Revenue (Notes)

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

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

	Third Quarter 2021
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	32,072	$	—	$	32,072
Used vehicles	450		—		450
Services and other revenue (a)	659		58		717
Revenues from sales and services	33,181		58		33,239
Leasing income	68		1,285		1,353
Financing income	—		1,080		1,080
Insurance income	—		11		11
Total revenues	$	33,249	$	2,434	$	35,683
	Third Quarter 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	36,111	$	—	$	36,111
Used vehicles	378		—		378
Services and other revenue (a)	664		13		677
Revenues from sales and services	37,153		13		37,166
Leasing income	52		1,123		1,175
Financing income	—		1,037		1,037
Insurance income	—		14		14
Total revenues	$	37,205	$	2,187	$	39,392
	First Nine Months 2021
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	86,870	$	—	$	86,870
Used vehicles	1,947		—		1,947
Services and other revenue (a)	1,923		122		2,045
Revenues from sales and services	90,740		122		90,862
Leasing income	223		4,032		4,255
Financing income	—		3,497		3,497
Insurance income	—		49		49
Total revenues	$	90,963	$	7,700	$	98,663
	First Nine Months 2022
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	103,933	$	—	$	103,933
Used vehicles	1,180		—		1,180
Services and other revenue (a)	2,063		84		2,147
Revenues from sales and services	107,176		84		107,260
Leasing income	158		3,500		3,658
Financing income	—		3,103		3,103
Insurance income	—		37		37
Total revenues	$	107,334	$	6,724	$	114,058

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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 of $110 million in the third quarter of 2021 and a decrease of $37 million in the third quarter of 2022 related to revenue recognized in prior periods.

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 September 30, 2022. We expect to recognize approximately $400 million of the unearned amount in the remainder of 2022, $1.3 billion in 2023, and $2.6 billion thereafter. We recognized $333 million and $343 million of unearned amounts as revenue during the third quarter of 2021 and 2022, respectively, and $1.0 billion and $1.1 billion in the first nine months 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 $308 million in deferred costs as of December 31, 2021 and September 30, 2022, respectively. We recognized $21 million and $22 million of amortization during the third quarter of 2021 and 2022, respectively, and $60 million and $66 million in the first nine months of 2021 and 2022, respectively.