NOTE 14 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
|
(In millions) |
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|
|
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|
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|
March 31, |
|
|
June 30, |
|
||
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|
|
|
||||||
|
Productivity and Business Processes |
|
$ |
11,185 |
|
|
$ |
12,692 |
|
|
Intelligent Cloud |
|
|
9,987 |
|
|
|
11,152 |
|
|
More Personal Computing |
|
|
2,783 |
|
|
|
2,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
23,955 |
|
|
$ |
26,656 |
|
|
|
|
|
|
|
|
|
|
|
The opening balance of unearned revenue was $22.2 billion as of July 1, 2016.
Changes in unearned revenue were as follows:
|
(In millions) |
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|
|
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|
Nine Months Ended March 31, 2018 |
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|
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|
Balance, beginning of period |
|
$ |
26,656 |
|
|
Deferral of revenue |
|
|
37,217 |
|
|
Recognition of unearned revenue |
|
|
(39,918 |
) |
|
|
|
|||
|
|
|
|
|
|
|
Balance, end of period |
|
$ |
23,955 |
|
|
|
|
|
|
|
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized revenue”), which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted not recognized revenue was $61 billion as of March 31, 2018, of which we expect to recognize approximately 60% of the revenue over the next 12 months and the remainder thereafter.