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. 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 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):



	2013			2012
Deferred revenue—entry of right-to-use contracts, as of January 1,	$	62,979		$	56,285
Deferral of new right-to-use contracts	13,142			13,433
Deferred revenue recognized	(7,448		)	(6,739		)
Net increase in deferred revenue	5,694			6,694
Deferred revenue—entry of right-to-use contracts, as of December 31,	$	68,673		$	62,979

Deferred commission expense, as of January 1,	$	22,841		$	19,686
Costs deferred	5,011			5,465
Commission expense recognized	(2,601		)	(2,310		)
Net increase in deferred commission expense	2,410			3,155
Deferred commission expense, as of December 31,	$	25,251		$	22,841