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Revenues
 9 Months Ended
Dec. 23, 2023
Revenues [Abstract]  
Revenues 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 and franchise royalties.

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 23, 2023

December 24, 2022

December 23, 2023

December 24, 2022

Tires (a)

$

161,116 

$

176,532 

$

467,069 

$

507,501 

Maintenance

84,179 

86,217 

267,325 

267,131 

Brakes

39,824 

41,396 

133,663 

137,613 

Steering

24,490 

25,379 

78,851 

82,973 

Exhaust

5,031 

5,006 

15,386 

17,202 

Franchise royalties

3,013 

663 

4,418 

2,126 

Total

$

317,653 

$

335,193 

$

966,712 

$

1,014,546 

(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 23, 2023 and March 25, 2023 were $22.1 million and $22.4 million, respectively, of which $15.4 million and $15.4 million, respectively, are reported in Deferred revenue and $6.7 million and $7.0 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue

(thousands)

Balance at March 25, 2023

$

22,354 

Deferral of revenue

16,480 

Recognition of revenue

(16,722)

Balance at December 23, 2023

$

22,112 

As of December 23, 2023, we expect to recognize $5.1 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2024, $12.4 million of deferred revenue during our fiscal year ending March 29, 2025, and $4.6 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.