Deferred Revenue-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. We recognize the up-front non-refundable payments over the estimated customer life, which, based on historical attrition rates, we have estimated to be between one to 31 years. The commissions paid on the entry of right-to-use contracts are 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):



	Quarters Ended March 31,
	2013			2012
Deferred revenue – right-to-use contracts, as of January 1,	$	62,979		$	56,285
Deferral of new right-to-use contracts	2,831			2,244
Deferred revenue recognized	(1,791		)	(1,637		)
Net increase in deferred revenue	1,040			607
Deferred revenue – right-to-use contracts, as of March 31,	$	64,019		$	56,892

Deferred commission expense, as of January 1,	$	22,842		$	19,687
Costs deferred	1,093			794
Commission expense recognized	(630		)	(552		)
Net increase in deferred commission expense	463			242
Deferred commission expense, as of March 31,	$	23,305		$	19,929