REVENUE RECOGNITION

3 Months Ended

Sep. 30, 2019

REVENUE RECOGNITION

REVENUE RECOGNITION

NOTE 7 – 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, 2019.

Accounts Receivable

Accounts receivable, net is stated net of the allowance for doubtful accounts and customer deductions totaling $30 million and $32 million as of September 30, 2019 and June 30, 2019, respectively. The allowance for doubtful accounts is based upon the evaluation of accounts receivable aging, specific exposures and historical trends. Payment terms are short-term in nature and are generally less than one year.

Deferred Revenue

Significant changes in deferred revenue during the period are as follows:

(In millions)	September 30, 2019
Balance at June 30, 2019	$	361
Revenue recognized that was included in the deferred revenue balance at the beginning of the period		(160)
Revenue deferred during the period		195
Other		(4)
Balance at September 30, 2019	$	392

Transaction Price Allocated to the Remaining Performance Obligations

At September 30, 2019, 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 $345 million.