NOTE 13 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
|
(In millions) |
|
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|
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|
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|
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|
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|
June 30, |
|
2020 |
|
|
2019 |
|
||
|
|
|
|
||||||
|
Productivity and Business Processes |
|
$ |
18,643 |
|
|
$ |
16,831 |
|
|
Intelligent Cloud |
|
|
16,620 |
|
|
|
16,988 |
|
|
More Personal Computing |
|
|
3,917 |
|
|
|
3,387 |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
Total |
|
$ |
39,180 |
|
|
$ |
37,206 |
|
|
|
|
|
|
|
|
|
|
|
Changes in unearned revenue were as follows:
|
(In millions) |
|
|
|
|
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|
Year Ended June 30, 2020 |
|
|
|
|
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|
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|
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|
Balance, beginning of period |
|
|
$ |
37,206 |
|
|
Deferral of revenue |
|
|
|
78,922 |
|
|
Recognition of unearned revenue |
|
|
|
(76,948 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
|
$ |
39,180 |
|
|
|
|
|
|
|
|
Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $111 billion as of June 30, 2020, of which $107 billion is related to the commercial portion of revenue. We expect to recognize approximately 50% of this revenue over the next 12 months and the remainder thereafter.