Selected notes to the consolidated income statement Net revenue Net revenue breaks down into the following revenue categories: (XLS:) Download millions of € Q1-Q3 2019 Q1-Q3 2018b a Revenue from the sale of goods and merchandise includes interest income of EUR 0.3 billion in the reporting period, calculated using the effective interest method (Q1-Q3 2018: EUR 0.3 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 217 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 September 30, 2018. Revenue from the rendering of services 48,600 45,853 Germany 13,039 13,188 United States 23,179 20,614 Europe 7,472 7,349 Systems Solutions 3,746 3,932 Group Development 1,112 725 Group Headquarters & Group Services 52 44 Revenue from the sale of goods and merchandisea 9,020 8,373 Germany 1,582 1,529 United States 6,039 5,441 Europe 1,044 1,104 Systems Solutions 91 83 Group Development 264 215 Group Headquarters & Group Services 0 0 Revenue from the use of entity assets by others 1,549 1,169 Germany 614 359 United States 410 448 Europe 165 36 Systems Solutions 60 17 Group Development 206 217 Group Headquarters & Group Services 93 92 NET REVENUE 59,169 55,395 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-Q3 2019 Q1-Q3 2018 Income from the reversal of impairment losses on non‑current assets 6 8 Of which: IFRS 5 0 0 Income from the disposal of non‑current assets 46 202 Income from reimbursements 106 124 Income from insurance compensation 73 313 Income from ancillary services 18 21 Miscellaneous other operating income 596 409 Of which: income from divestitures and from the sale of stakes accounted for using the equity method 143 0 846 1,077 In the prior-year period, income from the disposal of non-current assets primarily comprised income from the disposal of real estate previously recognized as non-current assets and disposal groups held for sale. Income from insurance compensation in the prior-year period mainly comprised compensation payments received by T‑Mobile US in the first three quarters of 2018 for damage caused by hurricanes in 2017. Miscellaneous other operating income includes income from the divestitures of shares accounted for using the equity method as a result of the transfer on August 14, 2019 of the 11.34 percent stake in Ströer SE & Co. KGaA to Deutsche Telekom Trust e.V. as plan assets. Miscellaneous other operating income also includes a large number of individual items accounting for marginal amounts. Other operating expenses (XLS:) Download millions of € Q1-Q3 2019 Q1-Q3 2018 Impairment losses on financial assets (268) (307) Gains (losses) from the write-off of financial assets measured at amortized cost (39) (45) Other (1,975) (1,767) Legal and audit fees (224) (217) Losses from asset disposals (128) (117) Income (losses) from the measurement of factoring receivables (109) (92) Other taxes (342) (364) Cash and guarantee transaction costs (259) (247) Insurance expenses (73) (69) Miscellaneous other operating expenses (840) (661) (2,282) (2,119) Miscellaneous other operating expenses include a large number of individual items accounting for marginal amounts. Depreciation, amortization and impairment losses At EUR 12.8 billion, depreciation, amortization and impairment losses on intangible assets, property, plant and equipment, and right-of-use assets were EUR 3.2 billion higher than in the prior-year period. Of this figure, EUR 2.7 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 0.5 billion higher than in the prior year, mainly due to the consistently high investment volume in past years. Profit/loss from financial activities In the first three quarters of 2019, the loss from financial activities decreased by EUR 0.6 billion year-on-year to EUR 1.5 billion, with the share of profit/loss of associates and joint ventures accounted for using the equity method increasing substantially from EUR -0.5 billion in the prior-year period to EUR 0.1 billion. This was mainly attributable to the settlement agreement reached in the prior year to end the Toll Collect arbitration proceedings, which had a negative effect of EUR 0.6 billion. Other financial income/expense improved by EUR 0.4 billion, mainly due to positive measurement effects from embedded derivatives at T‑Mobile US as a result of the lowering of interest rates on the U.S. capital market. For more information, please refer to “Disclosures on financial instruments.” Finance costs, by contrast, increased by EUR 0.4 billion, because the subsequent measurement of recognized lease liabilities since the application of IFRS 16 added EUR 0.7 billion to finance costs. Favorable refinancing terms had a reducing effect on finance costs compared with the prior-year period. Income taxes In the first three quarters of 2019, a tax expense of EUR 1.7 billion was recorded. The effective tax rate of 27 percent essentially reflects the shares of the different countries in profit before income taxes and their respective national tax rates. In the prior-year period, the tax expense totaled EUR 1.4 billion and was primarily attributable to correspondingly lower profit before income taxes.
