Deferred Revenue-Right-to-use contracts and Deferred commission expense

Upfront payments received upon the entry of right-to-use contracts are recognized in accordance with FASB ASC 605. The Company will recognize the upfront non-refundable payments over the estimated customer life, which, based on historical attrition rates, the Company has estimated to be between one to 31 years. The commissions paid on the entry of right-to-use contracts will be deferred and amortized over the same period as the related revenue.

Components of the change in deferred revenue-right-to-use contracts and deferred commission expense are as follows (amounts in thousands):



	Nine Months Ended September 30,
	2012			2011
Deferred revenue – right-to-use contracts, as of January 1,	$	56,285		$	44,349
Deferral of new right-to-use contracts	9,680			13,096
Deferred revenue recognized	(5,000		)	(4,328		)
Net increase in deferred revenue	4,680			8,768
Deferred revenue – right-to-use contracts, as of September 30,	$	60,965		$	53,117

Deferred commission expense, as of January 1,	$	19,687		$	14,898
Costs deferred	3,875			4,908
Commission expense recognized	(1,701		)	(1,413		)
Net increase in deferred commission expense	2,174			3,495
Deferred commission expense, as of September 30,	$	21,861		$	18,393