Revenues

12 Months Ended

Mar. 25, 2023

Revenue [Abstract]

Revenue

Note 7 – Revenue

Automotive undercar repair, tire replacement sales and tire related services represent most 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 are 30 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)		2023		2022		2021
Tires (a)	$	655,113	$	716,325	$	617,815
Maintenance		356,936		330,732		269,337
Brakes		178,468		174,854		130,179
Steering		109,725		109,793		85,290
Exhaust		22,474		24,398		20,201
Other		2,666		3,226		2,899
Total	$	1,325,382	$	1,359,328	$	1,125,721

(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, typically 21 to 36 months. The deferred revenue balances at March 25, 2023 and March 26, 2022 were $22.4 million and $20.6 million, respectively, of which $15.4 million and $14.2 million, respectively, are reported in Deferred revenue and $7.0 million and $6.4 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue
(thousands)		2023		2022
Balance at beginning of period	$	20,632	$	16,712
Deferral of revenue		23,093		21,047
Deferral of revenue from acquisitions		—		2,156
Recognition of revenue		(21,371)		(19,283)
Balance at end of period	$	22,354	$	20,632

We expect to recognize $15.4 million of deferred revenue related to road hazard warranty agreements during our fiscal year ending March 30, 2024 and $7.0 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.