REVENUE RECOGNITION

3 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

The Company’s revenue recognition accounting policies are described in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022.

Accounts Receivable

Accounts receivable, net is stated net of the allowance for doubtful accounts and customer deductions totaling $28 million and $27 million as of September 30, 2022 and June 30, 2022, respectively. Payment terms are short-term in nature and are generally less than one year.

Changes in the allowance for credit losses are as follows:

(In millions)	September 30, 2022
Balance at June 30, 2022	$	10
Provision for expected credit losses	3
Write-offs, net & other	(1)
Balance at September 30, 2022	$	12

The remaining balance of the allowance for doubtful accounts of $16 million and $17 million as of September 30, 2022 and June 30, 2022, respectively, relates to non-credit losses, which are primarily due to customer deductions.

Deferred Revenue

Changes in deferred revenue during the period are as follows:

	Three Months Ended September 30
(In millions)	2022		2021
Deferred revenue, beginning of period	$	362	$	371
Revenue recognized that was included in the deferred revenue balance at the beginning of the period	(149)		(170)
Revenue deferred during the period	157		223
Other	(8)		2
Deferred revenue, end of period	$	362	$	426

Transaction Price Allocated to the Remaining Performance Obligations

At September 30, 2022, the combined estimated revenue expected to be recognized in the next twelve months related to performance obligations for customer loyalty programs, gift with purchase promotions, purchase with purchase promotions and gift card liabilities that are unsatisfied (or partially unsatisfied) is $313 million. The remaining balance of deferred revenue at September 30, 2022 will be recognized beyond the next twelve months.