Deferred Costs to Obtain Customer Contracts

6 Months Ended

Jun. 28, 2019

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

Other Assets Disclosure [Text Block]

DEFERRED COSTS TO OBTAIN CUSTOMER CONTRACTS

The Company classifies 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. At the end of the second quarter of fiscal 2019 and fiscal year end 2018, the Company had $41.1 million and $41.3 million, respectively, of deferred costs to obtain customer contracts.

Amortization expense related to deferred costs to obtain customer contracts for the second quarter and the first two quarters of fiscal 2019 was $5.3 million and $10.9 million, respectively, and was $5.6 million and $11.0 million, respectively, for the second quarter and first two quarters of fiscal 2018. This expense was 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.