Sprint - Nextel 2015 Annual Report Download - page 110

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 5. Installment Receivables
Certain subscribers have the option to purchase their devices in installments up to a 24 -month period. Short-term installment receivables were recorded
in "Accounts and notes receivable, net" and long-term installment receivables were recorded in "Other assets" in the consolidated balance sheets. Beginning in
October 2015, Sprint sold, derecognized and continues to sell all eligible installment receivables. As of March 31, 2016 , the amount of ineligible installment
receivables were immaterial ( seeNote4.FundingSources) .
The following table summarizes the installment receivables as of the prior fiscal year before sales had commenced:
March 31,
2015
(in millions)
Installment receivables, gross $ 1,725
Deferred interest (139)
Installment receivables, net of deferred interest 1,586
Allowance for credit losses (190)
Installment receivables, net $ 1,396
Classified on the consolidated balance sheets as:
Accounts and notes receivable, net $ 1,035
Other assets 361
Installment receivables, net $ 1,396
The balance and aging of installment receivables on a gross basis by credit category were as follows as of the prior fiscal year before sales had
commenced:
March 31, 2015
Prime
Subprime
Total
(in millions)
Unbilled $ 1,243
$ 359
$ 1,602
Billed - current 65
22
87
Billed - past due 21
15
36
Installment receivables, gross $ 1,329
$ 396
$ 1,725
Activity in the deferred interest and allowance for credit losses for the installment receivables was as follows:
Year Ended
March 31,
Year Ended
March 31,
2016
2015
(in millions)
Deferred interest and allowance for credit losses, beginning of period $ 329
$ 124
Bad debt expense 93
398
Write-offs, net of recoveries (105)
(255)
Change in deferred interest on short-term and long-term installment receivables (43)
62
Derecognition of deferred interest and allowance for credit losses (274)
—
Deferred interest and allowance for credit losses, end of period $ —
$ 329
F-26