Deferred Revenue-entry of right-to-use contracts and Deferred Commission Expense

Up-front payments received upon the entry of right-to-use contracts are recognized in accordance with FASB ASC 605. The Company will recognize the up-front 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 sales revenue.

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



	Years Ended December 31,
	2012			2011
Deferred revenue—entry of right-to-use contracts, as of January 1,	$	56,285		$	44,349
Deferral of new right-to-use contracts	13,433			17,856
Deferred revenue recognized	(6,739		)	(5,920		)
Net increase in deferred revenue	6,694			11,936
Deferred revenue—entry of right-to-use contracts, as of December 31,	$	62,979		$	56,285

Deferred commission expense, as of January 1,	$	19,687		$	14,898
Costs deferred	5,465			6,735
Commission expense recognized	(2,310		)	(1,946		)
Net increase in deferred commission expense	3,155			4,789
Deferred commission expense, as of December 31,	$	22,842		$	19,687