11 Other financial assets
millions of € |
|
|
|
|
|---|---|---|---|---|
|
Dec. 31, 2020 |
Dec. 31, 2019 |
||
|
|
|
|
|
|
Total |
Of which: current |
Total |
Of which: current |
Originated loans and receivables |
3,043 |
2,666 |
2,936 |
2,585 |
Other receivables – publicly funded projects |
1,676 |
420 |
1,350 |
476 |
Derivative financial assets |
4,038 |
45 |
2,333 |
88 |
Equity instruments – measured at fair value through profit or loss |
3 |
0 |
22 |
22 |
Equity instruments – measured at fair value through other comprehensive income |
425 |
0 |
293 |
0 |
Debt instruments – measured at fair value through profit or loss |
203 |
5 |
115 |
6 |
Lease assets |
248 |
87 |
197 |
76 |
Other |
4 |
0 |
4 |
1 |
|
9,640 |
3,224 |
7,250 |
3,254 |
Current and non-current other financial assets increased by EUR 2.4 billion compared with December 31, 2019 to EUR 9.6 billion. The acquisition of Sprint resulted in an increase of EUR 0.4 billion as of the date of first-time consolidation.
The carrying amount of derivative financial assets increased by EUR 1.7 billion. The carrying amount of derivatives without a hedging relationship increased by EUR 1.1 billion to EUR 2.0 billion, mainly in connection with the subsequent measurement of the stock options to buy shares in T‑Mobile US received from SoftBank in June 2020 and with new additions of embedded derivatives and embedded derivatives assumed in connection with the acquisition of Sprint at T‑Mobile US, including their subsequent measurement. Measurement effects from the derecognition of a derivative in connection with the repayment of a term loan raised during the course of the year had an offsetting effect. The carrying amount of derivatives with a hedging relationship increased by EUR 0.6 billion to EUR 2.0 billion, mainly due to the increase in positive fair values from interest rate swaps in fair value hedges, which is primarily the result of a significant decline in the interest rate level. In addition, other financial assets increased by EUR 0.3 billion in connection with grants receivable from funding projects for the broadband build-out in Germany.
Subsidiaries of Deutsche Telekom deposited cash collateral of EUR 446 million as of December 31, 2020 (December 31, 2019: EUR 70 million) in connection with auctions for the planned acquisition of spectrum licenses. At the reporting date, cash and cash equivalents of EUR 63 million when translated into euros (December 31, 2019: EUR 0 million) were pledged as collateral for liabilities with right of creditors to priority repayment in the event of default. Collateral agreements as surety for potential credit risks arising from derivative transactions in connection with forward-payer swaps gave rise to receivables of EUR 34 million as of the reporting date (December 31, 2019: EUR 565 million). The decline in the balance is attributable to the forward-payer swaps concluded for borrowings at T‑Mobile US, which were terminated prematurely in April 2020.
For further information on allowances and the credit ratings of originated loans and receivables, please refer to Note 41 “Financial instruments and risk management.”