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				Nine Months Ended
(In thousands)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Product revenue - Distributors	$	84,135	$	82,969	$	248,234	$	257,716
Product revenue - Direct	13,342		14,963		38,951		33,619
Licensing and services revenue	5,992		3,552		16,671		11,487
Total revenue	$	103,469	$	101,484	$	303,856	$	302,822

Revenue by Geographical Market	Three Months Ended				Nine Months Ended
(In thousands)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Asia	$	79,644	$	76,927	$	225,500	$	226,747
Europe	11,691		11,873		36,486		36,177
Americas	12,134		12,684		41,870		39,898
Total revenue	$	103,469	$	101,484	$	303,856	$	302,822

Contract balances

Our contract assets result from the amount of estimated revenue related to HDMI that we have recognized to date, and which we expect to receive when a new royalty sharing agreement is adopted. Contract assets are included in Prepaid expenses and other current assets on our Consolidated Balance Sheets. The following table summarizes activity during the first nine months of fiscal 2019:



(In thousands)
Contract assets as of December 29, 2018	$	9,143
Revenues recorded during the period	8,871
Transferred to Accounts receivable or collected	(2,570		)
Contract assets as of September 28, 2019	$	15,444

Contract liabilities are included in Accounts payable and accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first nine months of fiscal 2019:



(In thousands)
Contract liabilities as of December 29, 2018	$	1,614
Accruals for estimated future stock rotation and scrap returns	4,397
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 September 28, 2019	$	4,301

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 totaling $2.8 million, yielding a net revenue reduction of $0.3 million for the first nine 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.