Note 9 – Deferred Revenue-entry of 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-entry of right-to-use contracts and deferred commission expense are as follows (amounts in thousands):


	Six Months Ended June 30,
	2011			2010
Deferred revenue - entry of right-to-use contracts, as of January 1,	$	44,349		$	29,493

Deferral of new right-to-use contracts		8,710			10,618
Deferred revenue recognized		(2,800	)		(2,119	)

Net increase in deferred revenue		5,910			8,499

Deferred revenue - entry of right-to-use contracts, as of June 30,	$	50,259		$	37,992


Deferred commission expense, as of January 1,	$	14,898		$	9,373

Costs deferred		3,256			3,708
Commission expense recognized		(909	)		(638	)

Net increase in deferred commission expense		2,347			3,070

Deferred commission expense, June 30,	$	17,245		$	12,443