Notes to Financial Statements
NOTE 13 — UNEARNED REVENUE
Unearned revenue by segment was as follows:
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(In millions) |
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June 30, |
|
2022 |
|
|
2021 |
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||
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|
|
|
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|
Productivity and Business Processes |
|
$ |
24,558 |
|
|
$ |
22,120 |
|
|
Intelligent Cloud |
|
|
19,371 |
|
|
|
17,710 |
|
|
More Personal Computing |
|
|
4,479 |
|
|
|
4,311 |
|
|
|
|
|
|
|
|
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|
|
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|
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Total |
|
$ |
48,408 |
|
|
$ |
44,141 |
|
|
|
|
|
|
|
|
|
|
|
Changes in unearned revenue were as follows:
|
(In millions) |
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Year Ended June 30, 2022 |
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Balance, beginning of period |
|
|
$ |
44,141 |
|
|
Deferral of revenue |
|
|
|
110,455 |
|
|
Recognition of unearned revenue |
|
|
|
(106,188 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period |
|
|
$ |
48,408 |
|
|
|
|
|
|
|
|
Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $193 billion as of June 30, 2022, of which $189 billion is related to the commercial portion of revenue. We expect to recognize approximately 45% of this revenue over the next 12 months and the remainder thereafter.
