Revenue Recognition Resident revenue is recognized at estimated net realizable amounts, based on historical experiences, due from residents in the period in which the rental and other services are provided. Additionally, substantially all community fees received from residents are non-refundable and are recorded initially by the Company as deferred revenue. The deferred amounts are amortized over the respective residents initial lease term which is consistent with the contractual obligation associated with the estimated stay of the resident. Revenues from the Medicaid program accounted for approximately 5.6% of the Companys revenue in fiscal 2017, 5.5% of the Companys revenue in fiscal 2016, and 4.6% of the Companys revenue in fiscal 2015. During fiscal 2017, 2016, and 2015, 41, 40, and 34, respectively, of the Companys communities were providers of services under the Medicaid program. Accordingly, these communities were entitled to reimbursement under the foregoing program at established rates that were lower than private pay rates. Patient service revenue for Medicaid patients was recorded at the reimbursement rates as the rates were set prospectively by the applicable state upon the filing of an annual cost report. None of the Companys communities were providers of services under the Medicare program during fiscal 2017, 2016, or 2015. Laws and regulations governing the Medicaid program are complex and subject to interpretation. The Company believes that it is in compliance with all applicable laws and regulations and is not aware of any pending or threatened investigations involving allegations of potential wrongdoing. While no such regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicaid program.