Microsoft 2007 Annual Report Download - page 43

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PAGE 42
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
elements. Product life cycles are currently estimated at three and one-half years for Windows operating systems.
Other – Represents payments for post-delivery support and consulting services to be performed in the future,
online advertising for which the advertisement has yet to be displayed, Microsoft Dynamics business solutions
maintenance and enhancement billings, Xbox Live and other billings that are accounted for as subscriptions, and
other agreements where Microsoft is committed to the delivery of future enhancements, products, or services.
The components of unearned revenue were as follows:
(In millions)
June 30 2007 2006
Volume licensing programs $ 9,334 $ 7,661
Undelivered elements 1,839 2,066
Other 1,473 1,175
Unearned revenue $12,646 $10,902
Unearned revenue by segment was as follows:
(In millions)
June 30 2007 2006
Client $2,875 $2,850
Server and Tools 3,652 3,792
Microsoft Business Division 5,771 3,609
Other segments 348 651
Unearned revenue $12,646 $10,902