UNEARNED REVENUE

3 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

UNEARNED REVENUE

NOTE 11 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)
	September 30, 2023		June 30, 2023
Productivity and Business Processes	$	25,316	$	27,572
Intelligent Cloud		19,471		21,563
More Personal Computing		4,401		4,678
Total	$	49,188	$	53,813

Changes in unearned revenue were as follows:

(In millions)
Three Months Ended September 30, 2023
Balance, beginning of period	$	53,813
Deferral of revenue		27,646
Recognition of unearned revenue		(32,271	)
Balance, end of period	$	49,188

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $216 billion as of September 30, 2023, of which $212 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.