Revenue (Notes)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

The following table disaggregates our revenue by major source for the periods ended March 31 (in millions):



	First Quarter 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	35,576	$	—	$	—	$	35,576
Used vehicles	1,020		—		—		1,020
Extended service contracts	333		—		—		333
Other revenue	213		6		51		270
Revenues from sales and services	37,142		6		51		37,199

Leasing income	97		—		1,477		1,574
Financing income	—		—		1,528		1,528
Insurance income	—		—		41		41
Total revenues	$	37,239	$	6	$	3,097	$	40,342

	First Quarter 2020
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	29,841	$	—	$	—	$	29,841
Used vehicles	931		—		—		931
Extended service contracts	364		—		—		364
Other revenue	146		13		41		200
Revenues from sales and services	31,282		13		41		31,336

Leasing income	58		—		1,459		1,517
Financing income	—		—		1,425		1,425
Insurance income	—		—		42		42
Total revenues	$	31,340	$	13	$	2,967	$	34,320

The amount of consideration we receive and revenue we recognize on our vehicles, parts, and accessories varies with changes in return rights and marketing incentives we offer to our customers and their customers. Estimates of marketing incentives are based on expected retail and fleet sales volumes, mix of products to be sold, and incentive programs to be offered. Customer acceptance of products and programs, as well as other market conditions, will impact these estimates. As a result of changes in our estimate of marketing incentives, we recorded a decrease related to revenue recognized in prior periods of $481 million and $885 million in the first quarter of 2019 and 2020, respectively. The change in estimate for the first quarter of 2020 includes additional marketing incentives offered to customers in connection with market conditions affected by the COVID-19 pandemic.

We sell separately-priced service contracts that extend mechanical and maintenance coverages beyond our base warranty agreements to vehicle owners (“extended service contracts”). We had a balance of $4.2 billion and $4.1 billion of unearned revenue associated with outstanding contracts reported in Other liabilities and deferred revenue at December 31, 2019 and March 31, 2020, respectively. We expect to recognize approximately $1 billion of the unearned amount in the remainder of 2020, $1.1 billion in 2021, and $2 billion thereafter. We recognized $305 million and $330 million of unearned amounts as revenue during the first quarter of 2019 and 2020, respectively.

Amounts paid to dealers to obtain these contracts are deferred and recorded as Other assets. We had a balance of $270 million and $280 million in deferred costs as of December 31, 2019 and March 31, 2020, respectively. We recognized $19 million and $20 million of amortization during the first quarter of 2019 and 2020, respectively.