v3.24.3
Revenue (Notes)
 9 Months Ended
Sep. 30, 2024
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 2023
Company excluding Ford CreditFord CreditConsolidated
Vehicles, parts, and accessories$39,916 $— $39,916 
Used vehicles482 — 482 
Services and other revenue (a)733 20 753 
Revenues from sales and services
41,131 20 41,151 
Leasing income45 1,017 1,062 
Financing income— 1,563 1,563 
Insurance income— 25 25 
Total revenues$41,176 $2,625 $43,801 
Third Quarter 2024
Company excluding
Ford Credit		Ford CreditConsolidated
Vehicles, parts, and accessories$41,665 $— $41,665 
Used vehicles532 — 532 
Services and other revenue (a)818 23 841 
Revenues from sales and services
43,015 23 43,038 
Leasing income54 1,065 1,119 
Financing income— 2,002 2,002 
Insurance income— 37 37 
Total revenues$43,069 $3,127 $46,196 
First Nine Months 2023
Company excluding
Ford Credit		Ford CreditConsolidated
Vehicles, parts, and accessories$119,084 $— $119,084 
Used vehicles1,408 — 1,408 
Services and other revenue (a)2,061 86 2,147 
Revenues from sales and services
122,553 86 122,639 
Leasing income135 3,095 3,230 
Financing income— 4,290 4,290 
Insurance income— 70 70 
Total revenues$122,688 $7,541 $130,229 
First Nine Months 2024
Company excluding
Ford Credit		Ford CreditConsolidated
Vehicles, parts, and accessories$123,852 $— $123,852 
Used vehicles1,531 — 1,531 
Services and other revenue (a)2,232 85 2,317 
Revenues from sales and services
127,615 85 127,700 
Leasing income155 3,112 3,267 
Financing income— 5,710 5,710 
Insurance income— 104 104 
Total revenues$127,770 $9,011 $136,781 
__________
(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, 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 expectations 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 de minimis adjustment related to revenue recognized in prior periods in the third quarter of 2023 and a decrease of $329 million in the third quarter of 2024.

We had a balance of $4.8 billion and $5.3 billion of unearned revenue associated primarily with outstanding extended service contracts reported in Other liabilities and deferred revenue at December 31, 2023 and September 30, 2024, respectively. We expect to recognize approximately $500 million of the unearned amount in the remainder of 2024, $1.6 billion in 2025, and $3.2 billion thereafter. We recognized $385 million and $472 million of unearned amounts from prior years as revenue during the third quarter of 2023 and 2024, respectively, and $1.1 billion and $1.3 billion in the nine months of 2023 and 2024, respectively.

Amounts paid to dealers to obtain extended service contracts are deferred and recorded as Other assets. We had a balance of $317 million and $321 million in deferred costs as of December 31, 2023 and September 30, 2024, respectively. We recognized $26 million of amortization during both the third quarter of 2023 and 2024, respectively, and $77 million and $79 million in the first nine months of 2023 and 2024, respectively.