Deferred Costs to Obtain Customer Contracts

3 Months Ended

Mar. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets Disclosure [Text Block]

DEFERRED COSTS TO OBTAIN CUSTOMER CONTRACTS

We classify all deferred costs to obtain customer contracts, which consists of deferred commissions, as a non-current asset, included in Deferred Costs, non-current on the Company’s condensed consolidated balance sheets. As of the end of first quarter of fiscal 2018 and fiscal year end 2017, we had $35.6 million and $35.0 million of deferred costs to obtain customer contracts, respectively.

Amortization expense related to deferred costs to obtain customer contracts, in the first quarter of fiscal 2018 and 2017, was $5.4 million and $4.9 million, respectively. Amortization expense is included in sales and marketing expenses in the Company’s condensed consolidated statements of income. There was no impairment loss related to the deferred commissions for either period presented.