Table:
|  | December 31, |  |
| --- | --- | --- |
|  | 2019 | 2018 |
| Prepaid expenses | $37.1 | $43.9 |
| Contract assets | 19.5 | 14.8 |
| Other current assets | 8.2 | 8.6 |
| Prepaid expenses and other current assets | $64.8 | $67.3 |
Paragraphs:
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in millions):
Contract Assets
A contract asset represents our expectation of receiving consideration in exchange for products or services that we have transferred to our client. Contract assets and liabilities, or deferred revenues, are determined and presented on a net basis at the contract level since the rights and obligations in a contract with a client are interdependent. In contrast, a receivable is our right to consideration that is unconditional except for the passage of time required before payment of that consideration is due. The difference in timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, contract assets and deferred revenues from client advances and deposits. We account for receivables in accordance with ASC Topic 310, Receivables (“ASC 310”), and assess both contract assets and receivables for impairment in accordance with ASC 310. There were no impairment charges related to contract assets for the years ended December 31, 2019 and 2018.
Our short-term contract assets are included in Prepaid expenses and other current assets in our Consolidated Balance Sheets. Our long-term contract assets are included in Other non-current assets in our Consolidated Balance Sheets. Refer to Note 11 — Other Non-Current Assets.
Question:
What does a contract asset represent to the company?
Answer: our expectation of receiving consideration in exchange for products or services that we have transferred to our client.