Unearned Revenue
NOTE 14 — UNEARNED REVENUE
Unearned revenue comprises mainly unearned revenue from volume licensing programs, as well as payments for offerings for which we have been paid in advance and we earn the revenue when we provide the service or software or otherwise meet the revenue recognition criteria.
Volume Licensing Programs
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.
Other
Also included in unearned revenue are payments for post-delivery support and consulting services to be performed in the future; Xbox LIVE subscriptions and prepaid points; Microsoft Dynamics business solutions products; technology guarantee programs; OEM minimum commitments; unspecified upgrades or enhancements of Microsoft Internet Explorer on a when-and-if-available basis for Windows XP; 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, | 2011 | 2010 | |
Volume licensing programs | $ 14,625 | $ 12,180 | |
Other | 2,495 | 2,650 | |
Total | $ 17,120 | $ 14,830 |
Unearned revenue by segment was as follows:
(In millions) | |||
June 30, | 2011 | 2010 | |
Windows & Windows Live Division | $ 1,782 | $ 1,701 | |
Server and Tools | 6,552 | 5,282 | |
Microsoft Business Division | 7,950 | 7,004 | |
Other segments | 836 | 843 | |
Total | $ 17,120 | $ 14,830 |