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REVENUE RECOGNITION
9 Months Ended
Apr. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
Disaggregation of Revenue
The following table presents the Company's revenues from contracts with customers disaggregated by major good or service line and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue of the Supply Chain reportable segment.
Three Months Ended
April 30,
Nine Months Ended
April 30,
2022202120222021
(In thousands)
Major Goods/Service Lines
Supply chain management services$51,123 $48,906 $148,783 $177,035 
Other425 528 1,440 1,517 
$51,548 $49,434 $150,223 $178,552 
Timing of Revenue Recognition
Services transferred over time51,548 49,434 150,223 178,552 
$51,548 $49,434 $150,223 $178,552 
Supply Chain Management Services
ModusLink's revenue primarily comes from the sale of supply chain management services to its clients. Amounts billed to customers under these arrangements include revenue attributable to the services performed as well as for materials procured on the customer's behalf as part of its service to them. The majority of these arrangements consist of two distinct performance obligations (i.e., warehousing/inventory management service and a separate kitting/packaging/assembly service), revenue related to each of which is recognized over time as services are performed using an input method based on the level of efforts expended.
Other
Other revenue consists of cloud-based software subscriptions, software maintenance and support service contracts, and fees for professional services. Revenue related to these arrangements is recognized on a straight-line basis over the term of the agreement or over the term of the agreement in proportion to the costs incurred in satisfying the obligations under the contract.
Contract Balances
Timing of revenue recognition may differ from timing of invoicing to customers. The Company records contract assets and liabilities related to its contracts with customers as follows:
Accounts receivable when revenue is recognized prior to receipt of cash payments and if the right to such amounts is unconditional and solely based on the passage of time.
Contract asset when the Company recognizes revenue based on efforts expended but the right to such amount is conditional upon satisfaction of another performance obligation. Contract assets are primarily comprised of fees related to supply chain management services. The Company's contract assets are all short-term in nature and are included in prepaid expenses and other current assets in the condensed consolidated balance sheets.
Deferred revenue when cash payments are received or due in advance of performance. Deferred revenue is primarily comprised of fees related to supply chain management services, cloud-based software subscriptions and software maintenance and support service contracts, which are generally billed in advance. Deferred revenue also includes other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The deferred revenue balance is classified as a component of other current liabilities and other long-term liabilities on the Company's condensed consolidated balance sheets.
The table below presents information for the Company's contract balances:
April 30,
2022
July 31,
2021
(In thousands)
Accounts receivable, trade, net$43,932 $36,547 
Contract assets$498 $627 
Deferred revenue - current$3,099 $2,212 
Deferred revenue - long-term130 108 
Total deferred revenue$3,229 $2,320 
Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the nine months ended April 30, 2022 and April 30, 2021 were as follows:
Nine Months Ended
April 30,
20222021
(In thousands)
Balance at beginning of period$2,320 $2,464 
Deferral of revenue2,049 1,959 
Recognition of deferred amounts upon satisfaction of performance obligation(1,140)(1,924)
Balance at end of period$3,229 $2,499 
We expect to recognize approximately $3.1 million of deferred revenue over the next twelve months and the remaining $0.1 million beyond that time period.
The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.