Revenue (Notes)

3 Months Ended

Mar. 31, 2025

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 2024
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	38,645	$	—	$	38,645
Used vehicles	510		—		510
Services and other revenue (a)	688		20		708
Revenues from sales and services	39,843		20		39,863
Leasing income	47		1,017		1,064
Financing income	—		1,819		1,819
Insurance income	—		31		31
Total revenues	$	39,890	$	2,887	$	42,777
	First Quarter 2025
	Company excluding Ford Credit		Ford Credit		Consolidated
Vehicles, parts, and accessories	$	35,867	$	—	$	35,867
Used vehicles	685		—		685
Services and other revenue (a)	803		18		821
Revenues from sales and services	37,355		18		37,373
Leasing income	67		1,131		1,198
Financing income	—		2,046		2,046
Insurance income	—		42		42
Total revenues	$	37,422	$	3,237	$	40,659

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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, marketing incentives we offer to our customers and their customers, and other pricing adjustments. Estimates of marketing incentives and other pricing adjustments are based on our expectation of retail and fleet sales volumes, mix of products to be sold, competitor actions, 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 variable consideration (e.g., marketing incentives), we recorded a decrease in revenue of $707 million in the first quarter of 2024 and an increase in revenue of $96 million in the first quarter of 2025 related to revenue recognized in prior periods.

We had a balance of $5.3 billion and $5.5 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2024 and March 31, 2025, respectively. We expect to recognize approximately $1.4 billion of the unearned amount in the remainder of 2025, $1.4 billion in 2026, and $2.7 billion thereafter. We recognized $431 million and $504 million of unearned amounts from prior years as revenue during the first quarter of 2024 and 2025, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. We had a balance of $312 million and $316 million in deferred costs as of December 31, 2024 and March 31, 2025, respectively. We recognized $26 million and $30 million of amortization during the first quarter of 2024 and 2025, respectively.