Contract liabilities |
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| Contract liabilities | Note 11. Contract liabilities
Contract liabilities are as follows as of September 30:.
Contract liabilities represent amounts received from customers prior to the transfer of control of goods or services. These balances arise primarily from sales where payment has been received or invoiced, but the goods have not yet been delivered to the customers as of the reporting date.
Revenue related to these contract liabilities is recognized when control of the goods passes to the customers, which generally occurs upon delivery or customer pickup.
All contract liabilities outstanding at the beginning of the year were recognized as revenue during the subsequent period when the performance obligations were satisfied.
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