Note 2—Revenue Recognition

We derive revenue from the sale of (i) hardware including, digital color label printers and specialty OEM printing systems, portable data acquisition systems and airborne printers used in the flight deck and in the cabin of military, commercial and business aircraft, (ii) related supplies required in the operation of the hardware, (iii) repairs and maintenance of equipment and (iv) service agreements.

Revenues disaggregated by primary geographic markets and major product types are as follows:

Primary geographical markets:


	Year Ended
(In thousands)	January 31, 2019		January 31, 2018		January 31, 2017
United States	$	83,668	$	69,795	$	69,850
Europe		31,574		29,948		18,848
Asia		8,207		3,808		1,664
Canada		6,692		5,373		5,008
Central and South America		4,147		3,402		3,053
Other		2,369		1,075		25

Total Revenue	$	136,657	$	113,401	$	98,448

Major product types:


	Year Ended
(In thousands)	January 31, 2019		January 31, 2018		January 31, 2017
Hardware	$	53,207	$	37,501	$	33,797
Supplies		71,178		65,265		56,169
Service and Other		12,272		10,635		8,482

Total Revenue	$	136,657	$	113,401	$	98,448

Contract Assets and Liabilities

We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time. Our contract liabilities, which represent billings in excess of revenue recognized, are related to advanced billings for purchased service agreements and extended warranties and were $373,000 and $367,000 at January 31, 2019 and January 31, 2018, respectively, and are recorded as deferred revenue in the consolidated balance sheet. The slight increase in the deferred revenue at January 31, 2019 is primarily due to approximately $622,000 of revenue recognized during the year that was included in the deferred revenue balance of the prior year end, offset by cash payments received in advance of satisfying performance obligations.

Contract Costs

We have determined that certain costs related to obtaining sales contracts for our aerospace printer products meet the requirement to be capitalized. These costs are deferred and amortized based on the forecasted number of units sold over the estimated benefit term. The balance of these contract assets at January 31, 2018 was $832,000 which was reported in other assets in the consolidated balance sheet. In fiscal 2019, the Company incurred an additional $150,000 in incremental direct costs which were deferred. The amortization of incremental direct costs was $79,000 for the period ended January 31, 2019. The balance of the deferred incremental direct contract costs net of accumulated amortization at January 31, 2019 is $903,000, of which $109,000 was reported in other current assets and $794,000 was reported in other assets in the consolidated balance sheet. The contract costs are expected to be amortized over the estimated remaining period of benefit, which we currently estimate to be approximately 7 years.