Note 2: Allowance for Credit Losses

As of April 28, 2012, and April 30, 2011, we had notes receivable of $10.3 million from 12 customers (including $2.7 million outstanding from our recently deconsolidated VIE) and $9.6 million from 16 customers, respectively, with a corresponding allowance for credit losses of $1.5 million and $2.1 million, respectively. We have collateral from these customers in the form of inventory 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 $10.3 million in notes receivable as of April 28, 2012, $1.9 million is expected to be repaid in the next twelve months, and was categorized as receivables in our consolidated balance sheet. As of April 30, 2011, $0.8 million of the $9.6 million in notes receivable were categorized as receivables in our consolidated balance sheet. The remainder of the notes receivables were categorized as other long-term assets, as was the allowance for credit losses.

The following is an analysis of the allowance for credit losses related to our notes receivable as of April 28, 2012, and April 30, 2011:


(Amounts in thousands)	4/28/2012			4/30/2011
Beginning balance	$	2,067		$	1,004
Write-offs		(1,231	)		(483	)
Recoveries		38			36
Provision for credit losses, net		749			1,586
Currency effect		(86	)		(76	)
Ending balance	$	1,537		$	2,067