26 Depreciation, amortization and impairment losses

The following table provides a breakdown of depreciation, amortization and impairment losses:

millions of €

 

2018

2017

2016

AMORTIZATION AND IMPAIRMENT OF INTANGIBLE ASSETS

5,021

6,193

4,602

Of which: Goodwill impairment losses

639

2,071

471

Amortization of mobile licenses

1,049

1,038

949

Impairment losses on mobile licenses

19

4

0

DEPRECIATION AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT

8,814

8,393

8,778

Of which: Impairment losses recognized on property, plant and equipment

38

81

221

 

13,836

14,586

13,380

Impairment losses break down as follows:

millions of €

 

2018

2017

2016

INTANGIBLE ASSETS

685

2,077

472

Of which: Goodwill from the year-end impairment test

639

829

471

Goodwill in connection with ad hoc impairment testing in the Systems Solutions operating segment

0

1,242

0

FCC licenses

0

4

0

PROPERTY, PLANT AND EQUIPMENT

38

81

221

Of which: from the year-end impairment test

0

37

128

 

722

2,158

693

Depreciation, amortization and impairment losses decreased by EUR 0.8 billion year-on-year. This decline is due in particular to the impairment losses recognized in 2017 on goodwill in the Systems Solutions operating segment of EUR 1.2 billion and in the Europe operating segment in the national companies in Poland, Romania, and Albania of EUR 0.8 billion in total. Impairment losses recognized in 2018 on goodwill in the Europe operating segment in the national companies in Poland and Romania amounted to EUR 0.6 billion in total. Impairment losses amounting to EUR 35 million were recognized on property, plant and equipment and intangible assets in the reporting year in connection with the sale of the shares in Telekom Albania agreed in January 2019.

Depreciation and amortization was EUR 0.7 billion higher than in the prior-year period. This was attributable in particular to the United States and Germany operating segments and the Group Headquarters & Group Services segment.

For further information, please refer to Note 6 “Intangible assets”, and Note 7 “Property, plant and equipment”.