Revenue (Notes)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

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

	Second Quarter 2021
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	22,663	$	—	$	22,663
Used vehicles	752		—		752
Services and other revenue (a)	656		48		704
Revenues from sales and services	24,071		48		24,119
Leasing income	78		1,367		1,445
Financing income	—		1,174		1,174
Insurance income	—		14		14
Total revenues	$	24,149	$	2,603	$	26,752
	Second Quarter 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	36,831	$	—	$	36,831
Used vehicles	373		—		373
Services and other revenue (a)	677		52		729
Revenues from sales and services	37,881		52		37,933
Leasing income	53		1,166		1,219
Financing income	—		1,026		1,026
Insurance income	—		12		12
Total revenues	$	37,934	$	2,256	$	40,190
	First Half 2021
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	54,798	$	—	$	54,798
Used vehicles	1,497		—		1,497
Services and other revenue (a)	1,264		64		1,328
Revenues from sales and services	57,559		64		57,623
Leasing income	155		2,747		2,902
Financing income	—		2,417		2,417
Insurance income	—		38		38
Total revenues	$	57,714	$	5,266	$	62,980
	First Half 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	67,822	$	—	$	67,822
Used vehicles	802		—		802
Services and other revenue (a)	1,399		71		1,470
Revenues from sales and services	70,023		71		70,094
Leasing income	106		2,377		2,483
Financing income	—		2,066		2,066
Insurance income	—		23		23
Total revenues	$	70,129	$	4,537	$	74,666

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(a)Includes extended service contract revenue.

NOTE 3. REVENUE (Continued)

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 $214 million and $152 million in the second 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 June 30, 2022. We expect to recognize approximately $700 million of the unearned amount in the remainder of 2022, $1.2 billion in 2023, and $2.4 billion thereafter. We recognized $336 million and $352 million of unearned amounts as revenue during the second quarter of 2021 and 2022, respectively, and $678 million and $717 million in the first half 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 $314 million in deferred costs as of December 31, 2021 and June 30, 2022, respectively. We recognized $19 million and $22 million of amortization during the second quarter of 2021 and 2022, respectively, and $39 million and $44 million in the first half of 2021 and 2022, respectively.