Revenue (Notes)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

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

	First Quarter 2021
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	32,135	$	—	$	32,135
Used vehicles	745		—		745
Services and other revenue (a)	608		16		624
Revenues from sales and services	33,488		16		33,504
Leasing income	77		1,380		1,457
Financing income	—		1,243		1,243
Insurance income	—		24		24
Total revenues	$	33,565	$	2,663	$	36,228
	First Quarter 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	30,991	$	—	$	30,991
Used vehicles	429		—		429
Services and other revenue (a)	722		19		741
Revenues from sales and services	32,142		19		32,161
Leasing income	53		1,211		1,264
Financing income	—		1,040		1,040
Insurance income	—		11		11
Total revenues	$	32,195	$	2,281	$	34,476

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(a)Includes extended service contract revenue.

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 an increase related to revenue recognized in prior periods of $359 million and $211 million in the first quarter of 2021 and 2022, respectively.

We had a balance of $4.3 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2021 and March 31, 2022. We expect to recognize approximately $1 billion of the unearned amount in the remainder of 2022, $1.2 billion in 2023, and $2.1 billion thereafter. We recognized $342 million and $365 million of unearned amounts as revenue during the first quarter of 2021 and 2022, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. We had a balance of $309 million and $317 million in deferred costs as of December 31, 2021 and March 31, 2022, respectively. We recognized $20 million and $22 million of amortization during the first quarter of 2021 and 2022, respectively