Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. Contract assets, current are those that are expected to be billed to our customer within 12 months. Contract assets, long-term are those that are expected to be billed to our customer over periods greater than 12 months. No impairments to contract assets were recorded for the period ended September 29, 2022 or the period ended September 30, 2021. See also Note 5 Accounts Receivable and Allowance for Credit Losses.

Contract liabilities are established for cash received in excess of revenues recognized and are contingent upon the satisfaction of performance obligations. Contract liabilities primarily consist of cash received on contracts for which revenue has been deferred since the receipts are in excess of transaction price resulting from the allocation of consideration based on relative standalone selling price to future units (including those under option that the Company believes are likely to be exercised) with prices that are lower than standalone selling price. These contract liabilities will be recognized earlier if the options are not fully exercised, or immediately, if the contract is terminated prior to the options being fully exercised.


	September 29, 2022		December 31, 2021		Change
Contract assets	$	547.4	$	443.2	$	104.2
Contract liabilities	(361.7)		(387.0)		25.3
Net contract assets (liabilities)	$	185.7	$	56.2	$	129.5

For the period ended September 29, 2022, the increase in contract assets reflects the net impact of more over time revenue recognition in relation to billed revenues during the period. The decrease in contract liabilities reflects the net impact of less deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $63.2 of revenue that was included in the contract liability balance at the beginning of the period.


	September 30, 2021		December 31, 2020		Change
Contract assets	$	411.0	$	372.8	$	38.2
Contract liabilities	(389.6)		(469.6)		80.0
Net contract assets (liabilities)	$	21.4	$	(96.8)	$	118.2

For the period ended September 30, 2021, the increase in contract assets reflects the net impact of more over time revenue recognition in relation to billed revenues during the period. The decrease in contract liabilities reflects the net impact of less