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Revenues
 9 Months Ended
Dec. 24, 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

Nine Months Ended

(thousands)

December 24, 2022

December 25, 2021

December 24, 2022

December 25, 2021

Tires (a)

$

176,532 

$

190,086 

$

507,501 

$

544,395 

Maintenance

86,217 

78,363 

267,131 

248,793 

Brakes

41,396 

41,556 

137,613 

135,704 

Steering

25,379 

25,894 

82,973 

82,246 

Exhaust

5,006 

5,107 

17,202 

17,477 

Other

663 

775 

2,126 

2,683 

Total

$

335,193 

$

341,781 

$

1,014,546 

$

1,031,298 

(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 December 24, 2022 and March 26, 2022 were $22.5 million and $20.6 million, respectively, of which $15.5 million and $14.2 million, respectively, are reported in Deferred revenue and $7.0 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

17,775 

Recognition of revenue

(15,875)

Balance at December 24, 2022

$

22,532 

As of December 24, 2022, we expect to recognize $5.0 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2023, $12.6 million of deferred revenue during our fiscal year ending March 30, 2024, and $4.9 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.