NOTE 7 – REVENUE

Automotive undercar repair, tire sales and tire services represent the vast majority of our revenues. We also earn revenue from the sale of tire road hazard warranty agreements as well as commissions earned from the delivery of tires on behalf of certain tire vendors.

Revenue from automotive undercar repair, tire sales and tire services is recognized at the time the customers take possession of their vehicle or merchandise. For sales to certain customers that are financed through the offering of credit on account, payment terms are established for customers based on our pre-established credit requirements. Payment terms vary depending on the customer and generally range from 15 to 45 days. Based on the nature of receivables, no significant financing components exist. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. We estimate the reduction to sales and cost of sales for returns based on current sales levels and our historical return experience. Such amounts are immaterial to our Consolidated Financial Statements.

Revenue from the sale of tire road hazard warranty agreements (included in the Tires product group in the table below) is initially deferred and is recognized over the contract period as costs are expected to be incurred in performing such services, typically 21 to 36 months. The amounts recorded for deferred revenue balances at March 30, 2019 and March 31, 2018 were $17.2 million, of which $12.1 million and $11.9 million, respectively, are reported in Deferred revenue and $5.1 million and $5.3 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

The following table summarizes deferred revenue related to road hazard warranty agreements from March 31, 2018 to March 30, 2019:



	Dollars in thousands
Balance at March 31, 2018	$	17,182
Deferral of revenue		16,702
Deferral of revenue from acquisitions		753
Recognition of revenue		(17,487)
Balance at March 30, 2019	$	17,150

We expect to recognize $12.1 million of deferred revenue related to road hazard warranty agreements during our fiscal year ending March 28, 2020, and $5.1 million of such deferred revenue thereafter.

Under various arrangements, we receive from certain tire vendors a delivery commission and reimbursement for the cost of the tire that we may deliver to customers on behalf of the tire vendor. The commission we earn from these transactions is as an agent and the net amount retained is recorded as sales. (Included in the Tires product group in the following table.)

The following table summarizes disaggregated revenue by product group:



	Year Ended Fiscal March
	2019		2018
	(Dollars in thousands)
Revenues:
Brakes	$	162,709	$	146,082
Exhaust		28,713		26,969
Steering		95,711		94,391
Tires		601,295		560,398
Maintenance		308,668		296,658
Other		3,134		3,317
Total	$	1,200,230	$	1,127,815