XML 25 R14.htm IDEA: XBRL DOCUMENT v3.22.2
Revenue
 3 Months Ended
Jun. 25, 2022
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 25, 2022

June 26, 2021

Tires (a)

$

173,064 

$

176,229 

Maintenance

90,292 

84,459 

Brakes

49,155 

45,975 

Steering

29,981 

28,266 

Exhaust

6,275 

5,789 

Other

768 

1,100 

Total

$

349,535 

$

341,818 

(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 25, 2022 and March 26, 2022 were $21.1 million and $20.6 million, respectively, of which $14.5 million and $14.2 million, respectively, are reported in Deferred revenue and $6.6 million and $6.4 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue

(thousands)

Balance at March 26, 2022

$

20,632 

Deferral of revenue

5,665 

Recognition of revenue

(5,184)

Balance at June 25, 2022

$

21,113 

As of June 25, 2022, we expect to recognize $12.0 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2023, $7.2 million of deferred revenue during our fiscal year ending March 31, 2024, 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.