8 Right-of-use assets – lessee relationships

The carrying amount of right-of-use assets increased by EUR 12.3 billion compared to December 31, 2019 to EUR 30.3 billion, mainly due to the following effects. The change in the composition of the Group in connection with the business combination of T‑Mobile US and Sprint contributed EUR 6.3 billion to this increase. Additions of EUR 14.3 billion, mainly in the United States operating segment, also increased the carrying amount. In September 2020, T‑Mobile US and American Tower signed an agreement on the lease and use of cell sites. This was a modification to existing agreements with American Tower. The agreement gives T‑Mobile US greater flexibility in the course of merging the mobile networks of T‑Mobile US and Sprint and of the 5G network build-out. The agreement primarily provides for a contract extension until April 30, 2035 and modifies the lease payments for 20,729 existing cell sites. The lease modification resulted in an increase in the carrying amount of the right-of-use assets and the lease liabilities by EUR 9.4 billion in each case. By contrast, depreciation of EUR 5.1 billion, negative exchange rate effects of EUR 2.1 billion, and disposals of EUR 0.4 billion decreased the carrying amount. Reclassifications to assets and disposal groups held for sale on account of the intention to sell the two subsidiaries Telekom Romania S.A. and T‑Mobile Infra B.V. reduced the carrying amount by EUR 0.1 billion.

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.

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 86 million (December 31, 2019: EUR 103 million). The corresponding depreciation amounted to EUR 18 million in the reporting year (December 31, 2019: EUR 18 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 30 million (December 31, 2019: EUR 17 million). The corresponding depreciation amounted to EUR 13 million in the reporting year (December 31, 2019: EUR 5 million).

Right-of-use assets in connection with sale and leaseback transactions mainly relate to office and technical facilities in the Group Headquarters & Group Services segment, with Group companies selling real estate and then leasing back the facilities and buildings required for business. No significant gains and losses from sale and leaseback transactions were recorded in the 2020 and 2019 financial years.

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 “Summary of accounting policies – Accounting policies.”