Revenue (Notes)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

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



	Third Quarter 2018
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	33,352	$	—	$	—	$	33,352
Used vehicles	620		—		—		620
Extended service contracts	333		—		—		333
Other revenue	201		8		53		262
Revenues from sales and services	34,506		8		53		34,567

Leasing income	154		—		1,463		1,617
Financing income	—		—		1,443		1,443
Insurance income	—		—		39		39
Total revenues	$	34,660	$	8	$	2,998	$	37,666

	Third Quarter 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	32,609	$	—	$	—	$	32,609
Used vehicles	647		—		—		647
Extended service contracts	347		—		—		347
Other revenue	183		14		55		252
Revenues from sales and services	33,786		14		55		33,855

Leasing income	145		—		1,480		1,625
Financing income	—		—		1,472		1,472
Insurance income	—		—		38		38
Total revenues	$	33,931	$	14	$	3,045	$	36,990

	First Nine Months 2018
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	105,338	$	—	$	—	$	105,338
Used vehicles	2,203		—		—		2,203
Extended service contracts	990		—		—		990
Other revenue	630		18		166		814
Revenues from sales and services	109,161		18		166		109,345

Leasing income	416		—		4,321		4,737
Financing income	—		—		4,340		4,340
Insurance income	—		—		123		123
Total revenues	$	109,577	$	18	$	8,950	$	118,545

	First Nine Months 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	102,420	$	—	$	—	$	102,420
Used vehicles	2,509		—		—		2,509
Extended service contracts	1,028		—		—		1,028
Other revenue	615		26		161		802
Revenues from sales and services	106,572		26		161		106,759

Leasing income	356		—		4,429		4,785
Financing income	—		—		4,521		4,521
Insurance income	—		—		120		120
Total revenues	$	106,928	$	26	$	9,231	$	116,185

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 $320 million and $454 million in the third 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 $262 million and $274 million of the unearned amounts as revenue during the third quarter of 2018 and 2019, respectively, and $829 million and $864 million in the first nine months of 2018 and 2019, respectively. At September 30, 2019, the unearned amount was $4.1 billion. We expect to recognize approximately $300 million of the unearned amount in the remainder of 2019, $1.2 billion in 2020, and $2.6 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 $265 million in deferred costs as of December 31, 2018 and September 30, 2019, respectively, and recognized $18 million and $17 million of amortization during the third quarter of 2018 and 2019, respectively, and $55 million and $56 million in the first nine months of 2018 and 2019, respectively.