4 Inventories
millions of € |
|
|
|---|---|---|
|
Dec. 31, 2020 |
Dec. 31, 2019 |
Raw materials and supplies |
49 |
50 |
Work in process |
23 |
18 |
Finished goods and merchandise |
2,623 |
1,500 |
|
2,695 |
1,568 |
The carrying amount of inventories increased by EUR 1.1 billion compared to December 31, 2019 to EUR 2.7 billion, mainly on account of the inventories of Sprint transferred in connection with the business combination. Write-downs of EUR 42 million (2019: EUR 20 million, 2018: EUR 42 million) on the net realizable value were recognized in profit or loss in 2020. The carrying amount of inventories expensed during the reporting period was EUR 16,693 million (2019: EUR 14,340 million; 2018: EUR 14,373 million).
Finished goods and merchandise primarily comprise retail products (e.g., terminal equipment and accessories) not manufactured by Deutsche Telekom and services rendered but not yet invoiced, primarily to business customers.