Notes to Financial Statements
NOTE 12 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
(In millions) |
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December 31, 2023 |
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June 30, 2023 |
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Productivity and Business Processes |
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$ |
22,591 |
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$ |
27,572 |
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Intelligent Cloud |
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17,696 |
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21,563 |
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More Personal Computing |
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5,747 |
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4,678 |
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Total |
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$ |
46,034 |
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$ |
53,813 |
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Changes in unearned revenue were as follows:
(In millions) |
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Six Months Ended December 31, 2023 |
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Balance, beginning of period |
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$ |
53,813 |
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Deferral of revenue |
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59,828 |
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Recognition of unearned revenue |
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(67,607 |
) |
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Balance, end of period |
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$ |
46,034 |
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Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $229 billion as of December 31, 2023, of which $222 billion is related to the commercial portion of revenue. We expect to recognize approximately 45% of this revenue over the next 12 months and the remainder thereafter.
