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Revenues
6 Months Ended
Sep. 26, 2020
Revenues [Abstract]  
Revenues NOTE 8 – REVENUES

Automotive undercar repair and tire sales and 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 and tire sales and 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 second 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 26, 2020 and March 28, 2020 were $16.3 million and $18.5 million, respectively, of which $11.8 million and $13.1 million, respectively, are reported in Deferred revenue and $4.5 million and $5.4 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 28, 2020 to September 26, 2020:

Dollars in

thousands

Balance at March 28, 2020

$

18,506

Deferral of revenue

6,908

Deferral of revenue from acquisitions

Recognition of revenue

(9,123)

Balance at September 26, 2020

$

16,291

We expect to recognize $7.2 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2021, $7.2 million of deferred revenue during our fiscal year ending March 26, 2022, 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. (Included in the Tires product group in the following table.)

The following table summarizes disaggregated revenue by product group:

Quarter Ended

Six Months Ended

September 26,

September 28,

September 26,

September 28,

2020

2019

2020

2019

(Dollars in thousands)

Revenues:

Brakes

$

35,489

$

46,538

$

64,053

$

93,314

Exhaust

5,710

7,108

10,142

14,061

Steering

21,565

26,178

40,033

52,410

Tires

154,505

158,805

291,775

312,870

Maintenance

70,486

84,641

128,106

166,815

Other

832

843

1,537

1,707

Total

$

288,587

$

324,113

$

535,646

$

641,177