7 Property, plant and equipment

The carrying amount of property, plant and equipment increased by EUR 11.4 billion to EUR 61.0 billion compared with December 31, 2019, primarily due to the following effects: effects from changes in the composition of the Group in connection with the acquisition of Sprint contributed EUR 13.7 billion to this increase. Additions of EUR 15.7 billion to upgrade and build out the network in our United States operating segment and in connection with the broadband/fiber-optic build-out, the IP transformation, and mobile infrastructure in the Germany and Europe operating segments also increased the carrying amount. Depreciation of EUR 13.5 billion and negative exchange rate effects of EUR 2.9 billion, especially from the translation of U.S. dollars into euros, lowered the carrying amount. Disposals of EUR 1.6 billion, reclassifications to non-current assets and disposal groups held for sale of EUR 0.3 billion, and impairment losses of EUR 0.2 billion reduced the carrying amount. The impairment losses are primarily related to the ad hoc impairment tests described in Note 6 “Intangible assets.”

Ad hoc impairment tests were conducted at the Romania – Fixed network TKR and Romania – Mobile communications TKRM cash-generating units, which are assigned to the Europe operating segment. In the Romanian fixed-network business TKR, the agreed sale of TKR resulted in a reversal of impairment losses recognized in the past on property, plant and equipment of EUR 50 million. The recoverable amount was calculated at EUR 242 million, which is EUR 50 million higher than the carrying amount of TKR. The observable market price (Level 1 input parameter/agreed purchase price) was used to determine the recoverable amount. The reversal of impairment losses was recognized as other operating income.

For further information, please refer to the section “Changes in the composition of the Group and other transactions.”

For further information on depreciation and amortization, please refer to Note 27 “Depreciation, amortization and impairment losses” and Note 6 “Intangible assets.”

Deutsche Telekom had commitments for the acquisition of property, plant and equipment in the amount of EUR 7.0 billion as of the reporting date (December 31, 2019: EUR 4.4 billion). Restoration obligations of EUR 0.9 billion were recognized as of December 31, 2020 (December 31, 2019: EUR 0.2 billion), mainly attributable to restoration obligations of T‑Mobile US.