7.	Other Long-Term Liabilities

Other long-term liabilities consist of the following as of December 31, 2011 and March 31, 2012 (in thousands):


	2011		2012
Deferred rent	$	10,302	$	10,741
Lease incentives		4,088		3,818
Deferred gain on sale of campus building		1,256		1,186
Fair value of interest rate swap (see Note 5)		1,010		1,073
Deferred payments (see Note 3)		5,000		5,000

	$	21,656	$	21,818

Deferred Rent

In accordance with ASC 840-20, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a long-term liability. As of December 31, 2011 and March 31, 2012, the Company had deferred rent associated with its lease obligations of $10.3 million and $10.7 million, respectively.

Lease Incentives

In conjunction with the opening of new campuses, the Company, in some instances, was reimbursed by the lessors for improvements made to the leased properties. In accordance with the Operating Leases Subtopic, ASC 840-20, these improvements were capitalized as leasehold improvements and a long-term liability was established for the reimbursements. The leasehold improvements and the long-term liability are amortized on a straight-line basis over the corresponding lease terms, which range from five to 10 years. As of December 31, 2011 and March 31, 2012, the Company had deferred lease incentives of $4.1 million and $3.8 million, respectively.

Deferred Gain on Sale of Campus Building

In June 2007, the Company sold its Loudoun, Virginia campus building for $5.8 million. The Company is leasing back most of the campus building over a 10-year period. In conjunction with this sale and lease back transaction, the Company realized a gain of $2.8 million before tax, which is deferred and recognized over the 10-year lease term. The non-current portion of this gain, which is recorded as a long-term liability, was $1.3 million and $1.2 million, at December 31, 2011 and March 31, 2012 respectively.