Note 5: Allowance for Credit Losses

As of April 26, 2014, and April 27, 2013, we had gross notes receivable of $4.3 million from six customers and $8.3 million from nine customers, respectively, with a corresponding allowance for credit losses of $0.2 million and $2.0 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. During the fiscal year ended April 26, 2014, $2.7 million of our notes receivable and a corresponding $1.9 million of allowance for credit losses were written off, primarily related to our acquisition of the assets of two independent La-Z-Boy Furniture Galleries® dealers during the year. Of the $4.3 million in notes receivable as of April 26, 2014, $0.7 million is expected to be repaid in the next twelve months, and was categorized as receivables in our consolidated balance sheet. As of April 27, 2013, $1.8 million of the $8.3 million in notes receivable were considered current and 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 26, 2014, and April 27, 2013:

(Amounts in thousands)	4/26/2014			4/27/2013
Beginning balance	$	1,986		$	1,537
Recoveries		—			(73	)
Write-offs		(1,888	)		—
Provision for credit losses		60			522
Ending balance	$	158		$	1,986