Finance Receivables

Finance receivables were as follows:



	June 30, 2012					December 31, 2011					June 30, 2011
(In thousands)	Grower Receivables			Seller Financing		Grower Receivables			Seller Financing		Grower Receivables			Seller Financing
Gross receivable	$	46,376		$	32,686	$	46,188		$	35,021	$	61,209		$	37,269
Reserve	(37,240		)	—		(37,519		)	—		(37,900		)	—
Net receivable	$	9,136		$	32,686	$	8,669		$	35,021	$	23,309		$	37,269

Current portion, net	$	9,136		$	4,111	$	8,669		$	4,771	$	23,029		$	5,275
Long-term portion, net	—			28,575		—			30,250		280			31,994
Net receivable	$	9,136		$	32,686	$	8,669		$	35,021	$	23,309		$	37,269

Activity in the reserve for grower receivables is as follows:



(In thousands)	2012			2011
Reserve at beginning of year	$	37,519		$	4,552
Charged to costs and expenses	382			246
Recoveries	(191		)	—
Write-offs	—			—
Foreign exchange and other	—			(2		)
Reserve at March 31	$	37,710		$	4,796
Charged to costs and expenses	45			33,106
Recoveries	(516		)	—
Write-offs	—			—
Foreign exchange and other	1			(2		)
Reserve at June 30	$	37,240		$	37,900

Seasonal advances may be made to certain qualified growers of other produce, which are normally collected as the other produce is harvested and sold. The company generally requires asset liens and pledges of the season's produce as collateral to support these advances. If sales of the season's produce do not result in full repayment of the advance, the company may exercise the collateral provisions or renegotiate the terms, including terms of interest, to collect the remaining balance. The company also carries payables to growers related to revenue collected from the sale of the other produce that is subsequently remitted to the grower, less outstanding grower advances and a margin retained by the company based upon the terms of the contract. Grower payables of $11 million, $1 million and $12 million at June 30, 2012, December 31, 2011 and June 30, 2011, respectively, are included in "Accounts payable" in the Condensed Consolidated Balance Sheets.

The gross grower receivable balance includes $31 million (all of which is classified as long-term), $32 million (all of which is classified as long-term) and $39 million ($32 million of which is classified as long-term) related to a Chilean grower of grapes and other produce as of June 30, 2012, December 31, 2011 and June 30, 2011, respectively. In June 2011, the company recorded a reserve of $32 million for advances made to this Chilean grower. Late in 2011, the Chilean grower was declared bankrupt; the company continues to aggressively negotiate recovery with the bankruptcy trustee and other creditors of the grower.

The company provided seller financing in the 2009 sale of the former joint venture that sourced bananas and pineapples from the Philippines for sale in the Middle East and Asia. The financing for the sale of this joint venture is a note receivable in equal installments through 2019. Payments are current on this note receivable. The company also provided seller financing in the 2004 sale of its former Colombian subsidiary in the form of a note receivable, which was fully repaid in July 2012. The terms of the seller financing were based on the earnings power of the businesses sold.