Revenue (Notes)

9 Months Ended

Sep. 30, 2023

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 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
	Third Quarter 2023
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	39,916	$	—	$	39,916
Used vehicles	482		—		482
Services and other revenue (a)	733		20		753
Revenues from sales and services	41,131		20		41,151
Leasing income	45		1,017		1,062
Financing income	—		1,563		1,563
Insurance income	—		25		25
Total revenues	$	41,176	$	2,625	$	43,801
	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
	First Nine Months 2023
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	119,084	$	—	$	119,084
Used vehicles	1,408		—		1,408
Services and other revenue (a)	2,061		86		2,147
Revenues from sales and services	122,553		86		122,639
Leasing income	135		3,095		3,230
Financing income	—		4,290		4,290
Insurance income	—		70		70
Total revenues	$	122,688	$	7,541	$	130,229

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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 a de minimis adjustment related to revenue recognized in prior periods during both the third quarter of 2022 and 2023.

We had a balance of $4.4 billion and $4.7 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2022 and September 30, 2023, respectively. We expect to recognize approximately $400 million of the unearned amount in the remainder of 2023, $1.4 billion in 2024, and $2.9 billion thereafter. We recognized $343 million and $385 million of unearned amounts from prior years as revenue during the third quarter of 2022 and 2023, respectively, and $1.1 billion during both the first nine months of 2022 and 2023.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. We had a balance of $315 million and $317 million in deferred costs as of December 31, 2022 and September 30, 2023, respectively. We recognized $22 million and $26 million of amortization during the third quarter of 2022 and 2023, respectively, and $66 million and $77 million in the first nine months of 2022 and 2023, respectively.