Notes to Financial Statements
NOTE 12 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
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(In millions) |
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December 31, |
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June 30, |
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Productivity and Business Processes |
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$ |
16,225 |
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$ |
18,643 |
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Intelligent Cloud |
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13,786 |
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16,620 |
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More Personal Computing |
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3,376 |
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3,917 |
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Total |
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$ |
33,387 |
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$ |
39,180 |
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Changes in unearned revenue were as follows:
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(In millions) |
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Six Months Ended December 31, 2020 |
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Balance, beginning of period |
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$ |
39,180 |
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Deferral of revenue |
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|
37,044 |
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Recognition of unearned revenue |
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(42,837 |
) |
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Balance, end of period |
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$ |
33,387 |
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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 $117 billion as of December 31, 2020, of which $112 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.
