8 Right-of-use assets – lessee relationships
The carrying amount of the right-of-use assets decreased by EUR 0.9 billion compared to December 31, 2022 to EUR 32.8 billion. Depreciation, amortization and impairment losses of EUR 5.4 billion reduced the carrying amount. This included a EUR 0.2 billion increase in depreciation 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. Exchange rate effects, primarily from the translation of U.S. dollars into euros, also decreased the carrying amount by EUR 1.0 billion. Reclassifications of lease assets – primarily in the United States operating segment for network technology – to property, plant and equipment upon expiry of the contractual lease term decreased the carrying amount by EUR 0.5 billion. Disposals reduced the carrying amount by EUR 0.1 billion. Additions of EUR 6.1 billion had an offsetting effect, resulting in part from the sale and leaseback of passive network infrastructure in Germany and Austria in connection with the sale of the GD tower companies. In this context, retained right-of-use assets of EUR 2.0 billion were recognized in the consolidated statement of financial position.
For further information on the sale of the GD tower companies, 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.”
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.
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.”
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 128 million (December 31, 2022: EUR 117 million). The corresponding additions amounted to EUR 45 million (2022: EUR 7 million) and the depreciation to EUR 39 million (2022: EUR 38 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 19 million (December 31, 2022: EUR 18 million). The corresponding additions amounted to EUR 5 million (2022: EUR 0 million) and the depreciation also to EUR 5 million (2022: EUR 5 million).
Once the GD tower companies had been sold in the reporting year, Deutsche Telekom leased back the majority of the sold passive network infrastructure in Germany and Austria under a sale and leaseback arrangement. The portion of the gain attributable to the retained use of the sold assets, amounting to EUR 3.0 billion, will have an impact in later periods by way of lower depreciation of the capitalized right-of-use assets. No significant gains or losses from sale and leaseback transactions were recorded in the prior year.
For further information on the sale of the GD tower companies, please refer to the section “Changes in the composition of the Group and other transactions” under “Summary of accounting policies.”