Revenue

12 Months Ended

Mar. 26, 2022

Revenue [Abstract]

Revenue

Note 8 – 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 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)		2022		2021		2020
Tires (a)	$	716,325	$	617,815	$	634,513
Maintenance		330,732		269,337		324,494
Brakes		174,854		130,179		169,138
Steering		109,793		85,290		100,230
Exhaust		24,398		20,201		25,058
Other		3,226		2,899		3,091
Total	$	1,359,328	$	1,125,721	$	1,256,524

(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 26, 2022 and March 27, 2021 were $20.6 million and $16.7 million, respectively, of which $14.2 million and $12.0 million, respectively, are reported in Deferred revenue and $6.4 million and $4.7 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue
(thousands)		2022		2021
Balance at beginning of period	$	16,712	$	18,506
Deferral of revenue		21,047		14,958
Deferral of revenue from acquisitions		2,156		1,225
Recognition of revenue		(19,283)		(17,977)
Balance at end of period	$	20,632	$	16,712

We expect to recognize $14.2 million of deferred revenue related to road hazard warranty agreements during our fiscal year ending March 25, 2023 and $6.4 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.