7 Property, plant and equipment

The carrying amount of property, plant and equipment increased by EUR 4.0 billion compared to December 31, 2021 to EUR 65.7 billion. Additions of EUR 18.2 billion for the upgrade and build-out of the network and in connection with the broadband/fiber-optic build-out and mobile infrastructure build-out increased the carrying amount. The modification of the arrangements between T‑Mobile US and Crown Castle for existing cell sites increased the carrying amount by EUR 0.8 billion. Exchange rate effects, primarily from the translation of U.S. dollars into euros, also increased the carrying amount by EUR 1.5 billion. Reclassifications of lease assets upon expiry of the contractual lease term to property, plant and equipment, in the United States operating segment in particular, increased the carrying amount by EUR 0.6 billion, while depreciation and impairment losses of EUR 13.7 billion had an offsetting effect. This includes impairment losses of EUR 0.7 billion, mainly relating to the impairment test described below of the former Sprint’s fiber-optic-based wireline assets carried out in the second quarter of 2022 and the corresponding sale agreed in the third quarter of 2022. The reclassification of assets worth EUR 1.5 billion to non-current assets and disposal groups held for sale reduced the carrying amount. These relate to the agreements on the sale of the GD tower companies and of the wireline business in the United States. Disposals of EUR 1.1 billion also reduced the carrying amount.

For further information on the aforementioned business transactions, please refer to the section “Changes in the composition of the Group and other transactions” under “Summary of accounting policies.”

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

Deutsche Telekom had commitments for the acquisition of property, plant and equipment in the amount of EUR 6.8 billion as of the reporting date (December 31, 2021: EUR 5.9 billion). Restoration obligations of EUR 0.5 billion were recognized as of December 31, 2022 (December 31, 2021: EUR 0.7 billion), mainly attributable to restoration obligations of T‑Mobile US.

For further information, please refer to Note 41 “Other financial obligations.”