5 Non-current assets and disposal groups held for sale and liabilities directly associated with non-current assets and disposal groups held for sale

As of December 31, 2018, current assets recognized in the consolidated statement of financial position included EUR 0.1 billion (December 31, 2017: EUR 0.2 billion) in non-current assets and disposal groups held for sale. Current liabilities in the consolidated statement of financial position did not include any material liabilities directly associated with non-current assets and disposal groups held for sale (December 31, 2017: EUR 0.0 billion).

millions of €

 

Dec. 31, 2018

Dec. 31, 2017

 

 

 

 

 

 

 

 

 

Deutsche Telekom AG

Telekom Albania

Other

Total

Deutsche Telekom AG

Other

Total

NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE

 

 

 

 

 

 

 

Cash and cash equivalents

0

7

0

7

0

0

0

Trade and other receivables

0

12

0

12

0

0

0

Inventories

0

2

0

2

0

0

0

Other current assets

0

7

34

41

0

0

0

Intangible assets

0

13

0

13

0

0

0

Property, plant and equipment

42

21

0

63

160

1

161

Deferred tax assets

0

6

0

6

0

0

0

TOTAL

42

68

34

145

160

1

161

LIABILITIES DIRECTLY ASSOCIATED WITH NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE

 

 

 

 

 

 

 

Trade and other payables

0

34

0

34

0

0

0

Other non-current provisions

0

2

0

2

0

0

0

TOTAL

0

36

0

36

0

0

0

Real estate in the Group Headquarters & Group Services segment was sold in the reporting period. In addition, on January 15, 2019, OTE concluded an agreement concerning the sale of its stake in Telekom Albania to the Bulgarian company Albania Telecom Invest AD for a purchase price of EUR 50 million. The relevant bodies of Deutsche Telekom granted the required approval for this agreement in November 2018. The assets and liabilities of Telekom Albania, which is recorded in the Europe operating segment, are reported as of December 31, 2018 under non-current assets and disposal groups held for sale and liabilities directly associated with non-current assets and disposal groups held for sale. This made it necessary to remeasure these assets at the lower of carrying amount and fair value – which was based on the Level 3 measurement pursuant to the purchase agreement – less costs of disposal, which resulted in an impairment loss of EUR 35 million as of the date of the reclassification on some of the intangible assets and property, plant and equipment assigned to the Albania cash-generating unit. This impairment was recognized under depreciation, amortization and impairment losses.

In addition, Deutsche Telekom AG’s real estate held for sale of EUR 21 million as of December 31, 2018 (December 31, 2017: EUR 48 million) was no longer recognized at its carrying amounts in accordance with IFRS 5, but at its fair value less costs of disposal. This real estate relates to sites that are no longer considered necessary for operations or that will, in the foreseeable future, no longer be considered necessary for operations on account of technological advances. The fair values are determined by external experts. The fair value is measured on a regular basis using the earnings value method, taking into account local market estimates and specific characteristics of the property, including input parameters that cannot be observed in the market (Level 3). The expected costs of disposal (currently usually around 10 percent of the fair value) are subtracted. The real estate was written down by EUR 10.7 million (2017: EUR 27.7 million) to the fair value less costs of disposal. The expense was recognized under depreciation, amortization and impairment losses.

No reversals of impairments of the carrying amounts of the non-current assets and disposal groups held for sale were recognized in the reporting year; the reversals recognized in the prior year were not material.