Revenue from Contracts with Customers

Disaggregation of revenue

The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise:



Major Class of Revenue	Three Months Ended		Six Months Ended
(In thousands)	June 29, 2019	June 30, 2018	June 29, 2019	June 30, 2018
Product revenue - Distributors	86,627	88,790	164,099	174,747
Product revenue - Direct	11,469	9,504	25,609	18,656
Licensing and services revenue	4,200	4,421	10,679	7,935
Total revenue	102,296	102,715	200,387	201,338

Revenue by Geographical Market	Three Months Ended		Six Months Ended
(In thousands)	June 29, 2019	June 30, 2018	June 29, 2019	June 30, 2018
Asia	76,845	77,899	145,856	149,820
Europe	12,585	12,162	24,795	24,304
Americas	12,866	12,654	29,736	27,214
Total revenue	102,296	102,715	200,387	201,338

Contract balances

Our contract assets are included in Prepaid expenses and other current assets on our Consolidated Balance Sheets, and the following table summarizes their activity during the first six months of fiscal 2019:



(In thousands)
Contract assets as of December 29, 2018	$	9,143
Revenues recorded during the period	5,171
Transferred to Accounts receivable or collected	(1,885		)
Contract assets as of June 29, 2019	$	12,429

Contract liabilities are included in Account payable and accrued expenses on our Consolidated Balance Sheets, and the following table summarizes their activity during the first six months of fiscal 2019:



(In thousands)
Contract liabilities as of December 29, 2018	$	1,614
Accruals for estimated future stock rotation and scrap returns	3,347
Less: Release of accruals for recognized stock rotation and scrap returns	(2,461		)
Prepayment for products to be manufactured and delivered to the customer within six months	751
Contract liabilities as of June 29, 2019	$	3,251

The impact to revenue from the release of accruals for recognized stock rotation and scrap returns was offset by the processing of return merchandise authorizations ("RMAs") totaling $2.8 million, yielding a net revenue reduction of $0.3 million for the first six months of 2019. We will recognize the revenue related to the prepayment contract liability when control of the product is transferred to the end customer and the performance obligation has been satisfied.

Other matters

We share HDMI royalties with the other HDMI Founders based on an allocation formula, which is reviewed periodically, generally every three years. However, a new agreement covering the period beginning January 1, 2018 is yet to be signed. HDMI royalties are considered variable consideration under the current revenue standard and recognized as royalty revenue as usage occurs. While a new royalty sharing agreement is being negotiated with the other Founders of the HDMI consortium for fiscal years 2019 and 2018, we are estimating our share of royalty revenues under an anticipated new agreement. The amount of estimated revenue related to HDMI that we have recognized to date is reflected above in the balance of our contract assets.