28 $ 134 $ 2,705 Capital expenditures for the three months ended June 30, 2018 $ 2,836 $ 51 $ 62 $ 2,949 _________________ (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-month periods ended June 30, 2019 and 2018 include $83 million and $93 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-month period ended June 30, 2019 includes $210 million of asset impairment charges primarily related to the sale and leaseback of our Overland Park, Kansas campus and $27 million of severance and exit costs due to access termination charges. Other, net for the three-month period ended June 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 and $8 million of severance and exit costs primarily due to access termination charges. |
Operating Revenues by Service and Products | Operating Revenues by Service and Products Wireless Wireline Corporate, Other and Eliminations (1) Consolidated (in millions) Three Months Ended June 30, 2019 Service revenue $ 5,042 $ 289 $ (71 ) $ 5,260 Wireless equipment sales 1,220 — — 1,220 Wireless equipment rentals 1,359 — — 1,359 Other 280 18 5 303 Total net operating revenues $ 7,901 $ 307 $ (66 ) $ 8,142 Operating Revenues by Service and Products Wireless Wireline Corporate, Other and Eliminations (1) Consolidated (in millions) Three Months Ended June 30, 2018 Service revenue $ 5,170 $ 314 $ (62 ) $ 5,422 Wireless equipment sales 1,173 — — 1,173 Wireless equipment rentals 1,212 — — 1,212 Other 290 24 4 318 Total net operating revenues $ 7,845 $ 338 $ (58 ) $ 8,125 _______________ (1) Revenues eliminated in consolidation consist primarily of wireline services provided to the Wireless segment for resale to or use by wireless subscribers. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Brightstar [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Amounts Included in Consolidated Financial Statements | Amounts included in our consolidated financial statements associated with these supply chain and inventory management arrangements with Brightstar were as follows: Consolidated balance sheets: June 30, March 31, (in millions) Accounts receivable $ 175 $ 187 Accounts payable and accrued expenses and other current liabilities $ 93 $ 109 Three Months Ended Consolidated statements of comprehensive (loss) income: June 30, 2019 2018 (in millions) Equipment sales $ 344 $ 413 Cost of equipment sales $ 361 $ 432 |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET June 30, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ — $ 4,469 $ 400 $ — $ 4,869 Accounts and notes receivable, net 233 473 3,558 (706 ) 3,558 Current portion of notes receivable from consolidated affiliates — 424 — (424 ) — Device and accessory inventory — — 726 — 726 Prepaid expenses and other current assets — 17 1,419 — 1,436 Total current assets 233 5,383 6,103 (1,130 ) 10,589 Investments in subsidiaries 25,832 17,396 — (43,228 ) — Property, plant and equipment, net — — 20,556 — 20,556 Costs to acquire a customer contract — — 1,631 — 1,631 Operating lease right-of-use assets — — 7,054 — 7,054 Due from consolidated affiliates 290 4,900 — (5,190 ) — Notes receivable from consolidated affiliates 11,889 23,143 — (35,032 ) — Intangible assets Goodwill — — 4,598 — 4,598 FCC licenses and other — — 41,474 — 41,474 Definite-lived intangible assets, net — — 1,525 — 1,525 Other assets — 40 1,079 — 1,119 Total assets $ 38,244 $ 50,862 $ 84,020 $ (84,580 ) $ 88,546 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ — $ 3,672 $ — $ 3,672 Accrued expenses and other current liabilities 239 348 3,167 (706 ) 3,048 Current operating lease liabilities — — 1,680 — 1,680 Current portion of long-term debt, financing and finance lease obligations — 1,369 1,520 — 2,889 Current portion of notes payable to consolidated affiliates — — 424 (424 ) — Total current liabilities 239 1,717 10,463 (1,130 ) 11,289 Long-term debt, financing and finance lease obligations 11,889 10,636 12,548 — 35,073 Long-term operating lease liabilities — — 5,913 — 5,913 Notes payable to consolidated affiliates — 11,889 23,143 (35,032 ) — Deferred tax liabilities — — 7,563 — 7,563 Other liabilities — 788 1,752 — 2,540 Due to consolidated affiliates — — 5,190 (5,190 ) — Total liabilities 12,128 25,030 66,572 (41,352 ) 62,378 Commitments and contingencies Total stockholders' equity 26,116 25,832 17,396 (43,228 ) 26,116 Noncontrolling interests — — 52 — 52 Total equity 26,116 25,832 17,448 (43,228 ) 26,168 Total liabilities and equity $ 38,244 $ 50,862 $ 84,020 $ (84,580 ) $ 88,546 CONDENSED CONSOLIDATING BALANCE SHEET March 31, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ — $ 6,605 $ 377 $ — $ 6,982 Short-term investments — 67 — — 67 Accounts and notes receivable, net 96 233 3,554 (329 ) 3,554 Current portion of notes receivable from consolidated affiliates — 424 — (424 ) — Device and accessory inventory — — 999 — 999 Prepaid expenses and other current assets — 9 1,280 — 1,289 Total current assets 96 7,338 6,210 (753 ) 12,891 Investments in subsidiaries 25,785 17,363 — (43,148 ) — Property, plant and equipment, net — — 21,201 — 21,201 Costs to acquire a customer contract — — 1,559 — 1,559 Due from consolidated affiliates 288 2,418 — (2,706 ) — Notes receivable from consolidated affiliates 11,883 23,567 — (35,450 ) — Intangible assets Goodwill — — 4,598 — 4,598 FCC licenses and other — — 41,465 — 41,465 Definite-lived intangible assets, net — — 1,769 — 1,769 Other assets — 52 1,066 — 1,118 Total assets $ 38,052 $ 50,738 $ 77,868 $ (82,057 ) $ 84,601 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ — $ 3,961 $ — $ 3,961 Accrued expenses and other current liabilities 97 230 3,599 (329 ) 3,597 Current portion of long-term debt, financing and finance lease obligations — 1,373 3,184 — 4,557 Current portion of notes payable to consolidated affiliates — — 424 (424 ) — Total current liabilities 97 1,603 11,168 (753 ) 12,115 Long-term debt, financing and finance lease obligations 11,883 10,660 12,823 — 35,366 Notes payable to consolidated affiliates — 11,883 23,567 (35,450 ) — Deferred tax liabilities — — 7,556 — 7,556 Other liabilities — 807 2,630 — 3,437 Due to consolidated affiliates — — 2,706 (2,706 ) — Total liabilities 11,980 24,953 60,450 (38,909 ) 58,474 Commitments and contingencies Total stockholders' equity 26,072 25,785 17,363 (43,148 ) 26,072 Noncontrolling interests — — 55 — 55 Total equity 26,072 25,785 17,418 (43,148 ) 26,127 Total liabilities and equity $ 38,052 $ 50,738 $ 77,868 $ (82,057 ) $ 84,601 |
Condensed Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended June 30, 2019 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ (186 ) $ 2,430 $ — $ 2,244 Cash flows from investing activities: Capital expenditures - network and other — — (1,189 ) — (1,189 ) Capital expenditures - leased devices — — (1,516 ) — (1,516 ) Expenditures relating to FCC licenses — — (9 ) — (9 ) Purchases of short-term investments — 67 — — 67 Change in amounts due from/due to consolidated affiliates 17 (2,427 ) — 2,410 — Proceeds from sales of assets and FCC licenses — — 182 — 182 Proceeds from intercompany note advance to consolidated affiliate — 424 — (424 ) — Other, net — 2 (5 ) — (3 ) Net cash provided by (used in) investing activities 17 (1,934 ) (2,537 ) 1,986 (2,468 ) Cash flows from financing activities: Proceeds from debt and financings — — 1,061 — 1,061 Repayments of debt, financing and finance lease obligations — (15 ) (2,904 ) — (2,919 ) Debt financing costs — (2 ) (10 ) — (12 ) Proceeds from issuance of common stock, net (17 ) — — — (17 ) Change in amounts due from/due to consolidated affiliates — — 2,410 (2,410 ) — Repayments of intercompany note advance from parent — — (424 ) 424 — Net cash (used in) provided by financing activities (17 ) (17 ) 133 (1,986 ) (1,887 ) Net (decrease) increase in cash, cash equivalents and restricted cash — (2,137 ) 26 — (2,111 ) Cash, cash equivalents and restricted cash, beginning of period — 6,606 457 — 7,063 Cash, cash equivalents and restricted cash, end of period $ — $ 4,469 $ 483 $ — $ 4,952 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Three Months Ended June 30, 2018 Parent/Issuer Subsidiary Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ (231 ) $ 2,661 $ — $ 2,430 Cash flows from investing activities: Capital expenditures - network and other — — (1,132 ) — (1,132 ) Capital expenditures - leased devices — — (1,817 ) — (1,817 ) Expenditures relating to FCC licenses — — (59 ) — (59 ) Proceeds from sales and maturities of short-term investments — 810 — — 810 Purchases of short-term investments — (2,464 ) — — (2,464 ) Change in amounts due from/due to consolidated affiliates 28 (778 ) — 750 — Proceeds from sales of assets and FCC licenses — — 133 — 133 Proceeds from deferred purchase price from sale of receivables — — 170 — 170 Proceeds from intercompany note advance to consolidated affiliate — 424 — (424 ) — Other, net — — (10 ) — (10 ) Net cash provided by (used in) investing activities 28 (2,008 ) (2,715 ) 326 (4,369 ) Cash flows from financing activities: Proceeds from debt and financings — — 1,370 — 1,370 Repayments of debt, financing and finance lease obligations — (10 ) (1,405 ) — (1,415 ) Debt financing costs (28 ) (9 ) (211 ) — (248 ) Change in amounts due from/due to consolidated affiliates — — 750 (750 ) — Repayments of intercompany note advance from parent — — (424 ) 424 — Other, net — (2 ) — — (2 ) Net cash (used in) provided by financing activities (28 ) (21 ) 80 (326 ) (295 ) Net (decrease) increase in cash, cash equivalents and restricted cash — (2,260 ) 26 — (2,234 ) Cash, cash equivalents and restricted cash, beginning of period — 6,222 437 — 6,659 Cash, cash equivalents and restricted cash, end of period $ — $ 3,962 $ 463 $ — $ 4,425 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Accounts Payable [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following provides the classifications of cash, cash equivalents and restricted cash in the consolidated balance sheets: June 30, March 31, (in millions) Cash and cash equivalents $ 4,869 $ 6,982 Restricted cash in Other assets (1) 83 81 Cash, cash equivalents and restricted cash $ 4,952 $ 7,063 _________________ (1) Restricted cash in Other assets is required as part of our spectrum financing transactions. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of other lease information | The components of lease expense were as follows: Three Months Ended June 30, 2019 (in millions) Operating lease expense $ 530 Finance lease expense: Amortization of right-to-use assets 18 Interest on lease liabilities 1 Total finance lease expense 19 Variable lease expense 15 Total lease expense $ 564 The supplemental components of cash flows were as follows: Three Months Ended June 30, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 2 Operating cash flows from operating leases 576 Financing cash flows from finance leases 1 Total cash paid for amounts included in the measurement of lease liabilities $ 579 Non-cash investing and financing activities: Operating lease right-of-use assets obtained in exchange for lease obligations $ 113 Information relating to the lease term and discount rate excluding the Managed Sites is as follows: Three Months Ended June 30, 2019 Weighted average remaining lease term (years) Operating leases 5.4 Weighted average remaining discount rate Operating leases 6.2 % |
Schedule of operating lease liability, 842 | Maturities of operating lease liabilities as of June 30, 2019 were as follows: (in millions) Remainder of fiscal year ending March 31, 2020 $ 1,580 Fiscal year ending March 31, 2021 2,187 Fiscal year ending March 31, 2022 1,640 Fiscal year ending March 31, 2023 1,133 Fiscal year ending March 31, 2024 770 Thereafter 1,783 Total lease payments 9,093 Less imputed interest (1,500 ) Total $ 7,593 |
Schedule of operating lease liability, 840 | As of March 31, 2019, the minimum estimated amounts due under operating leases and capital leases were as follows: Future Minimum Commitments Operating Leases Capital Leases and Financing Obligations (in millions) Fiscal year ending March 31, 2020 $ 2,277 $ 262 Fiscal year ending March 31, 2021 2,199 150 Fiscal year ending March 31, 2022 1,793 92 Fiscal year ending March 31, 2023 1,358 44 Fiscal year ending March 31, 2024 1,039 12 Thereafter 3,101 — Total lease payments $ 11,767 $ 560 |
Schedule of capital leases | As of March 31, 2019, the minimum estimated amounts due under operating leases and capital leases were as follows: Future Minimum Commitments Operating Leases Capital Leases and Financing Obligations (in millions) Fiscal year ending March 31, 2020 $ 2,277 $ 262 Fiscal year ending March 31, 2021 2,199 150 Fiscal year ending March 31, 2022 1,793 92 Fiscal year ending March 31, 2023 1,358 44 Fiscal year ending March 31, 2024 1,039 12 Thereafter 3,101 — Total lease payments $ 11,767 $ 560 |
Basis of Presentation and Oth_2
Basis of Presentation and Other Information Reclassification of prior period amounts (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Reclassification of prior period amounts [Line Items] | |||||
Revenue, equipment rentals, net | $ 1,359 | $ 1,212 | |||
Depreciation, equipment rentals | 1,029 | 1,136 | |||
Proceeds from Sale and Collection of Receivables | 0 | 170 | |||
Payments to Acquire Equipment on Lease | 1,516 | 1,817 | |||
Net Cash Provided by (Used in) Financing Activities | (1,887) | (295) | |||
Net Cash Provided by (Used in) Investing Activities | (2,468) | $ (4,369) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 4,952 | $ 7,063 | $ 6,659 | $ 4,425 |
Basis of Presentation and Oth_3
Basis of Presentation and Other Information Business combination (Details) | Apr. 29, 2018shares |
Business combination [Line Items] | |
Exchange Ratio | 0.10256 |
Equivalent shares | 9.75 |
Fully diluted shares, percentage owned | 42.00% |
Fully diluted shares, percentage owned by public | 0.31 |
SoftBank [Member] | |
Business combination [Line Items] | |
Fully diluted shares, percentage owned | 27.00% |
New Accounting Pronouncements -
New Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 7,054 | $ 7,358 |
Operating Lease, Liability, Current | 1,680 | 1,813 |
Operating Lease, Liability, Noncurrent | 5,913 | 6,263 |
Finance lease, right-of-use asset | $ 612 | 613 |
Accumulated Deficit [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 104 | |
Liability [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | 108 | |
Property, Plant and Equipment [Member] | Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 4 |
New Accounting Pronouncements_2
New Accounting Pronouncements - Cumulative Effects of Accounting Standards Updates on Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts and notes receivable, net | $ 3,558 | $ 3,554 | |
Device and accessory inventory | 726 | 999 | |
Prepaid expenses and other current assets | 1,436 | $ 1,178 | 1,289 |
Property, Plant and Equipment | 41,709 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (20,420) | (20,512) | (20,539) |
Property, plant and equipment, net | 20,556 | 21,197 | 21,201 |
Operating Lease, Right-of-Use Asset | 7,054 | 7,358 | |
Property, plant and equipment | 1,525 | 1,650 | 1,769 |
Other assets | 1,119 | 1,117 | 1,118 |
Accrued expenses and other current liabilities | 3,048 | 3,419 | 3,597 |
Current portion of long-term debt, financing and capital lease obligations | 2,889 | 4,514 | 4,557 |
Long-term debt, financing and capital lease obligations | 35,073 | 35,299 | 35,366 |
Operating Lease, Liability, Noncurrent | 5,913 | 6,263 | |
Operating Lease, Liability, Current | 1,680 | 1,813 | |
Deferred tax liabilities | 7,563 | 7,602 | 7,556 |
Other liabilities | 2,540 | 2,564 | 3,437 |
(Accumulated deficit) retained earnings | (1,832) | (1,721) | (1,883) |
Accumulated other comprehensive loss | $ (414) | (392) | |
Scenario, Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other current assets | 1,289 | ||
Property, Plant and Equipment | 41,740 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (20,539) | ||
Property, plant and equipment, net | 21,201 | ||
Operating Lease, Right-of-Use Asset | 0 | ||
Property, plant and equipment | 1,769 | ||
Other assets | 1,118 | ||
Accrued expenses and other current liabilities | 3,597 | ||
Current portion of long-term debt, financing and capital lease obligations | 4,557 | ||
Long-term debt, financing and capital lease obligations | 35,366 | ||
Operating Lease, Liability, Noncurrent | 0 | ||
Operating Lease, Liability, Current | 0 | ||
Deferred tax liabilities | 7,556 | ||
Other liabilities | 3,437 | ||
(Accumulated deficit) retained earnings | $ (1,883) | ||
Accounting Standards Update 2014-09 | Restatement Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expenses and other current assets | (111) | ||
Property, Plant and Equipment | (31) | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (27) | ||
Property, plant and equipment, net | (4) | ||
Operating Lease, Right-of-Use Asset | 7,358 | ||
Property, plant and equipment | (119) | ||
Other assets | (1) | ||
Accrued expenses and other current liabilities | (178) | ||
Current portion of long-term debt, financing and capital lease obligations | (43) | ||
Long-term debt, financing and capital lease obligations | (67) | ||
Operating Lease, Liability, Noncurrent | 6,263 | ||
Operating Lease, Liability, Current | 1,813 | ||
Deferred tax liabilities | 46 | ||
Other liabilities | (873) | ||
(Accumulated deficit) retained earnings | $ 162 |
New Accounting Pronouncements_3
New Accounting Pronouncements - Cumulative Effects of Accounting Standards Update on Statement of Comprehensive Income and Balance Sheet (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service revenue | $ 8,142 | $ 8,125 |
Revenue, equipment sales, net | 1,220 | 1,173 |
Revenue, equipment rentals, net | 1,359 | 1,212 |
Revenues | 8,142 | 8,125 |
Cost of equipment sales | 1,341 | 1,270 |
Cost of equipment rentals | 225 | 124 |
Selling, general and administrative | 1,907 | 1,867 |
Severance and exit costs | (27) | |
Depreciation, network and other | 1,120 | 1,023 |
Depreciation, equipment rentals | 1,029 | 1,136 |
Amortization | 118 | 171 |
Other, net | 237 | 42 |
Total costs and expenses | 7,687 | 7,310 |
Operating Income | 455 | 815 |
Total other expense | (591) | (595) |
Loss (income) before income taxes | (136) | 220 |
Income tax benefit | 22 | (47) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (114) | 173 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3 | 3 |
Net Income (Loss) Attributable to Parent | $ (111) | $ 176 |
Basic net (loss) income per common share | $ (0.03) | $ 0.04 |
Diluted net (loss) income per common share | $ (0.03) | $ 0.04 |
Basic weighted average common shares outstanding | 4,087 | 4,010 |
Diluted weighted average common shares outstanding | 4,087 | 4,061 |
Services [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Service revenue | $ 5,563 | $ 5,740 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Short-term Investments | $ 0 | $ 67 |
Equity Securities, FV-NI | $ 1 | |
Commercial Paper, at Carrying Value | $ 67 |
Installment Receivables - Narra
Installment Receivables - Narrative (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Payment term (up to) | 24 months |
Financial Instruments (Estimate
Financial Instruments (Estimated Fair Value of Debt, Financing and Capital Lease Obligations) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current and long-term debt, financing and capital lease obligations, Carrying amount | $ 38,335 | $ 40,193 |
Current and long-term debt and financing obligations, Estimated fair value | 39,875 | 40,809 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current and long-term debt and financing obligations, Estimated fair value | 35,601 | 36,642 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current and long-term debt and financing obligations, Estimated fair value | 198 | 197 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current and long-term debt and financing obligations, Estimated fair value | $ 4,076 | $ 3,970 |
Installment Receivables - Summa
Installment Receivables - Summary of Installment Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Installment receivables, gross | $ 1,332 | $ 1,212 |
Deferred interest | 74 | 71 |
Installment receivables, net of deferred interest | 1,258 | 1,141 |
Allowance for credit losses | 234 | 215 |
Installment receivables, net | 1,024 | 926 |
Accounts and notes receivable, net | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Installment receivables, net | 758 | 679 |
Other assets | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Installment receivables, net | $ 266 | $ 247 |
Installment Receivables - Balan
Installment Receivables - Balance and Aging of Financing Receivables by Credit Category (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | $ 1,332 | $ 1,212 |
Prime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 775 | 720 |
Subprime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 557 | 492 |
Unbilled | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 1,243 | 1,126 |
Unbilled | Prime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 722 | 667 |
Unbilled | Subprime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 521 | 459 |
Billed - current | Billed | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 67 | 65 |
Billed - current | Billed | Prime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 43 | 43 |
Billed - current | Billed | Subprime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 24 | 22 |
Billed - past due | Billed | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 22 | 21 |
Billed - past due | Billed | Prime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | 10 | 10 |
Billed - past due | Billed | Subprime | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Installment receivables, gross | $ 12 | $ 11 |
Installment Receivables - Sched
Installment Receivables - Schedule of Activity in the Deferred Interest Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Mar. 31, 2018 | |
Financing Receivable | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Deferred interest and allowance for credit losses, beginning of period | $ 286 | |
Bad debt expense | 50 | $ 116 |
Write-offs, net of recoveries | (32) | (118) |
Change in deferred interest on short- and long-term installment receivables | 4 | 15 |
Deferred interest and allowance for credit losses, end of period | 308 | 323 |
Balances without adoption of Topic 606 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Change in deferred interest on short- and long-term installment receivables | $ 0 | $ (50) |
Intangible Assets (Indefinite-L
Intangible Assets (Indefinite-Lived Intangible Assets) (Details) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-lived Intangible Assets, Period Start | $ 41,465,000,000 |
Indefinite-lived Intangible Assets, Period End | 41,474,000,000 |
Goodwill, beginning balance | 4,598,000,000 |
Goodwill, Period Increase (Decrease) | 0 |
Goodwill, ending balance | 4,598,000,000 |
Total indefinite-lived intangible assets including FCC licenses, Trademarks, Goodwill, beginning balance | 46,063,000,000 |
Indefinite lived intangible assets period increase decrease | 9,000,000 |
Total indefinite-lived intangible assets including FCC licenses, Trademarks, Goodwill, ending balance | 46,072,000,000 |
Goodwill, Impairment Loss | 2,000,000,000 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 |
FCC Licenses [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-lived Intangible Assets, Period Start | 37,430,000,000 |
Indefinite-lived Intangible Assets, Period Increase (Decrease) | 9,000,000 |
Indefinite-lived Intangible Assets, Period End | 37,439,000,000 |
Trademarks [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-lived Intangible Assets, Period Start | 4,035,000,000 |
Indefinite-lived Intangible Assets, Period Increase (Decrease) | 0 |
Indefinite-lived Intangible Assets, Period End | $ 4,035,000,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Accrued capital expenditures | $ 1,100 | $ 987 | |
Loss on Disposition of Property Plant Equipment | 225 | $ 124 | |
Impairment of Real Estate | 207 | ||
Leased devices [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accrued capital expenditures | 156 | $ 221 | |
Increase (Decrease) in Inventories | 236 | 163 | |
Other, Net [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Loss on Disposition of Property Plant Equipment | $ (225) | $ (124) |
Intangible Assets (Intangible A
Intangible Assets (Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Impairment Loss | $ 2,000 | ||
Gross Carrying Value | 8,029 | $ 8,318 | |
Accumulated Amortization | (6,504) | (6,549) | |
Net Carrying Value | 1,525 | $ 1,650 | 1,769 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 6,563 | 6,563 | |
Accumulated Amortization | (6,139) | (6,029) | |
Net Carrying Value | 424 | 534 | |
Favorable spectrum leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 807 | 763 | |
Accumulated Amortization | (202) | (150) | |
Net Carrying Value | 605 | 613 | |
Favorable tower leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 0 | 335 | |
Accumulated Amortization | 0 | (215) | |
Net Carrying Value | 0 | 120 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 520 | 520 | |
Accumulated Amortization | (93) | (89) | |
Net Carrying Value | 427 | 431 | |
Other Finite Lived Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 139 | 137 | |
Accumulated Amortization | (70) | (66) | |
Net Carrying Value | 69 | 71 | |
Finite Lived Intangible Assets Excluding Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 1,466 | 1,755 | |
Accumulated Amortization | (365) | (520) | |
Net Carrying Value | $ 1,101 | $ 1,235 | |
Minimum | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Minimum | Favorable tower leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | |||
Minimum | Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Minimum | Other Finite Lived Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Maximum | Favorable spectrum leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 23 years | ||
Maximum | Favorable tower leases [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 0 years | ||
Maximum | Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 34 years | ||
Maximum | Other Finite Lived Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years |
Property, Plant and Equipment_3
Property, Plant and Equipment (Components of Property Plant and Equipment) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 41,709 | ||
Less accumulated depreciation | $ (20,420) | (20,512) | $ (20,539) |
Property, plant and equipment, net | 20,556 | $ 21,197 | 21,201 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 107 | 246 | |
Network equipment, site costs and related software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 25,110 | 24,967 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 392 | 856 | |
Non-network internal use software, office equipment, leased devices and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 12,448 | 12,627 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | $ 2,919 | $ 3,044 |
Property, Plant and Equipment_4
Property, Plant and Equipment (Components of Property Plant and Equipment, Specifically Leased Devices) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | $ 41,709 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ (20,420) | (20,512) | $ (20,539) |
Property, plant and equipment, net | 20,556 | $ 21,197 | 21,201 |
Leased devices [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment | 10,770 | 10,972 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (4,346) | (4,360) | |
Property, plant and equipment, net | $ 6,424 | $ 6,612 |
Long-Term Debt, Financing and_3
Long-Term Debt, Financing and Capital Lease Obligations (Schedule of Long-term Debt Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | Nov. 26, 2018 | Feb. 20, 2018 | Feb. 02, 2017 | Oct. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 8,000 | $ 6,000 | |||||
Debt Instrument, Unamortized Premium (Discount), Net | $ (399) | $ (405) | |||||
Current and Long-term Debt, Financing and Capital Lease Obligations | 37,962 | 39,923 | |||||
Current portion of long-term debt, financing and capital lease obligations | 2,889 | $ 4,514 | 4,557 | ||||
Long-term debt, financing and capital lease obligations | 35,073 | $ 35,299 | 35,366 | ||||
Senior Notes [Member] | Sprint Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | ||||||
Long-term Debt, Gross | 12,000 | 12,000 | |||||
Senior Notes [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | 4,780 | 4,780 | |||||
Senior Notes [Member] | Sprint Capital Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | 4,475 | 6,204 | |||||
Guaranteed notes [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | 1,000 | 1,000 | |||||
Secured Debt [Member] | Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | ||||||
Long-term Debt, Gross | 5,906 | 6,125 | |||||
Financing Obligation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 2,837 | 2,607 | |||||
Revolving Credit Facility [Member] | Secured Revolving Bank Credit Facility expires in Feb 2021[Member] [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.69% | ||||||
Line of Credit Facility, Amount Outstanding | $ 0 | 0 | |||||
Secured term loan [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 2,000 | $ 4,000 | |||||
Line of Credit Facility, Amount Outstanding | 5,900 | 5,915 | |||||
Secured term loan [Member] | Secured Revolving Bank Credit Facility expires in Feb 2021[Member] [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | $ 3,900 | ||||||
Secured term loan [Member] | PRWireless HoldCo, LLC Secured Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 7.58% | ||||||
Line of Credit Facility, Amount Outstanding | $ 200 | 198 | |||||
Line of Credit [Member] | Export Development Canada Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | 300 | ||||||
Line of Credit [Member] | Secured Equipment Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Amount Outstanding | 556 | 661 | |||||
Capital Lease Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 538 | ||||||
Financing Obligations, Capital Lease Obligations and Other [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 407 | ||||||
Minimum | Senior Notes [Member] | Sprint Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.13% | ||||||
Minimum | Senior Notes [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||
Minimum | Senior Notes [Member] | Sprint Capital Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | ||||||
Minimum | Guaranteed notes [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||||||
Minimum | Secured Debt [Member] | Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | ||||||
Minimum | Financing Obligation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.58% | ||||||
Minimum | Secured term loan [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.94% | ||||||
Minimum | Line of Credit [Member] | Secured Equipment Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.53% | ||||||
Minimum | Capital Lease Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | ||||||
Maximum | Senior Notes [Member] | Sprint Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.88% | ||||||
Maximum | Senior Notes [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.50% | ||||||
Maximum | Senior Notes [Member] | Sprint Capital Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.75% | ||||||
Maximum | Secured Debt [Member] | Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | ||||||
Maximum | Financing Obligation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.78% | ||||||
Maximum | Secured term loan [Member] | Sprint Nextel Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.44% | ||||||
Maximum | Line of Credit [Member] | Export Development Canada Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.65% | ||||||
Maximum | Line of Credit [Member] | Secured Equipment Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.26% | ||||||
Maximum | Capital Lease Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% |
Long-Term Debt, Financing and_4
Long-Term Debt, Financing and Capital Lease Obligations (Narrative) (Details) | 1 Months Ended | 3 Months Ended | ||||||||||||
Nov. 06, 2018USD ($) | Feb. 28, 2017 | Oct. 31, 2016USD ($) | May 31, 2016USD ($) | Jun. 30, 2019USD ($)siteyears | Jun. 30, 2018USD ($) | Dec. 31, 2019 | Apr. 01, 2019USD ($) | Mar. 31, 2019USD ($)site | Feb. 26, 2019USD ($) | Nov. 26, 2018USD ($) | Oct. 01, 2018USD ($) | Feb. 20, 2018 | Feb. 02, 2017USD ($) | |
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | $ 8,000,000,000 | $ 6,000,000,000 | ||||||||||||
Long-term debt issued by 100% owned subsidiary and is fully and unconditionally guaranteed by the parent | $ 20,200,000,000 | |||||||||||||
Interest Costs Capitalized | 17,000,000 | $ 15,000,000 | ||||||||||||
Cash interest payments | 542,000,000 | $ 602,000,000 | ||||||||||||
Redeemable notes | 28,200,000,000 | |||||||||||||
Principal amount of notes with the right to require the Company to repurchase on change of control | 23,700,000,000 | |||||||||||||
Current portion of long-term debt, financing and capital lease obligations | 2,889,000,000 | $ 4,514,000,000 | $ 4,557,000,000 | |||||||||||
Operating Leases, Future Minimum Payments Due | $ 11,767,000,000 | |||||||||||||
Maximum Funding Limit | $ 4,500,000,000 | |||||||||||||
Receivables Facility, maximum amount available based on receivables sold to investors, percent | 49.00% | |||||||||||||
Receivables Facility, Amount Outstanding | $ 2,800,000,000 | |||||||||||||
Receivables Facility, Amount of Funds Available | 649,000,000 | $ 537,000,000 | ||||||||||||
Receivables Facility, repayments | $ 2,300,000,000 | |||||||||||||
Maximum Funding Limit, increase | 200,000,000 | |||||||||||||
Receivables Facility, Amount Drawn on Facility | 1,000,000,000 | |||||||||||||
Sale Leaseback Transaction, Cumulative Lease Payments | $ 800,000,000 | |||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Amount | 300 | 250 | ||||||||||||
Number of cell sites leased back | site | 1,750 | 3,000 | ||||||||||||
Term in years for cell sites leased back renewal options | years | 20 | |||||||||||||
Payments for (Proceeds from) Businesses and Interest in Affiliates | $ 181,000,000 | |||||||||||||
Ratio Of Total Indebtedness To Adjusted EBITDA | 2.5 | |||||||||||||
Financing Receivable, Net | $ 1,024,000,000 | $ 926,000,000 | ||||||||||||
Installment Lease Receivables, Net Book Value | $ 6,400,000,000 | |||||||||||||
Capital Lease Obligations [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | 538,000,000 | |||||||||||||
Tower financing | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Sale Leaseback Transaction, Net Book Value | 109,000,000 | |||||||||||||
Minimum | Capital Lease Obligations [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | |||||||||||||
Maximum | Capital Lease Obligations [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||||||||||
Spectrum Assets [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Concentration Risk, Percentage | 14.00% | |||||||||||||
Shentel [Member] | Capital Lease Obligations [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | $ 141,000,000 | |||||||||||||
Delcredere / Ducroire (D/D) Secured Equipment Credit Facility [Member] | Line of Credit [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Repayments of Lines of Credit | 20,000,000 | |||||||||||||
Line of Credit Facility, Amount Outstanding | 99,000,000 | |||||||||||||
K-sure Secured Equipment Credit Facility [Member] | Line of Credit [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Repayments of Lines of Credit | 72,000,000 | |||||||||||||
Line of Credit Facility, Amount Outstanding | 378,000,000 | |||||||||||||
Finnvera Secured Equipment Credit Facility [Member] | Line of Credit [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Repayments of Lines of Credit | 13,000,000 | |||||||||||||
Line of Credit Facility, Amount Outstanding | 79,000,000 | |||||||||||||
Export Development Canada Agreement [Member] | Line of Credit [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Line of Credit Facility, Amount Outstanding | 300,000,000 | |||||||||||||
Export Development Canada Agreement [Member] | Tranche three and four [Member] | Line of Credit [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Line of Credit Facility, Amount Outstanding | 300,000,000 | |||||||||||||
Secured Revolving Bank Credit Facility expires in Feb 2021[Member] [Member] | Secured term loan [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Repayments of Lines of Credit | 10,000,000 | |||||||||||||
Line of Credit Facility, Amount Outstanding | 3,900,000,000 | |||||||||||||
Secured Revolving Bank Credit Facility expires in Feb 2021[Member] [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Aggregate principal amount line of credit | $ 2,000,000,000 | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,900,000,000 | |||||||||||||
Line of Credit Facility, Amount Outstanding | 0 | 0 | ||||||||||||
Ratio Of Total Indebtedness To Adjusted EBITDA, Minimum | 3.5 | |||||||||||||
Secured Revolving Bank Credit Facility expires in Feb 2021[Member] [Member] | Letter of Credit [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Letters of Credit Outstanding, Amount | 120,000,000 | |||||||||||||
Sprint Nextel Corporation [Member] | Secured term loan [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | 2,000,000,000 | $ 4,000,000,000 | ||||||||||||
Incremental Term Loan borrowing | $ 900,000,000 | $ 1,100,000,000 | ||||||||||||
Debt Instrument, Term | 7 years | |||||||||||||
Line of Credit Facility, Amount Outstanding | 5,900,000,000 | 5,915,000,000 | ||||||||||||
Sprint Nextel Corporation [Member] | Senior Notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | 4,780,000,000 | 4,780,000,000 | ||||||||||||
Sprint Nextel Corporation [Member] | Guaranteed notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | $ 1,000,000,000 | 1,000,000,000 | ||||||||||||
Sprint Nextel Corporation [Member] | Minimum | Senior Notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||||
Sprint Nextel Corporation [Member] | Minimum | Guaranteed notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||||||||||
Sprint Nextel Corporation [Member] | Maximum | Senior Notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.50% | |||||||||||||
PRWireless HoldCo, LLC Secured Term Loan [Member] | Secured term loan [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Repayments of Lines of Credit | $ 1,000,000 | |||||||||||||
Proceeds from Lines of Credit | 2,000,000 | |||||||||||||
Line of Credit Facility, Amount Outstanding | 200,000,000 | 198,000,000 | ||||||||||||
Spectrum Financing [Member] | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Maximum Borrowing Capacity | $ 7,000,000,000 | |||||||||||||
Debt Instrument, Additional Borrowings Available | 3,900,000,000 | |||||||||||||
Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC [Member] | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | 5,906,000,000 | 6,125,000,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | |||||||||||||
Debt instrument face amount | $ 3,500,000,000 | |||||||||||||
Debt Instrument, Term | 5 years | |||||||||||||
Repayments of Debt | 219,000,000 | |||||||||||||
Secured Debt, Current | $ 875,000,000 | |||||||||||||
Operating Leases, Future Minimum Payments Due | $ 3,500,000,000 | |||||||||||||
Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC [Member] | Minimum | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | |||||||||||||
Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC [Member] | Maximum | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | |||||||||||||
Sprint Financing maturing 2021 [Member] | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | $ 2,000,000,000 | |||||||||||||
Sprint Corporation [Member] | Senior Notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Long-term Debt, Gross | $ 12,000,000,000 | $ 12,000,000,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | |||||||||||||
Sprint Corporation [Member] | Minimum | Senior Notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.13% | |||||||||||||
Sprint Corporation [Member] | Maximum | Senior Notes [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.88% | |||||||||||||
Spectrum Financing maturing 2025 [Member] | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.738% | |||||||||||||
Debt Instrument, Additional Borrowings Available | $ 2,100,000,000 | |||||||||||||
Spectrum Financing maturing 2028 [Member] | Secured Debt [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.152% | |||||||||||||
Debt Instrument, Additional Borrowings Available | $ 1,800,000,000 | |||||||||||||
Wireless Service [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Purchase Commitment Allocation | 22.00% | |||||||||||||
Installment Receivables [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Purchase Commitment Allocation | 78.00% | |||||||||||||
Accounts and notes receivable, net | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Financing Receivable, Net | $ 758,000,000 | 679,000,000 | ||||||||||||
Accounts and notes receivable, net | Wireless Services and Installment Receivables [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Financing Receivable, Net | 2,600,000,000 | |||||||||||||
Other assets | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Financing Receivable, Net | 266,000,000 | 247,000,000 | ||||||||||||
Other assets | Special purpose entity [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Financing Receivable, Net | 248,000,000 | |||||||||||||
Interest Rate Swap [Member] | Sprint Nextel Corporation [Member] | Secured term loan [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Derivative, Notional Amount | $ 2,000,000,000 | |||||||||||||
Derivative Liability, Fair Value, Gross Liability | $ 15,000,000 | $ 13,000,000 | ||||||||||||
Derivative, Term of Contract | 5 years | |||||||||||||
Scenario, Forecast [Member] | Secured Revolving Bank Credit Facility expires in Feb 2021[Member] [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Ratio Of Total Indebtedness To Adjusted EBITDA | 3.75 | |||||||||||||
London Interbank Offered Rate (LIBOR) [Member] | PRWireless HoldCo, LLC Secured Term Loan [Member] | Secured term loan [Member] | ||||||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Narrative (Details) $ in Millions | 3 Months Ended | |||
Jun. 30, 2019USD ($)segments | Jun. 30, 2018USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of Reportable Segments | segments | 2 | |||
Total revenue | $ 8,142 | $ 8,125 | ||
Revenue, Remaining Performance Obligation, Amount | 8,628 | |||
Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,220 | $ 1,173 | ||
Scenario, Forecast [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 687 | $ 2,300 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Schedule of Disaggregated Reported Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 8,142 | $ 8,125 |
Total service revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,563 | 5,740 |
Postpaid | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,199 | 4,188 |
Prepaid | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 843 | 982 |
Wholesale, affiliate and other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 285 | 294 |
Wireline | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 236 | 276 |
Equipment sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,220 | 1,173 |
Equipment rentals | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,359 | $ 1,212 |
Revenues from Contracts with _5
Revenues from Contracts with Customers Revenues from Contracts with Customers - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Asset, Net | $ 997 | $ 928 |
Billed trade receivables | 2,659 | 2,690 |
Unbilled trade receivables | 1,031 | 945 |
Contract with Customer, Liability | 995 | 1,009 |
Sales commissions, opening balance | 1,559 | |
Sales commissions, additions | 289 | |
Capitalized Contract Cost, Amortization | (217) | |
Costs to acquire a customer contract | $ 1,631 | $ 1,559 |
Revenues from Contracts with _6
Revenues from Contracts with Customers - Schdule of Contract Liability Balance (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Amounts included in the beginning of period contract liability balance | $ 886 | $ 867,000,000 |
Revenues from Contracts with _7
Revenues from Contracts with Customers - Schedule of Remaining Performance Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 8,628 | ||
Scenario, Forecast [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 687 | $ 2,300 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 6,383 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 2,224 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 21 |
Severance and Exit Costs (Sched
Severance and Exit Costs (Schedule of Severance and Exit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | $ 47 | $ 42 |
Supplemental Unemployment Benefits, Severance Benefits | 3 | 6 |
Restructuring Charges | 27 | |
Severance Costs | 0 | |
Payments for Postemployment Benefits | (3) | |
Restructuring Reserve, Settled with Cash | (22) | |
Lease [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 20 | 131 |
Restructuring reserved settled with cash and other adjustments | 111 | |
Access [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 44 | $ 36 |
Restructuring reserved settled with cash and other adjustments | 19 | |
Wireless [Member] | Lease [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | 0 | |
Severance and exit costs [Member] | Access [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Charges | $ 27 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Income tax benefit | $ (22) | $ 47 | |
Effective Income Tax Rate Reconciliation, Percent | 16.00% | 21.00% | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 14 | $ (6) | |
Cumulative effect of changes in corporate state income tax laws that were recognized within State income taxes, net of federal income tax effect | 0 | (24) | |
Tax benefit from organizational restructuring | 0 | (13) | |
Unrecognized tax benefit | 244 | $ 242 | |
Income Taxes Paid, Net | $ 27 | $ 39 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Income tax benefit at the federal statutory rate | $ 29 | $ (46) |
State income taxes, net of federal income tax effect | 5 | (15) |
Cumulative effect of changes in corporate state income tax laws that were recognized within State income taxes, net of federal income tax effect | 0 | 24 |
Tax benefit from organizational restructuring | 0 | 13 |
Credit for increasing research activities | 4 | 0 |
Change in federal and state valuation allowance | (14) | 6 |
Other, net | (2) | (3) |
Income tax benefit (expense) | $ 22 | $ (47) |
Effective income tax rate | (16.00%) | (21.00%) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2019USD ($)claim | Mar. 31, 2019USD ($) | |
Commitments and Contingencies [Line Items] | ||
Minimum spectrum reconfiguration obligations | $ | $ 2,800 | |
Total Payments directly attributable to performance under Report and Order | $ | 3,600 | |
Payments directly attributable to performance under report and order, net change related to FCC licenses | $ | 2 | |
Unsecured Revolving Credit Facility expires in 2018 [Member] | Letter Of Credit Required By The FCCs Report And Order [Member] | ||
Commitments and Contingencies [Line Items] | ||
Initial Letter of Credit Requirement | $ | $ 2,500 | |
Letters of Credit Outstanding, Amount | $ | $ 78 | |
Derivative Shareholder Suits [Member] | ||
Commitments and Contingencies [Line Items] | ||
Loss Contingency, New Claims Filed, Number | claim | 8 | |
Louisiana Municipal Police Employees Retirement System [Member] | ||
Commitments and Contingencies [Line Items] | ||
Loss Contingency, Claims Dismissed, Number | claim | 1 | |
Johnson County Kansas [Member] | ||
Commitments and Contingencies [Line Items] | ||
Loss Contingency, New Claims Filed, Number | claim | 2 | |
Loss Contingency, Claims Dismissed, Number | claim | 1 | |
Federal Court of Kansas [Member] | ||
Commitments and Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | claim | 5 |
Per Share Data (Narrative) (Det
Per Share Data (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 10, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (114) | $ 173 | |
Net Income (Loss) Attributable to Noncontrolling Interest | (3) | (3) | |
Net Income (Loss) Attributable to Parent | $ (111) | $ 176 | |
Basic weighted average common shares outstanding | 4,087 | 4,010 | |
Diluted weighted average common shares outstanding | 4,087 | 4,061 | |
Basic net (loss) income per common share | $ (0.03) | $ 0.04 | |
Diluted net (loss) income per common share | $ (0.03) | $ 0.04 | |
Options and RSUs [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9 | ||
Options and Restricted Stock Units [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Number of shares that had no effect on computation of dilutive weighted average number of shares outstanding | 0 | 47 | |
Warrant [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Number of shares that had no effect on computation of dilutive weighted average number of shares outstanding | 0 | 4 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 55 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.25 | ||
Proceeds from Warrant Exercises | $ 287 | ||
Warrant [Member] | SoftBank [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Number of shares that had no effect on computation of dilutive weighted average number of shares outstanding | 2 | ||
Employee Stock Option [Member] | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 90 |
Segments (Narrative) (Details)
Segments (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2019segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segments (Statement of Operatio
Segments (Statement of Operations Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Impairments | $ (210) | $ 0 |
Segment Reporting Information, Total Net Operating Revenues | (8,142) | (8,125) |
Revenues | 8,142 | 8,125 |
Segment Operating Expenses | 5,100 | 4,845 |
Segment Reporting Information Operating Income or Loss | 3,042 | 3,280 |
Depreciation, network and other | 1,120 | 1,023 |
Depreciation, equipment rentals | 1,029 | 1,136 |
Amortization | 118 | 171 |
Merger costs | 83 | 93 |
Other Operating Expenses Net | (237) | (42) |
Selling, general and administrative | 1,907 | 1,867 |
Operating Income | 455 | 815 |
Interest Expense | 619 | 637 |
Other income, net | 28 | 42 |
Loss (income) before income taxes | (136) | 220 |
Payments to Acquire Property, Plant and Equipment Inclusive of Equipment on Lease | 2,705 | 2,949 |
Severance and exit costs | (27) | |
Wireless [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,901 | 7,845 |
Payments to Acquire Property, Plant and Equipment Inclusive of Equipment on Lease | 2,543 | 2,836 |
Gain (Loss) on Contract Termination | (34) | |
Wireless [Member] | Wireless Excluding Hurricane and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | (7,901) | (7,845) |
Segment Operating Expenses | (4,864) | 4,527 |
Segment Reporting Information Operating Income or Loss | 3,037 | 3,318 |
Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | (236) | (276) |
Revenues | 307 | 338 |
Segment Operating Expenses | (307) | 380 |
Segment Reporting Information Operating Income or Loss | 0 | (42) |
Payments to Acquire Property, Plant and Equipment Inclusive of Equipment on Lease | 28 | 51 |
Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | (5) | (4) |
Revenues | (66) | (58) |
Segment Operating Expenses | 71 | (62) |
Segment Reporting Information Operating Income or Loss | 5 | 4 |
Payments to Acquire Property, Plant and Equipment Inclusive of Equipment on Lease | 134 | 62 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Intersegment Eliminations [Member] | Wireless [Member] | Wireless Excluding Hurricane and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Intersegment Eliminations [Member] | Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 71 | (62) |
Intersegment Eliminations [Member] | Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ (71) | (62) |
Lease and severance [Member] | ||
Segment Reporting Information [Line Items] | ||
Severance and exit costs | $ (8) |
Segments (Operating Revenues by
Segments (Operating Revenues by Service and Products) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 8,142 | $ 8,125 |
Segment Reporting Information, Total Net Operating Revenues | 8,142 | 8,125 |
Wireless [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,901 | 7,845 |
Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 307 | 338 |
Segment Reporting Information, Total Net Operating Revenues | 236 | 276 |
Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | (66) | (58) |
Segment Reporting Information, Total Net Operating Revenues | 5 | 4 |
Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | 5,260 | 5,422 |
Services [Member] | Wireless [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,042 | 5,170 |
Services [Member] | Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 289 | 314 |
Services [Member] | Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | (71) | (62) |
Wireless Equipment Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | 1,220 | 1,173 |
Wireless Equipment Sales [Member] | Wireless [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,220 | 1,173 |
Wireless Equipment Sales [Member] | Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Wireless Equipment Sales [Member] | Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Wireless Equipment Rentals [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | 1,359 | 1,212 |
Wireless Equipment Rentals [Member] | Wireless [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,359 | 1,212 |
Wireless Equipment Rentals [Member] | Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Wireless Equipment Rentals [Member] | Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Other Products or Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Reporting Information, Total Net Operating Revenues | 303 | 318 |
Other Products or Services [Member] | Wireless [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 280 | 290 |
Other Products or Services [Member] | Wireline [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 18 | 24 |
Other Products or Services [Member] | Corporate, Other And Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 5 | $ 4 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||
Accounts Payable, Related Parties | $ 108 | |
Brightstar [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Expenses from Transactions with Related Party | 13 | $ 17 |
Related Party Transaction, Other Revenues from Transactions with Related Party | 42 | $ 49 |
Brightstar [Member] | Line of Credit [Member] | ||
Related Party Transaction [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700 |
Related Party Transactions (Bri
Related Party Transactions (Brightstar) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Total revenue | $ 8,142 | $ 8,125 | |
Cost of equipment sales | 1,341 | 1,270 | |
Brightstar [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Other Revenues from Transactions with Related Party | 42 | 49 | |
Accounts Receivable, Related Parties | 175 | $ 187 | |
Accounts Payable, Related Parties, Current | 93 | $ 109 | |
Total revenue | 344 | 413 | |
Cost of equipment sales | $ 361 | $ 432 |
Guarantor Financial Informati_3
Guarantor Financial Information (Details) $ in Millions | Jun. 30, 2019USD ($) | Feb. 20, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 24, 2015USD ($) | Dec. 12, 2013USD ($) | Sep. 11, 2013USD ($) |
Condensed Financial Statements, Captions [Line Items] | ||||||
Ratio Of Total Indebtedness To Adjusted EBITDA | 2.5 | |||||
Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Other Additional Capital | $ 37 | $ 1,500 | ||||
Notes Payable, Related Parties | $ 24,000 | |||||
Sprint Communications Inc. Guaranteed Notes due 2021 [Member] | Senior Notes [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument face amount | $ 2,250 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |||||
Sprint Corporation 7.875% [Member] | Senior Notes [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument face amount | $ 4,250 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | |||||
Sprint Corporation 7.125% [Member] [Member] | Senior Notes [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument face amount | $ 2,500 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | |||||
Sprint Corporation 7.625% [Member] | Senior Notes [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt instrument face amount | $ 1,500 | $ 1,500 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | |||||
Sprint Corporation [Member] | Senior Notes [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% |
Guarantor Financial Informati_4
Guarantor Financial Information (CONDENSED CONSOLIDATING BALANCE SHEET) (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Operating Lease, Liability, Current | $ 1,680 | $ 1,813 | ||||
Depreciation, network and other | 1,120 | $ 1,023 | ||||
Current Assets | ||||||
Cash and Cash Equivalents | 4,869 | $ 6,982 | $ 6,659 | $ 4,425 | ||
Short-term Investments | 0 | 67 | ||||
Accounts and notes receivable, net | 3,558 | 3,554 | ||||
Due from Affiliate, Current | 0 | 0 | ||||
Device and accessory inventory | 726 | 999 | ||||
Prepaid expenses and other current assets | 1,436 | 1,178 | 1,289 | |||
Total current assets | 10,589 | 12,891 | ||||
Investments in Subsidiaries | 0 | 0 | ||||
Property, plant and equipment, net | 20,556 | 21,197 | 21,201 | |||
Costs to acquire a customer contract | 1,631 | 1,559 | ||||
Operating Lease, Right-of-Use Asset | 7,054 | 7,358 | ||||
Due from Consolidated Affiliate | 0 | 0 | ||||
Due from Affiliate, Noncurrent | 0 | 0 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | 4,598 | 4,598 | ||||
FCC licenses and other | 41,474 | 41,465 | ||||
Property, plant and equipment | 1,525 | 1,650 | 1,769 | |||
Other assets | 1,119 | 1,117 | 1,118 | |||
Total assets | 88,546 | 84,601 | ||||
Current Liabilities | ||||||
Accounts Payable, Current | 3,672 | 3,961 | ||||
Accrued expenses and other current liabilities | 3,048 | 3,419 | 3,597 | |||
Current portion of long-term debt, financing and capital lease obligations | 2,889 | 4,514 | 4,557 | |||
Due to Affiliate, Current | 0 | 0 | ||||
Total current liabilities | 11,289 | 12,115 | ||||
Long-term debt, financing and capital lease obligations | 35,073 | 35,299 | 35,366 | |||
Operating Lease, Liability, Noncurrent | 5,913 | 6,263 | ||||
Note due to consolidated affiliate | 0 | 0 | ||||
Deferred tax liabilities | 7,563 | 7,602 | 7,556 | |||
Other liabilities | 2,540 | $ 2,564 | 3,437 | |||
Due to affiliate | 0 | 0 | ||||
Total liabilities | 62,378 | 58,474 | ||||
Commitments and contingencies | ||||||
Total stockholders' equity | 26,116 | 26,072 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 52 | 55 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 26,168 | 27,945 | 26,127 | 26,419 | ||
Liabilities and Equity | 88,546 | 84,601 | ||||
Depreciation, equipment rentals | 1,029 | 1,136 | ||||
Consolidation, Eliminations [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Operating Lease, Liability, Current | 0 | |||||
Depreciation, network and other | 0 | 0 | ||||
Current Assets | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 | ||
Short-term Investments | 0 | |||||
Accounts and notes receivable, net | (706) | (329) | ||||
Due from Affiliate, Current | (424) | (424) | ||||
Device and accessory inventory | 0 | 0 | ||||
Prepaid expenses and other current assets | 0 | 0 | ||||
Total current assets | (1,130) | (753) | ||||
Investments in Subsidiaries | (43,228) | (43,148) | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Costs to acquire a customer contract | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | |||||
Due from Consolidated Affiliate | (5,190) | (2,706) | ||||
Due from Affiliate, Noncurrent | (35,032) | (35,450) | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | 0 | 0 | ||||
FCC licenses and other | 0 | 0 | ||||
Property, plant and equipment | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | (84,580) | (82,057) | ||||
Current Liabilities | ||||||
Accounts Payable, Current | 0 | 0 | ||||
Accrued expenses and other current liabilities | (706) | (329) | ||||
Current portion of long-term debt, financing and capital lease obligations | 0 | 0 | ||||
Due to Affiliate, Current | (424) | (424) | ||||
Total current liabilities | (1,130) | (753) | ||||
Long-term debt, financing and capital lease obligations | 0 | 0 | ||||
Operating Lease, Liability, Noncurrent | 0 | |||||
Note due to consolidated affiliate | (35,032) | (35,450) | ||||
Deferred tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Due to affiliate | (5,190) | (2,706) | ||||
Total liabilities | (41,352) | (38,909) | ||||
Commitments and contingencies | ||||||
Total stockholders' equity | (43,228) | (43,148) | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (43,228) | (43,148) | ||||
Liabilities and Equity | (84,580) | (82,057) | ||||
Depreciation, equipment rentals | 0 | 0 | ||||
Parent Company [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Operating Lease, Liability, Current | 0 | |||||
Depreciation, network and other | 0 | 0 | ||||
Current Assets | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 | ||
Short-term Investments | 0 | |||||
Accounts and notes receivable, net | 233 | 96 | ||||
Due from Affiliate, Current | 0 | 0 | ||||
Device and accessory inventory | 0 | 0 | ||||
Prepaid expenses and other current assets | 0 | 0 | ||||
Total current assets | 233 | 96 | ||||
Investments in Subsidiaries | 25,832 | 25,785 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Costs to acquire a customer contract | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | |||||
Due from Consolidated Affiliate | 290 | 288 | ||||
Due from Affiliate, Noncurrent | 11,889 | 11,883 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | 0 | 0 | ||||
FCC licenses and other | 0 | 0 | ||||
Property, plant and equipment | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | 38,244 | 38,052 | ||||
Current Liabilities | ||||||
Accounts Payable, Current | 0 | 0 | ||||
Accrued expenses and other current liabilities | 239 | 97 | ||||
Current portion of long-term debt, financing and capital lease obligations | 0 | 0 | ||||
Due to Affiliate, Current | 0 | 0 | ||||
Total current liabilities | 239 | 97 | ||||
Long-term debt, financing and capital lease obligations | 11,889 | 11,883 | ||||
Operating Lease, Liability, Noncurrent | 0 | |||||
Note due to consolidated affiliate | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Due to affiliate | 0 | 0 | ||||
Total liabilities | 12,128 | 11,980 | ||||
Commitments and contingencies | ||||||
Total stockholders' equity | 26,116 | 26,072 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 26,116 | 26,072 | ||||
Liabilities and Equity | 38,244 | 38,052 | ||||
Depreciation, equipment rentals | 0 | 0 | ||||
Guarantor Subsidiaries [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Operating Lease, Liability, Current | 0 | |||||
Depreciation, network and other | 0 | 0 | ||||
Current Assets | ||||||
Cash and Cash Equivalents | 4,469 | 6,605 | 6,222 | 3,962 | ||
Short-term Investments | 67 | |||||
Accounts and notes receivable, net | 473 | 233 | ||||
Due from Affiliate, Current | 424 | 424 | ||||
Device and accessory inventory | 0 | 0 | ||||
Prepaid expenses and other current assets | 17 | 9 | ||||
Total current assets | 5,383 | 7,338 | ||||
Investments in Subsidiaries | 17,396 | 17,363 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Costs to acquire a customer contract | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | |||||
Due from Consolidated Affiliate | 4,900 | 2,418 | ||||
Due from Affiliate, Noncurrent | 23,143 | 23,567 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | 0 | 0 | ||||
FCC licenses and other | 0 | 0 | ||||
Property, plant and equipment | 0 | 0 | ||||
Other assets | 40 | 52 | ||||
Total assets | 50,862 | 50,738 | ||||
Current Liabilities | ||||||
Accounts Payable, Current | 0 | 0 | ||||
Accrued expenses and other current liabilities | 348 | 230 | ||||
Current portion of long-term debt, financing and capital lease obligations | 1,369 | 1,373 | ||||
Due to Affiliate, Current | 0 | 0 | ||||
Total current liabilities | 1,717 | 1,603 | ||||
Long-term debt, financing and capital lease obligations | 10,636 | 10,660 | ||||
Operating Lease, Liability, Noncurrent | 0 | |||||
Note due to consolidated affiliate | 11,889 | 11,883 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Other liabilities | 788 | 807 | ||||
Due to affiliate | 0 | 0 | ||||
Total liabilities | 25,030 | 24,953 | ||||
Commitments and contingencies | ||||||
Total stockholders' equity | 25,832 | 25,785 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 0 | 0 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 25,832 | 25,785 | ||||
Liabilities and Equity | 50,862 | 50,738 | ||||
Depreciation, equipment rentals | 0 | 0 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Operating Lease, Liability, Current | 1,680 | |||||
Depreciation, network and other | 1,120 | 1,023 | ||||
Other Additional Capital | 37 | 1,500 | ||||
Current Assets | ||||||
Cash and Cash Equivalents | 400 | 377 | $ 437 | $ 463 | ||
Short-term Investments | 0 | |||||
Accounts and notes receivable, net | 3,558 | 3,554 | ||||
Due from Affiliate, Current | 0 | 0 | ||||
Device and accessory inventory | 726 | 999 | ||||
Prepaid expenses and other current assets | 1,419 | 1,280 | ||||
Total current assets | 6,103 | 6,210 | ||||
Investments in Subsidiaries | 0 | 0 | ||||
Property, plant and equipment, net | 20,556 | 21,201 | ||||
Costs to acquire a customer contract | 1,631 | 1,559 | ||||
Operating Lease, Right-of-Use Asset | 7,054 | |||||
Due from Consolidated Affiliate | 0 | 0 | ||||
Due from Affiliate, Noncurrent | 0 | 0 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | 4,598 | 4,598 | ||||
FCC licenses and other | 41,474 | 41,465 | ||||
Property, plant and equipment | 1,525 | 1,769 | ||||
Other assets | 1,079 | 1,066 | ||||
Total assets | 84,020 | 77,868 | ||||
Current Liabilities | ||||||
Accounts Payable, Current | 3,672 | 3,961 | ||||
Accrued expenses and other current liabilities | 3,167 | 3,599 | ||||
Current portion of long-term debt, financing and capital lease obligations | 1,520 | 3,184 | ||||
Due to Affiliate, Current | 424 | 424 | ||||
Total current liabilities | 10,463 | 11,168 | ||||
Long-term debt, financing and capital lease obligations | 12,548 | 12,823 | ||||
Operating Lease, Liability, Noncurrent | 5,913 | |||||
Note due to consolidated affiliate | 23,143 | 23,567 | ||||
Deferred tax liabilities | 7,563 | 7,556 | ||||
Other liabilities | 1,752 | 2,630 | ||||
Due to affiliate | 5,190 | 2,706 | ||||
Total liabilities | 66,572 | 60,450 | ||||
Commitments and contingencies | ||||||
Total stockholders' equity | 17,396 | 17,363 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 52 | 55 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 17,448 | 17,418 | ||||
Liabilities and Equity | 84,020 | $ 77,868 | ||||
Depreciation, equipment rentals | $ 1,029 | $ 1,136 |
Guarantor Financial Informati_5
Guarantor Financial Information (CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Net operating revenues | $ 8,142 | $ 8,125 |
Service revenue | 8,142 | 8,125 |
Revenue, equipment sales, net | 1,220 | 1,173 |
Revenue, equipment rentals, net | 1,359 | 1,212 |
Cost of Services (exclusive of depreciation and amortization included below) | 1,710 | 1,677 |
Cost of equipment sales | 1,341 | 1,270 |
Cost of equipment rentals | 225 | 124 |
Net operating expenses | ||
Selling, general and administrative | 1,907 | 1,867 |
Severance and exit costs | (27) | |
Depreciation, network and other | 1,120 | 1,023 |
Depreciation, equipment rentals | 1,029 | 1,136 |
Amortization | 118 | 171 |
Other, net | 237 | 42 |
Total costs and expenses | 7,687 | 7,310 |
Operating Income | 455 | 815 |
Other (expense) income | ||
Interest Income | 30 | 42 |
Interest Expense | (619) | (637) |
(Losses) earnings of Subsidiaries | 0 | 0 |
Other nonoperating income (expense), excluding interest income | (2) | 0 |
Nonoperating Expense | (591) | (595) |
Loss (income) before income taxes | (136) | 220 |
Income tax benefit | 22 | (47) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (114) | 173 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3 | 3 |
Net Income (Loss) Attributable to Parent | (111) | 176 |
Other Comprehensive Income (Loss), Net of Tax | (22) | (4) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (136) | 169 |
Consolidation, Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net operating revenues | 0 | 0 |
Revenue, equipment sales, net | 0 | 0 |
Revenue, equipment rentals, net | 0 | 0 |
Cost of Services (exclusive of depreciation and amortization included below) | 0 | 0 |
Cost of equipment sales | 0 | 0 |
Cost of equipment rentals | 0 | 0 |
Net operating expenses | ||
Selling, general and administrative | 0 | 0 |
Depreciation, network and other | 0 | 0 |
Depreciation, equipment rentals | 0 | 0 |
Amortization | 0 | 0 |
Other, net | 0 | 0 |
Total costs and expenses | 0 | 0 |
Operating Income | 0 | 0 |
Other (expense) income | ||
Interest Income | (863) | (733) |
Interest Expense | 863 | 733 |
(Losses) earnings of Subsidiaries | 197 | (378) |
Other nonoperating income (expense), excluding interest income | 0 | 0 |
Nonoperating Expense | 197 | (378) |
Loss (income) before income taxes | 197 | (378) |
Income tax benefit | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 197 | (378) |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | 197 | (378) |
Other Comprehensive Income (Loss), Net of Tax | 22 | 17 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 219 | (361) |
Parent Company [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net operating revenues | 0 | 0 |
Revenue, equipment sales, net | 0 | 0 |
Revenue, equipment rentals, net | 0 | 0 |
Cost of Services (exclusive of depreciation and amortization included below) | 0 | 0 |
Cost of equipment sales | 0 | 0 |
Cost of equipment rentals | 0 | 0 |
Net operating expenses | ||
Selling, general and administrative | 0 | 0 |
Depreciation, network and other | 0 | 0 |
Depreciation, equipment rentals | 0 | 0 |
Amortization | 0 | 0 |
Other, net | 0 | 0 |
Total costs and expenses | 0 | 0 |
Operating Income | 0 | 0 |
Other (expense) income | ||
Interest Income | 226 | 226 |
Interest Expense | (226) | (226) |
(Losses) earnings of Subsidiaries | (111) | 176 |
Other nonoperating income (expense), excluding interest income | 0 | 0 |
Nonoperating Expense | (111) | 176 |
Loss (income) before income taxes | (111) | 176 |
Income tax benefit | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (111) | 176 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | (111) | 176 |
Other Comprehensive Income (Loss), Net of Tax | (22) | (4) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (133) | 172 |
Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net operating revenues | 0 | 0 |
Revenue, equipment sales, net | 0 | 0 |
Revenue, equipment rentals, net | 0 | 0 |
Cost of Services (exclusive of depreciation and amortization included below) | 0 | 0 |
Cost of equipment sales | 0 | 0 |
Cost of equipment rentals | 0 | 0 |
Net operating expenses | ||
Selling, general and administrative | 0 | 0 |
Depreciation, network and other | 0 | 0 |
Depreciation, equipment rentals | 0 | 0 |
Amortization | 0 | 0 |
Other, net | 0 | 0 |
Total costs and expenses | 0 | 0 |
Operating Income | 0 | 0 |
Other (expense) income | ||
Interest Income | 526 | 547 |
Interest Expense | (550) | (571) |
(Losses) earnings of Subsidiaries | (86) | 202 |
Other nonoperating income (expense), excluding interest income | (1) | (2) |
Nonoperating Expense | (111) | 176 |
Loss (income) before income taxes | (111) | 176 |
Income tax benefit | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (111) | 176 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | (111) | 176 |
Other Comprehensive Income (Loss), Net of Tax | (22) | (4) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (133) | 172 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net operating revenues | 8,142 | 8,125 |
Revenue, equipment sales, net | 1,220 | 1,173 |
Revenue, equipment rentals, net | 1,359 | 1,212 |
Cost of Services (exclusive of depreciation and amortization included below) | 1,710 | 1,677 |
Cost of equipment sales | 1,341 | 1,270 |
Cost of equipment rentals | 225 | 124 |
Net operating expenses | ||
Selling, general and administrative | 1,907 | 1,867 |
Depreciation, network and other | 1,120 | 1,023 |
Depreciation, equipment rentals | 1,029 | 1,136 |
Amortization | 118 | 171 |
Other, net | 237 | 42 |
Total costs and expenses | 7,687 | 7,310 |
Operating Income | 455 | 815 |
Other (expense) income | ||
Interest Income | 141 | 2 |
Interest Expense | (706) | (573) |
(Losses) earnings of Subsidiaries | 0 | 0 |
Other nonoperating income (expense), excluding interest income | (1) | 2 |
Nonoperating Expense | (566) | (569) |
Loss (income) before income taxes | (111) | 246 |
Income tax benefit | 22 | (47) |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (89) | 199 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3 | 3 |
Net Income (Loss) Attributable to Parent | (86) | 202 |
Other Comprehensive Income (Loss), Net of Tax | 0 | (13) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (89) | 186 |
Services [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Service revenue | 5,563 | 5,740 |
Services [Member] | Consolidation, Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Service revenue | 0 | 0 |
Services [Member] | Parent Company [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Service revenue | 0 | 0 |
Services [Member] | Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Service revenue | 0 | 0 |
Services [Member] | Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Service revenue | $ 5,563 | $ 5,740 |
Guarantor Financial Informati_6
Guarantor Financial Information (CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||||
Net Cash Provided by Operating Activities | $ 2,244 | $ 2,430 | |||
Cash flows from investing activities | |||||
Capital expenditures - network and other | (1,189) | (1,132) | |||
Capital expenditures - leased devices | (1,516) | (1,817) | |||
Expenditures relating to FCC licenses | (9) | (59) | |||
Proceeds from sales and maturities of short-term investments | 0 | 810 | |||
Payments to Acquire Short-term Investments | 67 | 2,464 | |||
Increase (decrease) due from consolidated affiliate from investing activities | 0 | 0 | |||
Proceeds from sales of assets and FCC Licenses | 182 | 133 | |||
Proceeds from intercompany note advance to consolidated affiliate | 0 | ||||
Proceeds from Sale and Collection of Receivables | 0 | 170 | |||
Payments for (Proceeds from) Other Investing Activities | (3) | (10) | |||
Net Cash Used in Investing Activities | (2,468) | (4,369) | |||
Cash flows from financing activities | |||||
Proceeds from debt and financings | 1,061 | 1,370 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (2,919) | (1,415) | |||
Debt financing costs | (12) | (248) | |||
Increase (decrease) due from/to consolidated affiliates from financing activities | 0 | 0 | |||
Repayments of intercompany note advance from parent | 0 | 0 | |||
Other, net | 0 | (2) | |||
Net cash provided by (used in) financing activities | (1,887) | (295) | |||
Cash and Cash Equivalents, Period Increase (Decrease) | (2,234) | ||||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, Period Increase (Decrease) | (2,111) | (2,234) | |||
Cash and cash equivalents, end of period | 4,869 | ||||
Proceeds from Issuance of Common Stock | (17) | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,952 | $ 7,063 | $ 6,659 | $ 4,425 | |
Proceeds from Related Party Debt | 0 | ||||
Parent Company [Member] | |||||
Cash flows from operating activities | |||||
Net Cash Provided by Operating Activities | 0 | 0 | |||
Cash flows from investing activities | |||||
Capital expenditures - network and other | 0 | 0 | |||
Capital expenditures - leased devices | 0 | 0 | |||
Expenditures relating to FCC licenses | 0 | 0 | |||
Proceeds from sales and maturities of short-term investments | 0 | ||||
Payments to Acquire Short-term Investments | 0 | 0 | |||
Increase (decrease) due from consolidated affiliate from investing activities | 17 | 28 | |||
Proceeds from sales of assets and FCC Licenses | 0 | 0 | |||
Proceeds from intercompany note advance to consolidated affiliate | 0 | ||||
Proceeds from Sale and Collection of Receivables | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | |||
Net Cash Used in Investing Activities | 17 | 28 | |||
Cash flows from financing activities | |||||
Proceeds from debt and financings | 0 | 0 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 0 | 0 | |||
Debt financing costs | 0 | (28) | |||
Increase (decrease) due from/to consolidated affiliates from financing activities | 0 | 0 | |||
Repayments of intercompany note advance from parent | 0 | 0 | |||
Other, net | 0 | ||||
Net cash provided by (used in) financing activities | (17) | (28) | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | ||||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, Period Increase (Decrease) | 0 | ||||
Cash and cash equivalents, end of period | 0 | ||||
Proceeds from Issuance of Common Stock | (17) | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | |||
Proceeds from Related Party Debt | 0 | ||||
Guarantor Subsidiaries [Member] | |||||
Cash flows from operating activities | |||||
Net Cash Provided by Operating Activities | (186) | (231) | |||
Cash flows from investing activities | |||||
Capital expenditures - network and other | 0 | 0 | |||
Capital expenditures - leased devices | 0 | 0 | |||
Expenditures relating to FCC licenses | 0 | 0 | |||
Proceeds from sales and maturities of short-term investments | 810 | ||||
Payments to Acquire Short-term Investments | 67 | 2,464 | |||
Increase (decrease) due from consolidated affiliate from investing activities | (2,427) | (778) | |||
Proceeds from sales of assets and FCC Licenses | 0 | 0 | |||
Proceeds from intercompany note advance to consolidated affiliate | 424 | ||||
Proceeds from Sale and Collection of Receivables | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | 2 | 0 | |||
Net Cash Used in Investing Activities | (1,934) | (2,008) | |||
Cash flows from financing activities | |||||
Proceeds from debt and financings | 0 | 0 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (15) | (10) | |||
Debt financing costs | (2) | (9) | |||
Increase (decrease) due from/to consolidated affiliates from financing activities | 0 | 0 | |||
Repayments of intercompany note advance from parent | 0 | 0 | |||
Other, net | (2) | ||||
Net cash provided by (used in) financing activities | (17) | (21) | |||
Cash and Cash Equivalents, Period Increase (Decrease) | (2,260) | ||||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, Period Increase (Decrease) | (2,137) | ||||
Cash and cash equivalents, end of period | 4,469 | ||||
Proceeds from Issuance of Common Stock | 0 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,469 | 6,606 | |||
Proceeds from Related Party Debt | 424 | ||||
Non-Guarantor Subsidiaries [Member] | |||||
Cash flows from operating activities | |||||
Net Cash Provided by Operating Activities | 2,430 | 2,661 | |||
Cash flows from investing activities | |||||
Capital expenditures - network and other | (1,189) | (1,132) | |||
Capital expenditures - leased devices | (1,516) | (1,817) | |||
Expenditures relating to FCC licenses | (9) | (59) | |||
Proceeds from sales and maturities of short-term investments | 0 | ||||
Payments to Acquire Short-term Investments | 0 | 0 | |||
Increase (decrease) due from consolidated affiliate from investing activities | 0 | 0 | |||
Proceeds from sales of assets and FCC Licenses | 182 | 133 | |||
Proceeds from intercompany note advance to consolidated affiliate | 0 | ||||
Proceeds from Sale and Collection of Receivables | 170 | ||||
Payments for (Proceeds from) Other Investing Activities | (5) | (10) | |||
Net Cash Used in Investing Activities | (2,537) | (2,715) | |||
Cash flows from financing activities | |||||
Proceeds from debt and financings | 1,061 | 1,370 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | (2,904) | (1,405) | |||
Debt financing costs | (10) | (211) | |||
Increase (decrease) due from/to consolidated affiliates from financing activities | 2,410 | 750 | |||
Repayments of intercompany note advance from parent | (424) | (424) | |||
Other, net | 0 | ||||
Net cash provided by (used in) financing activities | 133 | 80 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 26 | ||||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, Period Increase (Decrease) | 26 | ||||
Cash and cash equivalents, end of period | 400 | ||||
Proceeds from Issuance of Common Stock | 0 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 483 | 457 | |||
Proceeds from Related Party Debt | 0 | ||||
Consolidation, Eliminations [Member] | |||||
Cash flows from operating activities | |||||
Net Cash Provided by Operating Activities | 0 | 0 | |||
Cash flows from investing activities | |||||
Capital expenditures - network and other | 0 | 0 | |||
Capital expenditures - leased devices | 0 | 0 | |||
Expenditures relating to FCC licenses | 0 | 0 | |||
Proceeds from sales and maturities of short-term investments | 0 | ||||
Payments to Acquire Short-term Investments | 0 | 0 | |||
Increase (decrease) due from consolidated affiliate from investing activities | 2,410 | 750 | |||
Proceeds from sales of assets and FCC Licenses | 0 | 0 | |||
Proceeds from intercompany note advance to consolidated affiliate | (424) | ||||
Proceeds from Sale and Collection of Receivables | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | |||
Net Cash Used in Investing Activities | 1,986 | 326 | |||
Cash flows from financing activities | |||||
Proceeds from debt and financings | 0 | 0 | |||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 0 | 0 | |||
Debt financing costs | 0 | 0 | |||
Increase (decrease) due from/to consolidated affiliates from financing activities | (2,410) | (750) | |||
Repayments of intercompany note advance from parent | 424 | 424 | |||
Other, net | 0 | ||||
Net cash provided by (used in) financing activities | (1,986) | (326) | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 0 | ||||
Cash, Cash Equivalents, Restricted Cash, Restricted Cash Equivalents, Period Increase (Decrease) | 0 | ||||
Cash and cash equivalents, end of period | 0 | ||||
Proceeds from Issuance of Common Stock | 0 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 | $ 0 | |||
Proceeds from Related Party Debt | $ (424) |
Additional Financial Informat_3
Additional Financial Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | $ 4,869 | $ 6,982 | $ 6,659 | $ 4,425 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 4,952 | 7,063 | $ 6,659 | $ 4,425 |
Checks Issued In Excess Of Associated Bank Balances But Not Yet Presented For Collection | 64 | 75 | ||
Other Assets [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted Cash, Current | $ 83 | $ 81 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019USD ($)siterenewal_option | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2008site | Dec. 31, 2005siterenewal_option | Apr. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||
Option to extend | 20 years | ||||||
Option to terminate | 1 year | ||||||
Finance lease, right-of-use asset | $ 612 | $ 613 | |||||
Finance lease, accumulated depreciation | 77 | 58 | |||||
Lease leaseback agreement, term of contract | 32 years | ||||||
Lease leaseback, number of renewal options | renewal_option | 0 | ||||||
Operating lease, liability | $ 7,593 | ||||||
Lessor, number of renewal options | renewal_option | 0 | ||||||
Residual value of operating leases | $ 3,300 | 3,200 | |||||
Rental expense | $ 2,800 | $ 2,700 | $ 3,100 | ||||
Cell Sites | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Lease, Term of Contract | 5 years | ||||||
Lessee, incremental option to extend | 5 years | ||||||
Retail Stores | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, incremental option to extend | 5 years | ||||||
Fleet Vehicles | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Lease, Term of Contract | 3 years | ||||||
Ground | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Operating lease, liability | $ 201 | $ 207 | |||||
Handset | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Weighted average remaining lease term | 18 months | ||||||
Tower financing | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Number of cell sites, sale leaseback transaction (in sites) | site | 1,750 | 3,000 | |||||
Lease leaseback arrangement, renewal option duration | 20 years | ||||||
Sale leaseback transaction, net book value | $ 109 | ||||||
Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Weighted average remaining lease term | 1 year | ||||||
Minimum | Cell Sites | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, number of renewal options | renewal_option | 1 | ||||||
Minimum | Network Equipment | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Lease, Term of Contract | 5 years | ||||||
Minimum | Retail Stores | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Lease, Term of Contract | 3 years | ||||||
Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Weighted average remaining lease term | 20 years | ||||||
Maximum | Cell Sites | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, number of renewal options | renewal_option | 4 | ||||||
Maximum | Network Equipment | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Option to extend | 10 years | ||||||
Lessee, Lease, Term of Contract | 10 years | ||||||
Maximum | Retail Stores | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Lessee, Lease, Term of Contract | 10 years | ||||||
Crown Castle International (CCI) | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Number of cell sites, sale leaseback transaction (in sites) | site | 5,700 | ||||||
Master Lease Sites | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Number of cell sites, sale leaseback transaction (in sites) | site | 970 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 530 |
Amortization of right-to-use assets | 18 |
Interest on lease liabilities | 1 |
Total finance lease expense | 19 |
Variable lease expense | 15 |
Total lease expense | $ 564 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from finance leases | $ 2 |
Operating cash flows from operating leases | 576 |
Financing cash flows from finance leases | 1 |
Total cash paid for amounts included in the measurement of lease liabilities | 579 |
Operating lease right-of-use assets obtained in exchange for lease obligations: | $ 113 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 5 years 4 months 24 days |
Weighted average remaining discount rate | 6.20% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of fiscal year ending March 31, 2020 | $ 1,580 |
Fiscal year ending March 31, 2021 | 2,187 |
Fiscal year ending March 31, 2022 | 1,640 |
Fiscal year ending March 31, 2023 | 1,133 |
Fiscal year ending March 31, 2024 | 770 |
Thereafter | 1,783 |
Total lease payments | 9,093 |
Less imputed interest | (1,500) |
Total | $ 7,593 |
Leases - 840 Disclosure (Detail
Leases - 840 Disclosure (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
Fiscal year ending March 31, 2020 | $ 2,277 |
Fiscal year ending March 31, 2021 | 2,199 |
Fiscal year ending March 31, 2022 | 1,793 |
Fiscal year ending March 31, 2023 | 1,358 |
Fiscal year ending March 31, 2024 | 1,039 |
Thereafter | 3,101 |
Total lease payments | 11,767 |
Capital Leases and Financing Obligations | |
Fiscal year ending March 31, 2020 | 262 |
Fiscal year ending March 31, 2021 | 150 |
Fiscal year ending March 31, 2022 | 92 |
Fiscal year ending March 31, 2023 | 44 |
Fiscal year ending March 31, 2024 | 12 |
Thereafter | 0 |
Total lease payments | $ 560 |