27 Depreciation, amortization and impairment losses

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

Impairment losses break down as follows:

Depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets increased by EUR 3.8 billion year-on-year to EUR 17.7 billion. Of this figure, EUR 3.6 billion was attributable to the depreciation charge on right-of-use assets required to be recognized for the first time in accordance with IFRS 16. In the prior-year period, expenses had been recognized in EBITDA in connection with operating leases. Depreciation of property, plant and equipment and amortization of intangible assets, which in the prior year had included depreciation and amortization on finance lease assets, were EUR 0.5 billion higher than in the prior year, mainly due to the consistently high investment volume in past years. Impairment losses decreased by EUR 0.3 billion compared with the prior year to EUR 0.4 billion in total. In 2019, these included impairment losses of EUR 0.3 billion in particular on property, plant and equipment in the Romania cash-generating unit in the Europe operating segment on account of the impairment test conducted at year-end. 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. In addition, impairment losses amounting to EUR 35 million had been recognized on property, plant and equipment and intangible assets in 2018 in connection with the sale of the shares in Telekom Albania.

For further information, please refer to Note 6 “Intangible assets,” Note 7 “Property, plant and equipment,” and Note 8 “Right-of-use assets – lessee relationships.”