7 Property, plant and equipment

The carrying amount of property, plant and equipment increased by EUR 0.8 billion compared to December 31, 2020 to EUR 61.8 billion. Additions of EUR 15.5 billion to upgrade and build out the network and acquire mobile devices in our United States operating segment and in connection with the broadband/fiber-optic build-out and mobile infrastructure build-out in the Germany and Europe operating segments increased the carrying amount. Exchange rate effects of EUR 2.1 billion, primarily from the translation of U.S. dollars into euros, and effects of changes in the composition of the Group of EUR 0.1 billion, mainly in connection with the acquisition of Shentel, also increased the carrying amount, while depreciation totaling EUR 14.6 billion and disposals of EUR 1.6 billion had an offsetting effect. The reclassification of assets worth EUR 0.7 billion to non-current assets and disposal groups held for sale reduced the carrying amount. These reclassifications mainly resulted from the agreed sale of T‑Mobile Netherlands. In addition, impairment losses decreased the carrying amount by EUR 0.1 billion.

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

For further information on the aforementioned business combinations and the agreed sale of T‑Mobile Netherlands, please refer to the section “Changes in the composition of the Group and other transactions” under “Summary of accounting policies.”

In 2020, ad hoc impairment tests were conducted at the Romania – Fixed network TKR and Romania – Mobile communications TKRM cash-generating units, which were 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.

Deutsche Telekom had commitments for the acquisition of property, plant and equipment in the amount of EUR 5.9 billion as of the reporting date (December 31, 2020: EUR 7.0 billion). Restoration obligations of EUR 0.7 billion were recognized as of December 31, 2021 (December 31, 2020: EUR 0.9 billion), mainly attributable to restoration obligations of T‑Mobile US.