(19) Property, Plant and Equipment

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The “Table of Property, Plant and Equipment” provides the components and a reconciliation of the changes in property, plant and equipment.

In 2014 and 2013, borrowing cost capitalised totalled TEUR 1,595 and TEUR 1,617, respectively. Calculation of capitalised borrowing cost was based on an interest rate of 4.3% in the years 2014 and 2013.

As of 31 December 2014 and 2013, the carrying amount of land amounted to TEUR 54,750 and TEUR 55,141, respectively.

In 2014, Telekom Austria Group reduced the estimated useful lives of certain technical equipment in the segments Austria and Additional Markets and in 2013, in Austria and Bulgaria due to the rapid technological progress. The changes resulted in an increase in depreciation of TEUR 2,515 and TEUR 2,540 in 2014 and 2013, respectively.

Government grants totalling TEUR 20,827 and TEUR 432 were deducted from acquisition cost in 2014 and 2013, respectively.

The transfers from advances/construction in progress relate to property, plant and equipment and intangible assets. Furthermore, assets held for sale were reclassified.

As of 31 December 2014 and 2013, purchase commitments for property, plant and equipment amount to TEUR 74,303 and TEUR 55,522, respectively.

Sensitivity analysis

The estimated useful lives of property, plant and equipment and of intangible assets represent the periods in which the assets are estimated to be used by Telekom Austria Group. A change in the useful lives by one year would lead to the following changes in depreciation and amortisation.

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in TEUR

2014

2013

Decrease due to extension by one year

160,293

193,097

Increase due to reduction by one year

210,524

257,577

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