Unearned revenue comprises mainly unearned revenue from volume licensing programs, as well as payments for undelivered elements and for other offerings for which we earn the revenue when we provide the service or software or otherwise meet the revenue recognition criteria.
Unearned revenue from volume licensing programs represents customer billings for multi-year licensing arrangements paid either at inception of the agreement or annually at the beginning of each billing coverage period and accounted for as subscriptions with revenue recognized ratably over the billing coverage period.
Undelivered elements consist mainly of payments for unspecified upgrades or enhancements of Microsoft Internet Explorer on a when-and-if-available basis for Windows XP, and technology guarantee programs.
Also included in unearned revenue are payments for post-delivery support and consulting services to be performed in the future; Xbox LIVE subscriptions; Microsoft Dynamics business solutions products; and other offerings for which we have been paid in advance and earn the revenue when we provide the service or software, or otherwise meet the revenue recognition criteria.
The components of unearned revenue were as follows:
(In millions) | ||||
---|---|---|---|---|
June 30, | 2010 | 2009 | ||
Volume licensing programs | $ | 12,180 | $ | 11,350 |
Undelivered elements | 624 | 1,083 | ||
Other | 2,026 | 1,851 | ||
Total | $ | 14,830 | $ | 14,284 |
Unearned revenue by segment was as follows: |
||||
(In millions) | ||||
June 30, | 2010 | 2009 | ||
Windows & Windows Live Division | $ | 1,701 | $ | 2,345 |
Server and Tools | 5,282 | 4,732 | ||
Microsoft Business Division | 7,004 | 6,508 | ||
Other segments | 843 | 699 | ||
Total | $ | 14,830 | $ | 14,284 |