Note 2: Allowance for Credit Losses

As of July 30, 2011, we had notes receivable of $9.1 million from 15 customers, with a corresponding allowance for credit losses of $2.3 million. We have collateral from the customer in the form of inventory or real estate to support the carrying value of the notes receivable. We do not accrue interest income on these notes receivable, but we record interest income when it is received. Of the $9.1 million in notes receivable as of July 30, 2011, $1.2 million is expected to be repaid in the next twelve months and therefore was included in receivables.

The following is an analysis of the allowance for credit losses related to our notes receivable as of and for the three months ended July 30, 2011 and July 24, 2010:

(Unaudited, amounts in thousands)	7/30/2011		7/24/2010
Beginning balance	$	2,067	$	1,004
Write-offs		0		0
Provision for credit losses		242		(213	)
Ending balance	$	2,309	$	791