Revenue (Notes)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

The following table disaggregates our revenue by major source for the periods ended June 30 (in millions):



	Second Quarter 2018
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	34,569	$	—	$	—	$	34,569
Used vehicles	655		—		—		655
Extended service contracts	328		—		—		328
Other revenue	210		6		58		274
Revenues from sales and services	35,762		6		58		35,826

Leasing income	143		—		1,443		1,586
Financing income	—		—		1,465		1,465
Insurance income	—		—		43		43
Total revenues	$	35,905	$	6	$	3,009	$	38,920

	Second Quarter 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	34,235	$	—	$	—	$	34,235
Used vehicles	842		—		—		842
Extended service contracts	348		—		—		348
Other revenue	219		6		55		280
Revenues from sales and services	35,644		6		55		35,705

Leasing income	114		—		1,472		1,586
Financing income	—		—		1,521		1,521
Insurance income	—		—		41		41
Total revenues	$	35,758	$	6	$	3,089	$	38,853

	First Half 2018
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	71,986	$	—	$	—	$	71,986
Used vehicles	1,583		—		—		1,583
Extended service contracts	657		—		—		657
Other revenue	429		10		113		552
Revenues from sales and services	74,655		10		113		74,778

Leasing income	262		—		2,858		3,120
Financing income	—		—		2,897		2,897
Insurance income	—		—		84		84
Total revenues	$	74,917	$	10	$	5,952	$	80,879

	First Half 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	69,811	$	—	$	—	$	69,811
Used vehicles	1,862		—		—		1,862
Extended service contracts	681		—		—		681
Other revenue	432		12		106		550
Revenues from sales and services	72,786		12		106		72,904

Leasing income	211		—		2,949		3,160
Financing income	—		—		3,049		3,049
Insurance income	—		—		82		82
Total revenues	$	72,997	$	12	$	6,186	$	79,195

NOTE 3. REVENUE (Continued)

The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in marketing incentives and returns we offer to our customers and their customers. As a result of changes in our estimate of marketing incentives, we recorded a decrease related to revenue recognized in prior periods of $220 million and $350 million in the second quarter of 2018 and 2019, respectively.

We sell separately-priced service contracts that extend mechanical and maintenance coverages beyond our base warranty agreements to vehicle owners (“extended service contracts”). At December 31, 2017 and December 31, 2018, $3.8 billion and $4 billion, respectively, of unearned revenue associated with outstanding contracts was reported in Other liabilities and deferred revenue. We recognized $269 million and $285 million of the unearned amounts as revenue during the second quarter of 2018 and 2019, respectively, and $567 million and $590 million in the first half of 2018 and 2019, respectively. At June 30, 2019, the unearned amount was $4 billion. We expect to recognize approximately $600 million of the unearned amount in the remainder of 2019, $1.1 billion in 2020, and $2.3 billion thereafter.

Amounts paid to dealers to obtain these contracts are deferred and recorded as Other assets. We had a balance of $247 million and $258 million in deferred costs as of December 31, 2018 and June 30, 2019, respectively, and recognized $19 million and $20 million of amortization during the second quarter of 2018 and 2019, respectively, and $37 million and $39 million in the first half of 2018 and 2019, respectively.