Notes Receivable

12 Months Ended

Dec. 29, 2012

Notes Receivable

Note 4. Notes Receivable

The company provides direct financing to independent distributors for the purchase of the distributors’ territories and records the notes receivable on the consolidated balance sheet. The territories are financed for up to ten years. During fiscal years 2012, 2011 and 2010, $13.7 million, $13.1 million and $12.7 million, respectively, was recorded as interest income relating to the distributor notes. The distributor notes are collateralized by the independent distributors’ territories. Additional details are included in Note 13, Fair Value of Financial Instruments.