Table:
|  | July 27, 2019 | July 28, 2018 | Increase (Decrease) |
| --- | --- | --- | --- |
| Service | $11,709 | $11,431 | $ 278 |
| Product | 6,758 | 8,254 | (1,496) |
| Total | $18,467 | $19,685 | $(1,218) |
| Reported as: |  |  |  |
| Current | $10,668 | $11,490 | $(822) |
| Noncurrent | 7,799 | 8,195 | (396) |
| Total | $18,467 | $19,685 | $(1,218) |
Paragraphs:
Deferred Revenue The following table presents the breakdown of deferred revenue (in millions):
Deferred revenue decreased primarily due to the adoption of ASC 606 in the beginning of our first quarter of fiscal 2019. Of the total deferred revenue decrease related to the adoption of ASC 606 of $2.8 billion, $2.6 billion relates to deferred product revenue and $0.2 billion relates to deferred service revenue. Of the adjustment to deferred product revenue, $1.3 billion related to our recurring software and subscription offers, $0.6 billion related to two-tier distribution, and the remainder related to nonrecurring software and other adjustments. The decrease related to the adoption of ASC 606 was partially offset by an increase in product deferred revenue during the fiscal year. The increase in deferred service revenue was driven by the impact of contract renewals, partially offset by amortization of deferred service revenue.
Question:
Why did deferred service revenue increase?
Answer: driven by the impact of contract renewals, partially offset by amortization of deferred service revenue.