Notes to the consolidated income statement.

16 Net revenue.

Net revenue breaks down into the following revenue categories:

	2010 millions of €	2009 millions of €	2008 millions of €

Revenue from the rendering of services	58,159	61,017	58,449
Revenue from the sale of goods and merchandise	4,067	3,442	3,036
Revenue from the use of entity assets by others	195	143	181
	62,421	64,602	61,666

For details of changes in net revenue, please refer to the section “Development of business in the Group” in the combined management report.

17 Cost of sales.

The decrease in cost of sales of EUR 0.5 billion was primarily attributable to consolidation effects from the deconsolidation of T-Mobile UK amounting to EUR 1.5 billion, which were partially offset by exchange rate effects totaling EUR 0.7 billion.

18 Selling expenses.

Selling expenses declined by EUR 1.2 billion, due in particular to effects of EUR 0.6 billion from changes in the composition of the Group and a reduction in customer acquisition and retention costs in the Germany operating segment. The decline was partially offset by exchange rate effects totaling EUR 0.3 billion, primarily from the translation of U.S. dollars.

19 General and administrative expenses.

The increase of EUR 0.6 billion in general and administrative expenses related mainly to EUR 0.2 billion higher expenses for early retirement arrangements. In addition, a provision of EUR 0.2 billion for the Civil Service Health Insurance Fund had been reversed in the prior year.

20 Other operating income.
	2010 millions of €	2009 millions of €	2008 millions of €

Income from reimbursements	381	344	272
Income from the reversal of impairment losses on non-current financial assets in accordance with IFRS 5	47	131	134
Income from disposal of non-current assets	70	104	100
Income from insurance compensation	42	49	50
Income from divestitures	3	20	505
Miscellaneous other operating income	955	856	910
	1,498	1,504	1,971

Other operating income did not change significantly compared to the prior year.

21 Other operating expenses.
	2010 millions of €	2009 millions of €	2008 millions of €

Impairment losses from the year-end impairment test
Of which: goodwill	395	2,345	289
Of which: property, plant and equipment	285	–	–
Expenses in connection with the agreement with Vivendi (France) and Elektrim (Poland) concerning the stake in PTC	400	–	–
Losses from divestitures	350	1	62
Losses on disposal of non-current assets	159	154	170
Miscellaneous other operating expenses	1,228	819	711
	2,817	3,319	1,232