Selected notes to the consolidated income statement Net revenue Net revenue breaks down into the following revenue categories: (XLS:) Download millions of € Q1 2019 Q1 2018b a Revenue from the sale of goods and merchandise includes interest income of EUR 0.1 billion in the reporting period, calculated using the effective interest method (Q1 2018: EUR 0.1 billion). This income is primarily attributable to accrued interest on receivables in connection with handsets sold under installment plans in the United States operating segment. b Prior-year figures were adjusted on account of a change in the allocation between revenue categories. This change relates to revenue from the use of entity assets by others of EUR 72 million in the Group Development operating segment that had been reported under revenue from the rendering of services in the consolidated financial statements for January 1 to March 31, 2018. Revenue from the rendering of services 15,849 14,769 Germany 4,328 4,372 United States 7,495 6,484 Europe 2,408 2,364 Systems Solutions 1,241 1,300 Group Development 361 235 Group Headquarters & Group Services 16 15 Revenue from the sale of goods and merchandisea 3,136 2,769 Germany 503 498 United States 2,161 1,827 Europe 345 353 Systems Solutions 32 22 Group Development 95 69 Group Headquarters & Group Services 0 0 Revenue from the use of entity assets by others 503 386 Germany 205 117 United States 140 145 Europe 55 10 Systems Solutions 6 10 Group Development 65 72 Group Headquarters & Group Services 32 33 NET REVENUE 19,488 17,924 For details of changes in net revenue, please refer to the section “Development of business in the Group” in the interim Group management report. Other operating income (XLS:) Download millions of € Q1 2019 Q1 2018 Income from the reversal of impairment losses on non-current assets 0 2 Of which: IFRS 5 0 0 Income from the disposal of non-current assets 20 106 Income from reimbursements 39 41 Income from insurance compensation 27 91 Income from ancillary services 4 6 Miscellaneous other operating income 114 126 Of which: income from divestitures and from the sale of stakes accounted for using the equity method 1 0 204 373 Miscellaneous other operating income includes a large number of individual items accounting for marginal amounts. Other operating expenses (XLS:) Download millions of € Q1 2019 Q1 2018 Impairment losses on financial assets (78) (106) Gains (losses) from the write-off of financial assets measured at amortized cost (18) (10) Other (613) (697) Legal and audit fees (55) (76) Losses from asset disposals (46) (42) Income (losses) from the measurement of factoring receivables (32) (30) Other taxes (137) (156) Cash and guarantee transaction costs (85) (84) Insurance expenses (25) (20) Miscellaneous other operating expenses (233) (289) (709) (813) Miscellaneous other operating expenses include a large number of individual items accounting for marginal amounts. Depreciation, amortization and impairment losses At EUR 4.2 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were EUR 1.1 billion higher than in the prior-year period. Of this figure, EUR 0.9 billion was attributable to the depreciation charge for right-of-use assets required to be recognized for the first time in accordance with IFRS 16. In the prior-year period, by contrast, expenses had been recognized under goods and services purchased in connection with operating leases as well as depreciation of finance lease assets recognized as property, plant and equipment. Depreciation of property, plant and equipment and amortization of intangible assets were EUR 0.2 billion higher than in the prior year, mainly due to the consistently high investment volume in past years. Profit/loss from financial activities The loss from financial activities remained stable against the first quarter of 2018 at EUR 0.4 billion. Finance costs increased by EUR 0.2 billion to EUR 0.6 billion. These result in particular from the subsequent measurement of lease liabilities recognized since the application of IFRS 16. By contrast, other financial income/expense improved by EUR 0.2 billion, mainly due to positive measurement effects from embedded derivatives at T Mobile US. In the prior-year period, these had a negative effect of EUR 0.1 billion on other financial income/expense. For more information, please refer to the disclosures on financial instruments. Income taxes A tax expense of EUR 0.5 billion was recognized in the first quarter of 2019. The effective tax rate of 28 percent essentially reflects the shares of the different countries in the profit before income taxes and their respective national tax rates. In the prior-year period, tax expense in approximately the same amount arose with a profit before income taxes that was just marginally lower.
