XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.24.3

Allowance for Doubtful Accounts | 9 Months Ended
--- | ---
Sep. 30, 2024
Receivables [Abstract] |
Allowance for Doubtful Accounts | Note 5—Allowance for Doubtful Accounts In making the Company’s credit evaluations, management considers the general collection risk associated with trends in the long-term care industry. The Company establishes credit limits through payment terms with customers, performs ongoing credit evaluations and monitors accounts on an aging schedule basis to minimize the risk of loss. Despite the Company’s efforts to minimize credit risk exposure, customers could be adversely affected if future industry trends change in such a manner as to negatively impact their cash flows. As a result, the Company’s future collection experience could differ significantly from historical collection trends. If the Company’s customers experience a negative impact on their cash flows, it could have a material adverse effect on the Company’s results of operations and financial condition. The Company evaluates its accounts and notes receivable for expected credit losses quarterly. Accounts receivable are evaluated based on internally developed credit quality indicators derived from the aging of receivables. Notes receivable are evaluated based on internally developed credit quality indicators derived from management’s assessment of collection risk. At the end of each period, the Company sets a reserve for expected credit losses on standard accounts and notes receivable based on the Company’s historical loss rates. Accounts and notes receivable with an elevated risk profile, which are from customers who have filed bankruptcy or are subject to collections activity, are aggregated and evaluated to determine the total reserve for the class of receivable. Additionally, for notes receivable, management evaluates standard receivables based on whether the customer is current (paying within 60 days of terms) or delinquent (paying outside of 60 days of terms). As of September 30, 2024, the delinquent notes receivable loss pool includes the note receivable due from Genesis. ASC 326 permits entities to make an accounting policy election not to measure an estimate for credit losses on accrued interest if those entities write off accrued interest deemed uncollectible in a timely manner. The Company follows an income recognition policy on all interest earned on notes receivable. Under such policy the Company accounts for all notes receivable on a non-accrual basis and defers the recognition of any interest income until receipt of cash payments. This policy was established based on the Company’s history of collections of interest on outstanding notes receivable, as we do not deem it probable that we will receive substantially all interest on outstanding notes receivable. Accordingly, the Company does not record a credit loss adjustment for accrued interest. Interest income from notes receivable for the three months ended September 30, 2024 and 2023 was $0.5 million and $0.7 million, respectively. Interest income from notes receivable for the nine months ended September 30, 2024 and 2023 was $2.2 million and $2.0 million, respectively. During June 2024, LaVie Care Centers, LLC (“LaVie”), a customer of the Company, filed for Chapter 11 bankruptcy protection in the Northern District of Georgia. The Company increased the allowance for doubtful accounts by $17.6 million related to outstanding LaVie invoices during the nine months ended September 30, 2024. The Company continues to provide services to LaVie post-petition. Revenues that the Company has earned on post-petition services provided to LaVie are recognized upon cash receipt in accordance with ASC 606, as the Company determines that collectability of substantially all of the entitled consideration in exchange for services provided is not probable for customers with ongoing bankruptcy proceedings until such cash is received. The following table presents the Company’s three tiers of notes receivable further disaggregated by year of origination as of September 30, 2024 and write-off activity for the nine months ended September 30, 2024.
|  | Notes receivable
|  | Amortized cost basis by origination year
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
|  | (in thousands)
Notes receivable |  |  |  |  |  |  |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 12,870 |  |  | $ | 5,127 |  |  | $ | 18,377 |  |  | $ | 438 |  |  | $ | — |  |  | $ | — |  |  | $ | 36,812 |
Delinquent notes receivable |  | $ | 5,469 |  |  | $ | 1,812 |  |  | $ | 2,675 |  |  | $ | 436 |  |  | $ | 1,491 |  |  | $ | 21,648 |  |  | $ | 33,531 |
Elevated risk notes receivable |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,533 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,533 |
Current-period gross write-offs |  | $ | — |  |  | $ | — |  |  | $ | 41 |  |  | $ | 3,024 |  |  | $ | — |  |  | $ | 28 |  |  | $ | 3,093 |
Current-period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current-period net write-offs |  | $ | — |  |  | $ | — |  |  | $ | 41 |  |  | $ | 3,024 |  |  | $ | — |  |  | $ | 28 |  |  | $ | 3,093 |
The following table provides information as to the status of payment on the Company’s notes receivable which were past due as of September 30, 2024.
|  | Age analysis of past-due notes receivable as of September 30, 2024
|  | 0 - 90 Days |  | 91 - 180 Days |  | Greater than 181 Days |  | Total
|  | (in thousands)
Notes receivable |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 974 |  |  | $ | — |  |  | $ | — |  |  | $ | 974 |
Delinquent notes receivable |  | $ | 990 |  |  | $ | 983 |  |  | $ | 24,480 |  |  | $ | 26,453 |
Elevated risk notes receivable |  | $ | 450 |  |  | $ | 450 |  |  | $ | 633 |  |  | $ | 1,533 |
|  | $ | 2,414 |  |  | $ | 1,433 |  |  | $ | 25,113 |  |  | $ | 28,960 |
The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the three months ended September 30, 2024 and 2023.
|  | Allowance for doubtful accounts
Portfolio Segment: |  | June 30, 2024 |  | Write-Offs 1 |  | Bad Debt Expense |  | September 30, 2024
|  | (in thousands)
Accounts receivable |  | $ | 103,693 |  |  | $ | (14,468) |  |  | $ | 1,151 |  |  | $ | 90,376 |
Notes receivable |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 2,987 |  |  | $ | — |  |  | $ | 579 |  |  | $ | 3,566 |
Delinquent notes receivable |  | 3,850 |  |  | — |  |  | (786) |  |  | 3,064 |
Elevated risk notes receivable |  | 4,755 |  |  | (3,024) |  |  | (739) |  |  | 992 |
Total notes receivable |  | $ | 11,592 |  |  | $ | (3,024) |  |  | $ | (946) |  |  | $ | 7,622 |
Total accounts and notes receivable |  | $ | 115,285 |  |  | $ | (17,492) |  |  | $ | 205 |  |  | $ | 97,998 |
1.Write-offs are shown net of recoveries. During the three months ended September 30, 2024, the Company collected less than $0.1 million of accounts and notes receivable which had previously been written-off as uncollectible.
|  | Allowance for doubtful accounts
Portfolio segment: |  | June 30, 2023 |  | Write-Offs 1 |  | Bad Debt Expense |  | September 30, 2023
|  | (in thousands)
Accounts receivable |  | $ | 70,420 |  |  | $ | (1,039) |  |  | $ | 9,648 |  |  | $ | 79,029 |
Notes receivable |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 7,008 |  |  | $ | (1,529) |  |  | $ | 1,208 |  |  | $ | 6,687 |
Elevated risk notes receivable |  | 2,234 |  |  | (793) |  |  | 3,314 |  |  | 4,755 |
Total notes receivable |  | $ | 9,242 |  |  | $ | (2,322) |  |  | $ | 4,522 |  |  | $ | 11,442 |
Total accounts and notes receivable |  | $ | 79,662 |  |  | $ | (3,361) |  |  | $ | 14,170 |  |  | $ | 90,471 |
1.Write-offs are shown net of recoveries. During the three months ended September 30, 2023, the Company collected less than $0.1 million of accounts and notes receivable which had previously been written-off as uncollectible. The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the nine months ended September 30, 2024 and 2023. Delinquent notes receivable were not considered a separate portfolio segment at December 31, 2023. The amount presented in the table below for the allowance for doubtful accounts for delinquent notes receivable was included within the standard notes receivable portfolio at December 31, 2023.
|  | Allowance for doubtful accounts
Portfolio Segment: |  | December 31, 2023 1 |  | Write-Offs 2 |  | Bad Debt Expense |  | September 30, 2024
|  | (in thousands)
Accounts receivable |  | $ | 80,819 |  |  | $ | (27,456) |  |  | $ | 37,013 |  |  | $ | 90,376 |
Notes receivable |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 3,510 |  |  | $ | — |  |  | $ | 56 |  |  | $ | 3,566 |
Delinquent notes receivable |  | 2,615 |  |  | (69) |  |  | 518 |  |  | 3,064 |
Elevated risk notes receivable |  | 4,755 |  |  | (3,024) |  |  | (739) |  |  | 992 |
Total notes receivable |  | $ | 10,880 |  |  | $ | (3,093) |  |  | $ | (165) |  |  | $ | 7,622 |
Total accounts and notes receivable |  | $ | 91,699 |  |  | $ | (30,549) |  |  | $ | 36,848 |  |  | $ | 97,998 |
1.The December 31, 2023 balance includes transfers of $2.6 million from the standard notes receivable portfolio segment to the delinquent notes receivable portfolio segment. 2.Write-offs are shown net of recoveries. During the nine months ended September 30, 2024, the Company collected $0.1 million of accounts and notes receivable which had previously been written-off as uncollectible.
|  | Allowance for doubtful accounts
Portfolio segment: |  | December 31, 2022 1 |  | Write-Offs 1 |  | Bad Debt Expense |  | September 30, 2023
|  | (in thousands)
Accounts receivable |  | $ | 66,601 |  |  | $ | (12,798) |  |  | $ | 25,226 |  |  | $ | 79,029 |
Notes receivable |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 6,052 |  |  | $ | (1,689) |  |  | $ | 2,324 |  |  | $ | 6,687 |
Elevated risk notes receivable |  | 811 |  |  | (846) |  |  | 4,790 |  |  | 4,755 |
Total notes receivable |  | $ | 6,863 |  |  | $ | (2,535) |  |  | $ | 7,114 |  |  | $ | 11,442 |
Total accounts and notes receivable |  | $ | 73,464 |  |  | $ | (15,333) |  |  | $ | 32,340 |  |  | $ | 90,471 |
1.Write-offs are shown net of recoveries. During the nine months ended September 30, 2023, the Company collected $0.1 million of accounts and notes receivable which had previously been written-off as uncollectible.

X
- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -Publisher FASB -URI https://asc.fasb.org/310/tableOfContent + Details
Name: | us-gaap_AllowanceForCreditLossesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration