The vasi majority of KLC’s net revenues are derived from center operations. The trends and drivers discussed below relate to such center operations. KLC derives its net revenues primarily from the tuition it charges for attendance by children at its centers. KLC’s tuition rates and net revenues can be significantly impacted by the enrollment characteristics at its centers. Key factors include (1) geographic location, because KLC can command higher tuition rates in certain geographic areas; (2) the age mix of children enrolled, because tuition rates depend on the age of the child and are generally higher for younger children; (3) the mix between full- and part-time attendance, because KLC charges comparatively higher rates for part-time enrollment and (4) the level of participation in government subsidy and discount programs. KLC calculates its average weekly tuition rate as the actual tuition charged at centers that are open at the calculation date, net of discounts, for a specified time period, divided by average “full-time equivalents,” or "FTEs" for the related time period. KLC’s FTEs are calculated by dividing net revenue by the center's undiscounted average pre-school tuition rate. FTEs do not necessarily reflect the actual number of full- and part-time children enrolled. Tuition rates at KLC's centers are typically adjusted once per year to coincide with the back-to-school period. KLC typically collects tuition on a weekly basis in advance, the majority of which is paid by individual families. KLC provides discounts to government agencies, employees, families with multiple enrollments, referral sources and organizations KLC partners with for its employer-sponsored centers. In its employer-sponsored centers, tuition may be partly subsidized by such employers. Approximately 20% of KLC’s net revenues are derived from tuition paid at varying levels of subsidy by government agencies. KLC's revenues are therefore affected by changes in the levels of government suppo