5. Revenue
Resident fee revenue by payor source is as follows.
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| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Private pay | 93.9 | % | | 93.8 | % | | 93.7 | % |
| Government reimbursement | 4.8 | % | | 4.8 | % | | 4.8 | % |
| Other third-party payor programs | 1.3 | % | | 1.4 | % | | 1.5 | % |
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Government reimbursements represented 15.3%, 15.5%, and 16.9% of resident fee revenue for the CCRCs segment for the years ended December 31, 2025, 2024, and 2023, respectively. Refer to Note 19 for disaggregation of revenue by reportable segment.
The payment terms and conditions within the Company's revenue-generating contracts vary by contract type and payor source, although terms generally include payment to be made within 30 days. Resident fee revenue for recurring and routine monthly services is generally billed monthly in advance under the Company's independent living, assisted living, and memory care residency agreements. Resident fee revenue for standalone or certain healthcare services is generally billed monthly in arrears. Additionally, certain of the Company's revenue-generating contracts include non-refundable fees that are generally billed and collected in advance or upon move-in of a resident under the Company's independent living, assisted living, and memory care residency agreements. Amounts of revenue that are collected from residents in advance are recognized as deferred revenue until the performance obligations are satisfied.
The Company had total deferred revenue (included within refundable fees and deferred revenue, and other liabilities within the consolidated balance sheets) of $51.3 million and $53.8 million, including $29.1 million and $29.4 million of monthly resident fees billed and received in advance, as of December 31, 2025 and 2024, respectively. For the years ended December 31, 2025, 2024, and 2023 the Company recognized $53.8 million, $48.3 million, and $50.2 million respectively, of revenue that was included in the deferred revenue balance as of January 1, 2025, 2024, and 2023, respectively. The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose amounts for remaining performance obligations that have original expected durations of one year or less.
The following table presents the changes in allowance for credit losses on accounts receivable for the periods indicated.
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| | For the Years Ended December 31, |
| (in millions) | | 2025 | | 2024 | | 2023 |
| | | | | | |
| Balance at beginning of period | | $ | 13.7 | | | $ | 14.1 | | | $ | 12.8 | |
| Provision within facility operating expense | | 21.2 | | | 19.4 | | | 22.6 | |
| Write-offs | | (21.7) | | | (21.3) | | | (22.5) | |
| Recoveries and other | | 4.3 | | | 1.5 | | | 1.2 | |
| Balance at end of period | | $ | 17.5 | | | $ | 13.7 | | | $ | 14.1 | |
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About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.