8 Right-of-use assets – lessee relationships

The carrying amount of the right-of-use assets decreased by EUR 0.6 billion compared to December 31, 2023 to EUR 32.2 billion. Depreciation and impairment losses reduced the carrying amount by EUR 5.4 billion. The previously mentioned reclassifications to property, plant and equipment also reduced the carrying amount by EUR 0.6 billion, and disposals by EUR 0.1 billion. The carrying amount was increased by additions of EUR 3.8 billion and exchange rate effects of EUR 1.6 billion, primarily from the translation of U.S. dollars into euros.

For further information on depreciation, amortization and impairment losses, please refer to Note 6 “Intangible assets” and Note 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 135 million (December 31, 2023: EUR 128 million). The corresponding additions amounted to EUR 40 million (2023: EUR 45 million) and the depreciation to EUR 34 million (2023: EUR 39 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 28 million (December 31, 2023: EUR 19 million). The corresponding additions amounted to EUR 26 million (2023: EUR 5 million) and the depreciation to EUR 7 million (2023: EUR 5 million).

No significant gains or losses from sale and leaseback transactions were recorded in the reporting year. After the GD tower companies had been sold in 2023, 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.