UNEARNED REVENUE

3 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 11 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)
	September 30, 2019		June 30, 2019
Productivity and Business Processes	$	15,560	$	16,831
Intelligent Cloud		15,255		16,988
More Personal Computing		3,211		3,387
Total	$	34,026	$	37,206

Changes in unearned revenue were as follows:

(In millions)
Three Months Ended September 30, 2019
Balance, beginning of period	$	37,206
Deferral of revenue		14,922
Recognition of unearned revenue		(18,102	)
Balance, end of period	$	34,026

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $89 billion as of September 30, 2019, of which $86 billion is related to the commercial portion of revenue. We expect to recognize approximately 50% of this revenue over the next 12 months and the remainder thereafter. Many customers are committing to our products and services for longer contract terms, which is increasing the percentage of remaining performance obligations that will be recognized beyond the next 12 months.