UNEARNED REVENUE

9 Months Ended

Mar. 31, 2021

Revenue From Contract With Customer [Abstract]

UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

(In millions)
	March 31, 2021		June 30, 2020
Productivity and Business Processes	$	16,169	$	18,643
Intelligent Cloud		13,098		16,620
More Personal Computing		3,447		3,917
Total	$	32,714	$	39,180

Changes in unearned revenue were as follows:

(In millions)
Nine Months Ended March 31, 2021
Balance, beginning of period	$	39,180
Deferral of revenue		58,959
Recognition of unearned revenue		(65,425	)
Balance, end of period	$	32,714

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $121 billion as of March 31, 2021, of which $117 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.