4 Inventories
millions of € |
|
|
|---|---|---|
|
Dec. 31, 2022 |
Dec. 31, 2021 |
Raw materials and supplies |
130 |
53 |
Work in process |
34 |
19 |
Finished goods and merchandise |
2,474 |
2,783 |
|
2,639 |
2,855 |
The carrying amount of inventories decreased by EUR 0.2 billion compared to December 31, 2021 to EUR 2.6 billion, due to the sale of terminal equipment in consequence of the impending market launch of new handset models, and warehouse closures at former Sprint sites in the United States operating segment. By contrast, inventories increased in the Germany and Europe operating segments, partly as a preventive measure in connection with the prevailing supply chain uncertainties. Exchange rate effects, in particular from the translation of U.S. dollars into euros, also had an increasing effect.
Write-downs of EUR 39 million (2021: EUR 23 million, 2020: EUR 42 million) on the net realizable value were recognized in profit or loss in 2022. The carrying amount of inventories expensed during the reporting period was EUR 22,722 million (2021: EUR 22,532 million, 2020: EUR 16,693 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.