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. 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):



	Six Months Ended June 30,
	2013			2012
Deferred revenue – right-to-use contracts, as of January 1,	$	62,979		$	56,285
Deferral of new right-to-use contracts	6,192			5,186
Deferred revenue recognized	(3,602		)	(3,295		)
Net increase in deferred revenue	2,590			1,891
Deferred revenue – right-to-use contracts, as of June 30,	$	65,569		$	58,176

Deferred commission expense, as of January 1,	$	22,841		$	19,687
Costs deferred	2,393			2,010
Commission expense recognized	(1,275		)	(1,113		)
Net increase in deferred commission expense	1,118			897
Deferred commission expense, as of June 30,	$	23,959		$	20,584