Sprint - Nextel 2015 Annual Report Download - page 111

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 6. Financial Instruments
The carrying amount of cash and cash equivalents, accounts and notes receivable, and accounts payable approximates fair value. Sprint did not hold any
short-term investments as of March 31, 2016. Short-term investments (consisting primarily of commercial paper), totaling approximately $166 million as of
March 31, 2015 , are recorded at amortized cost, and the respective carrying amounts approximate fair value. The fair value of marketable equity securities totaling
$46 million and $40 million as of the periods ended March 31, 2016 and 2015 , respectively, are measured on a recurring basis using quoted prices in active
markets.
The estimated fair value of the majority of our current and long-term debt, excluding our credit facilities and future lease 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:
Carrying amount at March
31, 2016
Estimated Fair Value Using Input Type
Quoted prices in active
markets
Observable
Unobservable
Total estimated fair
value
(in millions)
Current and long-term debt $ 33,645
$ 21,757
$ 4,474
$ 2,130
$ 28,361
Carrying amount at March
31, 2015
Estimated Fair Value Using Input Type
Quoted prices in active
markets
Observable
Unobservable
Total estimated fair
value
(in millions)
Current and long-term debt $ 33,245
$ 27,238
$ 4,906
$ 1,410
$ 33,554
Note 7. Property, Plant and Equipment
Property, plant and equipment consists primarily of network equipment 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 $468 million , $1.5 billion , $2.0 billion , and $2.4 billion for the Successor
years ended March 31, 2016 and 2015 , three-months ended March 31, 2014 and year ended December 31, 2013.
The following table presents the components of property, plant and equipment, and the related accumulated depreciation:
March 31,
2016
2015
(in millions)
Land $ 260
$ 266
Network equipment, site costs and related software 21,500
18,990
Buildings and improvements 798
754
Non-network internal use software, office equipment, leased devices and other 6,182
2,979
Construction in progress 1,249
2,090
Less: accumulated depreciation (9,692)
(5,358)
Property, plant and equipment, net $ 20,297
$ 19,721
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. Buildings and improvements principally consists 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.
In September 2014, Sprint introduced a leasing program, 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 turn in their device, continue leasing
F-27