UNEARNED REVENUE

9 Months Ended

Mar. 31, 2023

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)
	March 31, 2023		June 30, 2022
Productivity and Business Processes	$	20,504	$	24,558
Intelligent Cloud		15,552		19,371
More Personal Computing		3,545		4,479
Total	$	39,601	$	48,408

Changes in unearned revenue were as follows:

(In millions)
Nine Months Ended March 31, 2023
Balance, beginning of period	$	48,408
Deferral of revenue		78,046
Recognition of unearned revenue		(86,853	)
Balance, end of period	$	39,601

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $201 billion as of March 31, 2023, of which $196 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.