8 Capitalized contract costs

Following the transition to IFRS 15, remeasurement and reclassification effects totaling EUR 1.2 billion were recognized directly in equity as of January 1, 2018 in relation to the initial recognition of capitalized contract costs. Under IFRS 15, these costs would have resulted in the later recognition of selling expenses in earlier reporting periods. The carrying amount had changed to EUR 1.7 billion as of December 31, 2018. For further information on the new accounting standards, please refer to the section “Initial application of standards, interpretations, and amendments in the financial year”.

millions of €


Dec. 31, 2018

Dec. 31, 2017

Costs of obtaining a contract


n. a.

Costs to fulfill a contract


n. a.



n. a.

The costs of obtaining a contract included in the carrying amount as of the end of 2018 primarily comprise sales commissions paid to third-party retailers in the direct and indirect sales channel and to employees.

In the 2018 financial year, capitalized contract costs of EUR 976 million were amortized. The increase of EUR 0.6 billion in capitalized contract costs compared with the initial recognition as of January 1, 2018 is attributable in particular to a higher level of capitalized costs of obtaining a contract in customer business in the United States operating segment as of the end of the financial year.

Customers who pay for communication services after receiving them (usually on a monthly basis).