NOTE 12 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
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(In millions) |
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September 30, |
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June 30, |
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Productivity and Business Processes |
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$ |
13,753 |
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$ |
14,864 |
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Intelligent Cloud |
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|
13,298 |
|
|
|
14,706 |
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More Personal Computing |
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|
3,191 |
|
|
|
3,150 |
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Total |
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$ |
30,242 |
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$ |
32,720 |
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Changes in unearned revenue were as follows:
|
(In millions) |
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Three Months Ended September 30, 2018 |
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Balance, beginning of period |
|
$ |
32,720 |
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Deferral of revenue |
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|
14,580 |
|
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Recognition of unearned revenue |
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|
(17,058 |
) |
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Balance, end of period |
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$ |
30,242 |
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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 $71 billion as of September 30, 2018, of which we expect to recognize approximately 60% of the revenue over the next 12 months and the remainder thereafter.