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CONTRACT ASSETS AND LIABILITIES (Notes)
 9 Months Ended
Sep. 28, 2019
Contract Assets and Contract Liabilities [Abstract]  
CONTRACT ASSETS AND LIABILITIES
10.
CONTRACT ASSETS AND LIABILITIES
Contract assets include unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized from customer arrangements, including licensing, exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current. The Company classifies the noncurrent portion of contract assets under other assets in its condensed consolidated balance sheets.
Contract liabilities consist of advance payments and billings in excess of cost incurred and deferred revenue.
Net contract assets (liabilities) consisted of the following:
 
September 28, 2019
 
December 29, 2018
 
$ Change
 
% Change
Contract assets—current
$
1,045,939

 
$
3,089,663

 
$
(2,043,724
)
 
(66
)%
Contract liabilities—current
(1,430,828
)
 
(388,933
)
 
(1,041,895
)
 
268
 %
Contract liabilities—noncurrent
(10,007
)
 
(17,294
)
 
7,287

 
(42
)%
Net contract (liabilities) assets
$
(394,896
)
 
$
2,683,436

 
$
(3,078,332
)
 
(115
)%

The $3.1 million decrease in the Company's net contract assets (liabilities) from December 29, 2018 to September 28, 2019 was primarily due the shipment of inventory that was in process at December 29, 2018 and advanced payments in excess of amounts earned on development contracts.
In the three and nine months ended September 28, 2019, the Company recognized revenue of $0.1 million and $0.3 million, respectively, related to our contract liabilities at December 30, 2018. In the three and nine months ended September 29, 2018, the Company recognized revenue of less than $0.1 million and $0.2 million, respectively, related to our contract liabilities at December 31, 2017.
The Company did not recognize impairment losses on our contract assets in the three and nine months ended September 28, 2019 or September 29, 2018.