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Revenues
 3 Months Ended
Jun. 29, 2024
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, commissions earned from the delivery of tires on behalf of certain tire vendors as well as 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

(thousands)

June 29, 2024

June 24, 2023

Tires (a)

$

139,215 

$

152,128 

Maintenance

83,060 

92,913 

Brakes

41,237 

47,598 

Steering

24,859 

28,363 

Exhaust

4,387 

5,216 

Franchise royalties

424 

750 

Total

$

293,182 

$

326,968 

(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 29, 2024 and March 30, 2024 were $21.2 million and $21.7 million, respectively, of which $14.9 million and $15.2 million, respectively, are reported in Deferred revenue and $6.3 million and $6.5 million, respectively, are reported in Other long-term liabilities in our Consolidated Balance Sheets.

Changes in Deferred Revenue

(thousands)

Balance at March 30, 2024

$

21,687 

Deferral of revenue

5,019 

Recognition of revenue

(5,475)

Balance at June 29, 2024

$

21,231 

As of June 29, 2024, we expect to recognize $12.3 million of deferred revenue related to road hazard warranty agreements in the remainder of fiscal 2025, $7.1 million of deferred revenue during our fiscal year ending March 28, 2026, and $1.8 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.