Revenue (Notes)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

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



	Second Quarter 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	34,235	$	—	$	—	$	34,235
Used vehicles	842		—		—		842
Extended service contracts	348		—		—		348
Other revenue	219		6		55		280
Revenues from sales and services	35,644		6		55		35,705

Leasing income	114		—		1,472		1,586
Financing income	—		—		1,521		1,521
Insurance income	—		—		41		41
Total revenues	$	35,758	$	6	$	3,089	$	38,853

	Second Quarter 2020
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	15,406	$	—	$	—	$	15,406
Used vehicles	533		—		—		533
Extended service contracts	346		—		—		346
Other revenue	252		10		44		306
Revenues from sales and services	16,537		10		44		16,591

Leasing income	85		—		1,401		1,486
Financing income	—		—		1,261		1,261
Insurance income	—		—		33		33
Total revenues	$	16,622	$	10	$	2,739	$	19,371

	First Half 2019
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	69,811	$	—	$	—	$	69,811
Used vehicles	1,862		—		—		1,862
Extended service contracts	681		—		—		681
Other revenue	432		12		106		550
Revenues from sales and services	72,786		12		106		72,904

Leasing income	211		—		2,949		3,160
Financing income	—		—		3,049		3,049
Insurance income	—		—		82		82
Total revenues	$	72,997	$	12	$	6,186	$	79,195

	First Half 2020
	Automotive		Mobility		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	45,247	$	—	$	—	$	45,247
Used vehicles	1,464		—		—		1,464
Extended service contracts	710		—		—		710
Other revenue	398		23		85		506
Revenues from sales and services	47,819		23		85		47,927

Leasing income	143		—		2,860		3,003
Financing income	—		—		2,686		2,686
Insurance income	—		—		75		75
Total revenues	$	47,962	$	23	$	5,706	$	53,691

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 decrease in revenue of $350 million in the second quarter of 2019 and an increase in revenue of $48 million in the second quarter of 2020 related to revenue recognized in prior periods.

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 billion of unearned revenue associated with outstanding contracts reported in Other liabilities and deferred revenue at December 31, 2019 and June 30, 2020, respectively. We expect to recognize approximately $600 million of the unearned amount in the remainder of 2020, $1.1 billion in 2021, and $2.3 billion thereafter. We recognized $285 million and $276 million of unearned amounts as revenue during the second quarter of 2019 and 2020, respectively, and $590 million and $606 million in the first half 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 $276 million in deferred costs as of December 31, 2019 and June 30, 2020, respectively. We recognized $20 million and $19 million of amortization during the second quarter of 2019 and 2020, respectively, and $39 million in the first half of both 2019 and 2020.