Revenues

Disaggregation of Revenue

Subscription and Support Revenue by the Company's core service offerings

Subscription and support revenues consisted of the following (in millions):



	Three Months Ended April 30,
	2018		2017
Sales Cloud	$	965	$	830
Service Cloud	848		656
Salesforce Platform and Other	575		424
Marketing and Commerce Cloud	422		299
	$	2,810	$	2,209

Total Revenue by Geographic Locations

Revenues by geographical region consisted of the following (in millions):



	Three Months Ended April 30,
	2018		2017
Americas	$	2,101	$	1,765
Europe	606		409
Asia Pacific	299		223
	$	3,006	$	2,397

Revenues by geography are determined based on the region of the Company's contracting entity, which may be different than the region of the customer. Americas revenue attributed to the United States was approximately 96 percent and 96 percent during the three months ended April 30, 2018 and 2017, respectively. No other country represented more than ten percent of total revenue during the three months ended April 30, 2018 and 2017.

Contract Balances

As described in Note 1, subscription and support revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract. Under Topic 606 the timing and amount of revenue recognition may differ in certain situations from the revenue recognized under previous accounting guidance, which included a contingent revenue rule that limited subscription and support revenue to the customer invoice amount for the period of service (collectively billings). Under Topic 606, the Company records a contract asset when revenue recognized on a contract exceeds the billings. Contract assets were $75 million at April 30, 2018 and $81 million at January 31, 2018.

Unearned Revenue

Topic 606 introduced the concept of unearned revenue, which is substantially similar to deferred revenue under previous accounting guidance, except for the removal of the limitation on contingent revenue. The unearned revenue balance does not represent the total contract value of annual or multi-year, non-cancelable subscription agreements. Unearned revenue primarily consists of billings or payments received in advance of revenue recognition from subscription services described above and is recognized as revenue when transfer of control to customers has occurred. The Company generally invoices customers in annual installments. The unearned revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, dollar size and new business linearity within the quarter.

The changes in unearned revenue were as follows (in millions):



	Three Months Ended April 30, 2018
Unearned revenue, beginning of period	$	6,995
Billings and other	2,212
Revenue recognized	(3,006		)
Unearned revenue, end of period	$	6,201

Remaining Transaction Price

Topic 606 also introduced the concept of remaining transaction price, which is different than unbilled deferred revenue under previous accounting guidance. Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including seasonality, the timing of renewals, average contract terms and foreign currency exchange rates. Unbilled portions of the remaining transaction price denominated in foreign currencies are revalued each period based on the period end exchange rates.

The Company applied the practical expedient in accordance with Topic 606 to exclude amounts related to performance obligations that are billed and recognized as they are delivered. This primarily consists of professional services contracts that are on a time-and-material basis.

Remaining transaction price consisted of the following (in billions):



	Current		Noncurrent		Total
As of April 30, 2018	$	9.6	$	10.8	$	20.4