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Revenue Recognition
 12 Months Ended
Jan. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
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 consumable supplies including paper, labels, tags, inks, toners and ribbons, (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,
2021
     
January 31,
2020
     
January 31,
2019
  
United States
    $ 70,911      $ 83,671      $ 83,668  
Europe
      29,029        29,617        31,574  
Canada
      5,574        5,719        6,692  
Asia
      5,105        8,316        8,207  
Central and South America
      3,950        4,145        4,147  
Other
      1,464        1,978        2,369  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 116,033      $ 133,446      $ 136,657  
    
 
 
     
 
 
     
 
 
  
Major product types:
 
    
Year Ended
  
(In thousands)
   
January 31,
2021
     
January 31,
2020
     
January 31,
2019
  
Hardware
    $ 34,111      $ 48,959      $ 53,207  
Supplies
      71,772        71,838        71,178  
Service and Other
      10,150        12,649        12,272  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 116,033      $ 133,446      $ 136,657  
    
 
 
     
 
 
     
 
 
  
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. Contract liabilities were $285,000 and $466,000 at January 31, 2021 and January 31, 2020, respectively, and are recorded as deferred revenue in the consolidated balance sheet. The decrease in the deferred revenue balance during the period ended January 31, 2021 is primarily due to $466,000 of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2020 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, 2020 was $944,000, of which $59,000 was reported in other current assets and $885,000 was reported in other assets in the consolidated balance sheet. Amortization of incremental direct costs was $26,940 for the period ended
January 31, 2021. The balance of the deferred incremental direct contract costs net of accumulated amortization at January 31, 202
1
is $
917,000
, of which $
36,000
was reported in other current assets and $
881,000
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
5
 years.