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Revenues
6 Months Ended
Sep. 28, 2019
Revenues [Abstract]  
Revenues Note 7 – Revenues

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 September 28, 2019 and March 30, 2019 were $18.6 million and $17.2 million, respectively, of which $13.0 million and $12.1 million, respectively, are reported in Deferred revenue and $5.6 million and $5.1 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 30, 2019 to September 28, 2019:

Dollars in

thousands

Balance at March 30, 2019

$

17,150

Deferral of revenue

8,862

Deferral of revenue from acquisitions

1,909

Recognition of revenue

(9,343)

Balance at September 28, 2019

$

18,578

We expect to recognize $7.9 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2020, $8.3 million of such deferred revenue during our fiscal year ending March 27, 2021, and $2.4 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. (Included in the Tires product group in the following table.)

The following table summarizes disaggregated revenue by product group:

Quarter Ended

Six Months Ended

Fiscal September

Fiscal September

2019

2018

2019

2018

(Dollars in thousands)

Revenues:

Brakes

$

46,201

$

44,380

$

93,314

$

87,128

Exhaust

7,431

8,264

14,061

15,623

Steering

25,847

23,873

52,410

48,671

Tires

159,142

150,522

312,870

291,252

Maintenance

84,649

79,271

166,815

158,632

Other

843

795

1,707

1,610

Total

$

324,113

$

307,105

$

641,177

$

602,916