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Revenue Recognition
 3 Months Ended
May 01, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 3 – 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 cabin of military, commercial and business aircraft, (ii) related supplies required in the operation of the hardware, (iii) repairs and maintenance of hardware and (iv) service agreements.
Revenues disaggregated by primary geographic markets and major product types are as follows:
Primary geographical markets:
 
 
  
Three Months Ended
 
(In thousands)
  
May 1,
2021
 
  
May 2,
2020
 
United States
    $
 
  16,693      $
 
 19,789		  
Europe
      8,599        7,450  
Canada
      1,546        1,428  
Asia
      1,085        1,009  
Central and South America
      760        954  
Other
      395        289  
Total Revenue
    $ 29,078      $ 30,919  
Major product types:
 
 
  
Three Months Ended
 
(In thousands)
  
May 1,
2021
 
  
May 2,
2020
 
Hardware
    $ 7,647      $ 8,914  
Supplies
      18,211        19,118  
Service and Other
      3,220        2,887  
Total Revenue
    $ 29,078      $ 30,919  
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 $330,000 and $285,000 at May 1, 2021 and January 31, 2021, respectively, and are recorded as deferred revenue in the accompanying condensed consolidated balance sheet. The increase in the deferred revenue balance during the three months ended May 1, 2021
is primarily due to cash payments received in advance of satisfying performance obligations in the current period, offset by $
127,000
of
revenue recognized during the period that was included in the deferred revenue balance at January 31, 2021. 
Contract Costs
We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. 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 remaining benefit term, which we currently estimate to be approximately 5 years. The balance of these contract assets at January 31, 2021 was $917,000. We amortized $9,000 of direct costs for the three months ended May 1, 2021 and the balance of deferred incremental direct costs net of accumulated amortization at May 1, 2021 was $908,000, of which $74,000 is reported in other current assets and $834,000 is
reported in other assets in the accompanying condensed consolidated balance sheet.