Revenues

3 Months Ended

Jun. 24, 2023

Revenue [Abstract]

Revenue

Note 7 – Revenues

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 may 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	Three Months Ended
(thousands)	June 24, 2023		June 25, 2022
Tires (a)	$	152,128	$	173,064
Maintenance		92,913		90,292
Brakes		47,598		49,155
Steering		28,363		29,981
Exhaust		5,216		6,275
Other		750		768
Total	$	326,968	$	349,535

(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 June 24, 2023 and March 25, 2023 were $22.3 million and $22.4 million, respectively, of which $15.5 million and $15.4 million, respectively, are reported in Deferred revenue and $6.8 million and $7.0 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue
(thousands)
Balance at March 25, 2023	$	22,354
Deferral of revenue		5,529
Recognition of revenue		(5,571)
Balance at June 24, 2023	$	22,312

As of June 24, 2023, we expect to recognize $12.8 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2024, $7.6 million of deferred revenue during our fiscal year ending March 29, 2025, and $1.9 million of 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.