Contract with customer, asset and liability (Notes)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

contract with customer, asset and liability [Text Block]

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 for which performance obligations have been fully satisfied and billing is expected within 12 months of contract origination and contract assets, long-term are fully satisfied obligations that are expected to be billed in more than 12 months. No impairments to contract assets were recorded for the twelve months ended December 31, 2022 or December 31, 2021. See also Note 6, Accounts Receivable, net.

Contract liabilities are established for cash received that is 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.

	December 31, 2022		December 31, 2021		Change
Contract assets	$	502.2	$	443.2	$	59.0
Contract liabilities	(356.4)		(387.0)		30.6
Net contract assets (liabilities)	$	145.8	$	56.2	$	89.6

For the period ended December 31, 2022, the increase in contract assets reflects the net impact of additional revenue recognized in excess of billed revenues during the period. The decrease in contract liabilities reflects the net decrease of deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $72.8 of revenue that was included in the contract liability balance at the beginning of the period.

	December 31, 2021		December 31, 2020		Change
Contract assets	$	443.2	$	372.8	$	70.4
Contract liabilities	(387.0)		(469.6)		82.6
Net contract assets (liabilities)	$	56.2	$	(96.8)	$	153.0

For the period ended December 31, 2021, the increase in contract assets reflects the net impact of additional revenue recognized in excess of billed revenues during the period. The decrease in contract liabilities reflects the net decrease of deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $192.4 of revenue that was included in the contract liability balance at the beginning of the period.