Logo

Topic filter

Show results

Results

8 Right-of-use assets – lessee relationships

millions of €

 

 

 

 

 

 

Land and equivalent rights, and buildings including buildings on land owned by third parties

Land and buildings from sale and leaseback transactions

Technical equipment and machinery

Other equipment, operating and office equipment

Total

Carrying amounts of right-of-use assets by class of underlying asset

 

 

 

 

 

At December 31, 2019

6,163

529

11,171

135

17,998

Currency translation

(254)

(2)

(1,849)

(6)

(2,111)

Changes in the composition of the Group

580

0

5,674

36

6,291

Additions

1,409

93

12,727

49

14,278

Disposals

(237)

(64)

(79)

(7)

(386)

Depreciation

(1,352)

(112)

(3,518)

(82)

(5,064)

Impairment losses

(1)

0

(62)

0

(63)

Reclassifications

0

0

(500)

(7)

(507)

Reversal of impairment losses

2

0

0

0

2

Change from non-current assets and disposal groups held for sale

(118)

0

(12)

(6)

(136)

At December 31, 2020

6,193

445

23,552

111

30,302

Currency translation

175

0

1,882

1

2,058

Changes in the composition of the Group

1

0

256

(1)

256

Additions

1,282

319

3,844

41

5,486

Disposals

(235)

(17)

(154)

(14)

(419)

Depreciation

(1,373)

(103)

(4,607)

(51)

(6,134)

Impairment losses

(10)

0

(26)

0

(37)

Reclassifications

(1)

0

(197)

0

(198)

Reversal of impairment losses

0

0

0

0

0

Change from non-current assets and disposal groups held for sale

(237)

(273)

0

(28)

(537)

At December 31, 2021

5,796

371

24,550

60

30,777

millions of €

 

 

 

 

 

 

 

Land and equivalent rights, and buildings including buildings on land owned by third parties

Land and buildings from sale and leaseback transactions

Technical equipment and machinery

Other equipment, operating and office equipment

Total

 

Carrying amounts of right-of-use assets by class of underlying asset

 

 

 

 

 

 

At December 31, 2019

6,163

529

11,171

135

17,998

 

Currency translation

(254)

(2)

(1,849)

(6)

(2,111)

 

Changes in the composition of the Group

580

0

5,674

36

6,291

 

Additions

1,409

93

12,727

49

14,278

 

Disposals

(237)

(64)

(79)

(7)

(386)

 

Depreciation

(1,352)

(112)

(3,518)

(82)

(5,064)

 

Impairment losses

(1)

0

(62)

0

(63)

 

Reclassifications

0

0

(500)

(7)

(507)

 

Reversal of impairment losses

2

0

0

0

2

 

Change from non-current assets and disposal groups held for sale

(118)

0

(12)

(6)

(136)

 

At December 31, 2020

6,193

445

23,552

111

30,302

 

Currency translation

175

0

1,882

1

2,058

 

Changes in the composition of the Group

1

0

256

(1)

256

 

Additions

1,282

319

3,844

41

5,486

 

Disposals

(235)

(17)

(154)

(14)

(419)

 

Depreciation

(1,373)

(103)

(4,607)

(51)

(6,134)

 

Impairment losses

(10)

0

(26)

0

(37)

 

Reclassifications

(1)

0

(197)

0

(198)

 

Reversal of impairment losses

0

0

0

0

0

 

Change from non-current assets and disposal groups held for sale

(237)

(273)

0

(28)

(537)

 

At December 31, 2021

5,796

371

24,550

60

30,777

 

The carrying amount of the right-of-use assets increased by EUR 0.5 billion compared to December 31, 2020 to EUR 30.8 billion. The carrying amount was increased by additions of EUR 5.5 billion, including as a result of a sale and leaseback transaction concluded after the combination of the cell tower business in the Netherlands and the set-up of an infrastructure fund. The carrying amount was also increased by exchange rate effects of EUR 2.1 billion, primarily from the translation of U.S. dollars into euros, and effects from changes in the composition of the Group of EUR 0.3 billion, mainly in connection with the acquisition of Shentel. The carrying amount was decreased by depreciation, amortization and impairment losses of EUR 6.2 billion. This included a EUR 0.8 billion increase in depreciation and amortization due to a reduction in the useful life of leased network technology for cell sites in the United States operating segment following the business combination of T‑Mobile US and Sprint. The reclassification of T‑Mobile Netherlands’ assets to non-current assets and disposal groups held for sale in the amount of EUR 0.5 billion and disposals of EUR 0.4 billion also reduced the carrying amount. In addition, reclassifications of lease assets at the end of the contractual lease term to property, plant and equipment, in the United States operating segment in particular, reduced the carrying amount by EUR 0.2 billion.

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.”

For information on corresponding lease liabilities, please refer to Note 13 “Financial liabilities and lease liabilities.”

The right-of-use assets recognized in the statement of financial position relate in particular to leases for cell sites, network infrastructure, and real estate in the United States operating segment.

The right-of-use assets for land and equivalent rights, and buildings including buildings on land owned by third parties, include right-of-use assets related to data centers with a carrying amount of EUR 76 million (December 31, 2020: EUR 86 million). The corresponding depreciation amounted to EUR 18 million in the reporting year (December 31, 2020: EUR 18 million). In addition, the right-of-use assets for technical equipment and machinery also include right-of-use assets related to data centers with a carrying amount of EUR 23 million (December 31, 2020: EUR 30 million). The corresponding depreciation amounted to EUR 7 million in the reporting year (December 31, 2020: EUR 13 million).

Right-of-use assets in connection with sale and leaseback transactions mainly relate to office and technical facilities in the Group Headquarters & Group Services segment, with Group companies selling real estate and then leasing back the facilities and buildings required for business. The gain from the aforementioned sale-and-leaseback transaction in connection with the combination of the cell tower business in the Netherlands and the set-up of an infrastructure fund totaled EUR 0.1 billion, EUR 12 million of which was recognized directly in profit or loss; the remainder will be released to profit or loss over the residual useful lives of the rights-of-use assets. No other significant gains and losses from sale and leaseback transactions were recorded in the 2021 and 2020 financial years.

Leases can include extension and termination options that can have a substantial impact on the period of depreciation of the right-of-use assets if it is deemed to be reasonably certain that extension options will be exercised or termination options will not be exercised.

For further information, please refer to the section “Accounting policies” under “Summary of accounting policies.”