Notes to Financial Statements

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2018

 

 

June 30,
2018

 

 

 

 

Productivity and Business Processes

 

$

12,635

 

 

$

14,864

 

Intelligent Cloud

 

 

12,551

 

 

 

14,706

 

More Personal Computing

 

 

2,898

 

 

 

3,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

28,084

 

 

$

32,720

 

 

 

 

 

 

 

 

 

 

 

Changes in unearned revenue were as follows:

 

(In millions)

 

 

 

 

 

 

 

Six Months Ended December 31, 2018

 

 

 

Balance, beginning of period

 

$

32,720

 

Deferral of revenue

 

 

30,450

 

Recognition of unearned revenue

 

 

(35,086

)

 

 

 

 

 

 

 

Balance, end of period

 

$

28,084

 

 

 

 

 

 

 

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 $72 billion as of December 31, 2018, of which we expect to recognize approximately 60% of the revenue over the next 12 months and the remainder thereafter.