Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 30, 2021 | Dec. 31, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-31420 | |
Entity Registrant Name | CARMAX, INC. | |
Entity Central Index Key | 0001170010 | |
Current Fiscal Year End Date | --02-28 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1821055 | |
Entity Address, Address Line One | 12800 Tuckahoe Creek Parkway | |
Entity Address, City or Town | Richmond, | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23238 | |
City Area Code | 804 | |
Local Phone Number | 747-0422 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | KMX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 161,679,866 |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
SALES AND OPERATING REVENUES: | ||||
NET SALES AND OPERATING REVENUES | $ 8,527,759 | $ 5,184,944 | $ 24,213,717 | $ 13,785,892 |
TOTAL COST OF SALES | 7,691,199 | 4,553,514 | 21,637,164 | 12,048,136 |
GROSS PROFIT | 836,560 | 631,430 | 2,576,553 | 1,737,756 |
CARMAX AUTO FINANCE INCOME | 165,968 | 176,445 | 607,732 | 374,590 |
Selling, general and administrative expenses | 575,930 | 430,781 | 1,704,285 | 1,197,595 |
Depreciation, Depletion and Amortization, Nonproduction | 54,428 | 48,016 | 157,107 | 145,126 |
Interest expense | 24,303 | 19,462 | 67,247 | 65,889 |
Other (income) expense | (8,094) | (887) | (35,453) | 728 |
Earnings before income taxes | 355,961 | 310,503 | 1,291,099 | 703,008 |
Income tax provision | 86,523 | 75,203 | 299,638 | 166,034 |
NET EARNINGS | $ 269,438 | $ 235,300 | $ 991,461 | $ 536,974 |
WEIGHTED AVERAGE COMMON SHARES: | ||||
Basic, shares | 162,006 | 163,732 | 162,710 | 163,278 |
Diluted, shares | 164,873 | 165,773 | 165,606 | 164,976 |
NET EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 1.66 | $ 1.44 | $ 6.09 | $ 3.29 |
Diluted (in dollars per share) | $ 1.63 | $ 1.42 | $ 5.99 | $ 3.25 |
Used vehicle sales | ||||
SALES AND OPERATING REVENUES: | ||||
NET SALES AND OPERATING REVENUES | $ 6,435,590 | $ 4,209,748 | $ 18,697,300 | $ 11,385,183 |
TOTAL COST OF SALES | 5,927,237 | 3,791,134 | 17,085,416 | 10,223,875 |
Wholesale vehicle sales | ||||
SALES AND OPERATING REVENUES: | ||||
NET SALES AND OPERATING REVENUES | 1,922,283 | 828,362 | 4,998,212 | 1,990,296 |
TOTAL COST OF SALES | 1,710,103 | 713,961 | 4,411,175 | 1,669,595 |
Total other sales and revenues | ||||
SALES AND OPERATING REVENUES: | ||||
NET SALES AND OPERATING REVENUES | 169,886 | 146,834 | 518,205 | 410,413 |
TOTAL COST OF SALES | $ 53,859 | $ 48,419 | $ 140,573 | $ 154,666 |
NET SALES AND OPERATING REVENUES | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 100.00% | 100.00% | 100.00% | 100.00% |
TOTAL COST OF SALES | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 90.20% | 87.80% | 89.40% | 87.40% |
GROSS PROFIT | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 9.80% | 12.20% | 10.60% | 12.60% |
CARMAX AUTO FINANCE INCOME | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 1.90% | 3.40% | 2.50% | 2.70% |
Selling, general and administrative expenses | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 6.80% | 8.30% | 7.00% | 8.70% |
Depreciation and Amortization, Nonproduction | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 0.60% | 0.90% | 0.60% | 1.10% |
Interest expense | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 0.30% | 0.40% | 0.30% | 0.50% |
Other (income) expense | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | (0.10%) | 0.00% | (0.10%) | 0.00% |
Earnings before income taxes | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 4.20% | 6.00% | 5.30% | 5.10% |
Income tax provision | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 1.00% | 1.50% | 1.20% | 1.20% |
NET EARNINGS | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 3.20% | 4.50% | 4.10% | 3.90% |
NET SALES AND OPERATING REVENUES | Used vehicle sales | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 75.50% | 81.20% | 77.20% | 82.60% |
NET SALES AND OPERATING REVENUES | Wholesale vehicle sales | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 22.50% | 16.00% | 20.60% | 14.40% |
NET SALES AND OPERATING REVENUES | Total other sales and revenues | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 2.00% | 2.80% | 2.10% | 3.00% |
TOTAL COST OF SALES | Used vehicle sales | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 69.50% | 73.10% | 70.60% | 74.20% |
TOTAL COST OF SALES | Wholesale vehicle sales | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 20.10% | 13.80% | 18.20% | 12.10% |
TOTAL COST OF SALES | Total other sales and revenues | ||||
Percentage of Sales | ||||
Item as a percent of net sales and operating revenues | 0.60% | 0.90% | 0.60% | 1.10% |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET EARNINGS | $ 269,438 | $ 235,300 | $ 991,461 | $ 536,974 |
Other comprehensive income (loss), net of taxes: | ||||
Net change in retirement benefit plan unrecognized actuarial losses | 659 | 727 | 1,976 | 2,183 |
Net change in cash flow hedge unrecognized losses | 11,383 | 6,775 | 16,414 | (5,036) |
Other comprehensive income (loss), net of taxes | 12,042 | 7,502 | 18,390 | (2,853) |
TOTAL COMPREHENSIVE INCOME | $ 281,480 | $ 242,802 | $ 1,009,851 | $ 534,121 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 62,598 | $ 132,319 |
Restricted cash from collections on auto loans receivable | 552,487 | 496,415 |
Accounts receivable, net | 563,135 | 239,070 |
Inventory | 4,659,460 | 3,157,159 |
Other current assets | 117,390 | 91,833 |
TOTAL CURRENT ASSETS | 5,955,070 | 4,116,796 |
Auto loans receivable, net of allowance for loan losses of $426,507 and $411,150 as of November 30, 2021 and February 28, 2021, respectively | 15,167,170 | 13,489,819 |
Property and equipment, net of accumulated depreciation of $1,542,238 and $1,414,264 as of November 30, 2021 and February 28, 2021, respectively | 3,175,577 | 3,055,563 |
Deferred Income Tax Assets, Net | 134,382 | 164,261 |
Operating lease assets | 543,645 | 431,652 |
Goodwill | 141,258 | 653 |
Other assets | 458,117 | 282,797 |
TOTAL ASSETS | 25,575,219 | 21,541,541 |
CURRENT LIABILITIES: | ||
Accounts payable | 936,556 | 799,333 |
Accrued expenses and other current liabilities | 530,592 | 415,465 |
Accrued income taxes | 518 | 218 |
Current portion of operating lease liabilities | 43,151 | 30,953 |
Current portion of long-term debt | 10,889 | 9,927 |
Current portion of non-recourse notes payable | 535,146 | 442,652 |
TOTAL CURRENT LIABILITIES | 2,056,852 | 1,698,548 |
Long-term debt, excluding current portion | 2,602,598 | 1,322,415 |
Non-recourse notes payable, excluding current portion | 14,856,266 | 13,297,504 |
Operating lease liabilities, excluding current portion | 529,821 | 423,618 |
Other liabilities | 419,886 | 434,843 |
TOTAL LIABILITIES | 20,465,423 | 17,176,928 |
Commitments and contingent liabilities | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.50 par value; 350,000,000 shares authorized; 161,871,923 and 163,172,333 shares issued and outstanding as of November 30, 2021 and February 28, 2021, respectively | 80,936 | 81,586 |
Capital in excess of par value | 1,672,728 | 1,513,821 |
Accumulated other comprehensive loss | (100,301) | (118,691) |
Retained earnings | 3,456,433 | 2,887,897 |
TOTAL SHAREHOLDERS’ EQUITY | 5,109,796 | 4,364,613 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 25,575,219 | $ 21,541,541 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
Statement of Financial Position [Abstract] | ||
Financing Receivable, Allowance for Credit Loss | $ 426,507 | $ 411,150 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 1,542,238 | $ 1,414,264 |
Common Stock, Par or Stated Value Per Share | $ 0.50 | $ 0.50 |
Common Stock, Shares Authorized | 350,000,000 | 350,000,000 |
Common Stock, Shares, Issued | 161,871,923 | 163,172,333 |
Common stock, shares outstanding | 161,871,923 | 163,172,333 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
OPERATING ACTIVITIES: | ||
Net earnings | $ 991,461 | $ 536,974 |
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 200,819 | 180,495 |
Share-based compensation expense | 108,962 | 73,946 |
Provision for loan losses | 87,342 | 156,147 |
Provision for cancellation reserves | 91,607 | 53,511 |
Deferred income tax provision (benefit) | 19,564 | (19,529) |
Other | (26,808) | 5,966 |
Net (increase) decrease in: | ||
Accounts receivable, net | (290,346) | 22,111 |
Inventory | (1,502,323) | 66,211 |
Other current assets | (13,615) | 29,478 |
Auto loans receivable, net | (1,764,693) | (73,827) |
Other assets | (18,309) | (8,151) |
Net increase (decrease) in: | ||
Accounts payable, accrued expenses and other current liabilities and accrued income taxes | 170,474 | (124,092) |
Other liabilities | (136,780) | (30,854) |
Net Cash Provided by (Used in) Operating Activities | (2,082,645) | 868,386 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (226,903) | (123,952) |
Proceeds from disposal of property and equipment | 260 | 1,846 |
Proceeds from Sales of Business, Affiliate and Productive Assets | 12,284 | 0 |
Purchases of investments | (13,676) | (2,709) |
Sales and returns of investments | 36,915 | 2,739 |
Payments to Acquire Businesses, Net of Cash Acquired | (241,563) | 0 |
Net Cash Provided by (Used in) Investing Activities | (432,683) | (122,076) |
FINANCING ACTIVITIES: | ||
Increase in short-term debt, net | 0 | 968 |
Proceeds from issuances of long-term debt | 5,804,200 | 1,562,300 |
Payments on long-term debt | (4,524,973) | (2,022,586) |
Cash paid for debt issuance costs | (14,473) | (12,797) |
Payments on finance lease obligations | (8,822) | (4,871) |
Issuances of non-recourse notes payable | 11,217,298 | 7,947,313 |
Payments on non-recourse notes payable | (9,565,649) | (7,940,254) |
Repurchase and retirement of common stock | (475,950) | (158,625) |
Equity issuances | 76,310 | 94,295 |
Net Cash Provided by (Used in) Financing Activities | 2,507,941 | (534,257) |
(Decrease) increase in cash, cash equivalents, and restricted cash | (7,387) | 212,053 |
Cash, cash equivalents, and restricted cash at beginning of year | 771,947 | 656,390 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 764,560 | 868,443 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS: | ||
Cash and cash equivalents | 62,598 | 236,643 |
Restricted cash from collections on auto loans receivable | 552,487 | 492,610 |
Restricted cash included in other assets | 149,475 | 139,190 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 764,560 | $ 868,443 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
BALANCE, SHARES at Feb. 29, 2020 | 163,081,000 | ||||
BALANCE at Feb. 29, 2020 | $ 3,768,875 | $ 81,541 | $ 1,348,988 | $ 2,488,417 | $ (150,071) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cummulative Effect | Accounting Standards Update 2016-13 [Member] | (153,306) | (153,306) | |||
Net earnings | 4,978 | 4,978 | |||
Other Comprehensive Income (Loss), Net of Tax | (15,334) | (15,334) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 17,652 | 17,652 | |||
Stock Repurchased and Retired During Period, Shares | (515,000) | ||||
Stock Repurchased and Retired During Period, Value | (40,709) | $ (258) | (4,271) | (36,180) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 35,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 1,706 | $ 18 | 1,688 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 154,000 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (5,552) | $ 77 | (5,629) | ||
BALANCE, SHARES at May. 31, 2020 | 162,755,000 | ||||
BALANCE at May. 31, 2020 | 3,578,310 | $ 81,378 | 1,358,428 | 2,303,909 | (165,405) |
BALANCE, SHARES at Feb. 29, 2020 | 163,081,000 | ||||
BALANCE at Feb. 29, 2020 | 3,768,875 | $ 81,541 | 1,348,988 | 2,488,417 | (150,071) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 536,974 | ||||
Other Comprehensive Income (Loss), Net of Tax | (2,853) | ||||
BALANCE, SHARES at Nov. 30, 2020 | 163,034,000 | ||||
BALANCE at Nov. 30, 2020 | 4,128,476 | $ 81,517 | 1,462,130 | 2,737,753 | (152,924) |
BALANCE, SHARES at May. 31, 2020 | 162,755,000 | ||||
BALANCE at May. 31, 2020 | 3,578,310 | $ 81,378 | 1,358,428 | 2,303,909 | (165,405) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 296,696 | 296,696 | |||
Other Comprehensive Income (Loss), Net of Tax | 4,979 | 4,979 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 12,568 | 12,568 | |||
Stock Repurchased and Retired During Period, Shares | 0 | ||||
Stock Repurchased and Retired During Period, Value | 0 | $ 0 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,403,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 90,019 | $ 701 | 89,318 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 4,000 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (12) | $ 2 | (14) | ||
BALANCE, SHARES at Aug. 31, 2020 | 164,162,000 | ||||
BALANCE at Aug. 31, 2020 | 3,982,560 | $ 82,081 | 1,460,300 | 2,600,605 | (160,426) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 235,300 | 235,300 | |||
Other Comprehensive Income (Loss), Net of Tax | 7,502 | 7,502 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 9,942 | 9,942 | |||
Stock Repurchased and Retired During Period, Shares | (1,176,000) | ||||
Stock Repurchased and Retired During Period, Value | (109,249) | $ (588) | (10,509) | (98,152) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 43,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 2,570 | $ 21 | 2,549 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 5,000 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (149) | $ 3 | (152) | ||
BALANCE, SHARES at Nov. 30, 2020 | 163,034,000 | ||||
BALANCE at Nov. 30, 2020 | $ 4,128,476 | $ 81,517 | 1,462,130 | 2,737,753 | (152,924) |
BALANCE, SHARES at Feb. 28, 2021 | 163,172,333 | 163,172,000 | |||
BALANCE at Feb. 28, 2021 | $ 4,364,613 | $ 81,586 | 1,513,821 | 2,887,897 | (118,691) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 436,756 | 436,756 | |||
Other Comprehensive Income (Loss), Net of Tax | 2,937 | 2,937 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 20,102 | 20,102 | |||
Stock Repurchased and Retired During Period, Shares | (998,000) | ||||
Stock Repurchased and Retired During Period, Value | (124,542) | $ (499) | (9,348) | (114,695) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 375,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 21,590 | $ 187 | 21,403 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 254,000 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (17,975) | $ 127 | (18,102) | ||
BALANCE, SHARES at May. 31, 2021 | 162,803,000 | ||||
BALANCE at May. 31, 2021 | $ 4,703,481 | $ 81,401 | 1,527,876 | 3,209,958 | (115,754) |
BALANCE, SHARES at Feb. 28, 2021 | 163,172,333 | 163,172,000 | |||
BALANCE at Feb. 28, 2021 | $ 4,364,613 | $ 81,586 | 1,513,821 | 2,887,897 | (118,691) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 991,461 | ||||
Other Comprehensive Income (Loss), Net of Tax | $ 18,390 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (1,249,000) | ||||
BALANCE, SHARES at Nov. 30, 2021 | 161,871,923 | 161,872,000 | |||
BALANCE at Nov. 30, 2021 | $ 5,109,796 | $ 80,936 | 1,672,728 | 3,456,433 | (100,301) |
BALANCE, SHARES at May. 31, 2021 | 162,803,000 | ||||
BALANCE at May. 31, 2021 | 4,703,481 | $ 81,401 | 1,527,876 | 3,209,958 | (115,754) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 285,267 | 285,267 | |||
Other Comprehensive Income (Loss), Net of Tax | 3,411 | 3,411 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 14,116 | 14,116 | |||
Adjustments to Additional Paid in Capital, Other | 90,183 | ||||
Stock Issued During Period, Value, Acquisitions | 90,571 | $ 388 | |||
Stock Issued During Period, Shares, Acquisitions | 776,000 | ||||
Stock Repurchased and Retired During Period, Shares | (1,754,000) | ||||
Stock Repurchased and Retired During Period, Value | (220,045) | $ (877) | (17,164) | (202,004) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 621,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 38,496 | $ 311 | 38,185 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 24,000 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (118) | $ 12 | (130) | ||
BALANCE, SHARES at Aug. 31, 2021 | 162,470,000 | ||||
BALANCE at Aug. 31, 2021 | 4,915,179 | $ 81,235 | 1,653,066 | 3,293,221 | (112,343) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 269,438 | 269,438 | |||
Other Comprehensive Income (Loss), Net of Tax | 12,042 | 12,042 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 12,347 | 12,347 | |||
Stock Repurchased and Retired During Period, Shares | (851,000) | ||||
Stock Repurchased and Retired During Period, Value | (115,346) | $ (425) | (8,695) | (106,226) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 253,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 16,223 | $ 126 | 16,097 | ||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ (87) | $ 0 | (87) | ||
BALANCE, SHARES at Nov. 30, 2021 | 161,871,923 | 161,872,000 | |||
BALANCE at Nov. 30, 2021 | $ 5,109,796 | $ 80,936 | $ 1,672,728 | $ 3,456,433 | $ (100,301) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental Cash Flow Information Supplemental disclosures of cash flow information: Nine Months Ended November 30 (In thousands) 2021 2020 Non-cash investing and financing activities: Increase (decrease) in accrued capital expenditures $ 9,933 $ (28,862) See Note 14 for supplemental cash flow information related to leases. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | Nine Months Ended November 30 (In thousands) 2021 2020 Non-cash investing and financing activities: Increase (decrease) in accrued capital expenditures $ 9,933 $ (28,862) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information Supplemental Cash Flow Information - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | ||
Capital Expenditures Incurred but Not yet Paid | $ 9,933 | $ (28,862) |
Background
Background | 9 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Accounting Policies [Text Block] | Background Business. CarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries, is the nation’s largest and most profitable retailer of used vehicles. We operate in two reportable segments: CarMax Sales Operations and CarMax Auto Finance (“CAF”). Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax. On June 1, 2021, we completed the acquisition of Edmunds Holding Company (“Edmunds”), which does not meet the quantitative thresholds to be considered a reportable segment. See Note 17 for additional information on our reportable segments and Note 2 for additional information regarding our acquisition of Edmunds. We deliver an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and services at competitive, no-haggle prices using a customer-friendly sales process. Our omni-channel platform, which gives us the largest addressable market in the used car industry, empowers our retail customers to buy a car on their terms – online, in-store or a seamless combination of both. Customers can choose to complete the car-buying experience in-person at one of our stores; or buy the car online and receive delivery through express pickup, available nationwide, or home delivery, available to most customers. We offer customers a range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of retail vehicle purchases through CAF and third-party finance providers; the sale of extended protection plan (“EPP”) products, which include extended service plans (“ESPs”) and guaranteed asset protection (“GAP”); and vehicle repair service. Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site or virtual wholesale auctions. Basis of Presentation and Use of Estimates. The accompanying interim unaudited consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such interim consolidated financial statements reflect all normal recurring adjustments considered necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year. The accounting policies followed in the presentation of our interim financial results are consistent with those included in the company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021 (the “2021 Annual Report”), with the exception of those related to recent accounting pronouncements adopted in the current fiscal year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our 2021 Annual Report. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. In particular, the novel coronavirus (“COVID-19”) pandemic continues to have an adverse impact on global economic conditions and may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, downward adjustments to investments in equity securities, asset impairment charges, the effectiveness of the company’s hedging instruments, deferred tax valuation allowances, cancellation reserves, actuarial losses on our retirement benefit plans and discount rate assumptions. Depreciation and amortization previously included in selling, general, and administrative expenses is now separately presented on the consolidated statements of earnings. Prior period amounts have been reclassified to conform to the current period’s presentation. Depreciation and amortization related to other areas of our business, including cost of sales and CAF, is included in its respective line item on the consolidated statements of earnings. Certain other prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. Recent Accounting Pronouncements. Effective in Future Periods In October 2021, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement (ASU 2021-08) related to accounting for acquired revenue contracts with customers in a business combination. The amendments in this update address diversity in practice and inconsistency related to recognition of an acquired contract liability and the effect of payment terms on subsequent revenue recognition for the acquirer. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We plan to adopt this pronouncement for our fiscal year beginning March 1, 2023, and we do not expect it to have a material effect on our consolidated financial statements. In November 2021, the FASB issued an accounting pronouncement (ASU 2021-10) related to government assistance disclosures. The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. We plan to adopt this pronouncement for our fiscal year beginning March 1, 2022, and we do not expect it to have a material effect on our consolidated financial statements. |
Business Combinations and Asset
Business Combinations and Asset Acquisitions | 3 Months Ended |
Nov. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination Disclosure | On June 1, 2021, we completed the acquisition of Edmunds Holding Company, one of the most well established and trusted online guides for automotive information and a recognized leader in digital car shopping innovations. With this acquisition, CarMax has enhanced its digital capabilities and further strengthened its role and reach across the used auto ecosystem while adding exceptional technology and creative talent. Edmunds continues to operate independently and remains focused on delivering confidence to consumers and excellent value to its dealer and OEM clients. Additionally, this acquisition allows both businesses to accelerate their respective capabilities to deliver an enhanced digital experience to their customers by leveraging Edmunds’ compelling content and technology, CarMax’s unparalleled national scale and infrastructure, and the combined talent of both businesses. The acquisition was accounted for in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, and, accordingly, Edmunds’ results of operations have been consolidated in our financial statements since the date of acquisition. We recorded a preliminary allocation of the purchase price to assets acquired and liabilities assumed based on their estimated fair values as of June 1, 2021. The transaction costs associated with the acquisition were approximately $8.0 million and were expensed as incurred within selling, general and administrative expenses. The following table summarizes the total purchase consideration: (In thousands) Total cash consideration for outstanding shares $ 251,047 Fair value of common stock (1) 90,571 Fair value of preexisting relationship 60,200 Total $ 401,818 (1) Represents the issuance of 776,097 shares of CarMax common stock to Edmunds equity holders, the fair value of which was based on the market value of CarMax common stock as of market close on the acquisition date (June 1, 2021). In January 2020, we acquired a minority stake in Edmunds for $50 million. The noncontrolling equity investment in Edmunds was remeasured at a fair value of $60.2 million prior to the acquisition of the remaining ownership stake on June 1, 2021, which resulted in the recognition of a gain of $8.7 million. The gain is included in other income in the consolidated statements of earnings. The following table summarizes the estimated preliminary fair values of the assets acquired and liabilities assumed at the date of the acquisition and is subject to final fair value determination: (In thousands) Fair Value Cash $ 9,484 Accounts receivable, net 33,719 Other current assets 2,397 Property and equipment, net 20,741 Goodwill (1) 141,258 Intangible assets 218,000 Operating lease assets 97,250 Other assets 191 Total assets acquired 523,040 Accounts payable 5,063 Accrued expenses and other current liabilities 11,277 Current portion of operating lease liabilities 12,795 Deferred income taxes (1) 3,823 Operating lease liabilities, excluding current portion 88,264 Total liabilities assumed 121,222 Net assets acquired $ 401,818 (1) During the third quarter of fiscal 2022, we obtained new information about facts and circumstances that existed as of the acquisition date, which resulted in a change in the fair value of assets and liabilities recognized. The adjustments were primarily related to research and development tax credits, which resulted in a decrease in goodwill and a decrease in deferred income taxes of $8.4 million. The excess of purchase consideration over the fair value of net identifiable assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to expected synergies and the assembled workforce of the acquired business and is not deductible for tax purposes. The fair values assigned to the net identifiable assets and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received. The primary areas that remain preliminary relate to the fair values of intangible assets acquired, certain identifiable assets and liabilities acquired, and income and non-income based taxes and residual goodwill. We expect to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. Identifiable intangible assets were recognized at their estimated acquisition date fair values. The preliminary fair value of identifiable intangible assets was determined by using certain estimates and assumptions that are not observable in the market. The preliminary fair values of the trade name asset and the internally developed software asset were determined using the relief-from-royalty method, and the preliminary fair value of the customer relationships asset was determined using the excess earnings method. These income-based approaches included significant assumptions such as the amount and timing of projected cash flows, growth rates, customer attrition rates, discount rates, and the assessment of the asset’s life cycle. The preliminary estimated fair value and estimated remaining useful lives of identifiable intangible assets are as follows: Preliminary (In thousands) Useful Life (Years) Fair Value Trade name Indefinite $ 31,900 Internally developed software 7 52,900 Customer relationships 17 133,200 Identifiable intangible assets $ 218,000 The operating results of Edmunds have been included in our consolidated financial statements since the date of the acquisition. Net sales and operating revenues and net earnings attributable to Edmunds were not material for the reporting periods presented. Our pro forma results as if the acquisition had taken place on the first day of fiscal 2021 would not be materially different from the amounts reflected in the accompanying consolidated financial statements, and therefore are not presented. |
Revenue
Revenue | 9 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue We recognize revenue when control of the good or service has been transferred to the customer, generally either at the time of sale or upon delivery to a customer. Our contracts have a fixed contract price and revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. We collect sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale. These taxes are accounted for on a net basis and are not included in net sales and operating revenues or cost of sales. We generally expense sales commissions when incurred because the amortization period would have been less than one year. These costs are recorded within selling, general and administrative expenses. We do not have any significant payment terms as payment is received at or shortly after the point of sale. Disaggregation of Revenue Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 2020 2021 2020 Used vehicle sales $ 6,435.6 $ 4,209.7 $ 18,697.3 $ 11,385.2 Wholesale vehicle sales 1,922.3 828.4 4,998.2 1,990.3 Other sales and revenues: Extended protection plan revenues 106.6 101.7 353.8 294.5 Third-party finance fees, net 1.6 (10.6) (0.3) (36.7) Advertising & subscription revenues (1) 33.3 — 67.9 — Service revenues 19.7 24.6 62.9 70.6 Other 8.7 31.1 33.9 82.0 Total other sales and revenues 169.9 146.8 518.2 410.4 Total net sales and operating revenues $ 8,527.8 $ 5,184.9 $ 24,213.7 $ 13,785.9 (1) Excludes intersegment revenues that have been eliminated in consolidation. See Note 17 for further details. Used Vehicle Sales. Revenue from the sale of used vehicles is recognized upon transfer of control of the vehicle to the customer. As part of our customer service strategy, we guarantee the retail vehicles we sell with a 30-day/1,500 mile, money-back guarantee. We record a reserve for estimated returns based on historical experience and trends. The reserve for estimated returns is presented gross on the consolidated balance sheets, with a return asset recorded in other current assets and a refund liability recorded in accrued expenses and other current liabilities. We also guarantee the used vehicles we sell with a 90-day/4,000 mile limited warranty. These warranties are deemed assurance-type warranties and are accounted for as warranty obligations. See Note 16 for additional information on this warranty and its related obligation. Wholesale Vehicle Sales. Wholesale vehicles are sold at our auctions, and revenue from the sale of these vehicles is recognized upon transfer of control of the vehicle to the customer. Dealers also pay a fee to us based on the sale price of the vehicles they purchase. This fee is recognized as revenue at the time of sale. While we provide condition disclosures on each wholesale vehicle sold, the vehicles are subject to a limited right of return. We record a reserve for estimated returns based on historical experience and trends. The reserve for estimated returns is presented gross on the consolidated balance sheets, with a return asset recorded in other current assets and a refund liability recorded in accrued expenses and other current liabilities. EPP Revenues. We also sell ESP and GAP products on behalf of unrelated third parties, who are primarily responsible for fulfilling the contract, to customers who purchase a retail vehicle. The ESPs we currently offer on all used vehicles provide coverage up to 60 months (subject to mileage limitations), while GAP covers the customer for the term of their finance contract. We recognize revenue, on a net basis, at the time of sale. We also record a reserve, or refund liability, for estimated contract cancellations. The reserve for cancellations is evaluated for each product and is based on forecasted forward cancellation curves utilizing historical experience, recent trends and credit mix of the customer base. Our risk related to contract cancellations is limited to the revenue that we receive. Cancellations fluctuate depending on the volume of EPP sales, customer financing default or prepayment rates, and shifts in customer behavior, including those related to changes in the coverage or term of the product. The current portion of estimated cancellation reserves is recognized as a component of accrued expenses and other current liabilities with the remaining amount recognized in other liabilities. See Note 8 for additional information on cancellation reserves. We are contractually entitled to receive profit-sharing revenues based on the performance of the ESPs administered by third parties. These revenues are a form of variable consideration included in EPP revenues to the extent that it is probable that it will not result in a significant revenue reversal. An estimate of the amount to which we expect to be entitled, subject to various constraints, is recognized upon satisfying the performance obligation of selling the ESP. These constraints include factors that are outside of the company’s influence or control and the length of time until settlement. We apply the expected value method, utilizing historical claims and cancellation data from CarMax customers, as well as external data and other qualitative assumptions. This estimate is reassessed each reporting period with changes reflected in other sales and revenues on our consolidated statements of earnings and other assets on our consolidated balance sheets. As of November 30, 2021 and February 28, 2021, no current or long-term contract asset was recognized related to cumulative profit-sharing payments to which we expect to be entitled. Third-Party Finance Fees. Customers applying for financing who are not approved or are conditionally approved by CAF are generally evaluated by other third-party finance providers. These providers generally either pay us or are paid a fixed, pre-negotiated fee per contract. We recognize these fees at the time of sale. Advertising and Subscription Revenues. Advertising and subscription revenues consist of revenues earned by our Edmunds business. Advertising revenues are derived from advertising contracts with automotive manufacturers based on fixed fees per impression and fees for certain activities completed by customers on the manufacturers' websites. These fees are recognized in the period the impressions are delivered or certain activities occurred. Subscription revenues are derived from packages sold to automotive dealers that include car leads, inventory listings and enhanced placement in Edmunds' dealer locator and are recognized over the period that the services are made available to the dealers. Subscription revenues also include a digital marketing subscription service, which allows dealers to gain exposure on third party partner websites. Revenues for this service are recognized on a net basis. Service Revenues. Service revenue consists of labor and parts income related to vehicle repair service, including repairs of vehicles covered under an ESP we sell or warranty program. Service revenue is recognized at the time the work is completed. Other Revenues. |
CarMax Auto Finance
CarMax Auto Finance | 9 Months Ended |
Nov. 30, 2021 | |
CarMax Auto Finance Income [Abstract] | |
CarMax Auto Finance | CarMax Auto Finance CAF provides financing to qualified retail customers purchasing vehicles from CarMax. CAF provides us the opportunity to capture additional profits, cash flows and sales while managing our reliance on third-party finance sources. Management regularly analyzes CAF’s operating results by assessing profitability, the performance of the auto loans receivable, including trends in credit losses and delinquencies, and CAF direct expenses. This information is used to assess CAF’s performance and make operating decisions, including resource allocation. We typically use securitizations or other funding arrangements to fund loans originated by CAF. CAF income primarily reflects the interest and fee income generated by the auto loans receivable less the interest expense associated with the debt issued to fund these receivables, a provision for estimated loan losses and direct CAF expenses. CAF income does not include any allocation of indirect costs. Although CAF benefits from certain indirect overhead expenditures, we have not allocated indirect costs to CAF to avoid making subjective allocation decisions. Examples of indirect costs not allocated to CAF include retail store expenses and corporate expenses. In addition, except for auto loans receivable, which are disclosed in Note 5, CAF assets are not separately reported nor do we allocate assets to CAF because such allocation would not be useful to management in making operating decisions. Components of CAF Income Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 % (1) 2020 % (1) 2021 % (1) 2020 % (1) Interest margin: Interest and fee income $ 330.0 8.6 $ 288.5 8.5 $ 964.4 8.7 $ 851.1 8.5 Interest expense (53.6) (1.4) (77.1) (2.3) (180.0) (1.6) (243.0) (2.4) Total interest margin 276.4 7.2 211.4 6.3 784.4 7.1 608.1 6.1 Provision for loan losses (76.2) (2.0) (8.2) (0.2) (87.3) (0.8) (156.1) (1.6) Total interest margin after provision for loan losses 200.2 5.2 203.2 6.0 697.1 6.3 452.0 4.5 Total other expense — — — — — — (2.2) — Direct expenses: Payroll and fringe benefit expense (12.7) (0.3) (11.6) (0.3) (37.7) (0.3) (34.2) (0.3) Depreciation and amortization (2.4) (0.1) (0.2) — (2.8) — (0.6) — Other direct expenses (19.2) (0.5) (15.0) (0.4) (48.9) (0.4) (40.4) (0.4) Total direct expenses (34.3) (0.9) (26.8) (0.8) (89.4) (0.8) (75.2) (0.7) CarMax Auto Finance income $ 166.0 4.3 $ 176.4 5.2 $ 607.7 5.5 $ 374.6 3.7 Total average managed receivables $ 15,288.8 $ 13,517.5 $ 14,706.9 $ 13,381.6 |
Auto Loan Receivables
Auto Loan Receivables | 9 Months Ended |
Nov. 30, 2021 | |
Loans and Leases Receivable, Net Amount [Abstract] | |
Auto Loan Receivables | Auto Loans Receivable Auto loans receivable include amounts due from customers related to retail vehicle sales financed through CAF and are presented net of an allowance for estimated loan losses. These auto loans represent a large group of smaller-balance homogeneous loans, which we consider to be part of one class of financing receivable and one portfolio segment for purposes of determining our allowance for loan losses. We generally use warehouse facilities to fund auto loans receivable originated by CAF until we elect to fund them through an asset-backed term funding transaction, such as a term securitization or alternative funding arrangement. We recognize transfers of auto loans receivable into the warehouse facilities and asset-backed term funding transactions (together, “non-recourse funding vehicles”) as secured borrowings, which result in recording the auto loans receivable and the related non-recourse notes payable on our consolidated balance sheets. The majority of the auto loans receivable serve as collateral for the related non-recourse notes payable of $15.42 billion as of November 30, 2021 and $13.76 billion as of February 28, 2021. See Note 10 for additional information on non-recourse notes payable. Interest income and expenses related to auto loans are included in CAF income. Interest income on auto loans receivable is recognized when earned based on contractual loan terms. All loans continue to accrue interest until repayment or charge-off. When a charge-off occurs, accrued interest is written off by reversing interest income. Direct costs associated with loan originations are not considered material, and thus, are expensed as incurred. See Note 4 for additional information on CAF income. Auto Loans Receivable, Net As of November 30 As of February 28 (In millions) 2021 2021 Asset-backed term funding $ 11,725.4 $ 11,008.3 Warehouse facilities 3,155.9 2,314.1 Overcollateralization (1) 479.2 345.2 Other managed receivables (2) 163.5 179.6 Total ending managed receivables 15,524.0 13,847.2 Accrued interest and fees 73.7 57.4 Other (4.0) (3.7) Less: allowance for loan losses (426.5) (411.1) Auto loans receivable, net $ 15,167.2 $ 13,489.8 (1) Represents receivables restricted as excess collateral for the non-recourse funding vehicles. (2) Other managed receivables includes receivables not funded through the non-recourse funding vehicles. Credit Quality. When customers apply for financing, CAF’s proprietary scoring models rely on the customers’ credit history and certain application information to evaluate and rank their risk. We obtain credit histories and other credit data that includes information such as number, age, type of and payment history for prior or existing credit accounts. The application information that is used includes income, collateral value and down payment. The scoring models yield credit grades that represent the relative likelihood of repayment. Customers with the highest probability of repayment are A-grade customers. Customers assigned a lower grade are determined to have a lower probability of repayment. For loans that are approved, the credit grade influences the terms of the agreement, such as the required loan-to-value ratio and interest rate. After origination, credit grades are generally not updated. CAF uses a combination of the initial credit grades and historical performance to monitor the credit quality of the auto loans receivable on an ongoing basis. We validate the accuracy of the scoring models periodically. Loan performance is reviewed on a recurring basis to identify whether the assigned grades adequately reflect the customers’ likelihood of repayment. Ending Managed Receivables by Major Credit Grade As of November 30, 2021 Fiscal Year of Origination (1) (In millions) 2022 2021 2020 2019 2018 Prior to 2018 Total % (2) A $ 3,172.3 $ 1,999.2 $ 1,454.6 $ 693.7 $ 275.2 $ 57.6 $ 7,652.6 49.3 B 2,306.4 1,446.1 977.3 556.2 260.0 80.4 5,626.4 36.2 C and other 922.4 583.2 374.8 210.4 103.9 50.3 2,245.0 14.5 Total ending managed receivables $ 6,401.1 $ 4,028.5 $ 2,806.7 $ 1,460.3 $ 639.1 $ 188.3 $ 15,524.0 100.0 As of February 28, 2021 Fiscal Year of Origination (1) (In millions) 2021 2020 2019 2018 2017 Prior to 2017 Total % (2) A $ 2,782.0 $ 2,146.5 $ 1,146.7 $ 568.9 $ 199.6 $ 30.4 $ 6,874.1 49.6 B 1,993.6 1,424.5 870.1 476.0 195.5 49.2 5,008.9 36.2 C and other 786.1 541.6 320.4 182.0 99.8 34.3 1,964.2 14.2 Total ending managed receivables $ 5,561.7 $ 4,112.6 $ 2,337.2 $ 1,226.9 $ 494.9 $ 113.9 $ 13,847.2 100.0 (1) Classified based on credit grade assigned when customers were initially approved for financing. (2) Percent of total ending managed receivables. Allowance for Loan Losses. The allowance for loan losses at November 30, 2021 represents the net credit losses expected over the remaining contractual life of our managed receivables. The allowance for loan losses is determined using a net loss timing curve, primarily based on the composition of the portfolio of managed receivables and historical gross loss and recovery trends. Due to the fact that losses for receivables with less than 18 months of performance history can be volatile, our net loss estimate weights both historical losses by credit grade at origination and actual loss data on the receivables to-date, along with forward loss curves, in estimating future performance. Once the receivables have 18 months of performance history, the net loss estimate reflects actual loss experience of those receivables to date, along with forward loss curves, to predict future performance. The forward loss curves are constructed using historical performance data and show the average timing of losses over the course of a receivable’s life. The net loss estimate is calculated by applying the loss rates developed using the methods described above to the amortized cost basis of the managed receivables. The output of the net loss timing curve is adjusted to take into account reasonable and supportable forecasts about the future. Specifically, the change in U.S. unemployment rates and the National Automobile Dealers Association (“NADA”) used vehicle price index are used to predict changes in gross loss and recovery rate, respectively. An economic adjustment factor, based upon a single macroeconomic scenario, is developed to capture the relationship between changes in these forecasts and changes in gross loss and recovery rates. This factor is applied to the output of the net loss timing curve for the reasonable and supportable forecast period of two years. After the end of this two-year period, we revert to historical experience on a straight-line basis over a period of 12 months. We periodically consider whether the use of alternative metrics would result in improved model performance and revise the models when appropriate. We also consider whether qualitative adjustments are necessary for factors that are not reflected in the quantitative methods but impact the measurement of estimated credit losses. Such adjustments include the uncertainty of the impacts of recent economic trends on customer behavior. The change in the allowance for loan losses is recognized through an adjustment to the provision for loan losses. Allowance for Loan Losses Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 % (1) 2020 % (1) 2021 % (1) 2020 % (1) Balance as of beginning of period $ 398.1 2.66 $ 432.5 3.23 $ 411.1 2.97 $ 157.8 1.16 Adoption of CECL — — — 202.0 Adjusted balance as of beginning of period 398.1 2.66 432.5 3.23 411.1 2.97 359.8 2.64 Charge-offs (68.2) (49.9) (153.7) (174.5) Recoveries (2) 20.4 40.8 81.8 90.2 Provision for loan losses 76.2 8.2 87.3 156.1 Balance as of end of period (3) $ 426.5 2.75 $ 431.6 3.17 $ 426.5 2.75 $ 431.6 3.17 (1) Percent of total ending managed receivables. (2) Net of costs incurred to recover vehicle. (3) The allowance for loan losses primarily relates to estimated losses on CAF’s core receivables; $40.8 million and $31.8 million of the total allowance relates to the outstanding CAF Tier 3 loan balances as of November 30, 2021 and February 28, 2021, respectively. During the first nine months of fiscal 2022, the allowance for loan losses increased $15.4 million, primarily reflecting growth in receivables, partially offset by favorable loan loss performance during the year. Although net charge-offs remained low in the first nine months of fiscal 2022, the future impact of the COVID-19 environment on credit losses remains uncertain. As a result, we determined that the quantitative loss rates should be qualitatively adjusted to reflect future loss performance from potential customer hardship and to mitigate the quantitative impact of recent favorable loss performance, as we do not believe the favorable loss performance this fiscal year is consistent with our best estimate of expected future losses. The allowance for loan losses as of November 30, 2021 reflects both the positive customer payment behavior compared to historical experience recently observed as well as the unpredictability of the current macroeconomic environment. Past Due Receivables. An account is considered delinquent when the related customer fails to make a substantial portion of a scheduled payment on or before the due date. In general, accounts are charged-off on the last business day of the month during which the earliest of the following occurs: the receivable is 120 days or more delinquent as of the last business day of the month, the related vehicle is repossessed and liquidated, or the receivable is otherwise deemed uncollectible. For purposes of determining impairment, auto loans are evaluated collectively, as they represent a large group of smaller-balance homogeneous loans, and therefore, are not individually evaluated for impairment. Past Due Receivables As of November 30, 2021 Major Credit Grade (In millions) A B C & Other Total % (1) Current $ 7,617.6 $ 5,373.2 $ 1,938.8 $ 14,929.6 96.17 Delinquent loans: 31-60 days past due 23.0 160.4 179.7 363.1 2.34 61-90 days past due 9.2 74.5 102.3 186.0 1.20 Greater than 90 days past due 2.8 18.3 24.2 45.3 0.29 Total past due 35.0 253.2 306.2 594.4 3.83 Total ending managed receivables $ 7,652.6 $ 5,626.4 $ 2,245.0 $ 15,524.0 100.00 As of February 28, 2021 Major Credit Grade (In millions) A B C & Other Total % (1) Current $ 6,847.2 $ 4,840.3 $ 1,767.2 $ 13,454.7 97.17 Delinquent loans: 31-60 days past due 17.3 108.9 120.0 246.2 1.78 61-90 days past due 7.0 48.4 64.5 119.9 0.86 Greater than 90 days past due 2.6 11.3 12.5 26.4 0.19 Total past due 26.9 168.6 197.0 392.5 2.83 Total ending managed receivables $ 6,874.1 $ 5,008.9 $ 1,964.2 $ 13,847.2 100.00 |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 9 Months Ended |
Nov. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments And Hedging Activities | Derivative Instruments and Hedging Activities We use derivatives to manage certain risks arising from both our business operations and economic conditions, particularly with regard to issuances of debt. Primary exposures include LIBOR and other rates used as benchmarks in our securitizations and other debt financing. We enter into derivative instruments to manage exposures related to the future known receipt or payment of uncertain cash amounts, the values of which are impacted by interest rates, and generally designate these derivative instruments as cash flow hedges for accounting purposes. In certain cases, we may choose not to designate a derivative instrument as a cash flow hedge for accounting purposes due to uncertainty around the probability that future hedged transactions will occur. Our derivative instruments are used to manage (i) differences in the amount of our known or expected cash receipts and our known or expected cash payments principally related to the funding of our auto loans receivable, and (ii) exposure to variable interest rates associated with our term loan. For the derivatives associated with our non-recourse funding vehicles that are designated as cash flow hedges, the changes in fair value are initially recorded in accumulated other comprehensive loss (“AOCL”). For the majority of these derivatives, the amounts are subsequently reclassified into CAF income in the period that the hedged forecasted transaction affects earnings, which occurs as interest expense is recognized on those future issuances of debt. During the next 12 months, we estimate that an additional $9.0 million will be reclassified in AOCL as a decrease to CAF income. Changes in fair value related to derivatives that have not been designated as cash flow hedges for accounting purposes are recognized in the income statement in the period in which the change occurs. For the three and nine months ended November 30, 2021, we recognized income of $3.4 million and $3.2 million, respectively, in CAF income representing these changes in fair value. As of November 30, 2021 and February 28, 2021, we had interest rate swaps outstanding with a combined notional amount of $4.03 billion and $2.43 billion, respectively, that were designated as cash flow hedges of interest rate risk. As of November 30, 2021 and February 28, 2021, we had interest rate swaps outstanding with notional amounts of $644.2 million and $255.2 million, respectively, that were not designated as cash flow hedges. See Note 7 for discussion of fair values of financial instruments and Note 13 for the effect on comprehensive income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or, if none exists, the most advantageous market, for the specific asset or liability at the measurement date (referred to as the “exit price”). The fair value should be based on assumptions that market participants would use, including a consideration of nonperformance risk. We assess the inputs used to measure fair value using the three-tier hierarchy. The hierarchy indicates the extent to which inputs used in measuring fair value are observable in the market. Level 1 Inputs include unadjusted quoted prices in active markets for identical assets or liabilities that we can access at the measurement date. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets in active markets, quoted prices from identical or similar assets in inactive markets and observable inputs such as interest rates and yield curves. Level 3 Inputs that are significant to the measurement that are not observable in the market and include management’s judgments about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations and reviews by senior management. Valuation Methodologies Money Market Securities. Money market securities are cash equivalents, which are included in cash and cash equivalents, restricted cash from collections on auto loans receivable and other assets. They consist of highly liquid investments with original maturities of three months or less and are classified as Level 1. Mutual Fund Investments. Mutual fund investments consist of publicly traded mutual funds that primarily include diversified equity investments in large-, mid- and small-cap domestic and international companies or investment grade debt securities. The investments, which are included in other assets, are held in a rabbi trust established to fund informally our executive deferred compensation plan and are classified as Level 1. Derivative Instruments. The fair values of our derivative instruments are included in either other current assets, other assets, accounts payable or other liabilities. Our derivatives are not exchange-traded and are over-the-counter customized derivative instruments. All of our derivative exposures are with highly rated bank counterparties. We measure derivative fair values assuming that the unit of account is an individual derivative instrument and that derivatives are sold or transferred on a stand-alone basis. We estimate the fair value of our derivatives using quotes determined by the derivative counterparties and third-party valuation services. Quotes from third-party valuation services and quotes received from bank counterparties project future cash flows and discount the future amounts to a present value using market-based expectations for interest rates and the contractual terms of the derivative instruments. The models do not require significant judgment and model inputs can typically be observed in a liquid market; however, because the models include inputs other than quoted prices in active markets, all derivatives are classified as Level 2. Our derivative fair value measurements consider assumptions about counterparty and our own nonperformance risk. We monitor counterparty and our own nonperformance risk and, in the event that we determine that a party is unlikely to perform under terms of the contract, we would adjust the derivative fair value to reflect the nonperformance risk. Items Measured at Fair Value on a Recurring Basis As of November 30, 2021 (In thousands) Level 1 Level 2 Total Assets: Money market securities $ 705,326 $ — $ 705,326 Mutual fund investments 25,650 — 25,650 Derivative instruments designated as hedges — 10,566 10,566 Derivative instruments not designated as hedges — 3,671 3,671 Total assets at fair value $ 730,976 $ 14,237 $ 745,213 Percent of total assets at fair value 98.1 % 1.9 % 100.0 % Percent of total assets 2.9 % 0.1 % 2.9 % Liabilities: Derivative instruments designated as hedges $ — $ (4,561) $ (4,561) Total liabilities at fair value $ — $ (4,561) $ (4,561) Percent of total liabilities — % — % — % As of February 28, 2021 (In thousands) Level 1 Level 2 Total Assets: Money market securities $ 685,585 $ — $ 685,585 Mutual fund investments 24,049 — 24,049 Derivative instruments designated as hedges — 4,061 4,061 Derivative instruments not designated as hedges — 501 501 Total assets at fair value $ 709,634 $ 4,562 $ 714,196 Percent of total assets at fair value 99.4 % 0.6 % 100.0 % Percent of total assets 3.3 % — % 3.3 % Liabilities: Derivative instruments designated as hedges $ — $ (6,024) $ (6,024) Total liabilities at fair value $ — $ (6,024) $ (6,024) Percent of total liabilities — % — % — % Fair Value of Financial Instruments The carrying value of our cash and cash equivalents, accounts receivable, other restricted cash deposits and accounts payable approximates fair value due to the short-term nature and/or variable rates associated with these financial instruments. Auto loans receivable are presented net of an allowance for estimated loan losses. We believe that the carrying value of our revolving credit facility and term loan approximates fair value due to the variable rates associated with these obligations. The fair value of our senior unsecured notes, which are not carried at fair value on our consolidated balance sheets, was determined using Level 2 inputs based on quoted market prices. The carrying value and fair value of the senior unsecured notes as of November 30, 2021 and February 28, 2021, respectively, are as follows: (In thousands) As of November 30, 2021 As of February 28, 2021 Carrying value $ 500,000 $ 500,000 Fair value $ 542,176 $ 556,993 |
Cancellation Reserves
Cancellation Reserves | 9 Months Ended |
Nov. 30, 2021 | |
Cancellation Reserves [Abstract] | |
Cancellation Reserves | Cancellation Reserves We recognize revenue for EPP products, on a net basis, at the time of sale. We also record a reserve, or refund liability, for estimated contract cancellations. Cancellations of these services may result from early termination by the customer, or default or prepayment on the finance contract. The reserve for cancellations is evaluated for each product and is based on forecasted forward cancellation curves utilizing historical experience, recent trends and the credit mix of the customer base. Cancellation Reserves Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 2020 2021 2020 Balance as of beginning of period $ 144.3 $ 122.6 $ 124.5 $ 117.9 Cancellations (25.2) (17.4) (68.3) (48.3) Provision for future cancellations 28.7 17.9 91.6 53.5 Balance as of end of period $ 147.8 $ 123.1 $ 147.8 $ 123.1 The current portion of estimated cancellation reserves is recognized as a component of accrued expenses and other current liabilities with the remaining amount recognized in other liabilities. As of November 30, 2021 and February 28, 2021, the current portion of cancellation reserves was $79.8 million and $58.7 million, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We had $29.5 million of gross unrecognized tax benefits as of November 30, 2021, and $29.0 million as of February 28, 2021. There were no significant changes to the gross unrecognized tax benefits as reported for the fiscal year ended February 28, 2021. |
Debt
Debt | 3 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt (In thousands) As of November 30 As of February 28 Debt Description (1) Maturity Date 2021 2021 Revolving credit facility (2) June 2024 $ 588,100 $ — Term loan (2) June 2024 300,000 300,000 Term loan (2) October 2026 699,318 — 3.86% Senior notes April 2023 100,000 100,000 4.17% Senior notes April 2026 200,000 200,000 4.27% Senior notes April 2028 200,000 200,000 Financing obligations Various dates through February 2059 527,260 533,578 Non-recourse notes payable Various dates through August 2028 15,416,457 13,764,808 Total debt 18,031,135 15,098,386 Less: current portion (546,035) (452,579) Less: unamortized debt issuance costs (26,236) (25,888) Long-term debt, net $ 17,458,864 $ 14,619,919 (1) Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually. (2) Borrowings accrue interest at variable rates based on the Eurodollar rate (LIBOR), or the successor benchmark rate, the federal funds rate, or the prime rate, depending on the type of borrowing. Revolving Credit Facility. Borrowings under our $1.45 billion unsecured revolving credit facility (the “credit facility”) are available for working capital and general corporate purposes. We pay a commitment fee on unused portions of the available funds. Borrowings under the credit facility are either due “on demand” or at maturity depending on the type of borrowing. Borrowings with “on demand” repayment terms are presented as short-term debt, while amounts due at maturity are presented as long-term debt. As of November 30, 2021, the unused capacity of $861.9 million was fully available to us. In December 2021, we exercised the accordion feature to increase the credit limit of this facility to $2.00 billion with no other material changes to the terms of the agreement. Term Loans. On October 15, 2021, we entered into a term loan agreement for an aggregate principal amount of $700 million, which will mature on October 15, 2026. Borrowings under both our $300 million and $700 million term loans are available for working capital and general corporate purposes. Both term loans were classified as long-term debt, as no repayments are scheduled to be made within the next 12 months. Senior Notes. Borrowings under our unsecured senior notes totaling $500 million are available for working capital and general corporate purposes. These notes were classified as long-term debt as no repayments are scheduled to be made within the next 12 months. Financing Obligations. Financing obligations relate to stores subject to sale-leaseback transactions that did not qualify for sale accounting. The financing obligations were structured at varying interest rates and generally have initial lease terms ranging from 15 to 20 years with payments made monthly. We have not entered into any new sale-leaseback transactions since fiscal 2009. In the event the agreements are modified or extended beyond their original term, the related obligation is adjusted based on the present value of the revised future payments, with a corresponding change to the assets subject to these transactions. Upon modification, the amortization of the obligation is reset, resulting in more of the payments being applied to interest expense in the initial years following the modification. Non-Recourse Notes Payable. The non-recourse notes payable relate to auto loans receivable funded through non-recourse funding vehicles. The timing of principal payments on the non-recourse notes payable is based on the timing of principal collections and defaults on the related auto loans receivable. The current portion of non-recourse notes payable represents principal payments that are due to be distributed in the following period. Notes payable related to our asset-backed term funding transactions accrue interest predominantly at fixed rates and have scheduled maturities through August 2028, but may mature earlier, depending upon the repayment rate of the underlying auto loans receivable. Information on our funding vehicles for non-recourse notes payable as of November 30, 2021, are as follows: (In billions) Capacity Warehouse facilities: December 2021 expiration $ 0.18 February 2022 expiration 2.35 August 2022 expiration 2.30 Combined warehouse facility limit $ 4.83 Unused capacity $ 1.67 Non-recourse notes payable outstanding: Warehouse facilities $ 3.16 Asset-backed term funding transactions 12.26 Non-recourse notes payable $ 15.42 We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. The return requirements of warehouse facility investors could fluctuate significantly depending on market conditions. At renewal, the cost, structure and capacity of the facilities could change. These changes could have a significant impact on our funding costs. See Note 5 for additional information on the related auto loans receivable. Capitalized Interest. We capitalize interest in connection with the construction of certain facilities. For the nine months ended November 30, 2021 and 2020, we capitalized interest of $5.0 million and $2.1 million, respectively. Financial Covenants. The credit facility, term loans and senior note agreements contain representations and warranties, conditions and covenants. We must also meet financial covenants in conjunction with certain financing obligations. The agreements governing our non-recourse funding vehicles contain representations and warranties, financial covenants and performance triggers. As of November 30, 2021, we were in compliance with all financial covenants and our non-recourse funding vehicles were in compliance with the related performance triggers. |
Stock and Stock-Based Incentive
Stock and Stock-Based Incentive Plans Stock And Stock-Based Incentive Plans | 9 Months Ended |
Nov. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock and Stock-Based Incentive Plans | Stock and Stock-Based Incentive Plans (A) Share Repurchase Program As of November 30, 2021, a total of $2.0 billion of board authorizations for repurchases of our common stock was outstanding, with no expiration date, of which $876.2 million remained available for repurchase. Common Stock Repurchases Three Months Ended Nine Months Ended November 30 November 30 2021 2020 2021 2020 Number of shares repurchased (in thousands) 851.1 1,175.8 3,602.8 1,691.3 Average cost per share $ 135.52 $ 92.90 $ 127.65 $ 88.65 Available for repurchase, as of end of period (in millions) $ 876.2 $ 1,402.4 $ 876.2 $ 1,402.4 (B) Share-Based Compensation Composition of Share-Based Compensation Expense Three Months Ended Nine Months Ended November 30 November 30 (In thousands) 2021 2020 2021 2020 Cost of sales $ 1,896 $ 11 $ 5,719 $ 3,202 CarMax Auto Finance income 1,560 938 4,749 3,750 Selling, general and administrative expenses 33,328 10,728 100,453 68,680 Share-based compensation expense, before income taxes $ 36,784 $ 11,677 $ 110,921 $ 75,632 Composition of Share-Based Compensation Expense – By Grant Type Three Months Ended Nine Months Ended November 30 November 30 (In thousands) 2021 2020 2021 2020 Nonqualified stock options $ 7,846 $ 6,630 $ 27,375 $ 25,237 Cash-settled restricted stock units (RSUs) 23,836 1,210 62,398 33,784 Stock-settled market stock units (MSUs) 3,171 3,161 11,260 12,516 Other share-based incentives: Stock-settled performance stock units (PSUs) 964 112 5,334 378 Restricted stock (RSAs) 365 39 670 106 Stock-settled deferred stock units (DSUs) — — 1,925 1,925 Employee stock purchase plan 602 525 1,959 1,686 Total other share-based incentives $ 1,931 $ 676 $ 9,888 $ 4,095 Share-based compensation expense, before income taxes $ 36,784 $ 11,677 $ 110,921 $ 75,632 (C) Stock Incentive Plan Information Share/Unit Activity Nine Months Ended November 30, 2021 Equity Classified Liability Classified (Shares/units in thousands) Options MSUs Other RSUs Outstanding as of February 28, 2021 6,266 520 84 1,606 Granted 922 82 89 377 Exercised or vested and converted (1,249) (197) (2) (715) Cancelled (78) (11) (2) (78) Outstanding as of November 30, 2021 5,861 394 169 1,190 Weighted average grant date fair value per share/unit: Granted $ 42.31 $ 178.16 $ 132.96 $ 136.48 Ending outstanding $ 23.75 $ 112.21 $ 108.30 $ 93.44 As of November 30, 2021 Unrecognized compensation (in millions) $ 54.4 $ 17.5 $ 4.8 |
Net Earnings Per Share
Net Earnings Per Share | 9 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share Basic net earnings per share is computed by dividing net earnings available for basic common shares by the weighted average number of shares of common stock outstanding. Diluted net earnings per share is computed by dividing net earnings available for diluted common shares by the sum of weighted average number of shares of common stock outstanding and dilutive potential common stock. Diluted net earnings per share is calculated using the “if-converted” treasury stock method. Basic and Dilutive Net Earnings Per Share Reconciliations Three Months Ended Nine Months Ended November 30 November 30 (In thousands except per share data) 2021 2020 2021 2020 Net earnings $ 269,438 $ 235,300 $ 991,461 $ 536,974 Weighted average common shares outstanding 162,006 163,732 162,710 163,278 Dilutive potential common shares: Stock options 2,373 1,636 2,391 1,341 Stock-settled stock units and awards 494 405 505 357 Weighted average common shares and dilutive potential common shares 164,873 165,773 165,606 164,976 Basic net earnings per share $ 1.66 $ 1.44 $ 6.09 $ 3.29 Diluted net earnings per share $ 1.63 $ 1.42 $ 5.99 $ 3.25 Certain options to purchase shares of common stock were outstanding and not included in the calculation of diluted net earnings per share because their inclusion would have been antidilutive. On a weighted average basis, for the three months ended November 30, 2021 and 2020, options to purchase 776,853 shares and 115,509 shares of common stock, respectively, were not included. For the nine months ended November 30, 2021 and 2020, options to purchase 701,970 shares and 2,158,503 shares of common stock, respectively, were not included. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Nov. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in Accumulated Other Comprehensive Loss By Component Total Net Net Accumulated Unrecognized Unrecognized Other Actuarial Hedge Comprehensive (In thousands, net of income taxes) Losses Losses Loss Balance as of February 28, 2021 $ (92,662) $ (26,029) $ (118,691) Other comprehensive income before reclassifications — 6,386 6,386 Amounts reclassified from accumulated other comprehensive loss 1,976 10,028 12,004 Other comprehensive income 1,976 16,414 18,390 Balance as of November 30, 2021 $ (90,686) $ (9,615) $ (100,301) Changes In and Reclassifications Out of Accumulated Other Comprehensive Loss Three Months Ended November 30 Nine Months Ended November 30 (In thousands) 2021 2020 2021 2020 Retirement Benefit Plans: Actuarial loss amortization reclassifications recognized in net pension expense: Cost of sales $ 367 $ 402 $ 1,083 $ 1,212 CarMax Auto Finance income 21 27 64 83 Selling, general and administrative expenses 481 530 1,458 1,583 Total amortization reclassifications recognized in net pension expense 869 959 2,605 2,878 Tax expense (210) (232) (629) (695) Amortization reclassifications recognized in net pension expense, net of tax 659 727 1,976 2,183 Net change in retirement benefit plan unrecognized actuarial losses, net of tax 659 727 1,976 2,183 Cash Flow Hedges (Note 6): Changes in fair value 11,339 2,877 8,668 (21,906) Tax (expense) benefit (2,985) (761) (2,282) 5,793 Changes in fair value, net of tax 8,354 2,116 6,386 (16,113) Reclassifications to CarMax Auto Finance income 4,111 6,334 13,610 15,060 Tax expense (1,082) (1,675) (3,582) (3,983) Reclassification of hedge losses, net of tax 3,029 4,659 10,028 11,077 Net change in cash flow hedge unrecognized losses, net of tax 11,383 6,775 16,414 (5,036) Total other comprehensive income (loss), net of tax $ 12,042 $ 7,502 $ 18,390 $ (2,853) Changes in the funded status of our retirement plans and changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive loss. The cumulative balances are net of deferred taxes of $32.2 million as of November 30, 2021 and $38.7 million as of February 28, 2021. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases Our leases primarily consist of operating and finance leases related to retail stores, office space, land and equipment. We also have stores subject to sale-leaseback transactions that did not qualify for sale accounting and are accounted for as financing obligations. For more information on these financing obligations see Note 10. The initial term for real property leases is typically 5 to 20 years. For equipment leases, the initial term generally ranges from 3 to 8 years. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 20 years or more. We include options to renew (or terminate) in our lease term, and as part of our right-of-use (“ROU”) assets and lease liabilities, when it is reasonably certain that we will exercise that option. ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We include variable lease payments in the initial measurement of ROU assets and lease liabilities only to the extent they depend on an index or rate. Changes in such indices or rates are accounted for in the period the change occurs, and do not result in the remeasurement of the ROU asset or liability. We are also responsible for payment of certain real estate taxes, insurance and other expenses on our leases. These amounts are generally considered to be variable and are not included in the measurement of the ROU asset and lease liability. We generally account for non-lease components, such as maintenance, separately from lease components. For certain equipment leases, we apply a portfolio approach to account for the lease assets and liabilities. Our lease agreements do not contain any material residual value guarantees or material restricted covenants. Leases with a term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The components of lease expense were as follows: Three Months Ended November 30 Nine Months Ended November 30 (In thousands) 2021 2020 2021 2020 Operating lease cost (1) $ 20,581 $ 14,340 $ 53,631 $ 43,075 Finance lease cost: Depreciation of lease assets 3,383 2,149 9,784 5,523 Interest on lease liabilities 4,257 2,680 12,531 7,328 Total finance lease cost 7,640 4,829 22,315 12,851 Total lease cost $ 28,221 $ 19,169 $ 75,946 $ 55,926 (1) Includes short-term leases and variable lease costs, which are immaterial. Supplemental balance sheet information related to leases was as follows: As of November 30 As of February 28 (In thousands) Classification 2021 2021 Assets: Operating lease assets Operating lease assets $ 543,645 $ 431,652 Finance lease assets Property and equipment, net (1) 123,347 109,665 Total lease assets $ 666,992 $ 541,317 Liabilities: Current: Operating leases Current portion of operating lease liabilities $ 43,151 $ 30,953 Finance leases Accrued expenses and other current liabilities 9,696 9,422 Long-term: Operating leases Operating lease liabilities, excluding current portion 529,821 423,618 Finance leases Other liabilities 140,215 120,094 Total lease liabilities $ 722,883 $ 584,087 (1) Finance lease assets are recorded net of accumulated depreciation of $27.3 million as of November 30, 2021 and $17.5 million as of February 28, 2021. Lease term and discount rate information related to leases was as follows: As of November 30 As of February 28 Lease Term and Discount Rate 2021 2021 Weighted Average Remaining Lease Term (in years) Operating leases 17.45 19.37 Finance leases 12.78 13.56 Weighted Average Discount Rate Operating leases 4.80 % 5.36 % Finance leases 14.48 % 15.09 % Supplemental cash flow information related to leases was as follows: Nine Months Ended November 30 (In thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 51,527 $ 42,711 Operating cash flows from finance leases $ 8,086 $ 5,972 Financing cash flows from finance leases $ 8,822 $ 4,871 Lease assets obtained in exchange for lease obligations: Operating leases $ 45,491 $ 13,650 Finance leases $ 24,772 $ 30,596 Maturities of lease liabilities were as follows: As of November 30, 2021 (In thousands) Operating Leases (1) Finance Leases (1) Fiscal 2022, remaining $ 17,382 $ 6,142 Fiscal 2023 69,570 25,633 Fiscal 2024 69,053 30,569 Fiscal 2025 68,544 27,316 Fiscal 2026 63,015 27,925 Thereafter 626,442 212,443 Total lease payments 914,006 330,028 Less: interest (341,034) (180,117) Present value of lease liabilities $ 572,972 $ 149,911 (1) Lease payments exclude $13.4 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Nov. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities Litigation . On October 31, 2017, Joshua Sabanovich v. CarMax Superstores California, LLC et al., a putative class action, was filed in the Superior Court of California, County of Stanislaus asserting wage and hour claims with respect to CarMax sales consultants and non-exempt employees in California. The asserted claims include failure to pay minimum wage; provide meal periods and rest breaks; pay statutory/contractual wages; reimburse for work-related expenses and provide accurate itemized wage statements; unfair competition; and Private Attorneys General Act (“PAGA”) claims. The Sabanovich lawsuit seeks unspecified damages, restitution, statutory penalties, interest, cost and attorneys’ fees. Based upon our evaluation of information currently available, we believe that the ultimate resolution of the Sabanovich lawsuit will not have a material adverse effect on our financial condition, results of operations or cash flows. CarMax entities are defendants in three proceedings asserting wage and hour claims with respect to non-exempt CarMax employees in California. The asserted claims include failure to provide meal periods and rest breaks; pay statutory or contractual wages; reimburse for work-related expenses; and PAGA claims. Two of these claims have been filed in court, whereas one has yet to be filed in court. On July 9, 2021, Daniel Bendure v. CarMax Auto Superstores California, LLC et al., a putative class action, was filed in the Superior Court of California, County of San Bernardino. The Bendure lawsuit seeks civil penalties for violation of the Labor Code, attorneys’ fees, costs, restitution of unpaid wages, interest, injunctive and equitable relief, general damages, and special damages. On August 12, 2021, Jordon Miller v. CarMax Auto Superstores California, LLC et al., a putative class action, was filed in the Superior Court of California, County of Riverside. The Miller lawsuit also seeks civil penalties for violation of the Labor Code, attorneys’ fees, costs, restitution of unpaid wages, interest, injunctive and equitable relief, general damages, and special damages. On August 3, 2021, Charles Walker filed a notice with the California Labor Workforce Development Agency, which is a prerequisite to filing a PAGA action in court. To date, Walker has not yet filed a lawsuit. We are unable to make a reasonable estimate of the amount or range of loss that could result from an unfavorable outcome in these matters. The company was a class member in a consolidated and settled class action lawsuit (In re: Takata Airbag Product Liability Litigation (U.S. District Court, Southern District of Florida)) against Toyota, Mazda, Subaru, BMW, Honda, Nissan and Ford related to the economic loss associated with defective Takata airbags installed as original equipment in certain model vehicles from model years 2000-2018. On April 15, 2020, CarMax received $40.3 million in net recoveries from the Toyota, Mazda, Subaru, BMW, Honda and Nissan settlement funds. CarMax remains a class member for the Ford settlement fund. We are unable to make a reasonable estimate of the amount or range of gain that could result from CarMax’s participation in the Ford settlement fund. The company is a class member in a consolidated and settled class action lawsuit (In re: General Motors Ignition Switch Litigation (U.S. District Court, Southern District of New York)) against General Motors related to the economic loss associated with certain model vehicles previously subject to recall for ignition switches, electronic power steering, and side impact airbags, for model years 1997-2014. On November 30, 2021, CarMax received $22.6 million in net recoveries from the GM settlement fund. We are involved in various other legal proceedings in the normal course of business. Based upon our evaluation of information currently available, we believe that the ultimate resolution of any such proceedings will not have a material adverse effect, either individually or in the aggregate, on our financial condition, results of operations or cash flows. Other Matters. In accordance with the terms of real estate lease agreements, we generally agree to indemnify the lessor from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities and repairs to leased property upon termination of the lease. Additionally, in accordance with the terms of agreements entered into for the sale of properties, we generally agree to indemnify the buyer from certain liabilities and costs arising subsequent to the date of the sale, including environmental liabilities and liabilities resulting from the breach of representations or warranties made in accordance with the agreements. We do not have any known material environmental commitments, contingencies or other indemnification issues arising from these arrangements. As part of our customer service strategy, we guarantee the used vehicles we retail with a 90-day/4,000 mile limited warranty. A vehicle in need of repair within this period will be repaired free of charge. As a result, each vehicle sold has an implied liability associated with it. Accordingly, based on historical trends, we record a provision for estimated future repairs during the guarantee period for each vehicle sold. The liability for this guarantee was $19.3 million as of November 30, 2021, and $15.2 million as of February 28, 2021, and is included in accrued expenses and other current liabilities. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Nov. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Information We operate in two reportable segments: CarMax Sales Operations and CAF. Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax. We also have a non-reportable operating segment related to our recently acquired Edmunds business, which is reflected as “Other” in the segment tables below. Revenue generated by Edmunds primarily represents advertising and subscription revenues as discussed in Note 3. Edmunds also generates intersegment revenue as a result of transactions between Edmunds and CarMax Sales Operations, which represent arm’s length transactions at prevailing market prices. Such amounts are eliminated in consolidation. The performance of our CarMax Sales Operations segment is reviewed by our chief operating decision maker at the gross profit level, the components of which are presented in the tables below. Required segment information related to our CAF segment is presented in Note 4. Additionally, asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented. Segment Information Three Months Ended November 30, 2021 (In thousands) CarMax Sales Operations Other Eliminations Total Sales and operating revenues $ 8,494,437 $ 33,322 $ — $ 8,527,759 Intersegment sales and operating revenues — 7,973 (7,973) — Total sales and operating revenues $ 8,494,437 $ 41,295 $ (7,973) $ 8,527,759 Depreciation and amortization (1) $ 226 $ 2,489 $ — $ 2,715 Gross profit $ 809,998 $ 28,275 $ (1,713) $ 836,560 Reconciliation to Consolidated Earnings Before Taxes: CAF Income 165,968 Selling, general and administrative expenses (575,930) Depreciation and amortization (2) (54,428) Interest expense (24,303) Other income (expense) 8,094 Earnings before income taxes $ 355,961 Nine Months Ended November 30, 2021 (In thousands) CarMax Sales Operations Other Eliminations Total Sales and operating revenues $ 24,145,847 $ 67,870 $ — $ 24,213,717 Intersegment sales and operating revenues — 14,981 (14,981) — Total sales and operating revenues $ 24,145,847 $ 82,851 $ (14,981) $ 24,213,717 Depreciation and amortization (1) $ 526 $ 4,698 $ — $ 5,224 Gross profit $ 2,522,595 $ 57,348 $ (3,390) $ 2,576,553 Reconciliation to Consolidated Earnings Before Taxes: CAF Income 607,732 Selling, general and administrative expenses (1,704,285) Depreciation and amortization (2) (157,107) Interest expense (67,247) Other income (expense) 35,453 Earnings before income taxes $ 1,291,099 (1) Represents only the portion of depreciation and amortization recorded within Cost of sales, and thus included in the calculation of Gross profit. (2) Exclusive of depreciation and amortization recorded within Cost of sales. |
Background Basis of Accounting
Background Basis of Accounting (Policies) | 9 Months Ended |
Nov. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Business. CarMax, Inc. (“we,” “our,” “us,” “CarMax” and “the company”), including its wholly owned subsidiaries, is the nation’s largest and most profitable retailer of used vehicles. We operate in two reportable segments: CarMax Sales Operations and CarMax Auto Finance (“CAF”). Our CarMax Sales Operations segment consists of all aspects of our auto merchandising and service operations, excluding financing provided by CAF. Our CAF segment consists solely of our own finance operation that provides financing to customers buying retail vehicles from CarMax. On June 1, 2021, we completed the acquisition of Edmunds Holding Company (“Edmunds”), which does not meet the quantitative thresholds to be considered a reportable segment. See Note 17 for additional information on our reportable segments and Note 2 for additional information regarding our acquisition of Edmunds. We deliver an unrivaled customer experience by offering a broad selection of quality used vehicles and related products and services at competitive, no-haggle prices using a customer-friendly sales process. Our omni-channel platform, which gives us the largest addressable market in the used car industry, empowers our retail customers to buy a car on their terms – online, in-store or a seamless combination of both. Customers can choose to complete the car-buying experience in-person at one of our stores; or buy the car online and receive delivery through express pickup, available nationwide, or home delivery, available to most customers. We offer customers a range of related products and services, including the appraisal and purchase of vehicles directly from consumers; the financing of retail vehicle purchases through CAF and third-party finance providers; the sale of extended protection plan (“EPP”) products, which include extended service plans (“ESPs”) and guaranteed asset protection (“GAP”); and vehicle repair service. Vehicles purchased through the appraisal process that do not meet our retail standards are sold to licensed dealers through on-site or virtual wholesale auctions. |
Basis of Presentation | Basis of Presentation and Use of Estimates. The accompanying interim unaudited consolidated financial statements include the accounts of CarMax and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, such interim consolidated financial statements reflect all normal recurring adjustments considered necessary to present fairly the financial position and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full fiscal year. The accounting policies followed in the presentation of our interim financial results are consistent with those included in the company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021 (the “2021 Annual Report”), with the exception of those related to recent accounting pronouncements adopted in the current fiscal year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in our 2021 Annual Report. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. In particular, the novel coronavirus (“COVID-19”) pandemic continues to have an adverse impact on global economic conditions and may impact future estimates including, but not limited to, our allowance for loan losses, inventory valuations, fair value measurements, downward adjustments to investments in equity securities, asset impairment charges, the effectiveness of the company’s hedging instruments, deferred tax valuation allowances, cancellation reserves, actuarial losses on our retirement benefit plans and discount rate assumptions. Depreciation and amortization previously included in selling, general, and administrative expenses is now separately presented on the consolidated statements of earnings. Prior period amounts have been reclassified to conform to the current period’s presentation. Depreciation and amortization related to other areas of our business, including cost of sales and CAF, is included in its respective line item on the consolidated statements of earnings. Certain other prior year amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages may not total due to rounding. |
Recent Accounting Pronouncements | In October 2021, the Financial Accounting Standards Board (“FASB”) issued an accounting pronouncement (ASU 2021-08) related to accounting for acquired revenue contracts with customers in a business combination. The amendments in this update address diversity in practice and inconsistency related to recognition of an acquired contract liability and the effect of payment terms on subsequent revenue recognition for the acquirer. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We plan to adopt this pronouncement for our fiscal year beginning March 1, 2023, and we do not expect it to have a material effect on our consolidated financial statements. In November 2021, the FASB issued an accounting pronouncement (ASU 2021-10) related to government assistance disclosures. The amendments in this update increase the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. The update is effective for annual periods beginning after December 15, 2021. We plan to adopt this pronouncement for our fiscal year beginning March 1, 2022, and we do not expect it to have a material effect on our consolidated financial statements. |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Tables) | Jun. 01, 2021 |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of purchase consideration | (In thousands) Total cash consideration for outstanding shares $ 251,047 Fair value of common stock (1) 90,571 Fair value of preexisting relationship 60,200 Total $ 401,818 (1) Represents the issuance of 776,097 shares of CarMax common stock to Edmunds equity holders, the fair value of which was based on the market value of CarMax common stock as of market close on the acquisition date (June 1, 2021). |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | (In thousands) Fair Value Cash $ 9,484 Accounts receivable, net 33,719 Other current assets 2,397 Property and equipment, net 20,741 Goodwill (1) 141,258 Intangible assets 218,000 Operating lease assets 97,250 Other assets 191 Total assets acquired 523,040 Accounts payable 5,063 Accrued expenses and other current liabilities 11,277 Current portion of operating lease liabilities 12,795 Deferred income taxes (1) 3,823 Operating lease liabilities, excluding current portion 88,264 Total liabilities assumed 121,222 Net assets acquired $ 401,818 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Preliminary (In thousands) Useful Life (Years) Fair Value Trade name Indefinite $ 31,900 Internally developed software 7 52,900 Customer relationships 17 133,200 Identifiable intangible assets $ 218,000 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of Revenue Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 2020 2021 2020 Used vehicle sales $ 6,435.6 $ 4,209.7 $ 18,697.3 $ 11,385.2 Wholesale vehicle sales 1,922.3 828.4 4,998.2 1,990.3 Other sales and revenues: Extended protection plan revenues 106.6 101.7 353.8 294.5 Third-party finance fees, net 1.6 (10.6) (0.3) (36.7) Advertising & subscription revenues (1) 33.3 — 67.9 — Service revenues 19.7 24.6 62.9 70.6 Other 8.7 31.1 33.9 82.0 Total other sales and revenues 169.9 146.8 518.2 410.4 Total net sales and operating revenues $ 8,527.8 $ 5,184.9 $ 24,213.7 $ 13,785.9 (1) Excludes intersegment revenues that have been eliminated in consolidation. See Note 17 for further details. |
CarMax Auto Finance (Tables)
CarMax Auto Finance (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
CarMax Auto Finance Income [Abstract] | |
Components Of CarMax Auto Finance Income | Components of CAF Income Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 % (1) 2020 % (1) 2021 % (1) 2020 % (1) Interest margin: Interest and fee income $ 330.0 8.6 $ 288.5 8.5 $ 964.4 8.7 $ 851.1 8.5 Interest expense (53.6) (1.4) (77.1) (2.3) (180.0) (1.6) (243.0) (2.4) Total interest margin 276.4 7.2 211.4 6.3 784.4 7.1 608.1 6.1 Provision for loan losses (76.2) (2.0) (8.2) (0.2) (87.3) (0.8) (156.1) (1.6) Total interest margin after provision for loan losses 200.2 5.2 203.2 6.0 697.1 6.3 452.0 4.5 Total other expense — — — — — — (2.2) — Direct expenses: Payroll and fringe benefit expense (12.7) (0.3) (11.6) (0.3) (37.7) (0.3) (34.2) (0.3) Depreciation and amortization (2.4) (0.1) (0.2) — (2.8) — (0.6) — Other direct expenses (19.2) (0.5) (15.0) (0.4) (48.9) (0.4) (40.4) (0.4) Total direct expenses (34.3) (0.9) (26.8) (0.8) (89.4) (0.8) (75.2) (0.7) CarMax Auto Finance income $ 166.0 4.3 $ 176.4 5.2 $ 607.7 5.5 $ 374.6 3.7 Total average managed receivables $ 15,288.8 $ 13,517.5 $ 14,706.9 $ 13,381.6 |
Auto Loan Receivables (Tables)
Auto Loan Receivables (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Loans and Leases Receivable, Net Amount [Abstract] | |
Auto Loan Receivables, Net | Auto Loans Receivable, Net As of November 30 As of February 28 (In millions) 2021 2021 Asset-backed term funding $ 11,725.4 $ 11,008.3 Warehouse facilities 3,155.9 2,314.1 Overcollateralization (1) 479.2 345.2 Other managed receivables (2) 163.5 179.6 Total ending managed receivables 15,524.0 13,847.2 Accrued interest and fees 73.7 57.4 Other (4.0) (3.7) Less: allowance for loan losses (426.5) (411.1) Auto loans receivable, net $ 15,167.2 $ 13,489.8 (1) Represents receivables restricted as excess collateral for the non-recourse funding vehicles. (2) Other managed receivables includes receivables not funded through the non-recourse funding vehicles. |
Ending Managed Receivables By Major Credit Grade | Ending Managed Receivables by Major Credit Grade As of November 30, 2021 Fiscal Year of Origination (1) (In millions) 2022 2021 2020 2019 2018 Prior to 2018 Total % (2) A $ 3,172.3 $ 1,999.2 $ 1,454.6 $ 693.7 $ 275.2 $ 57.6 $ 7,652.6 49.3 B 2,306.4 1,446.1 977.3 556.2 260.0 80.4 5,626.4 36.2 C and other 922.4 583.2 374.8 210.4 103.9 50.3 2,245.0 14.5 Total ending managed receivables $ 6,401.1 $ 4,028.5 $ 2,806.7 $ 1,460.3 $ 639.1 $ 188.3 $ 15,524.0 100.0 As of February 28, 2021 Fiscal Year of Origination (1) (In millions) 2021 2020 2019 2018 2017 Prior to 2017 Total % (2) A $ 2,782.0 $ 2,146.5 $ 1,146.7 $ 568.9 $ 199.6 $ 30.4 $ 6,874.1 49.6 B 1,993.6 1,424.5 870.1 476.0 195.5 49.2 5,008.9 36.2 C and other 786.1 541.6 320.4 182.0 99.8 34.3 1,964.2 14.2 Total ending managed receivables $ 5,561.7 $ 4,112.6 $ 2,337.2 $ 1,226.9 $ 494.9 $ 113.9 $ 13,847.2 100.0 (1) Classified based on credit grade assigned when customers were initially approved for financing. (2) Percent of total ending managed receivables. |
Allowance For Loan Losses | Allowance for Loan Losses Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 % (1) 2020 % (1) 2021 % (1) 2020 % (1) Balance as of beginning of period $ 398.1 2.66 $ 432.5 3.23 $ 411.1 2.97 $ 157.8 1.16 Adoption of CECL — — — 202.0 Adjusted balance as of beginning of period 398.1 2.66 432.5 3.23 411.1 2.97 359.8 2.64 Charge-offs (68.2) (49.9) (153.7) (174.5) Recoveries (2) 20.4 40.8 81.8 90.2 Provision for loan losses 76.2 8.2 87.3 156.1 Balance as of end of period (3) $ 426.5 2.75 $ 431.6 3.17 $ 426.5 2.75 $ 431.6 3.17 (1) Percent of total ending managed receivables. (2) Net of costs incurred to recover vehicle. (3) The allowance for loan losses primarily relates to estimated losses on CAF’s core receivables; $40.8 million and $31.8 million of the total allowance relates to the outstanding CAF Tier 3 loan balances as of November 30, 2021 and February 28, 2021, respectively. |
Past Due Receivables | Past Due Receivables As of November 30, 2021 Major Credit Grade (In millions) A B C & Other Total % (1) Current $ 7,617.6 $ 5,373.2 $ 1,938.8 $ 14,929.6 96.17 Delinquent loans: 31-60 days past due 23.0 160.4 179.7 363.1 2.34 61-90 days past due 9.2 74.5 102.3 186.0 1.20 Greater than 90 days past due 2.8 18.3 24.2 45.3 0.29 Total past due 35.0 253.2 306.2 594.4 3.83 Total ending managed receivables $ 7,652.6 $ 5,626.4 $ 2,245.0 $ 15,524.0 100.00 As of February 28, 2021 Major Credit Grade (In millions) A B C & Other Total % (1) Current $ 6,847.2 $ 4,840.3 $ 1,767.2 $ 13,454.7 97.17 Delinquent loans: 31-60 days past due 17.3 108.9 120.0 246.2 1.78 61-90 days past due 7.0 48.4 64.5 119.9 0.86 Greater than 90 days past due 2.6 11.3 12.5 26.4 0.19 Total past due 26.9 168.6 197.0 392.5 2.83 Total ending managed receivables $ 6,874.1 $ 5,008.9 $ 1,964.2 $ 13,847.2 100.00 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Items Measured At Fair Value On A Recurring Basis | Items Measured at Fair Value on a Recurring Basis As of November 30, 2021 (In thousands) Level 1 Level 2 Total Assets: Money market securities $ 705,326 $ — $ 705,326 Mutual fund investments 25,650 — 25,650 Derivative instruments designated as hedges — 10,566 10,566 Derivative instruments not designated as hedges — 3,671 3,671 Total assets at fair value $ 730,976 $ 14,237 $ 745,213 Percent of total assets at fair value 98.1 % 1.9 % 100.0 % Percent of total assets 2.9 % 0.1 % 2.9 % Liabilities: Derivative instruments designated as hedges $ — $ (4,561) $ (4,561) Total liabilities at fair value $ — $ (4,561) $ (4,561) Percent of total liabilities — % — % — % As of February 28, 2021 (In thousands) Level 1 Level 2 Total Assets: Money market securities $ 685,585 $ — $ 685,585 Mutual fund investments 24,049 — 24,049 Derivative instruments designated as hedges — 4,061 4,061 Derivative instruments not designated as hedges — 501 501 Total assets at fair value $ 709,634 $ 4,562 $ 714,196 Percent of total assets at fair value 99.4 % 0.6 % 100.0 % Percent of total assets 3.3 % — % 3.3 % Liabilities: Derivative instruments designated as hedges $ — $ (6,024) $ (6,024) Total liabilities at fair value $ — $ (6,024) $ (6,024) Percent of total liabilities — % — % — % |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | (In thousands) As of November 30, 2021 As of February 28, 2021 Carrying value $ 500,000 $ 500,000 Fair value $ 542,176 $ 556,993 |
Cancellation Reserves (Tables)
Cancellation Reserves (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Cancellation Reserves [Abstract] | |
Schedule Of Cancellation Reserves Accrual | Cancellation Reserves Three Months Ended November 30 Nine Months Ended November 30 (In millions) 2021 2020 2021 2020 Balance as of beginning of period $ 144.3 $ 122.6 $ 124.5 $ 117.9 Cancellations (25.2) (17.4) (68.3) (48.3) Provision for future cancellations 28.7 17.9 91.6 53.5 Balance as of end of period $ 147.8 $ 123.1 $ 147.8 $ 123.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt | Debt (In thousands) As of November 30 As of February 28 Debt Description (1) Maturity Date 2021 2021 Revolving credit facility (2) June 2024 $ 588,100 $ — Term loan (2) June 2024 300,000 300,000 Term loan (2) October 2026 699,318 — 3.86% Senior notes April 2023 100,000 100,000 4.17% Senior notes April 2026 200,000 200,000 4.27% Senior notes April 2028 200,000 200,000 Financing obligations Various dates through February 2059 527,260 533,578 Non-recourse notes payable Various dates through August 2028 15,416,457 13,764,808 Total debt 18,031,135 15,098,386 Less: current portion (546,035) (452,579) Less: unamortized debt issuance costs (26,236) (25,888) Long-term debt, net $ 17,458,864 $ 14,619,919 (1) Interest is payable monthly, with the exception of our senior notes, which are payable semi-annually. (2) Borrowings accrue interest at variable rates based on the Eurodollar rate (LIBOR), or the successor benchmark rate, the federal funds rate, or the prime rate, depending on the type of borrowing. |
Schedule of Funding Vehicles [Table Text Block] | (In billions) Capacity Warehouse facilities: December 2021 expiration $ 0.18 February 2022 expiration 2.35 August 2022 expiration 2.30 Combined warehouse facility limit $ 4.83 Unused capacity $ 1.67 Non-recourse notes payable outstanding: Warehouse facilities $ 3.16 Asset-backed term funding transactions 12.26 Non-recourse notes payable $ 15.42 |
Stock and Stock-Based Incenti_2
Stock and Stock-Based Incentive Plans (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Common Stock Repurchases | Common Stock Repurchases Three Months Ended Nine Months Ended November 30 November 30 2021 2020 2021 2020 Number of shares repurchased (in thousands) 851.1 1,175.8 3,602.8 1,691.3 Average cost per share $ 135.52 $ 92.90 $ 127.65 $ 88.65 Available for repurchase, as of end of period (in millions) $ 876.2 $ 1,402.4 $ 876.2 $ 1,402.4 |
Composition of Share-Based Compensation Expense | Composition of Share-Based Compensation Expense Three Months Ended Nine Months Ended November 30 November 30 (In thousands) 2021 2020 2021 2020 Cost of sales $ 1,896 $ 11 $ 5,719 $ 3,202 CarMax Auto Finance income 1,560 938 4,749 3,750 Selling, general and administrative expenses 33,328 10,728 100,453 68,680 Share-based compensation expense, before income taxes $ 36,784 $ 11,677 $ 110,921 $ 75,632 |
Composition Of Share-Based Compensation Expense - By Grant Type | Composition of Share-Based Compensation Expense – By Grant Type Three Months Ended Nine Months Ended November 30 November 30 (In thousands) 2021 2020 2021 2020 Nonqualified stock options $ 7,846 $ 6,630 $ 27,375 $ 25,237 Cash-settled restricted stock units (RSUs) 23,836 1,210 62,398 33,784 Stock-settled market stock units (MSUs) 3,171 3,161 11,260 12,516 Other share-based incentives: Stock-settled performance stock units (PSUs) 964 112 5,334 378 Restricted stock (RSAs) 365 39 670 106 Stock-settled deferred stock units (DSUs) — — 1,925 1,925 Employee stock purchase plan 602 525 1,959 1,686 Total other share-based incentives $ 1,931 $ 676 $ 9,888 $ 4,095 Share-based compensation expense, before income taxes $ 36,784 $ 11,677 $ 110,921 $ 75,632 |
Share-based Payment Arrangement, Activity | Share/Unit Activity Nine Months Ended November 30, 2021 Equity Classified Liability Classified (Shares/units in thousands) Options MSUs Other RSUs Outstanding as of February 28, 2021 6,266 520 84 1,606 Granted 922 82 89 377 Exercised or vested and converted (1,249) (197) (2) (715) Cancelled (78) (11) (2) (78) Outstanding as of November 30, 2021 5,861 394 169 1,190 Weighted average grant date fair value per share/unit: Granted $ 42.31 $ 178.16 $ 132.96 $ 136.48 Ending outstanding $ 23.75 $ 112.21 $ 108.30 $ 93.44 As of November 30, 2021 Unrecognized compensation (in millions) $ 54.4 $ 17.5 $ 4.8 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic And Dilutive Net Earnings Per Share Reconciliations | Basic and Dilutive Net Earnings Per Share Reconciliations Three Months Ended Nine Months Ended November 30 November 30 (In thousands except per share data) 2021 2020 2021 2020 Net earnings $ 269,438 $ 235,300 $ 991,461 $ 536,974 Weighted average common shares outstanding 162,006 163,732 162,710 163,278 Dilutive potential common shares: Stock options 2,373 1,636 2,391 1,341 Stock-settled stock units and awards 494 405 505 357 Weighted average common shares and dilutive potential common shares 164,873 165,773 165,606 164,976 Basic net earnings per share $ 1.66 $ 1.44 $ 6.09 $ 3.29 Diluted net earnings per share $ 1.63 $ 1.42 $ 5.99 $ 3.25 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes In Accumulated Other Comprehensive Loss By Component | Changes in Accumulated Other Comprehensive Loss By Component Total Net Net Accumulated Unrecognized Unrecognized Other Actuarial Hedge Comprehensive (In thousands, net of income taxes) Losses Losses Loss Balance as of February 28, 2021 $ (92,662) $ (26,029) $ (118,691) Other comprehensive income before reclassifications — 6,386 6,386 Amounts reclassified from accumulated other comprehensive loss 1,976 10,028 12,004 Other comprehensive income 1,976 16,414 18,390 Balance as of November 30, 2021 $ (90,686) $ (9,615) $ (100,301) |
Changes In And Reclassifications Out Of Accumulated Other Comprehensive Loss | Changes In and Reclassifications Out of Accumulated Other Comprehensive Loss Three Months Ended November 30 Nine Months Ended November 30 (In thousands) 2021 2020 2021 2020 Retirement Benefit Plans: Actuarial loss amortization reclassifications recognized in net pension expense: Cost of sales $ 367 $ 402 $ 1,083 $ 1,212 CarMax Auto Finance income 21 27 64 83 Selling, general and administrative expenses 481 530 1,458 1,583 Total amortization reclassifications recognized in net pension expense 869 959 2,605 2,878 Tax expense (210) (232) (629) (695) Amortization reclassifications recognized in net pension expense, net of tax 659 727 1,976 2,183 Net change in retirement benefit plan unrecognized actuarial losses, net of tax 659 727 1,976 2,183 Cash Flow Hedges (Note 6): Changes in fair value 11,339 2,877 8,668 (21,906) Tax (expense) benefit (2,985) (761) (2,282) 5,793 Changes in fair value, net of tax 8,354 2,116 6,386 (16,113) Reclassifications to CarMax Auto Finance income 4,111 6,334 13,610 15,060 Tax expense (1,082) (1,675) (3,582) (3,983) Reclassification of hedge losses, net of tax 3,029 4,659 10,028 11,077 Net change in cash flow hedge unrecognized losses, net of tax 11,383 6,775 16,414 (5,036) Total other comprehensive income (loss), net of tax $ 12,042 $ 7,502 $ 18,390 $ (2,853) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Nov. 30, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Three Months Ended November 30 Nine Months Ended November 30 (In thousands) 2021 2020 2021 2020 Operating lease cost (1) $ 20,581 $ 14,340 $ 53,631 $ 43,075 Finance lease cost: Depreciation of lease assets 3,383 2,149 9,784 5,523 Interest on lease liabilities 4,257 2,680 12,531 7,328 Total finance lease cost 7,640 4,829 22,315 12,851 Total lease cost $ 28,221 $ 19,169 $ 75,946 $ 55,926 (1) Includes short-term leases and variable lease costs, which are immaterial. |
Supplemental Balance Sheet Disclosures [Text Block] | As of November 30 As of February 28 (In thousands) Classification 2021 2021 Assets: Operating lease assets Operating lease assets $ 543,645 $ 431,652 Finance lease assets Property and equipment, net (1) 123,347 109,665 Total lease assets $ 666,992 $ 541,317 Liabilities: Current: Operating leases Current portion of operating lease liabilities $ 43,151 $ 30,953 Finance leases Accrued expenses and other current liabilities 9,696 9,422 Long-term: Operating leases Operating lease liabilities, excluding current portion 529,821 423,618 Finance leases Other liabilities 140,215 120,094 Total lease liabilities $ 722,883 $ 584,087 (1) Finance lease assets are recorded net of accumulated depreciation of $27.3 million as of November 30, 2021 and $17.5 million as of February 28, 2021. |
Other Lease Disclosures [Table Text Block] | As of November 30 As of February 28 Lease Term and Discount Rate 2021 2021 Weighted Average Remaining Lease Term (in years) Operating leases 17.45 19.37 Finance leases 12.78 13.56 Weighted Average Discount Rate Operating leases 4.80 % 5.36 % Finance leases 14.48 % 15.09 % Nine Months Ended November 30 (In thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 51,527 $ 42,711 Operating cash flows from finance leases $ 8,086 $ 5,972 Financing cash flows from finance leases $ 8,822 $ 4,871 Lease assets obtained in exchange for lease obligations: Operating leases $ 45,491 $ 13,650 Finance leases $ 24,772 $ 30,596 |
Schedule Of Future Minimum Lease Obligations [Table Text Block] | As of November 30, 2021 (In thousands) Operating Leases (1) Finance Leases (1) Fiscal 2022, remaining $ 17,382 $ 6,142 Fiscal 2023 69,570 25,633 Fiscal 2024 69,053 30,569 Fiscal 2025 68,544 27,316 Fiscal 2026 63,015 27,925 Thereafter 626,442 212,443 Total lease payments 914,006 330,028 Less: interest (341,034) (180,117) Present value of lease liabilities $ 572,972 $ 149,911 (1) Lease payments exclude $13.4 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended | 9 Months Ended |
Nov. 30, 2021 | Nov. 30, 2021 | |
Segment Reporting [Abstract] | ||
Schedule of Segment Reporting Information, by Segment | Three Months Ended November 30, 2021 (In thousands) CarMax Sales Operations Other Eliminations Total Sales and operating revenues $ 8,494,437 $ 33,322 $ — $ 8,527,759 Intersegment sales and operating revenues — 7,973 (7,973) — Total sales and operating revenues $ 8,494,437 $ 41,295 $ (7,973) $ 8,527,759 Depreciation and amortization (1) $ 226 $ 2,489 $ — $ 2,715 Gross profit $ 809,998 $ 28,275 $ (1,713) $ 836,560 Reconciliation to Consolidated Earnings Before Taxes: CAF Income 165,968 Selling, general and administrative expenses (575,930) Depreciation and amortization (2) (54,428) Interest expense (24,303) Other income (expense) 8,094 Earnings before income taxes $ 355,961 | Nine Months Ended November 30, 2021 (In thousands) CarMax Sales Operations Other Eliminations Total Sales and operating revenues $ 24,145,847 $ 67,870 $ — $ 24,213,717 Intersegment sales and operating revenues — 14,981 (14,981) — Total sales and operating revenues $ 24,145,847 $ 82,851 $ (14,981) $ 24,213,717 Depreciation and amortization (1) $ 526 $ 4,698 $ — $ 5,224 Gross profit $ 2,522,595 $ 57,348 $ (3,390) $ 2,576,553 Reconciliation to Consolidated Earnings Before Taxes: CAF Income 607,732 Selling, general and administrative expenses (1,704,285) Depreciation and amortization (2) (157,107) Interest expense (67,247) Other income (expense) 35,453 Earnings before income taxes $ 1,291,099 (1) Represents only the portion of depreciation and amortization recorded within Cost of sales, and thus included in the calculation of Gross profit. (2) Exclusive of depreciation and amortization recorded within Cost of sales. |
Background (Narrative) (Details
Background (Narrative) (Details) | 9 Months Ended |
Nov. 30, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reportable segments | 2 |
Business Combinations and Ass_3
Business Combinations and Asset Acquisitions (Narrative) (Details) $ in Millions | Jun. 01, 2021USD ($)shares |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition, Transaction Costs | $ 8 |
Stock Issued During Period, Shares, Acquisitions | shares | 776,097 |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 8.7 |
Business Combinations and Ass_4
Business Combinations and Asset Acquisitions (Schedule of Purchase Consideration) (Details) - Edmunds $ in Thousands | Jun. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 401,818 |
Business Combination, Consideration Transferred | 251,047 |
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 90,571 |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 60,200 |
Business Combinations and Ass_5
Business Combinations and Asset Acquisitions (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jun. 01, 2021 | Nov. 30, 2021 | Feb. 28, 2021 |
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 9,484 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 33,719 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 2,397 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 20,741 | ||
Goodwill | $ 141,258 | $ 653 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 218,000 | ||
Operating lease assets | 543,645 | 431,652 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 191 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 523,040 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 5,063 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 11,277 | ||
Current portion of operating lease liabilities | $ 43,151 | $ 30,953 | |
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 3,823 | ||
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation | 88,264 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 121,222 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 401,818 | ||
Goodwill, Purchase Accounting Adjustments | 8,400 | ||
Edmunds | |||
Business Acquisition [Line Items] | |||
Goodwill | 141,258 | ||
Operating lease assets | 97,250 | ||
Current portion of operating lease liabilities | $ 12,795 |
Business Combinations and Ass_6
Business Combinations and Asset Acquisitions (Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination(Details) $ in Thousands | Jun. 01, 2021USD ($) |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 218,000 |
Internally developed software | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Finite-lived Intangible Assets Acquired | $ 52,900 |
Customer Relationships | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Finite-lived Intangible Assets Acquired | $ 133,200 |
Trade Names | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Indefinite-Lived Trade Names | $ 31,900 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,527.8 | $ 5,184.9 | $ 24,213.7 | $ 13,785.9 |
Used vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,435.6 | 4,209.7 | 18,697.3 | 11,385.2 |
Wholesale vehicle sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,922.3 | 828.4 | 4,998.2 | 1,990.3 |
Extended protection plan revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 106.6 | 101.7 | 353.8 | 294.5 |
Third-party finance fees, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1.6 | (10.6) | (0.3) | (36.7) |
Advertising & subscription revenues [Domain] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 33.3 | 0 | 67.9 | 0 |
Service revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 19.7 | 24.6 | 62.9 | 70.6 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 8.7 | 31.1 | 33.9 | 82 |
Total other sales and revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 169.9 | $ 146.8 | $ 518.2 | $ 410.4 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Feb. 28, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, Long-term Contracts or Programs | $ 0 | $ 0 |
CarMax Auto Finance (Components
CarMax Auto Finance (Components Of CarMax Auto Finance Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Auto Finance Income [Line Items] | ||||
Interest and fee income | $ 330,000 | $ 288,500 | $ 964,400 | $ 851,100 |
Interest expense | (53,600) | (77,100) | (180,000) | (243,000) |
Total interest margin | 276,400 | 211,400 | 784,400 | 608,100 |
Provision for loan losses | (76,200) | (8,200) | (87,300) | (156,100) |
Total interest margin after provision for loan losses | 200,200 | 203,200 | 697,100 | 452,000 |
Total other expense | 0 | 0 | 0 | (2,200) |
Payroll and fringe benefit expense | (12,700) | (11,600) | (37,700) | (34,200) |
Other Depreciation and Amortization | (2,400) | (200) | (2,800) | (600) |
Other direct expenses | (19,200) | (15,000) | (48,900) | (40,400) |
Total direct expenses | (34,300) | (26,800) | (89,400) | (75,200) |
CarMax Auto Finance income | 165,968 | 176,445 | 607,732 | 374,590 |
Total average managed receivables | $ 15,288,800 | $ 13,517,500 | $ 14,706,900 | $ 13,381,600 |
Interest and fee income, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | 8.60% | 8.50% | 8.70% | 8.50% |
Interest expense, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | (1.40%) | (2.30%) | (1.60%) | (2.40%) |
Total interest margin, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | 7.20% | 6.30% | 7.10% | 6.10% |
Provision for loan losses, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | (2.00%) | (0.20%) | (0.80%) | (1.60%) |
Total interest margin after provision for loan losses, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | 5.20% | 6.00% | 6.30% | 4.50% |
Total other expense, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | 0.00% | 0.00% | 0.00% | 0.00% |
Payroll and fringe benefit expense, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | (0.30%) | (0.30%) | (0.30%) | (0.30%) |
Other Depreciation and Amortization | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | (0.10%) | 0.00% | 0.00% | 0.00% |
Other direct expenses, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | (0.50%) | (0.40%) | (0.40%) | (0.40%) |
Total direct expenses, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | (0.90%) | (0.80%) | (0.80%) | (0.70%) |
CarMax Auto Finance income, percent | ||||
Auto Finance Income [Line Items] | ||||
Item as percent of total average managed receivables | 4.30% | 5.20% | 5.50% | 3.70% |
Auto Loan Receivables Auto Loan
Auto Loan Receivables Auto Loan Receivables (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2021 | Feb. 28, 2021 | |
Accounts, Notes, Loans and Financing Receivables [Line Items] | ||
Non-Recourse Debt | $ 15,416,457 | $ 13,764,808 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 15,400 |
Auto Loan Receivables (Auto Loa
Auto Loan Receivables (Auto Loan Receivables, Net) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Aug. 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | Mar. 01, 2020 | Feb. 29, 2020 |
Total ending managed receivables | $ 15,524,000 | $ 13,847,200 | |||||
Accrued interest and fees | 73,700 | 57,400 | |||||
Other | (4,000) | (3,700) | |||||
Less: allowance for loan losses | (426,507) | $ (398,100) | (411,150) | $ (431,600) | $ (432,500) | $ (359,800) | $ (157,800) |
Auto loans receivable, net | 15,167,170 | 13,489,819 | |||||
Asset-backed term funding | |||||||
Total ending managed receivables | 11,725,400 | 11,008,300 | |||||
Warehouse facilities | |||||||
Total ending managed receivables | 3,155,900 | 2,314,100 | |||||
Overcollateralization | |||||||
Total ending managed receivables | 479,200 | 345,200 | |||||
Other managed receivables | |||||||
Total ending managed receivables | $ 163,500 | $ 179,600 |
Auto Loan Receivables (Ending M
Auto Loan Receivables (Ending Managed Receivables By Major Credit Grade) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Feb. 28, 2021 |
Financing Receivable, By Major Credit Grade [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 6,401.1 | $ 5,561.7 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 4,028.5 | 4,112.6 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 2,806.7 | 2,337.2 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,460.3 | 1,226.9 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 639.1 | 494.9 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 188.3 | 113.9 |
Total ending managed receivables | $ 15,524 | $ 13,847.2 |
Total ending managed receivables as percentage by major credit grade | 100.00% | 100.00% |
Credit Grade A | ||
Financing Receivable, By Major Credit Grade [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 3,172.3 | $ 2,782 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 1,999.2 | 2,146.5 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,454.6 | 1,146.7 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 693.7 | 568.9 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 275.2 | 199.6 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 57.6 | 30.4 |
Total ending managed receivables | $ 7,652.6 | $ 6,874.1 |
Total ending managed receivables as percentage by major credit grade | 49.30% | 49.60% |
Credit Grade B | ||
Financing Receivable, By Major Credit Grade [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 2,306.4 | $ 1,993.6 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 1,446.1 | 1,424.5 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 977.3 | 870.1 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 556.2 | 476 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 260 | 195.5 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 80.4 | 49.2 |
Total ending managed receivables | $ 5,626.4 | $ 5,008.9 |
Total ending managed receivables as percentage by major credit grade | 36.20% | 36.20% |
Credit Grade C And Other | ||
Financing Receivable, By Major Credit Grade [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | $ 922.4 | $ 786.1 |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 583.2 | 541.6 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 374.8 | 320.4 |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 210.4 | 182 |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 103.9 | 99.8 |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 50.3 | 34.3 |
Total ending managed receivables | $ 2,245 | $ 1,964.2 |
Total ending managed receivables as percentage by major credit grade | 14.50% | 14.20% |
Auto Loan Receivables (Allowanc
Auto Loan Receivables (Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2021 | Feb. 28, 2021 | Aug. 31, 2020 | Mar. 01, 2020 | Feb. 29, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance as of beginning of period | $ 398,100 | $ 432,500 | $ 411,150 | $ 157,800 | |||||
Financing Receivable, Allowance for Credit Loss | 426,507 | 431,600 | 426,507 | 431,600 | $ 398,100 | $ 411,150 | $ 432,500 | $ 359,800 | $ 157,800 |
Charge-offs | (68,200) | (49,900) | (153,700) | (174,500) | |||||
Recoveries (2) | 20,400 | 40,800 | 81,800 | 90,200 | |||||
Provision for loan losses | 76,200 | 8,200 | 87,300 | 156,100 | |||||
Balance as of end of period (3) | 426,507 | $ 431,600 | 426,507 | $ 431,600 | |||||
Tier III | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance as of beginning of period | 31,800 | ||||||||
Financing Receivable, Allowance for Credit Loss | 40,800 | 40,800 | $ 31,800 | ||||||
Balance as of end of period (3) | $ 40,800 | $ 40,800 | |||||||
Allowance For Loan Losses, percent | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Item as percent of total ending managed receivables | 2.75% | 3.17% | 2.75% | 3.17% | 2.66% | 2.97% | 3.23% | 2.64% | 1.16% |
Accounting Standards Update 2016-13 [Member] | Financing Receivable [Member] | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance as of beginning of period | $ 0 | $ 0 | $ 0 | ||||||
Financing Receivable, Allowance for Credit Loss | $ 0 | $ 0 | $ 0 | $ 202,000 |
Auto Loan Receivables (Past Due
Auto Loan Receivables (Past Due Receivables) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Feb. 28, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Current | $ 14,929.6 | $ 13,454.7 |
Total ending managed receivables | $ 15,524 | $ 13,847.2 |
Past due receivables as a percentage of total ending managed receivables | 3.83% | 2.83% |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | $ 594.4 | $ 392.5 |
Total ending managed receivables, percent | ||
Financing Receivable, Past Due [Line Items] | ||
Item as percent of total ending managed receivables | 100.00% | 100.00% |
Financial Asset, Current | ||
Financing Receivable, Past Due [Line Items] | ||
Past due receivables as a percentage of total ending managed receivables | 96.17% | 97.17% |
Thirty One To Sixty Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past due receivables as a percentage of total ending managed receivables | 2.34% | 1.78% |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | $ 363.1 | $ 246.2 |
Sixty One To Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past due receivables as a percentage of total ending managed receivables | 1.20% | 0.86% |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | $ 186 | $ 119.9 |
Greater Than Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Past due receivables as a percentage of total ending managed receivables | 0.29% | 0.19% |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | $ 45.3 | $ 26.4 |
Credit Grade A | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Current | 7,617.6 | 6,847.2 |
Total ending managed receivables | 7,652.6 | 6,874.1 |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 35 | 26.9 |
Credit Grade A | Thirty One To Sixty Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 23 | 17.3 |
Credit Grade A | Sixty One To Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 9.2 | 7 |
Credit Grade A | Greater Than Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 2.8 | 2.6 |
Credit Grade B | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Current | 5,373.2 | 4,840.3 |
Total ending managed receivables | 5,626.4 | 5,008.9 |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 253.2 | 168.6 |
Credit Grade B | Thirty One To Sixty Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 160.4 | 108.9 |
Credit Grade B | Sixty One To Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 74.5 | 48.4 |
Credit Grade B | Greater Than Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 18.3 | 11.3 |
Credit Grade C And Other | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Current | 1,938.8 | 1,767.2 |
Total ending managed receivables | 2,245 | 1,964.2 |
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 306.2 | 197 |
Credit Grade C And Other | Thirty One To Sixty Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 179.7 | 120 |
Credit Grade C And Other | Sixty One To Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 102.3 | 64.5 |
Credit Grade C And Other | Greater Than Ninety Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | $ 24.2 | $ 12.5 |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities (Narrative) (Details) - Interest Rate Swaps - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2021 | Feb. 28, 2021 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Additional reclassification from AOCL to CAF income within the next 12 months | $ 9 | ||
Derivative, Notional Amount | $ 4,030 | 4,030 | $ 2,430 |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 3.4 | 3.2 | |
Derivative, Notional Amount | $ 644.2 | $ 644.2 | $ 255.2 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Items Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market securities | $ 705,326 | $ 685,585 |
Mutual fund investments | 25,650 | 24,049 |
Total assets at fair value | $ 745,213 | $ 714,196 |
Percent of total assets at fair value | 100.00% | 100.00% |
Percent of total assets | 2.90% | 3.30% |
Total liabilities at fair value | $ (4,561) | $ (6,024) |
Percent of total liabilities | 0.00% | 0.00% |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market securities | $ 705,326 | $ 685,585 |
Mutual fund investments | 25,650 | 24,049 |
Total assets at fair value | $ 730,976 | $ 709,634 |
Percent of total assets at fair value | 98.10% | 99.40% |
Percent of total assets | 2.90% | 3.30% |
Total liabilities at fair value | $ 0 | $ 0 |
Percent of total liabilities | 0.00% | 0.00% |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market securities | $ 0 | $ 0 |
Mutual fund investments | 0 | 0 |
Total assets at fair value | $ 14,237 | $ 4,562 |
Percent of total assets at fair value | 1.90% | 0.60% |
Percent of total assets | 0.10% | 0.00% |
Total liabilities at fair value | $ (4,561) | $ (6,024) |
Percent of total liabilities | 0.00% | 0.00% |
Designated As Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 10,566 | $ 4,061 |
Liabilities: Derivative instruments | (4,561) | (6,024) |
Designated As Hedging Instrument | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Liabilities: Derivative instruments | 0 | 0 |
Designated As Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 10,566 | 4,061 |
Liabilities: Derivative instruments | (4,561) | (6,024) |
Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3,671 | 501 |
Not Designated as Hedging Instrument [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | $ 3,671 | $ 501 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
Fair Value Disclosures [Abstract] | ||
Senior Notes | $ 500,000 | $ 500,000 |
Debt Instrument, Fair Value Disclosure | $ 542,176 | $ 556,993 |
Cancellation Reserves (Narrativ
Cancellation Reserves (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Feb. 28, 2021 |
Cancellation Reserves [Abstract] | ||
Cancellation reserves, current portion | $ 79.8 | $ 58.7 |
Cancellation Reserves (Schedule
Cancellation Reserves (Schedule Of Cancellation Reserves Accrual) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance as of beginning of period | $ 144.3 | $ 122.6 | $ 124.5 | $ 117.9 |
Cancellations | (25.2) | (17.4) | (68.3) | (48.3) |
Provision for future cancellations | 28.7 | 17.9 | 91.6 | 53.5 |
Balance as of end of period | $ 147.8 | $ 123.1 | $ 147.8 | $ 123.1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Feb. 28, 2021 |
Federal Income Tax Note | ||
Unrecognized tax benefits, gross | $ 29.5 | $ 29 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 17,458,864 | $ 14,619,919 |
Financing Obligations | 527,260 | 533,578 |
Non-Recourse Debt | 15,416,457 | 13,764,808 |
Total debt | 18,031,135 | 15,098,386 |
Less: current portion | (546,035) | (452,579) |
Unamortized Debt Issuance Expense | (26,236) | (25,888) |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 588,100 | 0 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 300,000 | 300,000 |
3.86% senior notes dues 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 100,000 | 100,000 |
4.17% senior notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 200,000 | 200,000 |
4.27% senior notes due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 200,000 | 200,000 |
October 2021 Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 699,318 | $ 0 |
Debt (Schedule of Funding Vehic
Debt (Schedule of Funding Vehicles) (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 15,416,457 | $ 13,764,808 |
Warehouse Facility Three | ||
Debt Instrument [Line Items] | ||
Warehouse Facilities Maximum Borrowing Capacity | 180,000 | |
Warehouse Facility Two | ||
Debt Instrument [Line Items] | ||
Warehouse Facilities Maximum Borrowing Capacity | 2,350,000 | |
Warehouse Facility One | ||
Debt Instrument [Line Items] | ||
Warehouse Facilities Maximum Borrowing Capacity | 2,300,000 | |
Warehouse Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Warehouse Facilities Maximum Borrowing Capacity | 4,830,000 | |
Debt Instrument, Unused Borrowing Capacity, Amount | 1,670,000 | |
Non-Recourse Debt | 3,160,000 | |
Term Securitizations Debt [Member] | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 12,260,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Nov. 30, 2021 | Nov. 30, 2020 | Dec. 29, 2021 | Oct. 15, 2021 | Feb. 28, 2021 | |
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 17,458,864 | $ 14,619,919 | |||
Non-recourse notes payable | 15,416,457 | $ 13,764,808 | |||
Capitalized interest | 5,000 | $ 2,100 | |||
Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 1,450,000 | $ 2,000,000 | |||
Unused capacity | 861,900 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | 300,000 | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 500,000 | ||||
Financing obligation | Minimum | |||||
Debt Instrument [Line Items] | |||||
Initial lease terms, in years | 15 years | ||||
Financing obligation | Maximum | |||||
Debt Instrument [Line Items] | |||||
Initial lease terms, in years | 20 years | ||||
October 2021 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Outstanding Balance | $ 700,000 | $ 700,000 |
Stock and Stock-Based Incenti_3
Stock and Stock-Based Incentive Plans Stock and Stock-Based Incentive Plans (Narrative) (Details) - Share Repurchase Program - USD ($) $ in Millions | Nov. 30, 2021 | Nov. 30, 2020 |
Stock and Stock-Based Incentive Plans | ||
Stock Repurchase Program, Authorized Amount | $ 2,000 | |
Available for repurchase, as of end of period | $ 876.2 | $ 1,402.4 |
Stock and Stock-Based Incenti_4
Stock and Stock-Based Incentive Plans Stock and Stock-Based Incentive Plans (Schedule of Common Stock Repurchases) (Details) - Share Repurchase Program - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares repurchased | 851,100 | 1,175,800 | 3,602,800 | 1,691,300 |
Average Cost Per Share | $ 135.52 | $ 92.90 | $ 127.65 | $ 88.65 |
Available for repurchase, as of end of period | $ 876.2 | $ 1,402.4 | $ 876.2 | $ 1,402.4 |
Stock and Stock-Based Incenti_5
Stock and Stock-Based Incentive Plans Stock And Stock-Based Incentive Plans (Composition of Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense, before income taxes | $ 36,784 | $ 11,677 | $ 110,921 | $ 75,632 |
Cost of sales | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense, before income taxes | 1,896 | 11 | 5,719 | 3,202 |
Carmax Auto Finance Income | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense, before income taxes | 1,560 | 938 | 4,749 | 3,750 |
Selling, general and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense, before income taxes | $ 33,328 | $ 10,728 | $ 100,453 | $ 68,680 |
Stock and Stock-Based Incenti_6
Stock and Stock-Based Incentive Plans Stock and Stock-Based Incentive Plans (Composition of Share-Based Compensation Expense - By Grant Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | $ 36,784 | $ 11,677 | $ 110,921 | $ 75,632 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 7,846 | 6,630 | 27,375 | 25,237 |
Cash-settled restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 23,836 | 1,210 | 62,398 | 33,784 |
Stock-settled market stock units (MSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 3,171 | 3,161 | 11,260 | 12,516 |
Stock-settled performance stock units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 964 | 112 | 5,334 | 378 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 365 | 39 | 670 | 106 |
Stock-settled deferred stock units (DSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 0 | 0 | 1,925 | 1,925 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | 602 | 525 | 1,959 | 1,686 |
Other share-based incentives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense, before income taxes | $ 1,931 | $ 676 | $ 9,888 | $ 4,095 |
Stock and Stock-Based Incenti_7
Stock and Stock-Based Incentive Plans (Share-Based Arrangement Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Nov. 30, 2021 | Feb. 28, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,861,000 | 6,266,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 922,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (1,249,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | (78,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 42.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 23.75 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 54.4 | |
Stock-settled market stock units (MSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 394,000 | 520,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 82,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (197,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (11,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 178.16 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 112.21 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 17.5 | |
Other share-based incentives | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 169,000 | 84,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 89,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (2,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (2,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 132.96 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 108.30 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 4.8 | |
Cash-settled restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,190,000 | 1,606,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 377,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (715,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (78,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 136.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 93.44 |
Net Earnings Per Share (Basic A
Net Earnings Per Share (Basic And Dilutive Net Earnings Per Share Reconciliations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items] | ||||||||
Net earnings | $ 269,438 | $ 285,267 | $ 436,756 | $ 235,300 | $ 296,696 | $ 4,978 | $ 991,461 | $ 536,974 |
Weighted average common shares outstanding, shares | 162,006 | 163,732 | 162,710 | 163,278 | ||||
Weighted average common shares and dilutive potential common shares, shares | 164,873 | 165,773 | 165,606 | 164,976 | ||||
Basic net earnings per share (in dollars per share) | $ 1.66 | $ 1.44 | $ 6.09 | $ 3.29 | ||||
Diluted net earnings per share (in dollars per share) | $ 1.63 | $ 1.42 | $ 5.99 | $ 3.25 | ||||
Stock options | ||||||||
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items] | ||||||||
Dilutive potential common shares, shares | 2,373 | 1,636 | 2,391 | 1,341 | ||||
Stock-settled stock units and awards | ||||||||
Schedule of Basic and Dilutive Net Earnings Per Share Reconciliation [Line Items] | ||||||||
Dilutive potential common shares, shares | 494 | 405 | 505 | 357 |
Net Earnings Per Share (Narrati
Net Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities not included in calculation of diluted net earnings per share | 776,853 | 115,509 | 701,970 | 2,158,503 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Schedule of Accumulated Other Comprehensive Loss [Line Items] | ||||||||
Beginning balance | $ (118,691) | $ (118,691) | ||||||
Other comprehensive income before reclassifications | 6,386 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 12,004 | |||||||
Other comprehensive income (loss), net of taxes | $ 12,042 | $ 3,411 | 2,937 | $ 7,502 | $ 4,979 | $ (15,334) | 18,390 | $ (2,853) |
Ending balance | (100,301) | (100,301) | ||||||
Net Unrecognized Actuarial Losses | ||||||||
Schedule of Accumulated Other Comprehensive Loss [Line Items] | ||||||||
Beginning balance | (92,662) | (92,662) | ||||||
Other comprehensive income before reclassifications | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,976 | |||||||
Other comprehensive income (loss), net of taxes | 1,976 | |||||||
Ending balance | (90,686) | (90,686) | ||||||
Net Unrecognized Hedge Gains (Losses) | ||||||||
Schedule of Accumulated Other Comprehensive Loss [Line Items] | ||||||||
Beginning balance | $ (26,029) | (26,029) | ||||||
Other comprehensive income before reclassifications | 6,386 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 10,028 | |||||||
Other comprehensive income (loss), net of taxes | 16,414 | |||||||
Ending balance | $ (9,615) | $ (9,615) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Changes In and Reclassifications Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Total amortization reclassifications recognized in net pension expense | $ 869 | $ 959 | $ 2,605 | $ 2,878 |
Tax expense | (210) | (232) | (629) | (695) |
Amortization reclassifications recognized in net pension expense, net of tax | 659 | 727 | 1,976 | 2,183 |
Net change in retirement benefit plan unrecognized actuarial losses, net of tax | 659 | 727 | 1,976 | 2,183 |
Changes in fair value | 11,339 | 2,877 | 8,668 | (21,906) |
Tax (expense) benefit | (2,985) | (761) | (2,282) | 5,793 |
Changes in fair value, net of tax | 8,354 | 2,116 | 6,386 | (16,113) |
Reclassifications to CarMax Auto Finance income | 4,111 | 6,334 | 13,610 | 15,060 |
Tax expense | (1,082) | (1,675) | (3,582) | (3,983) |
Reclassification of hedge losses, net of tax | 3,029 | 4,659 | 10,028 | 11,077 |
Net change in cash flow hedge unrecognized losses, net of tax | 11,383 | 6,775 | 16,414 | (5,036) |
Total other comprehensive income (loss), net of tax | 12,042 | 7,502 | 18,390 | (2,853) |
Cost of sales | ||||
Total amortization reclassifications recognized in net pension expense | 367 | 402 | 1,083 | 1,212 |
CarMax Auto Finance income | ||||
Total amortization reclassifications recognized in net pension expense | 21 | 27 | 64 | 83 |
Selling, general and administrative expenses | ||||
Total amortization reclassifications recognized in net pension expense | $ 481 | $ 530 | $ 1,458 | $ 1,583 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2021 | Feb. 28, 2021 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Deferred tax | $ 32.2 | $ 38.7 |
Leases Narrative (Details)
Leases Narrative (Details) | 9 Months Ended |
Nov. 30, 2021 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Real Estate Lease Term | 5 years |
Equipment Lease Term | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 20 years |
Real Estate Lease Term | 20 years |
Equipment Lease Term | 8 years |
Leases Components of Lease Cost
Leases Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | ||||
Operating Lease, Cost | $ 20,581 | $ 14,340 | $ 53,631 | $ 43,075 |
Finance Lease, Right-of-Use Asset, Amortization | 3,383 | 2,149 | 9,784 | 5,523 |
Finance Lease, Interest Expense | 4,257 | 2,680 | 12,531 | 7,328 |
Finance Lease, Cost | 7,640 | 4,829 | 22,315 | 12,851 |
Lease, Cost | $ 28,221 | $ 19,169 | $ 75,946 | $ 55,926 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Feb. 28, 2021 |
Leases [Abstract] | ||
Operating lease assets | $ 543,645 | $ 431,652 |
Finance Lease, Right-of-Use Asset | 123,347 | 109,665 |
Total lease assets | 666,992 | 541,317 |
Current portion of operating lease liabilities | 43,151 | 30,953 |
Finance Lease, Liability, Current | 9,696 | 9,422 |
Operating lease liabilities, excluding current portion | 529,821 | 423,618 |
Finance Lease, Liability, Noncurrent | 140,215 | 120,094 |
Total lease liabilities | 722,883 | 584,087 |
Finance Lease Accumulated Depreciation | $ 27,300 | $ 17,500 |
Lease Term and Discount Rate (D
Lease Term and Discount Rate (Details) | Nov. 30, 2021Rate | Feb. 28, 2021Rate |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 17 years 5 months 12 days | 19 years 4 months 13 days |
Finance Lease, Weighted Average Remaining Lease Term | 12 years 9 months 10 days | 13 years 6 months 21 days |
Operating Lease, Weighted Average Discount Rate, Percent | 4.80% | 5.36% |
Finance Lease, Weighted Average Discount Rate, Percent | 14.48% | 15.09% |
Lease Supplemental Cash Flow In
Lease Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 30, 2021 | Nov. 30, 2020 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 51,527 | $ 42,711 |
Finance Lease, Interest Payment on Liability | 8,086 | 5,972 |
Finance Lease, Principal Payments | 8,822 | 4,871 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 45,491 | 13,650 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 24,772 | $ 30,596 |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) $ in Thousands | Nov. 30, 2021USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 17,382 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 69,570 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 69,053 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 68,544 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 63,015 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 626,442 |
Lessee, Operating Lease, Liability, Payments, Due | 914,006 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (341,034) |
Operating Lease, Liability | 572,972 |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 6,142 |
Finance Lease, Liability, Payments, Due Year Two | 25,633 |
Finance Lease, Liability, Payments, Due Year Three | 30,569 |
Finance Lease, Liability, Payments, Due Year Four | 27,316 |
Finance Lease, Liability, Payments, Due Year Five | 27,925 |
Finance Lease, Liability, Payments, Due after Year Five | 212,443 |
Finance Lease, Liability, Payment, Due | 330,028 |
Finance Lease, Liability, Undiscounted Excess Amount | (180,117) |
Finance Lease, Liability | 149,911 |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 17,382 |
Minimum lease payments, leases not commenced | $ 13,400 |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Former Gain Contingency, Recognized in Current Period | $ 40.3 | |
Liability associated with guarantee | 19.3 | $ 15.2 |
Proceeds from Legal Settlements | $ 22.6 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2021 | Nov. 30, 2020 | Nov. 30, 2021 | Nov. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | $ 8,527,759 | $ 5,184,944 | $ 24,213,717 | $ 13,785,892 |
Depreciation and amortization | 200,819 | 180,495 | ||
Gross Profit | 836,560 | 631,430 | 2,576,553 | 1,737,756 |
CARMAX AUTO FINANCE INCOME | 165,968 | 176,445 | 607,732 | 374,590 |
Selling, General and Administrative Expense | (575,930) | (430,781) | (1,704,285) | (1,197,595) |
Depreciation, Depletion and Amortization, Nonproduction | (54,428) | (48,016) | (157,107) | (145,126) |
Interest expense | (24,303) | (19,462) | (67,247) | (65,889) |
Other (income) expense | 8,094 | 887 | 35,453 | (728) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 355,961 | $ 310,503 | 1,291,099 | $ 703,008 |
TOTAL COST OF SALES | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | 2,715 | 5,224 | ||
Intersegment Eliminations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | (7,973) | (14,981) | ||
Gross Profit | (1,713) | (3,390) | ||
CarMax Sales Operations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | 8,494,437 | 24,145,847 | ||
Gross Profit | 809,998 | 2,522,595 | ||
CarMax Sales Operations | TOTAL COST OF SALES | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | 226 | 526 | ||
CarMax Sales Operations | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | 8,494,437 | 24,145,847 | ||
Other Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | 33,322 | 67,870 | ||
Gross Profit | 28,275 | 57,348 | ||
Other Segments | TOTAL COST OF SALES | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | 2,489 | 4,698 | ||
Other Segments | Intersegment Eliminations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | 7,973 | 14,981 | ||
Other Segments | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
NET SALES AND OPERATING REVENUES | $ 41,295 | $ 82,851 |