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Revenue Recognition
 12 Months Ended
Jan. 31, 2022
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:
 
(In thousands)
  
2022
 
  
2021
 
  
2020
 
United States
    $ 68,185      $ 70,911      $ 83,671  
Europe
      31,922        29,029        29,617  
Canada
      6,519        5,574        5,719  
Asia
      5,926        5,105        8,316  
Central and South America
      3,271        3,950        4,145  
Other
      1,657        1,464        1,978  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 117,480      $ 116,033      $ 133,446  
    
 
 
     
 
 
     
 
 
  
Major product types:
 
(In thousands)
  
2022
 
  
2021
 
  
2020
 
Hardware
    $ 31,492      $ 34,111      $ 48,959  
Supplies
      73,244        71,772        71,838  
Service and Other
      12,744        10,150        12,649  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 117,480      $ 116,033      $ 133,446  
    
 
 
     
 
 
     
 
 
  
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 $262,000 and $285,000 at January 31,
 
2022 and January 31, 2021, 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,
 
2022 is primarily due to $269,000 of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2021 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. In the second quarter of
fiscal 2022
, we extended the remaining useful life of these deferred costs from 6 years to 20 years and changed the amortization method from units sold to the straight-line method. We believe these changes, based on the life of the aircraft under the applicable sales contracts, appropriately reflects a more systematic and rational approach. This change is being treated as a change in accounting estimate that is affected by a change in accounting principle. The impact on net income was immaterial for the period ended January 31, 2022. The balance of these contract assets at January 31, 2021 was $0.9 million and in the second quarter of the current year, we incurred an additional $0.4 million in contract costs which will be amortized over 20 years. We amortized $60,000 of direct costs for the period ended January 31, 2022,
 
and the balance of deferred incremental direct costs net of accumulated amortization at January 31, 2022
,
was $1.3 million of which $0.1 million is reported in other current assets and $1.2 million is reported in other assets in the accompanying consolidated balance sheet.