Note 3: Allowance for Credit Losses

As of April 27, 2013, and April 28, 2012, we had gross notes receivable of $8.3 million from nine customers and $10.3 million from 12 customers, respectively, with a corresponding allowance for credit losses of $2.0 million and $1.5 million, respectively. We have collateral from these customers in the form of inventory and/or real estate to support the net carrying value of these notes. We do not accrue interest income on these notes receivable, but we record interest income when it is received. Of the $8.3 million in notes receivable as of April 27, 2013, $1.8 million is expected to be repaid in the next twelve months, and was categorized as receivables in our consolidated balance sheet. As of April 28, 2012, $1.9 million of the $10.3 million in notes receivable were categorized as receivables in our consolidated balance sheet. The remainder of the notes receivable and the entire allowance for credit losses were categorized as other long-term assets.

The following is an analysis of the allowance for credit losses related to our notes receivable as of April 27, 2013, and April 28, 2012:


(Amounts in thousands)	4/27/2013			4/28/2012
Beginning balance	$	1,537		$	2,067
Recoveries		(73	)		(38	)
Write-offs		—			(1,231	)
Provision for credit losses		522			825
Currency effect		—			(86	)
Ending balance	$	1,986		$	1,537