Revenue

12 Months Ended

Mar. 27, 2021

Revenue [Abstract]

Revenue

Note 8 – Revenue

Automotive undercar repair, tire replacement sales and tire related 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 replacement sales and tire related 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.

Revenues
(thousands)		2021		2020		2019
Brakes	$	130,179	$	169,138	$	162,709
Exhaust		20,201		25,058		28,713
Steering		85,290		100,230		95,711
Tires (a)		617,815		634,513		601,295
Maintenance		269,337		324,494		308,668
Other		2,899		3,091		3,134
Total	$	1,125,721	$	1,256,524	$	1,200,230

(a) Includes the sale of tire road hazard warranty agreements and tire delivery commissions.

Revenue from the sale of tire road hazard warranty agreements 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 deferred revenue balances at March 27, 2021 and March 28, 2020 were $16.7 million and $18.5 million, respectively, of which $12.0 million and $13.1 million, respectively, are reported in Deferred revenue and $4.7 million and $5.4 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue
(thousands)		2021		2020
Balance at beginning of period	$	18,506	$	17,150
Deferral of revenue		14,958		17,466
Deferral of revenue from acquisitions		1,225		2,916
Recognition of revenue		(17,977)		(19,026)
Balance at end of period	$	16,712	$	18,506

We expect to recognize $12.0 million of deferred revenue related to road hazard warranty agreements during our fiscal year ending March 26, 2022, and $4.7 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.